Buying a house (and renting)

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No:1 Final Fantasy Fan
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PostRe: Buying a house (and renting)
by No:1 Final Fantasy Fan » Tue Mar 19, 2019 3:53 pm

Does anyone here currently renting a room out? Like making use of that rent a room relief where you can earn up to £7,500 a year before being taxed?

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Super Dragon 64
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PostRe: Buying a house (and renting)
by Super Dragon 64 » Tue Mar 19, 2019 4:00 pm

I'm looking at buying a place with my fiancée and we're trying to work out the feasibility of a freehold flat - does such a thing even exist?

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pjbetman
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PostRe: Buying a house (and renting)
by pjbetman » Tue Mar 19, 2019 7:31 pm

Bunni wrote:
BID0 wrote:
Bunni wrote:The lovely flat I seen sold as expected.

Been offered a low amount due to the nature of my work and that they don’t take total income into account (I’ve worked two jobs for the past year) I don’t want to settle, but waiting two years for a permanent contract at my new job is a chore, though I’ll be offered a lot more at that time. Frustrating knowing that I worked so hard but it doesn’t get me as far as it should because my contract doesn’t say permanent.

Some banks just use 3 months of your wage slips/proof of earnings so that might help you get around the 2 years thing


I’ve got to bring in a year worth of wage slips (I get paid weekly ffs :facepalm: ) to get this far, and there’s limited lenders who are willing to deal with my contract, so unfortunately three months wageslips won’t cut it.


Find yourself an independent mortgage broker. They'll sort you out a mortgage, and get you a better deal.

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Bunni
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PostRe: Buying a house (and renting)
by Bunni » Tue Mar 19, 2019 7:38 pm

It was independent. But I’ve got my start date for my new jobs so I’m just gunna wait it out. I don’t want to settle borrowing just enough for a mediocre flat, when I can wait a year or two, save up more deposit and hopefully be offered more which would buy something more what I’m after.

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Qikz
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PostRe: Buying a house (and renting)
by Qikz » Tue Mar 19, 2019 8:00 pm

So my solicitors say that they're just waiting for the response to the enquiries then as long as the rest of the deposit money comes through (should be tomorrow I hope!) then I should be able to exchange very soon/complete soon after. :D

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PostRe: Buying a house (and renting)
by pjbetman » Tue Mar 19, 2019 10:00 pm

Bunni wrote:It was independent. But I’ve got my start date for my new jobs so I’m just gunna wait it out. I don’t want to settle borrowing just enough for a mediocre flat, when I can wait a year or two, save up more deposit and hopefully be offered more which would buy something more what I’m after.


I'd look around for a different one. There's a massive difference between the best and the worst. I'd be looking at ringing a few financial advisers and getting some names of recommended mortgage brokers. I'd avoid anyone linked to a building society or bank or estate agent. They tend to be the worst.

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Bunni
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PostRe: Buying a house (and renting)
by Bunni » Tue Mar 19, 2019 10:37 pm

It was a whole market advisor I went to, they showed my hundreds of brokers and banks and such, and highlighted the few that accept my working contracts. I’m not desperate to buy, if a good deal came up I would run with it but my visit confirmed what I expected, that nobody wants to lend a decent multiple of my annual income because it’s not documented as a permanent salary. I can wait it out happily, my landlord is excellent and my flat is nice. I’d rather get a better deal down the line when my work becomes ‘permanent contract’ which should be in a year or two.

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Moggy
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PostRe: Buying a house (and renting)
by Moggy » Thu Mar 21, 2019 11:42 am

Super Dragon 64 wrote:I'm looking at buying a place with my fiancée and we're trying to work out the feasibility of a freehold flat - does such a thing even exist?


It can sort of exist, but there will always be common areas that you and other tenants will have responsibility for. If you and the other tenants own the freehold then you will probably need to set up a small company amongst yourselves to deal with the general upkeep of the property as well as things like the fire alarms, buildings insurance etc.

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OnlyShallow
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PostRe: Buying a house (and renting)
by OnlyShallow » Sun Mar 24, 2019 4:55 pm

At last, moved into our new house :toot:

Whole process wasn't too stressful, mainly because my girlfriend did most of it

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Grumpy David
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PostRe: Buying a house (and renting)
by Grumpy David » Sun Mar 24, 2019 5:20 pm

Moggy wrote:
Super Dragon 64 wrote:I'm looking at buying a place with my fiancée and we're trying to work out the feasibility of a freehold flat - does such a thing even exist?


It can sort of exist, but there will always be common areas that you and other tenants will have responsibility for. If you and the other tenants own the freehold then you will probably need to set up a small company amongst yourselves to deal with the general upkeep of the property as well as things like the fire alarms, buildings insurance etc.



Commonhold never took off in England. Scotland has essentially Commonhold / Freehold flats.

Most lenders won't consider a fully Freehold flat in England since it would mean one flat owner is fully responsible for the entire building and grounds.

There is "Share of Freehold" which will still have an underlying lease but typically it is when a house has been chopped into 2 flats. The owners agree to "costs as and when" meaning usually no service charge and definitely no ground rent. Downside is that it's unlikely there will be a savings pot to cover the eventual roof replacement etc so rather than paying a bit each month, you could get a large bill as minor upkeep tends to get ignored until it's no longer minor and avoidable.

The calculations for Lease Extensions are based off the Ground Rent and usually council flats don't charge leaseholders Ground Rent so the cost of adding 99 years onto the lease is usually not nearly as painful as someone wanting to extend a lease with £300 per annum ground rent and a lease below 80 years.

In theory, a "Not for Profit" management company for the larger blocks of flats with leaseholders is more optimum than Commonhold as people would just be too lazy to fully engage with it.

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Preezy
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PostRe: Buying a house (and renting)
by Preezy » Thu Mar 28, 2019 1:17 pm

Thought this was interesting and worth sharing:
Almost half of the babies born in the UK are starting their lives in rented accommodation, according to a housing report from an insurance firm.

The Royal London says it is the first time in almost six decades a child is as likely to be born into a rented home, rather than owner-occupied.

Families with children privately renting have risen by 94% in a decade.

Becky O'Connor of Royal London says renting is "increasingly impossible to escape from" for young families.

The analysis shows how the so-called "generation rent" is becoming "generation parent", with 49.2% of children born to families who are renting, according to figures for 2016-17.

https://www.bbc.co.uk/news/education-47723672

edit: I see Moggy beat me to it in his Comments Thread, but as no one reads that rubbish I'm safe to keep my post ;)

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Moggy
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PostRe: Buying a house (and renting)
by Moggy » Thu Mar 28, 2019 1:32 pm

Preezy wrote:Thought this was interesting and worth sharing:
Almost half of the babies born in the UK are starting their lives in rented accommodation, according to a housing report from an insurance firm.

The Royal London says it is the first time in almost six decades a child is as likely to be born into a rented home, rather than owner-occupied.

Families with children privately renting have risen by 94% in a decade.

Becky O'Connor of Royal London says renting is "increasingly impossible to escape from" for young families.

The analysis shows how the so-called "generation rent" is becoming "generation parent", with 49.2% of children born to families who are renting, according to figures for 2016-17.

https://www.bbc.co.uk/news/education-47723672

edit: I see Moggy beat me to it in his Comments Thread, but as no one reads that rubbish I'm safe to keep my post ;)


If nobody reads it, then how did you know it was there? Admit it Preezy, you strawberry floating love my thread. :datass:

The idea of people renting isn’t a bad thing as long as rents are controlled and renters have proper rights. As things stand in this country, renting is awful.

There are going to be a lot of homeless pensioners in the future when their £200 a month pension doesn't cover the £900 per month rent.

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jawafour
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PostRe: Buying a house (and renting)
by jawafour » Thu Mar 28, 2019 1:36 pm

I can relate to those figures. I've lived in my flat (south-east London area) for nearly twenty years and the ownership-type and resident mix has changed a lot in that time. Back in 1999 most residents owned the flat and tended to be couples and single folk in the age bracket 25 to 40. Fast forward to today and far more flats are rented, with residents spanning from circa 20 (generally, housing benefit folk) right up to about 70; and many flats are homing several children. You occasionally see people in flash motors (generally, brand new Range Rovers) driving in and these are flat owners who are renting several properties.

Rent prices are high, too; more than I pay for my mortgage. London pricing has got way out-of-hand even when wages have generally been stagnating. Buying any kind place in the area is now beyond the scope of most single people; you'd need a lot of money to go it alone. Oh, and the area is definitely nothing special, either; your typical densely packed, scrappy London suburb.

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Drumstick
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PostRe: Buying a house (and renting)
by Drumstick » Thu Mar 28, 2019 2:17 pm

Moggy wrote:The idea of people renting isn’t a bad thing as long as rents are controlled and renters have proper rights. As things stand in this country, renting is awful.

Nailed it. And nothing will get done about it because those in a position to change this are making a killing by abusing it.

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Moggy
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PostRe: Buying a house (and renting)
by Moggy » Thu Mar 28, 2019 2:21 pm

Drumstick wrote:
Moggy wrote:The idea of people renting isn’t a bad thing as long as rents are controlled and renters have proper rights. As things stand in this country, renting is awful.

Nailed it. And nothing will get done about it because those in a position to change this are making a killing by abusing it.


Going back to a council house system would fix it, but I’m not holding my breath.

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No:1 Final Fantasy Fan
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PostRe: Buying a house (and renting)
by No:1 Final Fantasy Fan » Thu Mar 28, 2019 5:45 pm

My mortgage went through today. Can't believe I'm going to have my own flat in Greenwich Cuttysark. It's happened so quick as I only did the viewing about 2 weeks ago

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PostRe: Buying a house (and renting)
by pjbetman » Thu Mar 28, 2019 6:07 pm

Moggy wrote:
Drumstick wrote:
Moggy wrote:The idea of people renting isn’t a bad thing as long as rents are controlled and renters have proper rights. As things stand in this country, renting is awful.

Nailed it. And nothing will get done about it because those in a position to change this are making a killing by abusing it.


Going back to a council house system would fix it, but I’m not holding my breath.



I dunno about your area, but in Northwest we have housing associations, who've basically taken over the council flats/houses (and bought more, i think?). Some of them own 20,000+ properties. They charge very low rents (a 1 bed flat is about £300 per month, for example), but you need to be on their list of classifications (single mother, elderly etc) or join a very long queue (of 2-3 years) to get one.

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Moggy
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PostRe: Buying a house (and renting)
by Moggy » Thu Mar 28, 2019 6:56 pm

pjbetman wrote:
Moggy wrote:
Drumstick wrote:
Moggy wrote:The idea of people renting isn’t a bad thing as long as rents are controlled and renters have proper rights. As things stand in this country, renting is awful.

Nailed it. And nothing will get done about it because those in a position to change this are making a killing by abusing it.


Going back to a council house system would fix it, but I’m not holding my breath.



I dunno about your area, but in Northwest we have housing associations, who've basically taken over the council flats/houses (and bought more, i think?). Some of them own 20,000+ properties. They charge very low rents (a 1 bed flat is about £300 per month, for example), but you need to be on their list of classifications (single mother, elderly etc) or join a very long queue (of 2-3 years) to get one.


I’m lucky and own a place, but I know flats/houses that are council or housing association are like gold dust around here.

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Jenuall
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PostRe: Buying a house (and renting)
by Jenuall » Thu Mar 28, 2019 7:47 pm

Not sure if it's a general policy nationwide but our previous house was a new build and the developers were required to sell an amount of it to the housing association so in theory there should always be a certain amount of "stock" in the system.

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Qikz
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PostRe: Buying a house (and renting)
by Qikz » Thu Apr 04, 2019 1:17 pm

Still haven't exchanged. Sent what I thought was all the documents and I'm missing one which I've now gotta rush to get signed Nd sent tomorrow. I just want to move and get it over with.

Please tell me that once I've exchanged I don't have to do anymore signing of documents lol

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