M2RTY
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Registered: 25th May 01
User status: Offline
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...OK, as you might know, I bought the house next door a year ago, and have been working on it ever since (like EVERYTHING REPLACED) - check my other threads
now, the next house along has come up for sale CHEAP after the old guy sold it on to his son, who done it up. Basically its had everything done to it (bog standard mind) and he wants £85000 for it
I eam going to see my financial advisor, as I hope we can sort somethign so I can buy it, spend 2 weeks solid getting it up to spec (repaint, cut grass etc as it has been empty 2 years) and rent it out
Need to look over figures, but I can put 10% deposit down, and could fiddle the figures on the other house to release some money. Should get £450 a month rent
just a bit rushed!! Taking the for sale sign down tonight to stop others buying lol
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deano87
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Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
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 sounds good.
No idea what Darlington is like  but your houses are fucking cheap. Not sure there is anything around here for £85k, still.
[Edited on 01-12-2008 by deano87]
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Colin
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Registered: 4th Apr 02
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Usually you'd need to take out a buy to let mortgage (unless you fiddle it!) which requires a deposit of around 25%!?
Is rental potential good, are other houses on the road rented out & filled year round??
Its worth remembering that if you will need to pay the mortgage on it if its empty!!
If your confident then its worth looking into yes, ive been thinking about doing similar with my current home when I move...if its going to be financially possible to keep it on that is!
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neoquip
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Registered: 12th Aug 02
Location: Nottm
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you'll need a 125% return on your Buy To Let.
IE:
for every £100 ofthe mortgage you need to brg in £125 on the rent.
I'd think you'd be hard pushed to get BTL with a 10% deposit, they are normally a min of 15%-25%+
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Ecosse Sport
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Registered: 5th Jun 02
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You might be lucky if you can buy the house well below the valuation.
This, plus your £8.5k deposit might allow you to get the mortgage. Then if you can calculate how much your mortgage will be, you have to make that the rent is 25% more. Your lender may require this to be included in the valuation.
Personally I deal with RBS Corporate Banking for my buy to lets, they're far easier to deal with than the high street banks and are able to look at the bigger picture and all properties you own and what you plan to do in the future. A mortgage advisor referred me to them a few years ago and its been well worth it.
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neoquip
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Registered: 12th Aug 02
Location: Nottm
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quote:
Originally posted by Ecosse Sport
Personally I deal with RBS Corporate Banking for my buy to lets, they're far easier to deal with than the high street banks and are able to look at the bigger picture and all properties you own and what you plan to do in the future. A mortgage advisor referred me to them a few years ago and its been well worth it.
Interesting, Sarah Beany mentioned something like this to me at Grand Designs last year.
Have RBS given you one big mortgage that covers all your properties?
I'd be intersted in getting one big mortgage loan, then I could pay off all the individual mortgaes leaving me with one big loan.
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Ecosse Sport
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Registered: 5th Jun 02
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quote:
Originally posted by neoquip
quote:
Originally posted by Ecosse Sport
Personally I deal with RBS Corporate Banking for my buy to lets, they're far easier to deal with than the high street banks and are able to look at the bigger picture and all properties you own and what you plan to do in the future. A mortgage advisor referred me to them a few years ago and its been well worth it.
Interesting, Sarah Beany mentioned something like this to me at Grand Designs last year.
Have RBS given you one big mortgage that covers all your properties?
I'd be intersted in getting one big mortgage loan, then I could pay off all the individual mortgaes leaving me with one big loan.
Yeah, thats basically it. Its one loan and one repayment, so long as the overall figures add up, they've been cool with that - so far at least!
The other thing is because its a business loan they're isn't as much red tape as they're not regulated by the FSA.
Also, compared to the typical buy to let mortgages available the fee's are very reasonable. Taking about 1% of the loan amount.
This link might be helpful for more information
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neoquip
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Registered: 12th Aug 02
Location: Nottm
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yh u2u
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John_C
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Registered: 5th Mar 03
Location: South east, Bromley
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Rental of 5400 on a buying price of 85000 is only a 6.35 yield which isn't great after costs.
You should be aiming for around 8% for it to be worthwhile as no capital gain will be available for the next few years
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