Live in landlord definition, alternatives?

IsThisUserNameTaken

G_M wrote: »

ths idea is a non-starter.

Yup - agreed!

IsThisUserNameTaken

Tiners wrote: »

It depends what this £30k reduction represents as a percentage of your perceived house value?

I can only repeat what I've said previously, ANY house in ANY part of the UK will sell quickly and easily if it has a sensible and realistic asking price... it's only a ''slow market'' for overpriced houses with greedy deluded vendors.

I live in North Wales, certainly not an area perceived as 'hot market' but I've seen 3 houses all sell in less than a week this month alone.. all 3 houses were just realistically priced and certainly weren't at giveaway bargain prices

I'm sure I misunderstood this post of yours from last Sunday then.

Tiners wrote: »

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That's how it always seemed to be in my area, the ones I thought were over priced seemed to sell quite quick whilst the ones that looked more reasonably priced seemed to hang around.

I think buyers have some kind of 'Emperors new clothes syndrome' when it comes to houses... the more expensive one must be the better house, because, well it's more expensive!

Things have changed now though, nothing seems to be selling, over priced or not.

saajan_12

As other posters have outlined, between your daughter’s school location, infrequent visits to the house (not every weekend) and your work location, you cannot call the house your main residence so be a ‘live in landlord’ with a ‘lodger’. However the following options are available:
1) rent short term and sell house, then buy in new location chain free.
- I understand this would be tight with the rent + mortgage, but in the short term are there other ways you can save up? Try asking your lender if they can do a mortgage payment holiday. This way you can scope out the new location and be in a position to buy chain free. Why do you think it would take so long to sell? If the market price is really £30k less than you were hoping, that’s a hit you’ll have to take sooner or later.

2) let house out to tenant and rent in new location.
- This will likely earn more rent than a lodger renting a room. You can claim back tax on the interest portion of mortgages.
- However note you will be continuously liable for rent even if you let house has a void or the tenants get into rent arrears
- Landlord responsibilities (e.g. repairs, deposit protection, gas safety certs) are onerous enough without living 4 hours away.
- This is tax inefficient as you pay tax on the rent income but don’t get any relief on the rent you pay (even if you think of it as offsetting)
- Your 12month limit is likely the max Consent To Let your lender will offer on the current mortgage. However, you may be able to change it to a Buy to Let interest only mortgage to continue this arrangement longer term.

IsThisUserNameTaken

saajan_12 wrote: »

Why do you think it would take so long to sell? If the market price is really £30k less than you were hoping, that’s a hit you’ll have to take sooner or later.

.

Thanks for the really detailed response. It is really useful to have others around as a sounding board and for varied experiences/views. The £30K hit was really an estimation as to how much I'd have to drop the price if I needed to complete within 8 weeks. I was hoping that there would be some way of affording the transition in the short term, but you're right, as you and other posters have said, there are so many other responsibilities involved that under the circumstances, I think it would be too much for me at this stage.