£100k Deposit + UK Flat: How do I BTL remotely?

Sam_Pathways

I am hoping to get some insights! I'm ready to jump into the UK property market with 2-3 BTL flats. I'm trying to figure out the best way forward.

Here is the situation:

• Expat > £100k deposit > £400k mortgage-free flat (looking to re-mortgage for more capital) > Need fully managed properties (hands off) > want a long-term investment (20+ years, capital growth + some monthly cash flow)
• Target: 2-3 flats

I am looking at two options:

• Option 1: Property investment companies.
• Cons: Not keen on off-plan/new builds – too risky for me! > concern over fees + % they take.
• Option 2: Searching the Market myself.
• The idea: I search the market > visit a few locations > learn about the area > make under market value offers on a number of properties > buy > get local lettings company to manage.
• Cons: I don't intimately know areas >  can't do any work on properties while abroad.
• Question: Are there companies that can manage light refurbs e.g., painting, small facelift? What is your experience with these?

So, the big question is, option 1 or option 2?

Are there any other options I haven't even considered that might be a better fit?

Any advice, or just a friendly nudge in the right direction would be hugely appreciated!

Alderbank

Sam_Pathways said:

I am hoping to get some insights! I'm ready to jump into the UK property market with 2-3 BTL flats. I'm trying to figure out the best way forward.

Here is the situation:

• Expat > £100k deposit > £400k mortgage-free flat (looking to re-mortgage for more capital) > Need fully managed properties (hands off) > want a long-term investment (20+ years, capital growth + some monthly cash flow)
• Target: 2-3 flats

I am looking at two options:

• Option 1: Property investment companies.
• Cons: Not keen on off-plan/new builds – too risky for me! > concern over fees + % they take.
• Option 2: Searching the Market myself.
• The idea: I search the market > visit a few locations > learn about the area > make under market value offers on a number of properties > buy > get local lettings company to manage.
• Cons: I don't intimately know areas >  can't do any work on properties while abroad.
• Question: Are there companies that can manage light refurbs e.g., painting, small facelift? What is your experience with these?

So, the big question is, option 1 or option 2?

Are there any other options I haven't even considered that might be a better fit?

Any advice, or just a friendly nudge in the right direction would be hugely appreciated!

Welcome to the forum.

By 'expat' you mean you are not resident in the UK?

If so, who is going to finance the mortgages for these 4-6 flats? Can you raise mortgages in your country of residence for these UK properties?

_Penny_Dreadful

Getting mortgages as a non-UK resident can be tricky and is dependent on where you are currently resident. 

In England and Northern Ireland there is additional SDLT to pay for non-UK residents and that’s on top of the higher rate of SDLT for the purchase of additional residential properties. You’ll also face higher LBTT and LTT in Scotland and Wales respectively for purchasing additional residential properties. 

You don’t say where in the UK you want to purchase these flats but assuming it’s England or Wales why do you want to purchase leasehold properties for investment over freehold? 

Are you aware of the legislative changes being proposed across the different legal jurisdictions of the UK for landlords and tenants? 

ReadySteadyPop

_Penny_Dreadful said:

Getting mortgages as a non-UK resident can be tricky and is dependent on where you are currently resident. 

In England and Northern Ireland there is additional SDLT to pay for non-UK residents and that’s on top of the higher rate of SDLT for the purchase of additional residential properties. You’ll also face higher LBTT and LTT in Scotland and Wales respectively for purchasing additional residential properties. 

You don’t say where in the UK you want to purchase these flats but assuming it’s England or Wales why do you want to purchase leasehold properties for investment over freehold? 

Are you aware of the legislative changes being proposed across the different legal jurisdictions of the UK for landlords and tenants? 

Can you link to the information?

Bookworm225

ReadySteadyPop said:

_Penny_Dreadful said:

Getting mortgages as a non-UK resident can be tricky and is dependent on where you are currently resident. 

In England and Northern Ireland there is additional SDLT to pay for non-UK residents and that’s on top of the higher rate of SDLT for the purchase of additional residential properties. You’ll also face higher LBTT and LTT in Scotland and Wales respectively for purchasing additional residential properties. 

You don’t say where in the UK you want to purchase these flats but assuming it’s England or Wales why do you want to purchase leasehold properties for investment over freehold? 

Are you aware of the legislative changes being proposed across the different legal jurisdictions of the UK for landlords and tenants? 

Can you link to the information?

you could do that yourself, you know the forums