Right to buy mortgage with age concerns

xxzeezeexx

Hello. My Granddad and I have applied to buy our council flat- he is the tenant and he can share the right to buy with me.
However he is 70 years old and due to the RTB rules, any people that are on the RTB application have to be named on the mortgage. He cant not be on the RTB because he is the only tenant.
A mortgage broker has told me they specialize in RTB with situations like this and have got lenders who will ignore my Granddads age if we don't base the application on his income, only mine. However they charge a large fee which I cant afford, on top of the solicitors fees.
Does any one know of a lender that would do this or are there any other brokers that will be able to find me a lender on these terms?
Estimated purchase price £30000, est. market value £100000

GMS

How much is the 'large fee' for the broker?

What is your income?

xxzeezeexx

£695
It may not be large to many people but I still don't have that kind of money.
My income is £21000. My partner is also part of the RTB, and he earns 21000+.

Senior_Paper_Monitor

Its not clear whether that is:

1) 'fees only' (i.e independent) in which case the mortgage commission of £90 - £105 would be discounted off that in most cases

or

2) 'fee + commission' (i.e whole of market) in which case the broker the commission as well

So that makes an income to the broker of between £605 and £800.

We do 2 or 3 right to buys a week and know the market inside out ...

This will be a two form paper application (a b*ll aching job - I have three such applications to complete by Monday midday and that will probably take most of my time between now and then). Right to Buy tend to be harder work with both the clients (no disrespect meant but many of the clients have little financial documentation and their circumstances are often challenging) and the lenders, as well as extended time to completion because of the council processes.

Our fees are about half those quoted (and we keep the commission) but would I be disappointed not to have the case ? No - because it simply wouldn't be a profitable one for us when I consider the time and overhead involved. We are seriously considering a 'surcharge' for three person applications.

A 'fees free' broker is never going to contemplate accepting this case (unless they are truly desperate or mad)

holly_hobby

Is the 100k valuation accurate or a guess ?

If it were at least 125k there may be a home with a lender whom doesn't have the upper age restriction, which will be an issue in having Gdad on the mortgage (which will be necessary for any mge finance, as he is the RTB qualifier).

Other than that, you'll struggle with this unless you can redeem the mge by the time Gdad is 75 (which is the max redemption age with the majoirity of providers).

Hope this helps

Holly x

Senior_Paper_Monitor

Holly,

4 lenders immediately come to mind who will accept unlimited age on one applicant in the circumstances described (subject to income, status etc of course) and they would all accept a property valued at £100K.

I think the current broker is aware of this - he just wants a fee that the OP feels is too high (which I don't really agree with to be honest).



.... make that 5 (or possibly even 6) on afterthought !

holly_hobby

Thanks SPM .... that added info will help the OP.

Holly

xxzeezeexx

Senior_Paper_Monitor wrote: »

I think the current broker is aware of this - he just wants a fee that the OP feels is too high (which I don't really agree with to be honest).

Excuse me, its not that I think its too high, I just cant afford it!

Annisele

xxzeezeexx wrote: »

Excuse me, its not that I think its too high, I just cant afford it!

Is the problem that you don't have £695 in cash, or that you can't add it to the mortgage?

Unfortunately it's very difficult for the brokers on here to help you. They're not allowed to give advice here (both because of the board rules and because they're compliance teams would shoot them), so they can't tell you "Lender A would be right for you".

It sounds as though you *might* be able to find a broker cheaper than the one you have - but it also sounds as though you're getting a reasonably decent deal.

(The other thing is - if you can't afford £695, you're going to have a problem when your boiler dies or the roof needs maintaining).