Ladybug Posted August 25, 2006 Report Share Posted August 25, 2006 Hello all. We're due to rent out our home and, the idea is, to raise a buy to let mortgage on it and use that to buy another smaller home to live in. We've been offered a two year corporate let with all rent paid up front. I thought this was a great idea...but I'm starting to wonder. For one, I've been told it's difficult to get a BTL mortgage without an AST and we can't have an AST as our rental income is over £25K a year. Two, and this is what I'd really like advice on please: we've been told that letting out for over twelve months is not a good idea as it gives the tenants more 'rights'. Is this true? Any advice would be much appreciated. I've never done this before and am scared of making the wrong decision. Thank you. Link to comment Share on other sites More sharing options...
Trenners Posted August 25, 2006 Report Share Posted August 25, 2006 Hi Ladybug, Most buy-to-let mortgages INSIST that you let your property on an AST and the term is no longer than 12 months. I agree that if the rent is greater than £25K per annum then an AST cannot be used. Also, as you are letting to a company (and not an individual) - is another problem that will prevent your from using an AST. Finding tenants for "long lets" is usually good news for the landlord as the number of void periods is minimized / elimated meaning a much higher yield. Regarding letting a property out for 12 months - if the property was let under an AST then 12 months does not give the tenant anymore right than a 6 month agreement - so you have been mis-informed. HOWEVER, I am not sure what the situation is if you do not use an AST. Hope that helps .... Mark Link to comment Share on other sites More sharing options...
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