Guest joannaplus4 Posted March 4, 2010 Share Posted March 4, 2010 We approached our building society about renting out our property for obvious reasons rather than selling and we have been told we would only been able to rent it out for at the most 2 years before we would be made to sell as the mortgage we have is not a buy to let. I have friends who not approached their building society as they were not aware they had to and our just renting their property out. Anyone got any advice or suggestions! Link to comment Share on other sites More sharing options...
nickjenkinson Posted March 4, 2010 Share Posted March 4, 2010 Rent it out for the 2 years then reassess. You can always switch to a buy-to-let in two years. Link to comment Share on other sites More sharing options...
Guest guest33730 Posted March 4, 2010 Share Posted March 4, 2010 We approached our building society about renting out our property for obvious reasons rather than selling and we have been told we would only been able to rent it out for at the most 2 years before we would be made to sell as the mortgage we have is not a buy to let. I have friends who not approached their building society as they were not aware they had to and our just renting their property out. Anyone got any advice or suggestions! You have done the right thing by telling them but I am very surprised at the attitude they are taking. My guess is that should you decide to rent it out, after two years they wont hassle you as long as you have been making the payments OK but I suppose you can't take that for granted. We will not act for a Landlord unless we have their lenders consent and any decent letting agent should do the same. I think my advice would be that you rent the property out and then discuss it again with your bank in a couple of years if they raise it with you however if you have at least 25% equity in it you should be able to change it to a buy to let mortgage now which would take the stress away. All the best whatever you decide Daniel (Owner of LET-it which is a Scottish based letting agency) Link to comment Share on other sites More sharing options...
Guest joannaplus4 Posted March 4, 2010 Share Posted March 4, 2010 Thanks thats good advice. When you have so much going on its hard to see the right way to go. Link to comment Share on other sites More sharing options...
Guest gary12 Posted March 4, 2010 Share Posted March 4, 2010 We rented out our home and were able to keep the same mortgage for 12 months, we had to pay an extra £60 pcm. After this period we had to switch mortgage to a buy to let and I have to say the one we have switched to has cut the repayments in half. It is interest only but we intend to sell and we are happy with that. regards Michelle Link to comment Share on other sites More sharing options...
chalkyhill Posted March 4, 2010 Share Posted March 4, 2010 You have done the right thing by telling them but I am very surprised at the attitude they are taking. My guess is that should you decide to rent it out, after two years they wont hassle you as long as you have been making the payments OK but I suppose you can't take that for granted. We will not act for a Landlord unless we have their lenders consent and any decent letting agent should do the same. I think my advice would be that you rent the property out and then discuss it again with your bank in a couple of years if they raise it with you however if you have at least 25% equity in it you should be able to change it to a buy to let mortgage now which would take the stress away. All the best whatever you decide Daniel (Owner of LET-it which is a Scottish based letting agency) We were initially told by our mortgage provider that we would have to pay £1125 admin fee plus a cancellation fee of £3600 - And would also be given a much higher interest rate. Then we got a call later the same say saying we would be able to keep our current mortage until 2013 with no additional charge. At the moment we are going to try and sell our flat - if it doesn't sell by mid june we will rent it out. Link to comment Share on other sites More sharing options...
Guest guest33730 Posted March 4, 2010 Share Posted March 4, 2010 We were initially told by our mortgage provider that we would have to pay £1125 admin fee plus a cancellation fee of £3600 - And would also be given a much higher interest rate. Then we got a call later the same say saying we would be able to keep our current mortage until 2013 with no additional charge. At the moment we are going to try and sell our flat - if it doesn't sell by mid june we will rent it out. The government is putting a lot of pressure on lenders to 'be reasonable' during the recession and I'm glad to hear of your experience. The lenders must understand that there are many people who cannot sell just now for all kinds of reasons (the biggest being negative equity) so those who are able to find a solution (like renting it out) which means the mortgage is still being paid is a far better option for everyone rather than potentially having to look at repossession etc Daniel Link to comment Share on other sites More sharing options...
chalkyhill Posted March 4, 2010 Share Posted March 4, 2010 The government is putting a lot of pressure on lenders to 'be reasonable' during the recession and I'm glad to hear of your experience. The lenders must understand that there are many people who cannot sell just now for all kinds of reasons (the biggest being negative equity) so those who are able to find a solution (like renting it out) which means the mortgage is still being paid is a far better option for everyone rather than potentially having to look at repossession etc Daniel Hopefully it will sell as we don't want to have to be thinking of a property from the other side of the world - if not its a good back up. PS we have already had a chap from LET-IT to give us a rental value and explain the agency management. Link to comment Share on other sites More sharing options...
Guest guest33730 Posted March 4, 2010 Share Posted March 4, 2010 Hopefully it will sell as we don't want to have to be thinking of a property from the other side of the world - if not its a good back up. PS we have already had a chap from LET-IT to give us a rental value and explain the agency management. Cool - was he good?? We have changed a lot of things since Christmas (including new staff) and I am interested in any feedback good or bad. Daniel Link to comment Share on other sites More sharing options...
Guest Blueberrymuffins Posted March 14, 2010 Share Posted March 14, 2010 Why bother telling them? If you only have one property how will they ever find out? I think banks really do take the mickey with buy to let mortgages charging huge adminstration fees and increased interest rates. I have rented out my property for the last 4 years and never had a problem... do make sure you do a tax return though, you must declare your income. Link to comment Share on other sites More sharing options...
Guest guest33730 Posted March 14, 2010 Share Posted March 14, 2010 Why bother telling them? If you only have one property how will they ever find out? I think banks really do take the mickey with buy to let mortgages charging huge adminstration fees and increased interest rates. I have rented out my property for the last 4 years and never had a problem... do make sure you do a tax return though, you must declare your income. In Scotland every landlord has to register with the local authority or face prosecution and this along with other new regulations that they are looking to shortly bring in south of the border will mean that lenders will be able to find out if you have been renting without their permission (not to mention the tax authorities etc). You may have got away with it to date but don't be surprised if one day, out of the blue, things turn out a little differently, but then again I suppose that's the same with any dishonesty. Daniel Link to comment Share on other sites More sharing options...
Guest Blueberrymuffins Posted March 14, 2010 Share Posted March 14, 2010 The banks have been dishonest to us for years I can deal with passing a little back. :-) Link to comment Share on other sites More sharing options...
Guest itxrd Posted March 22, 2010 Share Posted March 22, 2010 The banks have been dishonest to us for years I can deal with passing a little back. :-) Yeah have to agree. I tried to change a couple of yrs back and was told it would cost £1k in admin fees + slightly higher rate (only slightly mind). Never bothered as its for exactly the same thing. Just trying to rip us off and they'll never find out. Even if they do would just change then ;-) Will try to change again today actually as would prefer to be honest etc but not one for getting ripped off Link to comment Share on other sites More sharing options...
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