Options for renting out property for 2 years

kamb1ng

Hi everyone,

My family and I are relocating to a different country for 2 years for work and want to rent out our main property in the UK. The move coincides with my current Nationwide mortgage deal's expiration so I have two options:
1. Switch to a new product with Nationwide and ask for a permission to let
2. Switch to a BTL mortgage

Ideally I would like to continue repaying the capital because I want to own the property outright in the future. However it seems very difficult to find a BTL mortgage with capital repayment product. Does anyone know what the interest rate is like with such a product?

With option 1, I'm a bit worried that Nationwide will not give the permission. Am I overworrying here?

Thank you for your help.

tom9980

Read the Sticky for information on being a Landlord the obligations are significant.

https://forums.moneysavingexpert.com/discussion/5180214/tenancies-in-eng-wales-guides-for-landlords-and-tenants

The mortgage is the least of your worries frankly. Expecting someone to up and leave the property when s21 eviction is potentially about to be abolished is wishful thinking, getting your house back in a timely manner in two years is also unrealistic.

gettingtheresometime

Also think what would happen if, for whatever reason, you needed to return to the U.K. earlier

sevenhills

Sounds good, maybe? Considering a Buy to Let mortgage? PO rates start from just 1.40%.
Post Office Mortgages are provided by Bank of Ireland UK.

Cakeguts

Don't let it. Either sell it or leave it empty. The risk of letting it now is too great as it is your only home.



If you get a bad tenant they could wreck it or stop paying the rent. If you get a bad tenant who wrecks the house you will need to get it repaired before you either move back in or put it back on the lettings market. How are you going to do that from abroad? Will you be happy to return home after two years and find that you need a new kitchen? You didn't buy this house as a rental property so the chances are that it won't be one that good tenants want to live in.



As others have said there is no guarantee that you tenant will have to leave when you want your house back.



Can you afford to pay the mortgage on this house and your housing costs in another country? If not sell the house because you could get a non paying tenant and it will take you at least 6 months to evict them if section 21 isn't abolished. If it is it will take you longer to get a court date.

lookstraightahead

I would never be a landlord unless I had the professional inclination and not just using it as a cash cow while abroad. You have mega responsibilities as a landlord (you can delegate day to day stuff to an agent but you are still responsible).

What makes you think your tenants will decide to leave after two years?

lookstraightahead

Cakeguts wrote: »

Don't let it. Either sell it or leave it empty. The risk of letting it now is too great as it is your only home.



If you get a bad tenant they could wreck it or stop paying the rent. If you get a bad tenant who wrecks the house you will need to get it repaired before you either move back in or put it back on the lettings market. How are you going to do that from abroad? Will you be happy to return home after two years and find that you need a new kitchen? You didn't buy this house as a rental property so the chances are that it won't be one that good tenants want to live in.



As others have said there is no guarantee that you tenant will have to leave when you want your house back.



Can you afford to pay the mortgage on this house and your housing costs in another country? If not sell the house because you could get a non paying tenant and it will take you at least 6 months to evict them if section 21 isn't abolished. If it is it will take you longer to get a court date.

There's also the potential of being a bad landlord especially if this is an afterthought.

csgohan4

what is your yearly yield ? overhead costs? eviction costs? void period cost??

have you taken that into account? can you afford it when your tenant is not paying?

legal and tax implications are you are aware of?

https://forums.moneysavingexpert.com/discussion/5896992/evicting-tenants-via-court-and-bailiffs

https://forums.moneysavingexpert.com/discussion/5983050/taking-tenant-to-small-claims-court

kinger101

As others have suggested, needing it back at the end of the two years would put me off. At best, you'd get three 6-month short-hold lets on this, and such terms don't attract the best tenants. Neither does furnished accommodation.

You'd probably never meet the tenants, so you'd be putting your trust in letting agents ability to choose.

There's also the possibility you'll think your move abroad is a mistake, or that you'll want to return to the UK over Xmas/New Year and want somewhere to live then.

I'd be thinking about whether the move has any chance of becoming permanent. If so, I'd sell up. If not, I'd figure out whether I could afford mortgage repayments while I'm away.

G_M

All valid points above - think hard and do research before letting the property. As for your question, I don't see the problem.

Ask N/W for CTL. If they refuse,shop around for a BTL mortgage.


* New landlords (1):advice & information :see links in next post

* New landlords (2): Essential links for further information

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

kamb1ng

Thanks all for your warnings. I was a tenant myself for many years before buying my own place and was well aware that my landlord can ask me to evict with 1 month notice. This happened once when my landlord was selling the house and I obliged.

So I don't quite understand the seemingly default outcome of horror stories about tenants refusing to move out. Of course there are bad ones out there, but if the right checks are made (credit, background, etc) and I had a chance to review the profiles, doesn't that help to reduce the chance of getting a bad tenant?

How frequent do bad tenant situations actually happen? 10% or 90% of the time?

kinger101 wrote: »

As others have suggested, needing it back at the end of the two years would put me off. At best, you'd get three 6-month short-hold lets on this, and such terms don't attract the best tenants. Neither does furnished accommodation.

Kinger101, please can you elaborate what attracts the best tenants? I don't quite understand the logic of three 6-month short-hold lets. I would be happy to have someone who wants to stay for 1 year or even 2 years.

As for furniture, we're planning to leave the house empty with no furniture.