Good idea? BTL

expatfred

Hi,


I'm a bit fed up of the rat race and want an exit so for the MSE gurus!


I have 2 houses mortgage free. Worth 1.2m GBP in london. I receive 5k GBP per month in rent from them in total.



Does anyone know how much I can safely BTL mortgage on these to escape and do nothing for a while?

buglawton

If you're living abroad the answer may be £0.
But also, £5k pa on a £1.2m portfolio looks like a miserable return, something wrong there.

expatfred

Per month...



Im UK based now

expatfred

Even 5k per month isn't that brilliant but I have a view on London property over next 20 years so will stick with it

chunkytfg

I rent in outer north London and my 400k flat costs me £1325 a month.

3 of those flats is 3975 a month for a 1.2mil portfolio.

On those numbers 5k a month seems like good going

Exodi

I don't think 5k per month is bad? Rental yields have been typically low in London so 5% is very very good going!

If you want to release equity in these properties, wouldn't it just be easier to sell one?

getmore4less

If you raise capital you reduce income.

How much do you need to live?

foxy-stoat

What is your net income per month and how much do you actually need to live on?

Sounds like you don't need to do anything to me.

Typhoon2000

That’s an excellent return. If you were 60 and fit and well and bought an annuity with that you would get far less per month and your capital would be eaten up.

expatfred

They are 3 bed houses in East London. Done up to high spec so command a high rent. It's really 4800. I rounded up!

expatfred

Exodi wrote: »

I don't think 5k per month is bad? Rental yields have been typically low in London so 5% is very very good going!

If you want to release equity in these properties, wouldn't it just be easier to sell one?

I don't want to sell! I'm early 30s and need some pension pot of sorts! Unfortunately I am emotionally attached having done them up too.