Buying a BTL

fishpond

Question to you good people.
I am using a financial adviser to purchase a 1930's house for BTL.
Today I have been asked by my fin adviser to provide at least 2 quotes for every job that needs doing (at least 20 different tradesmen to supply 2 quotes for everything)
I am very worried that this will upset and disrupt the very elderly person that currently lives there(vendor).
I currently have a full report on the woodworm and wall ties also an electrical report to bring it up to the 17th edition.
But I am concerned that I am now being asked to supply a raft of information to the fin adviser.
I and my wife are becoming increasingly concerned that the fin adviser or 1 of her business acquaintances will use all this information to her/there own ends.
Any thoughts on what we should do?
Many thanks

ACG

Cant you just get 2 companies who do everything to go down and give you a quote for all the jobs?

Whether you use them later on down the line is down to you, but it will give the lender the answers they want.

If you dont believe your financial advisor then ask them to forward on the email from the lender which confirms everything they want.

But im not sure what an advisor would get from knowing how much the work would cost - other than one of their friends or them buying the house - but if that were the case they would have put an offer in.

kingstreet

BTL products are designed for readily-lettable property, not property development projects. If you want to buy a cheap property to do it up, the lenders who entertain such cases will want detailed reports and estimates for any repairs.

Have you got enough to bridge a retention, as it sounds like there may be one?

fishpond

Thank you both very much for your replies:beer:

Kingstreet

Any idea at what stage property moves from a buy to let to a development.
The property has no fundamental flaws, the major costs will be re-plastering floors and ceilings and new carpets throughout.
Note:- this is an old, 4 bed property with 3 reception rooms and quite large.
Many Thanks
made us realise why we are getting all the questions from the fin adviser(even though we have not realised this, it seems that we are now in property development)

kingstreet

Different lenders take different views and these are based on the surveyor's findings at the inspection.

The Mortgage Works, for example, has a light-refurb product it defines thus;-

7. Light Refurbishment

Classified as a Buy to Let rental property which will benefit from minor improvements to be carried out within three months of completion and prior to letting. Please see the Light Refurbishment section of the product guide for available options.

• Maximum 90 at loan maturity (75 for First Time Landlords if not accompanied by an experienced landlord)
• Maximum 70% LTV
• First Time Landlords purchasing accepted up to 65% LTV
• Maximum loan size £500,000 (unless otherwise stated)
• Rental cover will be based on rental assessment after works
• TMW reserves the right to withhold the retention amount if the works have not been carried out within 3 months
Process:
• A valuation will be completed in the first instance and value will be assessed on current and after works basis
• Up to 70% of the property value or purchase price (whichever is lower) will be advanced
• Once the works are completed 70% of the after works value, to a maximum of £25,000, can be released subject to a successful re-inspection of the property
• A re-inspection costing £100 payable by the applicant, will be needed before retention monies can be released
• Minimum Retention – £2,000
• Maximum Retention – £25,000

otherwise, it expects the property ready to let immediately completion takes place.

fishpond

Thank you very much Kingstreet.
My wife and I now understand what has been happening.
Many Thanks for your time, patience and knowledge:beer: