BTL to myself – crazy idea? Or there are better solutions?

knonist

Background:

I’m living and working in Cambridge at the moment and wouldlike to buy a house for living in. I’m in my early 30’s and earn about 28k andmy partner is about the same age and early more or less the same. We would liketo get married and have kids

I have around £30k (+ around 12K in shares) in cash and my partner (a friend) has about £18K in cash, we may be able to borrow (with repayment!) a £20-40Kfrom our parents. We have no debt, and save around £500 each every month.

House price in Cambridge got crazy recently (2 bed semi foraround £300K) and with the reformed pension scheme + AstraZeneca relocating to Cambridge,things is going to get much worst. So I guess if I don’t buy now, then I willnever be able to afford it.

ACG

Why can you put £90k down on a BTL but not if your are buying for yourself?

knonist

ACG wrote: »

Why can you put £90k down on a BTL but not if your are buying for yourself?

Calculator showed the mortage payment for 200K is around £1200-£1300 per month, with council tax and bills, the total cost will be around £1500 per month.

Whilst the total cost for our current rent is only around £900. It is cheaper not to live in the house ourself and have someing paying the mortgage for a few years.

I was told if I BTL through a company I can save in tax and the more can go towards another house. Is it true?

amnblog

It sounds like you cannot afford to bring up a family in your preferred location.


If this is the case, something has to give.


Smaller property, or different location.


This crazy idea about buy to let that you rent yourself is nonsense.

knonist

The reason I would like to BTL to myself is because I would like to get someone to pay for my mortgage for a few years before I finally need the property. At the moment, my rent is cheap enough so I dont need to buy, but as mentioned, AstraZeneca is moving to cambridge so I would like to buy before it become too expensive.
As I plan to expand my portfolio in the future, It might make sence if I start the whole thing off as BTL, hence the crazy idea of BTL came up.
If I buy as myself, any way to keep the monthly payment to arround £1000 or less?

amnblog

Payments on buy to let mortgage for a £300,000 purchase with a £90,000 deposit will be under £1,000 per month for most products.


There are very few lenders that will assist you if you do not already own your own home so you need the assistance of a broker.


Forget the Limited Company nonsense.

knonist

amnblog wrote: »

Payments on buy to let mortgage for a £300,000 purchase with a £90,000 deposit will be under £1,000 per month for most products.


There are very few lenders that will assist you if you do not already own your own home so you need the assistance of a broker.


Forget the Limited Company nonsense.

What is the current loan ratio for BTL? Do you think I stand a chance to get a mortgage?

ViolaLass

knonist wrote: »

Calculator showed the mortage payment for 200K is around £1200-£1300 per month, with council tax and bills, the total cost will be around £1500 per month.

Whilst the total cost for our current rent is only around £900. It is cheaper not to live in the house ourself and have someing paying the mortgage for a few years.

I was told if I BTL through a company I can save in tax and the more can go towards another house. Is it true?

You didn't actually answer the question...

knonist

ViolaLass wrote: »

You didn't actually answer the question...

The reason I would like to BTL to myself is because I would like to get someone to pay for my mortgage for a few years before I finally need the property. At the moment, my rent is cheap enough so I dont need to buy, but as mentioned, AstraZeneca is moving to cambridge so I would like to buy before it become too expensive.

knonist

If I do not borrow the 40K from family, will I have a chance that I can take a capital repayment mortgage with less than £1000 payment per month?

mrginge

knonist wrote: »

The reason I would like to BTL to myself is because I would like to get someone to pay for my mortgage for a few years before I finally need the property. At the moment, my rent is cheap enough so I dont need to buy, but as mentioned, AstraZeneca is moving to cambridge so I would like to buy before it become too expensive.

You can't 'BTL to myself'.
What you mean is
1. Get a BTL property.
2. Let it.
3. Use the profit (:rotfl:) to pay down the mortgage.
4. When you are ready, convert it back to a residential mortgage and move in.

You have two key problems.
1. Can you get a BTL mortgage?
2. Have you got the first clue about becoming a landlord and running a letting business?
I suspect the answer to both is no.

And i'm still waiting to hear where the 90k deposit comes from.