HAP Tenant offers to buy their rented property

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Luternau

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A HAP tenant has expressed an interest in buying their rented property (estimate value €425/450k) out of the blue. I am taking it as a genuine approach but am surprised they can or would want to buy when getting approx 14k pa in rent paid for them and no cost of ownership outlays etc.

Has anyone experience of this before?
 
DannyBoyD said:
Do you want to sell?
Can they raise a 380-ish mortgage? Do they have 40k deposit?
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I was not considering selling at present, but definitely in next few years. I might get a valuation and then make final decision on it. If I was to serve notice and put it on the market it would sell easily, probably with quite a lot of interest.

I dont know much of their finances as I had no reason to know it. Rent was paid and the place looked after. I am unsure if they coud get that much in a mortgage (many not on HAP could not) or if they could get a mortgage while on HAP.

Edit: Just to add, I have nothing against anyone on HAP. Maybe my real question or issue is how someone in receipt of housing benefit is looking to buy a property that would be out of reach for many couples.

Is the scheme supporting people that no longer require Housing support? In such cases, could the money be put to better use?
 
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Luternau said:
I was not considering selling at present, but definitely in next few years. I might get a valuation and then make final decision on it. If I was to serve notice and put it on the market it would sell easily, probably with quite a lot of interest.

I dont know much of their finances as I had no reason to know it. Rent was paid and the place looked after. I am unsure if they coud get that much in a mortgage (many not on HAP could not) or if they could get a mortgage while on HAP.

Edit: Just to add, I have nothing against anyone on HAP. Maybe my real question or issue is how someone in receipt of housing benefit is looking to buy a property that would be out of reach for many couples.

Is the scheme supporting people that no longer require Housing support? In such cases, could the money be put to better use?
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Would your tenant be thinking of the tenant in situ scheme? It is for those on HAP who are being evicted because their landlord is selling.
 
DannyBoyD said:
Could have inherited or even won on the lotto (I believe people do!)
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Of course that is possible. However, the tenants are from a low income country and an inheritance of a significant sum would be less likely.

Even if they had a long lost cousin or other that was a genuine Nigerian Prince or other countries nobility, in fairness, how likely is it that an inheritance is the source of funds?

Winning large sum in lotto is pssible, but also less likely. Very few people win big sums on the lotto.
 
If I take this further, I would of course require them to provide proof of funds or finance. I just don't want at this stage to be asking for this.
 
Luternau said:
If I take this further, I would of course require them to provide proof of funds or finance. I just don't want at this stage to be asking for this.
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You dont need to - Solicitor will ask for in due course as part of AML.
 
DannyBoyD said:
You dont need to - Solicitor will ask for in due course as part of AML.
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I just mean proof they can afford to buy it (ie loan approval) like any auctioneer would ask for. Not the source of any funds for AML, which I cannot ask for.
 
Mamamia22 said:
Could it be possible that individuals on HAP get to save more every month than those earning more and not getting HAP when renting ?
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Yes, that's quite possible. However, someone needing assistance with rent really should not be able to save a deposit or greater to buy on account of not having to pay all their housing cost.

Maybe I am too black and white here but it seems bizarre that once accepted for HAP, you are not reassessed for eleibility. So you qualify at under threshold and income doubles and you continue to be eligible. If you are over the threshold when you apply your application is rightfully refused.

Assuming their income exceeds current HAP thresholds (and it's not a lotto win or inheritance) its just not right that the taxpayer is funding them gather a deposit on a house (or life's luxuries if they don't wanr to save to buy) but other people have to forgo holidays and lifes luxuries to save for house deposit or perhaps just to buy a car etc.

If they have won the lotto or had an inheritance fair play to them. If this is the case, and I inform thwm the house is not for sale, I would expect they will buy another property. If they stay renting form me I would question their continued eligibility for rent support.
 
DannyBoyD said:
Seriously?! You mean they should be forced to rent for the rest of their lives?
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Please dont nit pick. The purpose of HAP is to support people with their housing needs. Of course they can get on in life, and fair play to those that do, but they should exit HAP at that point, not use it to fund a hefty house deposit.

If you are a taxpayer, thats some of your money that will help them buy a house and pay their rent too. Meanwhile, loads of people have to pay rent and save for a deposit with no State Housing support.

I am surprised you can't see the difference.
 
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DannyBoyD said:
They are exiting HAP - they are buying a house.

One could also argue that my tax euros have been funding both your income & capital appreciation of your asset.

In any event, if you want to sell, sell.

Its no skin off your nose who buys it.
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You are not going to get it.

I posted asking if this was common and nobody including you has said it is. The reality of all the government talk of sale to tenant in situ is that most tenants cannot afford to buy. It's not wrong to ask how a tenant on HAP can. That's all I asked.

This is not about my investment gain. I will pay any CGT due at time of sale. HAP payments are not driving house prices, thats just market forces, and emphasis on a clear lack of supply. I have also paid income tax on the profit which hopefully will allay any concern you have that I may be coining it at your expense.

To be honest, what you posted above is akin to the typical anti landlord sentiment that is driving many to sell. Being blunt, it's inconsiderate and shallow. .

The State has clearly failed to provide adequate housing and relies on the private sector for social housing needs. If I, or others like me have a profit from HAP, it should not be such a bad thing. But apparently to some people it is. I am not relying on state rental subsidy to pay for my investment and could just as easily chose to rent to someone not in receipt of housing support. I chose to make it available to HAP.

But again, you don't want to see it that way..
 
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