Best way of Developing?Make Text Bigger
I have a few buy to let properties and with the help of Property 118, I have taken advice from them and will be getting them to help me incorporate my property business – Thanks very much. Will be doing this soon. However, a question to the experienced bods out there.
We are planning to purchase more properties, e.g 2 up 2 down properties close to me, but this time with a side plot, with a view to putting another 2 bedroom property next to it. Several have already been agreed, so I’m guessing should go through planning.
What is the best way of doing this with respect to the plot of land?
Someone who has done this suggested I separate the side plot by deed of title and then apply for planning that way as a separate plot.
I have figured that it would cost about £150k all in to build the property – builder/architect etc. They let for £1200/month. Value would be between £350k to £375k.
The exit strategy would be to mortgage out on the new property on a BTL basis, for around 75% LTV, on say the £350k, release £262k. Pay off the development cost and go and do it again.
I have been recommended an architect (although he’s based in Australia) and builder – obviously based here. I would be grateful for tips and pitfalls especially with respect to structuring this deal.
By way of finance, we can remortgage some funds from BTL properties we already own to potentially release the deposit for the new one.
Would also need to release around 30% of the development cost and apply for a development loan to finish off the work. We would aim to put the properties into a Limited Company for long term hold with no plans to sell.
Has anyone got any gems of advice? Pitfalls etc. I would be immensely grateful for any tips.
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