Recommendations for next BTL investment?

by Readers Question

10:14 AM, 9th November 2014
About 5 years ago

Recommendations for next BTL investment?

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Recommendations for next BTL investment?

I have up to £300K to invest in BTL, and would welcome all suggestions for where the best location and what type of property would be for me to invest. Recommendations for next BTL investment?

Given problems I’ve had (continue to have) with purpose built new blocks, rip-off freeholders and agents, service charges, etc… I would prefer to avoid leasehold and high service charge commitments.

Also, should I use all cash or look to mortgage and buy more.

Regards

Lou Valdini



Comments

Mark Alexander

16:32 PM, 16th November 2014
About 5 years ago

Reply to the comment left by "Smiles On Sea" at "16/11/2014 - 15:45":

The origins of BTL equity finance are capital appreciation mortgages which pre-date the existence of BTL mortgages which only came about in 1996.

It could be argued that the Castle Trust products are in their infancy but different varieties have been around in the residential market for a few years now and are quite established. The BTL version of the product were launched in 2013 and literally thousands of deals have been completed on a 2nd charge basis over the first mortgages with the lenders listed on my linked articles.

The first lender to launch a trial product for new purchases alongside Castle Trust are Mortgage Trust, a wholly owned subsidiary of Paragon Mortgages.

I trust that answers your questions?
.

Smiles On Sea

0:38 AM, 17th November 2014
About 5 years ago

Reply to the comment left by "Mark Alexander" at "16/11/2014 - 16:32":

So, these thousands of deals completed, what shape are they in general? For example does one have to get the mortgage and the equity finance in parallel? or can one complete the purchase first (65% mortgage + deposit) and then get the 20% equity finance?

Mark Alexander

8:18 AM, 17th November 2014
About 5 years ago

Reply to the comment left by "Smiles On Sea" at "17/11/2014 - 00:38":

Property owned for a few years, more finance required to fund deposits, refinance possible but at poorer rates generally and large fees. This typical scenario makes equity finance very attractive and probably makes up more than half of all business completed to date.
.

LVW4

11:05 AM, 17th November 2014
About 5 years ago

Reply to the comment left by "Jonathan Clarke" at "13/11/2014 - 17:59":

Pretty much what I plan to do. I started thinking of buying 2 properties for cash, but that makes little sense, so have decided to go for it.

My next challenge is putting the financing in place, engaging the right solicitor who understands this stuff really well and is both flexible and cost-effective, and then finding the right properties ...all while I have a day job!

Jonathan Clarke

11:44 AM, 17th November 2014
About 5 years ago

Reply to the comment left by "Lou Valdini" at "17/11/2014 - 11:05":

That`s the spirit. Its tough yes to squeeze in everything yourself alongside a day job but well worth the extra effort initially to create passive income. That`s what I did and then the profits enabled me to go part time after 6 years then bought some more which meant I could give up the day job in 2011. I now help others to build portfolios

My solicitor is my bro in law. He could help you. Hes got his own solicitors firm and his own property portfolio ( after I encouraged him to build one! ) He knows his stuff inside out so feel free to contact him at http://www.tqpropertylawyers.com ask for Iain Tenquist .
.

Smiles On Sea

15:05 PM, 18th November 2014
About 5 years ago

Reply to the comment left by "Mark Alexander" at "16/11/2014 - 16:32":

Just enquired with Mortgage Trust, they say they don't have any purchase product that allow equity finance. It seems this 65+20+15 model you advocate is not really feasible as of now

Mark Alexander

15:44 PM, 18th November 2014
About 5 years ago

Reply to the comment left by "Smiles On Sea" at "18/11/2014 - 15:05":

I can categorically assure you that Mortgage Trust do have such a product but that is is not available direct because is it a pilot scheme offered through a very limited panel of highly trained brokers, hence our offer.

PS - Just in case you are wondering how and why I am privvy to this information, the MD of Paragon Mortgages has been a personal friend of mine for over a decade and I have worked with Paul Howard, the MD of Castle Trust for even longer than that.
.

Smiles On Sea

15:55 PM, 18th November 2014
About 5 years ago

Reply to the comment left by "Mark Alexander" at "18/11/2014 - 15:44":

Hence our offer? What offer?

Mark Alexander

16:12 PM, 18th November 2014
About 5 years ago

Reply to the comment left by "Smiles On Sea" at "18/11/2014 - 15:55":

The one on the articles I gave you links to and which you said you had read, the bottom of this linked article for instance >>> http://www.property118.com/85-percent-ltv-buy-to-let/69350/
.

Smiles On Sea

16:19 PM, 18th November 2014
About 5 years ago

Reply to the comment left by "Mark Alexander" at "18/11/2014 - 16:12":

So the offer is that I should first give £200 to you?

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