Buying a house - can you rent it out shortterm?

Moofin

Hi there,

We're first time buyers and are in the process of buying our first property. Our mortgage application should soon be approved.

My OH and I had an idea about renting the property for 6 months so that in six months time we'll be able move in with a lot more savings to do the house up nice.

My question is, would we need to get a buy to let mortgage instead or could we keep the same mortgage we're on as we're only planning to rent it for a short amount of time?

Sorry if this is a really ignorant question - we're new to all this and don't know if this is a feasible idea.

Thanks for reading :j

G_M

You would need consent to let from your mortgage lender, who may charge and/or refuse.

You also need to consider insurance (different), legal responsibilities, possibility of tenant defaulting on rent/trashing the place or refusing to leave, Rental overheads ........ etc.

Movies_in_Running

You'll almost certainly be in breach of your mortgage contract if you rent the place out.

If you go ahead and do it anyway you might be living a nightmare when the tenants trash the place or refuse to leave.

Move in, enjoy it, have a snuggle and don't worry about 'doing it up' too soon.

BitterAndTwisted

If you are a novice I would suggest in the strongest terms possible that you do not consider this option. The pitfalls for the unwary are manifold

Movies_in_Running

You see, two of us telling you about the place being trashed...

Move in, have lots of fun.

<sebb>

Can you just put off buying the house for a bit and save up the money for doing it up instead?

Otherwise, if you do decide to follow your plan please note the following:

1. Your mortgage company is unlikely to like allow this if you are applying for a residential mortgage. It could be seen as mortgage fraud.

2. If you do decide to ignore 1, please at least be honest with the prospective tenants that it's a short term let. As a tenant, it's incredibly frustrating to think you've settled in to a new place only to find out the LL kicks you out at the first opportunity.

3. There is no guarantee the tenant will leave when you ask them to. Be prepared for delays of up to 6-7 months plus legal fees if they decide to be difficult.

PasturesNew

There aren't many tenants that would even consider a 6 month let because of all the costs/hassle to get in and out of it.

Moofin

Hi all!

Firstly, thanks so much for taking the time to reply - this forum never ceases to amaze me with all the helpful people

I think after reading your thoughts we will definately just move in and do the home improvements gradually.

In answer to someones question about holding off buying a house, we could do this but the house we're buying is a reposession and so if it goes through ok we would get it for about £15k less in that area (so fingers crossed it all goes well).

We can afford the house - it was just an idea to save up more money before we moved in. However, if it would entail getting a different mortgage plus the idea of unruly tenants I think we'll be more than happy to move in and snuggle up!!

Thanks again everyone

hazyjo

You could always take in a lodger for 6 months or so to make a bit of extra cash, or rent a room out during the week... Friends of mine took in a lodger for a while to ease a few financial worries. Am sure you want to spend as much time together as possible in your first home, but it could be a very short term option to make a bit of cash.

Personally, I'd do the house up later and not take anyone in, but it might be an option for you

Jx