How quick can I rent a property after purchase?

soapstar88

Hey,

I desperately want to get on the property ladder however due to not having a mortgage I cannot get a 'buy to let' mortgage. Would it be possible for me to buy a flat, then rent out after a few months? Is this mainly down to the lender and there policies? Would I have to switch to a buy to let mortgage given I want to purchase a home?

Thanks!

kayfaz

In short yes it does depend on the lender.

I was with Halifax and they allowed me Consent to Let (CTL) after 6months on a residential mortgage. Very straightforward process, just a quick phone call over the phone and then a letter within 5days to confirm in writting.

At least that was my experience with it, may differ for others.

Remember there's a lot more to becoming a landlord than just collecting the rent each month

theartfullodger

You CAN rent it out immediately but you would almost certainly be breaching your mortgage terms (ie may not..- cf you can drive down M4 @ 97mph but may not...).

As suggested, contact lender: AFTER you've moved in & before getting any tenant.

Pixie5740

So your business plan starts with committing fraud. You might want to rethink that.

soapstar88

Pixie5740 wrote: »

So your business plan starts with committing fraud. You might want to rethink that.

Didn't find that very helpful Pixie sorry. Only come here for advice.

Pixie5740

My advice to you is to rethink committing fraud to get on the property ladder. Why not just buy the property and live in it instead of being one of those adult children still living at home? Then you wouldn't have to lie to the mortgage lender.

theartfullodger

Try this then: My advice is don't build a business plan based on fraud:

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

& if you don';t have the financial & emotional reserves for the "tenant from hell" (or agent-from-hell"..) who doesn't pay for 7 months whilst you keep paying the mortgage, and legal fees to get him out, then 'phones you @ 11:37pm Saturday night with "toilet's leaking innitt" you - "I am sorry my good man, by maintenance team will attend 9:45am Monday" - he "Nah, nah, 'surgent innit" - you "why are matters urgent my valued & respected customer?" - he "well, it's been 3 weeks & the living room carpet & sofa are minging & mushrooms are growing on both"... don't even start... (yes you do need to repair or judge may decline possession order or give him more time..)

Cheers!

PS soapstar eh: What does that tell us please?

kingstreet

soapstar88 wrote: »

I desperately want to get on the property ladder however due to not having a mortgage I cannot get a 'buy to let' mortgage

Really? Who told you that?

Would it be possible for me to buy a flat, then rent out after a few months?

Do you mean purchase a property using a residential mortgage then let it? If so, this is going to be difficult as your intention from the outset it to let it. Consent to let is designed for those whose circumstances have changed who find themselves unable to continue to reside in their homes.

Is this mainly down to the lender and there policies? Would I have to switch to a buy to let mortgage given I want to purchase a home?

Yes. Lender risk analysis confirms owner-occupied property is less likely to end in repossession than let property. Hence the minimum deposit, fees and rates are all higher

soapstar88

Thanks for the link

I think you will find i never mentioned anything about fraud, i wanted advice. If this is fraud, its fraud and i would certainly never go there. Perhaps I should of mentioned I will actually live in this property, I only wanted advice on whether its possible to rent after a short period of time. From what I have gathered from the first post this is possible. Or did he commit fraud?

soapstar88

kingstreet wrote: »

Really? Who told you that?


Do you mean purchase a property using a residential mortgage then let it? If so, this is going to be difficult as your intention from the outset it to let it. Consent to let is designed for those whose circumstances have changed who find themselves unable to continue to reside in their homes.


Yes. Lender risk analysis confirms owner-occupied property is less likely to end in repossession than let property. Hence the minimum deposit, fees and rates are all higher

I was always under the knowledge that a first time mortgage can never be a BTL mortgage? As there are far too much risk involved for the lender.

Yes purchasing using a residential mortgage, living in for 6 months (longer probably) then renting. Ok thanks this makes sense Kinstreet to have an actual reason to rent the property - don't want to commit fraud!!

Herbalus

That makes more sense, and is what I've done. Well, might do.

I've bought a house and am living in it, but I probably wouldn't have bought it without the option to let it out later this year if circumstances change. I call it "keeping my options open while buying a house", which some people will disagree with, as maybe I shouldn't be buying if I don't know where I'll be in a years time, but I could well end up living there for a few years.

The fraud part is buying a house on a residential mortgage with the intention to let it out i.e. that's dishonest. If you buy it to live in and then 6 months later your circumstances change, that's not dishonest.