Right to buy/mortgage/loan help

scampitandnemo

my mum has just been offered her council house on the right to buy scheme. the house s worth £140k but she can buy it for £65k!! Fantastic opportunity, problem is, she cant afford to get a mortgage so was wondering if there was any way we could buy it for her. Mortgage companies cant help as it cant be my name on the mortgage (due to it being her right to buy). We have a mortgage on our home, we asked if we could release the money from ours but were told it would count as remortgaging and e would be charged a £3600 fee!! thought about going down the personal loan route but the interest would be ridiculous!
any advice would be most welcome!!

poppysarah

If she can't afford a mortgage then will she be able to afford repairs?

It's not just about buying the property but then looking after it.

Running_Horse

So as a family you are not willing to spend £3,600 to be given a £75,000 discount. Yeah, sounds like a terrible deal.

BitterAndTwisted

The person who the tenancy is in the name of needs to be the buyer or we'd all be buying council properties on behalf of other people and pocketing the discount.

Look into who could inherit the tenancy as this can only be transferred once, say from one spouse to the other or a parent to a named child on the tenancy.

In my opinion, for someone who is too old to raise a mortgage on a property to exchange a secure tenancy for life for the uncertainty of home-ownership and all the associated potential costs may not be the most sensible strategy. The timing of going ahead with the RTB needs to be carefully considered as well. As soon as the RTB forms are completed all repairs, maintenance and improvements could halt.

Another much more important factor is acquiring an asset which will be taken into consideration once the older relative starts to need residential care. Children and grandchildren could be at risk of inheriting nothing, so all of those mortgage payments may not be a route to getting their sweaty hands on large amounts of money upon death.

susanmarie

I was just wondering why you say she can not afford a mortgage as I assume she will be paying some sort of rent? take a look at this page: http://www.ascotmortgages.co.uk/right-to-buy-mortgages I wonder if a "joint mortgage" would be considered or if it would have to be just in your mums name?

crusty111

WARNING REGARDING THE RIGHT TO BUY

my parents raised the money for my grandmother to buy her council house under the "right to buy" scheme back in 1989.

the house was in my grandmothers name and a Trust was set up which stated that when she leaves the house, whether it be on her death, to move to another house or to a home, the funds in their entirety will go to my parents and she has no interest in the property. they also got a charge put on the property for the full amount of what they brought it for.

since my parents have passed away, all the above paperwork still exists but is now in mine and my sisters names.

my Grandmother moved to a home this year, the council carried out their financial assessment and have said that although the above paper work exists, she still has a beneficial interest in the property of 60%, the discount she was awarded in 1989. we are disputing this at the moment and have taken it to a solicitor to look over, however he is not very confident that we can argue this case as there have been just a couple of cases very similar to ours which have gone to court and have lost.

my advise to anyone who is buying a property for parents under this scheme and think that in 20, 30, 40 years time they might have a property worth a considerable amount more is, you will if you do it right. make sure that after the 5 years (time scale where the person who is a awarded the discount can keep all the discount if the house is sold) you take actions to transfer the ownership of the property. you will have to offer it back to the "landlord" first, being the council/company you brought it from, however they have advised me that this is just a legal thing and they do not as a rule buy back the property. once they have agreed they do not want to buy the property your parents can then sell it and keep the discounted rate, or transfer ownership. if they transfer ownership and then so many years down the line they too need to go into a home, they will not have the discounted interest within the property.

obviously in order to make sure your parents are secure within the property, you can agree not to be able to sell the property while they are still living there.

if the council for whatever reason say they do want to buy the property back. you can wait 10 years and then you do not have to offer it to them first, if can be sold to whoever.

sorry for the long post but after what is happening to us, i want people to be aware.

barry54321

Hi,

Help needed to find RTB mortgage.

You can skip this rant and go to the next paragraph if you like.
I got the right to buy my flat - eventually. I cleared credit check and got accepted for a mortgage. The property then got blown out by the mortgage company valuers! Unbelievably the reason given was because there is a high amount of rented accommodation in the block! Seriously, what did they expect? they were the ones offering a RTB mortgage on a local authority property. You have to tread carefully with mortgage applications, too many searches blow your credit rating. But i contacted another three major lenders who come up on searches for RTB mortgages and they all said that if their valuers came back with the same report, they wouldn't offer either. It makes a mockery of the government scheme when the very bank that we bailed out with taxpayer money won't support a government scheme.

Ok rant over, can anyone help me? I am London based and qualify for the full £100k discount, which leaves another £120k to find. I pass credit checking and can afford the repayments comfortably. The property is the problem. it is a two floor maisonette, with a similar property below us and just the roof above us. It's a low rise block, ground floor and three above. Access is via a balcony/deck and communal stair well. To the best of my knowledge there is only one other flat in private ownership.

Has anyone got a mortgage for a similar property? Anyone got any good ideas? Anyone know the email address of someone I can complain to?

Yorkie1

barry54321 wrote: »

Hi,

Help needed to find RTB mortgage.

You can skip this rant and go to the next paragraph if you like.
I got the right to buy my flat - eventually. I cleared credit check and got accepted for a mortgage. The property then got blown out by the mortgage company valuers! Unbelievably the reason given was because there is a high amount of rented accommodation in the block! Seriously, what did they expect? they were the ones offering a RTB mortgage on a local authority property. You have to tread carefully with mortgage applications, too many searches blow your credit rating. But i contacted another three major lenders who come up on searches for RTB mortgages and they all said that if their valuers came back with the same report, they wouldn't offer either. It makes a mockery of the government scheme when the very bank that we bailed out with taxpayer money won't support a government scheme.

Ok rant over, can anyone help me? I am London based and qualify for the full £100k discount, which leaves another £120k to find. I pass credit checking and can afford the repayments comfortably. The property is the problem. it is a two floor maisonette, with a similar property below us and just the roof above us. It's a low rise block, ground floor and three above. Access is via a balcony/deck and communal stair well. To the best of my knowledge there is only one other flat in private ownership.

Has anyone got a mortgage for a similar property? Anyone got any good ideas? Anyone know the email address of someone I can complain to?

You've (correctly) started your own thread to ask this question, so suggest everyone answers there rather than adding to this very old thread.