very complicated, can it be done?

birmanza

I posted earlier about my 1/4 share in house that my parents have inherited. (thanks for the replies!) this is the full story and not sure at all if it is all possible... we bought our council property last year and cannot sell it without having to repay our council discount until Feb 2008 (As the property now has around £55000 equity we dont want to lose £18000 by selling early). We want to buy the property that my father and his sister have inherited. Can we rent out our current house , get a let to buy motgage using the 1/4 that my parents have said I can have as the deposit, pay my aunt and my parents their share and buy the house?? Also it would be a self cert mortgage, would any mortgage company touch us with so many unusual demands, and would we end up paying huge interest rates?
Also can we do it between ourselves without estate agents? How would the fairest way of getting a true valuation be done?
thanks in advance
Angela

Wickedkitten

Wait:

You want to get a buy to let mortgage on which house, the second one or the council house, and I didn't completely understand what you put but is the buy to let mortgage that you are wanting also a self cert?

birmanza

I dont want a buy to let mortgage, I want a let to buy, as in you let your house to buy another... it does exist, I just dont know if with all the other requirements, self cert and using 1/4 share as deposit it would be possible.
The let to buy mortgage would be a self cert, if possible but could possibly be done on earnings if necessary.

homer_j_3

If I have understood your post correctly -

Your current house is the property that has the council discount applied to it and you are still in your pre-emption period (discount period) until feb 08.

You have been told by your parents that they are gifting you 25% of the value of the property that they have inherited, albeit the house will show true ownership to your parents.

Your plan is to actually let your own property and use your share of your parents inherited property for a deposit on a new house, Is that correct?

If so, the mortgage on your current property will be under a right to buy scheme and you cannot go onto a let to buy scheme. You may be able to speak to your current lender and see if they would mind you renting the property but I am not too certain as each lender will have its own criteria. It may well be impossible but the easiest way to find out would be to call your lender.

With regards to raising your deposit, you would most likely physically need your parents to either mortgage the property to raise the capital for your 25% or give you the cash equiv from their own funds somehow.

As legal ownership is in your parents name you do not have any legal say in it so your security is not that secure if you see what I mean.

birmanza

Thank you for putting down in writing what we want to do so much better than I can!

The house that we want to buy is actually the house that my parents have inherited. I want to know if we can use the 1/4 they are giving to me as the deposit for the mortgage?
I am right in understanding that because we have a right to buy mortgage on our current house that we cannot get a let to buy mortgage for the other house? does one company have to provide both mortgages?
As you can tell I know absolutely nothing about mortgages and what you can and can't do... if you or anybody knows of a way we can keep our current house and buy the one my parents have inherited then please make a suggestion!!

homer_j_3

Its OK. That is what this forum is for and there are a lot of people who can and will help where possible.

Let to buy mortgages would only be useful in your situation if you intended to let your current property out so you could buy the inherited property. As I said in my last post, you will have to remain on a right to buy scheme whilst in your discounted period.

If your intention is to let out the council property and live in the inherited property, you may struggle with affordability as your income will need to be taken into consideration to support both mortgages. Without details of earnings, employment status, property values for each property and existing mortgage balance then I am unable to give you an indication.

Is there any reason why you couldnt wait until the discount period has ended?

To be honest, with the complexity of your case and the lack of your knowledge you would be best seeking the advice of a mortgage adviser who can sit down with you and explain everything in full and that is relevant to you specifically.

The brokers on here will not provide specific advice on the basis we do not know if it is the advice we give is the most suitable without knowing the full facts. If you need any further generic advice, please do not hesitate to post back