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Would i be in trouble if - I got a FT buyer mortgage and rented out the property??
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thebrow2000 wrote:Does this mean I will not be insured?
No, you won't be.
In the event of a claim, assuming you told the truth when making the claim (rather than commiting another fraud), the insr co would probably declare your insurance invalid and refund your premium (less an admin fee) and walk away.
landlord's insurance is higher than residential because there's a greater risk.0 -
If you are doing this to just get on the property "ladder" (whatever that is), why don't you just you buy the place with a FTB mortgage which you say you can afford, and live in it yourself? Then there's no issue with either income tax or capital gains tax.
Of course, if it's not a place to live but "an opportunity too good to miss", then that's another matter.0 -
If you can't afford the deposit how are you going to be able to deal with any problems that arise from owning the property or if you dont get any tenants or bad tenants. In the short term I wouldn't do it. Wouldn't the mortgage people grant a right to let only once theres been enough payments to make a 15% cut into the cost of the house? I dunno things you need to think of.Money, Money, Money ..... Banks/Casinos/Bookies give me all you money its a poor mans world....0
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ashcarrot wrote:If you can't afford the deposit how are you going to be able to deal with any problems that arise from owning the property or if you dont get any tenants or bad tenants. In the short term I wouldn't do it. Wouldn't the mortgage people grant a right to let only once theres been enough payments to make a 15% cut into the cost of the house? I dunno things you need to think of.
Because my company will guarantee to rent the property for two years. They are crying out for rooms to house the influx of migrant workers. The direction we are heading we will need more houses for the workers. East Europeans are harder workers and are gradually replacing migrant workers from other countries._____________________________________________
INSERT CATCHY PHRASE HERE0 -
hornetgirl wrote:If you are doing this to just get on the property "ladder" (whatever that is), why don't you just you buy the place with a FTB mortgage which you say you can afford, and live in it yourself? Then there's no issue with either income tax or capital gains tax.
Of course, if it's not a place to live but "an opportunity too good to miss", then that's another matter.
Reason - as stated above
Plus I wanna buy a house an hour away where I currently live!!_____________________________________________
INSERT CATCHY PHRASE HERE0 -
Because my company will guarantee to rent the property for two years. They are crying out for rooms to house the influx of migrant workers. The direction we are heading we will need more houses for the workers. East Europeans are harder workers and are gradually replacing migrant workers from other countries.
So its a company let (which most mortgage companies won't touch, if they knew about it). From what you say, its also an HMO. If so, are your company going to be happy when they they whey are prosecuted by the local council for running an illegal HMO? Are you going to be happy when the enforcement notice for the rectification works arrives from the local council?
(Not being catty, just pointing out potential pitfalls, which appear to be a consideration from the limited info you've supplied.)I can spell - but I can't type0 -
Ah! A HMO is a different ball game! There are so many things you need to apply/consider/pay for ie you need fire doors (my colleague has a 4 bedroomed HMO and this alone cost £2k to fit).
Definately do your homework, a HMO is is a lot more strict when it comes to the law.0 -
Irrespective of your mortgage arrangement, you HAVE to declare the property as tenanted to the insurance people.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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If it is an HMO, you will have no choice but to register. The fine is £20,000. And, on the registration forms, they ask who your lender is. Game over, I'm afraid. Check with your council what they designate as an HMO. Each council is different. Generally, two couples sharing is not an HMO. But, three unrelated persons is an HMO. Confused? Me too!FREEDOM IS NOT FREE0
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the investor that is buying my house will be getting a 100% mortgage and letting it out, and as soon as he dose il be grassing the !!!! up. if you want to make money with property do it the honest way if you cant afford it you shouldn't be doing it0
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