Becoming a landlord

phill2-0-0-3

Keep_pedalling wrote: »

Sorry but you are wrong. You cannot guarantee that you can always provide any care they need and if that happens this will be treated as DDoA by the LA. Could you care for someone with who turned violent because of dementia, or a bed bound double incontinent parent?

No one knows what lies in store for us, accident or illness could prevent you from working leaving you unable to pay the mortgage. Who cares for them if their main carer is too ill or dies before them? It does not sound like your sister is going to be able to

I know you don’t want to hear this, but for the sake of your parents long term security it needs to be said.

I did put a response but it hasn't shown for some reason .

My sister could care for them . Ie cook clean dress and feed if needed

She has a job .
Brownie leader .
And has her own life

But she just needs keeping a eye on .

But my partner will also stay in the house and she's great at all the caring side of things . If she was to move on then I'm sure there would be some sort of careers my sister could get into help .
I can't answer every question Unless I'm in the situation .
And in this situation I'm dead anyway🤷🏼!♂️

I also have £300.000 life insurance
So that would cover both morgages and some left over for my child
If I was unable to work the first 6months I get full pay then decrease .
But I'm sure there's some sort of benefits to help . And that's worse case . But even if there wasn't .
The rental from the BTL would cover the morgage at the other property .
And as everything seems to be worse case .
If there was no tennets and I lost my job and for some reason I couldn't work . And couldn't claim any benefits . Then my sister could cover both from her work And sure my parents would help if needed .

And u state for there long term security ?
If there so bad they need to go into a care home .
How is the house there security as my sister will be there anyway ?

hazyjo

phill2-0-0-3 wrote: »

I'm just hoping it's easier to rent out a house than to sell it .

Generally, no, it's not. I love anything property related, I'm on here every day, I've bought/sold 8-ish properties over the years. Some of those have been hell.

And even I wouldn't want to be a LL for all the tea in China.

Read G_M's guide (thoroughly!). Watch a few episodes of the 'nightmare landlord/tenant' programmes on TV.

phill2-0-0-3 wrote: »

But obviously I haven't take months into account where the property is empty

You should always factor voids into your calculations. I think the general consensus is to lose 2 months a year (10 out of 12 months). Could be out on that so am sure someone will correct me if wrong.

Also, if you're planning on selling again in 2 years, is it really worth the hassle? You'll be back to square one. You'll have to evict the tenants to sell (well, at least it certainly advisable as you've got to be very brave or very stupid to get as far as exchange if buying a tenanted house!) which means prob at least 3 months without rent coming in. On at least 2 occasions, it's taken me over a year from start to finish when trying to sell/move, so who knows how long it might be.

As above, every property will sell at the right price.

babyblade41

I really think you need to take a step back. I see so many threads started on here who really want their idea backing up with positive responses and yet from the get go the whole concept is deemed to fail.

This is one of those threads .

No matter how you look at it it's the way you want to go, but to everyone outside it is not a sensible option for all the knowledgeable posts before mine

After being a LL for many years with a very mixed portfolio , (now pretty much ex landlord ) I found the only property that has prospered is in a very desirable area and the only one I have now has amazing tenants and is their home hopefully many years to come

Your property will sell, it's just too expensive for the area ..sadly a mistake many make when marketing their property first off .

The first few weeks are prime time and dropping the price numerous times just won't work as people still get bored of seeing it .

FWIW I'd take it off the market until everyone is back in school and back to work...September time . Re-do any photographs and don't forget a detailed floor plan and check the actual sold prices in the area and put it up for sale for what it's worth plus a small amount of wriggle room

Your idea has more holes than a colander

MEM62

phill2-0-0-3 wrote: »

It's not deliberate deprivation of assets as I'm moving in to care for them as my dad had a fit in the middle of the night luckily I stayed over that nite as my mum couldn't move him into the safety position and just panicked . So I phoned the ambulance and sorted it all .
And I have to keep a eye on my sister as she has had fits and has special needs .
That's no reason to gift you the house. The property could remain in your parents ownership.
We don't fall out . And they have there own area in the house if we did . I'm not married and never have been . And if I did I would get a prenuptial agreement . Good luck with that.
Why would I go bankrupt I have 0 depts and some savings ?
You never know what life can throw at you. People have gone bankrupt that were sitting in far better financial situations that you - ask any one of them if they saw it coming. However remote you consider the possibility, why take the risk with your parents house?

I would like some help with the landlord side of things if anyone has info thanks

As for being a landlord;
Utilities (plumbing, heating etc) cover is provident. (Mine is through British Gas. They have always proved to be efficient and include the annual gas safety inspection in the cover)
Have the electrics tested and certified as well.
You will need a smoke alarms / Co2 sensor installed and regular checks that it is working.
A decent estate agent is essential. Do LOTS of research on this before signing up with one.
DO NOT forget to protect the tenants deposit.
Study HMRC's guidance on tax and ensure that you keep proper records and complete your self-assessment on time.
Keep a fund to one side (I have six months costs) for repairs, void periods and other ad-hoc expenses.
Prepare for the fact that tenants can be troublesome. (Not all are but you can get unlucky)
Don't expect to get rich.

There will be other things that have not sprung to mind at present but there is something to be going on with. If you do your research properly you will realise that it is far more prudent to be more flexible in what you are prepared to sell the house for and get rid of it.

Lungboy

phill2-0-0-3 wrote: »

But I have been pre approved for both morgages ?

So have you had full applications done? With each mortgage factoring in the other mortgage? You say you only have £1k a month income, so 2 mortgages seems like a lot even if one is interest only.

Keep_pedalling

phill2-0-0-3 wrote: »

I did put a response but it hasn't shown for some reason .

My sister could care for them . Ie cook clean dress and feed if needed

She has a job .
Brownie leader .
And has her own life

But she just needs keeping a eye on .

But my partner will also stay in the house and she's great at all the caring side of things . If she was to move on then I'm sure there would be some sort of careers my sister could get into help .
I can't answer every question Unless I'm in the situation .
And in this situation I'm dead anyway🤷🏼!♂️

I also have £300.000 life insurance
So that would cover both morgages and some left over for my child
If I was unable to work the first 6months I get full pay then decrease .
But I'm sure there's some sort of benefits to help . And that's worse case . But even if there wasn't .
The rental from the BTL would cover the morgage at the other property .
And as everything seems to be worse case .
If there was no tennets and I lost my job and for some reason I couldn't work . And couldn't claim any benefits . Then my sister could cover both from her work And sure my parents would help if needed .

And u state for there long term security ?
If there so bad they need to go into a care home .
How is the house there security as my sister will be there anyway ?

The house provides security because at the moment they have the assets to be flexible if their needs change. For instance they could sell and buy or rent altered of assisted living type accommodation. If one died and the other needed residential care they would be able to self fund, snd therefore have far more choice of where and when that care was provided.

Unless your sister is a dependant adult or over 60 years of age then the fact that she lives in the property will not prevent the LA counting the house as an asset that can be used to pay care costs.

Glad to see you have insurance to cover your untimely death, but presumably if that happened your children would inherit the bulk of your so where does that leave your parents? It would seem your children are minors so their inheritance will be in the hands of whoever the trustees of your estate are.

phill2-0-0-3

I have no knowledge on rental that's why I'm on here .

How is it Deprivation of Assets ? I'm not purposely moving there for that reasons and my sister lives there anyway so how would they be able to take the house for there cost for residential care ?

I only brought the house 2.5 years ago and every house I was viewing sold within the month within this area . Very good commute to London .
I wouldn't say it's a bad area .

I'm geting a lot of negative feedback with nothing positive.
There's no solutions ?
What would you advise ?

Cakeguts

phill2-0-0-3 wrote: »

I have no knowledge on rental that's why I'm on here .

How is it Deprivation of Assets ? I'm not purposely moving there for that reasons and my sister lives there anyway so how would they be able to take the house for there cost for residential care ?

I only brought the house 2.5 years ago and every house I was viewing sold within the month within this area . Very good commute to London .
I wouldn't say it's a bad area .

I'm geting a lot of negative feedback with nothing positive.
There's no solutions ?
What would you advise ?

It is deprivation of assets because your parents are gifting you their house. They are passing their assets on to you. If you were buying their house at the market sale price then that would not be deprivation of assets because they would have the money from the sale.



By gifting you their house your parents are giving you their assets. Local Authorities know about this tactic to get free care and will need to get the assets from you to pay for your parents care.

phill2-0-0-3

Keep_pedalling wrote: »

The house provides security because at the moment they have the assets to be flexible if their needs change. For instance they could sell and buy or rent altered of assisted living type accommodation. If one died and the other needed residential care they would be able to self fund, snd therefore have far more choice of where and when that care was provided.

Unless your sister is a dependant adult or over 60 years of age then the fact that she lives in the property will not prevent the LA counting the house as an asset that can be used to pay care costs.

Glad to see you have insurance to cover your untimely death, but presumably if that happened your children would inherit the bulk of your so where does that leave your parents? It would seem your children are minors so their inheritance will be in the hands of whoever the trustees of your estate are.

That's strange as my freinds dad went into care and unfortunately died he was living in his dads property . They took all the dad's savings but it didn't cover anywhere nr the amount the care cost.
but didn't touch the house as the son lived there and had no other property

phill2-0-0-3

Cakeguts wrote: »

It is deprivation of assets because your parents are gifting you their house. They are passing their assets on to you. If you were buying their house at the market sale price then that would not be deprivation of assets because they would have the money from the sale.



By gifting you their house your parents are giving you their assets. Local Authorities know about this tactic to get free care and will need to get the assets from you to pay for your parents care.

Ok so what would you do in this situation ?

Geting a lot of negatives .
But no solutions

And regardless my sister would have no where to live if they took the house .
I understand care cost a lot .
And it may happen to my dad unfortunately .
Possibly my mum but the odds are more towards my dad unfortunately as his mum went into care for dementia .
My mum's parents didn't .
I understand that doesn't mean she won't .,Just going by the odds
Not any time soon .
But it's a possibility unfortunately
I would sell my house to pay for his care if that was the situation .
Unsure how far £100.000 would get but it's a start .
I don't have a lot of outgoings . And don't plan on geting any . So can work more later in life to help cover his cost if needed , And my sister can probably would .

But that's all in the future . And regardless if the council took it now or later it would be gone worse case . That's not the reason I'm doing all this just to state that clearly .
And I see how my nan was treated in the care home .
I would definitely put this off for as long as possible .
As even at a young age I could tell she wasn't treated well .