Looking for a Right To Buy Mortgage with Mum - She is the tenant and 67

skint_chick · 27 June 2017 at 1:50PM

RTB papers have to be in the same name as the person/people taking out the mortgage. You cannot raise a mortgage on your mum's house if you are not named on the tenancy. It would have to be a joint mortgage if your mum is also on the tenancy. Mortgage typically has to be repaid by the time mum is 75 so term will be 7 years. Monthly payments on that would be £1,000 or so depending on interest rate - plus you'll need funds for other costs such as repairs, ground rent etc you're not already covering.

You need to talk to your mum about adding you to the tenancy - check with the council how long you have to be on the tenancy before you can do RTB and see if it is even possible. Your mum cannot buy the house on her state pension alone as she won't meet affordability criteria. Also if you buy together then what happens if your mum needs care - you either leave your job and can't pay the mortgage or she goes into a care home and you have to sell the home anyway.

SnooksNJ · 27 June 2017 at 2:22PM

Mrs_Flax wrote: »

My gosh - you guys really don't think that there might be a Daughter out there with a true bond with her Mum do you? You think everything is about money and what people can get for free? Take a look in the mirror guys. I'm guessing that a lot of you struggle with relationships. Maybe a few failed marriages between you all and a few children that don't like you? This shall be my last post on this thread. I am so happy with my life, my job, my lovely Mum and who I am as a person. Thank you to everyone who has genuinely given me advice today on my question and I hope that all the nosey, hating trolls with personal issues are happy within themselves one day. Have a good day everyone. TTFN.

That's great. However, myself, and 99.9999999999999999% of the female population can have a special Mother/Daughter bond that doesn't require a 50 grand taxpayer subsidy.
Have you called the bank yet?

macman · 27 June 2017 at 2:22PM

I'll confine my comments to the economics rather than the politics.You say you have savings, a good wage, no dependants, etc. If so, why can you not afford a 10% deposit in order to borrow about £50K? If you don't have savings, what are you going to use to pay the legal fees, mortgage fees etc? Not to mention the maintenance bills which will be your responsibility. As stated above, you cannot get a 'normal' joint mortgage, given that your mum will be 92 in 25 years time and has no private income. Having said that, many lenders will accept the discount in lieu of a deposit, though of course this means that you will limit your options, and pay more.
You don't need to be a tenant to buy it jointly, you simply need the property to be your main home, and to have lived there for a least 12 months.
The only other way I can see to do this is for your mum to borrow the £50K elsewhere, or more likely for you to do so and 'lend' the money to her to purchase it outright. But of course you then have no share of ownership at all, and no right to occupy beyond the status of a lodger. remember that she cannot sell it within 5 years without paying back a percentage of the discount. Fall out with her and you'll potentially be homeless.

teddysmum · 27 June 2017 at 2:53PM

I'll bet most of these RTB posts are from the self serving or trolls, set to wind people up.

Perhaps, if they are ignored less will be posted, leaving room for those deserving help.

Let's face it, no one wanting to buy their aging parent's house for around half the market price, has anything but self interest in mind and wealthy 'indulgent' offspring, if genuine, would buy a much nicer property than a council house, and share that with the parent, of whom they think so much.

Caroline_a · 27 June 2017 at 3:03PM

A point OP that has been touched on, but maybe to add some figures to the equation. I live in the house that was my dad's. It's an old house, and around 9 years ago I spent the proceeds of my own house sale on doing it up - new wiring, gas ch, windows, new kitchen, bathroom, new additional loo downstairs. There is no mortgage on the house.

Since I moved in (9 years ago), there have been regular repairs needed every year, ranging from leaking loos (luckily only £150 to repair, although there will be some decoration required) to new guttering and soffits (£3.5k!) which were needed. I would estimate I've spent at least £2k a year if not more on running repairs. And that's with no mortgage to pay! Could your mother afford that? Could you? and in addition would she want the upheaval and mess that having workmen in - particularly as you will have to source your own, and believe me, as a lone female it's really difficult to find someone who is trustworthy and does a good job!

These days owning a home is absolutely not the Holy Grail it used to be (and i've owned houses all my adult life). A housing association/council house however, where all repairs and regular modernisation are done for you might well be.

parkrunner · 27 June 2017 at 4:27PM

Mrs_Flax wrote: »

My gosh - you guys really don't think that there might be a Daughter out there with a true bond with her Mum do you? You think everything is about money and what people can get for free? Take a look in the mirror guys. I'm guessing that a lot of you struggle with relationships. Maybe a few failed marriages between you all and a few children that don't like you? This shall be my last post on this thread. I am so happy with my life, my job, my lovely Mum and who I am as a person. Thank you to everyone who has genuinely given me advice today on my question and I hope that all the nosey, hating trolls with personal issues are happy within themselves one day. Have a good day everyone. TTFN.

You still don't get it, you are taking away your mum's security.

Cakeguts · 27 June 2017 at 5:41PM

I can't decide whether this thread is a wind up or whether mother and child are both puddled. I hope it is a wind up because that would be better. Mum is puddled because they think that the child would like to pay for an ex council house when they could afford to buy a better house on the open market and child is puddled because they think mum would have more security from living in a house with a mortgage.

Cheeky_Monkey · 27 June 2017 at 5:58PM

I'm not sure it is a wind-up.

I think the OP is just too thick to do any research on the matter herself so thought she'd do it the easy way.

Clearly, both the mother and daughter are totally selfish, greedy people. In a way, I hope she does buy it. But then I equally hope that she loses her job and has the house repossessed :rotfl:

Pixie5740 · 27 June 2017 at 6:06PM

Don't hate the player hate the game.

Really if the OP wanted advice about mortgages then the question would have been better placed on the Mortgages & Endowments board. If the OP has lived at the property with her mother (the tenant) for at least the past 12 months then she can make a joint application with her mother. The mortgage will need to be in joint names and I suspect that the mother's age will be an issue.

It's really lovely that the OP would give up her job to care for her mother should she require care and better still now that the mother will own a significant asset which can/will be sold to pay for care should care beyond what the OP can give be required, because with the best will in the world sometimes residential care is best option.

Hopefully the OP won't end up in a situation where she gets married (or enter into a civil partnership) and divorced therefore risky the home she shares with her mother but given the OP has such a strong bond with her mother that she doesn't appear to ever want to fly the nest that shouldn't be an issue.

BrassicWoman · 27 June 2017 at 6:28PM

OP: to do this you need
- to be on the tenancy agreement
- to be living there (you say you are "down as living there", do you actually live there?)
- have a deposit of around 15% of the purchase price
- have about £3k for solicitors, stamp duty etc
- have an emergency fund of around £5 for stuff like replacement boilers, etc
- probably have income protection insurance and critical illness cover - mum is now relying totally on you, with no housing benefit fallback position
- agree not to eg get married and want to buy anywhere else - or have enough to cover both mortgages and the extra 2nd home stamp duty

Does that sound doable once you have costed it up?

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Looking for a Right To Buy Mortgage with Mum - She is the tenant and 67

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