First Time RTB Advice

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    First Time RTB Advice

    Hi All,

    I have recently been accepted on a Right To Buy application on a 2 bed property which I estimate to be worth around £100k (I am awaiting official valuation). My discount should be approx £15k, so the purchase price (hopefully) should be around £85k.

    I am moving to spain in the next 4-6 weeks and I am looking to purchase the property, decorate it then let it out.

    I have done some quick quotes on the internet, but the majority are split between a Buy-To-Let mortgage and a Right-To-Buy... my situation seems to combine the two. What type do I need?

    My other problem is that I dont have much of a deposit (if any) and the maximum LTV I have seen on the BTL mortgage is 95%. Is there a way of somehow releasing some of my discount in the deal to use as deposit and cash to "do up" the property?

    Thanks in advance,

    Mark

    #2
    THis is exactly why i loath the RTB idea. the RTB was set up for ppl to be able to own their own homes and not have to rely on council housing, it gave ppl a step on the property ladder.. instead it has been abused by ppl like you out to make money. In this csae you are depriving a family who cannot afford to buy of a perfectly decent council property. Why not go and find a cheaper property to buy and leave what little council stock there is left for those who need it???

    Rant over!
    GOVERNMENT HEALTH WARNING: I am a woman and am therefore prone to episodes of PMT... if you don't like what I have to say you can jolly well put it in your pipe and SMOKE IT!!

    Oh and on a serious note... I am NOT a Legal person and therefore anything I post could be complete and utter drivel... but its what I have learned in the University called Life!

    Comment


      #3
      Originally posted by justaboutsane View Post
      THis is exactly why i loath the RTB idea. the RTB was set up for ppl to be able to own their own homes and not have to rely on council housing, it gave ppl a step on the property ladder.. instead it has been abused by ppl like you out to make money. In this csae you are depriving a family who cannot afford to buy of a perfectly decent council property. Why not go and find a cheaper property to buy and leave what little council stock there is left for those who need it???

      Rant over!
      Not nice way to treat first-time poster, though. Tut tut.
      JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
      1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
      2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
      3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
      4. *- Contact info: click on my name (blue-highlight link).

      Comment


        #4
        THis is exactly why i loath the RTB idea. the RTB was set up for ppl to be able to own their own homes and not have to rely on council housing, it gave ppl a step on the property ladder.. instead it has been abused by ppl like you out to make money. In this csae you are depriving a family who cannot afford to buy of a perfectly decent council property. Why not go and find a cheaper property to buy and leave what little council stock there is left for those who need it???

        Rant over!

        Did somebody get out of bed on the wrong side this morning?

        Comment


          #5
          ... Nothing aimed personally at the poster.. well maybe a little but my comments were aimed at the idea in general!

          Reason why i loath it so much is that when I moved back to my parents after leaving an abusive ex partner I was dumped on the list for a council property, had to find my own private rented accomodation at 3 times the price of a council place! I struggled for a long time to get myself back on my feet both financially and emotionally. I ended up being dumped off the list again as I was "adequatly housed!"

          I am not saying that RTB was an enourmously bad idea but it is seriously flawed and I have seen soo many ppl but houses on the scheme only to rent them out and get another council place through some loophole or other and do the same again!
          GOVERNMENT HEALTH WARNING: I am a woman and am therefore prone to episodes of PMT... if you don't like what I have to say you can jolly well put it in your pipe and SMOKE IT!!

          Oh and on a serious note... I am NOT a Legal person and therefore anything I post could be complete and utter drivel... but its what I have learned in the University called Life!

          Comment


            #6
            Many thanks for your "opinion".

            "THis is exactly why i loath the RTB idea. the RTB was set up for ppl to be able to own their own homes and not have to rely on council housing, it gave ppl a step on the property ladder.. instead it has been abused by ppl like you out to make money."

            Ok, look at it this way... I have lived in this property for almost 10 years, paying full rent to the Council before being taken over by a housing assoc. 3 yrs ago. At rent of approx £300-£350 per month (bargain I know) I estimate that I have paid approx £4500 per year rent, totalling £45k.

            The company that I work for announced last month that they are relocating to Gibraltar, I have little option but to go with them.

            If I do what you suggest and "give it to those who need it" I would be losing my home of 10 years, on which I have spent thousands on improvements, from Central Heating to New Bathroom/Kitchen.

            I dont know how long I will be staying in Spain, It could be 1 year, it could be 10 years, but either way I dont want to lose my home in the UK. This is not "a way to make money" - I am just securing my home of 10 years.

            I came on here for advice on renting my property... if anyone could advise on my original questions it would be appreciated.

            Comment


              #7
              OP thank you for clarifying your position and now I understand why you are applying to purchase your home. To be honest the thought of relocation did cross my mind but you initial post stank of... "I am buying a council house and buggering off abroad to live on the profits!!" As you say you do not know how sucessful this move will be and as such do not wish to relinquish your home.

              To be honest I am not sure you are allowed to immediatly let your house under the RTB scheme, hence why you cannot find a product to do as you wish. I will email our mortgage broker and see what he has to say and if he can be of help I will send you his details so you can talk to him direct.

              Good luck with relocation and apologies for sounding so harsh.. I promise I have put the soap box away for today!
              GOVERNMENT HEALTH WARNING: I am a woman and am therefore prone to episodes of PMT... if you don't like what I have to say you can jolly well put it in your pipe and SMOKE IT!!

              Oh and on a serious note... I am NOT a Legal person and therefore anything I post could be complete and utter drivel... but its what I have learned in the University called Life!

              Comment


                #8
                Thanks for the reply and I appreciate any advice you can give

                Comment


                  #9
                  Helpful Advice....

                  Hi Clever Dick,

                  I bought my RTB flat in 2001 and believe me it was a eye opening experience, I believe it may differ from borough to borough but I could not rent the property out for the first year or sell for the first 3 years without losing some of the discount. But if you speak to the RTB team at your council they may be able to help you further.

                  Comment

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