Right to acquire with no income

Whangarei

Hello,

I am after some advice as to if this is even possible. I am a housing association tenant and looking to right to acquire to get on the property ladder. The only problem is I am unemployed, in receipt of benefits and have no proof of income from employment but my sister and her husband have VERY VERY generously offered to help buy the property for me until I am able to afford to continue the payments (as in when I eventually get a job).

Therefore it would be a sole tenancy (as it's just myself and my daughter) and they will handle the money side of things; the mortgage, deposit (around 45%-50%), solicitors fees etc.etc. Is this even possible? Or will it be rejected at even application stage based on the fact that I myself have no 'proper' income? My sister and brother in law earn very good money and have assets so the issue of missed payments or being able to afford it doesn't even come into question. Can we get a joint mortgage where my income (or lack of) isn't considered but theirs?

Any help appreciated!

W

Slithery

Why on earth would you want to give up a secure tenancy in your financial position?

Whangarei

Slithery wrote: »

Why on earth would you want to give up a secure tenancy in your financial position?

Not sure about your question but I am looking to get on the property ladder and leave something for my daughter in years and years to come ie a property or proceeds from the sale of a property. This is the only way I can do so as my current situation does not allow me to do so. My sister understands and is willing to help. I don't want to be a tenant paying rent forever!

HampshireH

How do you propose they buy for you.

Are they going to gift you the money or loan it?

They won't be able to buy it in their name as they don't have the right to aquire. I don't know the answer but I don't think they could get a mortgage on your acquired rights. ( I may be wrong but it sounds odd they could) How would you get a mortgage with no income?

Do You definitely has this right? It is often dependant on property type and what money was used to build in the 1st place. Not always though. http://www.gov.uk/right-to-acquire-buying-housing-association-home may help. Though I assume You already know you can.

If successful in the purchase how will you afford to insure and maintain the property?

When do you intend to begin work?

I think you would need to look at each of the above before considering it.

Mardle

Whangarei wrote: »

Not sure about your question but I am looking to get on the property ladder and leave something for my daughter in years and years to come ie a property or proceeds from the sale of a property. This is the only way I can do so as my current situation does not allow me to do so. My sister understands and is willing to help. I don't want to be a tenant paying rent forever!

But YOU wouldn't be leaving anything for your daughter. Your sister would.

What you need for your daughter is a secure roof over your head and in your current financial situation renting from a housing Association gives you that.

Whangarei

HampshireH wrote: »

How do you propose they buy for you.

Are they going to gift you the money or loan it?

They won't be able to buy it in their name as they don't have the right to aquire. I don't know the answer but I don't think they could get a mortgage on your acquired rights. ( I may be wrong but it sounds odd they could) How would you get a mortgage with no income?

Do You definitely has this right? It is often dependant on property type and what money was used to build in the 1st place. Not always though. [link removed] may help. Though I assume You already know you can.

If successful in the purchase how will you afford to insure and maintain the property?

When do you intend to begin work?

I think you would need to look at each of the above before considering it.

Hi HampshireH,

Thanks for your helpful response.

As mentioned my sister and brother law will handle all aspects of money related to the property including insurance and maintenance. The money will be gifted as opposed to loaned to me - I understand this is an unusual situation so I am extremely grateful. I have done so much for them in the past so this is their way of saying thank you and they understand that they wont be paying the mortgage forever, just until I secure my full time job and pay the mortgage repayments myself (i'm currently job hunting but haven't been successful in finding anything as yet). I definitely qualify for the right to acquire.

W

HampshireH

I'm not convinced that anyone other than you can get a mortgage on a RTA property as any discount is yours. Bit like RTB. Someone more qualified will come along and advise.

It would be like your sister buying the house and benefiting from the discount which wouldn't be right.

pinkshoes

Don't forget that in having this money gifted to you, your benefits will be stopped. (And not declaring having received such a vast sum of money would be fraud...)

How do you then intend on providing for you and your daughter? Are you able to get a job?

You need to see the NOW picture, not just what you can leave for your daughter a couple of decades later.

HampshireH

Also .... You would need to qualify for a mortgage when you have a job. This may also not be that easy. It will depend on your circumstances. Timescales. Credit history etc.

Whangarei

Mardle wrote: »

But YOU wouldn't be leaving anything for your daughter. Your sister would.

What you need for your daughter is a secure roof over your head and in your current financial situation renting from a housing Association gives you that.

I understand that but once I am earning full time salary I hope to either transfer the mortgage to my name and continue paying or just pay my sister the monthly payments instead. Either way I will be the one paying and leaving something for my daughter. My sister and brother in law start it, i'm just finishing it!

skint_chick

You can only get a mortgage in the name of the person on the right to acquire paperwork - i.e. you. You can't get a mortgage with no income. You can't add extra people who aren't on the tenancy such as your sister/brother in law. They will need the full purchase price in cash.

Unless they have this and are willing to gift it to you then it's a non starter.