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Original poster

A question about right to buy your council house

49 replies

pussollini · 01/03/2013 19:23

We want to buy DP's brother's council flat. He has no money (and drug issues but that's another thread). We were thinking we could give him the money to buy it, then rent it out and give him an income from it.

The problem is, we will need to get it transferred into our name after the purchase. Is there anything to stop us doing this?

OP posts:
headinhands · 01/03/2013 19:25

Where would dp's brother live?

OddBoots · 01/03/2013 19:30

From looking at this you'd (or he'd) have to pay back a decreasing proportion of the discount if he sold it to you (which is effectively what would have to happen) within ten years.

Original poster
pussollini · 01/03/2013 19:30

He may go to university where we live and stay with us, or in a rented flat nearby, which we'll pay for.

The flat is at the top of a high rise - he needs to get out of the area, at least for a while, so he can break the old associations.

OP posts:
OddBoots · 01/03/2013 19:32

Sorry, my mistake, 5 years. It's for the first 10 years he'd have to give first refusal to a social landlord.

Original poster
pussollini · 01/03/2013 19:32

Oh right. Well, I suppose we just leave it in his name then. We will have to pay for it in cash, so it's not a great use of our capital.

OP posts:
chickensarmpit · 01/03/2013 19:32

I'm sure this isn't allowed, otherwise everybody would be doing it and we'd have no social housing.

bananananacoconuts · 01/03/2013 19:34

heard on the radio today that if you buy a flat in a high rise, you assune responsibility fkr the communal areas!! not sure how true this is as it came from an mp but do your homework

Original poster
pussollini · 01/03/2013 19:35

Chicken, that's what I thought, everyone would take advantage of the discounts. We actually just wanted to help him, and pass on the profit to him, as he is legally and morally entitled to it.

OP posts:
bananananacoconuts · 01/03/2013 19:35

stupid phone! sorry...errors a plenty!

Original poster
pussollini · 01/03/2013 19:40

I suppose we can give him the money to buy it and rent it out to give himself an income, and then ask him to repay the capital in five years.

OP posts:
lalalonglegs · 01/03/2013 19:56

This is wrong on so many levels the main one being that the RTB policy - for all its many faults - was designed to empower council tenants by giving them ownership of their own home, not simply giving them the opportunity to make a fast buck by renting it out to other people at market rates.

I'm also not convinced that someone with drug problems needs an additional income stream with which to fund his habit.

Anyway, not only is your plan greedy but it is extremely flawed someone who buys under RTB cannot sell for five years and most councils have included clauses in the sale contracts that stop them being rented out for several years as well.

If you want your BIL to break free from the area, look into social housing swaps or sort out somewhere else for him to stay which may mean him giving up his council house entitlement (but worth it if it helps him to get clean and turn his life around). I'm really shocked that you want to make a profit from social housing and remove from the pitifully small pool yet another home that a disadvantaged person could use.

Original poster
pussollini · 01/03/2013 20:08
Hmm

Our plan may be flawed, but I'm not sure why you call us greedy. We wouldn't make any money out of it ourselves, just use our capital to help him do it.

I don't think there's anything wrong with helping him to buy it so he can get away for a few years and build a life. He loves the area, but it's very raw at the moment, as he has just stopped using.

OP posts:
lalalonglegs · 01/03/2013 21:48

It's greedy because you are using a (very generous) government subsidy to help you or your BIL build a property portfolio. FFS, in your grand scheme, he's not even going to live there. Council housing is meant to house people with a genuine need, not subsidise his lifestyle. Do you get why it's greedy now? Hmm

SuedeEffectPochette · 01/03/2013 22:26

Isn't the problem that he may not "give" it back to you in 5 years time? Sounds like a problem in the making to me.

Original poster
pussollini · 01/03/2013 22:31

Lalalonglegs, we are not using it to build a property portfolio. Not sure why you're so confused, perhaps you'd better turn in for the night.

Suede, there is that to consider. But that would be a pretty poor show, I'm leaving that aspect to DH because it's his brother.

We're not buying the house because it's a really good deal, it's a tiny flat on the top floor of a tower block. It's value is very low so we could still buy it without any discount. But he can't leave it and go anywhere unless it's owned. He wants to come back and life there again.

OP posts:
lougle · 01/03/2013 22:31

You're not going to be able to do that.

There are really strict rules. However, if you are living there for 12 months with him, then you can jointly buy it.

dothraki · 01/03/2013 22:38

Er - is this even legal ? I very much doubt it.

lalalonglegs · 01/03/2013 22:46

No confusion here about your greed and attempt to defraud a local authority. As I pointed out, there are options such as flat-swapping with other LA tenants if he wants to move in order to leave the area. Whatever the faults with RTB (and as I said upthread there are many), at least someone somewhere had the foresight to put some measures in place to stop people like you exploiting loopholes.

Original poster
pussollini · 01/03/2013 22:48

Thanks all, I posted here to get info on whether it was possible to transfer ownership of a right-to-buy flat and you've all clarified that it isn't. As I said, we're just going to help him buy it for himself, which is his right.

I don't think I'd want to live there with him under any circumstances!

OP posts:
LegoAcupuncture · 01/03/2013 22:49

You wouldn't be able to lease it for first 3/5 years. If he doesn't need the property, why not give it up for someone who does?

Original poster
pussollini · 01/03/2013 22:51

Why are we defrauding? Is it illegal to help people? Are the mortgage companies defrauding the council too? Jesus, you really have a very mean view of life. Can you not see that people might be aiming to do more than line their pockets? We have spent thousands putting him through rehab and want him to have some security.

He doesn't want to flat swap, he wants a stable home where he has always lived.

OP posts:
dothraki · 01/03/2013 22:53

You are defrauding because what you are doing is not legal - OK

mamababa · 01/03/2013 22:56

I am with lala here. You want to buy his flat with very generous discount. For him. That's ok.

You then want to rent it out (and therefore make money) and then you or him will keep it for a number of years and then sell. For a profit lets face it.

So your intentions may be ok, but the suggestion you won't profit is ludicrous

expatinscotland · 01/03/2013 22:57

You can't lease it out for a while after it's been purchased.

OneHundredSecondsofSolitude · 01/03/2013 22:57

Giving large financial "gifts" is not without strings too.

You need to think about him being responsible for inheritance tax if the giver of the £ should unfortunately expire within (I think) 7 years

When dpil helped us with a deposit for our house it had to be structured carefully to minimize risk to us.