Buying Mothers Council House - I live there

L333

Hi all,

Joined up to ask this as I couldn't find a similar question (everybody seems to have moved out already when they have this idea).

Basically my mother has been a council tenant for 40 years and I have lived with her all my life (I'm now 21). She mentioned to me about the right to buy scheme and turns out we could get up to a 70% deduction of the house price.

My question is how would a mortgage work? Would the house have to be in my mothers name or could it be in mine (as I do still live there).

Thanks!

Pixie5740

Are you named on the tenancy?

My understanding of RTB is that tenants can apply for RTB and that they can make joint applications with family members who have lived with them for the past 12 months. So it depends whether or not you're named on the tenancy I think.

kingstreet

Tenant can apply accompanied by family member who has resided in the property for at least twelve months, as Pixie stated.

Mortgage would have to be in joint names and this will present problems for many lenders due to term/income issues.

If your income is sufficient to make the mortgage affordable, you may be alright.

Senior Paper Monitor is a RTB specialist mortgage broker and if she sees this, she may be able to build on my slightly-outdated RTB mortgage experience.

mizrahman26

i was told that the main tenant holder needs to have the mortgage on thier name aswell to go ahaead with the purchase or else it causes issues with the lenders....... correct me if im wrong.

duchy

So is your plan to live with your Mother indefinitely ?

What happens if you meet someone you want to settle down with and want a mortgage ? You are very unlikely to get a mortgage if you are already on another.

If you sold up would there be enough equity for her to buy a home with her share ? If not she'd be in private rented and worse off than she is now as she'd have no security of tenure.

Of course she could always live with you and any future partners of yours for the rest of her life.

If you were older it might work but most 21 year olds don't know where they will be in a year let alone 10 or 25 years time - so it's very hard to know what would happen if you sold up - or worse she hated your partner so living all together wouldn't work (or they didn't want to live with the in-law) or even refused to agree to selling as she couldn't afford a comparable home out of her share of the equity (which is likely unless she is going to massively downside or move to a cheaper area.).

It's a bit like buying a house with a partner you don't see yourself spending the rest of your life with ........ What happens when you (or she) wants to live with a partner rather than you. It's like a marriage without the benefits and can get very complicated.

Your Mum is probably in her late fifties or early sixties at most (is she working to be able to be on the mortgage?)-so this arrangement could be for another thirty years or more. Would you really still want to be living with your Mum when you are fifty ?