Management company in the lease stating we aren't able to rent out the property - Advice needed

G_M

I'd far rather live in a building where the other flats were all owner-occupiers. They look after the building and communal areas better than tenants (as a generalisation), and cooperate better when work needs doing than absentee flat-owners.

silvercar

There are blocks where all the owners have used the help to buy schemes to help fund their purchases. That too prevents letting the property, I don't really think it is a big deal.

NeilCr

G_M wrote: »

I'd far rather live in a building where the other flats were all owner-occupiers. They look after the building and communal areas better than tenants (as a generalisation), and cooperate better when work needs doing than absentee flat-owners.

From a Management Company point of view I'd definitely agree with this. We have quite a lot of tenants on our estate and, in general, they are fine (our worse resident has definitely been an owner occupier). But getting the landlords, who are often distant, to engage in decision making and discussions can be problematic. They are, often, happy to leave it with letting agents to manage and have little interest in the running of the estate.

SouthLondonUser

nicmyles wrote: »

Most regular house purchasers who have a mortgage won't be allowed to let it out anyway, under the terms of their mortgage.

AFAIK most lenders can let you let out a property, subject to their explicit approval and, typically, a higher interest rate.

SouthLondonUser

Snowman12345 wrote: »

But my question is will this impact and put regular house purchasers off as well who plan to live in it?

How long is a piece of string?

As you have seen from the replies, some people prefer buildings with owner-occupiers, some don't really mind.

If I were a buyer, I'd be put off because life is unpredictable, I don't know if I'll ever want to rent out the property, but I know I want the option. I'd consider a property with this kind of restriction only if it were on a sale at a discount vs comparable properties that can be freely rented out. But that's just me. Others will feel differently.

One thing I'd say is that during market booms any shoebox with some walls made of marshmallows sells; in a market downturn, people become picky, so things like this might be a hindrance. Note the "might" - no one can forecast the future.