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Best mortgage option for renovation Buy to Let
Robson1978
Posts: 87 Forumite
Hi,
I have found a property that I am considering purchasing to do up and let out. I think I can get the property for about £75k and then it would take c£15k to do up as there is a lot of work that needs doing on the property. Based on the area that its in and other sold prices very close by I think the final value once renovated would be around £120k. Initially I was going to buy with cash and then once the work had been done and it was ready to let I would get a BTL mortgage so that as much (if not all) of my money left in the property was in essence equity generated from the re-form work. However I'm not sure I want to commit the full £90k in cash and wondered if there was a route where I could take out a mortgage for say £45k, do the work required and then remortgage with a BTL mortgage once the work is done. My only concern is that taking two mortgages incurs two lots of fees...
Any thoughts/advice appreciated.
Regards
Robson
I have found a property that I am considering purchasing to do up and let out. I think I can get the property for about £75k and then it would take c£15k to do up as there is a lot of work that needs doing on the property. Based on the area that its in and other sold prices very close by I think the final value once renovated would be around £120k. Initially I was going to buy with cash and then once the work had been done and it was ready to let I would get a BTL mortgage so that as much (if not all) of my money left in the property was in essence equity generated from the re-form work. However I'm not sure I want to commit the full £90k in cash and wondered if there was a route where I could take out a mortgage for say £45k, do the work required and then remortgage with a BTL mortgage once the work is done. My only concern is that taking two mortgages incurs two lots of fees...
Any thoughts/advice appreciated.
Regards
Robson
0
Comments
-
Speak to a broker.
There are products available to allow renovation. How much work is needed? anything structural?I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Hi - no it doesn't look like there is anything structural but its in quite a state inside so literally needs everything sorting (kitchen, bathroom, new boiler, flooring, complete decoration). It will probably need rendering outside too.
Thanks
Robson0
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