Right To Buy - HELP!

mea3583

My friend is looking to buy his mum's council house, which get maximum RTB discount.
He has applied for a mortgage in principle through Nationwide, and has passed his credit check successfully and got a conditional offer.
It now appears from speaking to the council that to get the maximum RTB discount his mum must be a joint purchaser as she is currently the named as main tenant on the tenancy agreement.
His mother has a bad credit rating. That being the case can my friend continue to progress with the mortgage with Nationwide alone, even though his mother will have to be named on the deeds?

I'd welcome any advice here. Thank you

Ed-1

mea3583 wrote: »

My friend is looking to buy his mum's council house, which get maximum RTB discount.
He has applied for a mortgage in principle through Nationwide, and has passed his credit check successfully and got a conditional offer.
It now appears from speaking to the council that to get the maximum RTB discount his mum must be a joint purchaser as she is currently the named as main tenant on the tenancy agreement.
His mother has a bad credit rating. That being the case can my friend continue to progress with the mortgage with Nationwide alone, even though his mother will have to be named on the deeds?

I'd welcome any advice here. Thank you

Nationwide won't allow a mortgage to be secured on his mum's house without all owners being named on the mortgage. This will be the case with all lenders. I think there's only HSBC that allow a separate charge against the property which would allow you to be named on the mortgage alone while there is 2 owners but it's very much the exception and not straightforward.

Does your friend own his own house? There's nothing stopping him raising a mortgage against a separate property, using the equity in that property to release funds to gift to his mum to buy hers in cash.

Does your friend live with his mum? If not, he can't buy the council house jointly. Only his mum can.

mea3583

Thanks. He lives with his mum so can join the RTB, just concerned she would not pass a credit check although his has own come back fine.

csgohan4

buying the house means your home does not have a secure tenancy anymore. If your friend loses their job, can't pay the mortgage, repossession is a real thing, plus your friend is responsible for all repairs
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Cakeguts

His mum needs legal advice. Buying her house with a mortgage puts her at risk of homelessness which she doesn't have at the moment. This is possibly the worst thing he could do to is him mum.

His mum has bad credit if he loses his job where is she going to live? The council will not rehouse her. There are no benefits to pay a mortgage if the mortgage isn't paid the house could be repossessed and the mum become homeless.



Your friend is not a nice person to put his mum's home at risk like this. At the moment she has a home for life provided by the council. If your friend can't pay the mortgage for any reason your mother could end up in one room in a house full of strangers. I can't imagine why anyone would think that this risk is good for a parent.

Craig1981

cindy7u wrote: »

post by Cindy7u

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Norman_Castle

mea3583 wrote: »

My friend is looking to buy his mum's council house, which get maximum RTB discount.

See below..........