How do I buy to let ??? Help !

navmanwestmids

Hello,

Alittle about myself so that you know why I am asking this question. I am looking to invest in property with the intention to let back on the market.

I know that you cannot do this on residential mortgages (well if you want to be legit)

But I do not qualify for a BTL mortgage as I am 18. As I understand it, part of the criteria to apply for a BTL is that you MUST be 25!

Do I have any other options ?

I recently nearly brought a property on a residential mortgage ( I was going to live there) had the deposit transferred to my solicitor and mortgage offer in place but pulled out just days before exchange as Knotweed was discovered in the garden (lucky escape!).

I had saved up the deposit myself ,and have never received any financial support off anyone to date. I am trying to do the right thing.

Are there any loop holes here ? Could any potential contract be drawn up so say that any tenants are actually lodgers ??.

(It would be a diffcult one to sell get anybody to sign ?? lol )

I am not trying to avoid paying tax on any rental income either.........

geoffky

Messing around with property in this environment will lead to you being bankrupt before your 25...This is not the time to be messing around with property..by all means buy one to live in but getting a few will most likly end in tears..interest rates have nowhere to go but up and as the imf has just warned again uk houses are 30% overpriced . Your call

BitterAndTwisted

The only loophole available to you to have anyone residing in the property to be considered a lodger is to live in the property yourself.

Thrugelmir

navmanwestmids wrote: »

Alittle about myself so that you know why I am asking this question. I am looking to invest in property with the intention to let back on the market.

What's your objective? Income or capital growth.

Have you costed the plan fully, both income and expenditure.

Have you allowed a sinking fund to create a reserve for expensive works at some point in the future?

How will you repay the capital debt? i.e. the money you initially borrow.

There are many factors to consider. Don't believe the myths that housing has been a consistant performing investment over the years. Ultimately BTL is a business like any other.

G_M

Want to buy to let? You need a buy to let mortgage.

Want a place to live? Get a residential mortgage and then get a lodger(s) if you want.

Turnbull2000

Lots of people let property on a normal mortgage. Ensuring you can get landlord insurance and can cover voids and repairs is probably more important.

G_M

Turnbull2000 wrote: »

Lots of people let property on a normal mortgage. Ensuring you can get landlord insurance and can cover voids and repairs is probably more important.

Although the insurance may be an issue..... see post here, as well as the breach of mortgaage terms, and the insecurity you subject your tenants to.

Increasingly tenants are becoming savvy too, and asking to see evidence of CTL.

Beckyy

Are you living in rented yourself at the moment?

To be honest, I think you'd be better off just buying a house for yourself (and possibly getting a lodger), or saving more. BTL is a risky thing to get into at the moment, and with potential agent fees, property maintanance, and tax... all ontop of the cost of the mortgage, and interest, you'd be lucky to break even in some cases.

googler

You need to bear in mind that letting out property, and being a Landlord is a BUSINESS, not a hobby. You could lose money from the business, and there's no guaranteed profit.

Since it's a business, you should have a clear, detailed business plan. You may also want to consider looking for a business mentor, perhaps someone you trust who has done or is doing the same as you want to do.

You may be able to get start-up assistance from either your local council, some of whom operate schemes to assist small businesses, or from your bank, some of whom can be quite flexible to business start-ups.

Werdnal

Turnbull2000 wrote: »

Lots of people let property on a normal mortgage. Ensuring you can get landlord insurance and can cover voids and repairs is probably more important.

Not if you want to be legit. As your first time with a mortgage you do not want to risk breaching the terms by letting, having the property re-possessed and getting a mortgage blacklist at 18!

navmanwestmids

Thrugelmir wrote: »

What's your objective? Income or capital growth.

Have you costed the plan fully, both income and expenditure.

Have you allowed a sinking fund to create a reserve for expensive works at some point in the future?

How will you repay the capital debt? i.e. the money you initially borrow.

There are many factors to consider. Don't believe the myths that housing has been a consistant performing investment over the years. Ultimately BTL is a business like any other.

Agreed. I have fully accounted for voids/repairs etc and could easily afford the repayments (on the mortgage that I'd take out) The first property that I looked at would have returned the mortgage repayment montly twice, because of the size of the deposit that I could put down reducing the loan.

Perhaps it is worth looking for a house that could accommodate two lodgers and technically/legally me ?