Let to Buy

fireballpaul

We've heard a lot about buy to let but less about LET TO BUY.   Anyone with good experience of having one of these, and does it depend on how much mortgage you've got left?  What if you have no mortgage that a certain winner?

thanks
P

housebuyer143

You convert your current residential into a BTL at the same time that you purchase your new residential. You need to remortgage to a BTL so it doesn't really matter the size of the loan as long as you can borrow enough to cover it on the BTL side. BTL loan is basically determined on how much rent you can get. 

fireballpaul

housebuyer143 said:

You convert your current residential into a BTL at the same time that you purchase your new residential. You need to remortgage to a BTL so it doesn't really matter the size of the loan as long as you can borrow enough to cover it on the BTL side. BTL loan is basically determined on how much rent you can get. 

And what if there is no Mortgage left on the current property.  In that case will I just be starting a BTL on it straight away?

housebuyer143

fireballpaul said:

housebuyer143 said:

You convert your current residential into a BTL at the same time that you purchase your new residential. You need to remortgage to a BTL so it doesn't really matter the size of the loan as long as you can borrow enough to cover it on the BTL side. BTL loan is basically determined on how much rent you can get. 

And what if there is no Mortgage left on the current property.  In that case will I just be starting a BTL on it straight away?

Yes, you remortgage it and take out a loan big enough to support the mortgage on the new one, or as big as you want and then use that money on completion to fund your residential. 

It's very straightforward, you just need a lender who does let to buy for the BTL. The only issue some people face and it's a computer says no thing is that sometimes when you use two different lenders that BTL one won't give you the BTL offer without a residential offer first, and the residential lender won't give you the offer without the BTL offer first🤦‍♀️🤦‍♀️ 
You are probably best using a broker if you wanted to do it, although I thought about doing this with NatWest and they were happy enough to do it. My house was mortgage free as well.

fireballpaul

housebuyer143 said:

fireballpaul said:

housebuyer143 said:

You convert your current residential into a BTL at the same time that you purchase your new residential. You need to remortgage to a BTL so it doesn't really matter the size of the loan as long as you can borrow enough to cover it on the BTL side. BTL loan is basically determined on how much rent you can get. 

And what if there is no Mortgage left on the current property.  In that case will I just be starting a BTL on it straight away?

Yes, you remortgage it and take out a loan big enough to support the mortgage on the new one, or as big as you want and then use that money on completion to fund your residential. 

It's very straightforward, you just need a lender who does let to buy for the BTL. The only issue some people face and it's a computer says no thing is that sometimes when you use two different lenders that BTL one won't give you the BTL offer without a residential offer first, and the residential lender won't give you the offer without the BTL offer first🤦‍♀️🤦‍♀️ 
You are probably best using a broker if you wanted to do it, although I thought about doing this with NatWest and they were happy enough to do it. My house was mortgage free as well.

Thank you
I've been offered between £1600-£1800 per month on my current place via an agency (they pay you whether occupied or not) 5 year lease per time.   That should be enough to get a mortgage on say £150k house?   Currently not working, well not much. 

housebuyer143

fireballpaul said:

housebuyer143 said:

fireballpaul said:

housebuyer143 said:

You convert your current residential into a BTL at the same time that you purchase your new residential. You need to remortgage to a BTL so it doesn't really matter the size of the loan as long as you can borrow enough to cover it on the BTL side. BTL loan is basically determined on how much rent you can get. 

And what if there is no Mortgage left on the current property.  In that case will I just be starting a BTL on it straight away?

Yes, you remortgage it and take out a loan big enough to support the mortgage on the new one, or as big as you want and then use that money on completion to fund your residential. 

It's very straightforward, you just need a lender who does let to buy for the BTL. The only issue some people face and it's a computer says no thing is that sometimes when you use two different lenders that BTL one won't give you the BTL offer without a residential offer first, and the residential lender won't give you the offer without the BTL offer first🤦‍♀️🤦‍♀️ 
You are probably best using a broker if you wanted to do it, although I thought about doing this with NatWest and they were happy enough to do it. My house was mortgage free as well.

Thank you
I've been offered between £1600-£1800 per month on my current place via an agency (they pay you whether occupied or not) 5 year lease per time.   That should be enough to get a mortgage on say £150k house?   Currently not working, well not much. 

It will be enough rent for that loan, but you will probably find you will not be allowed to use these companies. Mortgage companies tend to only allow ASTs and 24 months is likely the max, so you might have to go the traditional route if you plan to do a let to buy. 
Alternatively find a good specialist BTL broker and tell them what you want to do with the rental and they can see if anyone will do it. From past experience though, the ones that allow this type of guaranteed rent arrangement are very very few - and your options are already reduced as you want to do let to buy. 

fireballpaul

housebuyer143 said:

fireballpaul said:

housebuyer143 said:

fireballpaul said:

housebuyer143 said:

You convert your current residential into a BTL at the same time that you purchase your new residential. You need to remortgage to a BTL so it doesn't really matter the size of the loan as long as you can borrow enough to cover it on the BTL side. BTL loan is basically determined on how much rent you can get. 

And what if there is no Mortgage left on the current property.  In that case will I just be starting a BTL on it straight away?

Yes, you remortgage it and take out a loan big enough to support the mortgage on the new one, or as big as you want and then use that money on completion to fund your residential. 

It's very straightforward, you just need a lender who does let to buy for the BTL. The only issue some people face and it's a computer says no thing is that sometimes when you use two different lenders that BTL one won't give you the BTL offer without a residential offer first, and the residential lender won't give you the offer without the BTL offer first🤦‍♀️🤦‍♀️ 
You are probably best using a broker if you wanted to do it, although I thought about doing this with NatWest and they were happy enough to do it. My house was mortgage free as well.

Thank you
I've been offered between £1600-£1800 per month on my current place via an agency (they pay you whether occupied or not) 5 year lease per time.   That should be enough to get a mortgage on say £150k house?   Currently not working, well not much. 

It will be enough rent for that loan, but you will probably find you will not be allowed to use these companies. Mortgage companies tend to only allow ASTs and 24 months is likely the max, so you might have to go the traditional route if you plan to do a let to buy. 
Alternatively find a good specialist BTL broker and tell them what you want to do with the rental and they can see if anyone will do it. From past experience though, the ones that allow this type of guaranteed rent arrangement are very very few - and your options are already reduced as you want to do let to buy. 

Traditional route is just finding a tenant you mean? Privately?

housebuyer143

fireballpaul said:

housebuyer143 said:

fireballpaul said:

housebuyer143 said:

fireballpaul said:

housebuyer143 said:

You convert your current residential into a BTL at the same time that you purchase your new residential. You need to remortgage to a BTL so it doesn't really matter the size of the loan as long as you can borrow enough to cover it on the BTL side. BTL loan is basically determined on how much rent you can get. 

And what if there is no Mortgage left on the current property.  In that case will I just be starting a BTL on it straight away?

Yes, you remortgage it and take out a loan big enough to support the mortgage on the new one, or as big as you want and then use that money on completion to fund your residential. 

It's very straightforward, you just need a lender who does let to buy for the BTL. The only issue some people face and it's a computer says no thing is that sometimes when you use two different lenders that BTL one won't give you the BTL offer without a residential offer first, and the residential lender won't give you the offer without the BTL offer first🤦‍♀️🤦‍♀️ 
You are probably best using a broker if you wanted to do it, although I thought about doing this with NatWest and they were happy enough to do it. My house was mortgage free as well.

Thank you
I've been offered between £1600-£1800 per month on my current place via an agency (they pay you whether occupied or not) 5 year lease per time.   That should be enough to get a mortgage on say £150k house?   Currently not working, well not much. 

It will be enough rent for that loan, but you will probably find you will not be allowed to use these companies. Mortgage companies tend to only allow ASTs and 24 months is likely the max, so you might have to go the traditional route if you plan to do a let to buy. 
Alternatively find a good specialist BTL broker and tell them what you want to do with the rental and they can see if anyone will do it. From past experience though, the ones that allow this type of guaranteed rent arrangement are very very few - and your options are already reduced as you want to do let to buy. 

Traditional route is just finding a tenant you mean? Privately?

You can use an agent, but you will have to rent to a tenant, rather than leasing it to the company. 

fireballpaul

housebuyer143 said:

fireballpaul said:

housebuyer143 said:

fireballpaul said:

housebuyer143 said:

fireballpaul said:

housebuyer143 said:

You convert your current residential into a BTL at the same time that you purchase your new residential. You need to remortgage to a BTL so it doesn't really matter the size of the loan as long as you can borrow enough to cover it on the BTL side. BTL loan is basically determined on how much rent you can get. 

And what if there is no Mortgage left on the current property.  In that case will I just be starting a BTL on it straight away?

Yes, you remortgage it and take out a loan big enough to support the mortgage on the new one, or as big as you want and then use that money on completion to fund your residential. 

It's very straightforward, you just need a lender who does let to buy for the BTL. The only issue some people face and it's a computer says no thing is that sometimes when you use two different lenders that BTL one won't give you the BTL offer without a residential offer first, and the residential lender won't give you the offer without the BTL offer first🤦‍♀️🤦‍♀️ 
You are probably best using a broker if you wanted to do it, although I thought about doing this with NatWest and they were happy enough to do it. My house was mortgage free as well.

Thank you
I've been offered between £1600-£1800 per month on my current place via an agency (they pay you whether occupied or not) 5 year lease per time.   That should be enough to get a mortgage on say £150k house?   Currently not working, well not much. 

It will be enough rent for that loan, but you will probably find you will not be allowed to use these companies. Mortgage companies tend to only allow ASTs and 24 months is likely the max, so you might have to go the traditional route if you plan to do a let to buy. 
Alternatively find a good specialist BTL broker and tell them what you want to do with the rental and they can see if anyone will do it. From past experience though, the ones that allow this type of guaranteed rent arrangement are very very few - and your options are already reduced as you want to do let to buy. 

Traditional route is just finding a tenant you mean? Privately?

You can use an agent, but you will have to rent to a tenant, rather than leasing it to the company. 

Although a tenant might pay slightly more, the agency at least guarantee the rent whether it's occupied or not.  Is that not a better situation for the mortgage company?

housebuyer143

fireballpaul said:

housebuyer143 said:

fireballpaul said:

housebuyer143 said:

fireballpaul said:

housebuyer143 said:

fireballpaul said:

housebuyer143 said:

You convert your current residential into a BTL at the same time that you purchase your new residential. You need to remortgage to a BTL so it doesn't really matter the size of the loan as long as you can borrow enough to cover it on the BTL side. BTL loan is basically determined on how much rent you can get. 

And what if there is no Mortgage left on the current property.  In that case will I just be starting a BTL on it straight away?

Yes, you remortgage it and take out a loan big enough to support the mortgage on the new one, or as big as you want and then use that money on completion to fund your residential. 

It's very straightforward, you just need a lender who does let to buy for the BTL. The only issue some people face and it's a computer says no thing is that sometimes when you use two different lenders that BTL one won't give you the BTL offer without a residential offer first, and the residential lender won't give you the offer without the BTL offer first🤦‍♀️🤦‍♀️ 
You are probably best using a broker if you wanted to do it, although I thought about doing this with NatWest and they were happy enough to do it. My house was mortgage free as well.

Thank you
I've been offered between £1600-£1800 per month on my current place via an agency (they pay you whether occupied or not) 5 year lease per time.   That should be enough to get a mortgage on say £150k house?   Currently not working, well not much. 

It will be enough rent for that loan, but you will probably find you will not be allowed to use these companies. Mortgage companies tend to only allow ASTs and 24 months is likely the max, so you might have to go the traditional route if you plan to do a let to buy. 
Alternatively find a good specialist BTL broker and tell them what you want to do with the rental and they can see if anyone will do it. From past experience though, the ones that allow this type of guaranteed rent arrangement are very very few - and your options are already reduced as you want to do let to buy. 

Traditional route is just finding a tenant you mean? Privately?

You can use an agent, but you will have to rent to a tenant, rather than leasing it to the company. 

Although a tenant might pay slightly more, the agency at least guarantee the rent whether it's occupied or not.  Is that not a better situation for the mortgage company?

No, because one is a lease, and the other is an AST..A lease is not as easy to end as an AST is and should they need to repossess they will find it harder. 
The bank really don't care if your tenant pays you or not, they just want to ensure you haven't got someone tied into a 5 year contract that they can't break.

fireballpaul

housebuyer143 said:

fireballpaul said:

housebuyer143 said:

fireballpaul said:

housebuyer143 said:

fireballpaul said:

housebuyer143 said:

fireballpaul said:

housebuyer143 said:

You convert your current residential into a BTL at the same time that you purchase your new residential. You need to remortgage to a BTL so it doesn't really matter the size of the loan as long as you can borrow enough to cover it on the BTL side. BTL loan is basically determined on how much rent you can get. 

And what if there is no Mortgage left on the current property.  In that case will I just be starting a BTL on it straight away?

Yes, you remortgage it and take out a loan big enough to support the mortgage on the new one, or as big as you want and then use that money on completion to fund your residential. 

It's very straightforward, you just need a lender who does let to buy for the BTL. The only issue some people face and it's a computer says no thing is that sometimes when you use two different lenders that BTL one won't give you the BTL offer without a residential offer first, and the residential lender won't give you the offer without the BTL offer first🤦‍♀️🤦‍♀️ 
You are probably best using a broker if you wanted to do it, although I thought about doing this with NatWest and they were happy enough to do it. My house was mortgage free as well.

Thank you
I've been offered between £1600-£1800 per month on my current place via an agency (they pay you whether occupied or not) 5 year lease per time.   That should be enough to get a mortgage on say £150k house?   Currently not working, well not much. 

It will be enough rent for that loan, but you will probably find you will not be allowed to use these companies. Mortgage companies tend to only allow ASTs and 24 months is likely the max, so you might have to go the traditional route if you plan to do a let to buy. 
Alternatively find a good specialist BTL broker and tell them what you want to do with the rental and they can see if anyone will do it. From past experience though, the ones that allow this type of guaranteed rent arrangement are very very few - and your options are already reduced as you want to do let to buy. 

Traditional route is just finding a tenant you mean? Privately?

You can use an agent, but you will have to rent to a tenant, rather than leasing it to the company. 

Although a tenant might pay slightly more, the agency at least guarantee the rent whether it's occupied or not.  Is that not a better situation for the mortgage company?

No, because one is a lease, and the other is an AST..A lease is not as easy to end as an AST is and should they need to repossess they will find it harder. 
The bank really don't care if your tenant pays you or not, they just want to ensure you haven't got someone tied into a 5 year contract that they can't break.

I see , so they prefer the agency. And with that I can just keep getting another 5 years added on for ever until mortgage is paid.