Getting second charge mortgage against Right to Buy property

[Adam Kahn]

I bought my property under the Right to Buy scheme two years ago.

However, I would like to move to another part of the country for a permanent work opportunity where I would ideally like to live in a property I own.

I currently have just over 200k equity in my RTB property.

I’m wondering if I can take out a second charge mortgage against the equity in my Right to Buy property. The property I’d be looking to buy would be around the 75k mark.

The issue I am specifically looking for advice on is whether doing so would mean repaying part of the discount I was granted by the local authority (under the Right to Buy scheme, selling the property within five years would lead to partial repayment of the discount)?

My local authority is saying that only their legal service department can respond to any such inquiries and they do not take questions from members of the public! Just from solicitors.

So before venturing further down that route, any thoughts would be greatly appreciated!

Thanks!

 

[The Mortgage Broker]

I bought my property under the Right to Buy scheme two years ago.

However, I would like to move to another part of the country for a permanent work opportunity where I would ideally like to live in a property I own.

I currently have just over 200k equity in my RTB property.

I’m wondering if I can take out a second charge mortgage against the equity in my Right to Buy property. The property I’d be looking to buy would be around the 75k mark.

The issue I am specifically looking for advice on is whether doing so would mean repaying part of the discount I was granted by the local authority (under the Right to Buy scheme, selling the property within five years would lead to partial repayment of the discount)?

My local authority is saying that only their legal service department can respond to any such inquiries and they do not take questions from members of the public! Just from solicitors.

So before venturing further down that route, any thoughts would be greatly appreciated!

Thanks!

Hi Adam,
I believe it would mean paying back the discount, but as they have said it is a legal question for their legal department.
Apologies, for confirmation of this all I can do is ask you to make contact with the department in question. Can you direct the question via the legal company you used when you purchased the house?
I will try, from my contacts, to get this confirmed for you but this may take 48 hours.
regards
Darren

 

[The Mortgage Broker]

Hi Adam,
A couple of points that may stop you doing this... What is your intention with the current property if you are moving away? I would assume it would be to let the property out? If this is the case the current mortgage lender would need to provide you consent to let and so would the council.

Now, if you could get these approvals I do have one lender that would lend to you via a 2nd charge which would mean you wouldn't have to pay back the Right to buy discount. I look forward to your response. Feel free to respond via my direct e mail which is [email protected]
regards
Darren

 

[totallyproperty]

Hi Adam,

welcome to the forum! I hope the advice from our resident mortgages expert Darren have helped answer your question

I bought my property under the Right to Buy scheme two years ago.

However, I would like to move to another part of the country for a permanent work opportunity where I would ideally like to live in a property I own.

I currently have just over 200k equity in my RTB property.

I’m wondering if I can take out a second charge mortgage against the equity in my Right to Buy property. The property I’d be looking to buy would be around the 75k mark.

The issue I am specifically looking for advice on is whether doing so would mean repaying part of the discount I was granted by the local authority (under the Right to Buy scheme, selling the property within five years would lead to partial repayment of the discount)?

My local authority is saying that only their legal service department can respond to any such inquiries and they do not take questions from members of the public! Just from solicitors.

So before venturing further down that route, any thoughts would be greatly appreciated!

Thanks!