Does owner need to remortgage to let-out home?

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    Does owner need to remortgage to let-out home?

    I'm to move abroad for work and would like to rent my house.

    At the moment I have a normal owner offset mortgage for 15 years, still 60% of the house left to pay.

    Do I need to remortgage to a specific mortgage type in order to be able to rent the house ?

    Which mortgage ? Why (eg. a specific law)?

    ----------------------------

    Is there an A to Z article on the internet showing the preparation I need to do to rent the house, please ?

    Thank you.
    best regards,
    Shiv

    #2
    Originally posted by shivy View Post
    Do I need to remortgage to a specific mortgage type in order to be able to rent the house ?

    Which mortgage ? Why (eg. a specific law)?
    There's no law about this as such; but you'll have signed up to terms and conditions with your current lender to the effect that you will be living in the property yourself, not renting it out. So go ahead without letting on, and you'll be breaking your contract: worst case scenario (though unlikely) is that the lender could legitimately repossess if they find out.

    You need a buy-to-let mortgage; however if you're lucky you'll simply be able to convert your existing one; if you're very lucky indeed, without cost. But basically you need to contact your lender and ask.

    If you are moving abroad you'll really need someone local to manage the rental; that, plus that fact that you sound very much a newbie at this, means that you'd really be strongly reccommended to use a good agent (and I can't overstress the word good enough) who will be able to advise on all that needs doing.

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      #3
      Shivy: is it a house or a flat? If it's a flat, read the lease too- it may prohibit/restrict subletting.
      JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
      1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
      2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
      3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
      4. *- Contact info: click on my name (blue-highlight link).

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