Changing from repayment to buy to let, advice needed.

gingeralan

Ladygrim wrote: »

Hello all, I need some advice.
I have a £70k mortgage on a two bed flat that is currently valued at about £130k.

My husband passed away 2 years ago and I am still struggling to pay off the debts and keep up with the mortgage (no - death was not covered in the mortgage insurance).

I am now considering selling the flat, paying off all my debts in full and going into rented accommodation with the remaining lump sum behind me (I am on my own).

I was just wondering, would it be a better option to change to a buy to let mortgage, rent out the flat to cover the repayments (could get about £700pcm for flat) and then just rent a smaller place for myself anyway?

This would then mean I would still own the flat which me and my husband bought together and I would still have that connection to him.

What do you think?

Please give constructive advice/criticism.

Thankyou

LG

Sorry to hear about your situation.

In my opinion you would be best to sell the flat. I do not think it is very easy ti be a good landlord if you have an emotional attachment to the place.

You should also bear in mind you may need to pay the mortgage on top of your rent if it becomes vacant for any period of time, could you afford this?

I used to rent and just to give you the other side of the story, people who were reluctant landlords like yourself tended not to have to funds available to pay for repairs or maintenance as required, meaning they ended up out of pocket as they were unable to save a contingency from the amount earned in rent.

I couldn't recommend more strongly to sell now hopefully you will get a reasonable price and can enjoy yourself with the proceeds of the sale, a much better reminder of your loved one rather than taking on the risks and responsibilities of being a landlord.

Hope things go well for you what ever you choose.

silvercar

allyd75 wrote: »

I so need advice on my house too.

We are moving to austalia on a 4 year visa (hopefully to be permanent). House is worth £100,000 mortgage left is £34,000 with 12 years left. We will be renting out but have no idea how to do this. Should i just get a loan for £34,000 and pay the mortgage off then i am free to rent to whoever at the price of the loan, or should i go for buy to let mortgage? We would be using a property management company to look after it as we wont be here.

Any advice appreciated:-)

Any reason not to sell?

If you really want to rent out then you could ask your existing lender for consent to let on the existing mortgage.