Getting into buy to let before 21

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

    Getting into buy to let before 21

    I've been looking at getting into letting properties as a SPV would this be possible at 19 as some lenders are picky on age as it would be under a business which i'm a director of would this make it more likely to obtain a btl mortgage. The LTV would be around 70%. If anyone could shed any light on this it would be greatly appreciated or link me to any relevant posts or information, Thanks.

    #2
    Borrowing via a Ltd Co will require a person to provide a Personal Guarantee which in itself requires that person to earn a satisfactory level of income to meet the liabilities of the company , a normal condition is being a homeowner and certainly irrespective of whether the funding is via a Ltd Co or ina Personal name for anyone under 21/25 is probably left to very niche lenders whose rates might not be beneficial.
    If you are really serious could you persuade your father to assist by becoming a majority shareholder or joint owner and whilst you too would need to also provide a PG you might make the proposition slightly more attractive to those lenders who will accept an applicant below the norm of 21/25

    Comment


      #3
      I have done some research to try and help you in your quest to become a Landlord. The following lenders indicate a preparedness to accept an applicant with a minimum age of 18;-
      Family Building Soc (BS)
      Ipswich BS
      Skipton BS
      Kent Reliance
      Furness BS
      Leeds BS
      Nat West
      Godiva ( Coventry)
      Dudley BS

      Remember each lender will have its own criteria including employment , Income , Credit Profile so before you become too enthusiastic you will need to establish eligibility before looking at terms , it is important to take note of the reversionary rate ( after the incentive rate has expired) Do they offer Further Advances or Loyalty switch products just in case the mortgage market changes .

      Hope this helps.

      Comment


        #4
        Thank you for the research with a deposit of around £40,000 on a house valued between £100,000 and £120,000 should give me a LTV of around 65-75%. With a income of £32,000 before tax it attract lenders despite being 19. My parents currently have BTL mortgages with skipton and leeds I know I will have to pay slightly higher on the interest rate however it will go off the profit where as my parents doesn't. Without having any current debt it should be straight forward, thank you for the extra research it is appreciated. My parents were under the illusion you have to be over 21 to get a BTL mortgage which is why I decided to ask on here.

        Comment


          #5
          You must be a remarkable person to be able to enjoy such an income; you clearly have your sight set on emulating your parents.
          You mention two lenders with whom your parents have BtL mortgages with, as a broker I consider them as being mid range for consideration particularly Leeds whose Reversionary rate is a trigger for remortgaging at the end of the initial incentive.There is competition amongst lenders and I feel that once you reach 21 with a positive track record the number of lenders available will benefit you going forward.

          Comment


            #6
            Do you still live at your parents if so do you have a plan to move out after one or two buy to let's?

            Comment


              #7
              I am fortunate to have a well paid job I've been saving up to buy propperty I will make sure I look around or get my parents mortgage advisor to find the best deal. I do live at home and I'm not charged any rent so my overheads are low £20 For phone bill £80 a month petrol and car insurance is £1600. The plan is to have a few buy to let before I move out. Hopefully after I have a few buy to lets ill move out, I will still be a first time buyer and take advantage of no stamp duty when I can afford a higher value propperty with my right to buy isa and cheaper mortgage rates. With my dad being a builder the plan is to buy slightly run down house add value take the equity out of the house (not all the equity) and get another a common stratergy. I am aware plans don't always go the way you expect.

              Comment

              Latest Activity

              Collapse

              • Let to rent or let to buy
                Propertygoesup
                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.
                Do...
                21-03-2019, 18:11 PM
              • Reply to Let to rent or let to buy
                Propertygoesup
                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?
                Spartanlandlord
                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?
                RobR
                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?
                PJackson
                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 ??
                mojo_scotland
                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
                Propertygoesup
                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
                loanarranger
                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
                Propertygoesup
                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
                buzzard1994
                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
              Working...
              X