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Buying A Council Flat

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JBW1366 | 18:42 Sun 01st Feb 2015 | Business & Finance
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My 85 year old mum lives in a council flat and she said to me yesterday...that I should buy it.. She has a council tenant for many years, I am buying my house at the moment though I have a very little left to pay. Could she buy it and Myself and partner get the mortgage? And my mum gets a will done to mention what is happening? Can I get another mortgage? She would be entitled to maximum discount.. Any help or ideas suggestions advice would be greatly appreciated..

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Without ploughing through all the rules and regs on Right to Buy, after purchase is completed the flat could perhaps be put into a joint tenancy with you. This could, of course, raise further problems like CGT when your mother dies and the property is sold, or if she needs a care home the flat would have to be sold and her share used to pay for that leaving you with...
19:24 Sun 01st Feb 2015
I don't think you can do it if you don't live there or haven't lived there.
https://www.gov.uk/right-to-buy-buying-your-council-home/overview
Don't know if the law is different in Scotland from England but my next door neighbour bought his mum's flat. She lived in it rent free until she died and willed it to him.
You could take out an equity release loan on your own property and gift the money to your Mother, she would then be able to buy her house and Will it to you. Of course if you died within 7 years, dependant on the size of your Estate, there may be tax to be paid.
i would have thought she would be unlikely to be able to get a mortgage at 85, and if you were to give her the money to buy it, if the market were to drop before she died, you could be in a very sticky situation - left paying a loan back with no asset to cover it. Or what if you fall out before she dies?
Without ploughing through all the rules and regs on Right to Buy, after purchase is completed the flat could perhaps be put into a joint tenancy with you. This could, of course, raise further problems like CGT when your mother dies and the property is sold, or if she needs a care home the flat would have to be sold and her share used to pay for that leaving you with only 50% to inherit.
If your mum still owned the property when she dies there could be complications if you have siblings. They will want their share of your mother's house.
you can't take out a mortgage on the flat, unless you have got, or share the right to buy as defined in my link. If you have got the cash, you can give it to your mum to do whatever she likes with, or make her a loan on the same basis but the house becomes hers absolutely and you can't make the load on condition that the house becomes yours on her death.
"There is nothing in law that specifies how a Right to Buy purchase should be financed. A family member (or someone else) could provide the funding for the purchase. However legal ownership of the property can only be in the names of the eligible tenant/s and other eligible applicants."
http://righttobuy.communities.gov.uk/do-i-have-the-right-to-buy/

This means that if your Mum needed residential care, the house could be taken into account when her finances are assessed, also if she chose to leave it elsewhere or died intestate (have you got other family?) you would have no legal argument about the ownership, although any loan amount would be taken into account.

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Buying A Council Flat

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