100% Right to buy Mortgage - 34K Discount

PamVegas

I was thinking the same science geek. The whole right to buy issue really gets my goat. Why should a renting tenant be entitled to a discount on purchasing a property. If it was a private rental this would never be the case so why should be who are lucky enough to get a council property in the first place be given additional benefits such as this.

sciencegeek

in some ways i think its a good thing, it can clear a property off the council books along with all the associated costs I assume the council covers such as repairs. If they are selling houses for 186k or whatever then surely they can afford to pay for two more smallish newbuilds that could be used to home two sets of needy people rather than 1 set of clearly less needy people.

Fairdo_2

Hoping not to have got the wrong end of the stick, but I think the original post was asking if they could borrow more than the actual discounted price. Now I know some lenders would tend to allow borrowing over and above the discounted purchase price, but as mentioned before, they would only tend to allow further borrowing for Home Improvements only. To be frank, I have not come across a reputable lender that would lend p to 100% of the Market Value of the property.
In answer to some more recent queries, I have helped several households to obtain their Right To Buy when the household were earning a decent joint income. It doesn't go to say that they were earning that sort of income when they initially took on the housing association tenancy. I hope there is not an implication that people in this position should not be allowed to better themselves?

herbiesjp

Fairdo wrote:

Hoping not to have got the wrong end of the stick, but I think the original post was asking if they could borrow more than the actual discounted price. Now I know some lenders would tend to allow borrowing over and above the discounted purchase price, but as mentioned before, they would only tend to allow further borrowing for Home Improvements only. To be frank, I have not come across a reputable lender that would lend p to 100% of the Market Value of the property.
In answer to some more recent queries, I have helped several households to obtain their Right To Buy when the household were earning a decent joint income. It doesn't go to say that they were earning that sort of income when they initially took on the housing association tenancy. I hope there is not an implication that people in this position should not be allowed to better themselves?

Hi Fairdo

Good to see you back

You need to update your signature to the one i have below (all advisers have it now)

payless

http://forums.moneysavingexpert.com/showthread.html?t=325378

( even the text-size and font should nowbe uniform - including no bold for the part in black)

herbiesjp

and i cut and pasted off someone - lol!

sciencegeek

Fairdo wrote:

I hope there is not an implication that people in this position should not be allowed to better themselves?

absolutely not, I am all for people bettering themselves. Im sure the OP was not earning 50k when they first aquired council housing but would you not say that as your circumstances improve perhaps your 'rights' to the council property should diminish?
Im speculating really because i dont know the ins and outs of council tennency arrangements but if rents are cheaper in council property or subsidised in some way then I feel it is wrong to retain those benefits when you could enter the mainstream housing market. I imagine that the reason rents are cheaper is to allow poorer people to have a roof over their heads.
This is not a slight on the OP in any way more just a general opinion of mine. For all I know the council might be making a tidy profit renting to the OP at full price!

Was also wondering, do you think councils would be selling off properties if the 'right to buy' legislation did not exist?

dwight-van-man

Fairdo wrote:

To be frank, I have not come across a reputable lender that would lend p to 100% of the Market Value of the property.

Northern Rock will do 125% of OMV on Together - main point to note is that part of the additonal secured borrowing is retained until the propsed works have been done so on completion, the borrower receives the discounted purchase price plus the first 5k of any additional secured borrowing plus any borrowing requested on the unsecured portion. The remainder is released on submission of receipts for the work carried out if the additional sum is less than 20k or a reinspection if its more.

So the OP could borrow a total of 239k and have 221k released on completion.

Whether or not you consider NR a reputable lender is another thing entirely:rolleyes:

Fairdo_2

Thanks DVM. Did not know that they would run it that way, so it shows we can all learn things as we go along. It's really useful to know that.

Fairdo_2

payless wrote:

http://forums.moneysavingexpert.com/showthread.html?t=325378

( even the text-size and font should nowbe uniform - including no bold for the part in black)

herbiesjp and payless

I have just tried to edit my signature and I cannot see anything relating to font, colour and alignment of the text. This is where I always fall down on the Techie stuff!!!

Can anyone give my guidance so that I can be a good boy now and not in breach of the rules PLEASE?