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BTL leased to Housing Association


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Hello All,


I'm sure there has been many discussions about this. I'm looking to re-mortgage a BTL that is currently leased to a Local Authority. When this comes to an end in March I will be leasing to a Housing Association. Up to now no mortgage lender will entertain me due to it being leased to the local authority. I'm on a dreadful deal at the moment with NRAM. Does anyone know of any lenders that would lend in this capacity?


Many thanks

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My understanding is as this is such a specialised market similar to HMO's the mortgage products available to you are going to be very limited and with not as attractive rates as "normal" BTL rates. But I assume you are getting a very very attractive rental income which is a lot more than if it was a normal rental which should go some way in compensating you for a higher mortgage rate.

I would also guess you have the same problem sourcing building insurance and having to pay increased premiums.    

You could trying googling HMO mortgage providers because if they provide them there is a greater chance they will also provide what you are looking for or could point you in the right direction.


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If I were you I would consider your other options. These type of arrangement are notorious for the huge wear and tear on a property due the the high turn over of residents  as the council put all their waifs and strays, problem tenants and (ex)druggies who they cant house normally. I have heard also of many cases that the properties are not returned in the same condition as promised. As councils are desperate for these type of properties I bet you could negotiate a high rent if you threaten to give notice. 

If a property is marketed correctly at the right price and in good order your void periods will be a minimum. Have you done the number crunching on what you would save on a lower mortgage rate, insurance premiums and higher rent. You can get really low normal BTL rates at the moment. 

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  • 3 months later...
  • 1 year later...

With a Housing Association such as ourselves (Derventio Housing Trust - covering East Midlands such as Derbyshire, Staffordshire, parts of Notts, Parts of South West (Swindon) and Warwick, Nuneaton etc) you will receive your property back with tenant damage rectified including redecoration and new carpets in majority of cases, we also replace worktops where damage has occured etc and anything else as needed. We have had some excellent feedback from landlords on returns of their properties. And like you mentioned in one of your earlier comments we are able to give the guaranteed monthly rent for 3 years regardless of voids and with no worries over evictions etc. It works well for landlords who want security and a more hands off approach, so it might be worth trying a housing association next time.

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  • 3 weeks later...

Just took our property back from the Council in Luton. We took 17% lower rent also for the void periods being covered and damage to property repaired guaranteed.

Council used to pay us directly but then moved to an agent that forced us to pay 10% of rent to them as agent fees. The agent stopped paying us and 4 months later went bust on hundreds of landlords owed money and ran (made the national news). I even warned the council we where not being paid and they continued to pay the agents.

We was reassigned a new agent with no compensation and stuck with them and they have been good for the most part.

However every year we ended up with costs average £800 - £1200 in repairs, decoration and stolen good such as beds, fridge freezer, washing machine, wardrobes etc. Plus the council standards are also very high e.g. Fire Station wired smoke alarms, and fir for purpose basic furnishing, white appliances etc.

The last council tenant that left did all the above plus vandalized the place kicking a hole in the front door, smashed down stairs double glassed windows, vents on the double glazing, some how managed to gunk up the new cooker and oven fitted a year ago, Damaged the wooded floor, cracked the bathroom sink leading to the bathroom floor all being lifted, and blew the downstairs electrics circuits some how. The council refused to do a visit to check how the tenant had left it and then refused to pay for any of the damages saying it was wear and tear and changing the contract not to cover void periods.

Nearly 4k later out of pocket (to repair it all) needless to say I had no choice but to place it Private market at higher rate.

Sad as I would like to keep doing my bit to help people in need but i just cant afford it anymore especially with all the recent regulations and Tax hikes on landlords.


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In my experience local Councils are some of the worst landlords around. 

Positives = Their tenants are guaranteed tenure, unlikely to be turfed out and their rents are very reasonable.

Negatives = Councils are very, very, very slow at doing anything......repairs, maintenance, refurbishment etc.

We have a council owned bungalow near to us. We know the people, they have had a roof leak & serious guttering leak. They have been waiting months for a repair......which wasn't carried out very well.

There is also an empty council property, been empty for 3 months. They have a long waiting list for tenancies. Youd have thought that they would make a considerable effort to effect outstanding repairs and relet. The private sector would never sit on an empty property for 3 months.


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I would never rent to any local council.  Bad experience 12 years ago put paid to that idea. Never again.

I had a very bad tenant (2009) and I needed to talk to the council about getting him out for anti social behaviour and damage to the property. I contacted the council offices to speak to the housing officer to be told that he was on long term sick leave. There was nobody else available to speak to and that was the end of the conversation. Luckily for me this tenant left the property (in a mess) and moved away within the month on his own accord and I got the property back which I then had to redecorate throughout and repair damage and replace the wooden front door which had been forced open by him with a pry bar. 

 Never again will I act as a branch of social services and back then the rental payments went directly to the landlord and not the tenant thank goodness.

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  • 7 months later...

I strongly agree that local authorities are one of the worst landlords possible. The conditions they provide are too bad, and you cannot even do much about it because they are the authority there.  It is something like a small part of the socialist world here, in the US, because these councils do everything too slow and do not have to compete with anyone in terms of living conditions and the prices.  That’s why, before starting any business with local authorities, I usually have a good and thorough talk with Mortgage Advice Nottingham about all the possible scenarios and what I have to do if something goes wrong.

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