Right to Buy – equal rights for the disabled?
I am the carer for a friend who has had the right to buy confirmed on his council home, but this fell through last year because we couldn’t raise finance either in his own name or by me assisting him by having a joint mortgage or being a guarantor. He is on incapacity benefit (as was) and the council wouldn’t accept me on the mortgage as I was not on the right to buy.
Is anyone aware of how finance can be arranged?
As a last resort I am considering cashing my pension early, utilising the new rules for my 25% lump sum, which would be enough to purchase outright. This would entail getting a proper mortgage document drawn up to show intentions, so the discount is not reclaimed.
Can anyone advise, it seems the disabled are treated as second best, my friend can live with family for his support and rent out in the short term, and would keep it for 5 years ideally. For this I would expect a reasonable return.
Can anyone advise?
Many thanks
Frustrated
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Member Since January 2011 - Comments: 12196 - Articles: 1396
10:45 AM, 8th March 2015, About 11 years ago
I have to admit to being confused by your final paragraph. Why would this gentleman need to move out and live with family? Surely the purpose of right to buy is to give a person the ability to own their own home, not to create an investment for somebody else?
I don’t really understand why guaranteeing a mortgage would cause a problem for the Council either. If you wish to protect your own interests this could be done with a declaration of trust and a caution or restriction placed on the property.
If finance isn’t available conventionally then there is nothing to prevent you from providing a private mortgage in accordance with your idea of using your pension pot. Again this could be tied into you having a charge against the property and if you also want to negotiate a state in the beneficial interest of the equity this could be achieved by way of a declaration of trust.
Whatever way you go will require some specialist legal advice – please see >>> http://buytoletconveyancing.co.uk/
From what you have said I can’t see that there’s any disability discrimination going on here at all. Please consider your own motives very carefully though, i.e. are you really doing this for the gentleman that you are caring for us is this a commercial transaction? It may well be a bit of both and there’s nothing wrong with that but you do need to be clear.
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Member Since July 2013 - Comments: 561
2:17 PM, 9th March 2015, About 11 years ago
Remember there is no housing benefit for someone with a mortgage! So without paid income renting a council house is the best option for a disabled person.
Member Since July 2013 - Comments: 357
11:27 AM, 15th March 2015, About 11 years ago
Hi Ian Ringrose.
I don’t know if it is possible now or not, but you used to be able to receive housing benefit to purchase your property on the buy to let in Scotland. This was done with my mothers property. It did not cover the repayment part but did cover the interest part,
The reason I was given at the time it was cheaper for the government to do this. As often with the mortgages the payment would be less than they were paying the council the full rent.
Member Since July 2013 - Comments: 561
8:02 PM, 15th March 2015, About 11 years ago
It still does not cover the costs of repairs etc, and if I recall correctly it was limited to very few cases and only disabled people that could not rent a normal house.