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renting when on mortgage, costs?
g4jnw
Posts: 46 Forumite
Have read lots of threads but none actually point out the cost affect.
The situation we are in is that I may have chance to move to a better job, dont want to sell our house in the current market climate and would be renting a house where we move to.
This hasn't happened yet and problems may put me off doing it but....
I have a small mortgage £40k plus a loan from the mortgage company of £20k the house is currently worth about £135k.
Im on a fixed rate mortgage of 4.75% which runs out in 2010.
I think it would rent out easily for £550pm and we could rent for the same in the new place.
I haven't spoken to Northern Rock our provider yet as the job has not been offered yet.
What are the likely costs ie: is the mortgage likely to increase? cost of extra insurance? other costs likely (legal etc)
When things pick up the house would easily sell as we live in a rural area in cumbria, the house is semi detached and has fantastic views over the scottish hills at the back and we are a short distance to the solway we are in an area of natural beauty. The house is in good condition with a large conservatory and solar panels etc etc.
I believe that when things pick up the house will soon lift way above my valuation hence not wanting to sell yet.
The situation we are in is that I may have chance to move to a better job, dont want to sell our house in the current market climate and would be renting a house where we move to.
This hasn't happened yet and problems may put me off doing it but....
I have a small mortgage £40k plus a loan from the mortgage company of £20k the house is currently worth about £135k.
Im on a fixed rate mortgage of 4.75% which runs out in 2010.
I think it would rent out easily for £550pm and we could rent for the same in the new place.
I haven't spoken to Northern Rock our provider yet as the job has not been offered yet.
What are the likely costs ie: is the mortgage likely to increase? cost of extra insurance? other costs likely (legal etc)
When things pick up the house would easily sell as we live in a rural area in cumbria, the house is semi detached and has fantastic views over the scottish hills at the back and we are a short distance to the solway we are in an area of natural beauty. The house is in good condition with a large conservatory and solar panels etc etc.
I believe that when things pick up the house will soon lift way above my valuation hence not wanting to sell yet.
0
Comments
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It really depends on what your current lender says. They may increase your interest rate a bit, or they may charge you a "permission to let" fee (around £150). Of course they may also refuse to allow you to let at all.
Other costs include:
Management fees, if using an agency (varies greatly, we pay 15% of monthly rent)
Landlord insurance, as standard buildings insurance doesn't cover everything you require (ours is around £150 per annum)
Annual gas safety certificate (can't quire remember - possibly £50 ish)
Council tax during any void period (avoidable by arranging an inspection visit each time and proving the house is ENTIRELY empty - not sure how this works on furnished lets)
Any repairs/maintenance required
There may be more, and I'm sure someone will be along to point them out soon!0 -
Doesn't sound a massive amount though and maybe worth considering rather than selling at a low point.
Will of course get in touch with Northern Rock if I get an official offer of the job.0
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