G77

With the housing market as it is, starting to face the fact that we may have to rent out our UK house till the market settles down.

We don't own enough equity in our house to convert to a buy to let mortgage, so we would have to get the bank (HSBC) to agree to let us rent out on our existing mortgage for a period of time - does anyone have any experience of doing this?

I've spoken to their call centre and they say it's down to the discretion of the lending branch, so I'll have to go in and see them

Also - other daft questions about renting :-

* What % do letting agents generally charge for acting as the landlord?

* If your property stands empty for a while, as well as the mortgage, are you liable for paying council tax and utilities (standing charges)?

* Are you more or less likely to get/maintain tenants with a furnished or unfurnished property?

Thanks.

destinationnovascotia

Can't answer all your questions but the bits I know are:

Letting agents charge around 20% for a full service.
Council tax is payable continuously if there is any furniture in the house. If it is completely empty you get 6 months free.

I hope this helps.

G77

Thanks - so does that mean that as soon as a tenant moves in, they pickup the council tax bill? Or are you always liable for it as the landlord? I know it is included in rent generally in Canada, but I thought tenants pay it in the UK?

If it was unfurnished, is that 6 months in total, or just one period of "free"? I.e. you have tenants for 6 months, then 2 months empty, then another 6 months with tenants, then 1 month empty - is that 3 months out of 6?

benjy25

I have been quoted between 10-13% for a fully managed service.

Ben W Bell

Council Tax is paid by the occupant in the UK, not necessarily the owner. Tenants are responsible for it.

Do be aware if you rent your house that you need to speak with both your mortgage company and your insurance company. Many buildings insurance policies don't cover when it's rented and you may need new policies.

Johnsyweb

We did the same thing with HSBC, but had to change mortgage types to "Buy-to-let". This was, if I recall correctly, largely a formality.

These are not at all daft!


In Crawley, agents charge between 10% and 15% for a fully-managed service. You should be able to negotiate a lower introductory rate. I think we paid 5% for the first three or six months.

Indeed you are. It's your property, your responsibility. Of course the tenants are responsible for the duration of their tenancy.


I think the jury's out on this. On past experience, I wouldn't leave any pieces of furniture to which I had any form of emotional attachment in the property.

Good luck!


--paj

G77

Thanks for the replies, most useful.

Did you have much equity in your UK property? We only own about 2% and I believe a buy to let mortgage needs you to own/put down 30% - obviously we don't have that kind of cash hanging around!

G586

Furnished is a pain but it depends on what an agent advises is easier to let.

Remember to make sure you have enough money by to pay for repairs, as and when they are required as whilst you could probably live with an issue, a tenant will expect to have things sorted.

I pay 10-12% in commission but there are fees on top of that, eg tenancy agreements fees and inventories.

G77

Was thinking furnished as a lot of the stuff we probably wouldn't have taken to Canada anyway and might make it desirable - i.e. Plasma TV etc!!

However, are you liable to fix anything that's part of the furnishings? E.g. TV goes wrong, you have to replace or fix it?

bazzz

I had a regular mortgage with HSBC. I talked to my branch and got them to send a "permission to let" letter or some such. So I kept my existing deal with them, which wasn't stellar, but pretty good for a buy-to-let deal (1% above base rate). I think they're just happy to keep your custom as you'll likely take your mortgage elsewhere if they don't give you permission.

You shouldn't pay more than 11%+VAT for a fully managed service. Many companies will start out with a higher rate, but you can beat them down once you start playing them off against their competitors. Depending on the actual rent of your place, you might be able to get them to go lower - it doesn't actually cost them more to manage a big house compared to a one-bed flat, so they can still make a nice profit on a lower percentage of a bigger rent. If that makes sense.

Yes, you are liable to pay council tax and bills on your place while it's empty - if there's furniture in it.

As for furnished or unfurnished - that will depend on the property and the market you're targeting. Are your prospective tenants likely to have their own furniture? Talk to your letting agent - if they're any good they'll be able to advise you acordingly.

bandit

Hey

I'm kind of in the same situation than you too, however, I have more equity in my property, I have just heard from my mortgage provider (Virgin 1 account) that they do not do buy to let mortgages.

Thankfully I met my IFA on Wednesday last week, so hopefully they will source my mortgage and assist in most of the financial things I need to do. I am completly in the dark, and find that paying for this assistance should hopefully make my life easier.

I have been told that in my area (nr Guildford, Surrey) that Un-Furnished properties are easier to let than Furnished. Not sure why, however I will advertise mine as both, and then what ever comes up, I'll manage!!!

And, my quotes for managed lets, is from 10 - 15%.

Bx

G586

Yes, if it provided at the start of the tenancy and it breaks, you are expected to replace it.

Unless you are going for a high-end let or for corporate tenants, keep it to the bare minimum, fridges, washing machine and maybe a dishwasher, nothing else unless it is a furnished let when there would be some lighting.

Unfurnished is a lot easier as it is hard to judge wear and tear for furnished.

G586

Where are you? More precisely, where would your house be?

G77

Thanks for the replies - seems unfurnished maybe more straightforward, however, I know when we first rented it was a Godsend to have some furniture in the place as we started out with absolutely nothing. Guess I'll have to get some agents round and see what they say.... We're in a market town in Leicestershire.

Bazzzz - did HSBC put any time limit on their consent? i.e. if they only let me do it for 12 months, the housing market could be no different by then and I'll still be in the same situation as I am now!

bazzz

They didn't, but I wasn't trying to sell my flat.