Urgent Buy to Let Help Required

dunstonh

dunston - the exchange had to be done within 28 days (this was back in October) but the apartments weren't due for completion until now. I didn't know it was pointless to pursue mortgages so far from completion time.

The point was more aimed at the person that set the mortgage up, not you.

A lot has changed as well in the last 6 months as well. Lending criteria was easier 6 months ago than today.

JoeK_3

Peter_S wrote: »

The apartments have been valued by ARLA agents at a decent value. I hate to say it Joe/ MortgageMamma but I fear this may be a no goer as you suggest. In the event that when the completion date comes I still have no finance in place, can you recommend a course of action? Whenever I've mentioned this subject to the builder, they just say we'll worry about it when it happens because it is quite a unique case but I can't afford to lose my deposit. That would leave me in the brown stuff.

MortgageMamma - Can you recommend an experienced BTL specialist? After dealing with this broking firm I only want to speak to people who do know what they are talking about.

Thanks again for your help.

This is not really the place to give specific mortgage advice and some of the creative thinking that has been tried by your present mortgage advisers never had a chance in the first place.

How can anyone think of trying for a let to buy mortgage when there is no one living in the property.

This is either a buy to let or a straight forward mortgage.

There a lenders out there that accept a vendors deposit scheme and there are lenders that will allow people to have two mortgages.

Without a full indepth factfind it is not possible to assess whether this is feasible or not but it's obvious that the current mortgage advisers are not able to help.

Have you considered a combination of a bridging loan and mortgage?

JoeK

RHemmings

silvercar wrote: »

I think a complaint to the mortgage advisor is in order here!

How much of the advice was in writing? I am not a lawyer and this is not legal advice, but I would think that it would be tricky to claim that they were mis-sold if there isn't documentation to support the claims.

And my cynical side is that when people have been given clearly ridiculous advice, that there seems to be a lack of a paper trail. Though, as you mention later on, there is the undeniable fact of contracts exchanged with no mortgage in place, while the developer's mortgage advisers were being used.

Investigate what the fallout would be if you failed to complete. Losing a 10% deposit if this was all gifted from the builder doesn't sound a terrible way out of the mess.

They made the deposit "up to 15%" with their own money.

Mr_helpful

Why not get the builder to say that its a 15% builders deposit and then use unity. You could get your 5% back from the builder as a cashback

Leon_W

Unity is a fair shout as they DO accept a 15% builders deposit. However, I get the feeling that when the OP says "apartment" we're looking at maybe something high rise ?

If that's the case then it wouldn't fit the lenders criteria as they will not lend on flats in blocks with more than 5 floors.

btloptingout

Peter_S wrote: »

Myself and a friend decided to buy 2 apartments as buy to let investment properties between us. The price for each property was £211k which we negotiated to £188k, which included a 10% deposit paid incentive from the builder and some other small benefits.

I'm afraid that you didn't "negotiate" the builder down at all....The market value of those properties is £188K (if you are lucky) and this explains why no one is throwing finance at you.

These new build off plan apatments rarely turn out to be a good investment....my advice is cut your losses and run!

Some examples of new build and subsequent re-sell near me....and this was supposed to be boom times!

Crown Heights
84 Alencon Link,
RG21 7TY
26-Sep-2003 £190,995
28-Jun-2005 £165,000 (-14%)

Crown Heights
139 Alencon Link,
RG21 7TW
28-Nov-2003 £213,995
29-Jun-2005 £183,000 (-15%)

Crown Heights
27 Alencon Link,
RG21 7TN
20-Apr-2004 £199,995
22-Dec-2005 £160,000 (-20%)

Crown Heights
123 Alencon Link,
RG21 7TW
31-Oct-2003 £211,995
22-Feb-2006 £168,000 (-21%)

Crown Heights
47 Alencon Link,
RG21 7TN
20-Apr-2004 £190,000
09-May-2006 £160,000 (-16%)

50 Crown Heights,
Basingstoke,
Hampshire,
RG21 7TY
29-Sep-2003 £177,995
12-Sep-2006 £167,500 (-6%)

32 Crown Heights,
Basingstoke,
Hampshire,
RG21 7TY
26-Jun-2003 £173,995
15-Sep-2006 £153,000 (-12%)

BTman

Ha Ha Ha, what a complete muppet...

Big_Richy

I must say I am fairly shocked by the response I'm seeing here. Your options are thus:

1: Assuming the rentals aren't stacking up - Increase the deposit you've put down - therefore reducing your repayments in line with the rental requirements.

2. Bridging loan and day one refinance - thereby broadening your pool of available lenders by ridding yourself of the gifted deposit requirement. Check out the Buy to Let Mortgage Centre.

3. Assuming you (or the developer) has had RICS valuations at the £211k figure you can look to a few lenders - such as Infinity - who also take into account your income to offset any shortfall in rent.

If you have had a RICS surveyor value the property at £211 - and I assume you have since that's not an issue you have mentioned - then you've genuinely made a profit. Since you will be able to refinance down the road to release the equity - expand your property portfolio (and keep hold of these apartments).

Finally - I'd like to reciprocate the passing of judgements by BT Man. My assumption - since you're unable to see the value or solution to this situation is that you've accidently passed through a thread habited by those that are tyring to get on in life - on your way to a thread entitled - IVA's and Bankruptcy.


Trust me Peter S - there's a solution to this and you'll come out of it making money. Send me a private message if you need more advice mate..

The_Eternal_Optimist_2

Big_Richy wrote: »

I must say I am fairly shocked by the response I'm seeing here. Your options are thus:

1: Assuming the rentals aren't stacking up - Increase the deposit you've put down - therefore reducing your repayments in line with the rental requirements.

2. Bridging loan and day one refinance - thereby broadening your pool of available lenders by ridding yourself of the gifted deposit requirement. Check out the Buy to Let Mortgage Centre.

3. Assuming you (or the developer) has had RICS valuations at the £211k figure you can look to a few lenders - such as Infinity - who also take into account your income to offset any shortfall in rent.

If you have had a RICS surveyor value the property at £211 - and I assume you have since that's not an issue you have mentioned - then you've genuinely made a profit. Since you will be able to refinance down the road to release the equity - expand your property portfolio (and keep hold of these apartments).

Finally - I'd like to reciprocate the passing of judgements by BT Man. My assumption - since you're unable to see the value or solution to this situation is that you've accidently passed through a thread habited by those that are tyring to get on in life - on your way to a thread entitled - IVA's and Bankruptcy.


Trust me Peter S - there's a solution to this and you'll come out of it making money. Send me a private message if you need more advice mate..

Hi Big Richy, welcome to the forums. I see you are newly registered and this is your first post. If you are an adviser you have to declare it in your status and you are not permitted on the forum to entice posters to contact you for advice.

See the mortgage adviser code of conduct at the top of the board for more info.

Big_Richy

Hi Eternal Optimist - I think this thread could do with you! :-)

Thanks for the head up - I'm not a mortgage advisor although I sometimes wish I were! I'm an investor ..