Live-in landlord?

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    Live-in landlord?

    Hello.

    I've been reading the forums for a while so have at least half a clue, but I have a question or two anyway.

    Here's my situation: I live in a 3-bedroomed house, alone, and I'm not there all that much (work offshore), so I only really need a 1-bedroomed flat.

    I have thought of selling my place and buying a much larger house split into 3 or 4 flats, living in one and renting the others to cover the more substantial mortgage. I calculated that renting the other flats would cover the interest payments on the mortgage, leaving me to cover the capital repayment.

    So, couple of questions (and these may be fairly loose)

    1. If the house is my primary residence and I am living there full time (or as full time as I’m in the country), would I need a BTL mortgage or a residential one?

    2. Is there a reason for the seeming increase in the number of houses split into flats that have come on the market recently (i.e. changes in regulations etc) that aren't common knowledge?

    3. I'm planning on using an agent to find tenants (do all the screening, referencing etc) but then being self-managed, as I've heard many bad stories about fully managed options from friends with let properties. As I work away for 4 weeks at a time, would you envisage any massive problems with that?

    I should point out in support of Q3 that the place I’m looking at will be let to professionals, and that if any emergencies arise that need fixing immediately, I'll be on email and able to arrange emergency repairs remotely, as it were.

    Cheers for your time.

    Phil

    #2
    Originally posted by philelmer
    .<snip>



    1. If the house is my primary residence and I am living there full time (or as full time as I’m in the country), would I need a BTL mortgage or a residential one? Approach the sources of finance individually and get the best terms you can. Sometimes you can get flexibility from your current source of finance if they want to keep your custom. The main point is if you secure a residential mortgage is to ensure the BS give their consent to you renting

    2. Is there a reason for the seeming increase in the number of houses split into flats that have come on the market recently (i.e. changes in regulations etc) that aren't common knowledge?

    YES - see the Houses in Multiple Occupation forum

    3. I'm planning on using an agent to find tenants (do all the screening, referencing etc) but then being self-managed, as I've heard many bad stories about fully managed options from friends with let properties. As I work away for 4 weeks at a time, would you envisage any massive problems with that?


    I should point out in support of Q3 that the place I’m looking at will be let to professionals, and that if any emergencies arise that need fixing immediately, I'll be on email and able to arrange emergency repairs remotely, as it were.

    YES there could be problems and you seem to be thinking them through. In addition to a 24hr emergency insurance service to cover drainage, gas and electrical services including central heating I would recommend you have a trusted friend who would be prepared to provide an alternative contact address and step in and help. You will need to inform someone of your property insurance details in case there is,for example, a fire or burglary
    ........ hope this is a useful start.

    Have you considered the pros and cons of the tax free income from a "rent a room" at your present property?
    Vic - wicked landlord
    Any advice or suggestions given in my posts are intended for guidance only and not a substitute for completing full searches on this forum, having regard to the advice of others, or seeking appropriate professional opinion.
    Without Plain English Codes of Practice and easy to complete Prescribed Forms the current law is too complex and is thus neither fair to good tenants nor good landlords.

    Comment


      #3
      Wow, quite a lot of information on HMOs out there, at varying levels of decipherabilty.

      Okay so as I understand it, in order to let out 3 flats and live in the 4th, with the option of moving out if i ever grow up and get a real job etc, I'd have to licence my proprty as an HMO. I can find out the requirements from the local town council and negotiate the price down on the basis of the changes needed.

      Having given a little more thought to the managed/self managed option, and having had another job option cast my way earlier today, I was wondering how to identify a good letting agent. I don't know about the name and shame policies on this forum but a friend of mine has had very bad experiences with a national chain. Or does anyone have any recommendations? (Blackpool/St Annes/Preston areas)

      I have considered letting a room tax free, but when I come back from a month of living in communal surroundings, it's nice to have a bit of peace and quiet, and my own space. Hence the idea of flats.

      Cheers for the response though, I'll get there in the end!

      Comment


        #4
        Originally posted by philelmer
        Okay so as I understand it, in order to let out 3 flats and live in the 4th, with the option of moving out if i ever grow up and get a real job etc, I'd have to licence my proprty as an HMO. I can find out the requirements from the local town council and negotiate the price down on the basis of the changes needed.
        !
        Not necessarily, for a mandatory HMO licence the requirement is 5 or more persons, 3 storey or more, in two households and sharing of at least one amenity would be required.

        There are other types of licensing additional and selective, you would have to contact your local authority to make sure they aren't implementing these.

        If you are refering to my post in the HMO forum regarding 'mandatory licensing for self contained flats' and draft regulations, I should point out that these are only draft and there is an intense debate at the moment as to what the draft regulations say. I read the draft a number of times and am now convinced that the 'licensing' part of these regs are only going to apply where a local authority implement additional licensing. Mandatory licensing only applies to HMO's as described in my opening paragraph.

        Comment


          #5
          I wasn't directly referring to your post, although it was a useful start, (so cheers for that!) more that i read the draft regulations and as much as i could find on the local authority websites. Like you said, they are subject to a level of interpretation, but I've based my assumption on the worst case scenario.

          For the property in question, it would be a 3-storey affair with 4 flats, so would house, in all likelihood, more than 5 people. If you class an entrance hall as a shared amenity, (again thinking most strict case) then it could class as an HMO.

          Sorry, this is turning into an HMO discussion isn't it...

          Any advice on finding a decent letting agent though?

          Comment


            #6
            No probs Phil, when it is refering to amenities its kitchens, bathrooms, wc's. The property would be a HMO if the conversion was pre 1991, but if it contained just self contained flats it would be mandatory to licence.

            Comment

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