Hi, Buying council property, please help

shanikang

Hi Will try and condense this

Our house has been valued at £69.000, we have a discount of
£32.000.
There are three of us buying, myself aged 59, Husband aged 55 and son who is 19 years old.

All working albeit mine is part time.

Can anyone please guide us. We are looking for a mortgage over 20 years but when I try to use the mortgage calculator's they are asking questions I don't know how to answer.

What would be our best way forward we are all first time buyers.

Thanks for looking and reading and even more thanks for helping.

ACG

20 years is pushing it. Most lenders are not happy to go beyond 70 - unless you have a decent pension or other income post 70.

Are all 3 of you on the agreement with the council and have been for 12 months? If not then i think it can only be bought in the names of whoever is on it.

How much do you all earn separately?
Do any of you receive tax credits? If so what.

[Deleted User]

Hi,

here's a link, might help.

shanikang

Hi
Yes all three of us are going on the mortgage, apparently a new government rule came out this month.
The Council say that we can use our "years" in council property and our son's "years" for mortgage.
They say that 4 people can buy.

Salary one 18.000 Husband
Salary two 14.000 Son
Salary three 5.000 Myself
Myself and Husband are looking to move in 7 years leaving Son with house and rest of mortgage.

Does all this sound viable ??

jackomdj

Just out of interest where will you move/live in seven years time?

ACG

I wasnt aware you could add someone who wasnt on the rental agreement, thanks for the info.... even we brokers can elarn something new on here

This should all be possible but i still think the term is going to be an issue. Affordability alone shouldnt be a problem even over a shorter term (in the eyes of a lender) presuming you do not have other loans HP etc to any great extent.

Your probably more than capable of doing this yourself if your happy to read up or speak to lenders about their criteria beforehand (some for example do not let more than 2 people on the mortgage, others will insist you put down a deposit on top of the equity), but any broker will be able to help you get this through without too many problems.

shanikang

We would be moving to my mother in laws bungalow.

shanikang

Thank you Frugal, link very handy,
Yes ACG we have got all the paperwork back with Son's name on. Law only just changed.

bigadaj

Not a pop at the OP, but what help is the right to buy scheme to the wire economy, populace and tax payer.

Genuine question, I just can't see it.

[Deleted User]

Hi,

bigadaj wrote: »

Not a pop at the OP, but what help is the right to buy scheme to the wire economy, populace and tax payer.

Genuine question, I just can't see it.

Maybe once they get to buy the house they will put up a wire fence. :rotfl:

dld2s

bigadaj wrote: »

Not a pop at the OP, but what help is the right to buy scheme to the wire economy, populace and tax payer.

Genuine question, I just can't see it.

This was something brought in by Thatchers Government, I think the idea was that folk would buy their council house and look after it and their area better and also to give folk a foothold to getting on the ownership ladder and be a bit more "self sufficient" I think was the buzz words at the time.

Personally I think part of their thinking was also to help break the Unions and help end strikes/long term strikes, Mortgage lenders were a good bit less lenient on missing payments and arrears than say a labour run council housing was in rent arrears when folk were on strike, which in turn made it harder for folk to go on strike, especially long term, not saying this is fact, just rightly or wrongly a view I hold