The UK’s Right to Buy scheme offers council tenants the chance to purchase their homes at a significant discount. However, when it comes to financing the purchase, many tenants explore the option of a joint mortgage. This is particularly common when the tenant wants to boost affordability by including someone who is not listed on the tenancy agreement. Here’s everything you need to know about securing a Right to Buy joint mortgage with a non-tenant.
The Right to Buy scheme allows eligible council and housing association tenants in England to buy their homes at a discounted rate. This initiative aims to promote homeownership among social housing tenants.
Tenants can apply individually or jointly. Joint applications can include:
Eligible family members include parents, children, siblings, grandparents, grandchildren, uncles, aunts, nephews, and nieces. Stepchildren and half-blood relatives are also eligible. However, cousins, in-laws, and unmarried partners who are not civil partners cannot join the Right to Buy application.
Contact a Right to Buy mortgage specialist to explore your options with a non-tenant joint application.
Contact us nowWhile non-tenants cannot directly join the Right to Buy application unless they meet the criteria above, they can still play a role in the financing process. Some common scenarios include:
This type of arrangement allows tenants to secure a larger loan amount while maintaining full legal ownership of the property.
If you’re considering a joint mortgage with a non-tenant, it’s essential to understand the potential implications:
Only the individuals named on the Right to Buy application can legally own the property. Non-tenants contributing to the mortgage will not have ownership unless they are included in the application.
All individuals on a joint mortgage are jointly and severally liable, meaning each party is responsible for the full mortgage amount. If one person is unable to make payments, the other party must cover the shortfall.
Life circumstances can change, and disagreements or relationship breakdowns may complicate joint mortgage arrangements. It’s crucial to have clear agreements in place from the outset.
Mortgage lenders will assess the affordability of all parties involved. A strong credit history and steady income from the non-tenant can increase the chances of approval and a better mortgage deal.
If you plan to involve a non-tenant in your mortgage, here’s how to proceed:
Navigating the complexities of a Right to Buy joint mortgage can be challenging, particularly when a non-tenant is involved. Professional advice ensures all parties understand their rights and obligations. Seek support from:
Yes, you can involve a non-tenant in the mortgage process. While they cannot be included in the Right to Buy application unless they meet specific eligibility criteria (such as being a family member who has lived in the home for 12 months), they can contribute to the mortgage as a co-borrower through a joint mortgage.
A joint borrower, sole proprietor mortgage allows a non-tenant to contribute to mortgage repayments without being listed as a legal owner of the property. This is a common arrangement for Right to Buy purchases when a non-tenant provides financial support.
You can include:
Family members include parents, children, siblings, grandparents, grandchildren, aunts, uncles, nephews, and nieces.
If your partner is your spouse or civil partner, they can be included in the Right to Buy application. If not, they must qualify as an eligible family member (e.g., having lived in the home for 12 months as their main residence).
With a joint mortgage, all parties are jointly and severally liable. This means if one borrower cannot make their payments, the other party is responsible for covering the full mortgage amount.
No, non-tenants contributing to the mortgage will not have ownership unless they are included in the Right to Buy application. The ownership is limited to those listed on the application.
The risks include:
Yes, many lenders provide joint mortgage options for Right to Buy, including those tailored for joint borrower, sole proprietor arrangements. Consulting a specialist mortgage broker can help you find the right product.
Yes, a friend or extended family member can provide financial assistance or be included as a co-borrower. However, they won’t have ownership rights unless they meet the eligibility criteria to join the Right to Buy application.
Absolutely. Professional advice from a solicitor, mortgage broker, or financial advisor can help you navigate the complexities of joint mortgages, ownership rights, and potential risks.
The Right to Buy discount is determined by your tenancy history and is not affected by the involvement of a non-tenant in the mortgage. However, only eligible applicants named on the Right to Buy application will benefit from the discount.
Yes, you can add a non-tenant as an owner after the purchase. However, you may need to pay back a portion of the Right to Buy discount if you transfer ownership within five years of purchasing the property.
