'Accidental landlard'

Sami_x

G_M wrote: »

As I say in my linked post, choose your agent with care. They are unregulated, and vary in quality, professionalism, and even knowledge of letting law, considerably!

Furnished / unfurnished. Often depends on area & target market. Students & young people have nothing, so expect more white goods, furnishing, broadband etc.

Older professionals, families etc often have furniture and don't know what to do with it when looking at a furnished place.

My answer? Be flexible! Unfurnished other than cooker & maybe fridge/freezer, but offer to provide more if a good tenant wants it. It's about balancing the cost of furnishing against cost of the property taking longer to let (lost rent) etc

There are also tax implications as you'll see when you research the HMRC link!

edit: love your thread title! Evil landlard getting fat on tenants' profits.......

HAHA... I didn't notice the thread title

We are flexible on furnishings and white goods. I've got a lot of research to do!

kingstreet

Sami_x wrote: »

Its 95% LTV Leeds building society. They agreed £180k but the LTV is £163k for the property that we want to buy.

Advisers in the past have stated that we can borrow up to £220k if we ignore the flat (we owe 60% of it via shared ownership). You might remember me from previous posts regarding that

This is what Leeds criteria says about second properties;-

Second Properties

Applications where the applicant intends to retain a second property can be considered up to a maximum of 80%.
Applications of this nature can be considered, providing the applicant can demonstrate an ability to support both properties.
These cases must be referred, on a preliminary basis, with a reasoned explanation as to why the applicant wishes to retain two properties.

Page 24 of the pdf;-

http://www.leedsbuildingsociety.co.uk/introducers/pdf/standard-intermediary-lending-criteria.pdf

I hope you are within that.

Sami_x

BitterAndTwisted wrote: »

You want to start a family, with all the potential decrease in income and additional expenses that entails and the first property won't even pay for itself? Risky. Very, very risky.

If once you do have a family and you either get the tenants from hell who run up months and months of rent-arrears and it costs you thousands to get shot of them, only to find they've caused thousands of pound's worth of damage, or it's empty for months on end, how will your finances look then? Don't say "it can't happen" because, although not common, it does.

hi Bitter and Twisted lol
Thanks for your constructive advice.That is why I'm on here to make an informed decision. Maybe I should have made myself a little clearer... It is mainly about quality of life. Yes, we want to start a family but only when we are 100% sure we can afford it if things go pear-shaped. Nothing is set in stone and you are absolutely right...we could have tenants from hell but that is why I am on here. I want to do my research and put up as many safeguards as possible.

princeofpounds

Typically properties suited to young professionals, particularly sharers, will have an easier time renting furnished. Family properties on the other hand are often easier to let unfurnished unless it is to an area suited to ex-pats or other 'temporary' residents. Simply because people tend to accumulate furniture with grey hairs!

In renting, it's very much a case of understanding your target market. It's not so much that you will be able to charge loads more money for getting things like that right, but you will reduce the potential for void periods.

Sami_x

kingstreet wrote: »

This is what Leeds criteria says about second properties;-



Page 24 of the pdf;-

http://www.leedsbuildingsociety.co.uk/introducers/pdf/standard-intermediary-lending-criteria.pdf

I hope you are within that.

Thanks for taking the time to pull this out for me. Our mortgage adviser is obviously aware of our situation. I'm not sure what else I can say to that.... hoping we have not chucked £600's worth of fees down the drain. Surely if we weren't applicable we would have been rejected on the initial checks?

Sami_x

princeofpounds wrote: »

Typically properties suited to young professionals, particularly sharers, will have an easier time renting furnished. Family properties on the other hand are often easier to let unfurnished unless it is to an area suited to ex-pats or other 'temporary' residents. Simply because people tend to accumulate furniture with grey hairs!

In renting, it's very much a case of understanding your target market. It's not so much that you will be able to charge loads more money for getting things like that right, but you will reduce the potential for void periods.

Its a one bedroom apartment so most likely it will suit young professionals or a nice old lady (but who am I kidding)! but you are right we will do whatever in getting the flat occupied over how much we will charge.

Fire_Fox

IMO you are unwise to purchase a second place without doing research on the benefits situation or insuring your income. If you have a terrible pregnancy, sick baby or sick mum after birth you might neither be able to work, still have two mortgages. Support for Mortgage Interest doesn't kick in for three months, they may not pay out at all because you have a second income in the form of the rent (yes even if it is 'spoken for').

And as already said non paying tenants happen, as do tenants that trash the place. With only a 5% deposit you are at risk of going into negative equity with the second property too. part of the reason you are in this mess is your partner taking out a 100% mortgage the first time, not taking the time to save up a proper deposit. IMO save up the amount of the negative equity and rent a larger place.

Have you still got debts? You owed £10K last October. Surely you can't have paid that off, saved up a 5% deposit plus costs of buying?
https://forums.moneysavingexpert.com/discussion/comment/56725393#Comment_56725393

Samx41

Fire_Fox wrote: »

IMO you are unwise to purchase a second place without doing research on the benefits situation or insuring your income. If you have a terrible pregnancy, sick baby or sick mum after birth you might neither be able to work, still have two mortgages. Support for Mortgage Interest doesn't kick in for three months, they may not pay out at all because you have a second income in the form of the rent (yes even if it is 'spoken for').

And as already said non paying tenants happen, as do tenants that trash the place. With only a 5% deposit you are at risk of going into negative equity with the second property too. part of the reason you are in this mess is your partner taking out a 100% mortgage the first time, not taking the time to save up a proper deposit. IMO save up the amount of the negative equity and rent a larger place.

Have you still got debts? You owed £10K last October. Surely you can't have paid that off, saved up a 5% deposit plus costs of buying?
https://forums.moneysavingexpert.com/discussion/comment/56725393#Comment_56725393

Thanks Firefox for asking the time to reply. A few things I need to clarify. I will be insuring my income-I'm just not going to choose a policy that my mortgage consultant pushed on me. I'm not getting pregnant next week! But may try next year.

We have saved up for a 5% deposit and have 10k left as a buffer for problems with potential tenants, we are also saving at the moment so if it takes a couple of months then that will go towards fees. We have 0% interest on debt which is currently 8k.

We are planning in overpayments as well. Hope that helps to clear a few things up.

Samx41

Another thing to clear up. I have two usernames. Both SAMs are me. Didn't realise this one was logged onto my I pad. Couldn't remember my password. Sami_x is a log on for the computer.

KME91

One thing we considered very carefully when deciding whether to let furnished or unfurnished, what contingency do you have for replacing things that break? If you have a tenancy agreement which says you will supply a fridge/washing machine/dishwasher, you need to be able to repair or replace them when they pack up. We chose to rent unfurnished to try and reduce our liabilities in that area.