Right to Buy Query

latburn

I am 51 years old and a sole carer for my 83 year old mother. I live with her in her housing association rented property and have done for years, although I am not named on the tenancy agreement. My mum has the right to buy the property, and under the rules I am able to make a joint application with her. This has been approved at the maximum discount (pre-November 2024.) As such, we only need a small mortgage of £33,000.

However, I am having difficulty obtaining a mortgage because of mum's age. The housing association have said that the mortgage needs to be in both our names, even though it would be me funding it. Most lenders have an upper age limit which my mum exceeds. I therefore have two questions:

1. I cannot find anything in law (or in fact general rules) that says the mortgage in these circumstances needs to be in both names. I understand the application for the Right to Buy itself has to be and I have no issue with that, but I cannot see the issue as long as the funding is legitimate.

2. Assuming that the mortgage does need to be in both names, is it not possible that a lender will just disregard mum for income purposes? I cannot really see the risk from their point of view as it will be me paying and it is well within my means.

Any advice would be appreciated, thanks!

lincroft1710

It is usual practice for a mortgage to be in the same names as the owners.

A good broker may be able to find a suitable mortgage.

SarahB16

Please read the many threads on here re the pros and cons of taking up your right to buy option.  The general view is that this is worth doing if you are buying a house but not if it's a mid-rise or high-rise flat due to the additional service charges you will become liable for due to being the owner.  Numerous people do not realise they are liable for all these additional costs and quite often sell their council/housing association flat back to the housing association.  

Is it a house or a flat you are hoping to buy?  

latburn

SarahB16 said:

Please read the many threads on here re the pros and cons of taking up your right to buy option.  The general view is that this is worth doing if you are buying a house but not if it's a mid-rise or high-rise flat due to the additional service charges you will become liable for due to being the owner.  Numerous people do not realise they are liable for all these additional costs and quite often sell their council/housing association flat back to the housing association.  

Is it a house or a flat you are hoping to buy?  

It's a house, and I've done my homework. It's the most considered decision I think I've ever made. Now I just need the mortgage to do it.

sheramber

All lenders have their own rules for lending.

It is usual for all owners to be on the mortgage to safeguard the lender if there was a default on the repayments. They need to be able to pursue all owners. 

A mortgage broker may be able to help  

poseidon1

latburn said:

I am 51 years old and a sole carer for my 83 year old mother. I live with her in her housing association rented property and have done for years, although I am not named on the tenancy agreement. My mum has the right to buy the property, and under the rules I am able to make a joint application with her. This has been approved at the maximum discount (pre-November 2024.) As such, we only need a small mortgage of £33,000.

However, I am having difficulty obtaining a mortgage because of mum's age. The housing association have said that the mortgage needs to be in both our names, even though it would be me funding it. Most lenders have an upper age limit which my mum exceeds. I therefore have two questions:

1. I cannot find anything in law (or in fact general rules) that says the mortgage in these circumstances needs to be in both names. I understand the application for the Right to Buy itself has to be and I have no issue with that, but I cannot see the issue as long as the funding is legitimate.

2. Assuming that the mortgage does need to be in both names, is it not possible that a lender will just disregard mum for income purposes? I cannot really see the risk from their point of view as it will be me paying and it is well within my means.

Any advice would be appreciated, thanks!

You may find the thread below of interest and my reference to Perenna a relatively new mortgage lender, with a different approach from the bog standard mainstream lenders .

 Lifetime fixed rate mortgages are one aspect of their USP, but they also seem more flexible with regard to age of their borrowers. Worth tracking down a mortgage broker who has knowledge of this lender.


https://forums.moneysavingexpert.com/discussion/6588097/buying-a-multigenerational-home-deed-and-mortgage-advice#latest