Owning my own house but want to go travelling.

Martinsteele

Hi Guys,

Just wondered if anyone has had this problem before and want some opinions on what to do.

I want to go go away for a year or two to travel the world a bit.

I own my own house with more the enough equity in it to rent it out but am in a fixed term repayment mortgage with nationwide, probably with 2.5 years left.

Question:
Will I be able to change it to a buy to let and interest only to get the maximum return or will there be a problem with this. Will I have to say I'm living with parents or anything like that?

Any advice would be handy, I'm just looking for the easiest most profitable way.

Thanks

Martin

dc197

Duplicate of https://forums.moneysavingexpert.com/discussion/5482824

hazyjo

Martinsteele wrote: »

Hi Guys,

Just wondered if anyone has had this problem before and want some opinions on what to do.

I want to go go away for a year or two to travel the world a bit.

I own my own house with more the enough equity in it to rent it out but am in a fixed term repayment mortgage with nationwide, probably with 2.5 years left.

Question:
Will I be able to change it to a buy to let and interest only to get the maximum return or will there be a problem with this. Will I have to say I'm living with parents or anything like that?

Any advice would be handy, I'm just looking for the easiest most profitable way.

Thanks

Martin

Ask for 'consent to let' rather than BTL if it's short term.


Interest only is doubtful although someone else will know more than me. Have you overpaid on it at all?


I wouldn't lie about where you are - if you are letting it out and are a LL there are legal obligations to be adhered to if you're overseas.


Jx

hazyjo

Damn - answered before your dupe warning came up. Grrr. Ta.

Martinsteele

No, Ive never over paid at all.

booksurr

very simple sequence of events which only you can undertake, the internet can't do it for you...

1. ask current lender if they will allow you to have Consent to Let. They may, they may not, their decision, won't know till you ask. They may a) impose a fee b) impose interest rate increase, c) impose a time limit or d) none of the preceding

2. they refuse CTL but allow you to convert to a BTL mortgage. Fees and interest hikes probable. Maximum LTV for any BTL is 75% - hence the question about how much equity you have to date and whether you have overpaid/built up any more besides your original deposit (assuming the later was less than 25% to start with).

3. they may refuse, in which case you will need to re-mortgage to a BTL from another lender. Other lenders won't like the fact that you do not have a residential property as well as a BTL property so your choice of possible lenders will be reduced. For those willing to quote, some may accept you travelling in lieu of another residential property, others may refuse point blank on the basis you have no where to live when you return so it looks like you are attempting to set up a property in the UK at which you might live in the future - a complete no no as far as BTL T&C are concerned.

3. if you do let and then travel you will need a) an address in the UK at which the tenant can contact you (otherwise they have no legal duty to pay you any rent at all) and b) you wil need to register with HMRC for the non resident LL scheme otherwise your tenants must deduct 20% tax from the rent they pay you and pay that direct to HMRC themselves - a very unlikely outcome for most tenants