I don't think the OP bought his AH property with the expressed intention of becoming a property investor. It's quite normal for someone who's young, free and single to up sticks and do a bit of travelling. However what's not normal is for someone who is this way disposed to undertake, or be allowed undertake, the financial commitment that is servicing a (35-40 year?) mortgage.
Maybe the AH scheme should have a lower age limit.
This isn't a criticism of the OP but you have to accept the fact that you made a huge financial commitment, you may not have really been ready in your life to do so but it's done now. This comes with all sorts of legal strings attached. This is life.
Yeah - surely the least that local authorities could do is to subsidise wannabe landlords in buying their first investment property...
Excellent points made here. Certainly from friends (and what I have read on here) a lot of young people dont realise the depth of the commitment until the deal is done.
That's not what you said here:I don't want to be a landlord ...
I intended to go traveling next year, at the moment I have one person sharing my 2 bed apartment with me which I think is allowed but I wanted t rent out my room too which would mean that both rooms are rented out.
I just can't really understand how they expect your situation in life never to change!
hmmm but how would I come up with the rest of the money, I mean if I could have afforded the clawback etc I would have bought it privately in the first place
I did read the mortgage agreement but I can't remember anything about renting it out, regardless I still would have bought as I wanted to settle down too. The best thing I ever did was buy my apartment, I love it and it's my home but sometimes things happen that we can not forsee, things happen in your career, things happen in life that can't always be planned for. When I took out the mortgage I didn't realise I was signing a guarantee that nothing unexpected would arise! if you don't mind me asking what are you going to do when you have kids or get married etc?
ps: just so we are clear on this I have no intention of pulling the wool over the council's eyes, I think the AH scheme is great and I feel very lucky to have been given the opportunity to get a great apartment in a great place. I hate the idea of people taking advantage of it and I wouldn't do it myself.
I would have thought that the contract rather than the mortgage agreement would be the place to look?I did read the mortgage agreement but I can't remember anything about renting it out
It's your responsibility to anticipate, plan for and deal with such matters - not the local authority's etc.but sometimes things happen that we can not forsee, things happen in your career, things happen in life that can't always be planned for. When I took out the mortgage I didn't realise I was signing a guarantee that nothing unexpected would arise! if you don't mind me asking what are you going to do when you have kids or get married etc?
Your purchase contract should clarify. Or contact the LA and/or your solicitor for info/advice.so how does the buying them out thing work, my clawback is like 45% or something, what would that mean?
affordable housing does allow for renting out in certain circumstances - i.e living abroad for a year etc but the fime on the clawback freezws - i.e if your clawback is 20 years and you go travelling for a year but rent the house/apt out the time is calculated on you living in the place for 20 years - if you contact your council they will clarify this - i did ask about this when applying (in case i ever took a career break and wasnted to travel for a year or two ) and this is what i was told
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