UK Landlord Forum / Life

Hi all,

I have been left a house by my grandparents and am considering letting it out. I have no mortgage on it at the moment but it needs updating so thinking of getting one to cover those costs. Do I get a bigger buy to let mortgage and pay it into my own mortgage or go for a small buy to let. 

The third option is to buy the house next door to me do it up and let that out too... I work full time so this would be about avoiding paying too much tax and getting the best return. Next door needs a lot of work so could turn into a money pit but I dream of knocking through in the future! Any insight form someone who's been there would be greatly appreciated.

Cheers
Chris

Hi Chris.

Wow, good on you.

This is very much a chicken and egg.

You need to decide what you want personally for yourself and your family.

Do you yearn for early retirement, or would you go nuts being at home?

Do you want to retrain, emigrate, downsize, have kids (or more) etc etc.

Use this as an opportunity to come up with your personal business plan for the next 5, 10 & 20 years.

Decide on the basis of this whether this course of action is for you.

The option to sell Grannies pad and spend the money on Holidays over the next twenty years is as valid for your personal happiness as the renting option.

If you did the maths, sold grannies, cleared your mortgage or what ever, you would be saving your mortgage payments, that in itself is a huge bonus.

Can you handle the commitment of higher outgoings... 100% certain, with future income and capital growth being allot less certain. Can you give 5 days a year to managing it? If so you could make some money short term.

What I am saying is don't get hung up on the rental landlord thing. Don't get hung up on buying next door to knock it through. There are nicer houses for the money, and you won't have eventual issues with planning and when you come to resell.

If this doesn't put you off then, you my child, are ready..........

Me Patronizing?? Never!

It's just one thing, I have lived by the moral, never look back and think if only I had??? I thought that was about opportunities and business, but it is just as valid about Holidays with kids, weekends away, Sabaticals, retraining, counselling, Gratuitous sex........

Just sayin'

Yeah I think you are right about next door... I ammore and more thinking that letting is the way to go! I am a little concerned about the tax though do I get a buy to let mortgage that covers my own mortgage and pay that off or keep the rental property wirh no mortgage?  Your help and advice is appreciated

Chris