Can't Sell So BTL?

costingbunny_2

I'm trying to sell up to buy with my partner but it's not easy in these times so considering renting out. My current lender (at 0.39%) above base rate will not allow me to do this though. Is it worth sourcing a new mortgage to allow this to happen or do I stick it out on the market - it's been on for 3 months with 1 offer from a person who has yet to sell. I owe £100,000 and the house is on for £199,000. Renting looks like a major pain in the rear but just considering it as another option in order to move on. If I did rent, could I get another mortgage OK with my partner - he is mortgage-free?

Any thoughts?

Thrugelmir

Reduce the selling price. If you are in a hurry to sell.

dimbo61

You are on a great mortgage rate and maybe able to port this mortgage rate to your next home.
So if you can build up savings in cash ISA,s
Move your partner in but give him a rent book or tell him he is a lodger ( he can pay you £4250 a year TAX free)
He can build up savings.
Sell your home and buy a place together but see a solictor if you are putting in £100K deposit and he is putting in nothing to protect yourself.
Once you get married everything is 50/50%

costingbunny_2

First reply, thanks but I 'm not desperate at this point & reducing won't help my potential buyer. Second reply, I can't port so not an option. My partner owns his home outright & is much better off than me so that's not an issue. And marriage does not necessarily = 50/50. Was looking for more practical advice if possible. Thanks anyway

Gorgeous_George

Converting your home to BTL is straightforward providing the rent covers the mortgage interest by 125% and you have a 25% deposit. I'd expect a £200K house to rent for around £800 per month or £9,600 per year. Do the sums/speak to a BTL mortgage provider to get the exact figures.

Tenants can be a pain in the rear if you do not look after them. Partly down to plain old good luck but you need a good tenant. Mine are both there for the long term and give me little grief but I enjoy looking after them.

Rather than pay for a BTL mortgage you could sell some or all of it to your bf with him mortgaging his home to fund the purchase. This would save you money as the mortgage rate would be lower and would also mean a smaller deposit would be tied up in the BTL property. You may wish to discuss with a tax adviser the options for offsetting rental income against tax if you go down this route.

So long as the BTL pays for itself there should be no adverse impact on your residential mortgage options. In fact, the BTL income can enhance your mortgage chances.

Just remember to treat your tenats as you would wish to be treated yourself, learn the rules (law) regarding landlord/tenant relationships and good luck.

And FWIW, I think cash ISAs are crap.

GG

Thrugelmir

costingbunny wrote: »

Was looking for more practical advice if possible.

Very much a personal decision. Once you've sold the property you can put cash in the bank. Until then you run the risk that property prices may fall. Or renting the property out becomes either unprofitable or the tenant from hell is in situ.

brit1234

Thrugelmir is right, drop the price. There are so many reluctant landlords out there who rented out thinking things would improve so they could sell again. All that has happened is the market has got worse, lending tougher and prices falling further.

Do you really think things will get better in the next couple of years with all the economic thunderclouds on the horizon?

Crabby_Cripple

RE - HALIFAX ,[ deeply suspect ], 'goodwill payment'.
new to forum cos disability affects manual dexterity so typing takes a really
loooong time! also, was a uttter technophobe until recently so please bear with me.
I am part way through complaint to FSO + would like to know if anyone else is to compare notes etc. And strength in no's of course.
Have posted once before but no reponse. Am I doing something wrong?

Thrugelmir

Crabby_Cripple wrote: »

RE - HALIFAX ,[ deeply suspect ], 'goodwill payment'.
new to forum cos disability affects manual dexterity so typing takes a really
loooong time! also, was a uttter technophobe until recently so please bear with me.
I am part way through complaint to FSO + would like to know if anyone else is to compare notes etc. And strength in no's of course.
Have posted once before but no reponse. Am I doing something wrong?

Start a new thread. Tagging on means you are unlikely to receive a response.