Anyone rent out the house next door?

[PanannyPanoo]

Our neighbours are thinking of moving and we are considering buying the house to rent out. We have a tiny amount left on the mortgage so am thinking of increasing it and buying next door outright with the loan being on the house we live in.
We would be on hand to sort any leaky taps etc and be able to effectively choose our neighbours. Would also mean our children or my disabled brother would be able to live there in the future.
Has anyone done similar?

I have a cottage next door mainly I do short holiday lets in the summer but I've let it out for periods up to 3 months. We've been lucky in that it's been generally fine. Not sure if I'd enjoy being a proper landlord next door. The wrong tenants could make your life really difficult. On the other hand not sure I'd like to live next to the landlord either it'd be hard to escape the feeling of being watched/ judged even if you weren't.

Why have the loan on the property you live in? This makes no sense at all because you won't be able to offset the interest on the loan against your rental income profits (albeit at only 20% not 40% if you are a HRTP).

We've done it before and it's worked out really well - you're on had to fix any issues and can keep an eye on things.

i was about to say the same as Kokusai but pressed post too quick! yes doesn't make financial sense to have the loan on your house, we bought ours back in the day when 100% mortgages were fairly easy to get hold off and had a buy-to-let mortgage on it.

I think it can work really well as long as you maintain proper boundaries with the tenant i.e. no 'popping over' or making comments re garden / curtains not being opened etc.

You can keep an eye on it, handy for maintenance, you 'know' the property quirks if they are of same design and can pick your neighbors!

I rented a house from a landlord who lived next door when I was doing postgraduate study. He made very clear what was expected of me before I signed - no loud parties, keeping up certain standards in terms of tidiness etc and it was fine. I was happy to abide by them and as a single female living alone, felt supported with him next door in case of any problems.

We did that and almost bought one over the road as well. Worked really well as we were on hand and able to make sure everything was ok. On friendly terms with tenants as well. Good luck!

Ah ok. looks like I need to some more research. I thought increasing the mortgage on our existing house would save on arrangement fees and mean we got a better interest rate . I thought it made more financial sense. This is very much a plan in its infancy, and initial thoughts I looked at mortgage/rental/interest rates yesterday and as it seems affordable I thought I would ask people who have experienced it. very glad I have!