Give up Housing Association Assured tenancy to buy a House?

[Luv2chat2U]

Hi all,

I have been reluctant for some time to seek some advise on the above because I have seen similar questions on forums dismissed and turned into a debate on morals. These type of responses can be really unhelpful and I would really appreciate answers/experiences that will help to assist. (I am not relying on forums alone).

So the background is as follows: I have lived in housing association for 20+ years. My tenancy is secure (assured) and i am more than grateful.The properties i have lived in have always been lovely but my journey hasn't been without it's problems, (sure i'm not alone) and has meant that i have had to move a couple of times. My current home is a lovely 2-bed house with a drive on a small close of houses. The close itself isn't the cleanest unfortunately, but the neighbors are all lovely. The area has fantastic transport links as it is and is going under regeneration with the arrival of the cross rail.

I have always been an anxious person and lacked self confidence in myself which has led me to live in a bubble of procrastination and being indecisive such as starting UNI late because I thought i wasn't clever enough to participate or pass exams etc. Oddly when i actually do take action in my life the results have been positive and even then i doubt myself and ask how i achieved that. But purchasing a home feels like a whole different ballgame and i think it's mostly the fear of giving up a secure tenancy to losing a home.

Anyway enough rambling. So, with the last 20+ years there have been small pockets of opportunity, in which I have managed to save some money. Around 2016 probably was the peak. I am now also in a better financial position than in my former low paid role of 8yrs. I say financially better but far from minted.

I now have what some would say a healthy deposit to purchase a property but not in London (no surprise there) where i currently reside. My money would take me comfortably to somewhere in the West-midlands (no family or friends) where my rent here would be my mortgage there but even the WM is going up. Other places i have considered are Kent and Essex but these areas are more expensive and rapidly increasing and it would mean that i would very likely have to consider a lodger to help if i were to live comfortably.

I am single, in my early 40's, have a young adult child who would not even entertain these area's and would probably move in with his grandparents, so while i consider these area's, lodger etc, i also consider feeling potentially isolated as having my family in close proximity means a lot. Also not sure this is the best time to buy or if there ever will be a "best time" factoring that i am not getting any younger, and waiting may leave me with know options with house prices soaring.

The idea of owning my own home outright one day is my drive, but as mentioned above there are a few things to consider as areas continue to out price people. I don't even care to buy in London but the outskirts are also looking pricey. If i do buy further out can I ever get back in?

So thoughts please, do I stay in HA (rent under £500) - save more, invest in something else, take a leap of faith, noise dive, plunge, tip-toe, find a husband who will move with me to the W.Midlands yadayadayada.

Comprise is the obvious here but just wanted some thoughts on this.

Soz for the essay.

I would hold fire for a little while. There may be no rtb or rta at the moment but that doesn’t mean it won’t change. There is a pilot scheme running at the moment within a group of housing associations, created by the government to widen the right to buy and right to acquire schemes. I know in the HA I work for, we have been told that most properties (not new builds) may be eligible after the pilot has been assessed. But it’s whether you take the risk of waiting a couple of years, still saving and see what happens. Good luck!

@amarya Everything you say is what i keep telling myself, security, local connection and sudden change. COVID doesn't happen everyday but bloody hell it sure has rocked the boat for many. I don't act with hast and the advise i have received thus far will definitely have me reflecting alternatives. Thank you.

@RubyFowler Thank you! I think the "owning" part of my thinking comes from the culture in which buying your own home appears to be a big deal in the UK, but in reality it's not for everyone especially if it pushes you from being comfortable into uncomfortable. You're so right about security and I am so appreciative that I am on an old tenancy and not paying market rent. Gives me an opportunity and who knows for the future...

@TheTempest thank you. I actually inquired about the RTB and even right to acquire - they said that the property had to meet to criteria: the year it was built and how it was purchased. It passed the first but not the latter. Not sure if this will part will ever change but like your advise my dad say's wait- He says what's policy today may not be tomorrow.

This forum thus far is clearly echoing the same views. I appreciate everyone's comments and most certainly will take all into consideration including investment recommendations.

Well in that case I'd just wait & see what happens for a year or so.

Personally wouldn't touch SO with a barge pole.

I think you really need to think through what your future could look like. You are are in a very, very good position right now but moving away from your child and all your support systems as you age may be mistake. I don't know what work you do, but is it something that would be easy to transfer to another part of the UK? Would your current house be a good place to stay when you are much older/if you ever have mobility/health issues? I say that as someone who has had an unexpected health crisis which could happen to anyone (and means I am making different longer term decisions). What would happen if you couldn't pay your mortgage as opposed to if you couldn't pay your rent?

It may be best, if you have a good quality of life where you are, to stay and invest the funds wisely for your retirement.

BTL will be a no go as you wouldn't get one without owning a property first and you can't have a BTL and live in Council/HA property.

If you already have a pension in place then you might be eligible for a longer mortgage term (up to age 75 for some lenders). Something to think about if you can't make the decision now or need a bigger budget (can pay over a longer term and overpay when you have extra funds).

In your position, I'd stay put and see if the policy on right to acquire changes. I would also start looking into investing. Money Saving Expert is a good website to start. Don't underestimate the value of secure housing in a nice area close to family/friends/support.

@TheThingsWeAdmitOnMN thank you again for your advise and with regards to SO, agree, it's not really a route i want to explore.

@Grimbelina, thank you for your input and for sharing your own experience. I hope health wise nothing too serious. Currently where i live is close to all local amenities, transport links, hospitals etc and soon to have the cross rail, also very residential though i suspect it will soon look like a city with the regeneration that's underway. In terms of when i get older i believe this place will be suitable yes, it's a good size property not too big or too small, (just right) access to own drive and garden etc. Sorry i think i failed to mention that my child is a young adult (probably move out soon) albeit still my baby so i wouldn't really want to make a decision that would have him leave before he needs to. Yes my job could be done elsewhere, but the income will be a lot lower. At the moment we are WFH and might be indefinitely. If this continues then financially i would be better off staying in my role in London.

Hi @Turmerictolly, thanks for your input. Your info. is really helpful. I didn't realise that having a pension can be considered by the bank when considering a mortgage for the more mature . With regards to seeing if changes will apply to right to acquire, you are echoing the voice of more than one person. I may do well to be patient, keep saving and review.

Yes agree, I am very appreciative of my secure tenancy, many don't have security in housing which is so sad really. Area isn't the greatest but not the worst (you can't have everything). I lived in a fab area before in a conversion property. WOW the soundproofing or lack of was shocking and really impacted on my home environment and the neighbor's...

Right! I have decided, it's a NO to West Midlands! I may look closer to home and consider a lodger for the first couple of years but in the interim i am going to look at investment opts.

Thank you everyone!!

@Beeeeeeeeeeeeeep I didn't know that at all, so sorry rubbish advice ignore me!

@Persipan all the points you raise are valid and all of which i have considered, however, hearing someone else state it sounds even more alarming lol. I really wouldn't want to go through all that upheaval just to own a house and like others have said on this forum having the security and being close to friends and family which i currently have is important. I would regret it and the idea of not being able to reside close to London would definitely cause me anxiety. Not worth it!

@msbevvy thanks for your input. I would definitely regret it if i were not living near to my future grandchildren, devastated in fact! Even being distant from own would be a struggle (secretly was hoping persuasion would work lol) The appeal of homeownership slowly drifts away, (owning out right was part of the reason, though i currently pay low rent so can continue to save and invest money instead)

@Beeeeeeeeeeeeeep Your advise was welcomed and far from unhelpful. I've read of people who say that their HA have actually allowed BTL, so long as they reside in their HA as main place of residence. whether its true or not i don't know. This is just not a route that i would choose. but thank you for your input.

In your place I would definitely stay put. What do you hope that buying a house will bring you? Presumably a secure place to live - but you have that already. You are in a very different position to people who have to move regularly because they do not have a secure tenancy.

Also, if you own somewhere there are lots of additional costs of ownership and maintenance which are currently paid by your HA.

I agree with the suggestions to put your savings into securing your financial future.

A secure tenancy is better than a mortgage is an area where you don’t have any links.

I would spend the next 20 years building up an ISA and then buy a retirement bungalow in your shoes.

In your situation i would stay put to be near family and friends.

You said your DC is an adult.
Would they be prepared to have a joint mortgage with you?

@Luv2chat2U why don’t you have RTA ? Are you not in England?

@Luv2chat2U just noticed you live in London you do have RTA then maybe not in your current property but you can use RTA for another property.

Don't move just for the sake of buying a property, move somewhere because you want to be in that place.
Having said that, can I tell you about my experience. We bought our current house 20+ years ago from a builder, with a very small deposit. In the same street are some identical houses owned by a housing association. Over that period of time we have paid our mortgage. A neighbour has been paying rent starting at about 1 1/2 times our mortgage. We have now paid off our mortgage and the house is fully ours. Our neighbour is still paying rent. Being a new house we have had little to do in way of maintenance except for decorating etc and gardening.

I have a colleague at work in a similar situation. I advised she think about what happens on retirement. Could you still afford to pay any mortgage then rather than your pegged rent? Usually the aim is to have any mortgage paid off by retirement. I would be tempted to stay and look at putting the money you've saved into stocks and shares ISAs or boosting your pension fund. Having an hour with an independant financial adviser could be a good idea.

@Bonariensis, some really good advise thank you. Agree about the secure tenancy and i'm very grateful believe me. Private renting has changed and while it works for some, I've seen the uncertainty for others. I recall some few years ago that i was considering the private route and I am so glad i didn't. What i really need to consider now is where to invest as interest rates are so low.

I would stay out and keep saving for now- it may be in a few years your child will I e out anyway and then maybe would be the perfect opportunity

@Ritasueandbobtoo9

A secure tenancy is better than a mortgage is an area where you don’t have any links.

@Ritasueandbobtoo9 Simply put and so very true... I need to start looking at ISA's then but my understanding is that you can't run two within the same tax yr, so I'll compare rates with the one i have now and review. Maybe i'll get my hands on that retirement bungalow that is, if its not all the way in timbukatoo by my retirement the way house prices are pushing people out lol.

@sunshinesupermum thank you for your input, i've decided to do just that!

@MrsMoastyToasty, thank you for comment, It's a really good idea and one of which I have explored over and over but young adult who still needs to mature and grow up a bit. I'd lose the house before i got it lol.

@MyDcAreMarvel . I've been told by my HA that they they are not piloting the scheme in London currently. They also notified me that my particular house was not purchased with public funds so wouldn't qualify. I believe i maybe able to transfer to a property that does have RTA but again these are out of London which i don't mind if on the outskirts, but they informed that they are up north and the scheme is currently closed.

@guessmyusername

Don't move just for the sake of buying a property, move somewhere because you want to be in that place. Having said that, can I tell you about my experience. We bought our current house 20+ years ago from a builder, with a very small deposit. In the same street are some identical houses owned by a housing association. Over that period of time we have paid our mortgage. A neighbour has been paying rent starting at about 1 1/2 times our mortgage. We have now paid off our mortgage and the house is fully ours. Our neighbour is still paying rent. Being a new house we have had little to do in way of maintenance except for decorating etc and gardening.

Thanks for sharing your experience and advise. The end result of owning outright must be a nice feeling.

@refusetobeasheep

I have a colleague at work in a similar situation. I advised she think about what happens on retirement. Could you still afford to pay any mortgage then rather than your pegged rent? Usually the aim is to have any mortgage paid off by retirement. I would be tempted to stay and look at putting the money you've saved into stocks and shares ISAs or boosting your pension fund. Having an hour with an independant financial adviser could be a good idea.

Thank you, some very useful advise and good points raised. The responsibility of taking out a mortgage is not a decision to be made likely. A lodger short term is a compromise anything longer is conflict lol, but in all honestly to suddenly start sharing my space would not be my first option, and if i were to purchase closer to London, i'd have to seriously consider it! I like the idea of a financial adviser better and will look into this!