mortgage query...letting
Discussion
No, I don't carry it around with me! 
But, if you have a mortgage, it isn't even your house yet. You can live in it, but anything else is up to those "terms" and "conditions". And they almost certainly don't allow you to rent it out.
Granted, this depends on them finding out (and we won't 'dob you in', here!) but 'they' really do have the right to sling you out! It ain't yours, yet.
But, if you have a mortgage, it isn't even your house yet. You can live in it, but anything else is up to those "terms" and "conditions". And they almost certainly don't allow you to rent it out.
Granted, this depends on them finding out (and we won't 'dob you in', here!) but 'they' really do have the right to sling you out! It ain't yours, yet.
ScuttleRX said:
Cool, cheers matey, just bouncing around a few options due to a recent change in circumstance...thats one to strike off the list.
I asked because I do know a couple of people who are doing it, just curious of the consequences.
Well, 'dob one in' and see what happens! I asked because I do know a couple of people who are doing it, just curious of the consequences.
(not really)People do get away with it, but that isn't the same as being allowed to do it. Playing Landlord on a residential mortgage is a great game. Until you get found out. You really don't own that house, yet. Inevitably there are a whole bunch of rules about turfing people out on to the street...
Stigmundfreud said:
interesting thread as the other half might be moving in with me so she will be in a similar situation
Im facing the opposite situation and not too keen on trying to sell at the moment (although its looking like the only option)! My equity is in the high 80's and rising fast no doubt so dont think id be able to switch to a buy-to-let, hence the thread...Lol, yeah i'll save the dobbing in idea for when im reeeally curious
Switched a residential to a btl a few years ago, just rang them up and notified them, they didn't even load the rate. i had had it a few years as residential which probably helped, if i was just doing it a few months after buying i suspect they would have been less happy. Worth a call certainly.
Thanks guys, I shall give them a call, had the house 4 years in April now. Reckon it'll be rented longer than a year though, what the best guess for 2007-ish prices...2012? (I haven't had enough time to wade through the house price threads as of late ).
Selling might be an option, quite handily the neighbour's house is up for sale so can see how he fares, had a 10k price drop recently but if he gets near asking price it could be worthwhile.
).Selling might be an option, quite handily the neighbour's house is up for sale so can see how he fares, had a 10k price drop recently but if he gets near asking price it could be worthwhile.
Eric Mc said:
If you rent out your property, you will need to start making Self Assessment tax returns - if you don't complete them already.
ah ta, I dont complete them at the mo, im guessing they're a joy..!I may aswell ask my other query as letting is now looking a possibility, do I have to pay any tax if the rental income is less than the mortgage?
First thing, have a chat with your lender and see what they say. If they say no, they mean it, and in the event they find out, they could give you a bit of a slap rate wise. "Yes Mr Scuttle we have added 1% to your interest payments." That sort of thing. Alternatively they might be absolutely fine.
Whatever you do, inform your insurance company. The policy will be void if the house is let without their knowledge.
Whatever you do, inform your insurance company. The policy will be void if the house is let without their knowledge.
ScuttleRX said:
do I have to pay any tax if the rental income is less than the mortgage?
It's the interest element that is important not what you pay total, if you are on interest only for instance then yes 100% of the mortgage can be set off against tax, if not then you need to establish what element is the interest and just offset that bit. There are other factors that you can offset as well such as running repairs (although not improvements), agent fees, depreciation on furnishings if letting furnished. Also you need to be aware of capital gains tax liabilities when you sell, as you have lived there till now, you basically get another 3 years as CGT free, after that you start accruing a taxable charge on any increase in value, currently this you are looking at a flat rate of 18% on that.Gassing Station | The Pie & Piston Archive | Top of Page | What's New | My Stuff