One for the buy-to-let empirists!
- Thread starter oulton
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Soldato
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Depends if you see it as a business, or the fact that he's only paying 15quid a month on a property that is virtually paying for itself... growing as an asset and with capital in the property growing also. Unless it's a interest only, but you know.
Nice business plan
Also did the mortgage start as a BTL or did it get consent to Let afterwards
You can get round that by getting an estate agent to put in writing what the rental will be.
What you actually charge can be waaay less
Soldato
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Nice business plan
Lol, not a business plan mate. Just circumstances that happened. The area the house is in can't really command more in rent.
The way i see it, i'm only paying £15pcm towards my mortgage than the full whack. I'm certainly fine with that.
I moved into my [now] wife's house, which she obviously had on her own, so i'm not shelling much anything extra really, certainly not to the amount that my mortgage is, so as long as someone rents my house out, it's a winner for us.
I'm trying to reduce the term quite significantly too, which will obviously bump up my monthly payments, but fixing it at certain rate that i know i can afford even if the house was empty means we get the house paid off much sooner, using someone elses money. I'm happy with that!
Soldato
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It was a residential with Nationwide. When i decided to let it out i informed them. They gave me 'consent to let' up until Dec 2012.
Tenants moved in in June 2012 paying £495
My mortgage was £453.
Then in Dec they automatically moved me onto a BTL with a 1.5% hike in interest rate. That was about it really, no more complicated than that. Jan 2013 saw me paying approx. £65pcm more than i had previously.
Going to a different lender would have been a lot of hassle due to the hoops oyu have to jump through, so i've remained with Nationwide on a variable rate with no tie-ins, so i'm free to change lender whenever i like.
Soldato
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I'm looking to do something similar. The problem is if you set up as a ltd company mortgages are much harder to come by.
This is my point. You shouldn't go into BTL with the main aim being to make surplus monthly income.
For me BTL is about getting 10/15/20+ years of appreciation on a property that cost you nothing to own for those years. Any surplus income is a bonus, rather than the main aim of the project.
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Yes I'm thinking about this, especially as we wouldn't have a long track record of profits to show the mortgage company. What we might do is buy the first couple of properties in our own names under joint mortgages and transfer them as company assets, and eventually build up company credibility.
Soldato
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What site is that? Maybe it is just because you selected an offset, but when we were looking to re-mortgage the mrs flat on to a BTL mortgage in both our names, an LTV of 30~20% was all that was coming up.
House prices in Stoke are down 10% on 2008 so appreciation will definately factor, especially long term. But given a 450 pcm rental scenario surplus income will be generated after costs. Thats a big bonus. We will also save salaries and could probably stump up 5/7 grand every three-five months for new deposits even if there was no surpluss. Surpluss is a good thing though and would be the exponential in helping us accelerate our aquisitions.
Your So Money Supermarket
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Soldato
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Urr sorry to say Oulton but that link you have shows that the best LTV on a buy to let mortgage in that list is 70% lol. So you just shot yourself in the foot. Your talking absolute rubbish about a 5% deposit on a buy to let mortgage.
Also go post up the same thing on MoneySavingExpert as they will give you good advice, which is probably not to do it. As if your abroad and as you said employing a Letting agent you are still liable for everything and also Letting Agents could be anybody as they are not regulated so that is another minefield.
Also go post up the same thing on MoneySavingExpert as they will give you good advice, which is probably not to do it. As if your abroad and as you said employing a Letting agent you are still liable for everything and also Letting Agents could be anybody as they are not regulated so that is another minefield.
All rental income is treated as income along with your salary. You can claim deductions on interest payments only on the mortgage - any capital repayment does not count as a tax deduction. My BTL is on an interest-only mortgage for this reason. You can also claim all of your expenses associated with the rental such as maintenance, management fees etc.
Soldato
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Dude thats the homepage, get a quote you muppet!
And your the muppet as if those are the best buys then yours isn't going to be near them probably. And it is pointless me getting a quote as I know nothing about your details and it differs for every person, so stop being an idiot and listen to people that have been through the process and are trying to stop you making a huge mistake.
Soldato
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Unfortunately, you can't just transfer a mortgage over to a business very easily. Even if you could the transfer of property would be considered a sale/disposal of assets and would be liable for stamp duty and capital gains.
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Permabanned
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Throw everything you've got at it, you can't lose. Houses always go up in price, right?
Footballers often own 31 properties so they get 2k odd per day every month in rental. More often than not they are all owned outright though which is where BTL really works.
Go to www.housepricecrash.co.uk for some advice.
Footballers often own 31 properties so they get 2k odd per day every month in rental. More often than not they are all owned outright though which is where BTL really works.
Go to www.housepricecrash.co.uk for some advice.
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Soldato
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I've also been looking at this recently and doing a bit of research, not for building up a portfolio however as per OP , but to fully own a place in 15 years time.
Unfortunately the area I grew up in and know well (SW London) is very expensive - a decent 2 bed flat costs around £400K upwards and rents for about £2k a month.
Started looking at other areas which are commutable to London (ie. Bexley) where 1 bed flats go for £150k approx and I'm guessing will be easier to rent out.
But I'd much rather prefer a freehold detached which in that area is around £450K or so, but I think renting it out would be more difficult than a 1 bedroom flat
Unfortunately the area I grew up in and know well (SW London) is very expensive - a decent 2 bed flat costs around £400K upwards and rents for about £2k a month.
Started looking at other areas which are commutable to London (ie. Bexley) where 1 bed flats go for £150k approx and I'm guessing will be easier to rent out.
But I'd much rather prefer a freehold detached which in that area is around £450K or so, but I think renting it out would be more difficult than a 1 bedroom flat
Soldato
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Found this also, many of these terraces seem to only rent for approx £300 a month
Soldato
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BAHAHAHAHAHAH