Right to buy pros and cons

GMS

maya40 wrote: »

I tried but no one wants here that's the trouble it's on an estate

Does that not ring alarm bells for your proposition as a landlord? The type of tenants you are likely to attract could well be troublesome.

maya40

Yes and no my block is ok it's some of the others but it is just mainly loud noise from kids rather than crime but i dont think i would buy to let after considering the pros and cons of buying to let i think i would be better off buying and selling in 6 years

kingstreet

In a 16 flat block, your contribution would be in proportion, so 1/16 of the cost of any works.

sandwich_man_dan

Maya40

I am in a similar situation - I want to exercise the RTB because it will give me security - but I also want to leave my area.

I have had my flat valued and the District Valuer gave a quote for the value for the property and a breakdown of Major Costs over the next five years. These costs equal about £190 per month over the initial five year period although all of these costs fall in the 4th year. My Council will give a loan for repairs that cost between £1,500 and £20,000. I think that under the RTB the Council has to supply you with these details but the only way to be sure is to ask the Council to value the property.

I'm not sure about the discount percentage - rough guidelines are on the gov.uk website under right to buy - the website is not allowing me to post a link - and it would depend on whether a maisonette is considered a flat or a house.

In terms of letting, I have been told that I have immediate rights to sub-let but again that is only something the Council can advise on and you may have to drag it out of them.

I'm 12 months in the process (I appealed on the price and it was reduced by about 8% so it's worth it), but still have quite a lot of things I'd like to know. The procedures are very cumbersome and so you should kick off the process asap - as by the time you are looking at mortgages, things may have changed a lot!

Good luck

Dan

PS Happy to be contradicted, but I believe you cannot buy a RTB with a BTL as strictly speaking, you will not have the right to let until you have bought the property. Therefore you will have to get a residential mortgage and then consent to let or a BTL mortgage afterwards.

emran2486

hi maya
I would say buy the property under RTB, I applied for RTB on a house and was complited on the Nov 2011.
I would say buy it as first time buyer and after 5 years you can sell the property with out giving any percentage back to the council.

My property at the current market was 160K and I got the property for 93K.
With the discount you receive it depends on the property price, you might not be eligible for full 75K discount. Apply for the RTB, you wont get charged for it. If you dont feel like buying the flat you dont have to. Check what price they offer you to buy the property.

michaels

As stated above the Council should list and planned maintenance costs over the first 5 years but obviously there can be unplanned works too.

If works are due in the near term future it may well be best waiting till after they are complete before exercising your RTB.

As Kingstreet says when looking for a mortgage if you are intending to rent then choose a lender/rate who is known to do consent to let without hiking the rate too much.