Transferring a Right-To-Buy Mortgage

nmiah

Hi,

I have purchased our council property using the Right-To-Buy scheme jointly with my mum (as she was a named tenant).

Because of her age we were given a maximum mortgage term of 18 years.

Although this is fine for now, ideally we want it to be 25-30 years so that our monthly payments will be lower.

I wanted to know if I transfer the mortgage into just my name will we have to repay all / some of the discount we received?

I know if we sold the property within 5 years then we would have to repay the discount but if it's a transfer between the two original applicants then it shouldn't trigger the discount being repaid?????

Any advice / help appreciated.

Thanks

kingstreet

Are you planning on removing her from the mortgage and the ownership of the property?

Lenders won't accept someone named on the deeds who is not party to the mortgage.

In answer to your question, only a change to another lender or an increase in the mortgage amount would see the council required to provide a deed of postponement to allow that.

A change of parties should not involve the council, IMHO, but you may wish to run it past the solicitor who will be required to carry out the transfer of equity your plan requires.

nmiah

Hi,

Yes, planning to remove her from the ownership and mortgage so the property and mortgage is in my name only.

We're staying with our current lender (Santander) and have no intention of changing lender at this moment.

So what you're saying is that it should not trigger any of the discount being repaid as it's not a sale...but just a transfer between the original applicants.

Looks like I'm going to have to consult my solicitor as she'll be carrying out the legal side of things to transfer it into my name.

Thanks