First Time Buyer - Buy to Let

gazzabib

Hello, 

I am planning on buying my first house in my home town while i am posted down south. I have found a house i would really love to retire in (home town up north) and would love to purchase it now. Im just after advice on how i can proceed.

I have a LISA, and i believe i can use that if i intend to move into the home eventually, which i do, but i am getting mixed responses as to which mortgage i should apply for, a buy-to-let or a standard mortgage, as i will have to rent the house out intil i retire in 9 years time. 

I am also getting mixed responses in regards to first time buyer stamp duty relief, some say i have to pay, and others say i dont.

Any clarafication would be greatly appreciated.

TLDR - I am military and want to buy, then let out a house i want to retire in, can i use my LISA, to i lose my stamp duty relief, which type or mortgage do i get.
 
Many thanks

Gary

Brie

not what you asked but - who will be managing the house while you're away?  Do you know all the stuff one needs to do when renting?  And, importantly, is rental income absolutely necessary to pay the mortgage??

Emmia

gazzabib said:

Hello, 

I am planning on buying my first house in my home town while i am posted down south. I have found a house i would really love to retire in (home town up north) and would love to purchase it now. Im just after advice on how i can proceed.

I have a LISA, and i believe i can use that if i intend to move into the home eventually, which i do, but i am getting mixed responses as to which mortgage i should apply for, a buy-to-let or a standard mortgage, as i will have to rent the house out intil i retire in 9 years time. 

I am also getting mixed responses in regards to first time buyer stamp duty relief, some say i have to pay, and others say i dont.

Any clarafication would be greatly appreciated.

TLDR - I am military and want to buy, then let out a house i want to retire in, can i use my LISA, to i lose my stamp duty relief, which type or mortgage do i get.
 
Many thanks

Gary

If you'll not be living in it immediately, then you'll probably need a BTL mortgage - if you buy on a residential mortgage, then the lender would expect you to live there - tenanting would break the mortgage agreement, and the bank could ask for you to pay the whole mortgage off instantly.

If you have a residential mortgage and then ask for consent to let quickly the bank may smell a rat.

Also, how long is it until you expect to retire? Many things change and that property could prove to be a milestone.