Right to Acquire - Release Equity

[Deleted User]

I purchased my property with a 45% LTV mortgage from the housing association back in August which entitled me to a fixed 9k discount under the 'Right to Acquire' (Not to be mistaken for 'Right to Buy') - Under right to buy the only clause it has is that if I sell within 5 years I will have to give the discount back.

I do not plan to move, in fact I am staying here the rest of my life as I love my home and have lived here for 12 years! I am inheriting some money which will allow me to me mortgage free. Once I have paid off my mortgage am I able to release equity within the qualifying 5 years so I can purchase a buy to let property or will I have to wait? I am not sure who to ask for advice and wondered if anyone here had any information or experience with this. Thank you

EDIT: I have found out that there is a deed of postponement on the house. This means that if I sell the house within 5 years I have to give the following back to the housing association: Sell within 1st year - 100% of the discount (£9000), 2nd year - 80% of the discount, 3rd year - 60%, 4th - 40%, 5tjth - 20% - I have looked into paying back the full discount to release the deed of postponement however I have been told this is not possible.

This means I still have 90% equity, would I be able to get a buy to let mortgage against the rest of the property which does not have a deed of postponement? Thank You

Comms69

Read the T & Cs - and there's literally dozens of better investments than property

[Deleted User]

Comms69 said:

Read the T & Cs - and there's literally dozens of better investments than property

It doesn't say anything about releasing equity to purchase another property to let out. What other investments other than property are worth while? 

Comms69

Jaynie87 said:

Comms69 said:

Read the T & Cs - and there's literally dozens of better investments than property

It doesn't say anything about releasing equity to purchase another property to let out. What other investments other than property are worth while? 

Depends how involved you want to be - stocks and shares, bonds, speculative investments like gold (or even lego!) 

AdrianC

Why would you pay off your mortgage, then release the equity you've just paid in...?

Jaynie87 said:

Comms69 said:

Read the T & Cs - and there's literally dozens of better investments than property

It doesn't say anything about releasing equity to purchase another property to let out. What other investments other than property are worth while? 

Then I think I must be misunderstanding...

Jaynie87 said:

...
Once I have paid off my mortgage am I able to release equity within the qualifying 5 years so I can purchase a buy to let property...?

There are a LOT of investments that are better than property. Borrowing to invest is rarely wise.
https://forums.moneysavingexpert.com/categories/savings-investments

FtbDreaming

I also bought a RTA in august and the charge against the property that stops us selling in the first 5 years also stops us releasing equity. 

It wasn’t until after I owned the property I also read that the house can only be sold back to the HA in the first 10 years not 5 so that’s how long I’ll be here for now. I have to offer it to them within ten years and they decide what they want to pay for it. If they do decline the purchase then  it can be sold on the open market at a price that I want then. 

[Deleted User]

FtbDreaming said:

I also bought a RTA in august and the charge against the property that stops us selling in the first 5 years also stops us releasing equity. 

It wasn’t until after I owned the property I also read that the house can only be sold back to the HA in the first 10 years not 5 so that’s how long I’ll be here for now. I have to offer it to them within ten years and they decide what they want to pay for it. If they do decline the purchase then  it can be sold on the open market at a price that I want then. 

Mine is a 5 year clause. I do not want to move, just release the equity in the property to buy another to let out. I love the house I live in and have no intention on moving. My financial circumstances have changed but no one, even the housing association seems to have the answers. 

FtbDreaming

Yeah the charge means you can’t release equity in the first 5 years. If you’re getting cash then just keep the mortgage on and use the cash to Get your btl...