Raising a deposit for a buy to let

by Readers Question

18:55 PM, 15th February 2015
About 4 years ago

Raising a deposit for a buy to let

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Raising a deposit for a buy to let

I own a house worth £320,000 with no mortgage or loans. Raising a deposit for a buy to let

I want to buy a ‘buy-to-let’ property for £180,000

1: Can I get a’ buy to let’ mortgage at my age (69) without declaring my income? I understand that providing I can demonstrate that the rent will easily cover the mortgage and running costs, there should be no need to do so.

2: How long could the mortgage period be? Does my age matter in this?

3: Is it possible for me to be able to raise the necessary deposit for the ‘buy to let’ by taking out a small mortgage on my house? say £60k?

Any help or advice you could give me would be very much appreciated.

Many thanks in advance in hopeful anticipation!

Regards

Jeremy



Comments

Mark Alexander

19:03 PM, 15th February 2015
About 4 years ago

Hi Jeremy

It seems to me that you want to borrow 100% of the value of a BTL property. Whether or not that is doable is one thing, whether it makes sense to do this at the age of 69 is another matter completely.

Chances are, the costs of funding when added to all other costs such as maintenance, letting, management, insurance, rental voids etc. etc. etc are likely to exceed your rental income, hence creating losses.

If you were 25 years younger and had a good personal income I could see the sense in speculating on the property market, i.e. considering the prospects for capital appreciation and rental profits to fund your retirement in a few decades time. However, you have already reached that age.

If you can't prove your income then I have to ask you what you hope to achieve by purchasing an investment property at this stage in your life?

If you are looking to use the equity in your home to provide you with an income then you might want to consider lifetime mortgages instead.
.

Richard Williams

14:42 PM, 16th February 2015
About 4 years ago

Hi Jeremy, the short answer is yes you can and we have undertaken this process for a number of clients recently....some older than you. Im happy to have a conversation with you if you want to contact me.

Without knowing all your details its difficult to put a proposal together but if you want to contact me I'm happy to discuss the details.

Jeremy Fraser

16:17 PM, 16th February 2015
About 4 years ago

After a subsequent conversation with Mark I wanted to record the fact that he has been extremely helpful in pointing me in the right direction to overcome my situation. He very kindly came back to me within less than 12 hours and his advice and encouragement was comprehensive, very reassuring and totally professional. I cannot praise him highly enough and send him my heartfelt thanks. What an amazing and invaluable site this is!

John Constant

16:38 PM, 16th February 2015
About 4 years ago

Hello Jeremy, getting BTL mortgage will not be the problem here. A BTL mortgage can be obtained at your age, and whatsmore, some lenders have no maximum age!

However, if you are going to take a mortgage on your residential property, it will be a regulated mortgage. In almost all circumstances now, that means a Repayment mortgage. The majority of regulated lenders have an upper age limit of 70 or 75 years of age, so you will struggle to repay a £60,000 mortgage over a period of 5 years. So, it would effectively wipe out all of the gains that you could potentially make.

Mark Alexander

18:33 PM, 16th February 2015
About 4 years ago

Having now spoken to Jeremy offline I realise that all is not quite as it appears John. He is actually enquiring on behalf of a friend who is getting divorced. Jeremy is going to call Howard Reuben to discuss his friends circumstances in more detail. Short synopsis: The home has a commercial element attached. I've suggested splitting title. Friend wants to buy a property to rent to his ex-wife (regulated? - I think possibly not but a grey area). Friend is willing to consider equity release against his own home to fund the deposit on the BTL. That could work if the title could be split to separate the residential element of the property from the commercial. Age and LYV are very much on his side for a lifetime mortgage, equity release or home reversion type product and income is then unlikely to be an issue too.

Note for Jeremy - John is one of Howard's Consultants.

brian clement

0:33 AM, 17th February 2015
About 4 years ago

you say Jeremy will have no problem obtaining a btl mortgage. I have many btl properties. all my income is from btl rents. since 2007 no bank / building society will lend me a penny. ( oh - nationwide would lend me £10,000 at 28% ). btl income is no longer accepted for a btl mortgage. where are these mortgages. I couldn't even raise money on my own mortgage free house.

Richard Williams

8:24 AM, 17th February 2015
About 4 years ago

Reply to the comment left by "brian clement" at "17/02/2015 - 00:33":

Hi Brian, there are a lot of ways you can raise the finance and there are lenders who will work purely on btl income. I don't know where you've got your information from to date but if you look at my profile and contact me I'm more than happy to at least have a conversation on where we can help.

Mark Alexander

8:30 AM, 17th February 2015
About 4 years ago

Reply to the comment left by "brian clement" at "17/02/2015 - 00:33":

Hi Brian

I recommend that you obtain a copy of your credit file to see whether there are any adverse entiries. The only other reason I can think of that could be holding you back is your LTV.

If neither of these are issues then you are simply looking in the wrong place.

Have a chat with a few of our NACFB broker members - see links below:-

Howard Reuben - http://www.property118.com/member/?id=314

Mark Edwards - http://www.property118.com/member/?id=3042

Malcolm Jones - http://www.property118.com/member/?id=3353

Adam Hosker - http://www.property118.com/member/?id=1024
.


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