Anyone rent out their house and rent elsewhere?

NannyV

Hi, we are currently in a 2 bed semi detached house, with our 9 month old son. We have a mortgage of about £173000 - and the house was about £200 before the recession etc.
We would like to have more children but really need to go to a 3 bed, I also Childmind from home so have a conservatory as a playroom, so we would probably need a good sized 3/4 bed house.
But we dont really want a larger mortgage and couldnt afford to repay any more than we are especially whilst we add to our family.

Anyway - we cant get a 3 bed house for the value of our 2 bed - it seems like to get that extra room we have to move to a worse area and a shabby looking house.

So we were thinking of either selling up and investing the money and then renting for a few years, or renting out our house and then renting somewhere bigger for a few years etc.

Has anyone does this?

How do we transfer our mortgage to a buy to let mortgage - does this change anything?

bdl1brick

I like being able to rent sometimes if I want to live in a new area I've done the same thing a few times but just moved back into a property I own now for a while.

You can normally get permission to let from your lender without changing to a BTL mortgage but its probably not worth saying anything to them for a while if you are not sure how long you are doing it for.

If the market improves in the future you can always remortgage the old place onto a BTL deal whilst its rented out and possibly release some money for a deposit to buy something else bigger to live in if you want to.

You can also save capital gains tax if you want to sell your old house because you have lived in it previously.

NannyV

bdl1brick wrote: »

I like being able to rent sometimes if I want to live in a new area I've done the same thing a few times but just moved back into a property I own now for a while.

You can normally get permission to let from your lender without changing to a BTL mortgage but its probably not worth saying anything to them for a while if you are not sure how long you are doing it for.

If the market improves in the future you can always remortgage the old place onto a BTL deal whilst its rented out and possibly release some money for a deposit to buy something else bigger to live in if you want to.

You can also save capital gains tax if you want to sell your old house because you have lived in it previously.

I didnt think about that really - being able to release some money for a deposit on another place if need be. I think we probably had about £30,000 in equity based on the house value 2 years ago though.