Can't sell so rent it out and move on.

bo_drinker

Apparently more people who can't shift their houses are renting them out and moving that way. We have had our house for sale for 9 months + one sale fell through. House is mortgage free. If we used a lump sum for 2nd house and had to get a small mortgage, rented house number 1 and used the proceeds to pay mortgage are the mortgage firms happy with this arrangement, what would they secure the loan against 1 or 2. I am self employed so one step up from scum in their eyes. I do my own accounts so I know they don't like this, so that is why I am considering going down that road to be able to move on. Then when things pick up sell house no 1 pay the remainder of the debt and Bobs your uncle ???

geoffky

Can you afford the voids and also have you the time to become a landlord with all the legislation.?

bo_drinker

Not looked in to it very far at this stage. Would let a Letting firm look after renting it out, there seem to be plenty around here, and more agents are getting in on it (I wonder why ?) Voids wouldn't be a problem. Looking at putting up 2/3 of 2nd house price in cash and mortgage 1/3 or there abouts.

In an ideal world we would have liked to have sold but the buyers are not out there, the ones the agents send are on cloud 9 not a clue what is going on, some have not put theirs for sale yet ???

linda4767

Hi bo drinker, I am having the same thoughts... the market is so terrible at the moment and my sale fell through 3 months ago, i was told by the agents if i want to sell it i must reduce it to a "silly price" to get any interest. I have already dropped the price by 25K since the beggining of the year and still no joy! I am just about to start looking into renting my property out this week and taking on a part new mortgage on a house i have fell for. I have been a landlord before and its been a piece of cake for the past five years...so yay i say go for it if you can afford the voids like Geoffky mentioned.

terryw

All in all, looks like a good idea. Self-employment will not bother most lenders with your assets. The mortgage will be cheaper if it is on the owner-occupied property.

The downside is ending up with the really rotten low-life tenants that it is so easy to end up with. With several properties you can live with one, but with one tenancy this could bring you down as well. I am not joking or putting you off.. This is the worst part of being a landlord.

Make sure you really vet the tenants. I shall repeat that. Make sure that you really vet the tenants .Any potential problems or misgivings......forget it and go on to the next applicant. Demand a bond. Do not take "DSS". (Apologies to nice DSS peeps but my advice is to this guy only, in this thread). Take guarantors. Take photographs before and after the tenancy. Really read up on the whole thing. Check the place very often. etc etc etc

Remember that it is extremely difficult to sell a dwelling with tenants there. You have to be a landlord or a seller of a property. The two do not mix.

best wishes whatever you decide.

terryw

Tassotti

If you are going to let it, from a tax point of view, remortgage it on interest only, so that the interest almost matches your rent. The 'investment' would then be tax-free

You would then have funds to purchase your new property.

HOWEVER, after a few years, if your property has reduced in value and your remortgage is due, you could be scuppered.

Advice...reduce the property price,sell it, and haggle hard on your new property.

Being a LL is no fun.

BTLetters have come under a lot of abuse for the way the market is at the mo.

Cantsellhavetorent'ers will become the new target.

Tighter rental legislations will come in, job losses, recession...oh my..think I'll slit my wrists now...AHHHH