Converting Home Purchase to Rental Property

reecewatkins

Hi,

Thanks in advance for all help. Here is my situation.

I want to buy a property in the UK using my Help to Buy ISA. So let's say I use my 12k ISA and the government gives me 3k towards the deposit and I buy a property worth 200kish. I plan on living in this property, however, after 6 months or so I might be going to another country to work for a couple of years, I don't want to continue to pay mortgage myself or sell the property.

How easy is it for me to change the property into a rental property? That way, I can have a tenant paying off my mortgage and keeping my home for when I return.

Also, what will I have to provide to prove I have lived in the property for those 6 months? What are the steps I'll need to take to show evidence it was my place of residence for 6 months but now my circumstances have changed and I wish to convert my mortgage to a rental option.

Thanks a lot! :beer:

G_M

You'll need to apply for CTL or switch to a BTL mortgage. Now read:


** Tenancies in Eng/Wales: Guides for landlords and tenants This thread is intended to provide information to both landlords and tenants relating to Assured Shorthold Tenancies (ASTs) in England and Wales.

Topics covered:

* Repairing Obligations: the law, common misconceptions, reporting/enforcing, retaliatory eviction & the new tenant protection (2015)

* Deposits: payment, protection and return

* Ending/renewing an AST: what happens when a fixed term ends? How can a LL or tenant end a tenancy? What is a periodic tenancy?

* Rent increases: when & how can rent be increased?

* Repossession: what if a LL's mortgage lender repossesses the property?

* New landlords: advice, information & links

* Letting agents: how should a landlord select or sack?

foxy-stoat

If you are planning on buying a property here with the intention of leaving the country in 6 months then buying a property probably isnt the best thing to do.

You will need 25% deposit if you want a Buy To Let and the UK government shouldn't contribute to your business plan in this way.

Have you researched the rents in the area you are looking at?
You will also be aware that the tenants will have to deduct the income tax at source and pay the HMRC directly - will the rent you receive pay for the mortgage plus at least 25%?
Have you enough money in the bank for void properties and will you pay for the management of running the business?

Try and invest your money in other areas or do more research as above.

AnotherJoe

I would strongly suggest wait8ng until you get back. It's a lot of hassle renting even if you are in the same country. As a landlord abroad costs will be higher because you will have to outsource everything plus there will be tax issues. And then when yiu get back you might run into issues getting the tenants out.
Plus it's risky, you have no guarantees your costs will be covered and a bad tenant could easily cost you more than the input from HTB.
Wait.

Alice_Lewis

I think it is always a good idea to convert home purchase into rental property. I do not think you will have any problems in your situation.

Cakeguts

I hope that you can afford the mortgage on the UK house and your rent abroad for at least 9 months because that is usually the time that it takes for a case to get to court for a tenant who has stopped paying the rent. If you can't afford both don't buy in the UK when you expect to work abroad.



There is now a lot of competition for tenants from build to rent companies so unless you are buying an expensive property in a very nice area and can charge less than these big companies you could be always getting not very good tenants.



It would be better to wait until you know you will be living in the UK for several years because then you can sell the house if you work abroad again.

foxy-stoat

Alice_Lewis wrote: »

I think it is always a good idea to convert home purchase into rental property. I do not think you will have any problems in your situation.

Yeah go for it....then come back on here asking how do I get out of my mortgage because the lender will not give consent to let!