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Join our Property forum for renovation, DIY, and house selling advice.

Property/DIY

Buying sister's council house for her through Right To Buy

37 replies

00100001 · 30/12/2016 08:34

Does anyone know if you could buy a house though this scheme on behalf of a family member?

My sister lives in a council house a day would like to buy it. But wouldn't get a mortgage to cover it.

I can though. She can afford the repayments. The idea essentially is I would get the mortgage in my name a day she pays me and I pay the mortgage.

Is this possible? Morally acceptable?

OP posts:

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00100001 · 30/12/2016 08:35

a day = and

OP posts:

llhj · 30/12/2016 08:37

Very difficult to do as how would she acquire the mortgage? You wouldn't be able to.

Sofabitch · 30/12/2016 08:38

No its not possible. You have to have lived in the house for 1 year as a joint tenant to get a mortgage.

LIZS · 30/12/2016 08:39

To get a mortgage you'd have to be named on the land registry so that the lender can put a charge against it. I suspect council wouldn't agree to that as rtb applies to the tenant.

goldangel · 30/12/2016 08:39

Then that would mean you are essentially buying the property which I'm not sure would be allowed, could you be her guarantor?

PotteringAlong · 30/12/2016 08:40

So you essentially want to buy a cheap house and will own it? It's not your right to buy. I would say neither possibile nor morally acceptable.

00100001 · 30/12/2016 08:43

pottering it's not about me owning the house. Or me getting a cheap house. It's about my sister having security for her and her son. She would never be in a financial situation to get a mortgage but I am. If possible she would be the owner and I'm just the "lender" iyswim?

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00100001 · 30/12/2016 08:44

pottering it's not about me owning the house. Or me getting a cheap house. It's about my sister having security for her and her son. She would never be in a financial situation to get a mortgage but I am. If possible she would be the owner and I'm just the "lender" iyswim?

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LIZS · 30/12/2016 08:46

To do that you'd have to give/loan her the cash, perhaps by remortgaging your own house.

HeCantBeSerious · 30/12/2016 08:48

How will she fund repairs etc?

You can't do it the way you propose. The mortgage will have to be secured on a property (either yours or the RTB one). You could remortgage and gift her the money, but you couldn't legally enforce the debt if she stopped paying (as you aren't a registered financial institution).

ClarissaDarling · 30/12/2016 08:48

Is she not actually in a better financial situation as a tenant? If circa change and she ends up on benefits they will pay rent but not a mortgage?

Stylingwax · 30/12/2016 08:48

Nope you can't do that. You won't be allowed to get a mortgage on that house. Only your sister can. You could remortgage your house and give her the cash to buy it outright and then she pays you back.

HeCantBeSerious · 30/12/2016 08:49

And no. RTB isn't morally acceptable at the best of times, never mind when family members start seeing £££s.

PotteringAlong · 30/12/2016 08:50

Then either she needs to get a mortgage or you need to give her the cash and she buys it, otherwise you will own it. But you would need to go and see a financial advisor about how much you can gift someone and the implications of things like inheritance tax if you die within 7 years of gifting it to her.

BernardsarenotalwaysSaints · 30/12/2016 08:50

No, beacuse you don't live in the house. The rules are quite tight because of people trying to make a fast buck. Does she have any way of saving a deposit & you could be her guarantor? Or could you help her with money for a deposit? Also is it Council or HA? HA have right to aquire. The schemes are essentially the same but with a couple of differences, sorry I can't remember exactly what off the top of my head.

Katz · 30/12/2016 08:51

You used to be able to have a guarantor on mortgages. we looked into this when buying years ago. Not sure it still exists. The mortgage would have been mine and my husbands but because we didn't have enough income our parents were going to act as guarantors. The bank would go after them if we defaulted.

bearsnumberonefan · 30/12/2016 08:53

I think it is possible. Your sister will have to own the house (that's the deal with rtb) but there are no restrictions on how it is financed so technically you could however would a mortgage company be happy to lend you the money on a home you don't own? That I can't answer as I don't know

akkakk · 30/12/2016 08:57

get an appointment with a financial advisor - both go - explore whether you can guarantee the mortgage.. - she will need to take out the mortgage, but you would then be the person on the line if it went wrong...

not a fan of right to buy - I think it takes housing stock out of circulation from the sectors who most need it to be provided for them - if you look at London where some people are setting on million pound profits and those who are poor have no housing then it seems wrong... but it is legal and in today's society of making the most for yourself then anyone who can probably should...

Unescorted · 30/12/2016 09:00

The rules and regulations are in the Capital Funding Guide chapter 10.

rta

PuntCuffin · 30/12/2016 09:07

It always used to be possible, not sure if it still is. DH 'bought' his grandparents council house under right to buy. The mortgage was in their name and he was the guarantor as they were too old to get a mortgage. The repayments were less than the rent. DH actually paid it, not them. They lived there without paying rent and the ownership was transferred to DH after a number of years. They had a legal agreement drawn up that they could stay for life.
GPs had lived there for 50 years before he bought it, they had paid the equivalent of the value many years previously.
At the time he did it, it was the only way he could imagine ever affording his own home (long complex history of parental bankruptcy and homelessness) and he was living with his GPs in the house, didn't want to lose another home when they were gone etc.

HeCantBeSerious · 30/12/2016 09:16

would a mortgage company be happy to lend you the money on a home you don't own?
Not in a million years.

MrCreosote · 30/12/2016 09:32

Sorry but, #1. You wouldn't be able to get a mortgage, not in a million years and #2. What the f**k? If she can't pay, you would have to. Something like this can destroy your relationship with your sister. It is a minefield only a fool would enter.

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00100001 · 30/12/2016 10:29

I would happily pay the entire mortgage for her. The repayments are very affordable for us, we could overpay too, to clear it sooner. But she wouldn't accept that. So this was a possible way to have her be a homeowner and her pay for her own home.

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00100001 · 30/12/2016 10:30

Mrcreosote ^^

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Vixxfacee · 30/12/2016 10:34

Why not buy her another property and let the council property go to one of the many people waiting who do not have siblings who can put down a deposit and pay an entire mortgage for them?

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