Buy to let on a right to buy house

restless6

Hi
I have tried google searches but had no luck.
Does anyone know if I would be able to do let to buy on my house .
I bought the house as a right to buy and I am still in the discount repayment period.
Would this affect my ability to apply for a let to buy so that I can move house?
For me to rent somewhere else would be very expensive.

But I cannot stay here due to a change in personal circumstances.

Any advice would be appreciated.
Thanks

Lioness_Twinkletoes

Sadly the Council you bought it from won't care. If it is leasehold you'll need to provide them with an alternative UK address for the serving of notices etc. However, your mortgage company might not like it as I am assuming the mortage (again, assuming there is one) would have been a residential one and not a BTL.

ACG

Mortgage lenders would not do it if you are still within the discount perand you would presumably be in breach of your right to buy terms.

restless6

Hi
Yes I have a mortgage on the house.
Im not sure what my options are - but staying here long term is not possible anymore.
I am not sure what the terms of my mortgage are

ACG

The terms of your current mortgage will be for you to live there. You could request consent to let but as you are within the discount period it will/should be rejected.

Your only real option is to leave it empty or sell and pay back a portion of the discount.

restless6

I do have consent to let- I just read some of the paperwork .
I can not afford to leave it empty.

If I rent the house out then I am stuck with renting elsewhere.
But it seems I will not be able to buy. Rent charges are so expensive that is why I was hoping to buy

da_rule

Op, what do you actually want to do?

If you have consent to let from your lender then yes you can rent out your property. If the income you receive from renting it out does not allow you to rent or buy somewhere else then that is kind of tough.

Your other option is to sell the house, pay off what you owe to the Council and the mortgage lender and use any equity to purchase a property that meets your needs.

restless6

Thanks for the replies
If I rent my house out - can I use that income as an income towards mortgage availability on a new purchase as my wages alone would probably not be enough.

ACG

Not until it has been rented out for a year and declared on a self assessment.

I am surprised you have Consent to let, if the council find out you may find they come asking for some of their discount back. Have you checked with them?

da_rule

That depends on the lender, some may allow it, some might not. Obviously you will need to pay tax on the rental income. You will also be liable for the higher rate of stamp duty on any other property you purchase.

da_rule

ACG wrote: »

Not until it has been rented out for a year and declared on a self assessment.

I am surprised you have Consent to let, if the council find out you may find they come asking for some of their discount back. Have you checked with them?

The Council have no right to ask for discount back for a letting as it does not count as a disposal under the Housing Act.