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TrappedMother
Posts: 1 Newbie
Hi how are you
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TrappedMother wrote: »Hi, I’ve set this up to see if anyone has any good advice they could send to me to help me get out of this flat!
Currently I just bought flat through RTB and monthly payments going to be around £200pcm, which is cheaper than my rent!!
Hooray as I’ve got the property but I really want to move badly, don’t like area anymore and neighbours are like hell all around me are noisy! I am a 50yr old woman with a steady ish job.
My problem is that with the RTB scheme (England) I can’t sell my property for 5years without paying back discount so I’ve got a 5year fixed mortgage and idk how I will be able to move into any other property unless I wait until 5 years and save money for a deposit for 5years then combine with flat sale and put a big deposit down on a house/flat and get a easy enough mortgage payment each month. But I want to move before 5 years as I’m getting old and this place is really making me depressed as I just want to get out and I feel like I’m trapped here!
It’s a 30% LTV mortgage, and I heard I could maybe refinance to 50% then rent my flat for around £550pcm (350 more than mortgage) and use refinanced money of around £18k for deposit on another house but not sure as I don’t know if I could get a 25yr mortgage etc due to age.
Any advice on what I can do to move faster? Would be gladly appreciated:D
Why did you buy a flat in an area you hate with nightmare neighbors?0 -
Sell it off, pay back the discount to whoever you bought it from (council? house builders?) and treat this as a learning exercise about fully researching an area before committing to buy a property in it! 5 years of misery simply isn't worth it just to get on the housing ladder - your mental health is far more precious than that! And when you next come to buy put in a lot of groundwork in terms of research into the area before buying a property. We visited the estate that our house was in several times at different times of day and days of the week, spoke to a lot of the neighbours, looked up crime statistics etc. Buying a property is such an expensive business that we wanted to make sure we got it right first time and got somewhere that we can stay long term.MFW2023 challenge #99: £1090.11 / £1,000 MFiT-T6 (Jan 2022 - Jan 2025) challenge #99: Reduce mortgage to £400,000. Current balance = £413,551.19 Initial MF date (23rd Aug 2022): Sep 2051 Current MF date: Jul 2051 Last updated: 15/06/20230
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pinknsparkly wrote: »Sell it off, pay back the discount to whoever you bought it from (council? house builders?)
RTB = Right To Buy i.e. she bought it from the council (or whoever her social landlord was).
...which also means she must have lived in the same property for long enough to qualify for the RTB, which usually counts as doing enough research.and treat this as a learning exercise about fully researching an area before committing to buy a property in it!0 -
I suppose now as it's too late this is either going to be a very expensive mistake or a savage attack on your mental health.
I would try and make changes to make life a little easier for a while and try and look at places you would be happier in whilst running down the clock on your RTB.
I am not clued up on how it works as I've never done it ..as time goes by does it mean less of a loss or it's a straight min 5 years ?
I'm afraid if it's the latter I think my check list would have been pretty high especially if you knew the area.. things must have been evident before hand0 -
So, these are the choices:
1. Put the house up for sale and pay back the Council the discount you received when you bought the RTB, and put the rest down as a deposit on a new place.
2. Stay for the required 5 years and benefit from selling at market rates, therefore making a tidy profit.
3. Rent out your RTB property and go and rent somewhere else to live in. If your rental income is the same as the rent you would be paying out, then financially that would work. You would have to understand what being a landlord involves though.
I think you're trying to have your cake and eat it.0 -
Better hope that the council or HA don't decide that the building needs any work during the 5 years either or you might be surprised by the size of the bill & realise that your rent was paying for maintenance and now although your only paying £200 a month mortgage your now responsible for the upkeep of the flat0
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Wanting to sell a rtb property just after buying it. I'm suitably outraged, Grrrrr.0
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3. Rent out your RTB property and go and rent somewhere else to live in. If your rental income is the same as the rent you would be paying out, then financially that would work. You would have to understand what being a landlord involves though.
I think you're trying to have your cake and eat it.
Are you allowed to let out a RTB property? Genuine question to which I don't know the answer. Seems wrong to me.0 -
Why did you buy it if you weren't going to live in it...TrappedMother wrote: »Hi, I’ve set this up to see if anyone has any good advice they could send to me to help me get out of this flat!
Currently I just bought flat through RTB and monthly payments going to be around £200pcm, which is cheaper than my rent!!
Hooray as I’ve got the property but I really want to move badly, don’t like area anymore and neighbours are like hell all around me are noisy! I am a 50yr old woman with a steady ish job.
My problem is that with the RTB scheme (England) I can’t sell my property for 5years without paying back discount so I’ve got a 5year fixed mortgage and idk how I will be able to move into any other property unless I wait until 5 years and save money for a deposit for 5years then combine with flat sale and put a big deposit down on a house/flat and get a easy enough mortgage payment each month. But I want to move before 5 years as I’m getting old and this place is really making me depressed as I just want to get out and I feel like I’m trapped here!
It’s a 30% LTV mortgage, and I heard I could maybe refinance to 50% then rent my flat for around £550pcm (350 more than mortgage) and use refinanced money of around £18k for deposit on another house but not sure as I don’t know if I could get a 25yr mortgage etc due to age.
Any advice on what I can do to move faster? Would be gladly appreciated:D
(I can take a few guesses)0 -
AnotherJoe wrote: »Are you allowed to let out a RTB property? Genuine question to which I don't know the answer. Seems wrong to me.
I think it depends on the terms for individual contract you have. I've never heard of one that allows you to rent out straight away, some you can after a period of say a year or two, others you have to wait for the end of the fixed mortgage deal (and be out of the period where you need to pay back your discount).0
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