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charlesworth82
Posts: 313 Forumite
Hi, I'm hoping someone can advise on if this is possible:
My mum has lived in her council house her entire life. she's now decided she would like to purchase it.
She only works part time so she's doubtful with her age and income that she won't be able to get a mortgage. She has been told she can put someone else on with her.
She has asked myself. My issue is I already own a house. Would this be classed as a second house and all the fees and costs associated with that?
My mum has lived in her council house her entire life. she's now decided she would like to purchase it.
She only works part time so she's doubtful with her age and income that she won't be able to get a mortgage. She has been told she can put someone else on with her.
She has asked myself. My issue is I already own a house. Would this be classed as a second house and all the fees and costs associated with that?
‘It ain’t over 'til it's over’
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Comments
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You already own one house. This would be your second. Extra SDLT would apply, plus CGT eventually. Why does she want to buy it?0
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she wants to buy it as the mortgage payments would actually be less than what she pays now (plus it would be hers)‘It ain’t over 'til it's over’0
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charlesworth82 wrote: »she wants to buy it as the mortgage payments would actually be less than what she pays now (plus it would be hers)0
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Hi Charlesworth82, as to your specific question yes you'll attract the tax and fees associated with a second property if your interest in the property is greater than £40,000
However, you should consider a serious conversation with your Mum about this - my Mum was in a situation which sounds fairly similar to yours recently in that she was keen to purchase her council house for the same reason you've listed above, because she wanted to own and the discount would be very attractive. I actually came here to ask for advice in talking her OUT of that decision.
You've already acknowledged that your Mum is on a low income and that wouldn't be able to get a mortgage by herself - at present, the council are responsible for repairs that need doing to the house and she has lifetime security, where as if your Mum was to be an owner, could she afford the costs that come with ownership? A new boiler as an example can be a few thousand pounds easily.0 -
charlesworth82 wrote: »she wants to buy it as the mortgage payments would actually be less than what she pays now (plus it would be hers)
Does she get any Housing Benefit to help with the rent?0 -
OP in my area, you cannot just put someone else on with you, they have to live there, and proof of this must be provided going back 12 months. It may not be like that in your area thoughThe opposite of what you know...is also true0
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In many councils you can only get the right to buy if you are a tenant. So you don't have the right to buy this house which means that you can't get a mortgage to buy it. The only person who can buy it is your mother and she can't afford it. There is actually no benefit to her in owning it and a lot of risks.0
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In many councils you can only get the right to buy if you are a tenant. So you don't have the right to buy this house which means that you can't get a mortgage to buy it. The only person who can buy it is your mother and she can't afford it. There is actually no benefit to her in owning it and a lot of risks.
She's spoken to them and can put a non-tenant on.
The main benefit for her is she would buy a house for around 40% of the value - and also pay less a month. The risks would be if things go wrong in the house but I would pay for that if need be.‘It ain’t over 'til it's over’0 -
The value of the house isn't relevant; what's important is that your mum has a secure tenancy and doesn't have to worry about maintenance costs. There is a lot to be said for that peace of mind when you're on a low income. You can't guarantee that the mortgage will always be lower than the current rent, especially given the financial uncertainty facing the country.They are an EYESORES!!!!0
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