advice about let to buy

abba_2

Hi, i'm new to this site and a new landlord to be. we are in the process of getting a buy to let mortgage on our present home, property is valued at £170,000, remortgage will be for £105,000 or £120,000 depending on mortgage survayors rental valuation, due out on Monday. we have 6 bedrooms, 2 bathrooms, a kitchen, large dining room & a sitting room. There is a college nearby, so we are in a good location for students. i estimate a rental income of approx £1,340 a month. depending on the valuation we should either have £500 or £350 a month profit. mortgage payments interest only are £750 or £550 a month. i have taken in to account tax and insurances, need advice about rent guarantee and using an agent, which would cost around £180-£200a month. our present mortgage is for £60,000 so we would be using equilty to purchase a new home. how difficult is it renting your property?

abaxas

HMO ALERT!

Read up on this first before you rent it out. If not, enjoy your time in prison.

barnaby-bear

abba wrote:

Hi, i'm new to this site and a new landlord to be. we are in the process of getting a buy to let mortgage on our present home, property is valued at £170,000, remortgage will be for £105,000 or £120,000 depending on mortgage survayors rental valuation, due out on Monday. we have 6 bedrooms, 2 bathrooms, a kitchen, large dining room & a sitting room. There is a college nearby, so we are in a good location for students. i estimate a rental income of approx £1,340 a month. depending on the valuation we should either have £500 or £350 a month profit. mortgage payments interest only are £750 or £550 a month. i have taken in to account tax and insurances, need advice about rent guarantee and using an agent, which would cost around £180-£200a month. our present mortgage is for £60,000 so we would be using equilty to purchase a new home. how difficult is it renting your property?

HMO so you'll have to have:
- mains fire alarms
- fire doors on all rooms
- HMO license costs
- they tend to be more stringent on fuse boxes on HMOs
- if more than 2 floors, fire escape/fire escape corridor
- I think you have to provide a bathroom (so two ok), kitchen and cooker (maybe two cookers/fridges in kitchen ok?) for every 5 people, which is why 5 is HMO cutoff often.

prudryden

As the previous posters stated, an HMO classification won't be pleasant. Check your council's web site for their rules. I am not sure how student lettings apply.

abba_2

abaxas wrote:

HMO ALERT!

Read up on this first before you rent it out. If not, enjoy your time in prison.

hi, i've spoke to my local council and have been told i won't need a HMO licience as i have 2 storys, they know 6 will be sharing and their rules are 3 storeys and 5 or more sharing

prudryden

abba wrote:

hi, i've spoke to my local council and have been told i won't need a HMO licience as i have 2 storys, they know 6 will be sharing and their rules are 3 storeys and 5 or more sharing

That's good news!