First time landlord with complications, help needed!

theartfullodger

Mikeeee_2 said:

theartfullodger said:

Which country (eg NI, Wales) ?? The law varies.

There are more than 10 taxes a landlord may pay.  In particular CGT - ensure you have documented estimates for MARKET value of the place before you move out.  You could guess as to what CGT you would pay when selling or transferring in future but we (me, you, everyone else) don't now what the CGT rates and rules will be in future when you sell.  The law keeps changing.

Buying and reading this (or similar) will save you more time & money than it takes to buy & read.
https://www.amazon.co.uk/How-Save-Property-Tax-2024/dp/1911020994

Most years (been in the game for 24 years) I make money from BTL - but not always!!  You need £££ for a rainy daay.

And humbly suggest you get educated in how to be a landlord & landlord/tenant law (a bleedin' minefield).  Cheaper than the alternative (ignorance, no offence.. ) e.g. (England..)
https://www.nrla.org.uk/training-academy/core-courses/landlords-fundamentals

In my experience giving your 'phone number to neighbours is a very cheap insurance policy . 

Check up on landlord insurance etc etc etc

Remember that to be a letting agent in England required no qualifications, no training, no criminal records check. Th whole office could be staffed by ex-cons from Brixton on early release from fraud & GBH sentences...  It's the landlord rather than agent that is ultimately responsible for everything.

............The estate agent we are likely to choose is quite big and well known, ....

I'll order the book and take a look at the link. Very useful 👍

Some years ago my son & two mates shared a house, renting, Landlord had engaged an agent, a large & award-winning agent with a good recommendation.  Hmmmnn.. Come when landlord wanted to sell he got agent to serve notice.  I looked at it & pointed out to son (email) that it was invalid - he then sent ot on to agent (!!!!!! of him, could have waited until court case failed.  Agent flatly refused to accept. Round loop a couple more times.  Come shortly before date he wanted them out finally we got penny to drop with agent. Day before house was selling (yes, that tight..) landlord came round, nice bloke, signed cheque to "encourage" tenants to leave - several thousand.. and all sorted. 

Remember that to be a letting agent in England required no qualifications, no training, no criminal records check. The whole office could be staffed by ex-cons from Brixton on early release from fraud & GBH sentences...  It's the landlord rather than agent that is ultimately responsible for everything.

Don't trust agent to get it right... Good luck......

_Penny_Dreadful

Mikeeee_2 said:

Hoenir said:

Help To Buy do care.............

You are not allowed to sublet your home unless your personal circumstances make it difficult to live there.

When you may be allowed to sublet your entire home

When you sublet your entire home, you are letting it all to someone else and you do not live in it.

You’ll only be allowed to sublet your home in specific personal circumstances.

If you need to move temporarily

A temporary move must be due to:

• ill health
• a need to care for a family member
• a change of work location which results in an unreasonable commute from your home

If you’re struggling financially

Subletting may help if you need to move temporarily because you’re struggling due to things like:

• losing your job
• a drop in your household income
• a change of circumstances that leaves you unable to afford your mortgage payments

If your property is affected by unsafe cladding

If your property is affected by unsafe cladding, subletting may help you:

• if you need to move temporarily
• if you’re struggling financially due to additional costs

What you need to send

You’ll need to send us evidence, which should be:

• a letter from your mortgage lender confirming that they will:
  • allow you to sublet your entire home
  • not change the repayment mortgage to a buy to let mortgage
• a letter from your building or contents insurer saying that they will allow you to sublet your home
• any other information to support your application, we may ask for

If your property is affected by unsafe cladding, you will also need to send one of the following:

• an EWS1 form with a rating of A3 or B2, or evidence this form is not available from your freeholder or management company
• evidence supplied by your freeholder or management company that your property is affected by unsafe cladding

You’ll also have to pay a £50 administration fee.

You’ll also need to send a covering letter explaining why you want to sublet.

If you get permission, it will be valid for 12 months, so you’ll need to tell us what your plans are after that, for example, moving back into your home or asking permission to sublet again.

Having a lodger

You can have one lodger without asking for permission, as long as you, the homeowner:

• live in your home at the same time as the lodger
• do not give the lodger a formal lease or tenancy which would give them an interest in your property

Changing to a buy to let mortgage

You cannot change your repayment mortgage to a buy to let mortgage until you’ve repaid your equity loan in full.

This is not particularly helpful but thanks for your efforts.

You asked if you could switch to an interest only mortgage and whilst you still have the HTB equity loan you cannot. 

_Penny_Dreadful

Mikeeee_2 said:

theartfullodger said:

Which country (eg NI, Wales) ?? The law varies.

There are more than 10 taxes a landlord may pay.  In particular CGT - ensure you have documented estimates for MARKET value of the place before you move out.  You could guess as to what CGT you would pay when selling or transferring in future but we (me, you, everyone else) don't now what the CGT rates and rules will be in future when you sell.  The law keeps changing.

Buying and reading this (or similar) will save you more time & money than it takes to buy & read.
https://www.amazon.co.uk/How-Save-Property-Tax-2024/dp/1911020994

Most years (been in the game for 24 years) I make money from BTL - but not always!!  You need £££ for a rainy daay.

And humbly suggest you get educated in how to be a landlord & landlord/tenant law (a bleedin' minefield).  Cheaper than the alternative (ignorance, no offence.. ) e.g. (England..)
https://www.nrla.org.uk/training-academy/core-courses/landlords-fundamentals

In my experience giving your 'phone number to neighbours is a very cheap insurance policy . 

Check up on landlord insurance etc etc etc

Remember that to be a letting agent in England required no qualifications, no training, no criminal records check. Th whole office could be staffed by ex-cons from Brixton on early release from fraud & GBH sentences...  It's the landlord rather than agent that is ultimately responsible for everything.

Thanks. This is helpful. The property is in England.

The CGT thing is covered, I'm OK with that part. The estate agent we are likely to choose is quite big and well known, so I'm hoping that will be ok! We're friendly with several of our neighbours too as we've been here for 11 years so that helps.

I'll order the book and take a look at the link. Very useful 👍

The large, well known letting agents are franchises. The service you receive can be quite variable from one branch to the next. Foxtons is a well known brand but I wouldn’t touch them with a 10’ barge pole. After all the negative news stories about them over the years I’m surprised anyone still uses them. 

I’ve found more success with smaller letting agents who aren’t franchisees and have their own name above the door. 

Grumpy_chap

Mikeeee_2 said:

My current mortgage is over 5% as we remortgaged fairly peak interest rates.

5% is nowhere near "peak interest rates".  Mortgage rates topped 18% (typical) in the 1980's and topped 15% (typical) in the 1990's.  Depending upon which data set you choose to review, average UK interest rate since beginning of 18th Century (1700) to now has been between 4 - 5%

Mikeeee_2

Grumpy_chap said:

Mikeeee_2 said:

My current mortgage is over 5% as we remortgaged fairly peak interest rates.

5% is nowhere near "peak interest rates".  Mortgage rates topped 18% (typical) in the 1980's and topped 15% (typical) in the 1990's.  Depending upon which data set you choose to review, average UK interest rate since beginning of 18th Century (1700) to now has been between 4 - 5%

I think you're missing quite a lot of context here. Double digits aren't going to happen within the next 8 months. If it does, mortgage rental issues are going to be the least of all our worries.