Short Term Tenancy
Discussion
There's so many risks and pitfalls to doing this. No way should you agree/offer to give the rent back to them. That'll look dodgy to HMRC for a start. Plus it gives them no incentive to hurry up and complete - what if they drag it out for a year, or longer? Anyway, by the time you've paid all the fee's and costs, and spent time jumpeing through all the LL requirement hoops, you'll probably want at least a bit of recompense for it?
Even if you don't 'give' them the rent back. What happens if you give them a 6 month AST and then they change their minds about buying your place? You'll be stuck with them for at least 6 months, and that'll prevent you from selling to anyone else in that time.
It's nice for you to be so nice to them, but just bear in mind that it could easily bite you in the arse.
You have to declare it to HMRC, not worth taking the risk on that. Telling the mortgage company is another matter, good chance you'll get away with it for a short time. They could call in the loan, although they usually give you an opportunity to put it right (stop renting it, or switch to a BTL mortgage). Depends how much equity you have and what interest rate you're currently paying? The lender may not take exception, or they might increase the interest rate.
Even if you don't 'give' them the rent back. What happens if you give them a 6 month AST and then they change their minds about buying your place? You'll be stuck with them for at least 6 months, and that'll prevent you from selling to anyone else in that time.
It's nice for you to be so nice to them, but just bear in mind that it could easily bite you in the arse.
You have to declare it to HMRC, not worth taking the risk on that. Telling the mortgage company is another matter, good chance you'll get away with it for a short time. They could call in the loan, although they usually give you an opportunity to put it right (stop renting it, or switch to a BTL mortgage). Depends how much equity you have and what interest rate you're currently paying? The lender may not take exception, or they might increase the interest rate.
Okay guys I get the point, I'll speak to the agents, so far I've left it all to them.
If I'm honest I wouldn't mind keeping the flat and renting it out, I only owe 40k and the rent is circa £600 a month. Unfortunately, Wife thinks the building will fall down or we will end up with tenants from hell (she watches too much TV
) The whole area is in the middle of a multi million pound regeneration programme and feel property prices may rise on completition in a year or two's time.
If I'm honest I wouldn't mind keeping the flat and renting it out, I only owe 40k and the rent is circa £600 a month. Unfortunately, Wife thinks the building will fall down or we will end up with tenants from hell (she watches too much TV
) The whole area is in the middle of a multi million pound regeneration programme and feel property prices may rise on completition in a year or two's time.Well good news. I've just got off the phone to the agents and they have finalised rent at £550 a month. Apparently, knocking the rent off the eventual cost of flat was only a suggestion, as a way of securing a future purchase. It has not been made to the new tenant/purchaser and they have already agreed to the monthly rent. So all in all, I'll end up with an extra few grand after the six months, this will Cover the agents and solicitors fees if they do buy . No problem now with the tax man as it will all be done as necessary.
. No problem now with the tax man as it will all be done as necessary.Gassing Station | Speed, Plod & the Law | Top of Page | What's New | My Stuff