From: "Miss Moneypenny" 
Newsgroups: uk.finance
Subject: Re: To buy or Not to buy - that is the question!
Date: 15 Aug 2006 15:03:47 -0700
   posting-account=_4Mr1Q0AAACcFsld0lDXMlMdxcWRmR-j


Tranny wrote:

> Miss Moneypenny wrote:
> > Good Evening all! My first time at uk.finance and I really could do
> > with some advice.
> >
> > Here is the situation. A very dear friend has been left by her husband.
> > He wants =A330,000 as a final settlement. They have a morgage of
> > =A331,000.
> > My friend desperately wants to stay put. She does not want to sell. She
> > does not have much of an income. She has asked me to purchase the house
> > and rent it back to her. However, I can only raise 70% of the market
> > value. She is happy with this as it would pay off her mortgage and her
> > husband. However, there wouldn't be much left for her. Her finances are
> > such that she could claim help with her rent. However, the questions
> > are,
> > Because she jointly owned the house, would she be disqualified from
> > Housing Benefit if she went from owner to tenant?
> > Because she has sold for less than the market value would they view
> > this as effectively making herself poorer by not selling it on the open
> > market?
> > I want to help but I would not purchase this property if she can't rent
> > it back form me.
> >
> > Also, I would require a BTL mortgage for 85% of the loan. How would a
> > mortgage company view a purchase of a property for 70% of its market
> > value? And would they have a problem with a tenant who was an exowner?
> >
> > Anybody who can through some light on the subject please?
>=20
> I'll offer 80% of the value, cash, for starters.
> Tran