HELP! My 1st buy-to-let?

HELP! My 1st buy-to-let?

11:36 AM, 25th February 2014, About 9 years ago 14

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Hi all,

I really need your help with a one bedroom flat I am interested in. It is located in South East London, SE6 1NA. This may be my first buy-to-let property, and I am not really sure of how to proceed or if I should even proceed, honestly. Here are some facts about the property:

*Ground floor flat with separate kitchen
*Private block in 1997 development.
*Postcode is SE6 1NA
*Currently tenanted at £900 (mostly Housing Benefit)
*Repossession extended to March end due to successful N244
*Vendor’s agents want £135,000 OR “Reasonable offer to cover debt and cost” -no specific total debts given
*Flat is in good condition throughout
*Lease left is 80 years
*Service charge is £1043 pa
*Ground rent is £65 pa


1) Is it a good investment?
2) If Q 1 is Yes, will I have enough time to buy it via BTL mortgage (only option)?
3) How much should I offer, if Q 1 is Yes?
4) What things should I be aware of or check out?
5) What is the MAXIMUM LTV I can get?
6) What have I missed?
7) Should I abandon this property, and keep looking?

Certainly, I would have missed some information or something else, that you will spot.

I need all the advise I can get, please. HELP My 1st buy-to-let

Thank you for your help, in advance.

Many thanks


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Paul Parker

17:22 PM, 25th February 2014, About 9 years ago

It seems others thought I was a bit harsh and on reflection I possibly was (sorry Steve) but I do think it's really important anyone getting involved in BTL's gets a decent grasp of the fundamentals before they consider buying one and even before they ask questions on forums as they may not even fully understand the advice being given (although not saying that that's the case here with Steve). My personal opinion would be to run a mile from that one based on just the building, the lease and the tenant situation, especially as a first BTL. All the best anyway Steve.

Shakeel Ahmad

17:57 PM, 25th February 2014, About 9 years ago

"Forums like P118 and Property Tribes are a “hive mind” of knowledge and experience that newbies can leverage to help them avoid the pitfalls, sharks, and poor deals."

Agree, however if one is a complete novice it could be a mine field of different tangents
and a novice could be all at sea.

The service charges is a big issue. The system allows them to get away with the biggest culprit being the leasehold tribunal. The landlords have both political parties in their pocket by way of contribution to the parties.

The last "Landlord & tenant act " was an opportunity to deal with the corrupt freeholders, managing agents & their arm in arm solicitors. This opportuniuty was missed & not by chance.

Steve Elliot

11:57 AM, 26th February 2014, About 9 years ago

@Paul Parker, ouch! I know it is not personal, lol. Surely, all investments I make end and will end in high profitable yields!

Yes, I really appreciate everyone who responded. All your comments have been considered. Kind of what I would have gotten from a large family meeting -if they all had the experience you have. It was candid and unreserved. I am grateful.

Yes, I did verify the rent and met the tenants. They are a European couple.

When we bought our house, I had to explain to my wife why I stayed away from leasehold. And, I told her when we start BTL, we would also avoid leaseholds. I pondered over this, as I thought it was a good deal. But, to make sure I was not making a mistake like the freehold I missed last year, I came here (to the experts).

Needless to say, I am not pursuing this flat any more.. You have confirmed my worries and given valuable advise too.

Thank you, again.

sharon underwood

17:28 PM, 28th February 2014, About 9 years ago

My opinion for what it is worth is that HB can be very tricky & never pay what you would otherwise get, & service charges are something I personally would never go near, but you do have to start somewhere & you have started well by asking the questions you should be asking.
Good Luck

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