Selling my flat - is there any way to avoid ERC?

phemark

Hi,

I will be leaving UK to live in another country (probably permanently). I have a shared ownership flat (50%), which I'd like to sell, as I cannot rent it out (as written in my SO lease). However, I still have 1 year left on my fix, with 3% early repayment charge on my 110k mortgage with Barclays.
Is there anyway to avoid paying that 3k to close the mortgage?


P.S. I dont have a deposit to buy another 50% of a flat, and the first 50% is tied up in a 1 year fix.


(P.S.S. What could be consequences of renting the flat out for a year, if not allowed by SO lease?)


Thanks

silvercar

Is there anyway to avoid paying that 3k to close the mortgage?

Not sell up. Leave it empty or let friends or family live in it.

silvercar

(P.S.S. What could be consequences of renting the flat out for a year, if not allowed by SO lease?)

You risk being reported to the lender or to the freeholder or the shared ownership managers.

The lender would be within their rights to charge you extra interest, normally 1%.

Any of them could tell you to stop. Then you have the problem of getting the tenants out within a reasonable short time.

Do others in the block rent and the SO people turn a blind eye, or is it strictly enforced.

phemark

silvercar wrote: »

You risk being reported to the lender or to the freeholder or the shared ownership managers.

The lender would be within their rights to charge you extra interest, normally 1%.

Any of them could tell you to stop. Then you have the problem of getting the tenants out within a reasonable short time.

Do others in the block rent and the SO people turn a blind eye, or is it strictly enforced.

I guess extra 1% is not that bad of a penalty, as a worst case.
Or could they take the flat away, and I could lose all my equity? (Or is it not how it works in a breach of lease?)

I dont really know most of the tenants in the building, so cant answer last part.