Mortgage query.

meerustar

I am asking on behalf of a friend so can only ask what I know.

My friend is disabled and has 2 daughters. He eldest daughter lives at home and is earning good money, and paying her Mum keep, but as they live in council property and her daughter is a non dependant (I think thats what they call it) she has to pay rent on her property which is £300 per month.

She takes £300 per month off her daughter for keep so in effect, not getting any keep, if you see what I mean.

Her daughter has suggested that she buys the council home they are in as they have lived there since before her daughter was born (I think about 25 years) and would get full right to buy discount. The houses in the area are roughly £60/70,000, and with the discount she would get roughly half price off.

So the question is, could the daughter get a mortgage and buy the home rather than pay keep?

What they want to do (as I understand) is the daughter gets the mortgage in her name, but she pays her Mum the keep, who pays the mortgage, so the home is the Mothers.

They have worked out that they could buy in full within 10 years, and the Mum has some savings should the daughter move out to keep up the payments, but Mum cannot get a mortgage due to her being disabled.

Also, once mortgage is paid off, can the daughter transfer it over to Mum so it's mums home.

I hope I've got that all right, but you get the basics. Any advice??

Gary123456790

Hi,

It is difficult to get a mortgage for a property where the property is not in your name, so the daughter could not have the mortgage and the mother be the owner on the deeds.

Does the mother need to buy it as she's the council tenant?

Im presuming this is why the daughter cant buy and have the mortgage.

Possibly you might be able to get a mortgage with both mother and daughter listed but mortgage company would need to be happy that daughter is the only earner, as long as the council are happy with mother and daughter both buying.

...Real answer is probably find a broker who specialises in RTB!

Gary.

kingstreet

If the daughter is resident in the property and has been for twelve months or longer, she should be able to purchase the property jointly with the mother.

The mortgage should be reasonably straightforward in joint names, as long as they are credit worthy and the affordability stacks up. Some lenders do accept disability and other benefits.

While the mortgage is in force, it's unlikely the daughter will be able to leave the mortgage/deeds as the mother is unlikely to be able to prove affordability alone.

Issues surround RTB. The maintenance and upkeep currently falls on the council. That stops when they own it. It's more difficult to get help if the daughter loses her job as SMI is harder to get than Housing Benefit.

Things to think about, but it is possible.

ACG

Kingstreet is correct. If they have lived there for long enough, they will qualify for the discount and be able to purchase the property.