Refusing Right to Aquire discount

[Deleted User]

I don’t really see the issue either with simply purchasing through Right to Aquire either. If he’s really determined to pay full market price for a property then I’m sure there are plenty of others available. 

scottishblondie

I can't see why he wouldn't be able to remortgage and increase the LTV during the RTA restriction period.  I've never heard of a restriction like that, and it doesn't really make sense to me.  Who has told him that it won't be possible?

AdrianC

Somehow, I don't think the OP's going to be back.

[Deleted User]

scottishblondie said:

I can't see why he wouldn't be able to remortgage and increase the LTV during the RTA restriction period.  I've never heard of a restriction like that, and it doesn't really make sense to me.  Who has told him that it won't be possible?

It was the housing adviser who told him that he wouldn't be able to remortgage however he has been told different by the bank. He is being told different information by different advisors.

[Deleted User]

HampshireH said:

"I do not see the problem if he wants to purchase at full market value. I was just asking for advice regarding this "

Because it isnt for sale. 

The right to aquire is a benefit/privilege. Social housing isnt just available to buy on request it comes with rules ans terms and conditions which cannot be bypassed 

He will be buying the house so technically it is for sale! 

[Deleted User]

AdrianC said:

I really can't see what the issue is with "releasing equity".

Why can't he remortgage?
Even simply borrow more than he needs now, and retain his cash invested elsewhere?
How does paying more than needed for the property help him access money in two years?

Can you give us some examples of figures...?

For example...
£120k property
£60k cash, £60k mortgage.
In two years, £30k needed to extend...

Going with those figures...
£111k post-discount purchase
£30k cash, £81k mortgage
In two years, he still has his £30k cash available to him, no need to refinance.

He has been told incorrect information by the housing association, the bank has confirmed he will be able to release the equity within the RTA period. 

fairyclairethehare

If it's anything like right to buy, a deed of postponement will need to be signed by the HA as they effectively still have a charge on the property, which alongside the outstanding mortgage will take priority.
There will be an additional charge of getting the deed of postponement by the HA for your son to pay. The HA were probably being cautious as they may not be willing to sign the D of P.
With the uncertainty with the future economy he would be better off saving part of his deposit back and increasing the mortgage now if he can.

Bossypants

If he's prepared to buy at full market value, he'd be doing everyone a favour by simply buying privately. That way he gets a property with no restrictions, and the council property goes back into circulation among the people who need it. This sounds like a success story to me!

DiamondLil

Jaynie87 said:

 I do not see the problem if he wants to purchase at full market value.

There is no problem other than your son wants to purchase under the Right To Buy but wants the law changed to suit his purpose. That is the problem.

The Right To Aquire legislation is statuted in the Housing Regs and, therefore, you and your son are asking on here how to get around the law.

You will need to set up a lobby group, engage a team of lawyers and go to court to challenge said law.