Advice please - Help to buy

sontoon

Hi all,


I'm hoping someone can assist.


My mum is selling her property to move closer to me. However she wants to help my sister as well.


They both currently live in an affluent area where house prices are dramatically higher than where I am, hence my mums move so she can retire.


She owns outright and looking to achieve a final sale of around 275k. She wants to give my sister 60k of this as a deposit on a property to assist her on the housing ladder.


I have looked at properties in the area my sister wants to remain in and they are pretty pricey (In comparison to where I am) a 1 bed apartment really around 150k.


I don't think my sister earns that much money I'm hazarding a guess of around 17k a year and her budget is approx. £400 pm.


Now having looked at mortgage calculators I'm not so sure she'd be able to get a mortgage with a salary like that for 90k. Therefore I have been looking at the Help to Buy scheme.


Can anyone tell me whether when you go through the shared ownership part do you have to have a mortgage?


I have found a property on the help to buy website for 40k which is a 25% share and the rent and service charge mounts to approx. £550 pm. If she used the 60k from my mum this would be a 40% share and would reduce the rent to within her budget, would that be possible?


Any advice is appreciated please

kingstreet

She would need to ask the Housing Association concerned. There is no standard answer.

Mossfarr

I think your sister needs a reality check, we all want to stay in 'affluent areas' but the reality is we can only buy or rent within our price range!
Surely it would make more sense for her to buy near where you and your Mum will be living. Not only will she have your support to hand but she won't leave herself in financial difficulties by overstretching her finances!
In my opinion shared ownership would not be her best option - it rarely is!
mossfarr