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wormy73
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« on: August 18, 2009, 09:28:16 pm » |
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Hi, I've found a flat for sale for £160k, which has the potential to have a return of around £200k after some minor refurbishment (around £5k max). Ideally i would like to buy it and keep hold of it on a buy to let mortgage but as i only have a deposit of £20k it falls below the margins acceptable for BTL so doubt this is possible. Due to the possible return i am not going to let this slip away. Does anybody have any ideas about how i could finance this project and possible keep hold of it with the aim to let it out after purchase. Alternatively has anyone had any experience with bridging or development loans as they seem like a viable option for buying the flat and then selling for a profit soon after. Thanks in advance, Andrew evansaj73@yahoo.co.uk |
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propertyfag
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« Reply #1 on: August 18, 2009, 11:30:27 pm » |
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Hey Wormy,
How much more capital do you need to get a BTL mortgage?
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Smartie
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« Reply #2 on: August 19, 2009, 11:02:02 am » |
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If you can make that much money, could you get a standard mortgage, do up and sell the property, then use your profit to purchase a different BTL property?
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wormy73
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« Reply #3 on: August 19, 2009, 10:26:33 pm » |
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I need another £20k to meet the minimum criteria fot BTL. That doesn't include refurb/furniture on top so it pretty much out of the equation.
Smartie, thats not a bad idea. Thinking about it i could buy, remortgage and sell on asap. This would inevitably mean some early repayment fees but there should still be a healthy profit. I have a meeting with my broker tomorrow so will see what they think.
Thanks,
Andrew
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propertyfag
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« Reply #4 on: August 19, 2009, 11:01:08 pm » |
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Smartie's suggestions is good.
But make sure you get a mortgage that doesn't tie you in. Most mortgages tie you in for at least 2 years, and if you want to escape from the agreement, you need to clear the balance along with paying a hefty penality fee.
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alex_tank
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« Reply #5 on: August 20, 2009, 01:58:10 pm » |
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I'm in a similar position... is it a terrible idea to buy a house and let it out with a standard residential mortgage?
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propertyfag
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« Reply #6 on: August 23, 2009, 02:40:58 pm » |
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I'm in a similar position... is it a terrible idea to buy a house and let it out with a standard residential mortgage?
Yes, because it's not legal. And your home insurance policy will most likely be void. If the house burns down, that will be all your investment down the drain. |
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simhar
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« Reply #7 on: September 17, 2009, 05:09:13 pm » |
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Redemption free is the best ! You can always hop to the best deal if & when it comes along.
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shaunywool
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« Reply #8 on: September 26, 2009, 04:15:40 am » |
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i currently have one property which i rent out but its still on a standard mortgage! i want to buy another one but cant get capital for a buy to let mortgage, i only have 10% not 25%, how is the best way to proceed? could i change my current mortgage into a buy to let mortgage, and then get another mortgage for myself? or is there other ways around not getting the 25% deposit.
ive also heard about Ahuja Group but not sure how safe this is?
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propertyfag
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« Reply #9 on: September 30, 2009, 11:48:50 pm » |
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Hey shaunywool,
I've heard a lot of bad things about the Ahuja group. Just Google "Ahuja scam". A lot of people have spoke about it on the internet.
It's interesting that you have a residential mortgage on a BTL property. I assume your building insurance is invalid?
I've seen a few 90% BTL mortgage deals come onto the market. Have you looked at those?
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semiproinvestorTim1
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« Reply #10 on: January 11, 2010, 01:26:07 pm » |
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Hi Andrew,
Have you had a look at lease options? They seem to be all the rage these days and can help you buy property without having to invest any actual money in them. You'd be surprised at what can be achieved through a bit of creative (and legal of course) financing etc. I'm not an expert in them or anything but I've been to a fair few seminars and stuff. Let me know if you want some info on them.
Tim
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jinosbrovens
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« Reply #11 on: May 14, 2010, 11:03:11 am » |
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I have found several properties that I would like to buy that are delinquent tax properties. The problem I don't have any money to purchase it. I would like to use the first one as a residential, and then flip others. How do I go about getting funding for these types of properties?
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smary35
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« Reply #12 on: May 22, 2010, 07:32:38 am » |
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There is absolutely no way. You can not rent out a "second home", it has to be vacant when you are not there.
You can buy it now as an investment, and refinance it later when you no have tenants.
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angelaric01
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« Reply #13 on: July 23, 2010, 10:15:46 am » |
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sorry, i have no any idea, but i want say to you thank you because my problem has been finished after read
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« Last Edit: July 23, 2010, 10:22:25 am by angelaric01 »
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