Fair Rents (Scotland) Bill or Artificial state manipulation of free market rent?10:34 AM, 6th November 2020
About 4 weeks ago 36
Hi there, I’m Chris from Benfleet, Essex. I’m relatively new to property investing and am seeking some advice if anyone out there can advise me.
I have 3 BTL properties and 1 mixed commercial/residential property (a 2 bed flat and a shop below). I currently have this property on a repayment commercial mortgage.
I tried to change this to a BTL mortgage so I could get a lower rate than a commercial mortgage but as the property is part commercial I cannot do this.
I’m currently talking to the lender and they have just agreed to let me remortgage onto a BTL mortgage and at the same time split the title of the property into 2 separate properties.
I would then have no mortgage on the shop and a BTL mortgage on the flat so 1) I can get a lower mortgage rate and 2) It makes it easy if I decide to sell either property.
I was thinking of putting the flat on a new 125yr lease but my question is; am I best to also put the shop on a 125yr lease and have the freehold ground rent as a separate thing or am I best to just have the shop with the freehold or am I totally missing something else here that could work better?
Any advice/tips would be much appreciated.
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