Letting my house

bobmonkeydog

Hi Everyone,

Just wondered if anyone could answer this question...

Our lender ( HSBC) has given us permission to let our house whilst retaining our current mortgage product. We want to keep hold of the house as there is a strong rental market in our area and we are looking at it as a chance for our young son to get on the ladder in years to come.

We want to buy a 2nd property that will be our family home. Ideally I would like to take some of the equity out of my current property to put towards the deposit on the new house. We have approx £45k equity and the property is worth around £130K.

Would we be able to take some of the equity out without it affecting our banks decision to allow us to let? I could always just remortgage on buy to let but I don't want to do this unless I really have to as our current product is very competitive.

Any advice would be much appreciated

Thanks

Rob

bobmonkeydog

Just wanted to push this back to the top to try and get some responses pleeeeeease. :j

somethingcorporate

The only party that can provide any kind of clarity on this is your mortgage provider. It depends on lots of things i.e. what were the conditions of your mortgage (LTV requirements etc).

Give them a call!

Werdnal

Are you aware of the other implications of letting?

You need to get landlord insurance
Gas Safety certificate
Declare income to HMRC

Are you using an Agent?

Even if you are, you need to read up on legal requirements of tenancy agreements, inventory, eviction process, deposit protection etc.

Also, what would you do if the rent dried up through lack of tenant or one that doesn't pay?

It can be a good investment or a complete nightmare - do your homework first!

Nosht

Werdnal wrote: »

Are you aware of the other implications of letting?

You need to get landlord insurance
Gas Safety certificate
Declare income to HMRC

Are you using an Agent?

Even if you are, you need to read up on legal requirements of tenancy agreements, inventory, eviction process, deposit protection etc.
Also, what would you do if the rent dried up through lack of tenant or one that doesn't pay?
I can be a good investment or a complete nightmare - do your homework first!

& make sure that you run it as a business.
I changed Insurance brokers recently to Allan Boswell Group, < £70 compared with over £400 for a similar spec..


Regards,

Nosht.;)

G_M

bobmonkeydog wrote: »

....

Would we be able to take some of the equity out without it affecting our banks decision to allow us to let? I could always just remortgage on buy to let but I don't want to do this unless I really have to as our current product is very competitive.

Rob

Maybe.

Or maybe not.

Up to HSBC.

bobmonkeydog

Thanks for replies. Spoke to the bank but don't think that the guy on the phone understood what I wanted to do!! Will try again later!!





We will certainly be doing our homework - I would never take this sort of financial decision lightly. We are going to use a local agent. Worst case scenario we could afford to keep up the payments quite easily if we didn't have a tenant but hopefully that will not be the case!!I have a meeting arranged with a solicitor friends to discuss legal implications etc.

theartfullodger

bobmonkeydog wrote: »

..........




.......... Worst case scenario we could afford to keep up the payments quite easily if we didn't have a tenant but hopefully that will not be the case!!I have a meeting arranged with a solicitor friends to discuss legal implications etc.

Sigh!!! Oh dear...

Only become a landlord if you have BOTH the financial AND emotional reserves to cope with, say, the "Tenant from hell" or the "Agent from hell" who doesn't pay you for 7 months whilst you keep paying the mortgage (etc etc..) and legal charges to get the b**tard out & then they 'phone you Saturday evening 10:37pm saying "toilet's leaking" and you say sorry I'll get a man round monday & they say "no no now!!!) and ypu ask "how long for??" and they say "3 weeks and the carpets downstaris are all stained..."///

(Some very nice tenants of mine - who pay on-time the right amount- 'phoned up last week - sewage overflow in garden - my builder goes round - obviously been happening "for weeks"... )

Beware: "Hopefully will not be the case" - I agree, but get real, these things can and do happen...

bobmonkeydog

In response to the last post

At no point have I suggested that being a landlord is an easy job and I am certainly not going into it with rose tinted spectacles. Everyone has to start somewhere and My initial post was simply asking a question regarding equity!!

As with all jobs there are things that can go wrong and there is no way of prediciting the behaviour of tenants. Should I encounter these problems then I will have to deal with them in the way that any decent landlord would!!