Need to move, do not want to sell!!

[Coey]

Hi,
We currently live in Essex, in a good 4 bedroom 3 storey town house, close to tube station, 20 minutes from Stratford Olympic zone. Bought 3 years ago for £383000, we have a mortgage of £275000.
A similar property 2 doors away is currently up for rent at £1500 per month.
I have the opportunity of a job in Surrey that will neccessitate a move, but we do not want to sell this property as we still think it is a good investment with the upcoming Olympics.
Can we convert to Buy to let, and use the remaining equity to buy another property in Surrey?
Is there restrictions on BTL with regard to letting to local councils? (We want as little hassle as possible with upkeep, rent collection etc).
Any advice would be gratefully received!

[tom999]

Some councils offer long-term leases typically 3-5 years, and claim to return the property in the same condition as it was when handed over. Some councils will pay market rent, others anything up to about 75% of market rent. The councils house Housing Benefit/Local Housing Allowance (HB/LHA) - so your property may undergo more wear and tear than a private professional tenant

There are also private leasing companies that offer long term leases, e.g. housing HB/LHA claimants, ex-offenders, ex-drug addicts, homeless, etc.

Several factors you may wish to consider:


Check whether your rental income (minus any letting expenses) exceeds the mortgage payments - typically by 125%, but may be more - depends on your mortgage.
If you let your residential property, you will need to check the terms of your mortgage. Most residential mortgages do not allow letting - in the first instance, contact your mortgage lender, mentioning your circumstances and request permission to let.
If you let to Housing Benefit/Local Housing Allowance (under a council leasing scheme) - again check your mortgage terms - most lenders are biased against this (I believe there are specialist mortgage lenders that deal with this sector).
If you are receiving an income from rental property, this is taxable, and you will need to declare this (typically through HMRC's self assessment).

[rajeshk4u]

The Olympics is the biggest con. Don't believe the hype about prosperity. They are spending billions for a 2 week event!. Where is the logic in that?. Even the Track and Field Stadium will be demolished after the Olympics is finished!

I have been to the Barcelona olympic sites and it is just an empty white elephant....

Near the site of the Stratford Olympics they had 5000 jobs (semi-industrial, warehouse jobs). The Olympic Committee bought off all those sites. I heard of one car repair business who struggling to sell it for 200k and he was offered £1million by the Olympics!!. Though I suspected some owners who were forced to relocate just took the cash!.

Personally, I would have liked them to put in a Science Park in Stratford, or somethink along the lines of Centre Parks. At least these places will provide JOBS CONTINUOUSLY rather then a 2 week jolly. The Olympics are just for the politicians to basque in glory......

So why spend billions on Olympics? When the govt can be bothered to spend the money to improve the london underground.... Londoners suffer daily in a sweaty over crowded trains.

Coey: Don't make any decision about any perceived uplift from the Olympics. Also, I don't recommend you renting out to people on Housing Benefit, if it a nice house, I doubt you would get it back in the original state. Also, the long term leases to Council for 3-5 years are given out to people with problems e.g. alcolism, drugs, mental problems.....

[jeffrey]

1. HM Government itself has no money. What it spends is taxpayers' money, once compulsorily extracted from the rightful owners.
2. Not every big event is a waste. The Great Exhibition 1851 and its centenary Festival of Britain 1951 both succeeded.
3. Not everyone lives in London, anyway, although I appreciate that this news may come as a shock to metropolitan folk.