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 £30,000 as a final settlement. They have a morgage of £31,000. 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?