Councils using ‘Intelligence’ to track down low EPC properties and fine £5,00015:08 PM, 29th March 2021
About 2 weeks ago 36
I have a portfolio of 3 flats in South East London, 2 are mortgaged at 75% of their current value and let out for a good rental income and one is under renovation at present. I’m also in the process of buying a fourth flat in the same area which also needs to be refurbished.
All flats have been bought in poor condition over the last year and a half and renovated by myself to a good standard, then remortgaged to 75% of their increased value.
My problem is that once I’ve paid the 25% deposit and renovated the fourth flat I will have run out of working capital to continue buying further properties.
Option 1 is to sell the 3rd flat I’m currently working on for £310,000 (what I believe it’ll be worth) I can bank around £115K and the profit will be around £35K after all costs as purchase price was £250K – this leaves enough money to buy two further projects
Option 2 is to let it out and remortgage it in 4 months time at 75% and bank around £45K – which is not really enough to buy another flat in my area
Option 3 is to let it out and remortgage it in 4 months to 80% and bank around £60K – which is just about enough to buy another project.
The other problem I have is the 6 month wait the mortgage companies impose to refinance a property to remove the equity, which really slows things down.
I have given up my previous job to renovate property and be a landlord full time now and am only interested in buying flats I can work on myself, so they need to be close to where I live as I have children to take to school and pick up each day.
What I’m curious to know is how other investors increase the size of their portfolios without selling and if anyone can come up with a solution for me to continue without having to sell any of my flats on the way, is this possible? Oh and there’s no chance I can pull out any equity from my own house as my wife would hear non of it.
Any suggestions would be hugely appreciated,
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