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Share To buy to let
rafhelp
Posts: 372 Forumite
i want to buy a house on a buy to let mortgage.
The house is owned by housing agency
They will not sell 100%.
So i want to by 25% to start with then buy the full 100%, they said they will allow this, maybe they get extra fees or something.
Is this possible and how would it work for a first time buyer?
So i buy 25%, get mortgage on it. would i then have to wait the full 2-3 years minimum mortgage period before renegotiating a mortgage deal for the full 100%, i wouldnt want to do this.
The house is owned by housing agency
They will not sell 100%.
So i want to by 25% to start with then buy the full 100%, they said they will allow this, maybe they get extra fees or something.
Is this possible and how would it work for a first time buyer?
So i buy 25%, get mortgage on it. would i then have to wait the full 2-3 years minimum mortgage period before renegotiating a mortgage deal for the full 100%, i wouldnt want to do this.
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Comments
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Check the shared ownership terms carefully, I thought they were for owner occupiers only.
Not only would you need to staircase up to 100% to end the shared ownership, but you would need a BTL mortgage rather than a residential one. bTL mortgages require 25% deposit generally, so you would need to find a deposit.
You could get a mortgage with no early redemption penalties if that was the only hurdle, but I doubt it would be that simple.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
Read the terms of the shared ownership scheme. In particular
* how soon can you buy the remainng 75%?
* at what price?
* are you allowed to let the property out or must it be your main residence?
Have you identified a lender for the BTL mortgage on a shared ownership scheme? What level deppsit do you need?0 -
i want to buy a house on a buy to let mortgage.
The house is owned by housing agency
They will not sell 100%.
So i want to by 25% to start with then buy the full 100%, they said they will allow this, maybe they get extra fees or something.
Is this possible and how would it work for a first time buyer?
So i buy 25%, get mortgage on it. would i then have to wait the full 2-3 years minimum mortgage period before renegotiating a mortgage deal for the full 100%, i wouldnt want to do this.
The bottom line is that HTB SO is to help people by a home not to help BTL landlords. You won't get a BTL shared ownership mortgage and you won't be able to let the property whilst you only own a % of the lease. Depending on the lease you might not be able to let the property when you own 100% of the leasehold.
This is your second thread on the topic so if BTL is something you want to get into then you need to go back to the drawing board.0
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