Active discussions

Meet the Other Phone. A phone that grows with your child.

Meet the Other Phone.
A phone that grows with your child.

Buy now

Please or to access all these features

Talk
AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

Buy Property or Remain on Housing List?!

109 replies

PurpleRayne89 · 23/10/2023 08:34

My uncle is moving back home. His property is worth £400k but said he’d sell it to me for £230k as long as he can remain in the property until he leaves which is around 10+ years. He said he’ll pay the mortgage until that time. He will also put down the deposit for me and my aunt will be a guarantor.

I’m living with my 2 children in a single room as we can’t afford to move. I’m on the housing list and bid each week. If I have a house in my name, I’ll be removed from the register. Then I’ll be stuck in this room. If I didn’t take the offer, I may not have another chance to own a home / have an asset. Can I have some advice please?

Background. We ended up in this room at a relatives house because I lost my job during COVID which was well paid. I’m working full time now but don’t earn enough. My ex husband pays child maintenance each month around £750.

OP posts:
AfterWeights · 23/10/2023 08:36

This makes no sense. Where are you going to get the money from to buy it? No bank will give you a mortgage and your uncle won't be able to take one out on the property unless he owns it.

Miekle · 23/10/2023 08:38

So your uncle wants to sell you his house, but he will pay your deposit to buy it off him, then he'll live in it for another ten years and pay the mortgage during this time? If I have that right, what's the point in him selling it to you now? Why can't he sell it to you in ten years and in the meantime you keep trying to get a HA house?

The other thing you haven't mentioned is who pays for maintenance on this house during the ten years?

Original poster
PurpleRayne89 · 23/10/2023 08:39

I meet the threshold for the mortgage for that amount. However, I realistically can’t afford the repayments. Which is why he’s remain in the home to pay the mortgage. He’s essentially be renting from me. Then when he moves, I’d continue to rent it out.

OP posts:
WrongSwanson · 23/10/2023 08:39

This doesn't make sense at all.

If you can afford to buy just buy. If you can't afford to buy this sounds like a dodgy deal to benefit your uncle? It's very odd and I'd be worried about things going wrong if you fell out or he decided to stay longer.

WrongSwanson · 23/10/2023 08:40

PurpleRayne89 · 23/10/2023 08:39

I meet the threshold for the mortgage for that amount. However, I realistically can’t afford the repayments. Which is why he’s remain in the home to pay the mortgage. He’s essentially be renting from me. Then when he moves, I’d continue to rent it out.

If you meet the threshold for a mortgage then you could private rent more than just a bedroom surely?

Catza · 23/10/2023 08:41

Do you currently live in your uncle’s house? If so, is there room for all of you? You can’t live for 10 years in one room. Other than that, I would be inclined to play a long game - 10 years rent-free plus a generous contribution from your family sounds like a great deal, you can overpay on the mortgage from your own earnings and end up mortgage-free by then too. Just make sure this is all documented and get some legal advice.

Ginmonkeyagain · 23/10/2023 08:42

If you have a high enough income to be eligible for a £230k mortgage, then what the hell are you doing renting a single room?

AbbeyGailsParty · 23/10/2023 08:42

Theres also the issue of stamp duty. Payable on a house sold for£400k, not applicable sold at £230k. Questions are always asked when you buy a house from a relative, this would look dodgy so a valuation would be requested. Edit: if you’re a first time buyer stamp duty not applicable but you’d still get asked questions re the difference in value and purchase price.

You don’t know what will happen over the next 10 years, that’s a long time. You’d be liable for property repairs/ maintenance.

Gloriousgardener11 · 23/10/2023 08:44

There are an awful lot of ‘ifs’ and ‘buts’ going on here.
You would need to see a solicitor first to sort out the logistics of all this.
A lot can happen in ten years, what if he dies ?
Meanwhile you might get a well paid job and your situation could change.
Personally I’d keep bidding for a rental.

BouncyBallBall · 23/10/2023 08:44

You cant get guarantor mortgages any longer in reality.
Child maintenance isn't included and you have 2 children which reduces the amount that you can borrow
To get a mortgage of £230K (less a deposit) you must be earning close to £50K- are you?

You are liable for stamp duty on the full £400k and not the reduced price. Have you factored that in?

Soontobe60 · 23/10/2023 08:46

How old is your uncle?

Russoooooo · 23/10/2023 08:47

This doesn’t make much sense. I don’t understand how you’d be eligible for social housing, yet meet the affordability criteria for a £230k mortgage.

loseweightpleasegod · 23/10/2023 08:48

Are you all going to live in the house with your Uncle for 10 years?

pinkdelight · 23/10/2023 08:50

I don't think anyone (including me) has understood the exact situation and the deal and how it will work. But in essence as to your question, if it's cast iron no strings attached he's putting the mortgage in your name and paying for it for 10 years then going and you get the house then yes that's a good deal. However it's unlikely that there's no strings and it's hard to live with people so it's daunting to think of a decade all together not getting on each others nerves or having a big blow up. Plus you (or your uncle) could meet a partner in that time or get sick or any number of things could screw it up. If this is him being kind and wanting to help you get out of the single room, he could just rent some rooms to you for now and see how it goes. Don't go for the full deal so you can stay on the list and also test out whether that house set up makes sense for you. I suspect it might not in the end but it's good to get out of your one room. Presuming it's in London if that's all you can afford on an okay combo of salary and maintenance.

TallulahBetty · 23/10/2023 08:51

Russoooooo · 23/10/2023 08:47

This doesn’t make much sense. I don’t understand how you’d be eligible for social housing, yet meet the affordability criteria for a £230k mortgage.

Anyone can technically get on the list for SH.

pinkdelight · 23/10/2023 08:53

Although praps you're staying in the one room to keep you high on the list? But how long is the list and your wait likely to be? There's a lot of factors that will affect the decision, not least how well you get on with this uncle and how likely he is to see it all through without a catch.

Whaleandsnail6 · 23/10/2023 08:56

Im confused. Is it that:

You, your kids and uncle will all live together in the house for the next 10 years?

Or

He sells you the house now but you cant live there for 10 years until he moves out?

Or neither of those things?

TicTacNicNak · 23/10/2023 08:59

I'm taking from this that you won't be living in the house until your uncle and aunt die, is that correct? How old are they? They could live for years yet.

Why don't they just leave it to you in their will when they die?

For me there would be too many risks. What if uncle stops paying the mortgage? Who would be responsible for repairs? If you own it you're responsible for insuring the property. What if one of them needs a care home in later years? Would this be classed as deprivation of assets?

Original poster
PurpleRayne89 · 23/10/2023 08:59

My uncle is 72. He will live in the house and we will remain where we are which is with parents in my old room. We don’t have the capacity to meet a mortgage requirement for £230k but he said he’ll make it work! We get on fine I guess but he did mention having some issues with his mortgage company in the past. Do you think he’s trying to scam me? I’d be very disappointed if he were.

OP posts:
Whinge · 23/10/2023 09:02

He will live in the house and we will remain where we are which is with parents in my old room.

So he expects you to pay the mortgage on a property you won't even be able to live in?

Why can't you move in?

AfterWeights · 23/10/2023 09:04

Most of your maths doesn't work.

If you don't think you can afford repayments why would a bank? A bank will exclude child maintenance, will reduce what they lend because you have kids, and stress test your ability to pay. They will not take into account your uncle offering to pay the mortgage.

If you earn enough to get a mortgage to buy a property at 200k+, given banks will probably only lend about 4 x income max at current rates, you are unlikely to ever get council/social housing and should leave it for the people who need it more.

BouncyBallBall · 23/10/2023 09:05

PurpleRayne89 · 23/10/2023 08:59

My uncle is 72. He will live in the house and we will remain where we are which is with parents in my old room. We don’t have the capacity to meet a mortgage requirement for £230k but he said he’ll make it work! We get on fine I guess but he did mention having some issues with his mortgage company in the past. Do you think he’s trying to scam me? I’d be very disappointed if he were.

Then

  1. You will be a landlord and the amount he pays for the mortgage will be taxable
  2. you will have to do all ga checks, maintain the property
  3. After they move out you will be liable for capital gains tax on the difference between £230k and the price it it worth them when you sell. Given you say it is worth £400k already that is a massive bill before you start !
AfterWeights · 23/10/2023 09:07

Your uncle is deluded and yes probably trying to scam you.

Also if you are not living in the house, if you come to sell it in 10 years time you will be taxed on any gain you make.

You'll also be taxed on what your uncle pays you for the mortgage as its rental income.

MinnieL · 23/10/2023 09:09

This does not sound like a good idea at all

pinksavannah · 23/10/2023 09:12

How has he got a mortgage at 72?

Both my past and present mortgage companies wouldn't let me take mine past national retirement age

Could be why he wants you to put it in your name ??

Swipe left for the next trending thread