Right to Buy - £80K property, 50% discount

Jack19901 · 30 April 2019 at 5:09PM

Hi there,

I got an offer to buy the council flat I live in.

It's worth £80K and I get 50% discount, so I have to pay £40K.

I tried to get a mortgage, and I had a decision in principle, but the flat I live in, didn't meet the banks criteria for a mortgage, so they refused it in the end.

So my brothers are trying to help me buy it.

I got 40% of the money. I'm borrowing 60% from my 2 brothers - they are helping me out without conditions.

My questions are:

1- Will it be a problem if I borrow most of the amount required? It's all legit money. My brothers have been working and saving for many years.

2- If I do purchase the flat, is it likely that the council will refuse to buy it back in future?

3- Are there different criteria for 'borrowing' and 'gifting'?

Caz3121 · 30 April 2019 at 5:18PM

previous thread https://forums.moneysavingexpert.com/discussion/comment/74618250#Comment_74618250
the solicitors will perform money laundering checks re the source of the funds.

edrushuk · 2 May 2019 at 10:36AM

Did you go through a mortgage broker like L&C? When I was going to buy my council flat only 2 banks would give me a mortgage. Do you know why it did not meet the banks criteria? Was it do with the building construction?

silvercar · 2 May 2019 at 10:41AM

Think carefully about the difficulties you may face selling. If you can't get a mortgage then your potential buyers could also face difficulties and they may not have brothers happy to help out - particularly when they are not buying at half market value.