Rent Assesment Report - BTL

getmore4less

If you live in similar and close by

Rent out your place and buy this to do up and live in for a while.

if that good repeat

ziof3ster

getmore4less wrote: »

If you live in similar and close by

Rent out your place and buy this to do up and live in for a while.

if that good repeat

No possible because my lender (YBS) doenst do BTL, and will consent only in particular circustamces (go abroad for work etc) raising the rate of 2points.

the mortgage is portable, but this BTL I'm interested in doenst match YBS lending criteria.

Thanks
Gio

Thrugelmir

ziof3ster wrote: »

the mortgage is portable, but this BTL I'm interested in doenst match YBS lending criteria.

On what grounds?

ziof3ster

Thrugelmir wrote: »

On what grounds?

Well the mortgage has the portable facility, and YBS confirmed this and explained what to do in case I need to use it. Also, when i was looking for a flat, I found out with them the lending criteria, and they dont like some type of properties (above some storey, balcony entrance etc). So I'm sure they wont like this one.

thanks
Gio

ziof3ster

Update.

Halifax (as RBS and Natwest) confirmed the rent assessment is only based on the valuer opinion.

They are happy for cosmetic upgrade. When I asked the definition of "cosmetic", they dont really know (someone said only repaint/recarpet..because can take a day or few). Well I replied that recarpet or repaint a massive house takes a bit more. And change bathroom/kitchen for someone ready and expert can take few days...so they reminded again to the "valuer opinion".

Grrr...so frustrating!!!

Sent an email to the agency manager, explaining that I like from them a written (and free) rent assessment at the actual conditions, NO REPLY!

Grr...

Anyway, just to scan all the options, what are the "light refurbishment BTL" available at the moment on the market (for a first time landlord)? I know TMW....but is the only one?!?!?
I've found this morning BuildStore, but gives it seems the "finance for a first time developer" have LTV of 50%!!!!!!!! :-) Any more "human" alternative?!?!

Thanks
Gio

kingstreet

As Thruge has pointed out, there seems to have been no allowance made for a retention in the planning.

TMW criteria reads as follows;-

Light Refurbishment

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 required for refurbishment 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

The OP appears to be indicating he will only be eligible for the 65% limit. If there is a retention, does the OP have sufficient funds to make up the retention to allow the purchase of the property and additional funds to pay for the remedial works before the retention is lifted and the residual funds are released?

Let's say this is a £200k purchase with a 65% mortgage of £130k. If there's a retention of £20k, the OP would have to increase his deposit from £70k to £90k to complete the purchase. Then he might have to find the £20k to pay for the works before getting that sum back from the lender following the necessary re-inspection.