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Help with this situation
mcgoomatt
Posts: 1 Newbie
Hi so I had heard the scheme available in NI that allowed people on universal credit to buy there house at a discounted rate, my girlfriends mother is unable to work and is on universal credits I think roughly the house is worth £40000 me and my girlfriend have discussed this previously that if we were to mortgage the house then we could rent the property to her mother at a slightly lower rate than what she is paying at the moment and allow us to save some money. However our concern was that if we were to do this would we have a major issues trying to purchase are own house? Do people think this would be a wise investment?
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Comments
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She will lose the housing benefit component of U C if she’s a homeowner so will not be able to pay rent, I suspect.2021 GC £1365.71/ £24000
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Yes, if you buy this house, you'll be able to borrow less if you then also need another mortgage for your own house.
Also, you can't normally rent a house out that you have a normal mortgage on fo a long term - you need a buy to let mortgage0 -
Where to start...? Let's just go with it being her mother who has the right to buy the house. Not your girlfriend.
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If her mother uses her right to buy and you two fund it, the house will belong to her. Not you or your girlfriend. Her mother will be able to sell it if she wants to or she could go into care and it will be sold to pay for her care.If by some miracle ,you two buy it and she signs it over to you, you won't be able to rent it to her because of usual LA rules meaning UC/HB is not available to those renting to close family members.If you buy it as BTL, you won't be able to rent it out her because mortgage lenders don't like that.Trust me, you think you're on to a winning strategy where you get a house for virtually nil, and sell it for a big profit but there are checks and balances in place legally, to prevent you doing that.Leave her house alone, it's being paid for now, the maintenance is being paid for by someone else and she is still receiving benefits. Her mother is in a great position. If you do what you propose, she won't be.Non me fac calcitrare tuum culi4
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