trying to get my head around BTL idea

de1amo

do the lenders ever go into the details of whether the rent is actually received or do they just take it as read' and just collect the mortgage payments?

when they do the credit checks can they be done on the property in question because it is my only uk address--i am not officially expat and pay all my taxes as demanded in the uk--i know its a minefield going expat and i would try to resist it!

Senior_Paper_Monitor

Lenders don't care whether rent is received - as long as you pay the mortgage.

Issues over insurance with property unoccupied over long period of time though !

Your residence there is not a problem at point of application - may be complicated once it is rented out (you may need to move to your parents !!) but still solveable in my view

de1amo

and if it is not rented out!!? i presume i dont have to place it with agents as a condition of BTL and as no rent will be paid the taxman will accept a nil return(on my self assessment return)

it is insured as a flat in a block and the insurance have no problem with it being empty(we run the freehold as a self management) and o one has advised me there is a problem with my absence--the contents are of little value to me.

Senior_Paper_Monitor

You assume correctly.

Only issue I can spot in the future is CGT liability (will not count as primary residence).

de1amo

i will face that if the property ever shows profit in value -it is back to the value i bought it for in 2003!

İ tried a BTL quote by inputting the rental and income in the uk with lloyds bank and came up with a disappointing total of 42k which is less than i currently have on mortgage!-i have emailed my uk financial advisor to see if he has access.

İ saw a company trading in Spain called Ubiquious mortgages.com that delt with foreign owners looking to raise money for second properties--it seemed to be dealing with Japanese based mortgages--sounds explosive! but they have low interest rates!

Thrugelmir

de1amo wrote: »

it is insured as a flat in a block and the insurance have no problem with it being empty(we run the freehold as a self management) and o one has advised me there is a problem with my absence--the contents are of little value to me.

Depending on your length of absence may be worth checking. As utilities should be be turned off to comply with policy conditions. Also basic household insurance doesn't cover property being vacant beyond a given amount of time (i.e. 6 weeks). If there is no regular inspection.

Senior_Paper_Monitor

https://forums.moneysavingexpert.com/discussion/2525833

Up to you !!!!!

Mr T's comment is absolutely valid (as usual)

de1amo

obviously not a good place to raise money!-they are hinting at south american funding!(i have never known cheap money coming out of s a)
How would i access a mortgage from a solid lender out of the far east? i know japan has rock solid low rates and the only concern is Yen fluctuation which with the sums involved is of little concern!--are there reputable brokers in this market?

Thrugelmir

Why do wish to own a property in the UK?

If its empty then its not making you any return. Better to realise the equity in the property, take your pension and invest elsewhere.

Senior_Paper_Monitor

In all honesty, I:

1) have no idea

2) think you are making this far more complicated (and therefore risky) than it need be. Plenty of nice, easy, safe, workable solutions available.



...... and I wouldn't necessarily diagree with Mr T's further comment.