Is it possible to buy a flat and rent it out straight away ?
Friday, January 13th, 2012 at
5:14 am
I am considering buying a flat (taking out a mortgage) which I would like to rent out for 1-2 years woud I be able to do this especially considering the mortgage ? thanks!
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Filed under: flat mortgage
You need to get a ‘Buy to let’ mortgage’.
Yes…with a buy to let mortgage…providing that you have a tenant….you must let your insurers know that you have a tenant.
just rent it out and say nothing
yes, you have to do it with a buy to let mortgage, which are always a little bit more expensive than other ones, but i think you onlly get 80 per cent
You should have a buy to let mortgage, which are a little higher rate, and also you will have to put between 5-20% ddeposit. If you take a normal mortgage, you will have to get permission to rent, seeing your defiantly going to rent you should ask if this is possible, as not all lenders will give permission.
And a lot of agents will require proof.
The mortgage should be a buy to let mortgage and you need to hav a deposit of at least 15% in today’s market place. The amount the lender will actually lend may be a lot lower than this though as it is based on the rent the property could achieve.
Buying to let can be very risky as you will need to be able to cover the mortgage if the property is empty for any given period and need to have sufficient monies to cover any repairs or maintainence.
You should ask what the purpose of the property would be, eg, is it to get monthly income or are you looking for capital growth as prices increase.
At the moment with property prices and mortgage rates being so high it is becoming very difficult to make money out of buy to let but the demand for rental properties is on the increase. This is due to people not being able to get mortgages, repossessions and people being put off from buying as they feel the market is going down.
Go an see an independent financial/mortgage adviser who can discuss all the pros and cons and check that you would be able to get the mortgage before going any further.
If you need any more help just send me email. Good luck