Buying a house to rent (first time)

ATC111

The property is in Northern Ireland and would be modernised then rented out.

Buyer is domiciled in ROI.

The buyer would not meet lending criteria based upon their income but owns two other personal properties outright (one in NI, other in ROI).

Is it possible to apply for a mortgage based upon the future rental income? Would the other properties need to be used as collateral?

Can anyone advise on whether this is possible and the best approach to take with regard to lenders or brokers etc?

Thanks in advance.

theartfullodger

Are you buyer, vendor, agent, solicitor or ???? 

In your shoes I'd mortgage the other two properties then buy with that money.  Where is your domicile - NI or ROI or elsewhere?? I guess mortgaging when living in another country will be more complicated but perhaps mortgage brokers will help: Can't be the first time on the island or Ireland. 

Buying "for cash" with a hopefully quick timescale may permit negotiating price 

 Hopefully after modernisation etc etc the place would be mortgageable..

ATC111

theartfullodger said:

Are you buyer, vendor, agent, solicitor or ???? 

In your shoes I'd mortgage the other two properties then buy with that money.  Where is your domicile - NI or ROI or elsewhere?? I guess mortgaging when living in another country will be more complicated but perhaps mortgage brokers will help: Can't be the first time on the island or Ireland. 

Buying "for cash" with a hopefully quick timescale may permit negotiating price 

 Hopefully after modernisation etc etc the place would be mortgageable..

Thank you.

Buyer and domiciled in ROI.

Sg28

Do you live in one of the other 2 properties? If so you could take a residential mortgage at a lower rate to help fund the BTL. 

ATC111

Sg28 said:

Do you live in one of the other 2 properties? If so you could take a residential mortgage at a lower rate to help fund the BTL. 

I use both part-time. By taking out a residential mortgage on one, I would then have the cash to spend as I please?

theartfullodger

Been a landlord before?  Education advisable, much cheaper than the alternative...

Grumpy_chap

Remember that being a LL is a business so applying good business principles and customer care will make it all run more smoothly.  If the property is over-leveraged, it can be very difficult.

ATC111

theartfullodger said:

Been a landlord before?  Education advisable, much cheaper than the alternative...

No. That's what I'm seeking here.

theartfullodger

Suggest 
https://www.lani.org.uk/
(NI LL law is different from that in England, Wales, Scotland - which are all different also) &
https://www.nidirect.gov.uk/information-and-services/buying-selling-and-renting-home/private-renting

I've been a landlord in Scotland and am one in England but NI I know F A about:

Most years I make money as a landlord: But not all.  Trust you have the financial AND emotional reserves to cope with the tenant-from-help (or agent-from-hell....)

In 1979 under Thatcher's iron handbag I was paying 15% on a mortgage - large for that time: BoE base rate hit 17%....

Good luck (suspect you may need it).

35har1old

ATC111 said:

theartfullodger said:

Are you buyer, vendor, agent, solicitor or ???? 

In your shoes I'd mortgage the other two properties then buy with that money.  Where is your domicile - NI or ROI or elsewhere?? I guess mortgaging when living in another country will be more complicated but perhaps mortgage brokers will help: Can't be the first time on the island or Ireland. 

Buying "for cash" with a hopefully quick timescale may permit negotiating price 

 Hopefully after modernisation etc etc the place would be mortgageable..

Thank you.

Buyer and domiciled in ROI.

Cash doesn't speed the process up when it comes to solicitors 
You may not de able to claim the interest payments on ROI property to set against the rental income.
Landlord registration fee £70?
Rates discount for landlord payable end of September 
See ni direct for details on tenancy deposit  scheme
You have to apply to HMRC for self assessment if successful the agent won't have to deduct the tax