RTB Question

kayfaz

Before I ask, I do not have a RTB property and this is more of a curiosity question.

If someone bought a property from the council with the right to buy scheme, can they let it out as long as they have consent from their mortgage lender? I know they can't sell it within 5years without losing the discount, but not sure what the deal is with letting it out.

Mortgage_Mark_2

Ask the LA, I suspect it would be prohibited though.

konark

There's nothing to stop you from renting it out if the mortgage provider is ok with it, as long as you don't sell it. Even under RTB the house is yours to do as you want with, the council no longer owns it so what you do with it is no business of the council's, subject to a few covenants usually about sheds and fences,which will be on the title deeds, none of which relate to renting it out.

p1nky

Sometimes you can also get special permission too. A neighbour had to move away for a job but was before the period where she could sell the house without having to repay discount. Council and mortgage lender agreed to let her rent it as her plan is to move back once job finishes.

Mortgage_Mark_2

There won't be any lending options for a BTL mortgage for RTB so you'd have to chance your arm that you asked for consent to let after 6+ months and that they said yes...

Mokka

The only permission needed is from the lender, although regarding renting out/notifying the landlord you should check the lease. Any clauses forbidding subletting are unlawful though and could be challenged.

I haven't heard about BTL mortgages for RTB.