Right to buy Deed of postponement help

Lunaloveless

Hello everyone I hope this is ok to post here (newbie)

Me and my Husband are lucky enough to be buying our house with a good discount with RTB. We have our mortgage and was approved by the bank to borrow 20k more for a new bathroom toilet and kitchen. We did not know we needed permission until our Solicitor told us when we where supposed to be signing everything. We then asked for permission so they wanted quotes which we got. The thing is the Housing trust have come back and said no you cannot borrow the extra as you might sell the house within the 12 months and this was their reply:

My client has commented that this is rejected on the basis that this ‘potentially could put the discount repayment at risk if the property was sold within 12 months, also with market conditions very volatile.  We have a responsibility to protect the governments money and we would be putting this at risk if we were to agree to such a large amount.  The mortgage lender will require a deed of postponement.

We feel this is a   really poor  excuse to not let us borrow. We are good tenants and the house even though we are getting a discount is in bad repair we never had much off them and I am disabled after a bad accident and  this would have helped me so much. I rang before we got this reply and the girl said oh me and another lady decide and it is case to case...I said we are not moving we love our home and she did not budge and said she was leaving next week but gl. Any advise would be great thank you

 

BarelySentientAI

Get a deed of postponement.

It makes perfect sense that the council would want to recover the discount if you were to immediately sell.

If you don't sell, then it doesn't matter anyway.

kingstreet

It's the Council having to issue the Deed Of Postponement to permit borrowing into the discount. If you can justify it on the basis of aids and adaptations for your disability you might have a better chance of acceptance.

strawb_shortcake

We had to get a deed of postponement when we remortgaged, so I'd advise looking at a 5 year deal to avoid this again. 

Whilst you may believe you aren't going to move, circumstances change and cannot be guaranteed that the house will not be sold. The council or HA has a duty to protect tax payers money, and your additional borrowing can jeopardise the ability to repay fully the discount in the next 5 years. Its all about the charges on your home and who has a claim and in which order these are recovered. I suppose you would get around this by having an unsecured loan instead rather than the additional borrowing.

We had to pay around £150 as I remember to get the DofP agreed, but that was for the HA to sign to say the bank would be repaid first.