First time buyer, planning a CSL

Meerkat1995

Hi all


I am looking to buy a property preferably in the new year, however depending on the Brexit uncertainty it will be at some point next year.


Now I would like to get a residential mortgage on the basis that I can not get a buy to let as a first mortgage. I would live in the home for 6-12 months, then approach my lender and ask for a CSL. Now I know many lenders do not offer this option so I would choose one which does and is not limited, just a increase in interest.


If this did turn out to be successful ideally I would like to have tenets occupying the property, whilst I stay at home as I am only 23 and my partner is 20, whilst we save some more capital over the next couple of years.


I would like to then either re save enough capital for another mortgage and let the first one snowball or re mortgage once I feel the time is right. If the CSL was granted I would primarily try get some close friends or family in the property however failing that I would use a agency which would provide a fee.


I was wondering if someone could shine some light and advise whether my options are viable, all feedback appreciated, many thanks in advance.

G_M

CSL?
Tenets?

Avoid letting to friends or family (close or distant).

Have you looked seriously into the finance particularly costs, tax, realistic income and profit?

Have you read the sticky?

AdrianC

Meerkat1995 wrote: »

Now I would like to get a residential mortgage on the basis that I can not get a buy to let as a first mortgage. I would live in the home for 6-12 months, then approach my lender and ask for a CSL. Now I know many lenders do not offer this option so I would choose one which does and is not limited, just a increase in interest.

I think you mean CtL - Consent to Let.


Few lenders will offer CtL where it's transparent that that was the intention on purchase.

If this did turn out to be successful ideally I would like to have tenets occupying the property, whilst I stay at home as I am only 23 and my partner is 20, whilst we save some more capital over the next couple of years.

Either save your money NOW, or buy a property to live in NOW. You seem to think that early 20s is somehow too young to move away from home. It really isn't. You are both more than old enough to move away and stand on your own two feet. Why should your parents subsidise your property business?


You may also wish to consider taxation changes, as well as the +3% SDLT that would (currently) apply to your later purchase. That SDLT hike alone will mean that you are "losing" a very considerable period of rental income straight to that.

If the CSL was granted I would primarily try get some close friends or family in the property

Very few lenders will allow tenants with close personal ties to the landlord/borrower, simply because they know that you will be very reluctant to treat them with suitably professional detachment - which includes giving them notice when appropriate.

tlc678910

You can find threads on here by people who bought in 2007/2008 and are still in negative equity. We did and our property has just recovered to around the price we paid now.

Buying a house just before Brexit it's value could go the same way. If this was a home to live in for some time the drop in value is not too important. If it is an investment property and the value falls substantially you will have just thrown your money away.

Add to that when you buy your own property later you will have to pay additional stamp duty If you still own the buy to let, even if you are unable to sell it due to negative equity.

Tlc