Can I let my home after i’ve bought it?
We get this question quite often and we do understand. If you’re an international and you’re looking to buy, who knows what the future will bring. You might find a new job in a different country, move in with a future partner or simply want to move back to your home country. If you do then letting your property could be a great idea. Here’s however what you need to know. When you buy a property in the Netherlands it’s very likely that you will do this with a mortgage used for a residential property. This means you’re using a mortgage to buy a home that you want to live in yourself. In case you do and you would like to rent out your home after a few years you would officially need approval from your mortgage provider. There’s two things you can do.
If letting your property is a temporary solution you can ask your mortgage provider approval to rent out your home. Some mortgage lenders approve this if it’s for 1 or 2 years and you can prove that you will move back into the home yourself. One of the things that they will demand is that you use a specific rental contract that does not give the tenant the rights to stay in the property for an indefinite period. Please know that tenants by law are very well protected in the Netherlands so that you make sure that you’re using the right type of contract and give notice in time as well.
If you’re planning on letting your home for long term you would need to change your mortgage from a residential one to a buy-to-let mortgage. In order to obtain a buy-to-let mortgage your bank will require the loan to value to be around 70%. This could mean you would have to make a deposit before doing so. If your property has gained in value since you bought your home, the loan to value could already be 70%. Please know that the value of your property will be calculated differently if it’s seen as a property that will be rented out. You can deduct approximately 10% of the actual value as a residential property to calculate the new valuation of a property in rented state. Why is this the case? Because properties with a tenant in them are more difficult to sell and because tenanted properties are often maintained differently to properties with the owner living in it.
Some banks might have different criteria that apply to you receiving a buy-to-let mortgage. Therefore double check with your bank or with your broker what is necessary in order to do so.
Once you’ve received approval from your bank or managed to change your mortgage type, you’re good to rent out your home.
Good luck and don’t hesitate to reach out if you have any questions.