Buy-to-let /airbnb in the midlands or elswhere in the UK

[Luv2chat2U]

Hi all,

I am considering purchasing a property in another City but have been procrastinating for a while on the pros and cons but mostly because managing a property at a distance is not really an option I wanted to explore. However, this is the more affordable route and I want to be in a position where I am not solely dependent on the tenants paying the rent in the event that unforeseen circumstances occur i.e. loss of jobs etc. Currently, if there are any issues like this, I would be able to cover the mortgage (so long as i don't lose my job) which is something i would not be able to do if I purchased closer to home.

This will be my first property and while I realise that lenders don't like to loan on buy to let to first time buyers, I will be putting down a very decent deposit so hoping that they will consider and if not I may have to look for something cheaper and buy in cash.

Is there anyone living in London who has purchased a buy to let or running an airbnb in another city that can offer some useful advise on the following:

• Managing agents or self manage ( latter would be difficult due to distance as well as working full time)

• Recommended Cities (I've been looking at Birmingham for a while as its closer to London if i need to check on the property etc).

• House with street parking close to city center or house with drive further away from the city center (around 3-5 miles)

• Idea behind airbnb is that there would be no AST and thus having a bit more control over my property without the cost of applying to court for possession etc. (If i am fortunate to have good tenants with AST I would be in no rush to carry out any evictions)

• Void properties/turn over when running airbnb

• I have considered buying a flat in or near to the city center as i thought this might be a more attractive opt. for airbnb but I've been put off by service charges, ground rent and leasehold.

I have friends who have Airbnb properties in Liverpool. I believe it generally works well, but they have family up there who help to clean and manage. Always popular when the football is on apparently. They've had to go up several times to clean up after guests have had parties and this can have a knock on effect on reviews for any guests staying after such a party. I believe there are companies who will do the management, admin and sort out cleaning, but they will obviously take a cut.

@DottySpottyZigzag thank you for your reply. Interestingly football didn't cross my mind but that's very useful to know. I've always been confused with Liverpool because I've heard that jobs are difficult to come by but at the same time have been told that Liverpool has good rental yields. Do you know whether your friends have purchased flats or houses there?

Finding lenders who will do BTL for an FTB is incredibly hard (if not impossible in the current market) so first and foremost I’d be finding out if that is in any way realistic.
The fees and interest will be much higher than on a resi mortgage as well.
You’ll need to be able to prove the property is profitable, which could be hard with an air bnb, most lenders will expect the income to cover 150% of the mortgage payments.

Natwest gave a BTL mortgage last year even though I didn't at the time currently own any other property. I'm not a first time buyer but I hadn't owned a house in 20 years at that point so it might be worth going through a broker if you do go ahead with your idea - although I think Airbnb will give you just as much hassle as AST tenants but just in a different form.

Airbnb won't be less hassle than AST IMO and buying a property to use as a holiday let is ethically questionable in these times of housing shortage.

You need a specialist holiday let mortgage for Air BnB ( by which you actually mean furnished holiday let)

FHL has better tax breaks and you can claim all your mortgage interest against tax. Principality has good rates or use a broker.

I have managed a property 250 Mike's away on Air BnB. You just need to find a good local housekeeper and maintenance person. The Air BnB app makes managing bookings really easy.

buying a property to use as a holiday let is ethically questionable in these times of housing shortage

Agreed. And I pity the poor neighbours who have to put up with guests holding parties.

@DottySpottyZigzag @lastqueenofscotland @Bibbleybetto @Movinghouseatlast Thank you for your advise. Very useful and noted.