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messageBuy to let mortgages and renting flats for income - anyone got experience of this?
Posted by TwinkleToes September 03, 07:22PM

Does anyone have any experience of trying to get a 'buy to let' mortgage? We're interested in the idea of getting somewhere to develop or do up and then let as a source of income. Probably not in London due to the initial costs....

We'd be really interested to hear anyone's experience both pre- and post-covid.

messageRe: Buy to let mortgages and renting flats for income - anyone got experience of this?
Posted by Sephiroth September 03, 07:27PM

You will be contributing to inflating house prices - no amount of “affordable housing” built can compete with it
You will be relying on someone in a much less fortunate position than yourself to pay your mortgage and your lifestyle

I have been a landlord. I let my flat whilst I rented a house in a interim position. We need landlords and we need rental property. But rather than hold on to my flat and expect tenants to pay me ever more money, I sold the place

But we don’t need people relying on rising house and rental prices to fund their lifestyle or pensions.

Sorry. But it’s true

messageRe: Buy to let mortgages and renting flats for income - anyone got experience of this?
Posted by KidKruger September 03, 09:04PM

Firstly, make sure you understand the tax deal and what costs you can claim against rental income (and NOT claim).
Because before you get into it you may want to look at financial viability.
You’ll pay more for a BTL mortgage.

messageRe: Buy to let mortgages and renting flats for income - anyone got experience of this?
Posted by Clutterqueen September 03, 10:24PM

I'm surprised you would be asking about this sort of thing, especially as you say you are not interested in London etc.

messageRe: Buy to let mortgages and renting flats for income - anyone got experience of this?
Posted by JohnL September 04, 08:29AM

be aware of any changes made this autumn - Capital Gains changes already being suggested.

If leasehold watch service charges - and anything major that maybe pending

messageRe: Buy to let mortgages and renting flats for income - anyone got experience of this?
Posted by womanofdulwich September 04, 10:32AM

Maybe it works for some people as a pension. Goodness knows what those of us with private pensions will live off as the amount we have put away for years has dropped or stayed the same in the past 6 months, and I don't see it growing. The amount it will yield is not the 10% predicted 25 years ago. I never thought it was a good idea to be a landlord but we do need a regulated private rented sector to meet a housing need, and maybe its more useful to some in society to have access to private rented housing.But it must be maintained, and this is the hub of the problem in my opinion.

messageRe: Buy to let mortgages and renting flats for income - anyone got experience of this?
Posted by JohnL September 04, 11:00AM

womanofdulwich Wrote:
-------------------------------------------------------
> Maybe it works for some people as a pension.
> Goodness knows what those of us with private
> pensions will live off as the amount we have put
> away for years has dropped or stayed the same in
> the past 6 months, and I don't see it growing. The
> amount it will yield is not the 10% predicted 25
> years ago. I never thought it was a good idea to
> be a landlord but we do need a regulated private
> rented sector to meet a housing need, and maybe
> its more useful to some in society to have access
> to private rented housing.But it must be
> maintained, and this is the hub of the problem in
> my opinion.

You'd think you could invest in a property type unit trust and get back the same you would from a BTL (minus fees).

messageRe: Buy to let mortgages and renting flats for income - anyone got experience of this?
Posted by womanofdulwich September 04, 11:24AM

John, you are probably correct, I think some were launched about 15 years ago, but Ive lost touch. Any suggestions anyone?

messageRe: Buy to let mortgages and renting flats for income - anyone got experience of this?
Posted by monica September 04, 12:08PM

Iv had a BTL for about 10 years now. My initial marital home which is in the Croydon area, is now a rental. Iv been lucky in the sense that I bought when the prices were low, back in 2002. I had a BTL in Dulwich, again initially started as my home, which helps with capital gains if we were to sell it anytime in the future.
I would do some more research and talk to different brokers. At the moment the market is very advantageous for the landlord, due to everything we have gone through in lockdown. My current tenants have had to move out of London due to work, when i advertised my rental, I had over 60 applicants interested and various councils approaching me, re letting to them on a long term lease.
There are competitive BTL deals. Check out Metro Bank.
Good luck

messageRe: Buy to let mortgages and renting flats for income - anyone got experience of this?
Posted by KidKruger September 04, 04:27PM

Also, relief on mortgage interest is being gradually reduced from maximum 40% down to (standard rate) 20%, by 25% (5%) per year, until I think 20/21.
This is so there's a single rate for all landlords, not 40% relief for higher-rate taxpayers and 20% for lesser earners.

messageRe: Buy to let mortgages and renting flats for income - anyone got experience of this?
Posted by char1i3 September 09, 12:35PM

I have a lot of experience and currently have 50 tenants in various properties. As the OP says it is not really worth it with straight residential property. The yield is around 3% so if you borrow at 3% to earn 3% then you will lose money because of the cost you incur, for example stamp duty.

Ideally to make a residential BTL work you need to add some value - add a bedroom, split a big property into smaller units, etc. The tax treatment is crap now as well, and the reason there is a glut of two bed flats on the market - landlords are selling off their stock.

Personally I like commercial property - the yields are higher, the tenants are easier, the maintenance is less and the tax treatment is much better.

Charlie

messageRe: Buy to let mortgages and renting flats for income - anyone got experience of this?
Posted by Bob Buzzard September 09, 01:47PM

Why bother with a mortgage? All those intrusive questions for assessing affordability. I just pay with cash.

messageRe: Buy to let mortgages and renting flats for income - anyone got experience of this?
Posted by TwinkleToes September 10, 04:26PM

Thanks to those of you who gave helpful unbiased advice, and for the PMs - it's appreciated.

Also fair enough to the people who have enough time to trawl the forum and express their opinions on 'buy to lets' but it might help if you knew our full story and intentions before expostulating! Best wishes, Mrs P Rachman

messageRe: Buy to let mortgages and renting flats for income - anyone got experience of this?
Posted by GrumpyOldGitLady September 10, 04:31PM

TwinkleToes Wrote:
-------------------------------------------------------
> Thanks to those of you who gave helpful unbiased
> advice, and for the PMs - it's appreciated.
>
> Also fair enough to the people who have enough
> time to trawl the forum and express their opinions
> on 'buy to lets' but it might help if you knew our
> full story and intentions before expostulating!
> Best wishes, Mrs P Rachman

Ha ha that's a great reply to those people lecturing on the evils of letting out a flat, Twinkle aka Mrs Rachman.
There are many other places for people to spout their opinions, in MY opinion.


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