Calling BTL Pro's & Finance chaps..

[AE82GT]

Evening Gents,
My father (69) is looking to invest £500K in a portfolio - new ish, well located flats, inner M25 surrey . Will he be able to get BTL finance? and with what % ratios - Obviously at his age he is really looking at interest only to maximise income.

Any ideas / experience / options welcome .. Ideally needs to generate £3k + PCM.

Cheers,



T

[kiethton]

Has he had BTL property before?

If not I doubt that he will get the best rates (and IO) at and LTV over 60% giving a conservative £1.1m to invest after costs.

From this he could get a number of decent places, however at his age I would target slightly lower yield 'safer' investments who often require less active management and reside for longer periods (professionals). To target this demographic and to maximise returns I would target the standard Professional haunts - Richmond, Clapham, Wandsworth etc.

Remember that in these areas you will be paying £350 - 400k a 2 bed flat (ignore 1 bed's & studios IMO as it limits target renters) so 3, with each paying £1.4k-£1.7k per month (£50k-£61.2k per annum allowing for service charges) less costs of 12%-15% (management & repairs) and interest of c.£30k per annum (5% being realistic on an IO basis), so this should just about hit your targets (assuming the flat service charges are reasonable) whilst providing a good quality of stable tenant. (better then a higher number of DSS tenants in more properties anyway, although incomes when things are going well will be better)

[eldar]

AE82GT said:

Evening Gents,
My father (69) is looking to invest £500K in a portfolio - new ish, well located flats, inner M25 surrey . Will he be able to get BTL finance? and with what % ratios - Obviously at his age he is really looking at interest only to maximise income.

Any ideas / experience / options welcome .. Ideally needs to generate £3k + PCM.

Cheers,



T

Best return is on cheap properties in areas that are sub prime. Buy cheap and quick for cash, economy refurbish and let quick. Takes time to manage and a supply of good tradespeople, but a 10% nett return is achievable ignoring capital growth. Get to know local estate agents well for the quick cash hungry sales.

[Sarnie]

AE82GT said:

Evening Gents,
My father (69) is looking to invest £500K in a portfolio - new ish, well located flats, inner M25 surrey . Will he be able to get BTL finance? and with what % ratios - Obviously at his age he is really looking at interest only to maximise income.

Any ideas / experience / options welcome .. Ideally needs to generate £3k + PCM.

Cheers,



T

He will only be able to get mortgages to the age of 75.......so they will all have to be on 6 year terms.......also, if he is retired this will cause problems and most lenders have minimum salary requirements......

[Kudos]

With £500k he could buy 10 to 15 outright near me. Rental of £450 ish per month.

In the last month I've just bought properties 20 and 21....

[ben_h100]

Kudos said:

With £500k he could buy 10 to 15 outright near me. Rental of £450 ish per month.

In the last month I've just bought properties 20 and 21....

Where..?

[BoRED S2upid]

2 x £500k properties? 50% LTV on each will that generate the £3k? London isn't my area so I wouldn't know if this is possible. In my area you could buy one £500k outright and get the £3k a month that the OP wants, in London that may be harder to achieve.