Options for renting out property for 2 years

Marvel1

Kad_Williams wrote: »

Apologies that so many on here are being so negative.

You only made 13 posts on this forums (time of me posting this), where the previous posters have more experience and knowledge and posting questions that the OP needs to think about it - as these are posted a lot from landlords (and tenants) when the landlord decides to evict for the reasons for the OP in 2 years and have no clue - which they should know before going in the business, it's basics.

When a tenant posts asking for advice on these notices, they rightfully state what rights the tenant has and does not have to leave to within 2 months notice given even is valid.

sst1234

kamb1ng wrote: »

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.

Your plan sounds like a logical one. Depending on LTV, you can get BTL mortgages at less than 3%. Set yourself up for self assessment, find a reputable letting agent who gets references, DO NOT allow pets. There is risk involved in every decision you make, yes there is a risk you may get bad tenants, there is also a risk your property will be broken into if you leave it empty. Many insurers will not insure if its empty anyway. Why would you not want your asset to work for you while you are away.

Leaving it empty or selling it is bad advice if you are looking to return in 2 years time. You are on the property ladder, getting back on it might be difficult if you sell. Main thing is to have a letting agent who communicates well and to sort out your tax affairs.

Cakeguts

Kad_Williams wrote: »

Apologies that so many on here are being so negative. If you can afford have the place empty then that's something you can of course work out. There are, hidden among these replies, some helpful examples of what the financial implications might be. A mortgage broker would be really helpful in helping you understand what kind of arrangement you could wangle. My broker saw me in person for free to talk through my plans before I engaged her in any actual work.


As for the logistics of making the 2 year gap work: If you are not risk averse (which I am personally not) and ok with sustaining some losses along the way to make some sort of gain (i.e. getting this work) then maybe there is a way of managing the precarious situation.


Is there anyone at home who could help manage the tenancies? Maybe they can help choose the tenants and help pace the length of tenancies to avoid overlap with your coming back to the country?

You do of course realise that the comments that you are calling negative are being posted by experienced landlord who have had experience of all the things that can go wrong in letting property?



If you had experience of letting property you would know that these posts you call negative are actually the realistic ones.


Even with the best agents you can get you cannot get past the fact that some tenants lie. Not only that but some tenants also sublet. If they sublet you will need to evict them. So again another 6 months to get a court date to get them evicted legally by a court.

Marvel1

What could happen to the person's employment status:

Potential tenant applies, been with employer for 10 years working full time, they seem stable enough because they are.

20 months down the line all going great, tenant is paying on time etc.

Thomas Cook situation arises, the company suddenly they work for is closed - no warning. They try for employment, no luck. They now look in to secure housing with the council. Notice comes though with intention to court to evict. The council advise to stay put until evicted by the court to the last day, otherwise they will not re-home.

2 year original plan to move back in is now looking like 6 months more added on.

AdrianC

Marvel1 wrote: »

Thomas Cook situation arises, the company suddenly they work for is closed - no warning.

Very few large corporates close with "no warning" - and Thomas Cook employees certainly had plenty.

Last December - https://www.theguardian.com/business/2018/dec/04/thomas-cook-shares-debt

G_M

AdrianC wrote: »

Very few large corporates close with "no warning" - and Thomas Cook employees certainly had plenty.

Last December - https://www.theguardian.com/business/2018/dec/04/thomas-cook-shares-debt

There were warng signs but it still came as a bolt from the blue formost employees:


https://www.bbc.co.uk/sounds/play/m0009ktj

kamb1ng

Thank you everyone for your perspectives. Much appreciated.

I have decided that capital repayment mortgage isn't going to be financially feasible because I will lose money every month due to tax and all the expenses. However an interest-only BTL mortgage would work so I'm going for this option.

Unfortunately there's now another blocker. My mortgage broker just told me that because I will be overseas I will be categorised as an "Ex Pat" borrower and therefore doesn't qualify for the product (with Mortgage Works - part of Nationwide). Is this right? Surely a lot of people have "normal" BTL mortgage while being seconded abroad?