Money complications on buying dream flat

conspiracy

Hello all,

Please could someone or anyone advise me if there's any possible way of buying my dream flat!

Will try to keep this simple to aid replies as there are lots of things stopping me buying the flat.

First off a brief history of me...

The Good,
I'm 31 and have been renting for 4 years paying £700 a month for the last 2 and a bit years.
I earn £21k basic

The Bad,
I'm would be buying on my own.
I went bankrupt in 2007 and was discharged in 2008. I do have a mobile phone contract and credit card now but still obviously a very poor credit rating so impossible (I think) for me to get a mortgage.

The flat....

The good,
Has an asking price of £129,000 good price for the road and area it is.
Chain free, executor sale.
Is my dream flat!

The bad,
Only has a 49 year lease remaining
Needs alot of work (but that's good for me :j)

The Money,

The good,
My mother wants to invest in a property and me lol to help me get on the property ladder.
We have a large deposit to put in (£30k-£50k)
I can afford mortgage repayments of upto £700 a month)
Mum owns her own house mortgage free (worth around £250,000)

The bad,
I can't get a mortgage
My mum has no income other than state pension and interest (cough) earned on savings.
The flat only has a 49 year lease.

Our options??

Mum has previously been advised she could get a Buy To Let mortgage but guess not on this flat as it only has a 49 year lease and needs work doing to it?

Raise money on mum's property? However she has no income so can't get a residential mortgage?

Can anyone help us.

P.S. I know my mother is amazing for being prepared to invest her savings or house on me!!!!

Thanks alot in advance.

Paul.

P.P.S. I realise that wasn't so short and simple!

themull1

the only thing i can think of is for your mam to sell her house, and rent it back to release funds, but sort of defeats the object of buying you a flat. i don't think you can get it if neither you or your mam can get a mortgage. could you marry a rich 95 year old? the lease is too short, have you made enquiries as to how much it would cost for the freehold?

Thrugelmir

conspiracy wrote: »

Has an asking price of £129,000 good price for the road and area it is.
Only has a 49 year lease remaining

Does the selling price reflect the cost of the lease extension? Which could be considerable and run into £'000's of pounds.

conspiracy

themull1 wrote: »

the lease is too short, have you made enquiries as to how much it would cost for the freehold?

We have made enquires with the estate agent as to buying the freehold as that is what I'd like to do but according to them the freeholder isn't interested in selling.

I have done a land registry search which "I think" shows the details of the freeholder. If these are the right details I'm thinking of sending a letter direct to them in respect of buying the freehold.

Thrugelmir

conspiracy wrote: »

We have made enquires with the estate agent as to buying the freehold as that is what I'd like to do but according to them the freeholder isn't interested in selling.

I have done a land registry search which "I think" shows the details of the freeholder. If these are the right details I'm thinking of sending a letter direct to them in respect of buying the freehold.

Freehold flats are difficult to mortgage for obvious reasons. You would need to buy the freehold of the property in conjunction with the other leaseholders to make it worthwhile.

I'd concentrate on just raising the money as is to purchase together with the cost of the lease extension before unnecessarily troubling other people.

conspiracy

Thrugelmir wrote: »

Does the selling price reflect the cost of the lease extension? Which could be considerable and run into £'000's of pounds.

Well yes and no, the estate agent "guess's" the lease extension would be £20-£30k which I've told them means the asking price is a bit high. Their reply was they are "testing the water" with the price.

My opinion is the flat would be worth about £180k after renovation and having a new lease on it although the agent thinks nearer £200k but hey who believes agents!

So say I got the flat for £120k lease extension £30K and renovation about £25K then that means I'd be paying nearly market value in total. But I have to add this isn't being done as buy up and sell on. I want to make this my own place for the foreseeable future and as long as I don't lose money then alls good.

conspiracy

Thrugelmir wrote: »

Freehold flats are difficult to mortgage for obvious reasons. You would need to buy the freehold of the property in conjunction with the other leaseholders to make it worthwhile.

I'd concentrate on just raising the money as is to purchase together with the cost of the lease extension before unnecessarily troubling other people.

Thanks for the reply. Why would a freehold flat be harder to mortgage? The flat I want to buy is one of two in a converted house.

That said I'm thinking it will be easier all round to just extend the lease...all be it at considerable cost!

Just need to be able to buy the place now!!