Mortgage Advice and Buy-to-Let Advice

lsjhoa

Hi All,

I wanted to ask for some advice, hopefully you guys with experience might be able to help me.

I'm looking to buy a house for a buy-to-let scheme, but would like some advice about how to go about this. I have researched the area that I want to buy in to, and I'm trying to seek advice about the tax, house potential value and the actual process.

Ok, so not to complicate my questions, I will number them. I appreciate any advice that you can give me:

1) With regards to the process, do I have to deal with the mortgage side first or should I deal with estate agents first? I have seen some potential houses that I would like to buy and I think that the rent should easily cover the mortgage payments (Hopefully).

2) Do banks allow me to take out a normal mortgage firstly and then change it to a buy-to-let after? I mean this wont be straight away, possibly a couple of months down the line, especially if I have to spend some time doing the place up

3) I have found some nice 3 bedroom houses and some nice 2 bedroom houses, but am stuck as to which one would be better for both rental potential and economic growth in the future. Is it better to go for a 3 bed or a 2 bed with a long garden?

4) With regards to the buy-to-let, is it true that its better to create a company or do it via self-employed status?

Well thats it for now, hope I havent confussed you. Thanks for any help you can offer.

Lsjhoa.

JoeK_3

lsjhoa wrote: »

Hi All,

I wanted to ask for some advice, hopefully you guys with experience might be able to help me.

I'm looking to buy a house for a buy-to-let scheme, but would like some advice about how to go about this. I have researched the area that I want to buy in to, and I'm trying to seek advice about the tax, house potential value and the actual process.

Ok, so not to complicate my questions, I will number them. I appreciate any advice that you can give me:

1) With regards to the process, do I have to deal with the mortgage side first or should I deal with estate agents first? I have seen some potential houses that I would like to buy and I think that the rent should easily cover the mortgage payments (Hopefully).

Get letting agents to assess the rental value of the properties that you have in mind

lsjhoa wrote: »

2) Do banks allow me to take out a normal mortgage firstly and then change it to a buy-to-let after? I mean this wont be straight away, possibly a couple of months down the line, especially if I have to spend some time doing the place up

You need a buy to let mortgage that requires approx. 15% deposit

lsjhoa wrote: »

3) I have found some nice 3 bedroom houses and some nice 2 bedroom houses, but am stuck as to which one would be better for both rental potential and economic growth in the future. Is it better to go for a 3 bed or a 2 bed with a long garden?

Ask the letting agents

lsjhoa wrote: »

4) With regards to the buy-to-let, is it true that its better to create a company or do it via self-employed status?

As you are, on a self employed basis.

lsjhoa wrote: »

Well thats it for now, hope I havent confussed you. Thanks for any help you can offer.

Lsjhoa.

Good Luck

JoeK

toonfish

there are companies that will do buy to let, even on a property than needs renovation before letting. Otherwise you can buy on a residential basis, but make sure you choose a lender that allows you to let the property freely at a later date.

lsjhoa

I've found a couple of 2 and 3 bed terraced houses. Im leaning towards the idea of a 3 bed for potentially selling in 10 years.

any idea how much i should make an offer for on a property? I was thinking £7000 below asking price.Is that too low?