BTL - £25,000 minimum loan amount
Discussion
Evening guys,
I have just viewed a flat local to my self which is a perfect BTL, the purchase price is low as the property is in need of refurbishment (minor) but its in a good location and will easily rent for £375 - £400 on a good day.
The purchase price is £32,500. I spoke to the owner and thats what is left on his mortgage so he just wants a quick sale as its been sat empty and he is worried it will get damaged or gradually get in a worse state.
I know its a low amount but would this be mortgageable? I can put down 20% or 25% as a deposit but think I might struggle finding a lender at such a low value.
Cheers
I have just viewed a flat local to my self which is a perfect BTL, the purchase price is low as the property is in need of refurbishment (minor) but its in a good location and will easily rent for £375 - £400 on a good day.
The purchase price is £32,500. I spoke to the owner and thats what is left on his mortgage so he just wants a quick sale as its been sat empty and he is worried it will get damaged or gradually get in a worse state.
I know its a low amount but would this be mortgageable? I can put down 20% or 25% as a deposit but think I might struggle finding a lender at such a low value.
Cheers
Sarnie JCKST1 said:
I thought this maybe the case unfortunately 
Not ideal for me as I have been investing in lower value properties (sub 45k).
Back to the drawing board I think and look at long term plans.
Thanks
Do you own the house you live in?Not ideal for me as I have been investing in lower value properties (sub 45k).
Back to the drawing board I think and look at long term plans.
Thanks
Can you get a further advance and buy the investment in cash?
At this price point, get a personal loan. If you have the 25% to put down you are borrowing slightly less than £25k which is personal loan territory. Some will lend more
This is probably your easiest option. Assuming your credit record is good and you earn a earn enough and aren’t in debt up to your eyeballs you shouldn’t have an issue.
This is probably your easiest option. Assuming your credit record is good and you earn a earn enough and aren’t in debt up to your eyeballs you shouldn’t have an issue.
dogz said:
At this price point, get a personal loan. If you have the 25% to put down you are borrowing slightly less than £25k which is personal loan territory. Some will lend more
This is probably your easiest option. Assuming your credit record is good and you earn a earn enough and aren’t in debt up to your eyeballs you shouldn’t have an issue.
Beat me to it.... ^ This - you should be able to borrow via unsecured personal loan at this sort of level for around 3% at the moment from a wide variety of mainstream lenders.This is probably your easiest option. Assuming your credit record is good and you earn a earn enough and aren’t in debt up to your eyeballs you shouldn’t have an issue.
That's probably about 150% of the best BTL mortgage rate, but the actual sums involved mean it won't make much difference.
Thrown in a £1K minimum arrangement fee, valuation fee and legal fees, and, amortised over (say) 2 years of repayments and you start to see that over 2 years this mortgage may even end up costing more.....
JCKST1 said:
Evening guys,
I have just viewed a flat local to my self which is a perfect BTL, the purchase price is low as the property is in need of refurbishment (minor) but its in a good location and will easily rent for £375 - £400 on a good day.
The purchase price is £32,500. I spoke to the owner and thats what is left on his mortgage so he just wants a quick sale as its been sat empty and he is worried it will get damaged or gradually get in a worse state.
I know its a low amount but would this be mortgageable? I can put down 20% or 25% as a deposit but think I might struggle finding a lender at such a low value.
Cheers
Wow, i cant envisage a flat at £32kI have just viewed a flat local to my self which is a perfect BTL, the purchase price is low as the property is in need of refurbishment (minor) but its in a good location and will easily rent for £375 - £400 on a good day.
The purchase price is £32,500. I spoke to the owner and thats what is left on his mortgage so he just wants a quick sale as its been sat empty and he is worried it will get damaged or gradually get in a worse state.
I know its a low amount but would this be mortgageable? I can put down 20% or 25% as a deposit but think I might struggle finding a lender at such a low value.
Cheers
Cheapest near me is a 1 bed conversion. 13ft wide and 36ft deep. £140k!
JCKST1 said:
Evening guys,
I have just viewed a flat local to my self which is a perfect BTL, the purchase price is low as the property is in need of refurbishment (minor) but its in a good location and will easily rent for £375 - £400 on a good day.
The purchase price is £32,500. I spoke to the owner and thats what is left on his mortgage so he just wants a quick sale as its been sat empty and he is worried it will get damaged or gradually get in a worse state.
I know its a low amount but would this be mortgageable? I can put down 20% or 25% as a deposit but think I might struggle finding a lender at such a low value.
Cheers
Before you do anything consider what you are saying...I have just viewed a flat local to my self which is a perfect BTL, the purchase price is low as the property is in need of refurbishment (minor) but its in a good location and will easily rent for £375 - £400 on a good day.
The purchase price is £32,500. I spoke to the owner and thats what is left on his mortgage so he just wants a quick sale as its been sat empty and he is worried it will get damaged or gradually get in a worse state.
I know its a low amount but would this be mortgageable? I can put down 20% or 25% as a deposit but think I might struggle finding a lender at such a low value.
Cheers
The owner wants out, willing to sell for less than he paid I assume, its currently empty and needs a refurb.
Hmm.
I would be thinking very carefully. Have you checked the lease and spoken to any other owners? Any big repairs coming up???
Tenants, good ones at least, are often very fussy these days so you might have to spend £5-10k to get it up to standard. That's 2 years rent...
red_slr said:
JCKST1 said:
Evening guys,
I have just viewed a flat local to my self which is a perfect BTL, the purchase price is low as the property is in need of refurbishment (minor) but its in a good location and will easily rent for £375 - £400 on a good day.
The purchase price is £32,500. I spoke to the owner and thats what is left on his mortgage so he just wants a quick sale as its been sat empty and he is worried it will get damaged or gradually get in a worse state.
I know its a low amount but would this be mortgageable? I can put down 20% or 25% as a deposit but think I might struggle finding a lender at such a low value.
Cheers
Before you do anything consider what you are saying...I have just viewed a flat local to my self which is a perfect BTL, the purchase price is low as the property is in need of refurbishment (minor) but its in a good location and will easily rent for £375 - £400 on a good day.
The purchase price is £32,500. I spoke to the owner and thats what is left on his mortgage so he just wants a quick sale as its been sat empty and he is worried it will get damaged or gradually get in a worse state.
I know its a low amount but would this be mortgageable? I can put down 20% or 25% as a deposit but think I might struggle finding a lender at such a low value.
Cheers
The owner wants out, willing to sell for less than he paid I assume, its currently empty and needs a refurb.
Hmm.
I would be thinking very carefully. Have you checked the lease and spoken to any other owners? Any big repairs coming up???
Tenants, good ones at least, are often very fussy these days so you might have to spend £5-10k to get it up to standard. That's 2 years rent...
OP, how much under current market value is the £32k the seller is willing to accept?
Thanks guys.
I already have a loan (about 14k left) on my car so not sure if I would qualify for another?
I am on a good salary and dont have any major debt other than the loan.
The flat is actually up for offers over the asking price but after speaking to the owner he will happily take £32,500 and clear his mortgage. I would say after tidying it up (£1500-£2000) it would be worth £40k so its not exactly bargain of the year but under market value and in a good location. There is 100 year lease left on it, the property is in solid condition and having spoke to the management company there was a damp problem rectified two years ago.
Apart from one which has just came on the market all other flats are rented out.
At this price point it wont have the best tenants in it, possibly DSS but I will get the property managed like my others and not had a problem so far.
Its basically just a quick flip and rent out. Later down the line I might decide to fit a new kitchen, bathroom etc and could sell for over 40k but for now it would be new carpets, repaint and general tidy up.
I already have a loan (about 14k left) on my car so not sure if I would qualify for another?
I am on a good salary and dont have any major debt other than the loan.
The flat is actually up for offers over the asking price but after speaking to the owner he will happily take £32,500 and clear his mortgage. I would say after tidying it up (£1500-£2000) it would be worth £40k so its not exactly bargain of the year but under market value and in a good location. There is 100 year lease left on it, the property is in solid condition and having spoke to the management company there was a damp problem rectified two years ago.
Apart from one which has just came on the market all other flats are rented out.
At this price point it wont have the best tenants in it, possibly DSS but I will get the property managed like my others and not had a problem so far.
Its basically just a quick flip and rent out. Later down the line I might decide to fit a new kitchen, bathroom etc and could sell for over 40k but for now it would be new carpets, repaint and general tidy up.
Simond S said:
JCKST1 said:
Evening guys,
I have just viewed a flat local to my self which is a perfect BTL, the purchase price is low as the property is in need of refurbishment (minor) but its in a good location and will easily rent for £375 - £400 on a good day.
The purchase price is £32,500. I spoke to the owner and thats what is left on his mortgage so he just wants a quick sale as its been sat empty and he is worried it will get damaged or gradually get in a worse state.
I know its a low amount but would this be mortgageable? I can put down 20% or 25% as a deposit but think I might struggle finding a lender at such a low value.
Cheers
Wow, i cant envisage a flat at £32kI have just viewed a flat local to my self which is a perfect BTL, the purchase price is low as the property is in need of refurbishment (minor) but its in a good location and will easily rent for £375 - £400 on a good day.
The purchase price is £32,500. I spoke to the owner and thats what is left on his mortgage so he just wants a quick sale as its been sat empty and he is worried it will get damaged or gradually get in a worse state.
I know its a low amount but would this be mortgageable? I can put down 20% or 25% as a deposit but think I might struggle finding a lender at such a low value.
Cheers
Cheapest near me is a 1 bed conversion. 13ft wide and 36ft deep. £140k!
selmahoose said:
For money you could try Aldermore or Shawbrook. I'm told Shawbrook will lend against the portfolio.
Another thing I did when I needed an extra 25k some years ago was I bought the wife's Porsche from her using a car loan. Super fast and easy.
Property sounds a good'un btw.
Aldermore's minimum property value is £65k...…………..Another thing I did when I needed an extra 25k some years ago was I bought the wife's Porsche from her using a car loan. Super fast and easy.
Property sounds a good'un btw.
Thanks again for the input. Looks like I will have to let this one go, after looking online it seems Hanley offer the lowest which is 30k minimum loan amount.
Just for example would the below work long term?
Based on the above I am hoping to buy a couple more cheaper BTL this year (approx 40k purchase price and 20% - 25% deposit), our plan is to move abroad in the near future as I have family in Spain, I would still work between the UK and Spain and salary from the UK company. I would look to switch my current residential mortgage if possible to a BTL (My house is worth about 210k and 60k equity) could I then group the above properties together including my own and put them on a portfolio mortgage?
I know its fairly long winded and a bit complex but could this help open doors later down the line as there would be quite a chunk of equity between all properties?
Just for example would the below work long term?
Based on the above I am hoping to buy a couple more cheaper BTL this year (approx 40k purchase price and 20% - 25% deposit), our plan is to move abroad in the near future as I have family in Spain, I would still work between the UK and Spain and salary from the UK company. I would look to switch my current residential mortgage if possible to a BTL (My house is worth about 210k and 60k equity) could I then group the above properties together including my own and put them on a portfolio mortgage?
I know its fairly long winded and a bit complex but could this help open doors later down the line as there would be quite a chunk of equity between all properties?
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