Buy to Let for renovation

pda

Quick potentially silly question

If I have 25% deposit and know the rent will cover the mortgage by 125% could I get a buy to let mortgage to buy a property and sell it once renovated. My assumption is that its easier to get a BTL than an occupier mortgage if you met the requirements. I already have another mortgage on my current house. Hope that makes sense :huh::cheesy::cheesy:

kingstreet

BTL mortgages are based on the property being in "readily lettable condition" and are not for amateur property developers to get the magnolia out and flip it in a few months.

You need commercial finance for such a proposition, unless you plan to live in the property while you work on it, in which case you could do it as a residential if you have enough income to pass affordability.

If you plan to make a career of this, doing too many residentials and trying to get HMRC to accept the income as a capital gain will be difficult and you'll probably be promoted to professional property developer and the gains taxed as income instead.

pda

Thanks.

The places I've seen are in a rentable state and I'm only thinking of doing this once. Before getting a proper a long term buy to let.

Cheers