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Helping relative with Right to Buy
Cmdr_Bond
Posts: 639 Forumite
My mum qualifies for the maximum RTB discount.
Estimated value of the property is around 240k. Although it hasn't been professionally valued.
Based on this, RTB would knock that down to 160k.
She's just come into a small inheritance that would take that down again to about 100k.
She's 70. Her only income is her pension.
Because I haven't lived with her for the last 12 months (married with my own family), I'm not allowed to be on the tenancy agreement, and therefore (as I understand it) the mortgage.
Can she qualify for a mortgage? And if she can, would I be able to help her pay it?
If not, what other options are open.
Estimated value of the property is around 240k. Although it hasn't been professionally valued.
Based on this, RTB would knock that down to 160k.
She's just come into a small inheritance that would take that down again to about 100k.
She's 70. Her only income is her pension.
Because I haven't lived with her for the last 12 months (married with my own family), I'm not allowed to be on the tenancy agreement, and therefore (as I understand it) the mortgage.
Can she qualify for a mortgage? And if she can, would I be able to help her pay it?
If not, what other options are open.
Not as green as I am cabbage looking
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Comments
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A 100k mortgage on pension income is going to be difficult. Unless you can gift her 100k it is unlikely to very far...
She has a secure home, with free repairs. At her age there is no benefit to purchasing the property and taking on that responsibility and expense, when she is clearly on limited funds.0 -
so she needs a £100K mortgage at age 70 based on state pension?
I doubt she'll get a mortgage.
Can you gift or loan her the £100K so that she can buy with cash?0 -
Well I've got no savings.
So it would depend if my wife world be willing to mortgage our house! (Can't see that happening as she doesn't get on with my mum) or if potentially my in-laws could help (I'm not sure of their financial situation and am loathed to ask.Not as green as I am cabbage looking0 -
Why does everyone loath you? What have you done to everyone in your family!!!!????Well I've got no savings.
So it would depend if my wife world be willing to mortgage our house! (Can't see that happening as she doesn't get on with my mum) or if potentially my in-laws could help (I'm not sure of their financial situation and am loathed to all.0 -
What is the benefit to your mum in buying the place at the age of 70? How much is the rent costing her after benefits? Is it worth losing free maintenance, no risk of needing to pay for major works?0
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Tell her to enjoy her inheritance! No benefit to her buying the house.0
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She's just come into a small inheritance
She's 70. Her only income is her pension.
Wouldn't her life be better if she stayed as a tenant and enjoyed having the extra money to make life more comfortable/fun/interesting?
The only person that would benefit from buying the property would be you through an inheritance - although it could all go on residential care if your Mum needed that.0 -
I'm in agreement with the opinion that she's probably better off remaining a tenant.
Yes, there is some appeal of a possible inheritance, however, there's a lot of stress involved going down that road, and I'm not sure I want that.
She's going to lose most, if not all of her housing benefit due to being over the savings cap.
She doesn't want to lose that, but she needs to learn that now she has savings it's not fair to those in need. But she seems to think the world should revolve around her.
Anyway, I was just looking at options.
But barking the option of finding all the cash, or mortgaging our own home, it's obviously not possible.Not as green as I am cabbage looking0 -
As above; you might gift 100k in the hopes of inheriting the house and making some money, but residential care could easily strip the lot.0
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