Shared Ownership Flat as a BTL?

[Deleted User]

Let me get this right, housing set aside for people who have trouble getting on the ladder as first time buyers, one of the reasons being people buying-to-let small properties, and you want to buy them to let them out?

You obviously haven't got a clue about the plight of young people in this country against the overpriced housing market

lynzpower

Basially, balsingh wants to have a property btl. He is trying seemingly every angle.

Personally, I think the SO is a step too far in considerations. SO is for people, like RIngo says who cant get on the ladder any other way, and by BTLing one ( which thankfully isnt going to happen IMHO) taking the opportunity of young people as Ringo says.

However, Balsingh seems to me to be someone who is not Au fait with BTL enough, and yes, he is asking questions, which should always be commended.

balsingh

I was just enquiring based on all available options .... you have to keep your options open. As most have said, its unlikely that I woudl be able to rent a shared ownership flat anyway. At least I know now .... anyway, even if I was allowed to rent it out, with the cost of the mortgage + the rent to the housing assoc, I would need to get some silly amount of rent to make sure my backs covered .... TOOOO RISKY!!!

Paul_the_Painter

Have to disagree with you balsingh (good grief I am making a habit of this!)

Take my situation £150,000 2 bed house, I own 30% (outright) but in theory £190 per month mortgage on my chunk, the Rent on the other 70% is about £120 per month. It costs me less to rent 70% than the mortgage payments on 30%.

Saying that it would in my mind be immoral to by a Shared Ownershio property as a BTL, even if you could find one with unrestrictive terms like mine

kit

I used to work as a housing office for a HA and I managed a lot of shared ownership properties.

We did allow them to be rented out but with restrictions - bascially you were not allowed to make a profit from doing it. We would say that they could rent it out for the same price as their rent and mortgage added together PLUS a maximum of 10% added on to allow for costs ie repairs. So if the rent was £250 and the mortage was £250 they could only rent it out for £550 per month even if the market rate was £700 per month.

This was to stop people buying to let or trying to rip us off.

meanmachine_2

OK, that HAS to be the most reprehensible question ever asked on this website.

People really have no shame.

By the way, to the OP, I've got this orphanage that I'm looking to offload. Got loads of brats in it at the moment, but I'm thinking of turfing them onto the streets and turning the place into luxury apartments. You interested?

Are ya?

Ker-ching!

Money money money!

balsingh

If I have offended anyone ... I apologise. As I said, I am in a research stage of getting a BTL and I am lookiong at all options to see what I can and can't do ... I didnt know the whole situation with Shared Ownerships schemes and thats the reason I asked ... and now I know the answer. I appreciate all the responses but by no means I am trying intentionally to do anythign unethical.

zag2me

I have a friend who has a shared ownership 2 bedroom flat, he rents a room in it which pays a large chunk of his monthly payment. I dont see the moral dillemma in that.

suki1964

zag2me wrote:

I have a friend who has a shared ownership 2 bedroom flat, he rents a room in it which pays a large chunk of his monthly payment. I dont see the moral dillemma in that.

Which is completely different from BTL