Quick question re BTL

zcrat41

Hi guys,

Hoping I could pick your brains. I was wondering what the best way to approach my bank is to get a Certificate to Let? I would prefer to phone due to work but I was wondering if I may get a better response from going into a branch?

I really want to get the certificate rather than go for a BTL. I have just over 25% equity, am 1 year into a 5 year fix with Nat West on 4.8%. I am moving in with the boyf (who proposed yesterday..whoop!!) who's a farmer so has a house already so no mortgage/rent to contribute to there.

Similar properties to mine rent for about £25 a month more than the mortgage. I'm aware thats not considered a great ROI for BTL but due to my circumstances I'll be able to afford the mortgage easily whether I have a tenant or not.

Thanks

ZC

silvercar

I'd phone, mortgages are managed centrally so the branch staff wouldn't have the authority in any case.

Initially ask for temporary consent to let and go from there.

Lobster10

Just to make you aware that Nationwide for example increase your interest rate when you get consent to let this can often make a consent to let more expensive than a BTL. It makes no difference whether you are in a fixed rate or not they will add the premium on to it. I am unsure if Nat West do this, but just bear this in mind.

zcrat41

Thanks guys, good advice so far.

Thrugelmir

zcrat41 wrote: »

Similar properties to mine rent for about £25 a month more than the mortgage.

Net rental income is taxable.

Only the interest element of your mortgage repayment is offsetable against rental income in determining your liability to tax, not the capital part. Allowable business expenses can also be deducted from rental income.

Also allow for 1/2 months void periods per annum as you will have the property empty for periods and not be earning any income.

Property letting is a business not an investment. So worth considering whether you could achieve a better return elsewhere.

zcrat41

Hi thrugel,

Thanks for the advice - as I'm only 1 year into my mortgage the interest only element is pretty hefty!!

I know letting isn't an easy option. My family has a bit of commercial property (I work for the family business) so in terms of our overall portfolio is does fit, although its a bit of an extra in that its in my name and its residential.

I'm not sure where else I could put my money! I feel I know property and how it works an awful lot better than the stock market - I'd be totally out of my depth there!

I know there might be a month or two (or more if I'm unlucky) without a tenant but with interest rates so low I feel its not great in the bank either. As I'd be paying all my bills and my mortgage if I was single anyway I suppose I think that by paying off that mortgage I'm building up more and more equity as time goes by.

Any other suggestions are gratefully received though!

zcrat41

I've had two letting agents round so far and the picture looks rosier than I thought. Seems that they'd put the property on to let at £100 more than my mortgage with a view to pretty much achieving that. Apparently there's a shortage of rentals in my area and both seemed confident!
I've got another one coming round later just to get a 3rd quote.

Fingers crossed!