Right to Buy mortgage

the_BossHogg

Hi folks,

my first post!

ok here goes...
I want to buy our council house and have been offered a 50% discount on the property value.
I have no savings whatsoever for a deposit.

Can I get a mortgage for more than the purchase price considering its a right to buy property?

cheers
Mark

kingstreet

You're not going to need a deposit, but borrowing more than the discounted purchase price is unlikely to be possible. I'm not sure if there are lenders left offering extra for home improvements, but they certainly won't lend extra for anything else.

Conrad

Sorry King, don't mean to step on your toes, but you can borrow over the price with some lenders - I've had some of these. Sometimes the council has to agree to this in writing as it effectively eats into thier equity which remains thiers until the pre - emption period is up (3 - 5 years).

OP - the property will need to be of suitable construction materials - some council places are made of unusual materials such as concrete which UK lenders tend not to trust long term (ok in a sunny med climate, not in a damp Northern climate)

kingstreet

None taken.

It's ages since I did a RTB with further borrowing and I did only do a cursory check, so mea culpa.