Tag Archives: property value

Leeds Building Society BuytoLet rates cut by up to 0.7% Buy to Let News, Landlord News, Latest Articles, Property News

Low Value Buy to Let mortgagesThe Leeds Building Society has cut its BuytoLet rates buy up to 0.7% on selected products whilst keeping low fixed fees and continuing to offer products at 80% Loan to Value.

Headline rates include:

3.29% 2 year discount followed by a 3 year discount at 4.99%. (This is based on the Leeds variable rate of 5.99% minus 2.7% for 2 years and minus 1% for the next 3 years) Reverting then to the Variable rate at 5.99% for the term of the loan.Maximum LTV 70%, Completion fee £800 and booking fee £199, Tapered early repayment charges of 4% year 1 and 3% year 2 only.

4.99% 2 year fixed 80% LTV until 31/08/2015 followed by 4.99% discounted until 31/08/2018 reverting to the variable rate at 5.99% for the term of the mortgage. Completion fee £800 and booking fee £199. Tapered early repayment charges until 31/08/2015

Kim Rebecchi, Leeds Building Society Sales and Marketing Director said: “We are very pleased to support landlords and with interest rates at a historic low, we believe it’s a good time to lock into a low fixed rate for greater certainty of cash flow.”

“Our 2 Year fixed rate buy to let deal has no higher lending charge, and allows 10% capital repayments each year without penalty.”

“Landlords are faced with a plethora of mortgage products and many lenders have chosen to introduce lower rates at the expense of higher product fee. I’m delighted to be making genuine reductions that support our customers – our fees remain unchanged.”

Standard Leeds Criteria:

  • Rental stress testing at 125% interest cover on 5.99% notional rate = You can borrow 160.26 times the monthly rental
  • Min Property value £50,000 or £85,000 with a London postcode and £70,000 in the South East
  • Maximum portfolio size regardless of Lender = 4
  • Minimum income for applicants of £20,000 per annum

To search for more of the most popular BuytoLet products and Lenders including how much you can borrow please feel free to use our BuytoLet Mortgage Calulator CLICK HERE

If you require assistance on a BuytoLet purchase or remortgage please email info@property118.com or call us on 01603 489118


Low value buy to let mortgages Landlord News, Latest Articles, Property News

Low Value Buy to Let mortgagesI am absolutely amazed that in this current economic climate with the government making people down size to smaller homes or pay a “bedroomTax” and more people having to rent because they cannot afford to buy, that a buy to let landlord cannot obtain a mortgage for property valued under £40,000.

I own a Ten property portfolio great credit rating and employed status to show income, I can get £100-£150k mortgages no problem.

However at my location the most lucrative properties are one bedroom Uni Flats current market value £35 to £40K, over the past 20 years I have own over 20 of them and have just bough another for £25k cash refurbished it for £3k and have a Tenant paying £315 per month.

The question is why cant I get a Buy to Let mortgage?

Not only is the risk to the Lender minimal should the worst happen, the loss would be minimal. Lending lots of smaller amounts would mean lots more in fees and it is the sector which the government agree needs the most help i.e. homes for young people, single parents  affordable housing.

What do you think?

Are there any decent deals out there for low value buy to let mortgages?

Ray Doyle


Holiday Lets purchased using commercial finance on the increase Commercial Finance, Landlord News, Latest Articles, Property News

holidayMembers of The National Association of Commercial Finance Brokers (NACFB) have reported a steady increase in Holiday lets being purchased using commercial finance along with the number of lenders and products to support this business.

Investors and Lenders are being attracted by the higher potential income that can be generated by holiday lets in locations of strong demand, seeing this as a good income generator for investors and lowering the perceived risk to lenders’ security.

As reported recently by the Independent “the second home sector grew again last year. The rise means there are now over a quarter of a million homes across England that have been brought as holiday homes or lets.”

It is important to determine what the property is to be used for and to make the distinction between a Buy to Let (which will be let on assured short-hold tenancies) and a holiday let, which will allow the owner to use the property for holidays and to let out for short-term.

Lenders are now offering specific mortgage packages to support this growth in popularity of holiday lets, recognising the appetite of borrowers for second homes, and Brooklands commercial finance have sought out examples for us of some of the best deals and criteria currently on the market:

  • Rates from 3.65%
  • LTV’s up to 75% (100% with additional security)
  • Low arrangement fees (and free valuations in some instances)
  • Interest only available
  • Whole of mainland UK
  • Established and new holiday lets
  • Rental Stress testing at 120% of the mortgage payments
  • Minimum incomes required £20,000 for sole applicant and £30,000 for joint
  • Minimum property values £50,000
  • Maximum property values £500,000 or more with business case
  • First time investors are acceptable.

If you would like any assistance to finance a Holiday Let please email info@property118.com with your requirements and contact number and we will ask our preferred brokers Brooklands commercial finance (members of the NACFB) to assist.

Or call me on 01603 489118

 


Repossession Property in County Durham Landlord News, Latest Articles, Property For Sale, Property News

Repossession Property in County DurhamMy good friend Kelvin Kingsley has come across an opportunity to purchase a completed 3 bed Town House in County Durham from a repossession company.

Other units on the development have sold in the open market. Two comparable properties are listed on the land registry for having been sold for £120,000. The one remaining unit is being sold for just £79,995 and should return a rental yield of 9%. Continue reading Repossession Property in County Durham


Free insulation for tenanted properties Landlord News, Latest Articles, Property News

Free insulation for tenanted propertiesDid you know that landlords can now get free loft, cavity and solid wall insulation and more, especially if your tenants are in receipt of benefits?

The procedure to find out whether your properties qualify for free insulation is simple; it costs just £100 for a survey and if the works go ahead the survey fee is refunded too! Continue reading Free insulation for tenanted properties


Has your property got the U-Factor? Landlord News, Latest Articles, Property News

Has your property got the U-FactorForget streets with the X-factor, living on a street with a name beginning with the letter ‘U’  could mean your property is worth a lot more, according to new research from property website Zoopla.co.uk.

Average property prices on streets that start with a ‘U’ currently stand at £251,307 – the highest of any letter in the alphabet and £25,503 more than the current average UK property value of £225,804. Zoopla.co.uk analysed average house prices of the more than three quarters of a million streets in the UK. The most expensive street beginning with ‘U’ is Upper Phillimore Gardens where the average home is worth £5,640,496. Continue reading Has your property got the U-Factor?


The 2013 buy to let goldrush Buy to Let News, Buy to Let Property Hotspots, Commercial Finance, Landlord News, Latest Articles, Property For Sale, Property Market News, Property News, Property Sales & Sourcing, Property Sourcing, UK Property Forum for Buy to Let Landlords

The 2013 buy to let goldrushI have had a ‘gut feeling’ that the property market would turn in 2013 for at least four years, however, until now I have not been able to provide any real justification as to why I believe the 2013 buy to let gold rush will occur.

A recent comment on our forum got me thinking about this again. It said something along the lines of …

“do you think property values will rise when the governments incentives to help fund deposits for first time buyers kicks in next year? I’m seriously thinking about bringing my plans forward and buying now in advance of the next property gold rush” Continue reading The 2013 buy to let goldrush


Caught out by Lloyds three mortgages rule Cautionary Tales, Guest Articles, Landlord News, Latest Articles, Property News

Readers WarningJust in case you are not aware of Lloyds three mortgages rule here’s how it caught me out.

I bought a run down terrace house last year to refurbish and wanted to sell once complete. However, to finance a new opportunity, which came along to soon, I decided to get a buy to let mortgage with BM Solutions.

I was offered the mortgage in principal subject to valuation so I paid the valuation fee of over £400 and had the property valued. It all came back fine and I was sent a mortgage offer last week Continue reading Caught out by Lloyds three mortgages rule


Smart investors go to Oxford Buy to Let Property Hotspots, Landlord News, Latest Articles, Property News

Guest article from one of Oxford’s leading letting agents

Oxford Property InvestmentI am often asked why Oxford represents such an attractive option for buy to let property investors. 

The answer is, like much treasure, not blatantly obvious, but if you are prepared to dig a little, the clarity of the jewels you may find are particularly alluring.

The city has been home to a transient population since the Middle Ages.  The intellectual elite continue to arrive here in droves from all over the world; a stint at Oxford, either for study, research or employment adds value to any CV.  During the early years, Oxford was a walled city, nothing much has changed, the new wall is the ring road, and represents an immovable barrier to the physical growth of housing provision, which places extra-ordinary strain on the supply and demand dynamic, resulting in a permanent state of insufficient supply. Continue reading Smart investors go to Oxford


Landlords Tax Planning Strategy Landlord News, Latest Articles, Property Investment Strategies, Property News, Tax & Accountancy, Tax and Accountancy, Tax News

Landlords Tax Planning Strategy“Milking the Buy-to-Let” is a Landlords Tax Planning Strategy which is very much under utilised. The strategy applies only to married couples and Civil Partnerships and is used to offset mortgage interest against rental income, regardless of whether the amount borrowed exceeds the original purchase price and also regardless of how the proceeds of the finance are used. Continue reading Landlords Tax Planning Strategy


Property Forum and News website where UK landlords and letting agents share best practice