Buy to let on a right to buy house

restless6

HampshireH wrote: »

Go and see a broker. The criteria for a let to buy is quite comprenensive but nowhere have I seen anything about RTB having an impact negative or otherwise.

This website looks quite useful http://http://www.themortgageworks.co.uk/lendingcriteria/let_to_buy

Do you intend to mortgage to a buy to let and take the deposit from that or do you have the cash to put down as a deposit?

Broker can go through all your options & affordibility. Don't forget you are going to need to be able to cover the costs of both mortgages if you don't get/have a tenant, as well as all other associated costs such as tax and insurance

I would have to change my current mortgage to buy to let yes - but what I don’t know is if I can take any equity from this house towards a deposit as it is still in the discount repayment period - so is the equity really belonging to the council ?
This is what I can’t find information on

I would be able to raise a small deposit but no more than £10k myself and that would be a push . I know I can get a rent on this house to cover my mortgage and leave me with about £300 extra per month.

Norman_Castle

Lioness_Twinkletoes wrote: »

This thread is like groundhog day. The amount of posters that are making the same (incorrect) assumptions has become almost amusing. Does no one read the thread before posting?

Feel free to point out the assumptions that you find almost amusing.

restless6

I contacted my broker and he did not even realise I could rent my house out !
I think I need to find a broker who specialises in right to buy - if there is such a thing

Shannan12

HI ,

I am going though the same thing as you, did you manage to turn your right to buy into a buy to let and take money out of the property ?

Thanks

Shannan

gettingtheresometime

I wish I'd looked at the date of the original post..........

theselfishaltruist

Of course, you can rent your own house out and I'm amazed anyone here is doubting that. You bought the house, it is yours, you own it for eternity. When you die it goes to your heirs. The bank may bump your interest rate, or put you onto another type of mortgage, but no one is forcing you to stay in a home you don't want to live (nor can they). It's your house. You can do whatever you want with it (within the law).
Alternatively, you could take in lodgers, and then move out (although keeping your access). This way you are not renting the house it, you are taking in licensees which not the same as taking in a tenant. If you have possession of the property still, you are still the homeowner under the law. You don't have to live somewhere to be in possession, you could just leave some of your bits and pieces and make sure the lodgers have a clear contract detailing their rights as lodgers. This is common with council tenants who want to move out but cant legally sublet. If s lodger is living in the house, paying rent, this is NOT subletting as long as you can enter the property without being a trespasser. You could even rent out all rooms etc, and just make sure its clear in your contract you still have access. 
 
Third option is just rent it out and don't tell the bank. They arent going to come round and check and doubt they will cause much fuss if they did manage to find out, apart from possibly increasing your interest rate.

You aren't doing anything illegal in any of these situations.

It's a free country, do what you need to do for your own interests.

theselfishaltruist

Lioness_Twinkletoes said:

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.

Why would a house someone purchased be a leasehold? They would be the freeholder like any other purchaser of a house. Do you know how RTB works?

HampshireH

theselfishaltruist said:

Lioness_Twinkletoes said:

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.

Why would a house someone purchased be a leasehold? They would be the freeholder like any other purchaser of a house. Do you know how RTB works?

Why have you resurrected a 2 year old post?

theselfishaltruist

ACG said:

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.

You presume wrong. You can rent it out as soon as you buy it if you so wish. 
If it is a leasehold (a flat) you cannot turn it into an Air BnB business.
If it is a freehold (a house) you can rent it, or turn it into an air BnB. To make maximum money from the house, it air bnb maybe a good option, and there are companies that manage all of it for you so you dont have to do anything and just let the money come in. 
In regards to the bank, they aren't going to cancel the mortgage. They may increase the interest when they switch you to a buy to let.  

theselfishaltruist

HampshireH said:

theselfishaltruist said:

Lioness_Twinkletoes said:

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.

Why would a house someone purchased be a leasehold? They would be the freeholder like any other purchaser of a house. Do you know how RTB works?

Why have you resurrected a 2 year old post?

Why does it matter?