Right to Buy Query

[LostSheep]

I have been giving the opportunity to buy my council house through the right to buy scheme and I was thinking of renting the property out after the purchase from the council has completed. My queries are -
Can this be done? Are there any 'Right to buy-Buy to let Mortgages' available? Would the council have to know my intentions? I know that the right to buy scheme was setup to get council tenants on the property ladder and if I was to go down this route it would go against what the scheme was setup for. Any thoughts?

[redcrx]

My thoughts? well theres a question.
I think that for even considering ripping off the tax payer in such a way the house should be removed from your possession.
well you did ask.

[buildersmate]

Suggest you check, or have checked for you, the small print of Terms and Conditions associated with exercising your right to buy. Terms do vary but if was a council I'd not allow this for a minimum number of years since it defeats the objective of selling the houses to tenants. Buy to Let mortgages are generally for investors who have an existing mortgage on their existing dwelling - and can't remortgage the existing dwelling enough to rise the capital to invest in another house. If you are saying you are in another house anyway (with a mortgage), surely that exempts you from a right to buy anyway, since you aren't living in the house?

[Kathyan]

One question, if you buy your council house and then let it, where would you live?

[LostSheep]

Thanks for your thoughts.

I am currently living in the council house and once the purchase has completed I am going to move into a property that was left to me in a relatives will. I'm hoping to buy the council house, rent it out for a while, move into the other house and probably sell the former council house in the future.

[redcrx]

move into your relatives house and let the council have their house back. It will then be used for someone who needs it.

[LostSheep]

Thanks again for all your thoughts.

I'm going to speak to the council tomorrow and see what they say regarding this.

In A Pickle, why do you want a council house in favour of a rented private property? Would you not rather buy and mortgage your own property instead of renting? What difference does it make if the tenant pays the rent to me instead of to the council?

[redcrx]

"What difference does it make if the tenant pays the rent to me instead of to the council?"

is this a trick question???

[EverClean]

Not getting into the ethics of the situation - there are lenders out there that will do Right To Buy and Buy To Let at the same time. Some require the council's permission and some do not.

[lady_p_gold]

Of course you will be letting the Council know that you have been left a property in a Will and that you have no need for the Council house now. I am glad to see that my Council Tax is going to such a worthy cause as making you a big profit when you sell it after getting your undeserved and fraudulent discount.

[LostSheep]

Thanks EverClean, do you know the names of those particular lenders?

[EverClean]

The main one is Cheltenham and Gloucester. There are others but not available through the High Street. You'll have to contact a mortgage broker to source you other deals.

[LostSheep]

Thanks for your help EverClean!!

[lady_p_gold]

Good luck, my son has a learning disorder and is unable to get a Council property as there are none available, clearly you do not care

[EverClean]

The council's themselves are the ones who will state whether or not this property will be allowed to be let. The issue lies with them. The RTB policy was set up to enable people to get on the property ladder and out of social housing - LostSheep is doing exactly that. He will have lost his right to social housing for the future. I know that there are many, many cases of people who should have a council house and can't get one for whatever reason but if the system is wrong then why blame someone for doing exactly what the system is set up for and allows them to do?

[redcrx]

everclean,
Lostsheep has just inherited a house which is obviously habitable if he/she is able to live there and rent out the council house. Id say that puts him firmly on the housing ladder and without a mortgage, more than many people. It appears to be nothing more than greed and i hope that the council have the sense to stop it

[fairline]

The real issue here (aside from the morals) is that if you bought the property and then had to move, say because of work or to look after a relative, yet were prevented from selling by the Right to Buy conditions, then most lenders would be sympathetic and would approve the letting.

[EverClean]

The alternative is to raise the money on the house you have inherited -by getting a mortgage. Then you could buy the council house outright and do whatever you please with it.

[gsr600]

i went down this road (a few years ago) - to buy a council property after residing in it for 10 years, my council tax band at the time was C( up to �68k )they valued it at �110k -or to me with discount for �70k - then the council sold off some of their stock to a housing association as a job lot for roughly �10k per house !!! Thats why there isn't enough properties for deserving people.
i would have given �10k anyday but thats not allowed of coarse.