Is this realistic

converted

Trying to find out if this is possible?

i have been a council tenant for 30yrs. I have a 3bed semi which i would probably get for around £30,000 value of property around £90,000. I am having to relocate down south, problem being i would have to rent private, not too happy at not having any security. If i bought my council house with a mortgage of say £30000, paying interest only would be around £140 a month. If i then got tenants in for say £450pm and then 3yrs down the line sell the house for say £90,000, then pay off capital sum. I could then use the remainder for a deposit on something down south.

does this sound like pie in the sky or is there anyway it is possible.

i have already decided i need to move. I should have no problems getting a job, even if i could not find tenents for some of the time i could cover the interest only payments for some of the time.

any advise please.

silvercar

I reckon the buying at a discount conditions stop you renting out or selling the property for a few years. I thought the largest discount allowed was less than 60k.

converted

figures are all speculative at the moment, i only thought about it tonight. i thought that with 30yrs tenancy the discount was about 70%, if i am wrong i do not think it is that far out. maybe someone can tell me?

archie9uk

If you were buying with the sole intention of letting it out and selling on for profit, you would need to get a buy-to-let mortgage. You need to know a) if you would meet the qualifying criteria for BTL and b) if there is any rule prohibiting you from buying your council house to let it out (rather than living in it yourself).

silvercar

converted wrote: »

figures are all speculative at the moment, i only thought about it tonight. i thought that with 30yrs tenancy the discount was about 70%, if i am wrong i do not think it is that far out. maybe someone can tell me?

There is a maximum amount, which I thought was about 40k but I may be wrong.

archie9uk

This looks useful: http://www.fancyamortgage.co.uk/RightToBuyMortgages/Discounts.asp

converted

My sole intention is not to let out or profit. I am relocating entirely down to family reasons, I spoke with my housing officer to ask if there was any way i could transfer in order to retain the security offerred with renting from LA, he suggested that as i still had the right to buy i could buy, and let it out until such times as i was sure that moving was the right thing to do, as if it all goes wrong i could always move back and still have my accommodation.

silvercar

archie9uk wrote: »

This looks useful: http://www.fancyamortgage.co.uk/RightToBuyMortgages/Discounts.asp

So max is 16-38k depending on area and percentage is 60% for houses and 70% for flats.

McKneff

There is no way you would get a 70% discount these days.
You need to find out before you go any furhter with any plans.

I am almost 99% sure you would not be able to rent it out, I am 100% sure that you cannot sell within a number of years or you have to give the discount back to the council.
If you are buying it for yourself to live in for a number of years then fine
but if you are buying it to make a quick buck then that is immoral to say the least.

If you plan to move out why dont you give yor council house up for one of the needy families in your area. Thats what council houses are for. And thats why they are called social housing

converted

http://www.fancyamortgage.co.uk/Righ.../Discounts.asp
That is helpful. So even with these figures would it be worth-it?

Thanks

converted

"If you plan to move out why dont you give yor council house up for one of the needy families in your area. Thats what council houses are for. And thats why they are called social housing"

My thoughts exactly, i could well afford to have bought my house a number of years ago, but have not for this reason. My reasons for thinking about it now is that i do not want to end up with no security and i do not see any other way around it.