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  • Buy-to-Let

    Can I rent out flat for a few months only?

    My mortgage term has come to an end and I cannot re-mortgage.  The mortgage company has given me extra time to sell the flat but after 6 months of the flat being empty and having to pay the mortgage and the council tax I need to rent it out to bring some money in.

    The mortgage company hasn't contacted me with how much longer they will give me and I am still paying the mortgage. 

    My friend said don't contact them and rock the boat as I might have slipped through the system.  The flat is being marketed for sale but the market is not moving at the moment.  How can I bring money in from the flat?  Any ideas would be welcome

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    Is this an IOM which has expired?

    Are you unwilling/unable to get a new mortgage?

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    This is an interest only mortgage and due to my credit rating they are unwilling to re-mortgage.  It has been on the market for 6 months and still paying the mortgage and council tax has wiped me out.

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    Everything sells for the right price. Lower your asking price until you get a buyer.

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    Short lease of 66 yrs means only cash buyers as not mortgageable.

    In this case asking price is only 21% more than she paid in 2007 - since when SE prices are generally up around 50%.

    Allowing for legal fees a price reduction of say 15% gives a breakeven (nominally) from the 2007 purchase price.

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    I can see these scenarios but am I digging myself into more problems?  Do you have any other ideas?

    1)  Could I rent out each bedroom x2 and communal bathroom and kitchen as a flat share?  Would I have to furnish the bedrooms or could I leave them unfurnished?  I don't live in the property but its 4 miles away.  I could then have a months notice period. 

    2)  I do have someone interested to rent as a flat but she is on disability and I would have to do it on an AST for 6 months minimum and if the mortgage company wanted to take back the flat where would that leave me, and her?  She has seen the flat and is keen to move in ASAP.

    3)  I don't want to sell as it was bringing me income each month, is there another way around it?  The lease is now at 66 years, £11k to renew but I have dropped the price of the flat down to reflect that cost.

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    How much is the flat - £11k sounds v cheap to extend lease at 66 yrs.

    The benefit tenant may be only realistic hope and you get at least LHA rate for the flat for 6 months and tenant pays the CT - so the CT bill is in effect a tax free extra to the rent

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    The 1 bed flat is on market for £124.950.  If I let it out on 6mnth AST what happens if mortgage company want the flat back?  Would having a tenant make it more difficult to sell?

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    Is that the South Rd flat next to pub?

    If you let the flat the lender  would maybe issue S.21 if they wanted vacant possession to sell - but I imagine that could only be issued on expiry of the fixed term.

    Selling is tricky with such a short lease as only cash buyers/investors will be interested.

    Do you have any spare bedrooms at main home for potentially lodgers so you can reduce o/s mortgage?

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    Its on the Brighton Road.  The person who wants to rent it has just said they can pay cash instead of going through the council.  My daughter has today found a flat to rent, (she doesn't want my flat) and will be moving out.  I already let out one room although the lodger has just given in his notice to leave at the end of the month.  I could also let out my daughter's room although she is not keen but needs must.  Oh my, its all change!  I appreciate your ideas, difficult on my own.

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    Have you referenced the potential tenant - be a tad wary of offer of rent upfront - why does she not want to claim LHA?

    Is tenant working/does she pass RTR?

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