Mortgage ( right to buy NIGHTMARE)

ashcarrot

yeah and the remodelling isn't really a priority unless the roofs going to fall down. Cut the amount you wanna borrow. Get in then see what you can do.

JasonLVC

Council can only sell you the property that you occupy. You could always do an exchange of your property for another one and then put a right to buy application in for that one instead straight away.

But if you want a flat with a lower value, then it will be in a worse area or condition meaning you'd still have to borrow more than the property value to 'remodel' it and still be over the loan ratios and still be back to square one.

Seen this time and again. A mortgage is a MASSIVE debt commitment for anyone. I suggest you review your numbers and maybe your expectations. Buy the house first, wait a year, pay your mortgage on time and then get a loan out for the remodelling. Did you know you can remodel your council flat anyway provided you seek permission from the landlord first and provided it is not strucutal (unlikely in a flat) they'll be okay?.

Get a loan for the remodelling and then put your right to buy in again. The valuer has to exclude any tenant improvements in their valuation so you'll not be paying twice for the remodelling and if you do all this quickly enough, property value will not go up much, if at all to be honest.

If you are dealing in the sub-prime, 125% mortgage sector you really shouldn't be buying the flat. This is MSE and sometimes council tenants get swept along by the sales pitch. They want your money, if you can't afford it now or for the next 25 years then just reconsider is all I ask. If you lose the property the council has no legal obligation to re-house you and you'll still have to repay the discount back to the council, plus the redidual of any mortgage debt not paid when the flat is resold at auction.

Just beware of everything before you buy.

Richard_Webster

As I understand it the extra over the price being loaned by the lender is going to be at risk during the discount pay back period. So if you default on the mortgage and Platinum repossess and seek to sell in the first year, suppose they find a buyer prepared to pay £85K.

The £38K discount you have is 41.91% of the Council's view of the market value so if there is a sale in the first year you have to pay back 41.91% of the price (in the second year 80% of 41.91% and so on).

So on £85K sale price in the first year the Council would be owed £35,623, but if you take that out there isn't even enough to repay that part of the mortgage that relates to the original purchase price. The law allows the lender to have the first bite as far as the £52,660 is concerned but then the Council gets the rest and the lender has to sue you (if it can find you) for the balance. So a lender that lends on a RTB more than the price is taking quite a risk and given recent issues with Northern Rock etc I wouldn't be surprised if they tightened up.