Remortgage and portability

ziof3ster

Hi,

I have a silly question to ask so be gentle to answer :-)

Preface

One year ago I've bought a flat in central London, and after few months has been refurbished completely, remodelled etc. The flat was bough for a very good price (same block, few months before another flat identical size/layout has been sold for 40k more). The general price for same type of flat in the same court is much highter I payed (checked on Mouseprice etc).

Plan

I'd like to remortgage this property as a buy to let with another lender and move my original mortgage on another property I'm going to buy, same LTV, same money borrowed etc etc (the mortgage is portable and checked with lender).

The silly questions:

I've read the remortgages for btl are legal/surveyor fee frees because the survey in particular is done "at the desk". I wont assume this is the case of all the lenders, but is reasonable?
If so, I can end up with the remorgate lender doing a "desk" survey and finding a very low capital increase, and my lender that does a proper survey and giving the property a much highter value...so I can end up with much more money available for the deposit.....is it a completely silly scenario????

I've checked already with the 2 lenders and they are not going (at least at the customer centre level) to give me hints on how will be carried the survey.

There are sites online, even chargable, that the lender use for sure to do the "desk" survey?

Thanks For your time reading/answering!

Z

Thrugelmir

Unlikely that any lender will advance monies without arranging inspection and survey of the property first.

As a BTL the emphasis will be on the rental value of the property as much as the properties market value.

ziof3ster

I heard about 3 type of evaluations they do...

1. standard
2. "3rd gear" or from outside
3. "desk" (or online) one

are all fantasies ??

I was hoping in a skew between the remortgage lender's survey and the old lender's one...

opinions4u

Desk based valuations usually take place when your mortgage is staying with the same lender.

Wh05apk

Switching to a BTL will likely be expensive with high fees and higher rates, see if your current lender will allow you consent to let, that way you keep your existing mortgage, and take out a new one, possibly with another lender elsewhere, who will normally ignore your first mortgage assuming it will be self financing.

kingstreet

Wh05apk wrote: »

Switching to a BTL will likely be expensive with high fees and higher rates, see if your current lender will allow you consent to let, that way you keep your existing mortgage, and take out a new one, possibly with another lender elsewhere, who will normally ignore your first mortgage assuming it will be self financing.

I'm interpreting this;-

so I can end up with much more money available for the deposit

as an indication the OP is looking to raise the deposit for the next property from the BTL remortgage. In which case he has little choice but to follow the route he's outlined.

OP - when you apply for the BTL remortgage, the lender will send a surveyor to value the property both for capital and rental values and you'll need the rental income to exceed the mortgage interest (at 6%pa) by around 25%.

For example, a £100k mortgage, based on 6% interest (£500 pm) would need to be supported by rental income of at least £625.

Wh05apk

kingstreet wrote: »

I'm interpreting this;-


as an indication the OP is looking to raise the deposit for the next property from the BTL remortgage. In which case he has little choice but to follow the route he's outlined.

Fair point, I should have read it better!

ziof3ster

Thanks everyone for the answers!

So ..basically is not possible know upfront what type of survey they are doing, and can likely happen that the first lender will use the desktop based survey and the second one a standard evaluation.

I need to be carefull as could be, not lot of capital gain for the first, and a lot (so a bigger mortgage to take) for the second :-) Just the opposite I'd like to happen!! :-))

Another (last, promise) question. If I want find out myself the true value of the property, for the lenders eyes of course, what' is the best way?

There are professional website? Survey firms? Anything serius and professional that can help me plan this double jump?

Thanks Again!
Z

kingstreet

I'd say if you are remortgaging onto a BTL there is absolutely NO CHANCE of a desktop valuation. The lender will want an inspection for the VALUE and the RENTAL INCOME.

ziof3ster

@Kingstreet - ok got it, but I still need an evaluation on the property for the original lender, that could be done via desktop. Having upfront it myself I can be prepared for the worst case scenario and decide if this is a reasonable way to go.

kingstreet

You are applying for a new mortgage on the property you are buying, so there will be an inspection required in both cases. In the case of the new purchase you may also want an extended inspection/survey. So in each case your worry about a desktop valuation harming you is unfounded.

I did try to edit my last post about the new purchase but the forum went down just as I pressed the edit button.