'Right to Buy' Remortgage possibility within 5yr pre-emption period?

PharmT

Hi All,

We purchased our council property last year using the right to buy discount, so are within the 5yr pre-emption period. I would like to do one of two things, either remortgage to fix for longer, or ideally would like to remortgage, fix for longer, PLUS raise some home improvement money.

Firstly, are there any problems with remortgaging within the pre-emption period? Secondly, would the potential new mortgage use the 'council valuation' or the actual valuation as there is now a substantial difference in these figures.

Anything I haven't thought of, also do please shout out

Thanks

strawb_shortcake

You can remortgage within 5 years, you will need to get the council/HA to sign a Deed of Postponement, this was difficult when we remortgaged as no one really knew what it was, also cost us £150 I seem to recall? But basically it's to reassure the lender/solicitor that the "discount charge" will not be recalled. 

You may have to pay an ERC on your current mortgage, and to increase your current borrowing would impact the LTV. I believe you need to have enough equity to cover your mortgage plus the current discount value so this may impact how much extra you can borrow