Can I rent out my Right to Buy House

silvercar

A problem may be that the RTB property will have a clause in the purchase contract & registered on the deeds that the discount needs to be repaid if the home is sold within 3 years. This means that any lender will want to know that there is sufficient equity in the property to cover the loan and the discount.

RabbitMad

JasonLVC wrote: »

Your bigger issue is obtaining two mortgages. You would need to convert your current right to buy mortgage into a buy to let mortgage ...

Actually you just need to get your mortgage company to agree to you letting it out. They might charge a fee for giving permission. If they don't then you'll need to look into Buy to let mortgages.

Agree that getting a second mortgage might be quite difficult unless your planning to rent somewhere bigger yourself and not buy.

silvercar

The BTL mortgage will be based on the potential rental income (but see my comment in post #12 about a possible loan restriction), the mortgage for your new home will be based on income.

mrt04

Thanks people for the advice

At the min my mortgage company refused my consent to let on this house but said if i get a buy to let mortage this will be fine, at the min I owe 67grand ( which will be ported to my new house with a bit extra on top to puchase the house which will make me mortgage free on this house) and its valued at 92500 so they happy with the capital in my house and they only want a rental return of 330pm and im going to get 440pm which is good. in regard to my new house my mortage company were prepared to give me the required amount to puchase the house as my rental house quite easily covers the mortgage payments so they called it "self Efficient" as you can prob tell i aint no expert and any advice will be appreciated greatly

tr3mor

mrt04 wrote: »

i dont fancy selling back to the council as i stand to lose alot of money as i currently have about 45 grand capital in the house. i want to keep it till the discount repayment period is over then possible sell, Thanks again

That's why Dolce Vita hopes not!

You're profiteering from tax payers money! :mad:

Melissa177

Whilst this isn't against the law, this is somewhat against the spirit of RTB rules, don't you think?

mrt04

tr3mor wrote: »

That's why Dolce Vita hopes not!

You're profiteering from tax payers money! :mad:

Thats totally untrue tr3mor

As a tax payer since the age of 17 and worked full time paying all tax and not once claimed any sort of benefits from the government and also renting the property from the local council for 3 years prior to buying do you still think that im profitting from tax payers money, in my eyes as was in the right place at the right time and the house market rising why shouldnt i take this opportunity to furthur myself in the property game

mrt04

Melissa177 wrote: »

Whilst this isn't against the law, this is somewhat against the spirit of RTB rules, don't you think?

I agree with your comment but at the time of purchase my family was not expanding and now with a little one on the way i need somewhere bigger to raise my family. many people prob think im a jobless lay about scrounging of the benefit system which im not, im merely trying to give my family the best upbringing i can

Toto

I think it's a shame that you can clearly afford to buy your bigger house, but you bought the council house. Of course this means you will have 2 houses while someone else is stuck in a B&B with kids and no chance of buying their own place. I think that's what people mean by not in the spirit of RTB.

dmg24

mrt04 wrote: »

Thats totally untrue tr3mor

As a tax payer since the age of 17 and worked full time paying all tax and not once claimed any sort of benefits from the government and also renting the property from the local council for 3 years prior to buying do you still think that im profitting from tax payers money, in my eyes as was in the right place at the right time and the house market rising why shouldnt i take this opportunity to furthur myself in the property game

In renting a council property, you were paying a subsidised rent. Where do you think that the subsidy came from?

I agree with your comment but at the time of purchase my family was not expanding and now with a little one on the way i need somewhere bigger to raise my family. many people prob think im a jobless lay about scrounging of the benefit system which im not, im merely trying to give my family the best upbringing i can

No one suggested that you are a 'jobless lay about'.