Anyone here a Landlord ? Will the property pay for itself.

we have just bought the house and i paid a 25% deposit my mortgage was for 75%.

Thanks for all responses some more halpful than others have been looking into it and looks like it should work out.
 
CraigN said:
we have just bought the house and i paid a 25% deposit my mortgage was for 75%.
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Mines about 15% vs 85% and works well at the moment, as said it's variable and if it goes up to 6% it'll start costing me money but I'm OK with the risk.

RE estate agents, they only really get approached by people that can pass the credit check / references so it's worth the money, typically an introduction costs 3 weeks rent whereas a fully managed costs 12 - 15% per month.
 
If interest rates go up, just put the rent up. They will all increase, except those that own the property outright, but expect they'll up it as well any way.
 
Duke said:
If interest rates go up, just put the rent up. They will all increase, except those that own the property outright, but expect they'll up it as well any way.
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You'll find it hard to increase rent over and above the rate of inflation with existing tenants.
 
What ever you do base all your calculations on 10 months rent per year as you need to take into account periods when you have no tenants. It is rarely likely to be as bad as 2 months every year but it's best to plan for the worst case scenario.

Your mother in law likely doesn't want her daugher moving to London with you so is doing what is commonly known as blocking it is vrey common!
 
You have soooo many things you can claim against before you are liable to pay tax, that any money owed for tax will be very small.

Your mortgage lender will want to know that you are currently renting the house and may then opt for a bigger slice of the pie.
Or you could say nothing to either the tax man or mortgage people and hope for the best.
 
Stretch said:
In reality they don't care so long as you make the payments.
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This used to be the case but is not now, Halifax would not let my sister rent out under her mortgage - they also would not change the mortgage to a buy to let or a let to buy.

To get out of her mortgage would then trigger repayment fees and when looking for buy to let or let to buy mortgages they were few and far between and with worse rates than the mortgage she had (could comfortably afford both houses)

Basically the mortgage company did everything they could to not help her keep the other house so she ended up selling - many mortgages will not let you rent specifically.

Also remember you need differnt insurance, gas safety certs etc but first step (after checking mortgage) would be to go to a letting agent and have them value it for rent etc to give you an idea.
 
Shimmyhill said:
This used to be the case but is not now, Halifax would not let my sister rent out under her mortgage - they also would not change the mortgage to a buy to let or a let to buy.

To get out of her mortgage would then trigger repayment fees and when looking for buy to let or let to buy mortgages they were few and far between and with worse rates than the mortgage she had (could comfortably afford both houses)

Basically the mortgage company did everything they could to not help her keep the other house so she ended up selling - many mortgages will not let you rent specifically.

Also remember you need differnt insurance, gas safety certs etc but first step (after checking mortgage) would be to go to a letting agent and have them value it for rent etc to give you an idea.
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In reality:
a) how would they ever know?
b) what would they do if they found out?
 
Abraham said:
In reality:
a) how would they ever know?
b) what would they do if they found out?
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Close the mortgage and demand payment in full with fees - you also normally tell the mortgage company who the insurance will be and often then mortgage company go on the insurance document - that would be a give away when you have tenants insurance ....

For honest people who pay taxes due and want to be covered properly its not really an option to not tell the mortgage company.
 
Shimmyhill said:
Close the mortgage and demand payment in full with fees - you also normally tell the mortgage company who the insurance will be and often then mortgage company go on the insurance document - that would be a give away when you have tenants insurance ....

For honest people who pay taxes due and want to be covered properly its not really an option to not tell the mortgage company.
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was just curious, I made sure at the time of getting my mortgage that it would be possible to rent it out at a later date, fortunately without the deal I got suffering too much, possibly due to a reasonably sized deposit.
 
J.B said:
I think you should rent it out! Im not an expert but it must pay for itself otherwise people wouldnt do it.
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There are a lot of places that don't work out! I used to rent a place that had cost £250k for £775 a month. At less than 3.7% that wasn't really working out for the landlord.
 
AcidHell2 said:
I would disagree for most tenants, most landlords think for some reason after 2 years it should be in the same state and not have wear and tear.
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wear and tear is not chargeable against a deposit.

In exactly the same way as the key with all the tenants on here who end up getting screwed by a landlord, I'd say that as a landlord the biggest thing you can do is take as many pictures as possible showing the state of the property when you have incoming tenants.
 
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