Right to acquire with no income

Whangarei

gingercordial wrote: »

The problem is that almost all mortgage lenders require them to be the same people.

Say it was allowed and person A is on the mortgage and person B is on the deeds.

Person A stops paying the mortgage, and the bank wants to repossess. How can they when person A doesn't own it? Person B isn't part of the mortgage contract so the bank would have no right to take their house. So the bank is stuck, no more repayments and no ability to repossess to get their money back that way.

This is why mortgage lenders do not allow that.

The "joint mortgage, sole proprietor" option has been mentioned, where both A & B are on the mortgage but only B owns, so if A stops paying the bank can still repossess from B, but these are rare and there may not be a lender who does them for RTB.

Makes sense. The joint borrower sole proprietor mortgage sounds like the best option though my lack of income and credit history may still not make this possible as I assume the bank will want to look into my finances too?

tlc678910

Hi,
Why not get your job in place and established and then get a mortgage while borrowing the deposit from your sister. The house would be 100% yours with no complications. Your sister could register a charge against the property if she wanted to protect her deposit and get it back one day or just leave it and declare it an outright gift (to the mortgage company) if she is happy to gift it to you.

This also avoids potential ill feeling if you don't get a job for a while or you do get one but still can't afford to take the mortgage on. Why the rush?

Tlc

IAmWales

Not sure why you keep avoiding the obvious question, why not just wait until you are in work?

teddysmum

IAmWales wrote: »

Not sure why you keep avoiding the obvious question, why not just wait until you are in work?

A couple of posts into this thread, I too was wondering why the OP needed to buy now, at the time he can least afford to do so.


If the purchase is postponed the value of the property may rise, but also could drop. However, the discount depends on length of tenancy so is likely to increase.


Another point :right to buy or acquire depends on meeting certain criteria ,but you could have the right to acquire while the HA does not want to dispose of properties in that street/block of flats,perhaps because they are the types most needed. Right to buy or acquire does not mean that the owners have to sell.

Ozzuk

As well as paying the mortgage, will your sister also pay your bills/give you money to live until you find a job?

AdrianC

I can't help wonder if the sister's apparent philanthropy is incompatible with the daughter inheriting the property...

gettingtheresometime

Ozzuk wrote: »

As well as paying the mortgage, will your sister also pay your bills/give you money to live until you find a job?

And repairs?

paddycharlie

Also if the house is just in your name and you need to go into care when you are older the house will be sold to pay for it possibly leaving your daughter with nothing.

rtho782

Some of the issues are surmountable with a massive amount of trust, others less so.

Your sister can buy, but gets no discount and pays full market rate, and that assumes the housing association even want to sell to her, so that's out.

Your sister can gift you the whole amount to buy the house cash - your benefits will stop until you complete the purchase as suddenly you have lots of money, I guess they might then say it is deprivation of assets afterwards. But then, you have no rent to pay, so can't claim housing benefit etc.

Your sister CANNOT get a mortgage on the property (as it can't be in her name) so if she can't/won't gift you 100% of the house price, you need to get the mortgage. With no income you won't be able to get a mortgage, but let's pretend you manage to somehow. You then can't claim housing benefit (you're a homeowner not a tenant) so it's a bust.

There is no way for her to buy it with your discount and then rent it to you.

hazyjo

Property is not the only 'investment'. When you start earning, keep your secure tenancy and invest money for your daughter. If you earn enough, maybe consider buying a flat/house instead - maybe your sister can just gift you a deposit if you can earn enough to pay the mortgage (in your name).