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First time landlord advice much appreciated

vicxzy
vicxzy Posts: 273 Forumite
in House buying, renting & selling
Hi,

Due to divorce I have been left with a house I cant sell (with estate agency fees & solicitors fees, paying off unsecured loan with mgt provider etc & house price drop early mgt repayment penalties etc etc it would end up costing me to sell)
Ive already got another house myself & am expecting a baby next month so really cant move back into my ex-marital home (even if I wanted to :S )
Interest only mgt at the min is £304 pm & estimated rental income is £695 from letting agents, can anyone tell me where to start with renting it out?
Ive contacted an agent but I know theres a lot more to it than that can anyone point me in the right direction please?

Thanks so much in advance x

Comments

  • CloudCuckooLand
    CloudCuckooLand Posts: 1,905 Forumite
    Talk to your Lender. Start with getting their 'consent to let'. From the brief details given, it sounds like you won't have enough equity to be able to convince them to give permission. Which will save you spending time on learning about it.

    If they do, browse Landlordzone.com for a few weeks...
    Act in haste, repent at leisure.

    dunstonh wrote:
    Its a serious financial transaction and one of the biggest things you will ever buy. So, stop treating it like buying an ipod.
  • vicxzy
    vicxzy Posts: 273 Forumite
    CloudCuckooLand wrote: »
    Talk to your Lender. Start with getting their 'consent to let'. From the brief details given, it sounds like you won't have enough equity to be able to convince them to give permission. Which will save you spending time on learning about it.

    If they do, browse Landlordzone.com for a few weeks...


    Thanks, Im hoping they do consent to let (equity is around 20-25% its the unsecured loan & early penalty fees etc that make the sale of it unrealistic at this point)
    I think the only other alternative is repossession at this stage :(
    I cant afford to pay for both properties now I'm on Maternity leave.
    x
  • ViolaLass
    ViolaLass Posts: 5,764 Forumite
    If the loan is unsecured, why would you have to pay it back if you sold the house?
  • vicxzy
    vicxzy Posts: 273 Forumite
    ViolaLass wrote: »
    If the loan is unsecured, why would you have to pay it back if you sold the house?

    I know I've had that argument with the lender (Northern Rock) apparantly its their 'Company policy' that any unsecured debts with them are cleared in full when the mortgage is settled... :( x
  • CloudCuckooLand
    CloudCuckooLand Posts: 1,905 Forumite
    Drop the price by 5% to attract a buyer, take the remaining 15%-20% equity to clear the unsecured and fees, job done...

    If you are seriously looking at repossession as the "only other alternative", then you risk losing ALL the 20-25% equity, otherwise.
    Act in haste, repent at leisure.

    dunstonh wrote:
    Its a serious financial transaction and one of the biggest things you will ever buy. So, stop treating it like buying an ipod.
  • dancingfairy
    dancingfairy Posts: 9,069 Forumite
    Hi Viczxy- hope you are well and getting things sorted. Hope everything with the little one is coming on well. Sorry I can't offer any advice with regards to the house. It might be worth trying to get some advice from someone like CAB/CCCS/National Debtline etc as to whether NR can stop you selling the house if you are unable to pay off the unsecured loan - it depends on how much of a fight you want though with them really :(
    Hope things get better for you soon.
    df
    Making my money go further with MSE :j
    How much can I save in 2012 challenge
    75/1200 :eek:
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    All the info you need about letting here....
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