Higher value BTL - Lower deposit - Best solution
Discussion
Hi everyone
I am in the process of setting up a SPV to start purchasing BTL properties in my area, I already have two but there in my own name and with me planning on buying 2-3 per year long term its worth setting up an SPV.
Anyway the properties I have been buying are around the 45-50k mark which I know is hard to get on a LTD co mortgage.
So my thinking is to purchase higher value properties (60-70k) but use a 85% LTV mortgage.
Would this higher figure and lower deposit open more doors apposed to say 50-60k properties with a 20% deposit?
Just trying to figure out the best solution.
My plan is to save about 10-12k every few month as a deposit. I know the additional stamp duty needs paying which is all factored in.
Having had a look on the mortgage-works they offer some with no product fee over 5years which is handy, rates are higher at about 4.5% but understandable due to the LTV and still leaves me a reasonable yield (9-10%).
I am in the process of setting up a SPV to start purchasing BTL properties in my area, I already have two but there in my own name and with me planning on buying 2-3 per year long term its worth setting up an SPV.
Anyway the properties I have been buying are around the 45-50k mark which I know is hard to get on a LTD co mortgage.
So my thinking is to purchase higher value properties (60-70k) but use a 85% LTV mortgage.
Would this higher figure and lower deposit open more doors apposed to say 50-60k properties with a 20% deposit?
Just trying to figure out the best solution.
My plan is to save about 10-12k every few month as a deposit. I know the additional stamp duty needs paying which is all factored in.
Having had a look on the mortgage-works they offer some with no product fee over 5years which is handy, rates are higher at about 4.5% but understandable due to the LTV and still leaves me a reasonable yield (9-10%).
Ukadvice said:
Hi everyone
I am in the process of setting up a SPV to start purchasing BTL properties in my area, I already have two but there in my own name and with me planning on buying 2-3 per year long term its worth setting up an SPV.
So my thinking is to purchase higher value properties (60-70k) but use a 85% LTV mortgage.
Would this higher figure and lower deposit open more doors apposed to say 50-60k properties with a 20% deposit?
.
Have you tried getting a limited company BTL mortgage at 85% LTV ? ( I thought they didn’t exist )I am in the process of setting up a SPV to start purchasing BTL properties in my area, I already have two but there in my own name and with me planning on buying 2-3 per year long term its worth setting up an SPV.
So my thinking is to purchase higher value properties (60-70k) but use a 85% LTV mortgage.
Would this higher figure and lower deposit open more doors apposed to say 50-60k properties with a 20% deposit?
.
Ukadvice said:
I haven't tried yet but will be in about 2-3 months hopefully.
From what I can see there is 2-3 lenders?
The mortgage works seem to be the best overall but will see what a broker recommends in due time.
Looking on the Mortgage works website, it seems that max LTV is 80%.From what I can see there is 2-3 lenders?
The mortgage works seem to be the best overall but will see what a broker recommends in due time.
I assume anything higher than that will be considered ‘more risk’ so perhaps higher % and higher fees too.
I have the property managed but typically DSS in terms of tenant. Rent is from £425 - £475, my first one was £39k purchase price with rent of £425. Once you get up to the 50k mark (3 bedroom) you can request £475. Nice yield and reasonable profit even on my 20 year repayment mortgage 
mike74 said:
So Borrow To Leech isn't entirely dead then?
LOL!!I was invited to a meeting today with The Mears Group. Google them. They're fun!! They're just in the throes of taking over Serco's contract to house asylum seekers and refugees in Scotland. Apparently they're being given £2billion a year to do it with too!!!
i dearly wish you'd been party to the meeting.
Borrow to Leech has never been stronger in my neck of the jungle. (btw the LHA rate for 3-bed is more like £600pcm here).
So.....you buy the 3-bedder. Hand the keys to The Mears Group on a 5 year contract. They pay you the LHA rate. And they guarantee the property back in the condition it was given to them at the end of the contract. And apart from the obligation to continue to maintain the property's condition you don't see it again for half a decade!
Lovely jubbly!!!
selmahoose said:
So.....you buy the 3-bedder. Hand the keys to The Mears Group on a 5 year contract. They pay you the LHA rate. And they guarantee the property back in the condition it was given to them at the end of the contract. And apart from the obligation to continue to maintain the property's condition you don't see it again for half a decade!
How do they make any money? They cannot pay you the same rate as they get from the LHA, as well as being responsible for any damage, and all the admin costs. Condi said:
How do they make any money? They cannot pay you the same rate as they get from the LHA, as well as being responsible for any damage, and all the admin costs.
Here's a hint:https://corporatewatch.org/new-asylum-contracts-so...
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