10:51 AM, 20th January 2014, About 12 years ago 15
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I’m currently looking at a bungalow marketed by an estate agent which is a repossession. I expect it to sell for 75k, but it will require approx 5k in refurb costs and I estimate the value on completion of the refurb to be 105k with monthly rent in area of £500 pcm. I would also like to keep the property on completion to add to my portfolio.
I assume that standard Buy to Let mortgages may be difficult to obtain given its current condition (requires kitchen , bathroom , windows replacing and decorating ) so options would be a light refurb buy to Let mortgage or Bridging finance and remortgaging after.
I’ve looked at some refurb mortgages but the min criteria for property values seem to be 100k so that market seems limited and I’ve assumed if I go down the Bridging route I will need to keep Bridge for approx 6 months before remortgaging to take into account hopefully increased property value.
I’m also mindful that if I was to purchase this transaction would need to go through quickly otherwise I would loose it. Any ideas on Mortgage or Bridging options would be greatly appreciated .
The other two buy to Let properties I own are mortgaged and I have excellent credit rating and I’m in salaried occupation with good salary .
Many thanks
Paul
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Member Since January 1970 - Comments: 9
13:47 PM, 21st January 2014, About 12 years ago
Sue you are being pedantic, the poster says he ‘assumes’
various factors. Surely it is worth pointing out the assumptions
may be wrong. Also I did not read John’s
reply as suggesting you are not a professional Landlord.
His comment however is not without merit in relation
to BTL as a whole, thete are many landlords
just as he describes. For my part I am a tenant
myself and own/rent out 45 properties so
I have some experience from both sides of the
fence…
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Member Since January 1970 - Comments: 9
15:50 PM, 21st January 2014, About 12 years ago
Reply to the comment left by “Mark Alexander” at “20/01/2014 – 12:17“:
Yes Mark about the same prices in Kent. I did a house
In Accrington (North) for around 20% less and
In Hampshire roughly 10% more.
John
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Member Since September 2013 - Comments: 126
23:12 PM, 23rd January 2014, About 12 years ago
With regard to renovation costs. I do most of the work myself and will work with my sparky when doing the electrics. In Nov i finished a 3 1/2mth refurb. This is what i did
Full rewire
Large redesign job in the kitchen. Moved the main supporting wall 30cm into the lounge so giving more space for the kitchen area. Moved the bathroom next door to the kitchen into an unused “corridor” space upstairs. Toilet was retained next to kitchen.
Full new kitchen
New bathroom upstairs (includes new rad plus all piping for the hot and cold to be taken upstairs)
New flooring in kitchen, bathroom and lounge
3 new double glazed windows
Connected up to the sewer in the front garden as new bathroom now at front of house
New indian paved patio, plus walling, plus clean out of large grass area. Planted a lot of new shrubs back and front.
Sourced and fitted back and front new doors. Fitted 5 new internal doors
Total cost £7k, Leeds
I am now working on my next property and have just taken down the dividing wall between the kitchen and dining room. My costs for the steel, hiring props, sand and cement is about £230. Building notice is £180. If you get a builder in to do this sort of work they will prob charge £600 for labour. So you can save a lot my doing the work yourself.
Jeremy Smith
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Member Since July 2013 - Comments: 282 - Articles: 2
1:23 AM, 24th January 2014, About 12 years ago
Reply to the comment left by “john ” at “23/01/2014 – 23:12“:
That’s where I am as well John, I do all the work myself, just paying for the materials, I am the sparky as well !
But if you are in the ‘mark.property118’ bracket, you will not be doing it yourself and have to budget for builders/contractors to do it for you, which, depending upon the area, as you point out, will cost you something, and maybe alot in some areas.
– No dis-respect to Mark… you have progressed FAR beyond that point and have far too many properties to even consider doing any work yourself….
…and, like me, you have got to that age(!!) where you really don’t want to be bashing houses around if you really don’t have to !! – except I still do!, I didn’t go hammer and tongs buying property when it was on the up-and-up – – my mistake !!
John
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Member Since September 2013 - Comments: 126
8:01 AM, 24th January 2014, About 12 years ago
Reply to the comment left by “Jeremy Smith” at “24/01/2014 – 01:23“:
Yep must be definitely harder as you get more houses. I have noticed the work load up a lot since i passed the double figure mark last year. When working on renovation and having to sort out runner tenants or changeovers, it can get on top of you.