First time buyer for a buy to let property

chris2332

Hi all,

This is my first post and I wanted to know what is the process for a first time buyer for a buy to let property.

I would like to get an advisor (free of charge if possible) to discuss all the possibilities for a mortgage and the whole process and see what are my options.

Do you have any broker or advisor to recommend? I am based in North London but could meet up with anyone in Central London.

Thanks,
Chris.

Annisele

Before you start...do you have 25% of the house price as a deposit, plus further savings to cover costs and void periods?

Do you understand the rights and responsibilities you'd have as a landlord? (Mortgage brokers probably won't help you with whether it's sensible to buy a particular property, only with the mechanics of doing so). Landlord Zone is a good site for newbie landlords.

chris2332

Thank you very much for your reply Annisele.

To be honest with you I haven't thought of it that much. It seems quite nice though to buy something to let for extra income.

Thanks for the website.

As far as for the deposit and the rest, yes I do have the money!

I just wanted someone to do the search for me in terms of mortgages and get the best deal and explain to me how everything works...

lynzpower

Id wait and see what is happening to capital gains if i were you

chris2332

Can you please explain that a bit?

lynzpower

Have a look on bbc or other recent news, the % taxed on capital gains is rumoured to go up to 40%.

Pincher

A FTB with a CGT problem? 40% of zero is still zero.

If you are sitting on £100k of capital gains, sell, sell, sell,
while CGT is 18%.

Thrugelmir

chris2332 wrote: »

Thank you very much for your reply Annisele.

To be honest with you I haven't thought of it that much. It seems quite nice though to buy something to let for extra income.

Thanks for the website.

As far as for the deposit and the rest, yes I do have the money!

I just wanted someone to do the search for me in terms of mortgages and get the best deal and explain to me how everything works...

So you want free advice on how to set up a successful business, all with minimal effort. :cool:

My advice would be don't bother. As you will get eaten alive by the sharks that inhabit the business world. Stick to safer investments.

Come back when you've researched the topic some more.... Then'll you will get real advice.

Pincher

Spoil sport, how are the developers supposed to offload the two bedroom flats built on stilts in the middle of a flood zone now?

Annisele

chris2332 wrote: »

To be honest with you I haven't thought of it that much. It seems quite nice though to buy something to let for extra income.

Professional tenants will eat you alive...

Worst case, you let your property to an apparently charming couple who don't pay any rent, trash the place doing thousands of pounds of damage you never recover, and you can't evict for months because it takes that long to get a court order. (Even worse case, you do the newbie landlord mistake of illegally evicting them and you end up paying thousands of pounds in damages to them, with a potential jail sentence).

Buy to let is business. There's the financing issue - which a mortgage broker would be able to help you with - but there's also the issue of running the actual business.

The experienced landlords on here will tell you that there are reams of regulations that you have to comply with, and very steep penalties if you fail to do so. If you're serious about this, educate yourself about becoming a landlord before you go wasting some poor mortgage broker's time.

Buy to let isn't the only thing you can do to get income. You can also invest in shares, bonds, commercial property - or just leave your money earning interest in the bank.

I know I sound harsh, but I reckon it's better that I tell you I think you're naive than you find that out when your tenants screw you.

FraudBuster

OP. Ignore the cynics.

Wanna get rich quick?

I can do BMV deals with NMD.

:beer: