Buy to Let Property

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  • Miranda25Miranda25 Forumite
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    hazyjo said:
    I have a friend in NE London who's got 8 or so BTLs in Folkestone. No idea how she's been hit by Covid and if they're all still paying or not. Not recommending the area, just saying it obviously works well for her. Similar figures too.

    Personally, as much as I adore property, it's not something I'd choose to get into. Too much hassle, generally not so lucrative like it used to be, and I'd rather just have a bigger property myself, or move to a nicer area.
    Thanks. I do not expect lucrative business. I just want to invest money :-))
  • AnotherJoeAnotherJoe Forumite
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    Then invest in the stock market, not property.
  • Miranda25Miranda25 Forumite
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    Then invest in the stock market, not property.
    I am planning that too for small amounts so losses will not be so painful :-))
    In terms of property, if I take mortgage and pay it on time then I will improve my credibility so next time banks can borrow me more. This is what I expect. So I am looking a bit further :-))
  • Miranda25Miranda25 Forumite
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    Wanted to say: banks will lend me more  :)
  • edited 1 July 2020 at 2:21AM
    SlitherySlithery Forumite
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    edited 1 July 2020 at 2:21AM
    Miranda25 said:
    In terms of property, if I take mortgage and pay it on time then I will improve my credibility so next time banks can borrow me more. This is what I expect.
    That's just not how it works. Also if you want an investment that you can cash out easily then BtL isn't the right vehicle. What will you do if you have a tenant that doesn't pay and it takes you 12-18 months to evict them? Can you cover the mortgage for that long with no income?
    Do you already own your own property and have a 25% deposit for this BtL? If not then finding a mortgage will be pretty much impossible.

    Stocks and shares will be a far better investment, as well as being much more tax efficient.

  • Miranda25Miranda25 Forumite
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    Slithery said:
    Miranda25 said:
    In terms of property, if I take mortgage and pay it on time then I will improve my credibility so next time banks can borrow me more. This is what I expect.
    That's just not how it works. Also if you want an investment that you can cash out easily then BtL isn't the right vehicle. What will you do if you have a tenant that doesn't pay and it takes you 12-18 months to evict them? Can you cover the mortgage for that long with no income?
    Do you already own your own property and have a 25% deposit for this BtL? If not then finding a mortgage will be pretty much impossible.

    Stocks and shares will be a far better investment, as well as being much more tax efficient.

    Thank you.
    First of all I don't understand how landlords can be so unprotected in the UK? Are they happy about it? 
    Secondly, do I have to mention in banks that I need mortgage for BtL property? I wish to use FTB benefits. How about if I take mortgage as FTB and live in property for short time (do I have to?) and later decide to rent it? Anything wrong with that?
  • hazyjohazyjo Forumite
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    You request CTL if short term, or BTL if long term. If the former, you may just be charged a fee. If the latter, it will be a pricier product and you'll need at least 25% deposit.

    They are very likely to refuse if you've not long bought the property or if they suspect this was your plan all along (for example by not committing to a fixed rate).
    2021 wins: noise cancelling headphones
  • tom9980tom9980 Forumite
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    The government is under huge pressure to bring forward the ban on s21 evictions, I simply don't trust the red or blue lot getting the details right to make it work for tenants and landlords, it's one of the major reasons I am selling my rental property. 

    I simply cannot recommend someone in your situation doing this given the huge uncertainty at the moment. 
    When using the housing forum please use the sticky threads for valuable information.
  • grumiofoundationgrumiofoundation Forumite
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    Miranda25 said:
    Slithery said:
    Miranda25 said:
    In terms of property, if I take mortgage and pay it on time then I will improve my credibility so next time banks can borrow me more. This is what I expect.
    That's just not how it works. Also if you want an investment that you can cash out easily then BtL isn't the right vehicle. What will you do if you have a tenant that doesn't pay and it takes you 12-18 months to evict them? Can you cover the mortgage for that long with no income?
    Do you already own your own property and have a 25% deposit for this BtL? If not then finding a mortgage will be pretty much impossible.

    Stocks and shares will be a far better investment, as well as being much more tax efficient.

    Thank you.
    First of all I don't understand how landlords can be so unprotected in the UK? Are they happy about it? 
    Secondly, do I have to mention in banks that I need mortgage for BtL property? I wish to use FTB benefits. How about if I take mortgage as FTB and live in property for short time (do I have to?) and later decide to rent it?
    I want a flat occupied most of the time and do not want to deal with tenants who would refuse to leave the property:-))
    Anything wrong with that?
    You cannot use FTB benefits for a BTL. You obviously have apply for a BTL mortgage if you are going to let it out. 
    from day 1.

    As said above if you apply for residential and then move in for ~6 months then apply for CTL the bank does not have to give you that. You may also be at risk of having to repay the FTB benefits (stamp duty etc)?


    Miranda25 said:
    I want a flat occupied most of the time and do not want to deal with tenants who would refuse to leave the property:-))

    You cannot guarantee that. 

    Have you actually calculated the profit you will make from this business?
    Have you got the financial reserves to cover voids, repairs, legal fess?
    Do you actually want to become a landlord?


  • grumiofoundationgrumiofoundation Forumite
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    Miranda25 said:
    hazyjo said:
    I have a friend in NE London who's got 8 or so BTLs in Folkestone. No idea how she's been hit by Covid and if they're all still paying or not. Not recommending the area, just saying it obviously works well for her. Similar figures too.

    Personally, as much as I adore property, it's not something I'd choose to get into. Too much hassle, generally not so lucrative like it used to be, and I'd rather just have a bigger property myself, or move to a nicer area.
    Thanks. I do not expect lucrative business. I just want to invest money :-))
    But you want to make the most money possible on your investment no?
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