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Right to Buy - £80K property, 50% discount
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Jack19901
Posts: 3 Newbie
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'?
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'?
0
Comments
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previous thread https://forums.moneysavingexpert.com/discussion/comment/74618250#Comment_74618250
the solicitors will perform money laundering checks re the source of the funds.0 -
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?0
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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.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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Money and family generally shouldn't mix and one or all of you may be affected if you have disagreements or life circumstances change
https://forums.moneysavingexpert.com/discussion/5932721
https://forums.moneysavingexpert.com/discussion/5946603
https://forums.moneysavingexpert.com/discussion/5817694
Also owning a house is expensive, maintenance, new boilers e.t.c
https://forums.moneysavingexpert.com/discussion/5856039
https://forums.moneysavingexpert.com/discussion/5789909
If your the leaseholder your going to be at the freeholder's mercy"It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
G_M/ Bowlhead99 RIP0
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