Where to find a BTL investor?

by Readers Question

9:58 AM, 26th September 2014
About 4 years ago

Where to find a BTL investor?

Make Text Bigger
Where to find a BTL investor?

I am new to the forum and I may even be in the wrong place, but someone out there may be able to advise me or even help me find what I am looking for. Where to find a BTL investor

My wife and I are English professionals living in France. We own our house outright. Due to a change in our particular professions, we are shifting our work focus into new avenues; this is going well, but taking time. We would like to find a buyer for our three-bedroom property which has just gone onto the market for 85,000 euros, today’s equivalent of around £67,000, to re-capitalize, but would prefer to stay in our house as renters, so we are looking for a capital investor to buy the house and rent it back to us on an agreed lease of anything from 2 to 6 years.

The other important factor is that I am nearly 63, so entitled to a full UK pension in just over two years and my wife is 58. We have been married for 36 years and are both in good health. We have no children, so there are no inheritance issues, and we are the perfect renters in loving the house and its location.

The house is in good repair, is low maintenance with minimal land and would be ideal for someone wanting a base in France in a few years’ time as a drop in and out location, without the high cost of regular servicing. Alternatively it is a good family home in an active, vibrant small village with all amenities. We are based in the quietest and safest area of central France.

The current rental of a property of this type is around 450-500 euros per month and we would be happy to pay this over whatever period is agreed, with or without options to extend the agreed period. In other words, we are extremely flexible. We would be the perfect renters, being both respectful of other people’s property and we pay our bills on time.

We have had one interested party from Wales, who was moving to France and wanted a couple of rental houses to bring in income, but sadly her UK house has suffered a structural issue, putting her plans back until Spring of 2015.

We have good knowledge of the French housing market and its challenges, so we can guide any prospective buyer/landlord through “the hoops”.

Any advice/interest would be greatly appreciated.

Thanks

Jeremy



Comments

Mark Alexander

10:02 AM, 26th September 2014
About 4 years ago

Hi Jeremy

The type of arrangement that you have described is known as "Sale and Rent Back".

In the UK the regulation from the FCA is so harsh that I am not aware of one regulated company remaining in this market. There are a few charlatans still operating but they are doing so illegally. I suspect France is no different.

The typical business model is that the investor would offer between 60% and 80% of the open market value. If you are prepared to discount your property buy that much you might as well sell it on the open market and rent elsewhere.

I understand how you have arrived at this idea but I don't think it is a good one.
.

11:04 AM, 26th September 2014
About 4 years ago

Hi Mark,

Many thanks for your answer and swift response on this. It just seemed like a good idea to us.

In our naivety, all we wanted was to re-capitalise and provide the buyer/investor with a decent rent and some respectful renters who were going to look after the property.

We have many friends, both in the UK and in France who have had horrendous experiences with renters; no payment for years, tribunals and usually for the most ridiculous reasons.

Not to be phased by your very helpful answer on what appears to my mind to be a good idea, I am trying to look at a way around this. If we were to discount the house down a bit and sold it to “a friend”, surely there is no issue or law that prevents him allowing us to rent it, after, say, a month has passed?

Again, many thanks,

Best wishes,

Jeremy.

Mark Alexander

11:23 AM, 26th September 2014
About 4 years ago

Reply to the comment left by "Jeremy Lewis" at "26/09/2014 - 11:04":

I don't know about the laws in France but that would still be a regulated activity in the UK.

My advice to you remains, I would also advise your friends not to do the deal either if they asked.

Let me share a few quick nightmare scenario's with you.

1) You sell for a discount and your landlord gets you out ASAP and sells the house for a profit.

2) You sell your house to a landlord and move out at the earliest opportunity, leaving the landlord with an empty house in another country.
.

11:43 AM, 26th September 2014
About 4 years ago

Thanks again, Mark,

Very interesting comments.

Perhaps the honesty factor is being lost here, although I don’t know of the actual French law governing any of this situation, I would have thought that it was possible to arrange a simultaneous transaction through the notaire, where the legal commitment on both parties, to rent and to be renters of the property, could be facilitated at the time of the sale.

Again, thanks for your time and your helpful advice from your UK viewpoint, I will pursue the alternatives.

Best wishes to all,

Jeremy.


Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

OR

BECOME A MEMBER

Why property is likely to remain a good investment in 2019

The Landlords Union

Become a Member, it's FREE

Our mission is to facilitate the sharing of best practice amongst UK landlords, tenants and letting agents

Learn More