Unsuitable Property for a BLT?

mountainofdebt

One of my relatives is a beneficiary under a will where he will get a large %age share of the proceeds of a house sale

However it has crossed his mind that he might 'buy' the other beneficiaries out and use the property as a BTL.

However the house has a conservatory, which the same width as the house - would this prove to be a disadvantage or an advantage when coming to rent the property?

What else is a major drawback, in terms of features, when considering a property for a BTL?

eurows

Major drawbacks....

Rent not covering the depreciation

Doozergirl

Smaller properties are better as there is generally more demand and you should expect to get a better return on your investment. It's generally not thought to be a good time to BTL as house prices are so high compared to rent. It's great when rents are more expensive than the equivalent mortgage, but they're pretty much even with each other, so a BTL with a mortgage will see virtually no return and one without will see maybe the same as a no risk savings account.

The conservatory won't make any differerence to how it rents. The rent that he would ask would reflect the size and condition of the house. Immaculately presented houses rent far quicker than tired ones though, so will see less void periods.

Doozergirl

eurows wrote:

Major drawbacks....

Rent not covering the depreciation

Wondered where you'd gotten to! The board is a less interesting place without you...

Still backing up your arguments with plenty of information for the OP to consider, I see :rolleyes:

sm9ai

IMO as a tennant I would say the conservatry won't effect the rental price, but will make it easier to find tennants. I would certainly prefer a conservatry over not having one, but certainly wouldn't pay any extra for it.

mummytofour

Friends has just left a rental home as they now have bought their own home, the thing they dodnt want to leave was the conservatry!

Ian_W

DoozerG wrote: Wondered where you'd gotten to! The board is a less interesting place without you...

It is half term and the weathers been too cold to even send that little blighter out into! :laugh:

mummytofour wrote: thing they dodnt want to leave was the conservatry!

But they did?

mountainofdebt

I think he will think about buying everyone else out when the time comes - as a major beneficiary the amount of money to do this wouldn't be insurmountable.

Meeten

soiunds like a great plan - the only thing that I can see that you / they will have to be mindful of is the CGT implications ... this will more than prob have to be declared.

Most people can offset some of the profit on the interest element of the mortgage - if there is a v low / no mortgage on the place, then there is more profit to declare.

HTH