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  • FIRST POST
    • krippo
    • By krippo 9th Jul 18, 5:02 PM
    • 24Posts
    • 2Thanks
    krippo
    Buying first flat/house for rent
    • #1
    • 9th Jul 18, 5:02 PM
    Buying first flat/house for rent 9th Jul 18 at 5:02 PM
    Hi guys!


    Recently I was thinking about buying 2nd property to rent out. Actually my girlfriend and I got one flat with mortgage (Value of flat is 100 K, mortgage balance is 52000 GBP still to pay).


    I was thinking of buying something for 120-130 K (house or flat) do you know approximately how much deposit I need to have to buy property to let? My former financial advisor said I need to have ca 35%, but I wanted to ask proffesionals like you.



    Is there any option how to get lower interest rate than rent to buy?




    Many thanks guys!


    Best Regards
Page 1
    • Cakeguts
    • By Cakeguts 9th Jul 18, 5:09 PM
    • 4,572 Posts
    • 6,593 Thanks
    Cakeguts
    • #2
    • 9th Jul 18, 5:09 PM
    • #2
    • 9th Jul 18, 5:09 PM
    Are you likely to want to get this flat back at any time in the future because if you do you need to read up about the new 3 year tenancies. Ask a new broker about the mortgage. It is usually about 25% deposit for a buy to let.
    • Hoploz
    • By Hoploz 9th Jul 18, 5:20 PM
    • 3,693 Posts
    • 3,229 Thanks
    Hoploz
    • #3
    • 9th Jul 18, 5:20 PM
    • #3
    • 9th Jul 18, 5:20 PM
    Remember to factor in the additional 3% stamp duty.

    And there is a lot of tax to pay on the rental income due to recent changes.

    You need to do a lot of research before making the decision to do this. There can be a lot of hassle being a landlord and unless you're getting a really good yield it really doesn't offer such a good return these days.

    There will be capital growth of course, but then there's CGT when you sell as well, so they get you all ways these days!
    • campbell19925
    • By campbell19925 9th Jul 18, 5:20 PM
    • 94 Posts
    • 112 Thanks
    campbell19925
    • #4
    • 9th Jul 18, 5:20 PM
    • #4
    • 9th Jul 18, 5:20 PM
    Hi guys!


    Recently I was thinking about buying 2nd property to rent out. Actually my girlfriend and I got one flat with mortgage (Value of flat is 100 K, mortgage balance is 52000 GBP still to pay).


    I was thinking of buying something for 120-130 K (house or flat) do you know approximately how much deposit I need to have to buy property to let? My former financial advisor said I need to have ca 35%, but I wanted to ask proffesionals like you.



    Is there any option how to get lower interest rate than rent to buy?




    Many thanks guys!


    Best Regards
    Originally posted by krippo
    Maximum LTV of 75% in nearly every case - could possibly get a higher LTV going with a broker. So yeah 25-40% of property value.

    Theres also extra 3% stamp duty on top of that - so it will be roughly 4000 for a property of 130,000 - 140,000.

    As a bit of general advice, interest rates are usually higher on buy to let mortgages than your standard ones.
    • Slithery
    • By Slithery 9th Jul 18, 5:32 PM
    • 783 Posts
    • 1,204 Thanks
    Slithery
    • #5
    • 9th Jul 18, 5:32 PM
    • #5
    • 9th Jul 18, 5:32 PM
    Please read the following thread fully, and all of the links that it contains before even thinking about becoming a landlord...


    Tenancies in Eng/Wales: Guides for landlords and tenants
    • krippo
    • By krippo 12th Jul 18, 2:49 PM
    • 24 Posts
    • 2 Thanks
    krippo
    • #6
    • 12th Jul 18, 2:49 PM
    • #6
    • 12th Jul 18, 2:49 PM
    Many thanks for the responses guys, now I got more information.


    I was wondering what in case if I rent out my residential flat and buy house or flat for residential purposes? Is it possible?
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