Buy to Let - find a mortgage with a Regulated Tenant? (commercial/resi use property!

  • Filter
  • Time
  • Show
Clear All
new posts

    Buy to Let - find a mortgage with a Regulated Tenant? (commercial/resi use property!

    Hey I have read on this forum.. that it is virtually impossible to get this (however, most of the posts are a couple of years old)

    So just wondering if anyone has ever managed to get it done?

    Its a Mix Used Property (shop with a flat above) - Shops Rented out - great lease etc..
    The Flat is occupied by Regulated Tenant.

    Looking to raise a buy to let on it..

    Anyone know anyone that might be able to help?

    How much is the weekly rent paid by tenant ?


      £210 per week..

      Why would that be important?


        That's sounding high for a regulated flat. £910/month.

        Or is that total rent whole building?
        I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...


          Mr Breaker, I have researched what options might be available where the tenant in the residential element is classified as a Regulated Tenant, unfortunately the only class of Regulated Buy to Lets which are acceptable to a minority of lenders are those where the property is Let to a member of the immediate family and indeed where an AST is in place and the borrowers have a specific minimum level of earned income excluding any surplus rental income.

          I am sure that there may be a lender of sort who would lend but the loan to value would be very conservative and at a price which would perhaps not be acceptable to you. Even though Commercial/ Buy to Lets are Unregulated any broker would find it difficult to make a written recommendation. Have you considered Peer to Peer Lending where there may be investors who have an appetite for higher risk and slightly different propositions.


            Thanks guys,


            I haven't considered that.. (unless bridge finance is also the same as peer to peer - in which case this was going to be my next thought process) -so i am not adverse to peer to peer (i don't know exactly how it works).. At the end of the day, the circumstances surrounding the tenant lead me to believe they will be out within 12-24 months. So any term finance i would incur a fee when getting re-financed.

            The ArtfulDodger:
            It is a high rental income as the property is in central london (5 Bedroom Flat) (worth £2500 a month!)

            The situation is:
            Property Worth £800,000 (Due to regulated Tenant - Otherwise £1.2m)
            Rental Income:
            £24,000 Commercial
            £9,750 Residential

            I really need to release around £500,000 from the property.

            I plan to redevelop as soon as the Tenant is out (we are going to try and negotiate - 90 year old - has to climb 3 sets of stairs!) - but don't want to put pressure so allowing for a 12 month-24 month transition.. (the sooner the better)

            Any Thoughts?


              Bridging Finance is entirely different to Peer to Peer funding. The former is a facility secured against a property where the interest can be rolled up or paid on a Monthly basis but where the capital sum plus any accrued interest is repaid within a specific period , possibly 6/12/18 months. It is not a cheap affair particularly if the interest is being rolled up.
              Peer to Peer borrowing is based again on a First Charge basis where the borrower is matched with one or more potential nvestors who place their funds via the P2P organisation. The proposition and the length of time the money is required and is assessed by the P2P before being marketed to its members. They in turn may bid x% of the monies required with a return being promised of y%.

              If you google P2P or Peer to Peer Funding you will come across a number including Funding Circle which recently came to market with a floatation but suffered a loss of premium to shareholders.


                Originally posted by Mrbreaker View Post
                Any Thoughts?
                Make sure none of the tenant's family move in to live with them.

                You need a specialist funder (someone like a private bank) who can build you a unique deal.
                BTL lenders hate properties over shops (even though this sounds a bit posher than a flat over a bookies), and bridge loans are bloody expensive when you can't be sure of the end date.
                They tend to have a lovely ratchet effect over time - and the lender might end up with the property for cheap.
                When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).


                  Ahh thanks,

                  Ill have a lookinto this..


                  Latest Activity


                  • Let to rent or let to buy
                    I've got my only property let out as follows:
                    value 215k mortgage 150k
                    Rent 9k mortgage 4k
                    Mortgage 2.69%
                    I don't own a residence as still at family home.
                    Confused about next move. I've got 75k cash available and borrowing for another mortgage around 140-150k.
                    21-03-2019, 18:11 PM
                  • Reply to Let to rent or let to buy
                    I guess if I look at it that I own one property at the moment regardless of whether it's let out or not. Then what decision to take from there.
                    buy second property and be leveraged 75% on each plus paying 3% sdlt.
                    or paying off more of property one and having the surplus to invest in other...
                    22-03-2019, 15:15 PM
                  • Bungalow for a buy to let?
                    We have 6 buy to lets but was wondering if anybody has any thoughts about the desirability of a bungalow as a buy to let? I know that bungalows carry a premium so the yield might not be so good but wondered if anybody had opted for a bungalow and for what reasons? Thanks.
                    01-03-2019, 19:51 PM
                  • Reply to Bungalow for a buy to let?
                    All of my rentals are Bungalows.
                    My tenants vary from young couples to elderly retired and I have never struggled to find suitable tenants. The reason I like bungalows:
                    1. Easier to work on for Maintenance purposes.
                    2. They don't make them anymore.
                    3. Suit a wider range of...
                    22-03-2019, 14:37 PM
                  • Reply to Bungalow for a buy to let?
                    Just a rough estimate.
                    10% for repairs, 12% for management, 10% for voids
                    750 rent, 350 mortgage
                    (750-350)*12 = 4800 *.9 *.88 *.9 = 3,421 = ~7.6% of 45,000
                    22-03-2019, 14:18 PM
                  • Remortgage Now ??
                    Hi, one of my properties fixed rate expires in August.

                    I am within my 6 months till remortgage. Would you consider getting an agreement tied down now in advance, with Brexit occuring in May ?

                    Personally i dont think rates will go any lower - possibly upwards after Brexit ...
                    22-03-2019, 14:04 PM
                  • Reply to Let to rent or let to buy
                    Thank you kind sir I just have a short memory I think....
                    21-03-2019, 19:50 PM
                  • Reply to Let to rent or let to buy
                    Propertygoesup , I don't wish to appear rude but haven't we already explored your question on previous occasions with many of us making what I think was constructive suggestions, I fear that others may be disinclined to respond to a repetitive question. Sorry to say this but I just wonder why.
                    21-03-2019, 19:49 PM
                  • Which property to buy
                    When buying property either to rent out do you have any no no's or must haves?
                    eg some people avoid studio flats or flats in general due to being leasehold.
                    In my area however you cant get any decent houses below 250k. My budget currently is 230k so I am just finding flats. I can get a...
                    31-01-2019, 11:06 AM
                  • Reply to Which property to buy
                    As you mentioned living in it - buy a property bigger than you need, rent a room. Potentially £7.5k tax free....
                    21-03-2019, 10:49 AM