Second charge mortgage question

alx3365

I bought my property under the Right to Buy scheme two years ago.

However, I would like to move to another part of the country for a work opportunity.

I currently have just over 200k equity in my RTB property.

I’m wondering if I can take out a second charge mortgage against the equity in my Right to Buy property. The property I’d be looking to buy would be around the 75k mark.

The issue I am specifically looking for advice on is whether doing so would mean repaying part of the discount I was granted by the local authority (under the Right to Buy scheme, selling the property within five years would lead to partial repayment of the discount)?

My local authority is saying that only their legal service department can respond to any such enquiries and they do not take questions from members of the public! Just from solicitors.

So before venturing further down that route, any thoughts would be greatly appreciated!

Thanks!

ACG

What will happen to the property when you move in to the new one?

alx3365

ACG wrote: »

What will happen to the property when you move in to the new one?

I would ideally like to remortgage onto a buy to let mortgage as my current mortgage product (on the Right to Buy) property is coming to an end.

ACG

You will not be allowed to let the property out, one of the terms of RTB is that the property is for you to live in, not rent out.

alx3365

apparently letting out your right to buy property is permissable.

Oddly enough that is one of the things my local authority's right to buy team were able to confirm without saying they needed to refer it to the legal team.

But even if a lender will not provide a buy to let mortgage for a RTB property, I am still inclined to pursue other options as I will need to move to another city in any event.

I may, for example, want to remortgage and add one of my family members to the mortgage/ property (which is possible under RTB rules) so that one of my family members can live in the property and manage costs. Not sure about what will/ won't work, but the key issue for now is whether a second charge mortgage will work in the first place.

If not, I'll have to rent elsewhere whether I like it or not and all these other considerations become academic.

ACG

Getting a second charge should be possible, it is the second charge with the intent to let that I think will be the issue.