Right to Buy - A Question

DeanYearsley

Hi guys,

My issue is a bit of confusing one.

The situation is this:

My dear ol' Mum is getting on in years and her health isn't particularly great (smoking), but we expect she's got a few more years in her.

She is also incredibly house proud, she lives in a 3 bedroom terraced council house, that throughout the years she's poured her soul into, she's recently had neighbour's move in, that have utterly trashed their place so much so the landlord is trying to evicting them as far as we know (it's private).

That has really put it into perspective how much the house means to us, and it would be utterly heart breaking to lose control of the house when she passes on, and then see everything she's done over the last 40+ years get destroyed.

So I really want to buy the house, the problem I have is that 2 years ago I defaulted on an account. The default has been satisfied, paid off 3 days after realising the account had defaulted.

I earn ~£63k per year + £15k - £20k bonus, and have a £10k - £15k deposit. The house is worth ~£100k so I could afford the payments, and aim for a 5 - 10 year mortgage. Though I'm still unsure of whether I'd be accepted due to the default.

With the Right to Buy scheme my Mother would be able to get a £16k discount (Max in Wales), but as I understand it the house would have to stay in her name for at least 5 years to qualify.

My Brother whom earns decent money may be willing to take out a mortgage (his rating is impeccable) in his name, pay for the house which would be in my Mothers name, while I transfer him the money to pay the actual costs.

Is this possible?
Also if my Mother passes away in under 5 years, what would happen?

My apologies for the long, and somewhat involved post, but any help would really be appreciated.

Dean

charlieismydarling

Yawn. Buy your own house on the open market and leave social housing for those that need it.

You might also want to be grateful for the benefit of secure housing that has offered her security for all those years. I speak as a social housing tenant that has also poured time and money into my property for my own benefit in the knowledge that when the time is right it will pass on to others that need it.

amnblog

Profit or sentiment - there's the quandary.


We had an enquiry from a tenant in Hertfordshire that had been offered her home (valued £300,000) for £30,000.


..and they wonder why the social housing stock has been decimated.

somethingcorporate

You should speak to a broker that's experienced with R2B.

zuluwarrior31

The only problem with using your brother is he will have needed to live with her for the last twelve months

Senior_Paper_Monitor

AS zuluwarrior indicated - to be on the section 125 offer you must be a qualifying resident (prime residence) for the last 12 months (some level of authority for the council to be flexible in this definition - but not to the extent you need).


In order to go on the mortgage any party must be on 125 offer - and any party on the offer must be on the mortgage.


You don't say whether you live there - if so, depending on the full circumstances of the default, it may be possible (but certainly not easy).


Specialist broker territory by the sound of it, as soemthingcorporate says - and even then may not be possible.

DeanYearsley

Unfortunately neither me nor my Brother live or have lived there for a few years.

If it comes down to it, I'm not overly bothered by the discount, and I'm presuming it would be possible to buy the house outright forgoing the discount.

Senior_Paper_Monitor

Totally up to the Council/Housing Association if they wish to sell off housing stock - but I think it most unlikely.

Red-Squirrel_2

Which of you will be moving into the house after your mother is gone?

Amara

amnblog wrote: »

Profit or sentiment - there's the quandary.


We had an enquiry from a tenant in Hertfordshire that had been offered her home (valued £300,000) for £30,000.


..and they wonder why the social housing stock has been decimated.

How come? The biggest discount is £77K outside London?

amnblog

There was a technical problem with how the council handled the tenant's offer so the law allowed the tenant to screw 90% discount.