t_benn_1
Member
Registered: 28th Sep 04
Location: Shropshire
User status: Offline
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Right so i'm looking at renting my house.
Cut a long story short, split up with the mrs.
So i'm moving back to parents she going where ever.
The house is mine.
Ow about 78k on the house its worth around 120k
Mortgage is 370 a month.
The house needs a little work electric's needs a new fuse box maybe more, little bit of damp to sort.
So plan is to put another 5k ish on mortgage.
To rent out the quotes i've been getting are from 550 to 650 pcm.
Would people got through an agent they take between 10-12%
So my out going would be on the house?
Mortgage
Building insurance
Insurance for heating
Insurance for dishwasher and cooker.
What paper work would i need?
Landlord certificate on electric and gas?
Am i missing anything?
I'll more than likely buying another property myself next year.
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John
Member
Registered: 30th Jun 03
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Mortgage company will want to know and may increase the interest rate.
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
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My mate has a letting agency and could probably get the paperwork done and let it but he's up here so you would need to do anything at the house.
Not 10% either, would be less than that if not fully managed.
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t_benn_1
Member
Registered: 28th Sep 04
Location: Shropshire
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I believe i'd find a tenant easily and quickly.
Contracts can be found easily.
Its more the credit check side of things.
Understand that mortgage company will want to know. Mortgages seem ok but have a lot more fee's.
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t_benn_1
Member
Registered: 28th Sep 04
Location: Shropshire
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Ian what % would we be talking?
Is all the insurance and certificates I've noted all i'd need?
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
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I'm not sure hence suggesting getting him involved, I'm seeing him tomorrow so I'll mention it to him.
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Jules S
Premium Member
Registered: 24th Dec 03
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quote:
Originally posted by John
Mortgage company will want to know and may increase the interest rate.
And no doubt the tax man will want a share of the 'income' too.
Renting a property out is great with good tenants
And it's a fucking fucking fuckety fucking awful experience with bad one's.
If you are in anyway relying on the rent from house #1 to subsidise the mortgage on #2 house i wouldn't bother IME
In fact I'd sell it and put the £ against the new house. Just recalling the stress of dealing with management/tenants again is going to give me nightmares tonight 
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t_benn_1
Member
Registered: 28th Sep 04
Location: Shropshire
User status: Offline
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No the mortgage is small as far as i'm concerned. More a long term plan.
From what i gather tax is payable on any profit. So rent minus mortgage/upkeep etc
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
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Yeah you're only taxed on profit which if you balance the books on your outgoings you won't need to worry about too much.
Would make you eligible to pay CGT when eventually you sell it though.
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Jules S
Premium Member
Registered: 24th Dec 03
User status: Offline
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quote:
Originally posted by Ian
Yeah you're only taxed on profit which if you balance the books on your outgoings you won't need to worry about too much.
Would make you eligible to pay CGT when eventually you sell it though.
Which, (CGT)
In my small experience of looking into it/dealing with it...makes it a real deal killer in this day and age if you buy a second (first) property.
Nightmare short term. Not much better long term atm 
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Fro
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Registered: 20th Jun 06
Location: Rainham, Essex Drives: A3 2.0TDi Sport
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You would also be able to claim relief on certain aspects of upkeep of the property.
Friend bought a flat in Ipswich with the intent to move up there but there was no where for him to transfer to and travel would have been ridiculously expensive.
He asked the mortgage Co. if he could rent it out as his plans to move up there had been set back and they have been perfectly ok with it and not increased the mortgage rate. Has to reknew the request on a yearly basis though but they have given him the impression it wouldn't be an issue.
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Toby
Premium Member
Registered: 29th Nov 05
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i was in same boat 8 months ago and my ex mrs is an accountant so pretty clued up on it all.
I haven't told my mortgage company, if i do though they would increase by 1% after 6 months but chancing that.
Have declared to the IR that i am earning a secondary income so will have to complete a Tax return and will pay additional income tax but you can offset this against certain things i.e. any maintenance, the amount of interest paid on the mortgage for the year, landlord fee's, replacement furniture (if LET furnished).
Im paying 11% to Northwood for fee's, they are very good and the house was on the market on the Friday morning and was taken off the market by 6pm. It wasn't the cheapest but value for money was the most important for me. And as they were targeting a different market they have got me an £50pcm than a house 3 doors down and the 3 other agents from a different area.
You deffo need a Gas safety certificate - about £80 by law.
Things you should have but not required by law
- PAT test for all electircal items left.
- Contents insurance for items left in the property.
- Repair contracts for heating systems.
Also if you rent for 3 years you will be liable for Capital gains tax if you were to sell for a profit, cant remember exact figures above purchase price but worth bearing in mind if its a long term let.
Anything else you need to know give me a shout
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Toby
Premium Member
Registered: 29th Nov 05
User status: Offline
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quote:
Originally posted by t_benn_1
No the mortgage is small as far as i'm concerned. More a long term plan.
From what i gather tax is payable on any profit. So rent minus mortgage/upkeep etc
Not minus mortgage, but interest on mortgage
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