deadlybuzz123
Registered User
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- 3
Hi,
I currently live in an affordable home bought back in 2006. For anyone not familiar with the affordable housing scheme here is a brief description. (The scheme was ended back in 2011).
"The affordable housing schemes aimed to help lower-income households to buy their own homes. They offered eligible first-time purchasers the chance to buy newly constructed homes and apartments at prices significantly less than their market value.
If you sell your house within 20 years, you will have to pay the local authority a percentage of the proceeds of the sale - known as clawback. This percentage is expressed as the percentage difference between the sale price and the market value of the house. This amount will be reduced by 10% each year after you have owned your home for 10 years. So, if you sell your home after 20 years, you will not have to pay any clawback to the local authority."
I'm considering buying a new house in the near future but would like to keep my affordable home and rent it out. My understanding is there are some rules in place that do not allow affordable homes to be rented out. Is there anyone on here that knows anything about this and the risks involved if I was to rent it out? If I do rent it I plan on registering as a landlord and paying tax on the rental income.
The main reason I want to keep it and rent it out is to have somewhere for my daughter to live when she's a bit older. I'm worried she won't be able to buy a place of her own given the way the housing market is going.
Any advice is much appreciated.
Thanks
I currently live in an affordable home bought back in 2006. For anyone not familiar with the affordable housing scheme here is a brief description. (The scheme was ended back in 2011).
"The affordable housing schemes aimed to help lower-income households to buy their own homes. They offered eligible first-time purchasers the chance to buy newly constructed homes and apartments at prices significantly less than their market value.
If you sell your house within 20 years, you will have to pay the local authority a percentage of the proceeds of the sale - known as clawback. This percentage is expressed as the percentage difference between the sale price and the market value of the house. This amount will be reduced by 10% each year after you have owned your home for 10 years. So, if you sell your home after 20 years, you will not have to pay any clawback to the local authority."
I'm considering buying a new house in the near future but would like to keep my affordable home and rent it out. My understanding is there are some rules in place that do not allow affordable homes to be rented out. Is there anyone on here that knows anything about this and the risks involved if I was to rent it out? If I do rent it I plan on registering as a landlord and paying tax on the rental income.
The main reason I want to keep it and rent it out is to have somewhere for my daughter to live when she's a bit older. I'm worried she won't be able to buy a place of her own given the way the housing market is going.
Any advice is much appreciated.
Thanks