Whats involved in renting out
At the moment I am considering renting out my current property which I have lived in for 6 years and take some of the equity to put on a new property. I have a really low mortgage and I have been advised to raise enough equity to pay the mortgage for example charge £500 rent and pay £500 mortgage this way I wont have to pay the lovely tax man anymore money?
The problem is I'm so confused about what fees I would have to pay on the buy to let mortgage on my current home and is it straight forward to raise the extra cash. Sorry to go on but the financial adviser I went to see blinded me with science and I came out even more confused (which isn't hard for me).
I am not a Financial Advisor but if the one you have is blinding you with science then get another one and quickly. There is no way you should undertake his or her advice without first understanding fully what they propose.
Secondly renting out your property needs to be properly considered;
1. Is it rentable? It should preferably be low maintenance and there needs to be rental demand for it. Get a couple of high profile letting agents around to see if they agree with your Financial Advisor. You can charge rent but a tenant may not necessarily be prepared to pay it.
2. What about the letting and management costs?
3. What about taxation?
Don’t sleep walk into this.
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