Becoming a landlord

phill2-0-0-3

After some thought and descusions on here i've decided to become a landlord as my property won't sell .
I've spoke to a few people on here , and had mixed responses
But the bottom line is the house won't sell.
I have morgages in place for a buy to let interest only for the property I'm in
And a residential mortgage for my new venture . Building a huge exstention on my parents property that they are gifting to me . Planning approval approved

I would like to cover myself to the highest amount
As a landlord
I was going to use one of the company's that cover repairs and when the property is empty . But the morgage companies wouldn't agree to this unfortunately .

I will be geting landlord insurance
Boiler insurance
Insurance for evictions
And going through a estate agency . Will they sort out the deposit guarantee ?
And then I declare with HMRC that I'm a landlord and fill out a self assessment once a year is this correct ?

And the house is in mine and a family members name so I presume we split the profit deduct all expenses .

Sure there's other things I am missing . So any advice would be much appreciated

Blackpool_Saver

Pin back your lugs, you will surely get told on here

davidmcn

phill2-0-0-3 wrote: »

And the house is in mine and a family members name

So you'll be running a letting business jointly with this family member - are they fully on board with this, as you seem to talking lots about "my property" and "I" when it seems you mean "we"?

Lungboy

All houses will sell at the right price.

Keep_pedalling

I do hope your parents know that if this scheme goes pear shaped in any way they could end up homeless.

No one should ever give their home away and loose their main source of security for the term old age.

phill2-0-0-3

Yes the family member is fully on board . As there keen to keep the equity for when they retire . And have a income

WE own £110,000 equity in the house . So if it was to go pear shaped there take this house .

And as for at at the right price . It's as low as were willing to go . Everytime we reduce the house a few doors down reduces the same day . And there's is a 3 bed ours is a 2 . But ours has a single exstention and front and rear drive . And downstairs loo . Which the other place doesn't have . But regardless I can't lower the price any more .
My parents will be secure .
Me or my family member could afford both morgages on one of our incomes . Even if there was no tennent in the house and God forbid one of us lost our job . The morgages would be covered . And my partner works aswell .
And I use the word I or me a lot as I take care of all the finasse for everyone in my immediate family . I would rather not and have it shared but It us what it is .
I'm moving in with my parents to care for them in there older age . With work and living away from them and I have children with my x that I collect regular I just don't have any free time . This is why I am doing what I'm doing
If possible I would like advice on how to protect myself as a landlord to the fullest and anything I should be aware of .

I started this new thread for advice on the landlord part .
Unsure why people have answered questions I haven't asked ?

phill2-0-0-3

Blackpool_Saver wrote: »

Pin back your lugs, you will surely get told on here

I'm hoping I will get told 😄

Keep_pedalling

phill2-0-0-3 wrote: »

Yes the family member is fully on board . As there keen to keep the equity for when they retire . And have a income

WE own £110,000 equity in the house . So if it was to go pear shaped there take this house .

And as for at at the right price . It's as low as were willing to go . Everytime we reduce the house a few doors down reduces the same day . And there's is a 3 bed ours is a 2 . But ours has a single exstention and front and rear drive . And downstairs loo . Which the other place doesn't have . But regardless I can't lower the price any more .
My parents will be secure .
Me or my family member could afford both morgages on one of our incomes . Even if there was no tennent in the house and God forbid one of us lost our job . The morgages would be covered . And my partner works aswell .
And I use the word I or me a lot as I take care of all the finasse for everyone in my immediate family . I would rather not and have it shared but It us what it is .
I'm moving in with my parents to care for them in there older age . With work and living away from them and I have children with my x that I collect regular I just don't have any free time . This is why I am doing what I'm doing
If possible I would like advice on how to protect myself as a landlord to the fullest and anything I should be aware of .

I started this new thread for advice on the landlord part .
Unsure why people have answered questions I haven't asked ?

They may be on board, but I don’t think they or you understand the risks they are taking. What happens to them if you pre decease them, or go bankrupt or get involved in an expensive divorce. What happens if there is a big falling out between you and your parents.

What happens if they ever need residential care? Check out deliberate deprivation of assets.

00ec25

phill2-0-0-3 wrote: »

And a residential mortgage for my new venture . Building a huge exstention on my parents property that they are gifting to me . Planning approval approved

And then I declare with HMRC that I'm a landlord and fill out a self assessment once a year is this correct ?

And the house is in mine and a family members name so I presume we split the profit deduct all expenses .

if your parents are going to be living there but will no longer be its owners are they aware of the impact that gift will have on their inheritance tax position?

how you split the income and expenditure, and thus the profit, depends on what relation the family member is to you?

(are you writing on a phone or is your spelling really that bad?)

pramsay13

Assuming you are in England or Wales forum regular G_M has produced a guide for landlords.

You will find it in a sticky thread at the top of the House Buying, Renting & Selling.

Have you been given a realistic rental valuation?

Have you / will you register as a landlord with the local council?

You used mortgages and mortgage companies (plural) when talking about one property, was that deliberate?

Some property management companies will sort the deposit, but it is your responsibility so make sure you check it is done or do it yourself if not.

In simple terms you declare income and expenses once a year on your self-assessment, but there are strict rules on what are allowable expenses so ensure you are clued up on this.

Are you confident it will be financially viable given that you seem to want to include different types of insurance and cover?

Do the insurances pay out when you expect them to or are there terms and conditions that might make things tricky.

You don't get full tax relief on the mortgage interest repayments if you're in the higher rate tax bracket.

davidmcn

phill2-0-0-3 wrote: »

Unsure why people have answered questions I haven't asked ?

Because you said:

phill2-0-0-3 wrote: »

Sure there's other things I am missing . So any advice would be much appreciated

So we're advising you about significant points which you appear to have overlooked.