Let to buy

Aebaa

Hi
Looking for some advice please

We own our house outright which is worth 85000 (ex council house with 2years left to pay any discount back) the rent we could generate is around 500-550 a month. We need to move into a bigger property and have been looking at let to buy, how does this work? What price house can we buy? Annual income is 31000?

Thanks in advance

ACG

I dont think you can do it until those 2 years are up. I think it would get stopped by the underwriters or solicitors if it got by the underwriters.

Cornucopia

It sounds as though you are seeking two mortgages. That's doable.

On the first property, you would apply for LTB, to raise, say, deposit funds.

Then on the second property, you'd have a normal residential mortgage.

You need to consult a broker to get access to LTB, and to get a lender's sign off of what you're proposing.

Also check whether the right to buy discount is affected by letting.

kingstreet

An LTB remortgage during pre-emption and requiring a deed of postponement from the council is likely to be a non-starter.

SPM is the resident RTB specialist though, so I'll defer to her judgment, if she sees this.

Wh05apk

I think you may get consent to let on your current property, but then you would have to obtain the deposit for the new one from your own sources.

Cornucopia

Wh05apk wrote: »

I think you may get consent to let on your current property, but then you would have to obtain the deposit for the new one from your own sources.

The current house is owned outright - and you wouldn't get CTL on a brand new mortgage.

kingstreet

FWIW it ain't owned outright if there's a second charge over it, but I see what you mean.