RTB property restriction to sell

heston2014

Hi

I need some advice please..

We purchased our property 4 years ago through RTB and it has come to light very recently, there is a restriction to sell for 10 years.
It was my understanding that the restriction was only against the discount which was 5 years and that if we were to sell the property within 10 years, it would have to be sold to our landlord (local authority) first.

As our current mortgage product expires next September and we were hoping to remortgage/convert to LTB, but having enquired with a broker, they are advising that we cannot sell the property for 10 years.
Whilst I understand that may well be the case, I would like to know if this will also restrict us from remortgaging or getting a second charge loan or switching lenders for a better mortgage rate?

Does anyone know anything about RTB property restrictions and what would be our options for next year in terms of product switching and raising capital? (we are planning to buy a second home from funds raised, but it seems that the restriction will prevent us from doing so)

Thank you.

csgohan4

I hope you have a thick skin asking about RTB related stuff on here.


But the binding conditions will vary from council to council and what is written in your RTB conditions/ Lease.


but from a moral point of view I sincerely hope the restrictions are long. Council homes were meant to help those in need not to help people have 2 homes or rent out and be cash cow

heston2014

csgohan4 wrote: »

I hope you have a thick skin asking about RTB related stuff on here.


But the binding conditions will vary from council to council and what is written in your RTB conditions/ Lease.


but from a moral point of view I sincerely hope the restrictions are long. Council homes were meant to help those in need not to help people have 2 homes or rent out and be cash cow

Thanks for the response and whilst I appreciate that RTB is frowned upon by many, we were genuinely in need of social housing years ago but worked very hard to be fortunate enough to be in a position to avail the RTB.

foxy-stoat

heston2014 wrote: »

We purchased our property 4 years ago through RTB and it has come to light very recently, there is a restriction to sell for 10 years.
It was my understanding that the restriction was only against the discount which was 5 years and that if we were to sell the property within 10 years, it would have to be sold to our landlord (local authority) first..

Only just come to light, you mean you have only just read the contract 4 years later.

If your thinking of selling then wait another year to get the value out of the discount - if you want to remortgage and pull equity out then ask your broker.

heston2014

foxy-stoat wrote: »

Only just come to light, you mean you have only just read the contract 4 years later.

If your thinking of selling then wait another year to get the value out of the discount - if you want to remortgage and pull equity out then ask your broker.

No, I was aware of the 5 year restriction in terms of clawback of the discount and to sell to Local Authority first within the first 10 years. We are not planning to sell anytime soon and it given there is this 10-year restriction, I wanted to know if this will also restrict us from switching products next year.

bigstevex

A sad lack of morals in this world

Nnenne1

You can sell anytime but you’ll lose some of the discount. After the 5th year, you get the whole discount.

Your broker is wrong. You can sell but you must offer it to your council first, they have the right to buy it back first( should you sell within 10years). After 10 years, you don’t need to offer it to them.

When you offer it, they’ll have to pay full market price, most don’t buy it back. If they choose not to buy, you can then sell it privately or via an agent as normal.


You can remortgage no problem, you can convert to btl or whatever. It!!!8217;s now yours.

Finally

Do not listen to the moral brigade, if they have an option of buying a council house or flat, 99% of them would for sure.