Letting out my house!
Discussion
Just called the mortgage company about selling my house and it’s going to cost me £9000 in fees 
So I need to Let it out.
I have an agent coming on Tuesday, but I always like to get clued up on these things beforehand. Anything I need to know?
Do I need a ‘landlord’s license’
Is it essential I tell my mortgage people I’m letting it out and are they usually any financial implications for doing this?
Any advice would be lovely thank you
So I need to Let it out.
I have an agent coming on Tuesday, but I always like to get clued up on these things beforehand. Anything I need to know?
Do I need a ‘landlord’s license’
Is it essential I tell my mortgage people I’m letting it out and are they usually any financial implications for doing this?
Any advice would be lovely thank you
Tell the Letting Agent your going for the Fully Managed Service, irrespective of what you really want. This should speed them up placing a tenant due to the incentive, and once placed you can tell them to bog off and do it yourself 
James..
James..
Edited by J.P on Thursday 18th February 13:59
B17NNS said:
Bloody hell, things are moving quickly!
no no!! I can't afford the house on my own and even though MrssoontobeexTee is still paying half, it's only a matter of time before she stops (i know she can't, but don't want the hassel)
So, the house needs to be Let until the fixed term is over (2014)
bigTee said:
B17NNS said:
Bloody hell, things are moving quickly!
no no!! I can't afford the house on my own and even though MrssoontobeexTee is still paying half, it's only a matter of time before she stops (i know she can't, but don't want the hassel)
So, the house needs to be Let until the fixed term is over (2014)
"Err, so Mrs soontobeBigTee, how would you feel about going halves on the mortgage. No, no, no, I don't mean moving in, just a bit of a, ya know, contribution. Well, wadya say? "
def need to tell mortgage company and insurance companies as failure to do so could backfire in the event of a problem, both of them are more then likely to take huge step backwards if anything hits the fan. also make sure you get the utility bills transferred in name if you are thinking of a long term let.
rocksteadyeddie said:
bigTee said:
B17NNS said:
Bloody hell, things are moving quickly!
no no!! I can't afford the house on my own and even though MrssoontobeexTee is still paying half, it's only a matter of time before she stops (i know she can't, but don't want the hassel)
So, the house needs to be Let until the fixed term is over (2014)
"Err, so Mrs soontobeBigTee, how would you feel about going halves on the mortgage. No, no, no, I don't mean moving in, just a bit of a, ya know, contribution. Well, wadya say? "
Tell the mortgage company you've been offered a job somewhere else in the country but you want to keep the house until you're sure the job is right for you.
I did this and they left me on a residential mortgage for 5 years, and the only reason I came off it was as I needed to remortgage.
Of course, if the "job" doesn't work out and you forget to tell them for a while............
If you've got relatives local to the house you can get the mortgage company to send your letters there...
I did this and they left me on a residential mortgage for 5 years, and the only reason I came off it was as I needed to remortgage.
Of course, if the "job" doesn't work out and you forget to tell them for a while............
If you've got relatives local to the house you can get the mortgage company to send your letters there...
Check your lenders website to see the difference between residential and BTL mortgages.
When I changed my mortgages over because I moved from one into the other, I only had to pay about a £100 admin cost but the rate was the same. That's with Northern Rock.
Also bear in mind you'll need to have gas and electrical landlord certificates. I use British Gas but there are other companies that do it.
And landlord building insurance. Check out Direct Line. I found them to be cheapest.
Plus a smoke alarm and (I don't think a legal requirement but it could save a life) a carbon monoxide alarm.... and insist that they check them every month.
And then there's the tax man.......
When I changed my mortgages over because I moved from one into the other, I only had to pay about a £100 admin cost but the rate was the same. That's with Northern Rock.
Also bear in mind you'll need to have gas and electrical landlord certificates. I use British Gas but there are other companies that do it.
And landlord building insurance. Check out Direct Line. I found them to be cheapest.
Plus a smoke alarm and (I don't think a legal requirement but it could save a life) a carbon monoxide alarm.... and insist that they check them every month.
And then there's the tax man.......
Out of interest does the 9k penalty reduce as you get closer to the end of term?
The hassle I had renting a place out means I'd probably take a 9k hit, depending on the property balue of course. Even in areas with high rental values you'll need to have a sizeable amount of equity in the property in order to just cover costs of a repayment mortgage (another assumption I know)
Don't forget the finders fee and possible management fees that need to be paid on top of Landlord's insurance and you shouldn't budget for it be rented out 100%, there are bound to be months when it is empty and you'll need to cover the costs.
The hassle I had renting a place out means I'd probably take a 9k hit, depending on the property balue of course. Even in areas with high rental values you'll need to have a sizeable amount of equity in the property in order to just cover costs of a repayment mortgage (another assumption I know)
Don't forget the finders fee and possible management fees that need to be paid on top of Landlord's insurance and you shouldn't budget for it be rented out 100%, there are bound to be months when it is empty and you'll need to cover the costs.
JRM said:
Out of interest does the 9k penalty reduce as you get closer to the end of term?
The hassle I had renting a place out means I'd probably take a 9k hit, depending on the property balue of course. Even in areas with high rental values you'll need to have a sizeable amount of equity in the property in order to just cover costs of a repayment mortgage (another assumption I know)
Don't forget the finders fee and possible management fees that need to be paid on top of Landlord's insurance and you shouldn't budget for it be rented out 100%, there are bound to be months when it is empty and you'll need to cover the costs.
It does reduce yes, and there's not enough in my house to cover the 9k as yet.The hassle I had renting a place out means I'd probably take a 9k hit, depending on the property balue of course. Even in areas with high rental values you'll need to have a sizeable amount of equity in the property in order to just cover costs of a repayment mortgage (another assumption I know)
Don't forget the finders fee and possible management fees that need to be paid on top of Landlord's insurance and you shouldn't budget for it be rented out 100%, there are bound to be months when it is empty and you'll need to cover the costs.
Ive an estate agent coming on Tuesday fill me in on the fees. I'll knock them down for sure to something i think is fair to fully manage the let.
Edited to add:
I may even call the mortgage people and ask if they do payment holidays. The rent paid during this time could build up a pot for times when the house is empty, or needs a repair!
Edited by bigTee on Friday 19th February 12:08
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