Shared Equity Mortgage - Can't Rent

Rich_Grant

Hi folks,

Keeping a long story short, I may be moving abroad for work next year so want to work out what my options are regarding my house. I bought a new build back in 2012, with a shared equity agreement with the housing developers (80/20% split).

I have found out that in order to legally let out my house, I should obtain a consent to lease from my mortgage provider. I spoke to them and they said I needed to seek approval from the housing developers first, because of the shared equity scheme.

I spoke to them and was told they do not allow buyers to rent out their properties while still in the scheme. So it looks like my options are:

1. leave my house unoccupied, with me paying the mortgage/council tax etc. but getting nothing back.

2. buy the housing developers out - however, I don't have enough money lying around to do this, so how would this be possible? Could I add the extra on to my current mortgage?

3. sell the house - I'd still need to pay off the housing developer's equity (20%) of the market price.... so again, not sure if I could afford this even if I sold the house.

Are there any other options?

To give you some background, the house was purchased for £173,500 (total price).

Thanks in advance.

HappyMJ

Get someone you know to house sit. You pay them £1 a week to look after your house and in return they pay the bills on the house and look after it for you. You still have to pay the mortgage but it sorts out the gas/electricity/water and council tax.

You could ask a family member to live in as a guest and look after it for you.

I wouldn't sell but you can't rent it out either so I'd think up something else which would be acceptable.

Rich_Grant

HappyMJ wrote: »

Get someone you know to house sit. You pay them £1 a week to look after your house and in return they pay the bills on the house and look after it for you. You still have to pay the mortgage but it sorts out the gas/electricity/water and council tax.

You could ask a family member to live in as a guest and look after it for you.

I wouldn't sell but you can't rent it out either so I'd think up something else which would be acceptable.

Thanks for your advice! So basically I'm not renting it out, I'm not taking any money from them - but they are paying the bills. I think that would save a little bit (perhaps £150 per month) but the vast majority would still be paid by me.

Would it be possible to remortgage in order to get enough money to pay off the equity share I have with the building developers?

densol_2

Hi - you need to set out details

Value of house now
Amount of mortgage outstanding
Income etc