Keen to generate some extra income while working away from home? Or maybe you’re eager to become a lucrative landlord. Whatever your reason for wanting to rent out your home, why not join the property experts here at Mistoria Estate Agents to find out whether this is the right route for you?
Below, we explore how buy-to-let mortgages and consent-to-let arrangements could help you to rent out your home.
Can I rent out my house on a residential mortgage?
The question of whether you can rent out your house on a residential mortgage depends on the type of agreement you have with the mortgage lender. Within the terms and conditions of your residential mortgage, it may mention something called ‘consent-to-let’ which can allow the buyer to rent out the property for a short period – we explain this arrangement in greater detail below.
However, if you do not get permission to rent out your property from your mortgage lender first, you’ll be breaching the terms of your residential mortgage and committing mortgage fraud, which can lead to serious consequences. For example, you could be asked to repay the entirety of the remaining mortgage immediately; failing to do so could even lead to repossession of the property.
How does consent-to-let work?
Consent-to-let is typically an arrangement of short-term cover provided by your mortgage lender. This cover allows you to rent out your residential home (that you’ve already purchased through your mortgage lender), providing you with additional income while you’re working overseas, spending an extended period abroad, or even moving to a new home. Relatively easy to obtain, most mortgage lenders will offer you temporary permission to take on tenants without making any changes to the terms of your mortgage.
How does a buy-to-let mortgage work?
In contrast to a consent-to-let arrangement that can be implemented by the provider of your residential mortgage, a buy-to-let mortgage is completely separate and must be obtained instead of a residential mortgage if you want to purchase a property with the express intent of renting it out. Buy-to-let mortgages have higher fees, higher interest rates, and require a greater deposit, but they allow you to rent out your property to tenants for as long as you desire.
Receive dedicated landlord support
If you’d like to learn more about the best way to become a landlord or want to rent out your Manchester-based property, feel free to get in touch with the talented team of experienced property professionals at Mistoria Estate Agents.
Operating across the North West of England, you can find a friendly Mistoria Estate Agents branch in Bolton, Manchester, Cheadle, Liverpool, Salford, and Worsley.
Having sourced countless buy-to-let properties in the North West area, our expert team of estate agents and chartered accountants is just a call away.
Once we’ve received your enquiry, we’ll get in touch to find out more about your specific property requirements!