Renting my house and using equity to buy

Sammy85_2

Take a look at the local area for comparable properties. That will give you a good idea of what rent you can expect to achieve.

Milliewilly

ecclesto wrote: »

Been to see an advisor tonight and know a little more about it now. Spookily, someone at work might want to rent my house for 2 years so I won't need to use a letting agent. If an EA has told me to expect between £700 and £750 per cal month, how much can I realistically expect to get, bit wary as they might tell me an inflated figure just to get my business.

Don't mean to be rude but at 56 how many years are you expecting to pay the new mortgage back over (or rather how long will the bank give you)? My Dad remortgaged at 53 when he and my mum split and he could only get 7 years to pay off the mortgage (and he was in financial services too!)

ecclesto

Dont want to take new mtgage out beyond 7 years as that is how long I have to work for! Do want to sell my house once the prices start to go up. How and where do I see how much houses have actually been rented for?

new_home_owner_3

brit1234 wrote: »

Thats not true, thats false buy to let spin talk. Your property only went up that much because it got caught in the biggest housing bubble in history which is set to deflate.

Everyone knows homes maintained sustainably go up with inflation unless you add value.

What value have you added to stop you home plumeting in price as rates go up?

Im willing to take the gamble and ive got enough equity in both of my properties to take the gamble, thats my choice, like i said my one house what i rent out now was valued at 150,000, we could have sold it but whats the point we our earning nearly 300 pound a month from it after tax.

If i keep it 10 years we will have earnt 36000 pounds from it, i cant see it dropping 36000 pounds in that time, but even if it did we could still walk away with well over 25000 pound.

new_home_owner_3

ecclesto wrote: »

Dont want to take new mtgage out beyond 7 years as that is how long I have to work for! Do want to sell my house once the prices start to go up. How and where do I see how much houses have actually be been rented for?

You have plenty of equity, just ask for a residential mortgage for 85000 pounds, but tell them you may be renting your property out, tell them it could be two months, it could be a year or two.

You havent got to tell them your going to do it straight away, but tell them you need the option and would it be possible and what are the implications.

If it was me i would bank the money and then stay put for 6 months, and then ask for consent to let, then if they honour what they told you they would, you can now approach another lender for another residential mortgage.

If you are buying a btl property you do need a btl mortgage but the house your our going to rent out is currently your home, so if it means hanging on a few months to get a residential rate do it, as it will save you a lot of money.

ecclesto

Would the mortgage companies let me change after 1 month of a residential mortgage to buy to let? Found a couple from work who want to rent my house for £650 pcm and want to move asap! Never been a landlord before so need to sort loads out as well as 2 mortgages.

new_home_owner_3

ecclesto wrote: »

Would the mortgage companies let me change after 1 month of a residential mortgage to buy to let? Found a couple from work who want to rent my house for £650 pcm and want to move asap! Never been a landlord before so need to sort loads out as well as 2 mortgages.

you can ask them and see what they say, just tell them you want to remortgage to do improvements on your house but you will definaltley be renting it out in the future and ask if it will be a problem, if there is they will tell you.

But im sure the right lender will let you take the residetial mortgage and say there will be no preoblems getting consent to let, if they want the business from you they will let you have the mortgage especially with your equity.

Like i say if you dont ask you wont get, its up to you if you dont want to ask, just take a btl mortgage.

HellsGranny

I investigated Equity Release a short while ago, and one of the stipulations is that you use a part of any equity released to pay off any mortgage on the property, so it probably isn't really feasible in your situation.

Cheers, HG

ecclesto

Have had nightmares about all this! Phoned my building society and they said once I had tenants in they would charge me £125 annual fee for the first year and £105 each year after and add 1% to my interest rate for the btl part of the mortgage. Thinking of paying off the £5000 I owe with money in premium bonds which is doing absolutely nothing at all for me and then don't have to mess with the building society. Have decided to rent a room in a house when I move which will enable me to save quite a lot of money and give me breathing space to look around for a house.

new_home_owner_3

ecclesto wrote: »

Have had nightmares about all this! Phoned my building society and they said once I had tenants in they would charge me £125 annual fee for the first year and £105 each year after and add 1% to my interest rate for the btl part of the mortgage. Thinking of paying off the £5000 I owe with money in premium bonds which is doing absolutely nothing at all for me and then don't have to mess with the building society. Have decided to rent a room in a house when I move which will enable me to save quite a lot of money and give me breathing space to look around for a house.

thats a good deal the bank have offered you, a lot of these btl mortgages are nearly 6 percent and the fees are massive.

I would try other banks ad building societys, my one i pay 199 pound every two years and my rate stays the same, its saved me a load and im on a five year fixed deal.

Your okay doing what you say you are going to do but when you come to buy where wll you get your deposit from?