Renting out my house - total novice - advice please

detroidam

DVardysShadow wrote: »

Yes, your real world, with victimless crimes, indeed.

If you do this and default on your mortgage, it is your tenants who will be evicted. It is your tenants who will have the anxiety of finding somewhere else at short notice and the fear of losing their possessions.

It is not the kind of thing a half decent person would knowingly do - it is more for the dishonest and the foolish.

Get off your high horse!

Who says they are going to default and some Tenant is going to be thrown out of the house??? I'm just saying this it what happens and I know plenty who do it. The banks make enough money out of us without just throwing even more of it away.

I wouldn't tell them and they won't find out.

vickitoria6232

Evening,

We are in a similar position - had three valuations and best one was still £10k less than we owe on mortgage, and then with all fees we would need to find £15k to pay back mortgage cmp. So just not an option.

We live in a 1bed flat and are a growing family which means a bigger house is a necessity. However, given we need at least a 10% deposit for new property, I spoke with Mortgage comp and they actually advised renting out! She found an option for me called 'cosent to lease' which is bit better than btl option - 5.6% and can do it on interest only very easily, provided you have 75% LTV.
Because ours is a flat, we will still have to pay service charge (as rental income wont cover that) but it does mean we can start saving for a new property. Moving back home to mum & dad for 6months so we can save deposit for house and it all sounds good in theory but sure I will have many headaches over the whole thing.

We are renting ours as a furnished flat as otheriwse we will have to pay for storage on top of everything else but dont understand what insurance we need. We currently pay for contents ins. but out buildings insurance comes under our service charge - which we'll still be paying. But, as its my furniture, I assume we need contents ins, too.

My boyf is a plumber and my dad a joiner, so we hope to be Ok with sorting most problems that crop up, but how messy/heavy handed are people?! We've both lived here for 5yrs and managed to not break or ruin anything! Beginning to wonder if its worth moving at all!

Any advice greatly appreciated.

Fire_Fox

If it's a leasehold property you need to either tell or ask your freeholder/ management company, depending on whether there is a no subletting clause in your long lease. Do this in writing by recorded delivery so there are no misunderstandings.

DVardysShadow

detroidam wrote: »

Get off your high horse!

Who says they are going to default and some Tenant is going to be thrown out of the house??? I'm just saying this it what happens and I know plenty who do it. The banks make enough money out of us without just throwing even more of it away.

I wouldn't tell them and they won't find out.

I am not on any high horse. If you think I am, then get out of the gutter.

I think the world would be a better place without your sort as landlords. Not all Landlords default, but the ones who find the need to pull the stunt of concealing a tenancy from their lender tend to be the ones more likely to default, because they only get into Landlording out of desperation.

But if your argument is valid, you could suggest that taxi drivers don't need to have insurance, because paying insurance companies is just throwing money away. It is also playing around with other people's lives.

detroidam

DVardysShadow - I'm not saying they should be bad landlords - the exact opposite, of course they should be good landlord and treat their tenants with respect. That should go without saying.

What I am saying however, is that they shouldn't waste money telling the mortgage company which will only result in higher interest rates and fees. In fact they will more likely default if they have to service higher payments.

There is a world of difference with your comparison - it is against the law not to have taxi insurance.

It won't make a difference to how good a landlord they are and will save money - and a lot of needless hassle - in the process.

SuzieSue

DVardysShadow wrote: »

I am not on any high horse. If you think I am, then get out of the gutter.

I think the world would be a better place without your sort as landlords. Not all Landlords default, but the ones who find the need to pull the stunt of concealing a tenancy from their lender tend to be the ones more likely to default, because they only get into Landlording out of desperation.

But if your argument is valid, you could suggest that taxi drivers don't need to have insurance, because paying insurance companies is just throwing money away. It is also playing around with other people's lives.

Of course you should ask your lender before you rent your property out, however the reason people don't is because they don't know what the lender is going to say. What if you ask them and they say no or increase your interest rate by 2%? What do you do then and by asking them you have alterted them to the fact that you are thinking of letting your property out. If the lender laid our their policy in their terms and conditions then it wouldn't be a problem, but they don't so is it any wonder that people don't trust them and so don't ask them. It is totally the lenders' fault.

NEH

SuzieSue wrote: »

Of course you should ask your lender before you rent your property out, however the reason people don't is because they don't know what the lender is going to say. What if you ask them and they say no or increase your interest rate by 2%? What do you do then and by asking them you have alterted them to the fact that you are thinking of letting your property out. If the lender laid our their policy in their terms and conditions then it wouldn't be a problem, but they don't so is it any wonder that people don't trust them and so don't ask them. It is totally the lenders' fault.

My husband asked his mortgage company and they haven't suddenly bumped up fees or anything. He enquired and was sent the forms if he needed them. Until those forms are completed and a signature is on them the lender won't do anything....As it is we are now selling and the lender hasn't suddenly bumped up rates or anything, well not yet anyway...

When you enquire about anything doesn't mean that you are going to act....

SuzieSue

NEH wrote: »

My husband asked his mortgage company and they haven't suddenly bumped up fees or anything. He enquired and was sent the forms if he needed them. Until those forms are completed and a signature is on them the lender won't do anything....As it is we are now selling and the lender hasn't suddenly bumped up rates or anything, well not yet anyway...

When you enquire about anything doesn't mean that you are going to act....

And that is the problem, all lenders have different policies, some don't mind at all, others will let you let your property if you have to move for work reasons, others will put a limit of one or two years, some will insist you go on a BTL mortgage for which you need a low LTV. There is no consistency. You were lucky that your mortgage lender was quite relaxed about it, but some, especially the smaller builidng societies are nowhere near so accommodating.

NEH

SuzieSue wrote: »

And that is the problem, all lenders have different policies, some don't mind at all, others will let you let your property if you have to move for work reasons, others will put a limit of one or two years, some will insist you go on a BTL mortgage for which you need a low LTV. There is no consistency. You were lucky that your mortgage lender was quite relaxed about it, but some, especially the smaller builidng societies are nowhere near so accommodating.

Standard procedure for most companies....You ring up, they advise of you the costs in our case £250 which we found out before that by asking around and then they send you forms...We were lucky but my point was what's wrong with enquiring it shouldn't be an excuse for people skipping out on the correct way to become a landlord...

SuzieSue

NEH wrote: »

Standard procedure for most companies....You ring up, they advise of you the costs in our case £250 which we found out before that by asking around and then they send you forms...We were lucky but my point was what's wrong with enquiring it shouldn't be an excuse for people skipping out on the correct way to become a landlord...

But why can't they tell you what their policy is before you take out the mortage - it should be in the terms and conditions so that you can decide whether you want to take out the mortage and not be at their mercy when your circumstances change. You are very lucky that all they want is £250. A lot of lenders want to charge a higher interest rate and that is if they allow it at all.