Buying a Council Flat advice please

dead_cell

Hi Folks,

I have a few questions that I hope someone here can help me with.

My parents live in a Southwark Council Flat for which they have made a request to buy and the council has accepted.

My father has made the application so it will all be under his name but I will be the one who will need to get a mortgage.

I do not currently live with them but the idea is that if I get the mortgage then I will be moving in with them.

Of course we are all going to be helping each other out and sharing the payments but the mortgage will be completely under my name whilst the property will be under my father's name.

I would have simply made the application myself so that I could have the property under my name but since I wasn't a tenant with my parents at this property, I don't believe that I'm eligible.

I think to qualify I need to have lived in the property for a minimum of 12 months.

Anyway so that's the reason why the property will be under my father's name.


What I would like to know is..
1. Will the council have any issues with me being the mortgage payer? Or will they simply not care how my father gets the money as long as they get paid?

2. Do you think my bank will have any issues with me applying for a mortgage to pay for a property which is not under my name?

If there aren't going to be any issues then my father will simply transfer the property under my name once the deal is done to make it easier going forward.

I will be calling my bank in the morning to get advice on question 2 but would really appreciate any help you guys can provide.

Many thanks in advance.

Senior_Paper_Monitor

This cannot happen.

ALL LENDERS supporting Right to Buy require that all tenants that are purchasing the property and only those tenants purchasing the property are on the mortgage.

If your father was to "simply transfer the property unfder my name once the deal is done" it would deem to be a sale of the property and 100% of the discount given would be clawed back (in year 1 or a reducing amount in the subsequent 4 years).

It is possible (but by no means certain - and not necessarily advisable) that there would be a way for your parents to buy the property in their own names BUT it is clear from your obvious lack of understanding of the basic system that you would need the assistance/guidance of a broker with experience of right to buy to investiagte this.

You will not get the level of advice you need 'at your bank' and you will probably rack up an unecessary credit search in the process.

dead_cell

Thank you SPM for your response, yes unfortunately I'm not very knowledgable with buying property and mortgages etc and have a lot to learn.

Transferring the property to my name is not so important and it can stay under my dad's name so that's not an issue.

Am I right in assuming that I'm not eligible to buy the property myself since I'm not a tenant?

Anyway around this?

What if I become a tenant and wait 12 months, would the right to buy discount still be in place then or is it only available for a limited time?

If I can, would I be able to buy the property on my own and not have my father involved at all?

Senior_Paper_Monitor

Am I right in assuming that I'm not eligible to buy the property myself since I'm not a tenant?

That is what I said in first post

Anyway around this?

Not as such - I did state there may be ways for your parents to buy (depends on total review of all parties' circumstances.

What if I become a tenant and wait 12 months, would the right to buy discount still be in place then or is it only available for a limited time?

Assuming Coucil accept this (specific rules/interpretation vary by Council - but the great majority are very strict on ensuriung primary place of residence) - Yes.

If I can, would I be able to buy the property on my own and not have my father involved at all?

Yes - provided that the 'other tenants' agree then they can waive their rights to purchase - a responsible broker, many lenders and potentially some councils will insist that the person(s) waiving their rights receive independent legal advice on such arrangements as this is a high risk action, rarely in the best interests of the individual.


I can only repeat that you - and more importantly your parents - should receive advice from an experienced and qualified broker/adviser who has experience in this field. This is far too important, complicated and high value a transaction to approach on a teach yourself basis on the internet (particularly when it is eveident - and you admit yourself - that your starting point knowledge is low).

dead_cell

Thanks again SPM for your quick response.

Looks like this is going to be quite tricky. Yes I'm getting in touch with a broker tomorrow morning to pursue this further.

Thanks once again for your help. Much appreciated.

Notmyrealname

dead_cell wrote: »

Transferring the property to my name is not so important and it can stay under my dad's name so that's not an issue.

Good luck finding a mortgage. Pretty much all mortgage companies want your name on the deeds.

st999

Don't do it

Something you should consider, is if there are still council tenants in the building, what happens when the council decides to replace the roof?

Will you be able to pay your share?

Or unsocial tenants are moved in?

I know someone who thought it would be a brilliant idea to get out of his council flat because of unsocial neighbours, buy it then sell it.

5 years later he is still there.

And he had to pay £5000 towards a new roof.

moremore

st999 wrote: »

Don't do it

Something you should consider, is if there are still council tenants in the building, what happens when the council decides to replace the roof?

Will you be able to pay your share?

Or unsocial tenants are moved in?

I know someone who thought it would be a brilliant idea to get out of his council flat because of unsocial neighbours, buy it then sell it.

5 years later he is still there.

And he had to pay £5000 towards a new roof.

All the good council homes have been sold off in the 80' and 90's what is left behind is flats that have been let go into dilapidation by the council as they have very lazy cleaners and as the other housing staff and you pay through the nose for this service as well.

If you think about it Maggie gave tenants back in 80's 75% discount and that was good then, but since then property gone up and it is still 75% tops for tenants if they have lived there for the specific length of time.

Right to Buy is not a good deal at all if it is in a block of flats and can be very expensive for tenants.

Ivana_Tinkle

st999 wrote: »

Don't do it

Something you should consider, is if there are still council tenants in the building, what happens when the council decides to replace the roof?

Will you be able to pay your share?

Or unsocial tenants are moved in?

I know someone who thought it would be a brilliant idea to get out of his council flat because of unsocial neighbours, buy it then sell it.

5 years later he is still there.

And he had to pay £5000 towards a new roof.

Absolutely true. And Southwark Council will charge you a hell of a lot more than £5k, too! You might want to do a bit of research into their astronomical service charges before you go any further with this.