Right to buy discount + LISA - very low LTV
I have a question about LISA and right to buy mortgages. I am not sure what options will be available to me and whether I will lose out on my LISA bonus.
I have 20k (plus interest) saved in my LISA. Initially I wanted to buy a dream home but my circumstances changed and now my only option is to buy the council house I am living in, valued about 100k (might be 80k-120k). I am eligible to 40% discount.
Quick maths if lenders take discount as deposit then I have 60k and need 40k to be funded, a 40% LTV. I know most banks only offer 50%+ LTV and a few offer 40% but what it my house is actually vallued around 80k it would be like 35% LTV.
If another lender does not take discount as deposit would they value my house at purchase price (say 60k) and my deposit of 20k would be ~65-70% LTV so that would be ok but do lenders do so?
Are there any lenders for, say, 10-20% LTV I know there are specialists but would they lend for right to buy and would they lend for such a low valued property? I am still about 2 years away from buying so discount will go up and I can continue my LISA contributions as long as I do not end up losing out on it. The reason I am not in a position to buy now is that I still have outstanding debt (at no interest balance transfer deals so I am still better off paying into LISA in the meantime).
I appreciate any advice
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