int only buy to let property

Smokeyone

I am seeking advice on what might be the best plan on a property I am currently letting - int only mort with a high street bank - the term ends in two years.......£180k mort/property worth around £230k -
over the next seven years I might be able to find assets of around £120k

Have considered doing a part repayment mortgage of £60k but I would struggle a little to find say £500 per month for ten years....

Any suggestions/sell the property/new mortgage with another bank etc
Oh and I am 59 - understand most mortgages cannot go past 70...

Thanks in advance

kingstreet

A BTL remortgage sounds like the best bet.

Your age is less of an issue on BTLs and you should be able to remain on interest-only, if you choose. Make sure you have an exist strategy for when you need to repay the mortgage, perhaps from the sale of the property?

Last one, there are a few BTL lenders who will grant a mortgage upto age 90 for an experienced landlord.

Smokeyone

Thanks for the suggestions - so it might be possible to have a brand new int only mortgage for say ten years with selling the property being the exit strategy....in rough figures my mortgage is £900pm while my rent is £1300pm - as my tenants seem to stay two/three years or so I have wondered how you co-incide them leaving with selling the house and ending the mortgage term.

kingstreet

It is for BTL, yes.

The rent/payment should be fine.

When you decide to sell, put the house on the market, remembering if the tenancy rolls over to a SPT you have to give the tenants two months notice, on a rent day.

If still within the term of an AST, you give notice by issuing a S21 two months before the tenancy end date.

You may have to factor-in the cost of delay if they don't leave willingly.

Smokeyone

I would rather not give tenants notice to leave so is there any way around the problem with a lender - I know for a fact that the likely max stay of a tenant is about four years but more likely three years.......

kingstreet

You have to give them notice. They have the right to stay indefinitely as an AST simply rolls into a SPT.

You could try to sell with sitting tenant, but this will severely limit your buyer options and likely sale price.

I don't understand what you mean by this;-

is there any way around the problem with a lender.

I was talking about the issue of notice when you finally decide to sell. It's nothing to do with the remortgage issue, so a lender would not be greatly interested.

Smokeyone

I meant in the context of a tenant leaving in say 12 months but with the mortgage term running out in say six months. When a new tenant moves in I usually know roughly when they plan to leave...........