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Newbie Help!!
L13-Pool
Posts: 2 Newbie
Hello all, i am 18 years old currently living with my parents rent free. I earn approximately £700 a month. I have seen a free hold shop in town for sale with 2 bedroom flat above it for £175,000. Looks like a bargain!! i am interested in a BTL mortgage, i want to rent out the shop and flat. PLease answer some questions.
Seeing as im 18, how much would i be able to get a mortgage for?
how much more would i have to pay back?
how much do you think i can rent out the flat for? and how much for the shop per month?
any advice would be much appreciated!! thanks
Seeing as im 18, how much would i be able to get a mortgage for?
how much more would i have to pay back?
how much do you think i can rent out the flat for? and how much for the shop per month?
any advice would be much appreciated!! thanks
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Comments
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BTL mortgages require a large deposit, and rental income of 125% of the interest only payments. How much you can rent the place out depends on a lot of different things - location, size, the market where you are...0
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L13-Pool, I'm assuming that you're not joking! You could NOT get a mortgage for anywhere near that amount on your salary. Go and see a mortgage broker or a bank and see what they say.
Sorry to be downbeat but you simply don't earn enough. I earn 3x that per month AFTER TAX and am not buying, as I think that property is way overvalued at present. Just my opinion.
Do your own research, as always.Get to 119lbs! 1/2/09: 135.6lbs 1/5/11: 145.8lbs 30/3/13 150lbs 22/2/14 137lbs 2/6/14 128lbs 29/8/14 124lbs 2/6/17 126lbs
Save £180,000 by 31 Dec 2020! 2011: £54,342 * 2012: £62,200 * 2013: £74,127 * 2014: £84,839 * 2015: £95,207 * 2016: £109,122 * 2017: £121,733 * 2018: £136,565 * 2019: £161,957 * 2020: £197,685
eBay sales - £4,559.89 Cashback - £2,309.730 -
buying a commercial mortgage is not the same as a residential mortgage. you need to have a substantial deposit (a minimum of 15%) and be able to provide rental figures (ask your local letting agents). Buying property above certain types of shop (take=a=ways) can be very expensive as lenders dont like them much.0
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I assume you're trolling. No bank will give you a 20x annual income mortgage, not even in these crazy times.poppy100
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1st April's come round early this year!0
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I'd be impressed if you could get a mortgage of more than about 40000, but not on a commercial BTL.0
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I thought BTL went on rental income, not personal income?0
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bTL is only for residential - not commercial premises
Even if the shop & flat is only 175, and assuming the OP could afford it- Id expect theres a fairly hefty rent on that as well, seldom do you ever see freehold commercial premises:beer: Well aint funny how its the little things in life that mean the most? Not where you live, the car you drive or the price tag on your clothes.
Theres no dollar sign on piece of mind
This Ive come to know...
So if you agree have a drink with me, raise your glasses for a toast :beer:0 -
Oh right I didn't know that, thanks Lynz!
The OP said that it is a freehold shop, though I suppose that is irrelevant now.0
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