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Reverse buy-to-let so to speak...

Mat_thew
Mat_thew Posts: 2 Newbie
.......................

Comments

  • Yes:

    Call a few big brokers (moneycentre, etc etc- Google "buy to let brokers") and see what they suggest...
  • theartfullodger
    theartfullodger Posts: 15,417 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 27 November 2009 pm30 8:35PM
    But the rates may be painful & some lenders will tell you to p*** off..

    ONLY rent of you can cope with the financial & emotional agrro of the "Tenant from hell" who you can't get out for 9 months whilst you keep paying the mortgage etc./ etc... and legal fees (to get him out) and then he 'phones you saturday 10:22 pm "Toilet's bust wodja gonna do..." "Sorry to hear that dear sir, when did this start" "Wodja goona do... wodja gonna do - dunno 3-4 weeks maybe,.,.. wossat gorra do 'wiv it??" "OK, I'll get my man to call you Monday 1st thing..." "Nah, you gorra fix it nah..>""""


    (PS Yes, you have a legal requirement to fix the gentleman's toilet, notwithstanding his not having paid you for 7 months,.....")

    If you are not sure you can cope, find another business to go into...



    Cheeers!

    Lodger
  • clutton_2
    clutton_2 Posts: 11,149 Forumite
    most tenants are reasonable people, just looking for a decent place to live and if you do all the checks prior to signing an AST - it then become a calculated risk - like any other business

    since you own it outright, and as long as the amount you borrow is MORE than covered by the rental, then i suspect it will not be too difficult to get a mortgage.

    Find a good whole of market mortgage broker who can look at all the deals available.

    i think it is a good plan - but i am a landlord ! - you could even rent the other bedrooms in your new student house to other students whose rental would pay the mortage !

    good luck
  • bundly
    bundly Posts: 1,039 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    Artful dodger has obviously had a bad experience, but so have I. It took me 9 months to get some tenants from Hell out of my rental flat --- HOWEVER, 90% of tenancies go without a hitch.

    I have many friends and acquaintances who are model tenants. All you have to do is CHOOSE YOUR TENANTS VERY WISELY and that means not leaving it up to agents.

    We'll always find prophets of doom, in everything we want to do.
  • bundly
    bundly Posts: 1,039 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    I don't know anything about getting a mortgage BUT Matthew, I will tell you what I did...

    10 yrs ago I owned the flat I lived in. I'd bought it 3 years before, for £12k. I bought a £60k house with a £50k mortgage, and met the monthly payments of £300 by letting the flat. People warned me NOT to let the flat, what about tenants from Hell, etc.

    I also intended to let three rooms in the new house to make income from lodgers. Again, friends issued dire warnings about all the terrible things that would happen, having strangers in the house etc.

    Well, the arrangements went without a hitch for seven years, then I sold the flat and used the capital to pay off my mortgage, so now I own the house outright, I still have lodgers and have a very happy life.

    I did have problems with another flat I owned, but I blame myself because I left it to a letting agency to find me a tenant, which was really stupid. All the time I handle the lettings myself, I have had no problems.
  • Fire_Fox
    Fire_Fox Posts: 26,026 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    I assume you are registered for and paying income tax at present? Are you hoping to get a full maintenance grant on the grounds of being a mature/ independent student? If so you will need to declare the rental income next year, as you need to declare taxable, unearned income.

    However if you sell that flat and purchase a two bedroom property in the university town which you use as your main home, you will be able to take in a lodger for a tax-free income (up to about £4k per year) which will not affect your entitlement to student support.
    Declutterbug-in-progress.⭐️⭐️⭐️ ⭐️⭐️
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