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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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Original poster

In Charging rent

199 replies

Hooseproblems34 · 17/02/2020 09:05

Hi I'm looking for opinions on what others would do in my shoes. I live in a 2 bed council house and in 3 years time I could own it outright I would need about 12,000 to do this. But I would not be able to save that amount .

I have 3 children and one of them has said they would have the savings to do this as have been saving for a deposit. This would be used as a family home for them as they have DC .

Would I be unreasonable in then charging them rent to live here? The property would still be in my name. But obviously I wouldn't be in the position of owning it if it wasn't for them.

I would like it to go to family. But also have two other children to think about. As one said they would of liked to buy it the other isn't bothered. The two other DC don't have children of their own.

So what would you do? I plan on moving in with my partner so don't plan on living in my house in the next 3 years .

OP posts:

Alsoco · 17/02/2020 18:46

As a property solicitor this makes me nervous

Puzzledandpissedoff · 17/02/2020 19:08

If you don't think of yourself, no one else will

Funny how this principle only applies when it benefits the less well off
Funny how I've never read such a comment made in threads that mentions tax avoidance

Very well said, Dontdisturbmenow

Winter2020 · 17/02/2020 19:16

Hi OP,
Aside from the morals of your plan (which I think others have well covered) you need to think very carefully about the practicalities before they lead to a fall out in your family.

What will you do for your own housing if your relationship with your boyfriend doesn't work out (or he dies and doesn't will his house to you/Is repossessed/evicted etc) whatever is relevant. If you have a housing need what will you do? I don't think you will be able to get social housing as you have a house (plus it is very hard to get anyway). Can you afford to rent privately? Or will you move in with your daughter or other family? or will you tell your daughter that you need your house back (despite her having paid for it?)

What will happen if you die shortly after having taken ownership of the house. The assets in your estate would be used to settle any debt and then unless you have a valid will or a husband be split between your children. Will the 12k be protected and returned? Will the daughter who has paid for the house be resentful if they have to move out/sell up and split the money? Will you make a will saying the daughter that has bought it can keep it. Will her siblings be resentful of her windfall?

Do you intend to gift your daughter the house after the period where discount would need to be repaid? I'm assuming not from the fact you want to charge rent. Is your daughter clear about when if ever she will own the house and at what price? Are you paying her money back.

Do you honestly think it is better for your daughter to use her deposit money to buy a house that she has no ownership of or security in/ that she can be asked to pay more for or move out of at any time/ that she may have to leave and sell if you die? She may come to regret her decision not to buy her own choice of home on a mortgage in the usual way if this goes horribly wrong. At the moment you have not stated how your daughter benefits from this arrangement, except in some vague something to inherit way, only how you will (charging rent).

Saddler · 17/02/2020 19:22

Struggling to follow this but is this the situation?

Lived in council house for 26 years so entitled to discount under right to buy?

You can't afford it but one of the kids can so they buy it in your name to benefit from the discount?

They then live there as they've paid for it and pay you some sort of rent to account for the discount you've got them?

MixerTaps · 17/02/2020 19:55

Funny how this principle only applies when it benefits the less well off
Funny how I've never read such a comment made in threads that mentions tax avoidance

Those avoiding tax are generally we-off and avoiding tax is witholding from those less well-off in society, so how is it the same? Poor people looking out for themselves will always be judged differently to middle-class or wealthy people, or those earning way above average, avoiding tax

crispysausagerolls · 17/02/2020 20:00

Those avoiding tax are generally we-off and avoiding tax is witholding from those less well-off in society, so how is it the same?

Because OP has somewhere else to live and is withholding her house from someone who needs it more. She is legally entitled to buy her house via RTB but that’s not really what she is trying to do. She is trying to put the house in her name with her son buying it. It’s just fucked up.

katewhinesalot · 17/02/2020 23:28

Is the £12k you need just for the deposit on the council house? I'm assuming you are able to get a small mortgage for the rest, otherwise it's not actually worth that much is it?

leatherupper · 17/02/2020 23:32

This is why there's a housing crisis in this country.

Dontdisturbmenow · 18/02/2020 08:19

Those avoiding tax are generally we-off and avoiding tax is witholding from those less well-off in society, so how is it the same?
Who says that those avoiding tax were not dead poor years before? Those who made large profit from buying and selling their council house have gone from poor to well off, same people before and after.

The reality is that sad mentality that principles apply differently depending on your wealth regardless of choices made in life that takes you where you are.

Principles are principles, they shouldn't change because you are suddenly better off or worse off.

woodhill · 18/02/2020 08:25

Those avoiding tax are generally we-off and avoiding tax is witholding from those less well-off in society, so how is it the same?

Surely this is a separate issue and it deflects from the discussion.

WaitrosesCheapestVodka · 18/02/2020 08:50

Who says that those avoiding tax were not dead poor years before? Those who made large profit from buying and selling their council house have gone from poor to well off, same people before and after.

Who says not? Anyone with a basic grasp of the problem of tax avoidance.

WaitrosesCheapestVodka · 18/02/2020 08:55

I think it's outrageous for the OP to suggest charging rent. But I don't think her buying her home with her kids makes her terrible. She has lived there for over two decades, raised children there and paid likely 6 figures worth of rent. Is it so awful she might like the idea of keeping the property in her family?

We need more council and genuinely affordable homes. Ire is being directed at the wrong place.

PineappleDanish · 18/02/2020 08:57

Well I have lived here for over 26 years and would like it to go to family

But it is not yours.

MadamePewter · 18/02/2020 08:59

Why on earth should it go to family?

It’s a council house for people who need it. You don’t need it so give it back.

MadamePewter · 18/02/2020 09:01

we need more council houses and genuinely affordable homes

This. And the op’s attitude is partly to blame.

Robstersgirl · 18/02/2020 09:10

This is why there are families like me paying 78% of my full time salary out to a private landlord. I have a Severely Disabled child, I have bad breathing difficulties too and live in a damp, cold house. I can’t even get on the housing list. So no choice but to work to pay the rent. A council house if for those who need it. Not a gift to be passed down to someone undeserving, yes it is a gift at £12k. It’s not yours to ‘keep in the family’ it belongs to all the families who desperately need it.

GinUnicorn · 18/02/2020 09:13

I think OP you could be on tricky grounds here.

If something happened to you their could be an inheritance dispute between siblings. Also what would you do in case of majors works bills or increased service charge. I think if you want to purchase it you are best off getting a mortgage and having you child pay you rent. Anything else really has potential to go horribly wrong. Might be worth checking if you are allowed to sublet etc.

MixerTaps · 18/02/2020 09:39

I have bad breathing difficulties too and live in a damp, cold house.

Contact the council. Mine has a division that inspects private accommodation and fines the landlord if they do not carry out the work that needs doing. Get environmental health involved.

MixerTaps · 18/02/2020 09:41

The reality is that sad mentality that principles apply differently depending on your wealth regardless of choices made in life that takes you where you are.

Yes, sorry but I agree with that mentality. I would let poor people off the hook for doing illegal things where I would not to a rich person.

ThrowingGoodAfterBad · 18/02/2020 09:52

This is exactly the kind of nasty intro-family dispute you will get when everyone is desperately scrambling for resources to live. We might eventually admit that Britain is in socioeconomic collapse.

Ethically you can’t let someone buy something for you then charge them rent on it. Ethically you’d be disadvantage here your other child who would like to buy it themselves. You meanwhile still need somewhere of your own to live in.

£12000 is an absolutely paltry amount for somewhere to live and if I were you I would do everything to try and raise it. Cut everything else back, maybe ask for smaller contributions - equal contributions -from all your children. On the understanding that it buys them all an equal interest in a family asset after you have finished needing it. They would be able to sell it after and split the proceeds, which will vastly outweigh their stake. Much better returns than a stockmarmet. But it would have to be 3-way equal shares.

ThrowingGoodAfterBad · 18/02/2020 09:53

Sorry for the typos!

ThrowingGoodAfterBad · 18/02/2020 09:57

Contact the council. Mine has a division that inspects private accommodation and fines the landlord if they do not carry out the work that needs doing. Get environmental health involved.

In theory. In fact, as I expect the poster is well aware, the landlord will shortly afterwards find an excuse to kick the tenant out and get someone else in, someone more desperate, who won’t raise issues.

Encouraging a proliferation of buy-to-lets, enabling the richer to leverage their wealth directly against the poor, were such a good idea. .

Puzzledandpissedoff · 18/02/2020 10:14

I would let poor people off the hook for doing illegal things where I would not to a rich person

Isn't that a classic example of poverty of expectations - and doesn't it ignore whether someone's making dubious choices because they're poor, or that they're poor because of making dubious choices?

It's more nuanced than that of course, but frankly I'm not convinced the endless excuse-making helps anyone, least of all the disadvantaged

Robstersgirl · 18/02/2020 10:15

@MixerTaps
I’ve done this. Ironically I work in housing at the local council. She done the bare minimum to stop her being fined but the house is still leaking through the walls from outside. I wish I could afford to move but like I said before 78% of my salary goes on rent. It cost me just shy of 3k to move in here 7 years ago I can’t afford to save that up again. Vicious circle.

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