Bought right to buy property, need to move!

[Confuffled]

I bought my council property about 6months ago, under the right to buy scheme. lovely, we are really pleased with it.

We now need to move due to a change in work commitments, but really do not want to sell for a number of reasons.

Where do we go now? There is a friend of the family who wishes to rent it from us, can we do that? Who would need to be notified?

anyone?!

You need to speak to the LA who you bought the property from. There will be a period of time that you are unable to sell on without having to repay a certain percentage of the discount but I don't know about renting.

Yes I know about having to pay back the discount, one of the reasons I don't want to sell!

I think you have to live in it for a certain length of time after a RTB don't you? Maybe it varies from LA to LA.

Sorry it's not much help but you will need to ask them. How far would the commute me if you didn't move?

*be not me obviously .

P.S. Don't be 100% surprised if someone doesn't come along to tell you that you should be so blooming grateful for a RTB opportunity that you should be prepared to walk for 5 hours to get to work & back. 'Tis the MN way .

Sorry, that made no sense. Please take the "doesn't" out of the first line! Am having a dumb day today.

It's worth finding out what the "market price" that your home was valued at before you got the RTB discount was: these prices are usually below the actual market price (depending on what sort of property it is). So, if for example, the property is for sale at 100k but it was valued by the LA at 85k and then you got your RTB discount, you sell at 95k, you might still break even after you've paid back the discount and paid fees etc.

If the LA valued it much more generously, you might be in trouble but, tbh, in almost any house, if you were to sell after only buying 6 months before, you would be unlikely to break even once you had taken into account estate agency fees, potential mortgage penalties, possible stamp duty etc so it'll either be a question of writing off your losses or staying put if at all possible.

PootlePosyPerkin - that is why I posted here and not in chat or something! hoping to get some normal replies!

definitely do not want to sell, just rent it. The commute would be 6-7 hours by train on a good day other wise!

Without knowing the terms of your council's right to buy scheme it's hard to advise. Some places have no restriction on renting at all and you would just require a consent to let from your mortgage provider. Other authorities may be more restrictive.

I don't understand how they can have any restriction? I own the property, they just get a percentage back if i sell in 5 yrs.

I dont have to consult them regarding anything i want to do eg. extension/conservatory. so I don't see why i would have to advise them of renting it.

We bought an ex-council property (not under right to buy) and we have to ask the council for permission to carry out certain works because of covenants in place.

I know of some ex-council properties that have covenants restricting them from being used as student lets.

You need to establish whether there are any restrictions from either the right to buy scheme, or any covenants in place. If there aren't you then need to get a consent to let from your mortgage lender.

I had actually rented my RTB property for 2 years using a Letting Agent to manage it. I did not realise I needed to let the Council know until I came back to find that Service Charges has not been paid by the Letting Agent who charged me 14% monthly fee to manage the property!!
Do be careful who you rent to as sometimes family/friends get to a stage of "entitlement" and start lapsing on making rental payments! Do ensure you have signed agreements in place, all bases covered!

Need to know your council's rules but I also think you will have to inform whoever you have the notgagage with. Probably will need a buy to let mortgage and have different house insurance.

This was over 9 years ago @Minime64 🙄

You need to speak to bank or building society that loaned you money for mortgage. If you want to let out the property you need a different mortgage. You would be breaking terms of residential mortgage if you let it out without permission. They will agree just switch you to btl mortgage.

The whole point of RTB is that the person living there buys it to live in, not to rent out to someone else or sell on for a profit. That's why. Did you not read the terms and conditions when you bought? It was only six months ago!

Yes, dig out the terms and conditions. That should have conditions of sale.
The other interested party will be the mortgage provider (assuming you have one) as you won't have a buy-to-let mortgage.

The bank I work for would not grant consent to let on a right to buy property that is still within its pre emotion period which used to be 3 years. Not sure if this has changed as I haven't dealt with anything right to buy in a few years

You will need to change your mortgage (assuming you have one) to a let to buy mortgage which will give you less favourable rates.

Whoops meant buy to let!

This is online - I would say no sorry!

If you don’t have copies of the RTB paperwork it would be worth going back to the solicitor who handled the purchase, they will charge you, but will be able to give you advice on what you and can’t do and what process you need to follow.

you will need to contact your mortgage company as most residential mortgages don’t let you rent the property out. Some have restrictions like a minimum period and some might require you to remortgage, which will depend on the LTV of the property (LTV for a buy to let is often lower than residential mortgage) also be aware that if you need a new mortgage it will be more expensive than your old one.

Have you looked at alternatives like a closer job, or weekly commuting? I suspect that renting so soon after buying will turn out to be an expensive PITA.

NINE YEAR OLD THREAD

ZOMBIE THREAD (2013)