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Another Buy-to-let purhcase – but how? Help needed please
vinnyd
Posts: 2 Newbie
Any help or comments on this would be appreciated more than water in the desert.
I set up a private partnership with the three other members of my family two years ago and purchased a property for £115K (needed some work doing) that was split into four flats. The rental income is now £1315pcm, and the building is now worth £190k. Our mortgage repayments for this building are £684 per month.
I have found another property nearby that is on the market for 229K, with planning permission for 1 self-contained flat with WC and kitchen, and five bedsits who will use two shared bathrooms.
Based on market condions, I am estimating that this second building will generate around £1,400pcm.
If we are able to top this up from the proceeds of the first building, wit, say 400 per month, this would give £1,800 amonth to cover mortgage costs, leaving around 200 for maintenance.
Our bank is oushing us towrds another commercial mortgage, but this would be too expensive. I'm also told that a private partnership cannot get a buy-to-let mortgage, and that it would need to go in all four family names respectively. This is not an option, as it will affect any future credit decisions.:mad:
If anyone has any ideas of a good way forward, I shall be forever endebted.
Thanks in advance.
Ben
I set up a private partnership with the three other members of my family two years ago and purchased a property for £115K (needed some work doing) that was split into four flats. The rental income is now £1315pcm, and the building is now worth £190k. Our mortgage repayments for this building are £684 per month.
I have found another property nearby that is on the market for 229K, with planning permission for 1 self-contained flat with WC and kitchen, and five bedsits who will use two shared bathrooms.
Based on market condions, I am estimating that this second building will generate around £1,400pcm.
If we are able to top this up from the proceeds of the first building, wit, say 400 per month, this would give £1,800 amonth to cover mortgage costs, leaving around 200 for maintenance.
Our bank is oushing us towrds another commercial mortgage, but this would be too expensive. I'm also told that a private partnership cannot get a buy-to-let mortgage, and that it would need to go in all four family names respectively. This is not an option, as it will affect any future credit decisions.:mad:
If anyone has any ideas of a good way forward, I shall be forever endebted.
Thanks in advance.
Ben
0
Comments
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What do you mean it will affect future credit?
If you can get an independent BTL mortgage (i.e. rental more than covers the mortgage) then this should be considered separate when you come to seek credit for residential mortgages. I assume that's what you mean.
Sounds like BTL mortgage for 4 would be a good option.Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery0 -
I would have thought that if the bank had a mortgage on both properties they would lend at their normal rate for a well secured loan at about base plus 1%.
There will be some waste costs in this in arrangement and survey fees etc but it may be worth looking at particularly if you intend to repeat the process in the future because the bank woukd have its security in place.0
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