Right to Buy Questions about Mortgages

davida1992

Hi, I am currently living in a property with my mother, it is a council house in which we are looking at buying.

I am currently not on the tenancy but I have lived here for the same amount of time as my mother (over 20 years).

I am 25 now and we are looking to buy the house through Right to Buy... My mothers plans is essentially to leave the house to me.

Because my mother is the only person listed on the tenancy she has to also go on the mortgage with me. I have a good credit rating and alone I could get the monies needed for this house. The issue is my mothers circumstances, she has a bad credit history and it seems to be causing major issues for us.

My questions is basically is there any way we can go about getting a mortgage where it is only me applying under these circumstances? The tennancy is in my mums name as explained. I thought about getting me added to the tennancy also, and this way I could potentially just buy, but I believe I would have to be on the tennancy for 12 months before it could just go in my name, so that would mean we need to wait for 12 months. There is nothing dodgy about this, I am not looking to buy and sell, let it to anyone else. The idea is that we buy and the house is essentially my inheritance, I will remain here for at least 5 years... Just wondering what the best method is if any from here....

Thanks.

csgohan4

What does your mother think about this plan??


Losing a secured lifelong tenancy.....


If you can't keep up on repayments your mother also loses a place to stay.


Don't forget some of these social housing are leasehold and you will foot the bills for hefty repairs. Try 4-5 figures. Not to mention lease extensions.

ACG

You do not say what bad credit she has, but there are lenders out there who will do it jointly even with bad credit. It might be worth speaking to a broker.

Alsoh ave you thought about how it will affect you in the future?

When you want to buy your own place you will have to pay higher rate stamp duty, the mortgage payments for this property will be taken in to account as an expense. Your mothers share of the property may be taken in to account if she goes in to a care home. She also needs to check how it will affect any benefits she may be receiving.

davida1992

Thanks for the replies,

We have both lived in the house for over 20 years now, we are going to buy the house together, but essentially long term this is going to be for me and my security, I intend to remain in this house long term.

She has no problem with it being just me on the mortgage, she wants this for my security essentially.

We have been in contact with a mortgage advisor who doesn;t appear to have much confidence in the situation anymore, we are going to approach a few banks ourselves too for looking at mortgages.

Thanks.

Edi81

That’s nice that the taxpayer is giving you an inheritance!

davida1992

They're not "giving" anything.... Hence why I am looking to get a mortgage, I'm not getting anything for free... We have paid rent, council tax and everything else that goes with it for the past 20 years we have been here so nobody is giving us anything....

Caz3121

davida1992 wrote: »

Because my mother is the only person listed on the tenancy .

has the tenancy always been in the sole name of your mother, or has it been a joint tenancy at any time in the past?

Pixie5740

Your mother might not have an issue with it just being you on the mortgage but the council and lenders will have an issue with it. Your mum is the tenant therefore it is your mum who has the right to buy, not you. If you want to make use of her discount then she will need to be named on the mortgage.

Was it a mortgage advisor at a bank you approached or an independent mortgage broker, ideally one who specialises in Right to Buy?

katebl

Where's your Mum going to live if you intend to stay there long term then? And why such a disaster if you did have to wait another year after being added to the tenancy?

Beg to differ you're not being given anything, millions of people pay rent, council tax, and "everything else" and don't get given a discount of tens of thousands off an eventual purchase - I'm sure you're not attracted by that and are just really attached to this house in particular though, otherwise for "your security" you could buy a non-discounted house instead couldn't you?