yet another buy to let mortgage needed!

de1amo

A few months ago i asked for any recommendations for a decent buy to let mortgage and someone offered up the İpswich Bs.-i liked the look of the İpswich but an IFA in the uk said they only deal through local agents to ipswich and might not lend in my part of the country.
İ am not in the uk until the weekend which is why i havent proceeded with this venture as yet but i was wondering if people have any info on the above or any other recommendations for providers of BTL's.
---i am looking to raise a total BTL of 95k and i dont want to incur high charges for such an 'average' lend! -the property value is 175k with a rental yield of 750 to 850 pcm. i dont live in the uk now and most of my income is earnt abroad.

holly_hobby

You will need a BTL lender who considers ex-pats.

Income will be taxable via submission of self assessment, or accounts if you employ an accountant

CGT on disposal

I would suggest on your visit back to the UK you seek an appointment with a whole of market adviser - you may be eligible for an off shore mortgage - which is why you need the services of a specialist broker.

Have a google for "ex pat mortgages" a whole host of sites & providers will come up - and you can take it from there...

Hope this helps

Holly

de1amo

technically i am just on a prolonged holiday from my permanment residence that i now wish to rent out. i am on the electoral register and have a forwarding address for all mail when the mortgage is complete. i pay uk tax on income that i get from an occupational pension(i am only 48!) this is a step towards becoming expat!!

handytips

There are a number of deals out there that should suit you, however you will have to look really hard to find a product without fees, as far as i can see, and i am whole of market, there are none.
You are going to have to pay a minimum of £995 as a fee and a valuation fee on top. (approx £400) apart from that you should be ok. Any decent broker will be able to help you out. Do you have a residential address in the UK and are you on the voters roll as this will make a huge difference as to whether or not you will be able to have the product.

holly_hobby

de1amo wrote: »

technically i am just on a prolonged holiday from my permanment residence that i now wish to rent out.

Right .. so you don't work abroad (?), and you already own the property ...

Do they know you are currently out of the country and the house is unoccupied ?

Generally speaking you are looking for "consent to let" from your lender.

The lender may or may not agree, they may also add a loading to your mge intrerest rate being charged/remove you from any residential mge product you are on.

de1amo wrote: »

i am on the electoral register and have a forwarding address for all mail when the mortgage is complete..

If your property is currently unoccupied under your "prolonged holiday", for more than 30 consecutive days in any given period, your buildings ins may be invalidated, which in turn will put you in breach of your mge conditions (i.e to hold valid bldgs insurance).

de1amo wrote: »

I pay uk tax on income that i get from an occupational pension(i am only 48!)

As stated you will need to declare rental (net of deductions) income for tax purposes. This can be done via self assessment - id you do not currently utilise this service, you shall have to register for it.

On sale of the propety cgt will be due on any gain realised, and shall be calculated over the period the property was not your main residence (as a previous owner occupier under current cgt property law, the last 3 yrs of ownership are not included under the any cgt calculation).


So, first things first ... speak to your current lender and then take it from there, or come back for more assistance/guidance

Hope this helps

Holly

de1amo

my current lender doesnt do buy to let mortgages and i want to raise another 40k by doing this deal to buy another home abroad so BTL seems the only option--i dont think i will even let it out and just let my uk income pay the mortgage

.--my brother keeps my home nice and looked after so it really isnt vacant for prolonged periods. the insurance is a block policy and i havent been warned about any infringement by my not being there.


what are the current rates like on buy to lets--the ipswich is showing 5,25 fixed with fees of around 1350

holly_hobby

de1amo wrote: »

my current lender doesnt do buy to let mortgages and i want to raise another 40k by doing this deal to buy another home abroad so BTL seems the only option--i dont think i will even let it out and just let my uk income pay the mortgage

So you want to raise 40k to pch abroad on a remortgage - but neither intend to live in this property as your main residence, nor rent it out.

In that case, a BTL mortgage is not appropriate for you - as you do not intend to let the property on completion.

SO, on the face of things you need a residential mortgage, whereby your taxable income shall need to be sufficient to service the entire new loan.

de1amo wrote: »

.--my brother keeps my home nice and looked after so it really isnt vacant for prolonged periods. the insurance is a block policy and i havent been warned about any infringement by my not being there.

Does your brother live there? if not - its unoccupied.

Standard residential building insurance is invalidated for prolonged periods of unoccupancy - its a standard term accross the board with all providers - and is primarily to do with un-addressed damage from svcs i.e burst pipes and such like but is also in respect of invasion. (i.e squatters).

Your mortage contract will also be breach for the same reason, it was taken with the propery being your main residence and the requirement of valid building ins.



So, a BTL mortgage is unsuitable - therefore what you want is a further advance (for 40k) with your current provider, or a straight residential re-mortgage raising the extra 40k to pch the 2nd property.

A straight residential mortgage is reqd - as you do not intend to rent out your current home on completion - however this is compounded by the fact that you do not intend to live in the property either - and we go back to the earlier point I made regarding prolonged period of un-occupancy

Not withstanding this, as I say your taxable income (and status check) will need to satisfy the lenders criteria.

As the property abroad, is to be your new main residence, cgt will be due on the existing property on its future sale, subject to allowances as discussed in my previous post.

In my opinion, not renting the property out at completion, may not have simplified things, but rather the opposite....

Sure others will be along if there is any solution ... other than that given

Hope this helps

Holly

de1amo

i really didnt ask for a lesson in ethics. i have 3 homes and i cant dwell in all of them and dont feel i need to explain to jobworth's. its a financial question to those people that might have expericience of BTL mortgages. my income level is enough to support it all but just need advice on uk BTLs

holly_hobby

Every post you give further information you haven't divulged in the preceeding ones - god knows what else you've left out.

By the way, I haven't give you a lesson in ethics - just given you the facts on what you are doing and what you want to.

If you do not intend to let the property you want a mge on, it is not a buy to let - simple as.

Residential property (not holiday let) left unoccupied for more than 30 days - standard bldg ins will be invalidated (putting you in breach of your mge terms) .. simple as.

The fact you are upset because I haven't told you what you want to hear is a different matter - but un-thankful and rude replies really don't change the facts do they - rather they will act to disuade anyone else from helping you further.

By the way .. to answer your rather rude statement & question .... I am neither a jobsworth nor inexperienced - in fact I'm really rather the opposite ...

Obviously you don't want to accept any information that doesn't suit your plans - so I'll leave you to your own devices

Its been a real pleasure !!

Holly

de1amo

just imagine a BTL that just didnt rent out-as its a business loan it no longer 'fits' the typical mortgage conditions--more like a business loan which has conditions more akin to holiday let so no longer requiring 365 days a year occupancy. i do wonder why i ever ask questions here

holly_hobby

de1amo wrote: »

just imagine a BTL that just didnt rent out-as its a business loan it no longer 'fits' the typical mortgage conditions--more like a business loan which has conditions more akin to holiday let so no longer requiring 365 days a year occupancy.

In a nutshell ... you want a loan on a property that will be permanently unoccupied (at least whilst you continue permanently living abroad). And now think that a holiday let mortgage may be the answer to all your problems, although the property is neither going to be a holiday let, or indeed let at all !!!

Good luck ....

de1amo wrote: »

i do wonder why i ever ask questions here

I would wager because you like to get expert & qualified advice for free ....

Holly