House next door - mortgage dilemma

richard001

Hi everyone

The house next door to me has come up for sale and I'd like to buy it then rent it out. Theres literally only one Buy to Let mortgage I can get and thats with The Mortgage Works.

I've been told by a broker today though that The Mortgage Works won't allow a mortgage on a house next door as they think you might knock the houses through into one (something I have no intention whatsoever of doing).

Never heard of anything like this before, do most companies have this policy or is it just The Mortgage Works, or is this broker just talking rubbish? I'm hoping this isn't the case as all my plans are finished.

I'd greatly appreciate any advice.

Thank you, Richard

lincroft1710

Why not just ring/email The Mortgage Works and ask them?

richard001

They're shut all weekend and its really worrying me. Also wanted to know if this is the case with alot of mortgages, I've never heard of anything like it before.

justjohn

Why not remortgage your own property and then use the dosh for next door?

j

G_M

Why would you want to live next door to your tenants? They'll be knocking on your door at all times of the day and night: "lost the keys"; "bulb gone"; TV doesn't tune"...........

JQ.

G_M wrote: »

Why would you want to live next door to your tenants? They'll be knocking on your door at all times of the day and night: "lost the keys"; "bulb gone"; TV doesn't tune"...........

Totally agree with G_M. I think you're absolutely mad to want to live next door to your tenants. What if they're noisy or annoying, you can't just chuck them out. If you do end up with issues, you'll be reminded of the fact 24:7.

What about how it affects rental demand? If I was a tenant, there's no way I'd chose to live next door to my landlord. I wouldn't be surprised if you struggle to let it once potential tenants realise their Landlord is next door. And those don't run a mile will most likely be the one's who are knocking on your door 3 times a day, every day.

silvercar

I have heard of this. A friend wanted to buy two student properties next door to each other and struggled to find a lender for the second.

GMS

TMW will not do this. Most lenders will not allow a residential property next to a Buy to Let.

Income is also an issue according to your other thread.

You are below minimum income level for the vast majority of BTL lenders and your scenario hinders you further.

You could try a commercial lender, may get some joy there but be prepared for higher rates

Werdnal

JQ. wrote: »

Totally agree with G_M. I think you're absolutely mad to want to live next door to your tenants. What if they're noisy or annoying, you can't just chuck them out. If you do end up with issues, you'll be reminded of the fact 24:7.

What about how it affects rental demand? If I was a tenant, there's no way I'd chose to live next door to my landlord. I wouldn't be surprised if you struggle to let it once potential tenants realise their Landlord is next door. And those don't run a mile will most likely be the one's who are knocking on your door 3 times a day, every day.

ITA with this. Plus if the tenants cause anyone else in the street the slightest hassle, they will be knocking on your door moaning about it too.

If you are really keen and committed enough to want to take on a BTL, then don't buy a property on your own doorstep.

Plus, do you really know what you are letting yourself in for? Have a read of this post, so you fully understand the "letting business" you are planning to embark on

http://forums.moneysavingexpert.com/showpost.php?p=41160642&postcount=12

- yes becoming a LL is a business venture, with all the legal and cost obligations that entails.

Do yourself a favour and put a few miles between you and a potential BTL and keep the tenants at arms length!