Buying a second home, sort of.

I stopped half-way through a blog last night because I had an epiphany. I suddenly have enough money for a downpayment on a house, and my mum is having problems with her rent. Why don’t I buy my mum’s house?

I rang Donna, who knows about all that kind of stuff as she works for a bank, and she said that my deposit, plus the discount you get for buying a council house, would get my mum a mortgage lower than she is paying now with benefits. The problem is that mum may not have any credit (that woman has never had a credit card, and only opened a bank account a few years ago) but I do. So, I can gift mum the money and she can buy the house with me as a co-signer. Donna said that she’s not sure what the regulations are for a second person co-signing on a council house buy, but to look into it.

This morning, I went into work late so I could call mum and talk to her about it. At first she was all trepidatious, ‘Oh, I don’t know. I don’t want to put you out. All that shit.’ But in the end she’s come around.

I’ve then was on the phone trying to sort out if she can buy the house, how much it would cost, the mortgage, and it looks like it’s all a go. It doesn’t look like I can be a joint applicant to buy the house, because I haven’t lived with mum for years, but I can give her the money for the mortgage and then write up an agreement that if she sells I get a certain percentage in return.

Of course this means I’ll be back to being broke, but 1) I have a steady job 2) I’ve now got equity in a house. Not that I’d ever force mum to sell her house, but if she gets to an age where she has to move because she can’t do the stairs or some such, we’ve can sell the house and use the proceeds for assisted living (because she’s not living with me).

Right, back to the kind of freeking out thing. How did I get old enough to own two homes?

Now, I need to get back to work. I’ve been packing boxes all day as Giles has this new office ready to be moved into on Monday.

PS-Dad won’t come get Katie. He said she’s grown-up and needs to sort her self out. Mum won’t make her go back to Kingston. But I as fuck don’t want her.

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4 responses to “Buying a second home, sort of.

  1. I’m not sure if you can use housing benefit to pay for a mortgage. Totally stupid rule, it may have been changed since I knew for sure, but check before you proceed! It might be different with a council house too.

    • Hi Knotrune. Sorry, I wasn’t clear with my words. You are correct, you can’t buy a council house and use the housing benefit to pay for it, although that would help more people get on the property latter. What I meant was that between the discount she’ll get because it’s a council house she’s buying and the deposit I’m giving her, the mortgage will be low enough for her to pay and not need housing benefit. Because she does work part time. The bigger problem is that I can’t put in a joint application because I haven’t been living there. Although, we’ve found a bank that will give her a mortgage, since I’m gifting the deposit. But we now have to work up a legal agreement that will state I am entitled to a portion of the house if she sells, and all of it if she dies. Not that I’m trying to be greedy or anything, but we need to make sure that we have money later if she has to sell the house after retirement.

      Thanks for pointing that out though. This is all such a rabbit’s warren of rules and paperwork.

  2. Too true, they don’t want to make things easy for us! Good luck with it all 🙂 and it’s not greedy to make sure of the legalities, it’s common sense.

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