Letting your first property...

N79

GBP 200/ yr maintenance is far to low. It may work for a couple of year but allows nothing for big ticket items (exterior paintwork, new carpets, painting throughout, replacing white goods, the roof, guttering etc)

Werdnal

If you are a FTB, then BTL mortgages can be wary - they have no mortgage history to go on to know you are a good payer. They may need to see a business plan to prove you have done your homework and understand the risks, as well as the potential benefits of letting.

Before you go any further, you also need to understand all the legal obligations of becoming a LL. Read this:

http://forums.moneysavingexpert.com/showpost.php?p=41160642&postcount=12

G_M

Skiny wrote: »

Hi,

There isn't any maintenance charge as there are no communal areas. Also no ground rent, nothing to really maintain externally and no lift. There is no central heating, just storage heaters, so I assume maintenance on those is very minimal (maybe some electrical check every few years?). The property doesn't have gas, so no certificate would be needed either. The £200pa was just an estimate to maintain the little things, and have money set aside to redecorate every few years. Should I consider much higher maintenance costs?

So this flat has no roof?! If not, your tenants may complain! If it does have a roof, you may find builders want money to replace tiles that slip/fall off.

EVERY flat has overheads, either charged via an annual maintenance charge or if not then on an as needed basis. But charges there always are.

As suggested above you need a much more comprehensive budget worked out.

See here for tips and further reading.

CarineG

You need to allow for the tenant not paying rent and/or refusing to move out; this could be a shortfall of rent for 3 months of more + solicitors + bailiffs fees.

The flat above mine has just been ruined by the last tenant. It will cost thousands of ££ to put it back in a good condition. The deposit would not cover any damage to the flat.

IMO you need a bigger contingency budget. Good luck!

Skiny

googler wrote: »

Once more;
You're going into business. Do you have a business plan?

No, as I say I'm researching. There is much to learn first.

CarineG wrote: »

You need to allow for the tenant not paying rent and/or refusing to move out; this could be a shortfall of rent for 3 months of more + solicitors + bailiffs fees.

The flat above mine has just been ruined by the last tenant. It will cost thousands of ££ to put it back in a good condition. The deposit would not cover any damage to the flat.

IMO you need a bigger contingency budget. Good luck!

I allowed for 1 month unoccupied on average, with insurance to cover issues with tenants (although I know this can be troublesome).


What is considered the general return people aim for on their initial investment?

theartfullodger

Skiny wrote: »

................


What is considered the general return people aim for on their initial investment?

Sigh!!!! You won't know what your return is/was until a few years time .. when you know what your ACTUAL rent & expenses were and if the property is worth more or less...

Skiny

theartfullodger wrote: »

Sigh!!!! You won't know what your return is/was until a few years time .. when you know what your ACTUAL rent & expenses were and if the property is worth more or less...

Well yeah... obviously.

Which is why I'm asking other people what theirs is/what their target is to give me an idea.