Help! buy to let questions

cookc

We want to rent out our house that we live in now and buy another one to live in that needs doing up. the only added problem is that the one we want to buy is going to auction in a week!!! does anyone know any good buy to let/let to buy mortgage products?

dunstonh

does anyone know any good buy to let/let to buy mortgage products?

All whole of market mortgage advisers do and given the short timescale, you should see one ASAP.

The mortgage forum has some mortgage advisers contributing to it who could help you with your mortgage question. (or maybe a mod could move this to mortgages if they spot it).

taketwo

I kept my house when I got married, and we bought and moved to a new house, I arranged both mortgages through the Nationwide (good reputation anyway) and because I hadn't 'bought to let', just 'happened to have' I got the domestic rate on both mortgages, and only one arrangement fee!
The examples they gave were of inheriting grannies house and letting it out, or buying a house for your child to use at university and keeping it when they finished.
It took the advisor quite a while to think about it and come up with this as a suggestion, but I was really pleased she did!

Give them a try.

cookc

nice one will give it a go!!

cookc

there is another problem, though - because this is at auction, if there is a lot found to be wrong with it when the bank's people go round then i guess they could withhold money and force us to take a briding loan. grrr

clutton_2

buy the legal pack from the auction house on line NOW
personally take it to your solicitor in the morning
get a surveyor in to do a private surveyor Friday
decide EXACTLY how much you want to pay for the house
Find a builder who will visit property and Cost the building refurbishment
Find the deposit
Get a mortgage offer in principle

Can you do all this in one week ?

once the hammer drops you have exchanged contracts, you pay your deposit and if you do not complete in 28 days you lose your deposit AND the vendor may sue you for costs !!!

one week, even for a professional, with a great team in place, is pushing it to the limits of feasibility

best of luck

A_Nice_Englishman

How much do you know about the property rental business?

Starting a property rental business is like starting up any other business. You need a business plan.

Do void periods, bad debts, repairs, redecoration, legal fees,insurance, agents fees, costs of evicting bad tenants, rises in interest rates to, say, 8% and possible falls in property values figure in your business plan?

Are you familiar with the 50 Acts of Parliament and 70 sets of regulations which may apply? Did you know you can be held responsible for the anti-social behaviour of your tenants?


Then you need to look at the taxation side. Any profit you make will be taxed at your highest rate of income tax and if you make a profit when you sell you will have to pay Capital Gains Tax. though there may be reliefs especially as you have lived in the property.

cookc

sincere thanks!