House buying advice

Shamish

Hi,

We're maybe away to buy my parents neighbours house who has run into a lot of debt and can no longer afford to pay his mortage etc.

He's wanting to get a council house and has offered to sell to us before the bank possibly move in and take the house from him.

We'll be paying him for the house and will clear of his debt so he can pay off the bank.

Can anybody tell me whether it's just straight forward as going to solictors and buying and exchanging the title deeds or does he as i've heard have to list the house for sale for at least a week so others get a chance to offer?

We're in Scotland.

Thanks

Shamish

mountainofdebt

I can't see why the neighbour would have to advertise if he is the one to initiate the selling - that would be the common sense approach but when did common sense ever prevail!

The only word of caution I would throw into the mix is he is sure that the council would rehome him ?

ctabuk

A Council has no obligation to re house anybody who have 'made themselves homeless' Sorry - but those are the hard facts of reality.

Shamish

Thanks for the replys i was sure i'd read this before but must have been wrong about how you must advertise.

He would'nt be homeless straight away as he has somewhere else to live meanwhile. He has no choice but to sell of the bank will reposses it leaving him homeless anyway.

One piece of advice though we might not be able to get the mortage now we're both students but my parents are hoping to buy it they already own there home and have paid off there mortage. What they hoped to do was maybe re-mortage there house and buy this house straight out?

Is there any other ways apart from the buy to let option.

Thanks very much

Shamish

MortgageMamma

Hi Shamish

There are absolutely loads of ways you could finance this purchase, but finding the one most suited to your circumstances requires professional advice, particularly with you both being students. You need to speak to a whole of market mortgage adviser, who will assess your parents income and outgoings, and their current mortgage commitment, and see if there is a way your parents could afford this. There are lots of different elements that need to be considered such as whether this could be a guarantor mortgage, a parent and child mortgage, a buy to let mortgage or if they could buy it outright as a second home on a residential mortgage. The taxation situation on second properties also needs to be considered.

As regards to the neighbour who needs to sell - what is his/her situation? Has a suspended reposession order been granted? whats the situation with his/her lender regarding the arrears? There are often solutions to mortgage arrears situations which arn't always obvious to those unqualified. Your neightbour would be wise to speak with a professional and see if there is anyway of saving his/her home before they commit to selling it to you