Moving house - Thinking of letting

[Mr.James]

Hi,

I'm looking to buy a new home as I'm having a 3rd kid later this month and need more room. This also means I really could do with moving asap. I currently own my own home, but due to the current market, it's worth about £10k less than what I paid for it.

Not wanting to have to take a £10k hit, I've looked at the price I can rent my current home for roughly the same amount as my mortgage costs. This gave me the idea of letting my house until the market recovers and then flogging it at a later date so I don't lose out.

Has anyone rented out a place they pay the mortgage on? Can I rent just rent it out with the current mortgage, or do I need to re-mortgage with a special 'buy to let' mortgage?

[macmilm]

Just make sure you get a good tenant....

I got fucked.... unpaid rent, left house like a fucking hovel e.t.c

USE AN AGENT... do not try do it urself as I did..... you might get a few more quid rent, but leave yourself open to get raped by twats !!!

[Geko]

Hi,

I'm looking to buy a new home as I'm having a 3rd kid later this month and need more room. This also means I really could do with moving asap. I currently own my own home, but due to the current market, it's worth about £10k less than what I paid for it.

Not wanting to have to take a £10k hit, I've looked at the price I can rent my current home for roughly the same amount as my mortgage costs. This gave me the idea of letting my house until the market recovers and then flogging it at a later date so I don't lose out.

Has anyone rented out a place they pay the mortgage on? Can I rent just rent it out with the current mortgage, or do I need to re-mortgage with a special 'buy to let' mortgage?

I have.

You need (are supposed) to let the mortgage company know. They can then say whether they are happy to do this or not. The first time, I let them know. Subsequent times I didn't bother. I only had 1 mortgage, so they didn't know any different. A friend of mine has 3 "personal" mortgages and rents all 3 places out. Not something I would do. But thought I'd mention it.

Just make sure you get a good tenant....

I got fucked.... unpaid rent, left house like a fucking hovel e.t.c

USE AN AGENT... do not try do it urself as I did..... you might get a few more quid rent, but leave yourself open to get raped by twats !!!

An agent won't actually be able to do much more than you, if they decide not to pay. They check references, take a deposit and have a contract (tenancy agreement). But if someone doesn't pay, not a lot an agent can do. Still reliant on the law and the way the wheel slowly turns.

[Zippeyrude]

some agents guarantee rental income, but you clearly have to pay them more.

as with estate agents, I have found lettings agents the same parasitic lowlifes that will sell you the world and deliver as little as possible once youre in contract. obviously there are a few ood ones out there but in my experience that is the exception. if you get an agency to manage the property then expect them to filter all repair jobs to their contractors and you may find yourself paying over the odds due to the *cosy* relationship.

a bunch of unregulated pond life

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Try and get your house on the local council list for tenants. A mate of mine has done this and since bought 2 more to do the same.

[Geko]

Try and get your house on the local council list for tenants. A mate of mine has done this and since bought 2 more to do the same.

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This is the best idea. It's what my friends does. He has an arrangement where they take it off him for 3 years. Pay the rent into his account every month. Then, when they hand it back, they bring it up to a good standard again. Redecorating. etc.

[Mr.James]

You lot do know how to put someone off the idea

Sounds like it could be more trouble than it's worth. Ultimately I don't want to lose the £10k, but the flip side is that I don't want to get some shitty tenants that I can't evict without going to court, end up with a trashed house, and for me to have to pay the mortgage on the place with all that going off.

I've made an enquiry about a new house and the estate agency has contacted me today and said that buy-to-let could be an option. I've got a meeting with a financial advisor the Saturday who I'm sure will go through everything in too much detail.

I'll definitely look into getting it onto the council list though and see what the FA thinks about it on Sat. Sounds like it might be the way forward, provided I can get enough cash together. The Estate Agent told me over the phone today that I'd need at least 25% of the value of the house in cash to get a buy to let mortgage. I've prob got about 15% based on the equity in the house. I could find the extra 10%, but it would just mean it comes out of the deposit for the new house and I get charged a higher rate on that.

Thanks all, much appreciated

[macmilm]

Not trying to put you off any more but the cunts in mine.... turned the water off... took the massive hot water (copper I think) cylinder out of the airing cupboard and weighed the bastard in (I assume)

I never got my money back but he did get his 'just deserts' once I caught up with him ;-)

[Geko]

You lot do know how to put someone off the idea

Sounds like it could be more trouble than it's worth. Ultimately I don't want to lose the £10k, but the flip side is that I don't want to get some shitty tenants that I can't evict without going to court, end up with a trashed house, and for me to have to pay the mortgage on the place with all that going off.

I've made an enquiry about a new house and the estate agency has contacted me today and said that buy-to-let could be an option. I've got a meeting with a financial advisor the Saturday who I'm sure will go through everything in too much detail.

I'll definitely look into getting it onto the council list though and see what the FA thinks about it on Sat. Sounds like it might be the way forward, provided I can get enough cash together. The Estate Agent told me over the phone today that I'd need at least 25% of the value of the house in cash to get a buy to let mortgage. I've prob got about 15% based on the equity in the house. I could find the extra 10%, but it would just mean it comes out of the deposit for the new house and I get charged a higher rate on that.

Thanks all, much appreciated

Ha Ha. Just giving you all the facts.

I rented for years. Never had a problem with my tenants until I rented to my friend. When they went, his missus left holes in the wall where she had hung pictures and pots and pans. She also took my curtain rails...!

[Mr.James]

Not trying to put you off any more but the cunts in mine.... turned the water off... took the massive hot water (copper I think) cylinder out of the airing cupboard and weighed the bastard in (I assume)

I never got my money back but he did get his 'just deserts' once I caught up with him ;-)

Cheeky fuckin bastard lol. Some people are just not wired up right. I bet they'd take the cement from between the bricks if it was worth something.

[Mr.James]

Ha Ha. Just giving you all the facts.

I rented for years. Never had a problem with my tenants until I rented to my friend. When they went, his missus left holes in the wall where she had hung pictures and pots and pans. She also took my curtain rails...!

I was thinking about getting one of my mates to rent it. I think it would be better if it was just randoms though. Don't think I'd like to have to kick off with someone I'd been pally with for years. I can imagine the Mrs sending me round to collect the rent, and me coming back pissed coz the pair of us went to the pub with it.

[Mr.James]

Well letting's pretty much out the window. The financial adviser says I've gotta have a 25% of the value of the house before I can get a buy to let mortgage.

I could do it but then I'd not have 25% deposit for the new place and that'll end up costing me more than £10K in interest long term.

Ah well, nay mind

[Geko]

^^^

That's why my friend doesn't bother. He has 3 "personal" mortgages. I assume that it's illegal and I don't know how he gets away with it.

[macmilm]

Wouldn't have thought it illegal.. would have assumed it just voids any/all insurance policies !!!

I did the very same and never had any problems !

[grrrd]

isn't' it a Let to buy mortgage you need? A buy to let is if you didn't have one in the first place, a let to buy is to amend your current mortgage to a tenancy one.

Just about to take the exact same plunge about letting out the current digs whilst buying the next - it is a super scary situation!