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Can I rent out my council flat?
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m11g30
Posts: 2 Newbie
I have been living in my council flat for nearly 4 years and I am wanting to purchase it through right to buy, however in the near future myself and partner (who is not on the tenancy) want to buy a house together. If I buy my flat would I then be able to rent it out? I cant find any terms and conditions anywhere regarding buying a council property. I dont want to buy the flat and then be unable to rent it out, if I were to buy a house.
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There’s nothing under the RTB rules that prevent you from letting the property.m11g30 said:I have been living in my council flat for nearly 4 years and I am wanting to purchase it through right to buy, however in the near future myself and partner (who is not on the tenancy) want to buy a house together. If I buy my flat would I then be able to rent it out? I cant find any terms and conditions anywhere regarding buying a council property. I dont want to buy the flat and then be unable to rent it out, if I were to buy a house.1 -
Will you have a mortgage on it?2024 wins: *must start comping again!*0
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Yes I'll be getting a mortgage on it, as we want to remain living here but unsure for how long. As it's such a huge financial purchase I just dont want to buy it it then we end up wanting to move and not be able to rent it out, as I know I'm unable to sell within 5 years without resulting in a hefty payback percentage to the council.
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Which is why RTB is a terrible scheme.Lover_of_Lycra said:
There’s nothing under the RTB rules that prevent you from letting the property.m11g30 said:I have been living in my council flat for nearly 4 years and I am wanting to purchase it through right to buy, however in the near future myself and partner (who is not on the tenancy) want to buy a house together. If I buy my flat would I then be able to rent it out? I cant find any terms and conditions anywhere regarding buying a council property. I dont want to buy the flat and then be unable to rent it out, if I were to buy a house.11 -
If your long term view is to buy a house elsewhere why not just start saving to do that rather than deprive someone else in desperate need of social housing. Obviously your situation has improved, which is brilliant but perhaps there's someone who's been waiting years for somewhere to live just as you did.
If you would be buying your flat to rent it out, it might be an idea to look into what goes into renting a place out so you know what you are getting into. And also ask yourself, if you were running two mortgages but a tenant defaulted, would you be able to pay the two mortgages. If you were buying it, but had to pay part of the discount back if you decided to sell, would it be worth buying it (lots of hassle).6 -
Don’t hate the player. Hate the game.craig1123 said:
Which is why RTB is a terrible scheme.Lover_of_Lycra said:
There’s nothing under the RTB rules that prevent you from letting the property.m11g30 said:I have been living in my council flat for nearly 4 years and I am wanting to purchase it through right to buy, however in the near future myself and partner (who is not on the tenancy) want to buy a house together. If I buy my flat would I then be able to rent it out? I cant find any terms and conditions anywhere regarding buying a council property. I dont want to buy the flat and then be unable to rent it out, if I were to buy a house.1 -
Bear in mind that if you buy it, and then buy and live in another property elsewhere then you will be subject to CGT on any potential gain when you come to sell it.
And your gain will be much higher than would otherwise be the case, because of the substantial RTB discount you have benefited from.No free lunch, and no free laptop
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Your lender could refuse to grant you CTL - or more likely BTL as it sounds like it would be a permanent arrangement. So you'd have to remortgage after whatever deal you're on ends and pay any fees, or pay whatever charges to get out early. A BTL mortgage would cost you more and you'd prob need 25% deposit for the BTL mortgage (presumably of the property's future value).2024 wins: *must start comping again!*0
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Post 7: New landlords (1):advice & information :see links in next post
Post 8: New landlords (2): Essential links for further information
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OP - you really will not get sympathy on here for buying a council house at a discount and then flipping it and letting it whilst you buy another on the open market. The scheme was not designed for that and I do wish the loophole that allows rentals in these circumstances was closed6
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