Would like information on buy to let please

cceg

We know of a house that is being sold to fund nursing home fees of a neighbour.
I have taken great care of this neighour and helped to get her into a home and looked after her for 2 years.
There is no family, so i have got a solicitor involved and she will become court of protection of her shortly.

Her house, will sadly have to be sold to pay for nursing home fees and I am looking at buying to let.
Unsure of house price yet, as it is yet to be valued but it is very run down, needs new roof, windows, needs central heating, infact would say pretty much needs new everything to make it a home for someone.
My guess is £40,000 plus.

We have 10 years left on our Mortage and would possibly like to buy this house as a 'buy to let' Do it up and let it out.

So, if possible would like some more information about this, would the banks lend us more £££ for work to the house and is would it be something banks would be intrested in these days given the current market?

Unsure if we would be allowed to borrow, i guess we can ask. We dont have debts, pay everything on time... but after all our bills we have a little to play with, but not loads, only have a few thousand in the bank as savings, so not much of deposit. Plus those savings as for us as a family.

Is it worth giving more thought? Or worth dropping like a hot potatoe!?

boyse7en

Without getting into a long-winded discussion about whether it is a good investment or not...

The bank will want a 25% deposit for starters, and the amount you will be able to borrow will be based on the rentable value - i.e the rent per month will need to be 125 or 130% of the interest-only payment for the mortgage.

So before you get too far, how much do you expect the house to sell for, and how much do you think you will be able to get in rental for it?

unite79

Also they will want the property to be letable in current condition. Which from the sound of the work needed maybe an issue.

socrates

cceg wrote: »

We know of a house that is being sold to fund nursing home fees of a neighbour.
I have taken great care of this neighour and helped to get her into a home and looked after her for 2 years.
There is no family, so i have got a solicitor involved and she will become court of protection of her shortly.

Her house, will sadly have to be sold to pay for nursing home fees and I am looking at buying to let.
Unsure of house price yet, as it is yet to be valued but it is very run down, needs new roof, windows, needs central heating, infact would say pretty much needs new everything to make it a home for someone.
My guess is £40,000 plus.

We have 10 years left on our Mortage and would possibly like to buy this house as a 'buy to let' Do it up and let it out.

So, if possible would like some more information about this, would the banks lend us more £££ for work to the house and is would it be something banks would be intrested in these days given the current market?

Unsure if we would be allowed to borrow, i guess we can ask. We dont have debts, pay everything on time... but after all our bills we have a little to play with, but not loads, only have a few thousand in the bank as savings, so not much of deposit. Plus those savings as for us as a family.

Is it worth giving more thought? Or worth dropping like a hot potatoe!?

You can draw down the money from the equity you have in your present home (if its there) - as long as your income can sustain the extra borrowing. This would be the most cost effective way BUT puts your main residence at risk should things go wrong.

When calculating costs (buying, fixing and subsequently renting) try to aim for a yield of as near to 10% as possible to allow for all expenses - maintenance, void periods , insurances etc .

You can still claim all your mortgage interest against your tax return.

It does not have to be in a letable condition in its current condition