Living back with my mother…
I’m thinking of entertaining the idea of getting my first BTL.
I’m mortgage free at my present home so by moving in with mother and renting my property this would give me a small income of around £450 / £475 a month.
I want to get a 3 bedroom property and rent 2 of rooms out to different people, and return back to my Moms to acquire a good cash flow situation and make over payments to the BTL by combing the rents from the 2 rooms, my income, and the rent from my mortgage free home totalling monthly payments around £3k.
Question is; if living for a long period with my mother doesn’t work out, can I move into the 3rd bedroom at any point?
Please advise…
Thanks
Mark Doxford
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Member Since January 2011 - Comments: 12193 - Articles: 1396
3:31 PM, 29th September 2014, About 12 years ago
Hi Mark
If you are planning to retain a room in the three bed house then what’s the point of living with Mom?
As a live in landlord you have far more rights and the first £4,250 of rental income would be tax free under the “Rent A Room” scheme too. There’s nothing to say how much time you have to spend at home and there are no limits on how long you can stay at your Mom’s either. All you need to do is prove that you live at the address, e.g. all post goes there, driving licence there, on the voters roll there etc.
Get my point? 😉
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Member Since September 2013 - Comments: 104 - Articles: 3
4:42 PM, 29th September 2014, About 12 years ago
I’m assuming that your current property would not be suitable to rent spare rooms out, as well as living there yourself( ie, it could be a 1 bedroom flat, for example). If this is not the case, then the scenario outlined by Mark, above, would be applicable.
If you wanted to live in the BTL property, in a spare bedroom, this would not be possible unless there is a regulated BTL mortgage in place. These regulated BTL mortgages are few and far between now, so you will need to take specialist advice. Please take a look at my profile, and contact Mark at property118, who will give you my details, if you need further assistance.
Member Since January 2011 - Comments: 12193 - Articles: 1396
5:07 PM, 29th September 2014, About 12 years ago
Reply to the comment left by “John Constant” at “29/09/2014 – 16:42“:
Hi John
My thinking was that the new 3 bed property would be purchased as a PPR with a residential mortgage. So far as I’m aware, lenders will not have a problem with an owner occupier taking in lodgers will they?
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Member Since September 2013 - Comments: 104 - Articles: 3
5:34 PM, 29th September 2014, About 12 years ago
Reply to the comment left by “Mark Alexander” at “29/09/2014 – 17:07“:
Mark, I was working on the basis of BTL mortgage because of the intention to move back in with mum and not to live in the property.
If he lived in the property from the off, on a residential mortgage and tenants in place, I would think that the lender would need to know about that. The situation is the same if a sole purchaser wishes to buy and have their partner live with them. The lender would need to know about that scenario for affordability purposes.
Member Since January 2011 - Comments: 12193 - Articles: 1396
5:50 PM, 29th September 2014, About 12 years ago
Reply to the comment left by “John Constant” at “29/09/2014 – 17:34“:
Hi John
Yes I see where you were coming from now.
Given that Mark D had mentioned paying £3k pcm into the mortgage I doubt affordability would crop up as an issue but we don’t know that for sure. I suspect that on day one the details of the lodgers would be unknown, hence affordability would have to be considered on Mark D’s income alone of the resi mortgage on a PPR route is the preferred option.
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Member Since April 2014 - Comments: 985 - Articles: 2
12:05 PM, 30th September 2014, About 12 years ago
Hi Mark (Doxford), I would look at this in a totally different way. You have paid off your mortgage so why not remortgage it and buy two additional properties on an interest only mortgage and let them? Obviously I don’t have any figures to work with but it may be worth you doing some sums to see if its viable – welcome to the property investment world!
Member Since September 2014 - Comments: 11
6:45 PM, 2nd October 2014, About 12 years ago
Reply to the comment left by “Mark Alexander” at “29/09/2014 – 15:31“:
Thank you Mark for your feed back reading between the lines I know where you are coming from.
Member Since September 2014 - Comments: 11
6:50 PM, 2nd October 2014, About 12 years ago
Reply to the comment left by “Rob Crawford” at “30/09/2014 – 12:05“:
Hi Rob Thank you for coming back with a valid suggestion. 1 bed Flat resale about 125k. Rental in come £450.
Member Since September 2014 - Comments: 11
6:55 PM, 2nd October 2014, About 12 years ago
Reply to the comment left by “John Constant” at “29/09/2014 – 16:42“:
Hi John thank you for your feed back, you guessed right it’s a 1 bed flat. My thoughts are to go down the line of my next purchase to be a PPR and rent out the rooms whilst technically living with them but spending a lot of time at my moms…
Member Since September 2014 - Comments: 11
7:18 PM, 2nd October 2014, About 12 years ago
Reply to the comment left by “Mark Doxford” at “02/10/2014 – 18:50“:
Thank you for the warm welcome to the property world, can I make over payments to a interest only mortgage. ?