Expanding my BTL portfolio – thoughts please?
I am currently living and renting in Cambridge. 
I have a flat in Scotland with no mortgage valued at around £65k, rental is £480 pcm and I have £50k of savings.
I cannot afford to buy a place in Cambridge as my income is only £21k from my job, so I was thinking to get a buy to let mortgage on my flat, raise around £50k and then purchase a few more buy to let flats, possibly in Scotland, and I can use the same letting agency.
I would like some advice if this is the best way to do this and if there are any other ways?
I would ideally like to use my cash to make myself more comfortable in retirement, I am 35 at the moment.
Any advise would be grateful
Thanks
Stephen
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Would you ask freeholders permission if you were me?
Member Since January 2011 - Comments: 12209 - Articles: 1408
9:47 AM, 15th December 2014, About 11 years ago
Hi Stephen
Your plan sounds like a good one to me.
Your rental yield is 8.86% based on the figures you have provided so if you can buy more of the same that’s good.
Please have a read of my property investment strategy as that may also help to develop yours further too. See >>> https://www.property118.com/how-to-become-a-respected-profitable-landlord/60765/
.
Member Since June 2013 - Comments: 381 - Articles: 61
2:33 PM, 15th December 2014, About 11 years ago
Hi Stephen
Your BTL mortgage strategy will require working with a professional Mortgage Adviser who knows the Scottish mortgage market. There are far fewer lenders in Scotland than there are in England and Wales and of course the conveyancing system is different too.
Our team can assist you here. Stephen Pears (https://www.property118.com/member/?id=1391) of H D Consultants’ carries out the vast majority of his work in Scotland and has done for the past 10 years he has worked at our Firm.
Hope this helps.
Howard
Member Since September 2016 - Comments: 2533 - Articles: 73
6:32 PM, 15th December 2014, About 11 years ago
I think it’s a good plan too. It’s kind of the way I started in the business. When I started we mostly put down 15% deposits and got mortgages for the 85%. So you’ll need to know what proportions you will be allowed to borrow without paying stupid interest rates. If for example, you needed to put down a £15,000 deposit on each flat and you have £50,000 in savings, I wouldn’t buy more than two flats, as you need to keep money in reserve for initial works, maintenance, fees, insurance etc. I would start in a gradual way like that as it’s less stressful if you know you’re covered financially. All the best.
Member Since June 2013 - Comments: 585
7:40 PM, 15th December 2014, About 11 years ago
Seems like a good plan to me. Stick with what you know if you are comfortable with the existing set up you have in place. Each unit is a mini business in its own right. When you get the right formula for one just replicate it until you reach your target financial goal
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Member Since July 2013 - Comments: 303
9:41 PM, 15th December 2014, About 11 years ago
It is a sound plan. You however need to buy in a tried & tested area to ensure that you get the right kind of tenants.
Member Since December 2014 - Comments: 1
4:21 PM, 16th December 2014, About 11 years ago
Reply to the comment left by “Rosalind ” at “15/12/2014 – 18:32“:
From a mature investor… I agree with every word that ‘Rosalind’ has said.. Do it gradually, but it does not have to be in Scotland. You can get very good returns in the North East of England , Yorkshire, and there are many good (essential) agents who will look after the portfolio. Always allow at least 15% deposit nowadays, and NEVER run out of working capitol.
Member Since October 2014 - Comments: 4
3:21 PM, 17th December 2014, About 11 years ago
Stephen,
May I ask where in Scotland you hold this property? I’m considering getting into the Scottish market myself, and what you’ve presented shows a good return on capital.
Regards,
Marius