buy to let mortgages

[Shellywoozle]

Anyone got a property they rent out ?

I am looking into gettin a buy to let mortgage to enable me to buy another house, is this the correct way to go or can I get a normal mortgage..... what us the difference.

I may be tempted once I have bought the new house to move into it and rent mine out..... undecided. Has anyone got any experience in this stuff, is it worth the hassle.

I don't think I will get as much rent to cover the mortgage but its an investment and since my mortgage is not worth peein on I figured property is a security blanket for the future

[Specialone]

Shell, you won't get such a good deal on a 2nd mortgage as what you would on your original one.
Buy to let mortgages are more expensive these days, me and Clair want to look into ourselves in the new year.

Friends of mine that have houses they let out tend to go to interest only mortgages or part repayment type ones to keep the monthly payments low which makes the house self sufficient which is what you want.

Go see an independent mortgage advisor, they can save you a fortune and my one got me us a deal that wasn't advertised by the lender.

[Electro]

If you get a wrong un renting and they cause damage, you might find the insurance is invalid if you have the wrong mortgage Shell. If you do it the housing market is right at the moment to get the most for your money. U aint gonna lose out anyway, prices can only go up. If you are looking at a longer term investment your on a winner :)

[FG1]

Sorry Shelly but I hate the idea of buy to rent mortgages.
It pushes people out of the housing market because prices go up as more people take property off the market just to rent it to somebody who can't get a mortgage due to excessive prices.
Not going to get into a heated debate, just my penny's worth.

[Bri w]

Done it a couple of times. Its hard work but probably the best investment. You'll need to tell the building society if you intend to rent the property out.

As for tenants and the problems they can cause; our current tenants are brilliant but the one we had in the previous proprty... we sold it to him and two weeks later the drug squad raided it.

Make sure you have the right insurance in place.

[maviczap]

Might be pretty hard to get a Buy to Let in the current climate, banks aren't that keen to lend at the moment

Lots of folk got their fingers burnt in the mortgage free for all, when banks gave away mortgages like sweets

Plus I agree with Electro, get wrongun's in then causes you financial stress

[maviczap]

As for tenants and the problems they can cause; our current tenants are brilliant but the one we had in the previous proprty... we sold it to him and two weeks later the drug squad raided it.

Make sure you have the right insurance in place.

Yep, don't rent to any Vietnamese guys or anyone interested in indoor horticulture, like the house down the street from mine.

It was raided and they found 2 Vietnamese in the Kitchen, whilst the rest of the house was filled with green vegitation.

Its still empty without tennents, thats over a year without rent coming in.

[Electro]

Plus I agree with Electro, get wrongun's in then causes you financial stress

I got a great way of sorting that though. Can empty a property in 45 mins, tenants, belongings, everything :)
A mate of mine has had a few issues with a couple of his but always sorted out the removal with no issues.

Never assume that having working tenants will be a safer bet either, i have seen plenty of rented property in shocking condition with working tenants living in them.
Another guy i know will only take tenants that are 40 or above due to previous issues with younger people.

[maviczap]

I got a great way of sorting that though. Can empty a property in 45 mins, tenants, belongings, everything :)
A mate of mine has had a few issues with a couple of his but always sorted out the removal with no issues.

Never assume that having working tenants will be a safer bet either, i have seen plenty of rented property in shocking condition with working tenants living in them.
Another guy i know will only take tenants that are 40 or above due to previous issues with younger people.

Yep, its not their property, they couldn't give a stuff what they do

[Shellywoozle]

Cheers guys I will look into it with financial bods.

Furry ginger one, see where u r comin from but I am doing it to secure my future, I am not doing it to push people out the market. I am doing it for personal reasons, one bein its the semi attached to my current house and I can vet the tenants and I have been lookin to do this for a while.

It's just been renovated and its in the price bracket I can afford.

Sure whoever wants it will pay the right price and win

[kellyjo]

Good luck with it Shelly, id love to be in a similar position, but unfortunately im at the other end being the tenant!!

On paper im the worlds worst tenant - single parent, 3 kids, on benefits. However the reality is that I have a lovely house which I can only afford because my landlords reduced the rent by £200 a month knowing that I want a long term home for my family, and knowing that I will look after it, which I do.

[Shellywoozle]

Good luck with it Shelly, id love to be in a similar position, but unfortunately im at the other end being the tenant!!

On paper im the worlds worst tenant - single parent, 3 kids, on benefits. However the reality is that I have a lovely house which I can only afford because my landlords reduced the rent by £200 a month knowing that I want a long term home for my family, and knowing that I will look after it, which I do.



Why you worlds worst tenant? You sound ok to me chick ..... x

I have a tenant in mind, she is a close friend that is loosin her home and wants to rent but is worried she can't afford, so i am nit looking to gain financially. If i can do this my mate gets a house, I break even but don't get noise when I am sleeping and ob shifts. I also have security when my pension is worth jack.

[Stuuk1]

I got a great way of sorting that though. Can empty a property in 45 mins, tenants, belongings, everything :)
A mate of mine has had a few issues with a couple of his but always sorted out the removal with no issues.

Never assume that having working tenants will be a safer bet either, i have seen plenty of rented property in shocking condition with working tenants living in them.
Another guy i know will only take tenants that are 40 or above due to previous issues with younger people.

This is why there are laws in place to allow owners to visit the property. If owners can't be bothered to check up then they get what they deserve IMO.

If I got in to renting property out (which I do In a couple of years) then perhaps just 3 or 4 times a year I will have a planned visit just to make sure they are keeping to the rules set out in the contract.


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I am here: http://maps.google.com/maps?ll=51.217225,0.245293

[Electro]

This is why there are laws in place to allow owners to visit the property. If owners can't be bothered to check up then they get what they deserve IMO.

If I got in to renting property out (which I do In a couple of years) then perhaps just 3 or 4 times a year I will have a planned visit just to make sure they are keeping to the rules set out in the contract.

True mate but i`ve seen a tidy house reduced to nothing in less than a week, stripped the floors out to the joists and sold everything. An extreme case i know but it happens. If insurances are correct at least the damage would be covered.

[Electro]

On paper im the worlds worst tenant - single parent, 3 kids, on benefits. However the reality is that I have a lovely house.

Dont put yourself in the same light as some Kellyjo. I work for a few lettings agencies and visit many rented properties where the tenants are single parent families. Most of em are the better of the tenants as they do want a home for their family and not a doss hole that some others seem to enjoy. You are obviously doing something right if the landlords are willing to sort a long term agreement out with you :)

[SoulKiss]

Sorry Shelly but I hate the idea of buy to rent mortgages.
It pushes people out of the housing market because prices go up as more people take property off the market just to rent it to somebody who can't get a mortgage due to excessive prices.
Not going to get into a heated debate, just my penny's worth.

+1 on this

[Specialone]

Dont think it's fair to put all the blame on the buy to lets, blame labour for allowing the mortgage boom to explode the way it did.

When the house prices started getting stupid a simple increase on the borrowing rates would've calmed things down, but no, they rode the feel good wave and thought Bolox to the consequences, young first time buyers are paying for it now, you can't blame people for taking the opportunity to make an investment.

[yorkie_chris]

This is why there are laws in place to allow owners to visit the property. If owners can't be bothered to check up then they get what they deserve IMO.

Realistically the law is all on the side of the tenant

[dizzyblonde]

I don't think I could ever rent my house out to anyone. After what I've seen over the road done to a beautiful house by a tenant.

I've been a tenant in a house years ago, that the landlord conveniently forgot to tell the mortgage company about, and because he didn't pay it, I nearly lost my home!

I couldn't biting my nails hoping, even if a friend was a tenant, that they'd look after the place, and paid on time, don't like money confrontation. Plus my house is a heap, and not worth renting!

I've thought about it, but I'd rather sell, and get shot.

[timwilky]

Mate is letting out his house over the road from me. He has had bad tenants (skip owing money, and good ones).

Interestingly he has me listed on the contract as his agent with a right to enter the property. In that way if there are any problems (good or bad) I can get things sorted for him. With his current tenant. I have been in several times. But always for a brew and can I look at his bike.

[Dicky Ticker]

All sounds good but remember you have to declare the additional income which is taxable on top of your current salary

[dizzyblonde]

Aye.....capital gains.

[yorkie_chris]

Capital gains is if/when you sell it, the rental income would have to be declared through self assessment every year.

[N77]

If you haven't been able to sort anything then give me a shout.

I work at a estate agents and have an excellent mortgage advisor that does a hell of a lot of buy to let mortgages.

Rates are very good with buy to lets as you are putting more of a deposit down. You will need at least 25% deposit though of the purchase price so bear this in mind.

Rental can be a pain in the **** at times, you can do as many checks as possible on a tenant but it doesn't always mean it will go smoothly. The best way is to check as much as possible with previous landlords, work references, character references, visit them if you can where they currently live and see how they are keeping the current property.

Let me know...

[Ed]

My advice Shell would be to treat it as a business venture and be ruthless. Insist on a 2 month rent deposit, if the prospective tenant hasn't got it then too bad, someone else will. Make sure you serve your section 8 and 21 notices at the same time as completing the tenancy, it's perfectly lawful. And at the first sign of trouble, don't give an inch.

I say this from experience of acting for landlords - the rent many months in arrear, the house trashed. And client would always say 'if only I'd done something before....'

The world is full of 'if onlies'.

Incidentally self help remedies are illegal. You can end up in prison. Plus this is one of the few cases where a tenant can get exemplary damages. Don't do it.

[thefallenangel]

one of my work mates has a student house and says it's a money spinner but he had a student who basically locked herself in her room with a fire proof door and had to replaster the room after a week but it's the only problem he's had in a few years of it and he also paid his own house off at the time and used the capital in his house to buy the student let which is now with his wage paying of his current house. He did say the red tape of Buy to Let was putting him off.

[Stenno]

Has anyone rented out their property whilst the mortgage company thought they were still living there?

I still have over a year to go on my fixed mortgage but wish to move in with the girlfriend into her place. Am I right in thinking I have to change it to a buy-to-let mortgage? Or is this just for second mortgages?

[Shellywoozle]

Cheers for all ya help guys...... I am lookin at the property at mo and have some concerns. They renovated but seems they didn't bother doing the damp course.

It is a 1930 house that has never had heating system in nor double glazed units. My house adjoining was better looked after and every wall had damp so that was my first job.

The lower floor lebel bricks they have buried under a gravel drive are broken away..... I think they made a boo boo there. If it needs doin the newly plastered rooms will be stripped to waste height ha ha.

All houses on est have had it done but not this one. Mmmm reviewin my idea of buying it now. Can't be bothered with a lower offer and doin work, been there done that.

Blast

[megs]

I rent mine out to friends who look after it, all done legally mind, got permission off the mortgage lender (which is usually £100 per year, but free for me :) ). Make sure all your contracts are legal and your inventory is done by a "qualified" person as if anything goes to court its likely it will be thrown out if you did it. Get landlords insurance too. My mate rents a few of his houses out so I got all the legal stuff from him, otherwise get it managed by a letting agent who will sort everything out for you for around 8%-15% of the monthly rent with a "new tennent/advertising" fee of around £300-£400.

To get a buy to let you will attract higher interest rates and a deposit of at least 25% is required.

[454697819]

Has anyone rented out their property whilst the mortgage company thought they were still living there?

I still have over a year to go on my fixed mortgage but wish to move in with the girlfriend into her place. Am I right in thinking I have to change it to a buy-to-let mortgage? Or is this just for second mortgages?

phone your mortgage company and ask them

[TamSV]

Has anyone rented out their property whilst the mortgage company thought they were still living there?

I still have over a year to go on my fixed mortgage but wish to move in with the girlfriend into her place. Am I right in thinking I have to change it to a buy-to-let mortgage? Or is this just for second mortgages?

I let out a flat many years ago and didn't tell the mortgage co. It's a bit dodgy though, and all your mortgage related mail goes to the old house where it gets eaten.

When my (now) wife moved in with me she let her house out but, as she's more responsible than me, she told her bank. They weren't in the slightest bit bothered and kept her on the same mortgage contract (HBOS).