Renting my house

[boyo bach]

Hi. Can anyone give me a quick guide to renting? My partner and I have a house each, however her house is just being sold. We live in my house, but were thinking of selling both houses and just buying a house between us. I have been thinking of the possibility of keeping my house and renting it while still buying another home together? How could this work? What is releasing equity etc? Thanks.

[Kathyan]

I think you have to be over 65 to do equity release. With regards to letting out your house I would use a good letting agency and get insurance. We used the estate agent who sold us our house (they gave us a discount!) We also used Letsure insurance company. The insurance covers your rent if the tenants won't leave when asked to and legal costs to get them out. You will have to inform your mortgage company that you intend letting and you will be taxed on any rent you receive. Hope this helps!

[boyo bach]

Many thanks :-)

[ali_alic]

Go to WHSmith and get their Lawpack self-help kit called Residential Letting, it not only has all the ino you may need for a residential letting but it also has a rent book in there and templates of documents such as possession notices abd inventories etc.

[Mrs_Pegasus]

The use of the words equity release are confusing.

You can get an equity loan which is basically increasing your mortgage to the value of the property i.e. after say 3 years the house has increased in value, you could in effect borrow that money.

Equity release schemes which are aimed at the older market is where you take X amount out of the property but you dont make any payments, its assuming you will pop ya clogs in the next 10-20 years but interest is accrued on the money. In recent years the law has changed and I dont think it can be more than 50% of the amount borrowed.

You should first have a chat with an independant financial advisor. You would also need to speak to your lender because some will not let you rent out a property. (if you have tenants in and fell behind with your payments then the lender would struggle to repossess the house).

[boyo bach]

Sound advice. I thank you. :-)