The Student Room Group

Buying a house & letting it out?

We live in south east and saving for a deposit down here seems next to impossible. So I was thinking can I purchase a house up north and then ask my mortgage provider for me to let it out?

I don’t want to get a buy-to-let as the deposit amount is much higher so my question is it possible to buy a house up north, and then let it out?
Reply 1
Original post by Amydesigns1104
We live in south east and saving for a deposit down here seems next to impossible. So I was thinking can I purchase a house up north and then ask my mortgage provider for me to let it out?
I don’t want to get a buy-to-let as the deposit amount is much higher so my question is it possible to buy a house up north, and then let it out?

Yes.

Tricky when you're doing key change overs though.
you will need a buy to let mortage which is expensive
Reply 3
Original post by Amydesigns1104
We live in south east and saving for a deposit down here seems next to impossible. So I was thinking can I purchase a house up north and then ask my mortgage provider for me to let it out?
I don’t want to get a buy-to-let as the deposit amount is much higher so my question is it possible to buy a house up north, and then let it out?

If you buy a house with an owner-occupier mortgage, then you can certainly ask the lender for permission to let it out. But you should expect the lender to charge you a higher interest rate if they agree.

I don't know whether they'd be able to refuse permission for you to rent out the property -- I imagine they could decide not to allow it.
Reply 4
You'll also have to consider insurance for the property, and mortgage providers may ask for landlord insurance.

Also, how will you manage a rental property at a distance?
Original post by Surnia
You'll also have to consider insurance for the property, and mortgage providers may ask for landlord insurance.
Also, how will you manage a rental property at a distance?

That’s what estate agents / property management is for no? I’m just curious because a girl at work lets her house at in Cornwall & she lives in London
Original post by Amydesigns1104
That’s what estate agents / property management is for no? I’m just curious because a girl at work lets her house at in Cornwall & she lives in London

If you only have 1 property the fees for a 3rd party to manage it will take away a solid chunk of the revenue, maybe 10-15% on top of the other expenses. If I had all my eggs in a single rental property I'd prefer to manage it myself.
Reply 7
Original post by Amydesigns1104
That’s what estate agents / property management is for no? I’m just curious because a girl at work lets her house at in Cornwall & she lives in London

Have you run the maths on this?
Reply 8
Original post by Amydesigns1104
That’s what estate agents / property management is for no? I’m just curious because a girl at work lets her house at in Cornwall & she lives in London

It's what they are supposed to be for, but personally I've heard some horror stories about mismanagement of properties which were damaged and people lost money having to repair and redecorate.
Reply 9
Original post by Surnia
It's what they are supposed to be for, but personally I've heard some horror stories about mismanagement of properties which were damaged and people lost money having to repair and redecorate.

You run the risk of property being damaged and having to repair/redecorate whether you're managing the property yourself, or whether you get a management company to do it.
Original post by martin7
You run the risk of property being damaged and having to repair/redecorate whether you're managing the property yourself, or whether you get a management company to do it.

They're maybe talking more about the monitoring and recording of issues?

The place I rented from before didn't come anywhere near to inspect the property in over 8years, but I v much doubt that's what they report to their clients and insurer.
very risky and there maybe more changes soon after the election.
Reply 12
Original post by Kutie Karen
very risky and there maybe more changes soon after the election.

What changes?
Original post by Quady
What changes?

you'll find out now that the election is called.
Reply 14
Original post by Kutie Karen
you'll find out now that the election is called.

When?

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