Rtb

keith69

I will have achieved 5 year rental on local authority property within camden london nw5 next year. It is a one bedroom conversion in house and i understand that i would get a good discount i am a male aged 50 and live alone and earn circa £33,000 a year and am looking to buy this property. I may move in with my partner and would let property out
would i be able to get a buy to let morgage and if so how much deposit would i need. Property is valued at £365.000 and undersstand i would get 100 k discount but feel it would not be possible to get morgage i have no savings but do have a pensions scheme that stands already at £14 k a year.
My mother owns a 500.00 k plus property and would if needed help me with deposit through equity release which i am not happy for herto do so as this is my issue my mum has worked hard for all she has and i dont want her help

BitterAndTwisted

In order to buy it you will need a residential mortgage, not a BTL. The RTB was never devised to allow tenants to become property speculators but home-owners. If you do buy with a residential mortgage and convert later to a BTL you risk having to pay back a percentage of the discount.

I would also dispute your proposed £100k discount as its my understanding that the maximum would be £75k

lighting_up_the_chalice

London Authorities have a £100k max discount.

Werdnal

If you bought and let it, council would reclaim the discount.

BTL mortgage would require minimum 25% discount, and if its your first mortgage they will look into it thoroughly (FTB and BTL mortgage often rings alarm bells) and may refuse, especially if it transpired you were fiddling the RTB just to gain an investment property with no intention to live there.

Welcome to the forum by the way. I'm giving you the benefit of the doubt you are a genuinely naive newbie, rather than a troll looking for an argument, as this type of question comes up every now and then and general attracts very lively discussion.

Either buy it and get your partner to move in with you, or move on and give up the place to someone who needs a home.

BitterAndTwisted

What makes you think that you could afford the repayments on a £265k mortgage even if you could raise it? You have been living in this property, presumably on an "affordable rent", for the last four years but appear to have been unable to save a penny towards the deposit.

hcb42

I wouldnt think £265K could be borrowed at OPs age and on one salary, only £33K.

BitterAndTwisted

I think the OP realises that, so the only way to get his hands on this property would be for his mother to gift him the difference through equity-release, live in it for five years, move in with his g/f and then ether convert to a BTL mortgage and pay his Mum back or sell it. Meanwhile there are tens of thousands of deserving singles or families stuck on the waiting-list. Presumably the same waiting-list the OP was at the top of four years ago.

lighting_up_the_chalice

BitterAndTwisted wrote: »

I think the OP realises that, so the only way to get his hands on this property would be for his mother to gift him the difference through equity-release, live in it for five years, move in with his g/f and then ether convert to a BTL mortgage and pay his Mum back or sell it. Meanwhile there are tens of thousands of deserving singles or families stuck on the waiting-list. Presumably the same waiting-list the OP was at the top of four years ago.

I'll agree with the sentiment, but you can't blame the OP for trying to take advantage when £100k is waved in front of him.

kingstreet

Maximum residential mortgage, £165,00 over 19 years, assuming applicant does not have a heavy manual job which the lender thinks impossible beyond 65.

On BTL (which no lender will accept on RTB by the way) the maximum mortgage will be governed by the rental income.

For a BTL mortgage, if it was possible, you'll need a rent of 125% of the monthly mortgage interest, assuming 6% per annum, or thereabouts.

£265,000 x 6% /12 = £1,325 x 125% = £1,656 rent per month.

keith69

thumbs down to the trolls read my enquiry Might move in and as for quick buck i waited 26 years to get a place so keep your mean comments to your self!!!!

monty-doggy

I understand your frustration, you waited 26 years to get a place, but that doesn't give you the right to purchase housing that is funded by the taxpayer, for your own financial gain. It's not the tax payers job to provide you with a long term income. That's clearly an abuse of the system that's crippling the uk.

You simply 'waited' 26 years, for it to be handed to you on a plate.

Most people work for 25-30 years to pay their mortgages off. And they get !!!!!! all from the system that they have paid into.

I understand its a good deal for you. And for you to get an affordable home I'd recommend it. But to take affordable housing, charge a lot more for it than you are probably paying now is MORALY wrong.

That doesn't make me a troll, its just my opinion.