Changes announced by a mortgage lender will make it easier for landlords to sell to tenants, and for landlords wanting to buy ex-local authority flats.
Nottingham Building Society will now lend on any flats previously owned or managed as social housing but now part of the private market.
This sector is large – an estimated £1m units in the UK.
The society will accept lending on these units up to 85% LTV across both residential and buy-to-let.
It will also accept concessionary purchases allowing private landlords to sell to existing tenants at a discounted price.
House builder gifted deposits are now accepted on new-build properties, provided the borrower matches the gift with their own funds.
And finally, self-employed applicants can also use the repayment of a director’s loan as a deposit source, where the repayment is fully evidenced.
Matt Kingston, sales director at Nottingham Building Society, says: “Ex-local authority flats form a huge part of the UK’s housing stock, yet support for them remains patchy.
“Landlords are increasingly selling directly to tenants.
“Self employed customers are relying more on legitimate capital flows.
“And new build purchases can be made possible only when housebuilders step in to help with deposits.
“None of these are niche scenarios. They are the reality of today’s property market.
“Our role as a modern and specialist mutual is to respond to real world circumstances with clarity and common sense.”
This article is taken from Landlord Today