Please help me with my BTL dilemma

Please help me with my BTL dilemma

8:14 AM, 15th November 2013, About 11 years ago 34

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This is my first question and will not be the last so please treat me easy.

I am trying to venture into the BTL market. We have our home (mortgaged) and saving of about 20K. I playfully pressed buttons on my bank and I got 15K transferred to my account yesterday (we both have very good credit rating).

My Brother in law has turned up recently in this country and started working in the Milton Keynes area. He cannot buy a house yet so I am thinking about buying one and renting it to him. He is OK with this and is not expecting any freebies. He plans to stay here in this country for at least 3 years so I’ve got guaranteed rental income for 3 years.

I am looking for a property around 160K, I will press some buttons for my wife to get 15k more from the bank and put it as deposit to get mortgage, and let to my brother in law. Please help me with my BTL dilemma

Thoughts and worries:-

1. we live in Bristol (2.5 hours drive for the property visits.)
2. I am scared  of losing our current home in case all goes pear shape, I dont want sleepless nights
3. mywife but she thinks the money is safe when it is in the savings

I dont want great returns but if I get some it will be great for my kids uni in 10 years time.

Can I go ahead with this.

Please advise.

Thanks

Prakash


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Comments

Mark Alexander - Founder of Property118

9:48 AM, 18th November 2013, About 11 years ago

Reply to the comment left by "Simone Gilks Adv CeMAP, CeCM" at "18/11/2013 - 09:18":

I suspect it might not be that simple Simone. They may well need to re-underwrite the deal and issue new paperwork based upon regulatory requirements. Best to get it right first time around of course but at least it is theoretically possible to convert a BTL to a regulated BTL, providing the lender you chose in the first place does regulated BTL and you also qualify for that criteria too of course.

Have you seen the new thread on Regulated BTL? - link below
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Zulfiqar Hussain

21:53 PM, 27th November 2013, About 11 years ago

Do it but don't let to a family member. There is no shortage of good tenants, use a good estate agent, check your tenant carefully, make sure you have some money backed up for voids and if urgent repairs are needed. Shake the fears and go for it, good luck.

11:42 AM, 12th December 2013, About 10 years ago

There are a few Buy to let lenders on the market that will allow you to rent to a family member. You will need to disclose this information on any application that you make or is made on your behalf.
Should you need any advice please send me a private message and I will try to allay any fears that you may have about your proposed venture into the buy to let market. Good luck to you.

Mark Alexander - Founder of Property118

11:52 AM, 12th December 2013, About 10 years ago

Reply to the comment left by "Ian The mortgage broker" at "12/12/2013 - 11:42":

Hi Ian

We don't have a private messaging function within Property118 I'm afraid. However, we do provide business sponsors with contact forms, for example see the member profiles of Howard Reuben and Simone Gilks, both of whom receive a lot of enquiries via Property118 members as a result of commenting on discussions such as this one. More details here >>> http://www.property118.com/business-sponsorship/
.

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