Help: Buy to Let Mortgages

mrsheen_2

Hi,

3 years ago i bought my home (a maisonette in the city centre). I'm now doing the place up and looking to sell and move into a bigger house (with a garden!)

Basically, I've recently been toying with the idea of keeping hold of my city centre place and renting it out. I would then use the equity in the property (cost £30,000, after improvements to every room, worth in excess of £75,000) as a deposit maybe, to put down on a larger house, and have the rent covering my mortgage repayments.

I'd be interested to know what people's opinions are and what you might do...

Thanks for your time.

Chris.

martinhp

Good Idea

I have done this myself (I couldn't sell my place but rented out to the 1st couple that came to look at it) they have been there (and paid my mortgage on it for the last 18 months )
You need to contact a good independent adviser to go over your options thoroughly

payless

I have done similiar myself in the past- and perhaps then sold out too early,

remember you will have much increased borrowing- so make sure you can afford it, in case the maisonette does not produce the income you believe
( voids, non payers)

Also rememeber you are exposing yourself much more to the property market ( and effectively "geared " investing) and would be hit harder if prices did fall. ( not saying they will)

mrsheen_2

can anyone recommend any independant FAs? would my local mortgage advice bureau be able to give me some good advice?

martinhp

can anyone recommend any independant FAs? would my local mortgage advice bureau be able to give me some good advice?

I can recommend me ::) email martin@hendersonponsford.com

payless

would my local mortgage advice bureau be able to give me some good advice?

hard to say - think they are in effect" local franchise" - so would depend on individuals, has someone recommended that branch? do they charge fees?
poss worth speaking to them at least?

seem to remember they have a connection with large insurance firm (could be wrong)


Personal recommendation goes far in this business.
-not sure it should be quite as personal  as Martin recommending himself  ;)   - but why not give him a try for his cheek
( check whether he charges fees)