Advice on rental property

dixon82

Hi,

I need some advice on what I should do next in my current situation. I have a property on a residential mortgage but it is let out which I lived in but now no longer want to live in it just rent it out. It currently has over £40,000.00 equity tied into it. I want to build a small buy to let portfolio say a couple of buy to lets. However, during this time I am likely to be working in temping jobs only (probably next 5 years unless offered a suitable permanent position) and keeping my living costs low. I would like to change the residential mortgaged property into a interest only buy to let and release some equity to buy another property to renovate. Is this impossible considering I won't have a permanent job? Would I have to have a residential property in order to do the next buy to let?

I really need advice as to what the best way to go forward would be to build the portfolio.

Advice from someone who is experienced as a landlord most welcome. Thanks.

Werdnal

My only advice would be to ask your lender. No-one here knows what they will say - depends on how long you have had the mortgage, whether you have always paid on time, how much loan to value of the property etc. Some lenders are lenient, some agree but add extra costs and clauses about who you can let to, how much rent you can charge and for how long. Some refuse as it is not in their remit to allow CTL/BTL.

You need to ask your lender, or seek advice from a mortgage advisor (always use someone independent) and give them your specific financial information and get a deal specifically tailored to you. No-one here can tell you - you need to seek your own advice.

Whilst you are at it, read this:

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

So you understand the implications and legal requirements of letting and fully appreciate that there is much more to it than buying a property and raking in the rent!!!!

Your post is a little confusing - are you saying you already let your property on a residential mortgage? If so, you are already breaching the T&C of your loan. Have you sought consent to let? Have you changed your insurance to a letting/landlord policy? If you are already letting it, have you complied with all the requirements of the above linked post?

dixon82

Yes I already have permission to let on the residential mortgage property and it is already let out with landlord insurance and I have been a landlord for a year and a half. I have an accountant and understand the letting business. I have owned the property since 2006 which I renovated ready for letting. I will find an independent mortgage broker and explain my situation. I just wanted to know what my chances are of being able to remortgage the property to buy to let and release some of the equity out of it say £10,000.00 to finance another property? I know there is different criteria such as you need to have a residential property to get a buy to let or you require a permanent job.

Fire_Fox

Welcome! See an independent mortgage broker.
http://forums.moneysavingexpert.com/forumdisplay.php?f=15