Mortgage and below market value

intex310

I am trying to buy a flat where I've been renting since last 9 years. It is a privately owned flat in a council building. Besides few drawbacks of mould and damp I have verbally agreed with my landlord to purchase it as the location is suitable for my daughter to go to the school. We are not planning to move location for at least next 4 years. The rate which I've agreed with my landlord is 250k but surrounding flats on the market is for 340k. Bear in mind we are the first time buyers. The mortgage advisor came back to me yesterday saying there's very little possibility for BMV mortgages available for us. The flat needs complete revamp which we are ready for. What can we do? Also, I've two PCNs which I might go to court. The guys helping me with these PCNs have reiterated there will be no ramifications with my credit score as it does not involve local county courts. Please advise if you can. 

Thank you all in advance.

ACG

There are lenders who would potentially allow you to purchase bmv as there is a link but most lenders do limit it to close family relative - I once had a third cousin twice removed and we had to draw up a family tree! I am not sure that is classed as close, but we got it through. 

If you are relying solely on the discount, that might make it a little harder as some who allow reduced purchase prices also need you to put in some deposit yourself (maybe 5%). 

As for the PCNs, no idea. But obviously if you find yourself in court it might be a good idea to make payment to avoid the CCJs. They are not ideal in the run up to a mortgage application. 

intex310

Am pretty much baffled by the valuation of the property next block. One am trying to get hold of cannot be more than 270k let alone 350K considering the mould and damps. How does it gets valuation?

intex310

Hi All,

Landlord send me an offer of 260k and trying to negotiate for 250k. I am ready for 10% depo. Mortgage advisor tells me its going to be concessionary mortgage and I don't have enough lenders to choose from. Remaining lease is 84y. I don't know how much it costs to extend this lease. There's a mould and damp issue in one of the room and leakage from the roof recently discovered while installing new windows. Please advise as I have no clue what I am doing. I've been renting this place since last 9 years due to location for our daughter's school. 

MalMonroe

Hi, while you are still renting, take a look at the information about your landlord's responsibilities in the following link

- https://www.gov.uk/private-renting/repairs

Your landlord has a responsibility to ensure that the property you are paying rent for is fit to live in. You shouldn't have mould or damp or leaks. It's not healthy for you or your daughter.

Your posts are worrying, especially as you have said "Please advise as I have no clue what I am doing."

If that is the case, then my best advice at the moment would be to not rush into anything. You don't want to end up in a big financial mess if you take action now, when you don't know what you are doing, or what the consequences will be. You've been in the flat 9 years already, so you shouldn't allow yourself to be forced into any decisions.

Are you living in London? Because the price of the flat seems quite high to me if not. Also, your landlord will obviously be happy to sell the flat to you if it needs quite a bit of work doing on it, as then that will be his problem solved. 

If you feel you want to speak to somebody, and I really think you should, you could try Citizens Advice, since you have two issues to discuss. 

https://www.citizensadvice.org.uk/

Also ask them about the lease. As far as I'm aware, you will have to live there for two years before you can apply to extend. 

You could also try contacting Shelter. https://england.shelter.org.uk/get_help  - they should also be able to advise about your landlord's responsibilities at the moment. 

I wish you all the very best. These are just my own opinions and thoughts but I hope they are helpful in some way.

Snuggles

I would think twice about buying a property in a council owned block. If the council decide to carry out refurbishments, you can end up with a very large bill to pay.