Right to buy small flat in a bad area?

Argghhh

wouldnt buy this property even with your money

all i see are problems, big bills potentially and bad tenants

sniggings

have to done the maths?

what is the housing benefit level in the area, likely costs for upkeep?

the council can ill you if they decide to do up the place, fix roof etc and it can e very expensive.

I would only buy if you could sell straight away...far to many unknows to put all your saving into.

martindow

AlexLK wrote: »

What prices are similar properties going for at auction? If it's circa £60,000, buy the property and take it to auction ASAP.

I think the OP will have to return the RTB discount if they do this. There are limitations on retaining the discount if the buyer sells within a certain number of years

AlexLK

Sorry, I didn't know that would be the case, thank you for the clarification. Do the council only let tenants buy their properties if they intend to live in them?

Pixie5740

AlexLK wrote: »

Sorry, I didn't know that would be the case, thank you for the clarification. Do the council only let tenants buy their properties if they intend to live in them?

If a council tenant exercises the right to buy and then sells the property within a certain time frame then the tenant has to repay some or all of the discount. However, the council can't stop the former tenant from letting out the property once they've bought it. If the former council tenant needed a mortgage to buy the property then letting out the property is likely to be against the terms of the mortgage.

AlexLK

Surely if the tenant intended to let the property out he'd get a BTL mortgage?

Pixie5740

I don't think you can get BTL mortgages that are also RTB mortgages but I could be wrong.

AlexLK

I hadn't realised you needed a specific mortgage product to buy such a property. Think I'll stay out of this one now.

theartfullodger

hardnutman wrote: »

....
Fast forward to now and I have just gained the right to buy my flat at a 50% discount.

The flat is worth about £60,000 and I have just under £30,000 in savings......

From the taxpayer's viewpoint this is bonkers: We know however why England won't do what Scotland has done, with is bring in legislation banning R2B (think votes...)

carefullycautious

Is there any way you could exchange to a better area to a flat in a smaller block?


As the above have said you cannot let the property out on a residential mortgage. Plus if you wanted or needed to sell quickly you will have to pay back the discount.


I think the cut off point is five years before you can move.


If there are any proposed works to be done to your block you will need a deep pocket of spare cash available be very careful.