Right To Buy Issue.

shaytack

Hi,

I was hoping someone on here could offer some advice.

4 years ago, myself and wife applied and received a right to buy mortgage.

The house was valued at 76,000 and we received a 24,000 discount.

We have decided to separate, and she wants her share.

I knew the discount may be an issue from the off, so we agreed to change the name and for me to pay back her directly her share with payments.

However during a meeting with the mortgage advisor, they said I could borrow the money I needed on the remortage.

Based on what we had in savings I opted to borrow 15k.

She has now bought a new house and is waiting on the money from me.

Now the council has thrown the spanner in, and they are saying they do not Agree to the prosponement of discount charge.

Letter from council says "I am unable to prostpone the discount charge for the additional amount that is over and above the redemption figure for the existing mortgage as the additional borrowing is no for an approved purpose under the provisions of the Housing Act 1985"

The banks solicitor's letter says "In order for the remortgage and transfer of equity to proceed the discount charge will need to be repaid"

My question is, is this right? How much are talking?

Council wouldn't give me a ball park figure. Current valuation of house is 78k.

I couldn't make heads or tails of the housing act, and my advisor had told me this would not happen, despite my concerns.

Now I'm in a rock and a hard place, and her mortgage is near completion, we managed to get 10k for her deposit, but she needs 11,500 more, which the 15k was supposed to cover.

Help I can't sleep, what can I do, Thank you for any advice.

Senior_Paper_Monitor

The council is correct - additional borrowing is permitted only:

• To carry out work to the property or to make improvements;
• To pay a service charge (including major works and buildings insurance);
• To remortgage to change mortgage companies (no additional lending); or
• To take out a loan to repay other loans secured against the property.