LIFT Scheme Scotland Let to buy or rent.

debthelp2011

Hi.

I purchased a property 3 years ago with the help of the lift scheme in Scotland, so the Scottish Ministers have 40% in my property.

In the next couple of years I would like to move and buy a bigger home.

I would prefer to keep my current property & rent this out but I am unsure how this would work with the lift scheme.

Has anyone done this? Or know the best option.

It is only me on the title deeds of my home, nothing mentioned about Scottish Ministers.

Could I go ahead and get a concent to let?

Would I be better buying Scottish Ministers out before buying new property?

Any help or options that people have used would be much appreciated.

Thanks

mildredalien

I think you can only rent out shared ownership scheme properties under limited circumstances if you haven't bought out the entire place - like if you need to move temporarily for work or a personal issue. You need to get permission to rent out and you are unlikely to get it just to earn money. The only way around this would be to buy out the government's share.

booksurr

it seems you have not thought to read the terms and conditions which you signed when you bought ?

let me google them for you,
http://www.gov.scot/Topics/Built-Environment/Housing/BuyingSelling/lift/LIFT-Shared-Equity-Post-Sale-Question-and-Answer

oh, great, look what it says (and thank heavens it does because what you propose is morally reprehensible):

"I Want to Rent Out My Property

Q12 Can I rent out my property I purchased through shared equity?

A. Buyers are expected to occupy their home as their sole residence. However, in certain limited circumstances flexibility can be provided to temporarily let out your home. This will be for a fixed period of no longer than 12 months. You should contact your administering agent in the first instance if you want to rent out your property (see Q16).

Q13 In what circumstances may I rent out my property?

A. Each request will be considered on its own particular circumstances. Some examples might include temporarily working away from home or attempting to sell your property over a long period of time but having difficulty in doing so.

Q14 Can I purchase another property while I am the owner of a shared equity property?

A No, under the terms of the shared equity agreement that you have entered into with Scottish Ministers, if you do not reside in your shared equity home, you would be obliged to sell it.

Q15 If I want to rent my property out what action should I take?

A You should contact your administering agent in the first instance with your request and details of your estate agent or solicitor. They will then seek permission from Scottish Ministers on your behalf. If this is granted the agent will correspond with your estate agent or solicitor to obtain a letter from them on your behalf which confirms that:

• The let will be on a short assured tenancy basis
• You have been registered with your local authority as a private landlord if required or that you are exempt from registration
• Your primary mortgage lender has also given consent to the proposed letting (this is normally required as a condition of your mortgage)."

Pixie5740

You could only let the property if you could repay the LIFT scheme first. Your lender won't grant you consent to let if you don't have consent to let from the LIFT scheme which, as you intend on buying another property, you won't get.

With the changes coming in 2017 for landlords in Scotland anyone thinking of trying to let a LIFT property in the future might find themselves on a sticky wicket because the "no fault" Section 33 notice will cease to exist for the new Private Residential Tenancies meaning the landlords might not be able to end the tenancy once the 12 months is up.

The new changes are also something any current or wannabe landlord in Scotland should be investigating.