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Renting with a local occupancy clause in place?

7 replies

LilyChantilly · 06/06/2017 10:22

We live in an area where house prices are high and wages are low. Very little social housing in our immediate area. We have to move out of our privately rented home of 9 years as landlady needs to sell due to a change in personal circumstances. Hardly any private rental properties in our price range either. We really want to stay in this area (school, work, friends, etc). Have noticed a nearby house for sale with a local occupancy clause - great house, very cheap due to LOC. Even so, we can't afford to buy or get a mortgage at present. Would it be possible for a local friend to buy the property and rent it out to us to cover the mortgage payments? Friend would be eligible to buy under LOC as would we, if we could afford it. The whole thing is making me so anxious, really bad timing to have to find a new home at this point in our lives!

OP posts:
LoveMyLittleSuperhero · 06/06/2017 10:26

I think he would have to rent with a LOC in place, which if you are eligible isn't a problem. Could you give your local council a ring and ask?

DancingLedge · 06/06/2017 10:28

I think it would be fine.

LilyChantilly · 06/06/2017 11:43

Thanks for your replies. Good idea - I will ring the council. Didn't want to ask the estate agent as would rather find out anonymously at this stage!

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specialsubject · 06/06/2017 13:09

As long as your friend is happy to be your landlord, take all the responsibility and cost and rent to you for as long as you want. And can afford the btl mortgage and the tax.

LilyChantilly · 06/06/2017 14:09

Yes, I know this is a big deal and there are always concerns around friends and money. I would never take advantage - the suggestion came from them, not me - but I wouldn't want to do anything that would affect our friendship.

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specialsubject · 06/06/2017 17:53

it is a risk and you are wise to consider it - usual advice is never rent to or rent from friends!

what is the 'exit strategy'? i.e. is there a plan for you to buy it from them eventually? What happens if the value of it goes up or down? Can they even get a BTL mortgage with the LOC on it? You can't get a mortgage on it at the moment - what happens if you never can due to the LOC?

don't get me wrong, it would be great if this works out but please discuss all the possibilities first.

LilyChantilly · 06/06/2017 18:27

Thanks special - wise words

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