Buying a council house for a relative?

[bubba28]

I am looking in to buying my grans council house for her. How do i go about it? She's phoned up and has been told that she can buy it for �26000. Can i get a morgage on it or a loan, even though she'll leagaly own the house, but will leave it to me in her will.

[CheekyChops]

I doubt it.

I don't think the council would let you buy the property, it has to be the tenant, which is your gran.

If you were to get a mortgage against the property, I'm pretty sure the property would have to be in your name - which it isn't.

And she wouldn't be able to leave the house to you in her will because you would be the owner anyway if the mortgage was in your name.

Maybe someone with more knowledge will prove me wrong.

[Postdog]

�26,000!!!

I think something must be wrong there. Nearly 20 years ago I bought my mum's council house with her (she was on the rent book, I was the one earning, and we had no problems) but we paid �29,000 and that was with her full discount. I know things have changed since and the discount is capped to a percentage or amount less than the percentage if the percentage price ended up too low.

[dolly pond]

surely thats conning the council! your nan has clearly lived there a while and you would benefit in 4 years when you could then sell it for profit! no wonder house prices keep rising"

[kitty1981]

i think it is all wrong. you are doing this so that in a few years you can get a cheap house when there are really needy people on a ridiculously long waiting list to get a council house!!!

[dolly pond]

pure greed and also the councils are stupid for selling so cheap, especially when people are out there to make money out of poor people. If i was god, i would ban anyone for making money out of property and then prices would be normal. ner

[Ric.ror]

My Mother has lived in her flat for 26 years. She/we have paid full rent in all that time and have paid far more than if she had bought a flat in the first place. Were she to buy now she would still have to make a considerable contribution to Council Funds even if she only paid �26K. So bear that in mind before you start condeming bubba28.

[bubba28]

Thanks for all your help everyone, and esp Ric.ror ! My gran has stayed in her house for 53 years. So as you say she could of bought they house twice over. Thanks again

[lorla]

My mum and Dad helped my Nan buy her council flat for �35,000 about 10-15 years ago and it's just been valued at �325,000. My Nan has passed away since and the flat was left to Mum and Dad....suddenly it seemed worth the struggle all those years ago when they were paying for our family home mortgage and trying to help her with hers.

[silverdaler]

Have u already got a mortgage bubba ? If so , you could try and remortgage the house to raise the money , then just lend it to her to buy the house with cash ! You will obviously get the money back one day, and she could pay you what she pays in rent to help with the repayments. Either that, or do the same thing with a personal loan. Bit costlier but should be ok for that amount of money, and definitely a great investment.
good luck