mattk
Member
Registered: 27th Feb 06
Location: St. Helens
User status: Offline
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I have my deposit for my first house now after alot of saving and while prices are low im looking to buy in summer / autumn, Im really not ready for moving out though yet and sort of like the thought of renting it out and having someone else pay the mortgage for me 
does it work like that or can you simply not buy a house on a normal mortgage to rent out, how do you stop dickheads trshing the place and whats the best way to mantain the house?
also fixed, tracker or variable?
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IvIarkgraham
Premium Member
Registered: 27th Mar 04
Location: Ellesmere Port, Cheshire
User status: Offline
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i would get a fixed mortgage for the longest period possible!!
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dannymccann
Member
Registered: 9th Aug 06
Location: Doddington, Lincolnshire
User status: Offline
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Not sure about mortgages, however the only real way of making sure people dont trash it is to either vet the tenant yourself, or word regular inspections into a contract, and also by maintaining a concise inventory for the start and finish of the tenancy.
For maintenance you can either do it yourself if you know enough or know people who can do it for you (like my landlord) or you can pay a lettings agent and they use their own handymen for the jobs. I would advise against that in my own experience, as it isnt their house/investment they really dont give a shit!
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mattk
Member
Registered: 27th Feb 06
Location: St. Helens
User status: Offline
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I didnt know wether you could mantain it yourself or not, Il be doing that then, I know enough people in various trades to do my landlord safety checks
what level of furnish do the houses have to be? or do tennants bring their own
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dannymccann
Member
Registered: 9th Aug 06
Location: Doddington, Lincolnshire
User status: Offline
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You choose, can be furnished, part furnished or unfurnished. Usually you have to provide the basics like plumbed in cooker/hob, shower, sink, cupboards etc, ive seen unfurnished places where tenants have to provide their own fridge/freezer its that bare
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C2RL R
Member
Registered: 28th Mar 02
Location: Redcliffe, QLD
User status: Offline
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i think part furnished you have to provide beds and couches or is that furnished. i actually don't know much about it so i don't know why i'm talking tbh! i'm only in here coz i have a house i want to rent out and i'm looking for info.
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dannymccann
Member
Registered: 9th Aug 06
Location: Doddington, Lincolnshire
User status: Offline
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Well my current house is advertised as 'unfurnished' and it came with
A complete kitchen minus washing machine (with plug in points for washing machine)
Complete bathroom
Rest of the house is empty
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mattk
Member
Registered: 27th Feb 06
Location: St. Helens
User status: Offline
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I was thinking of a cheap fitted kitchen with a gas cooker and hob and a fridge freezer, could probably get a washer cheap too, then a full bathroom with a electric shower, can get all that for free / next to nothing from work anyway
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dannymccann
Member
Registered: 9th Aug 06
Location: Doddington, Lincolnshire
User status: Offline
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I asked my landlord to go halves on a washer and he said he wasnt going to as it meant if it ever went wrong he would have to start footing repair bills for something provided with the property, which is why he left it bare minimum, something to keep in mind
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neoquip
Member
Registered: 12th Aug 02
Location: Nottm
User status: Offline
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quote:
Originally posted by mattk
I have my deposit for my first house now after alot of saving and while prices are low im looking to buy in summer / autumn, Im really not ready for moving out though yet and sort of like the thought of renting it out and having someone else pay the mortgage for me
does it work like that or can you simply not buy a house on a normal mortgage to rent out, how do you stop dickheads trshing the place and whats the best way to mantain the house?
also fixed, tracker or variable?
No, it doesn't work as simple as that, if you're renting it out you get a BUY TO LET Mortgage. these are slightly higher % rates than a 'normal' mortgage and the deposits needed start from about 15% to 25%
The interest only is paid on a BTL also, you an do a re payment but there's no point paying the loan off as you can't get tax relief on the interest you pay and no benefit having it paid off TBH, some BTL you can't release funds from your equity either in the future (HSBC don't allow you to do it, hence no point having a small mortgage with you having a lot of collateral in the property).
If you don't tell your mortgage lender your renting it out, you might have problems if you get problems with a tenant no paying you, the higher interest rate on your mortgage allows the fact they might have problems getting a tenant out if you get re possessed.
Looking afte a property???
check my thread out....
http://www.corsasport.co.uk/board/viewthread.php?tid=468829&pid=6152524#pid6152524
Now, do you want to enter the Landlord game? 
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dannymccann
Member
Registered: 9th Aug 06
Location: Doddington, Lincolnshire
User status: Offline
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Neo has been properly bummed  Thats the risk you take with being a landlord, its shite but what isnt anymore
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mattk
Member
Registered: 27th Feb 06
Location: St. Helens
User status: Offline
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should have sent in the heavy`s 
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bishbosh
Member
Registered: 25th Sep 06
User status: Offline
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So, its not reccomended you buy and rent out on a standard mortgage - but it is possible?
Reason is, i am looking into buying a house for a cousin to rent from me... but i dont have 30%ltv...
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neoquip
Member
Registered: 12th Aug 02
Location: Nottm
User status: Offline
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the mortgage lender looks upon it in the situation if they have to reposess the property they then have the problem of a sitting tenant they YOU put in there without them knowing etc thats why BTLs are slightly higher % rate than a normal rate mortgage. Also a BTL you put 30% ish down so you have colleateral in the property, NOT like a 100% mortgage some people have on normal mortgages.
then you find your RENt will cover the repayments.
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Twiggy
Member
Registered: 15th Oct 04
User status: Offline
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quote:
Originally posted by dannymccann
Neo has been properly bummed Thats the risk you take with being a landlord, its shite but what isnt anymore
He has been bummed because he did not inspect the house on a regular basis. Yes there twats but his own fault imo.
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neoquip
Member
Registered: 12th Aug 02
Location: Nottm
User status: Offline
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you can't keep going round every week, the people who were going to see her to check on her etc weren't allowed past the door on some occation!
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John
Member
Registered: 30th Jun 03
User status: Offline
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Not being allowed in suggests straight away something is up.
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Twiggy
Member
Registered: 15th Oct 04
User status: Offline
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quote:
Originally posted by neoquip
you can't keep going round every week, the people who were going to see her to check on her etc weren't allowed past the door on some occation!
I fully agree that every week is to much, but every 6mths with 2 weeks notice is fine.
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