right to buy problem

midvixen

Can anyone out there help me???


My husband and I are trying to buy our council house through Abbey, but because we want to borrow an extra £6000 we have to get a "Deed of Postponement" from our local council. Can anyone tell me why?

Our house is worth £40,000, but we are only paying £22,000 for it. We were told we could get a £28,000 mortgage from Abbey, but they have been dragging their feet for a couple of months now.

What does this "Deed of Postponement" have to do with getting extra for home improvements. We have already provided quotations for the work we want to do. I just don't get it!!

Maybe I should just give up and stay renting/

HELP !!!!!!!!!

payless

Basically gives the lender rights in repossession over the council
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as I guess you know council keep an interest in the property for the first few years, this deed protects the lender if lending over 100% of the discounted amount

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Is it the council or lender holding it up

midvixen

I think it's a bit of both. The council say we need to give them £50 for the Deed of Postponement, but Abbey say they can go ahead with just a letter saying the council will issue one. Nightmare!

Robert_Sterling_3

Stay calm and don't go into one.
The council seem to want to give you £18,000 equity in the property you live in. If I were you I would accept this generous offer with thanks and not make a big deal out of the fact that you have to fork out a small sum in order to borrow money to improve the property.

welnik

The discount the council give is repayable if you sell your house within 3 years on buying it. If you go into arrears, the lender gets their money first and the Council second. This is why a Deed of Postponement is required. Basically the home improvement monies rank 2nd after the monies used to buy the property. The council then rank 3rd. Without this legal document the lender is likely to say not to any home improvement loan.

belleooo

I was never asked to provide a 'Deed of Postponement' when I recently purchased my council property. My mortgage was for £30000 with a sizeable deposit. In fact this is the first time I have heard of such a thing. :-/ Good luck with your purchase though and stick with it. You won't regret it.