Shared Ownership Flat as a BTL?

balsingh

Is it possible to buy into a shared ownership flat and rent it out?? Been looking for a flat as a BTL and I have come across a flat where somebody owns 50% and the housing assoc. owns 50%. I have been offered the 50% share. My question is that if I buy the share, can I do what I want with it (ie. rent it out) provided I pay the housing assoc. their rent?

suki1964

No, not if buying shared with a housing !!!!!!. Shared ownerships are for ftbs, for people needing a place to live, not a scheme for people to try to make money. You can apply to sub let if you are going to be abroad or something but to buy a shared ownership it needs to be your primary home

Paul_the_Painter

What suki says is partially true, it depends very much on who owns the 50% and what terms there are in the contract.

Last year I bought a shared ownership place in Milton Keynes, if I had bought from Midsummer Housing Association (or on the secondary market but with Midsummer owning the other 1/2) I would not be able to let it out, and would have to ofer it them first if I wanted to sell.

I ended up buying a Milton Keynes Council shared ownership property on the secondary market and the lease has no restrictions on letting out, or who I can sell it to if and when I leave.

My advice is to check who owns the other 50% and check directly with them what the conditions are for resale and letting.

lynzpower

No cant be done. You have to be a) a first time buyer and b) letting out is usually against the terms of the lease.

Its more expensive to get a shared ownership property than on the open market. Most are only open to key workers.

INvestors are not permitted as this is what the scheme is designed for, proividing affordable accomodation for those that need it to live in.

balsingh

lynzpower wrote:

letting out is usually against the terms of the lease.

This is only the case with shared ownership properties as opposed to normal open market properties???

lynzpower

Yes.
Most shared ownership properties are written AGAINST subletting out as per the terms of the lease, as they are designed for people to live in not use as rental income. I was hoping to do a VSO and sublet mine to my sister, but alas no, I can only sublet once the whole property is bought outright. Which is only when the HA wants to sell you shares.

Paul_the_Painter

The only way to know is to check with the Housing Association or Council that owns the other half. Both lynzpower and myself have said totally th opposite. I know for a fact that MK Council allows sub-letting (their last newsletter told you what do if you did let it out, who to contact in the council to let them know, so they can take your new number if there is a problem - advice on making sure it is properly insured for tenants, that sort of thing). On the other hand lynzpower knows for certain her HA will not allow it.

We can only conclude that you must check with the HA or the Council concerned - not the Estate Agent, the seller, or a bloke down the pub (or on a BBS )

Balsingh a normal property you can do what you like with (except for some (very small number) of flats that prohibit renting

lynzpower - did you tell them it was a years VSO, and you were thinking of letting to your sister? The HA does have discreton to allow rentals in certain circumstances

AndrewSmith

I have dealt with dozens of Housing Associations in the past and the simple answer is no way.

It will never be allowed.

Andy

lynzpower

Paul_the_Painter wrote:

The only way to know is to check with the Housing Association or Council that owns the other half. Both lynzpower and myself have said totally th opposite. I know for a fact that MK Council allows sub-letting (their last newsletter told you what do if you did let it out, who to contact in the council to let them know, so they can take your new number if there is a problem - advice on making sure it is properly insured for tenants, that sort of thing). On the other hand lynzpower knows for certain her HA will not allow it.

We can only conclude that you must check with the HA or the Council concerned - not the Estate Agent, the seller, or a bloke down the pub (or on a BBS )

Balsingh a normal property you can do what you like with (except for some (very small number) of flats that prohibit renting

lynzpower - did you tell them it was a years VSO, and you were thinking of letting to your sister? The HA does have discreton to allow rentals in certain circumstances

Yes I did, and my solicitor put it to them during purchase. They were adamant that this was never going to be allowed. but, I could lease it back to them and they could rent it and get the income from their tenant.

suki1964

Sub letting and BTL are surely too completely different things? The HA I was with allowed sub letting for short term - ie work abroad - with permission. However that was on a DIYSO, I know they dont allow sub letting in their properties because of their obligations to other tennents. BTL means you dont ever intend to live there but to rent out to generate an income - definately not allowed.

mummytofour

Why would you wnat to buy a S/O place in the first place???