Let to buy? How does it work?

Caz3121

theslickking wrote: »

Not disagreeing with you, but a friend started out with £70K equity and managed to get himself 3 properties out that using the rent from one etc to buy another. He earned £25K a year.

:T

and you used to be able to get 125% mortgages...times have changed

real1314

theslickking wrote: »

Not disagreeing with you, but a friend started out with £70K equity and managed to get himself 3 properties out that using the rent from one etc to buy another. He earned £25K a year.

:T

Which still is do-able to some degree, with BTL, as the rent supprts each portion of the mortgage.

The OP however seems to think a net rent profit of £400 pcm (out of £800 rent pre mortgage) over his £77k mortgage on one property, would help him buy a £300k property. But doing it simply and logically, if he thinks his £77k is covered by £400 of the rent, you might hope (at best) that the other £400 would cover £77k of the new mortgage.

Still leaving £223k of property to pay for on a £33k salary.

Me, I wonder how someone can earn £33k and still not be able to add things up properly.

theslickking

real1314 wrote: »

Which still is do-able to some degree, with BTL, as the rent supprts each portion of the mortgage.

The OP however seems to think a net rent profit of £400 pcm (out of £800 rent pre mortgage) over his £77k mortgage on one property, would help him buy a £300k property. But doing it simply and logically, if he thinks his £77k is covered by £400 of the rent, you might hope (at best) that the other £400 would cover £77k of the new mortgage.

Still leaving £223k of property to pay for on a £33k salary.

Me, I wonder how someone can earn £33k and still not be able to add things up properly.

The thing is, I asked HOW does let to buy work.

Me? I wonder how someone who does not know all there is to know can ask ( assume) someone earning £33k can not add up, I can add up, son,

'Someone' mentioned to me that they can discount the fact you have a 1st mortgage and they can let you use the PROFIT from the 1st flat (£100K) plus the rental proft added (£400.00) to your ( new)mortgage of say £1k less the £400.00 = £600 per month mortgage payment. How does it work?I do not know, but I must remember to come back here when I want some smart ( not really) !!!! talking about not being able to count and earning £33k.

Well done! :T

Thrugelmir

theslickking wrote: »

Not disagreeing with you, but a friend started out with £70K equity and managed to get himself 3 properties out that using the rent from one etc to buy another. He earned £25K a year.

:T

He would have been constantly remortgaging the equity to buy another property. The rent alone won't have been sufficent to fund outright purchase.

theslickking

Thrugelmir wrote: »

He would have been constantly remortgaging the equity to buy another property. The rent alone won't have been sufficent to fund outright purchase.

Thanks for the info. I think that is the route I should go down.

:T

Thrugelmir

theslickking wrote: »

Thanks for the info. I think that is the route I should go down.

:T

Only worked in the boom days of property. No longer such a viable option.