Buying my mums council flat

Steviec321

ianian99 wrote:

I know that mate but he is planning for his partners mother to claim housing benefit and for it to be paid to him as he will be her new landlord

Ok i did not mean to cause such a stink.

I am just a working class young lad looking to make a few pennies on the property ladder.

My question is now.

Can i get a joint mortgage with my partner and loan the money to her mother ( or give her the money) and can i get a legal document drawn up to say that her mother can live there for the rest of her life and if anything happens to her, that we will then become the owner.

Thanks.

silvercar

Mortgage providers have to have a charge on the property. To do this the mortgage and the property are normally in the same name.

You could act as guarantor on a mortgage in her name with her mother as the owner of the property and the mortgage.

Her mother could then write a will leaving her property to you both.

There are problems with this. If her mother needs to go into a home the property often has to be sold to fund the care.

Steviec321

silvercar wrote:

Mortgage providers have to have a charge on the property. To do this the mortgage and the property are normally in the same name.

You could act as guarantor on a mortgage in her name with her mother as the owner of the property and the mortgage.

Her mother could then write a will leaving her property to you both.

There are problems with this. If her mother needs to go into a home the property often has to be sold to fund the care.

i am more mixed up now than i was at the start.

so what ur saying i cannot get a small mortgage of 25,000 that i can easily afford, to fund this purchase of her house.

i can say that she will never go into a home.

So do you think what i am trying to do is only possible if i have a lump sum of cash

dander

There's no way you could buy it in your name, no. Even with a lump sum of cash. Right to Buy is the tennent's right to buy, not the tennent's relatives' right to buy.

You might be able to guarantee her mortgage, but the mortgage would have to be hers. And if you guaranteed the mortgage, the benefits folks would expect you to pay rather than give her housing benefit.

Steviec321

Lets start again with this.

Can i get a mortgage that i will in turn give to my partners mums who will buy the house in her name.

i will make the repayments on the mortgage.

in return for this my partners mum would transfer the deeds of the house or write it into her will that the house will be mine.

is this possible

BobProperty

ianian99 wrote:

I know that mate but he is planning for his partners mother to claim housing benefit and for it to be paid to him as he will be her new landlord

And I was trying to point out that if she buys it to get the discount, then claims IS to get them to pay the mortgage, the interest payment she will get will probably be short of the actual amount being charged. So he has to find 9 months mortgage payments and make up the shortfall every month thereafter for her to buy it.
If he manages to buy it and install her as the tenant, there is another potential problem anyway, in that the HB will be limited to the "going rate" in the area. If the HB as rent isn't enough to cover the mortgage then he will be making up the shortfall again.

BobProperty

Steviec321 wrote:

Lets start again with this.

Can i get a mortgage that i will in turn give to my partners mums who will buy the house in her name.

i will make the repayments on the mortgage.

in return for this my partners mum would transfer the deeds of the house or write it into her will that the house will be mine.

is this possible

Yes if you own a house with equity in it, you can re-mortgage it. Who is going to pay the mortgage?
No, she can't transfer the deeds to you as that counts as "disposal" so the clawback rules kick in.
Yes she can put it in her will to you but she can change that anytime she likes.

silvercar

If you use the right to buy scheme the property has to be in your partner's Mum's name for at least three years.

If she can get a mortgage (may be with you acting as guarantor) you can give her the money to pay it if you want.

Your partner's mum can write whatever she likes in her will. She can also change her will whenever she wants.

So far so good.

The problem is that you do not have the security you think. If she fell ill and needed to go into a home , she could be forced to sell the property to pay for her care.

If her circumstance changed she may not want or need to stay in the home.

If after 3 years she transferred the property to you, she would have to account for the market value of the property ie if she received benefits her benefits could be affected.

QBD

Steviec321 wrote:

Lets start again with this.

Can i get a mortgage that i will in turn give to my partners mums who will buy the house in her name.

i will make the repayments on the mortgage.

in return for this my partners mum would transfer the deeds of the house or write it into her will that the house will be mine.

is this possible

In short, NO!

She would have to apply for a mortgage in her name and be liable for the payments, obviously you could give her the money for this but legally you are removed from the entire process.

QBD

one further bit of advice, look out for the companies who want to make a quick buck off you by arranging the whole process that you can do easily yourself.