buy-to-let mortgage advice

Wh05apk

If the property has a usuable bathroom and kitchen it may still qualify for the light refurb product, criteria:

"Classified as a Buy to Let rental property which will benefit from minor improvements to be carried out within 3 months of completion and prior to letting, subject to selecting a product from the light refurbishment range.

• Initial Advance: Up to 70% of the property value or purchase price (whichever is lower) will be advanced. Once works are completed 70% of the after works value to a maximum of £25,000 can be released subject to successful re-inspection.
• Retention: The amount will be held, to a maximum of £25,000 which can be released on completion of the works, confirmed by a re-inspection of the property, payable by the customer.
• Minimum Retention: £2,000
• Maximum Retention: £25,000
• Valuation: Will be completed in the first instance and value will be assessed on current and after works basis.
• Re-inspection: Once the work has been completed as required, a re-inspection costing £100 (payable by the customer), will be needed before retention monies can be released.
• Rental cover will be based on rental assessment after works.
• First time landlords purchasing accepted up to 65% LTV
• TMW reserves the right to withold the retention amount if the works have not been carried out within 3 months."

Obviously you would do best running this past them first, to see if it is "light" enough to qualify.

GMS

Wh05apk wrote: »

If the property has a usuable bathroom and kitchen it may still qualify for the light refurb product, criteria:


"Classified as a Buy to Let rental property which will benefit from minor improvements to be carried out within 3 months of completion and prior to letting, subject to selecting a product from the light refurbishment range.

• Initial Advance: Up to 70% of the property value or purchase price (whichever is lower) will be advanced. Once works are completed 70% of the after works value to a maximum of £25,000 can be released subject to successful re-inspection.
• Retention: The amount will be held, to a maximum of £25,000 which can be released on completion of the works, confirmed by a re-inspection of the property, payable by the customer.
• Minimum Retention: £2,000
• Maximum Retention: £25,000
• Valuation: Will be completed in the first instance and value will be assessed on current and after works basis.
• Re-inspection: Once the work has been completed as required, a re-inspection costing £100 (payable by the customer), will be needed before retention monies can be released.
• Rental cover will be based on rental assessment after works.
• First time landlords purchasing accepted up to 65% LTV
• TMW reserves the right to withold the retention amount if the works have not been carried out within 3 months."

Obviously you would do best running this past them first, to see if it is "light" enough to qualify.

mandyles wrote: »

I am quite sure it was the TMW that valued the property. Does anyone know exactly what means light refurb?

If it was TMW who said uninhabitable then this will not work.

OP who did you apply to for the loan?

Wh05apk

GMS wrote: »

If it was TMW who said uninhabitable then this will not work.

OP who did you apply to for the loan?

Might have been unacceptable under their standard criteria though?

.....................or it may not have even been TMW?

GMS

OP stated thinks it was TMW.

May fit for Light Refurb but valuer would surely have put a retention on rather than say uninhabitable if it would? TMW have made some mad decisions lately so nothing surprises me!

Wh05apk

GMS wrote: »

OP stated thinks it was TMW.

May fit for Light Refurb but valuer would surely have put a retention on rather than say uninhabitable if it would? TMW have made some mad decisions lately so nothing surprises me!

Tell me, just had one declined with another lender, because the valuer thought " it was unsuitable for letting because..................it needed tidying up and some redecoration!"

GMS

Rental demand is going through the roof but a valuer deems unsuitable due to the wallpaper!!

Keeps us on our toes though!!

Thrugelmir

The valuer would have given reasons for the property being uninhabitable. Did you ask them?

mandyles

sorry i got in wrong is was not TMW, it was platform.

mandyles

so sorry got it wrong it was platform that valued the property.

Wh05apk

mandyles wrote: »

so sorry got it wrong it was platform that valued the property.

They are the ones who declined my clients application on the basis that it needed tidying and decorating! They seem to be incredibly picky at the moment.

The TMW light refurb could be worth looking at, but run it past them first, you won't want to pay another valuation fee needlessly.