# buying and letting houses



## mart. (Jul 7, 2008)

Trying to get my head around if this is possible. 

Currently live I'm house A. has mortgage. 
Inherited with my brother and sister house B, has a small mortgage
Need house C to live in a house A is now to small. 

So could I...

let house A, it pays for its self. 

Remortgage house B, let house and it pays for it self and gives an extra income. 

Use some of the money from the remortgage of house B as deposit for house C. 

I would end up with 3 mortgages, all payed for by the rental income. 

Does make sense? Is it possible ?


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## Avanti (Jan 17, 2006)

The terms of the mortgage perhaps suggest for your major dwelling only, so you simply can't just let it out.


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## The Cueball (Feb 8, 2007)

House A - have you checked the rental would pay the mortgage?!? Are you even allowed to rent it out under the terms from your current lender?!?

House B - Same as above... plus, are your brother and sister OK with getting into debt for you to buy another house?!?!

I doubt 2 rental incomes, one of which is a 3rd share, if I have understood your post, would pay for each house, plus repairs and rental costs PLUS a house for your family...

Have you ever rented out a house before, do you have any clue as to how difficult is can be!?!?

What happens if they both don't rent out for 6 months...how are YOU going to afford all 3 of the mortgages...

:thumb:


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## mart. (Jul 7, 2008)

The rental will cover the mortgage will cover for house A. I'll have to check with thr lender if I can let it.
The rental for house B would cover mortgage for it twice over, that woild be buy to let anyway. 
On paper the rental for house B would cover the payments fot house C but ad you said its split 3 ways and i cam cover that as i pay my own mortgagr now.


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## Avanti (Jan 17, 2006)

mart. said:


> The rental will cover the mortgage will cover for house A. I'll have to check with thr lender if I can let it.
> The rental for house B would cover mortgage for it twice over, that woild be buy to let anyway.
> On paper the rental for house B would cover the payments fot house C but ad you said its split 3 ways and i cam cover that as i pay my own mortgagr now.


You have to look into letting quite intensly, letting is not so sweet as some would have you believe, my bro has a house he lets, not all tenants are quick to fork up the rent and many look for excuses to try and dodge paying this month to the next, when you see NO DSS etc the advertisers put it there for a reason


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## dandam (Apr 10, 2011)

I have a house rented out in Ireland. All was fine with my last tenants until they suddenly left giving one months notice and telling my letting agent to take the last months rent from the deposit. I then had to spend €5k on the house getting repairs done, new carpets, redecorated and so on - plus 16 hours per day for a week of my own time working on the place. There was furniture missing, court summons arriving along with baliffs and I had no come back on the tenants (I couldn't find them) or the lousy agent.

All I am saying is that you need to be prepared for the worst, some friends with rental houses have told me some horror stories of tenants going missing (one turned up in prison !) flick knives found in various places through the house, missing carpets, even walls removed where a room was being used to teach someone how to plaster !

On the other hand I now have brilliant tenants who pay the rent on time every month and came through personal recommendation from neighbours and friends, the place is spotless and looked after - sometimes you get great tenants, other times you get terrible one's - just be prepared for the worst and make sure you have money in the bank, just in case of emergency repairs. And don't expect tenants to treat your house like you would, they rarely do !


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## Beancounter (Aug 31, 2006)

All valid points above.
At the end of the day, its always possible, you just need to make sure that you have the correct mortgages in place that allow you to let the property out. As CB says, are your Brother and Sister ok with you getting a mortgage on house B, they are stakeholders in the property and will be detailed on the mortgage?

Make sure you get some decent landlord insurance too. As said, some tenants can be a nightmare, others a joy, problem is you rarely know which one you're going to get 

Covering the mortgage when it's empty is another major issue. It's not unheard of to have a house empty for a few months, you still need to service the debt, rented or not. Also, assuming the worst, anything vacant for over 6 months means you're liable for Council Tax too.

Lettings can be a great way to 'save' for the future, but you need to go into it with your eyes wide open.

Work out what you need to do and what type of mortgages you need on the properties, then do a google search. There are plenty of specialist B2L websites offering lots of free advice, read them and then work out whats the best way forward.

Lots of people try and cut corners, eg not getting a B2L mortgage and in my view, it'll only end in tears, so do it properly. :thumb:

HTH


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