Remortgaging a current home to use towards a new property deposit (Let to buy)

nolimit988

Hi there,
I currently live in a flat which was purchase 4 years ago as part of the right to acquire scheme. This was purchased on my own but I now want to move out of the flat and purchase a new residential property (which will be a house rather than a flat). I have been told I am eligible to do a remortgage to release equity from the property by 2 different mortgage advisers but we have also been told by another 2 you cannot release equity from a mortgage as it purchased through a right to buy scheme. I have been struggling to find the answer to this question online and from mortgage brokers as the information all seems to be conflicting, does anyone have any solid information on these rules on releasing equity from a Right to acquire property after 4 years?
Thank you

[Deleted User]

as far as I am aware you can only remortgage for essential home improvements whilst you are within the first 5 years.   After 5 years I *think* you can do what you want.  Happy to be corrected though, I havent researched that many

nolimit988

brilliant, thank you. It seems to be a very grey area as theres very little info online about it but If the first 5 years rule is correct, are there any ways of overcoming it at all such as paying back the small discount I was given, or perhaps writing to the housing association that the property was originally purchased from? 

[Deleted User]

honestly its not something that I have had much experience in so I dont really know the answer.   @K_S, anything you have come across before? 

K_S

Deleted_User said:

honestly its not something that I have had much experience in so I dont really know the answer.   @K_S, anything you have come across before? 

@Deleted_User @nolimit988 Though I've done my share of RTB mortgages, I can't recall ever having done a Right To Acquire one to be honest.

Generally speaking, remortgaging an RTB during the 5-year pre-emption period and raising cash can sometimes be tricky (even for straightforward reasons such as home improvements) and doing it for the purpose stated is likely to be even more so. I don't know how much RTA rules vary from RTB but I would guess they run along similar lines.

[Deleted User]

In summary,   speak to whoever holds the current interest in the property and ask them what you can do to have them discharge any interest early