• Remortgaging A Right To Buy

    By Guest on 13th Apr 2016

    I brought my flat throught the right to buy however now need to move as having a family etc. I want to remortgage it to get some money out to buy a new place and rent this one out. i am only 1 year into my 5 year discount. I am able to do this without having pomission from my local council?

  • 5 Answers

    By hslegalsolicitors on 13/04/2016

    You are not and you will not get permission. During the first 5 years you can only remortgage to pay off your existing mortgage or to raise money for improvements and you absolutely cannot rent the property out

  • By Guest on 13/04/2016

    Thanks for your answer. However, some information you have provided is incorrect. You actually are allowed to rent out the property if you have consent from your mortgage provider which costs a reasonable fee and this does not effect your lease. I am trying to find out if they is anything in the housing act that states you can not remortgage your property to raise money other than to do house improvements?

  • By hslegalsolicitors on 13/04/2016

    With respect the information is not correct. All transfers ( for freeholds) or leases (for leaseholds) made under the provisions of the right to buy legislation contain a covenant against letting within the discount period and if omitted from the document the covenant is implied by statue. All mortgages have to be for an approved purpose and raising funds fote the purchase of snother property is not an approved purpose under the housing act.

  • By Guest on 13/04/2016

    Thaank you for your reply. Its very helpful . Would you by any chance know the section of the housing act this relates to?

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