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Renting out a Shared Equity Flat
millertime_2
Posts: 9 Forumite
hi all, after reading the lambasting some poor guy before me got for asking about shared equity, im asking my own question with some degree of trepidation!!
i own my flat, but barrats gave me 20% of the initial 115k as a loan, therefore what ever i sell this place for, i need to give barrats 20% of it.
it looks like this is going to work out well, because when i do come to sell in a few years time, barrats are taking 20% of the loss!
however my question is this...i have seen a great house for sale at a bargain price and to buy it, i need to rent my place out. i dont want to sell, as the markets not good enough yet
the question is, bearing in mind this is a shared equity home (shared equity...NOT shared ownership...) is there any reason why i cant rent it out?
do i need to get barratts permission?
i own my flat, but barrats gave me 20% of the initial 115k as a loan, therefore what ever i sell this place for, i need to give barrats 20% of it.
it looks like this is going to work out well, because when i do come to sell in a few years time, barrats are taking 20% of the loss!
however my question is this...i have seen a great house for sale at a bargain price and to buy it, i need to rent my place out. i dont want to sell, as the markets not good enough yet
the question is, bearing in mind this is a shared equity home (shared equity...NOT shared ownership...) is there any reason why i cant rent it out?
do i need to get barratts permission?
0
Comments
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What do the terms and conditions of the agreement say?Posts are not advice and must not be relied upon.0
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its not mentioned?0
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What does the lease say?Posts are not advice and must not be relied upon.0
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eh?
its not mentioned on my missives at all?0 -
Does the lease say nothing about letting the flat?Posts are not advice and must not be relied upon.0
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lease?
ive not got a lease mate, i own the flat!
just need to pay barrats back 20% when i sell!0 -
i sell this place for, i need to give barrats 20% of it.
You don't have to repay the amount you actually borrowed?
Flats are more often than not 'leasehold' - or is yours "share of freehold"/some other arrangement?.
There is a mortgage?
Have you obtained the consent to let of the mortgage lenders?
Have you obtained the consent of your insurers?0 -
millertime wrote: »lease?
ive not got a lease mate, i own the flat!
just need to pay barrats back 20% when i sell!
In England and Wales all/ almost all privately owned flats are on long leases. You are in Scotland tho I think, mentioning missives? So freehold is more common.Declutterbug-in-progress.⭐️⭐️⭐️ ⭐️⭐️0 -
We are in a similar situation - we have an equity loan on our property, which we now need to rent out as we can't sell it. We had to ask permission to rent and pay an administration fee to the company who provided the loan, as they have a financial stake in our property. We had to exactly the same with our mortgage provider. I would suggest contacting Barrats, explain your circumstances and they'll let you know what the procedure is - I can't imagine they'll say no, the better the property market is when you sell the more their 20% will be worth.0
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