Your income from your Buy to lets?

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  • #16
    This makes really interesting reading guys so keep them coming! Its interesting to see how everybody is doing!

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    • #17
      Originally posted by hech123 View Post
      I have a larger portfolio 100+ but probably cheaper properties than most as I am up North. I do very well but I can honestly say I do not know what I make per year as I am constantly re-investing, buying, paying down capital. Additionally I have a lot of partnerships and 7-8 limited companies so accounting is really not straight forward. I pay back over £6000 in capital per month off my loans and live a decent lifestyle but everything else is just invested back in.

      Profits can be unclear as for the last 2-3 years I have been doing a huge wave of improvements throughout my portfolio and trying to buy up a lot of properties which leads to more legals, loan fees, legals etc... Additionally I am currently paying £4k a month interest rate swap which I was mis-sold so I may or may not get my money back off this which would make a big diff.

      Estimates if I stopped buying and stayed still £150k-£200k per year. depending on any improvements I suppose. Would be interested to hear from anyone else
      hech123, how do you finance a portfolio this size in addition to your reinvestment? Is it all commercial or a mix of BTL mortgages and commercial? Are you with a high street bank and if so what is their current attitude to property development?

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      • #18
        Commercial finance - there attitude to any development is poor. we buy for cash, do development then finance at the end, most people do it that way

        We get the money but more an more terms and conditions each time

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        • #19
          I am a fairly new landlord. I have 4 properties.

          Rent total : £1500p/m
          Mortgage: £750

          On top of this I incur the usual fees I.e. insurance on all properties, gas safety checks per year, odd job maintenance etc.

          3 properties are all 2 bed terraced on interest only.

          One is a 2 bed semi with a repayment mortgage.

          How does this sound?!?
          Daddy Landlord

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          • #20
            Hech, If you don't mind me asking; what commercial lender do you use? We've got very little gearing at the moment and thinking about getting some type of drawdown facility for further investments etc...

            Thanks

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            • #21
              Zuby - they will prob only look at you if you move your whole portfolio. I have tried various projects, for instance I currently have a freehold flat and a large 4 bed house with no loans, I also have 3 other properties with low loans, I am considering doing these in a bulk lot but realistically you want to be lending over £500k.

              Depends on area but most banks have a property specialist and they lend on different criterias, I use Lloyds and the lending criteria is to have over £2million in loans - then you use a Director of sorts who is much better and can ALWAYS get you money more or less.

              I know Barclays in the North West have a criteria of only £500K so it all depends on how much you want. Most banks on a smaller level are really struggling this is because they would rather lend to people who really know what they are doing and have lots of security, you get about 60-65% of the value.

              Banks I know that are lending are Handlesbank(50% LTV), Barclay's and Lloyds(60-65%), Bank of China I am told. HSBC may be coming back in I am told but have had no dealings with. I am told Lloyds is the best and doing the most deals but I have been with them for many years and was lucky in that respect.

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              • #22
                I can understand what they are doing, as they only have limited capital. Who would you lend to, some guy who has no idea about refurbs/finance/renting and earns very little money or a guy who has done it for years and has probably got a massive income, lots of assetts?

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                • #23
                  I've got 7 (hopefully as of tomorrow, 8) properties, one is a HMO of 5 tenants. Profits vary from year to year. Most of the profit is reinvested which means we (2 teenage sons and I)live on next to nothing but we get by. I used to have another job (teaching) but couldn't manage both this, landlording, and being a single mum, so I gave up teaching.

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                  • #24
                    Originally posted by Berlingogirl View Post
                    I've got 7 (hopefully as of tomorrow, 8) properties, one is a HMO of 5 tenants. Profits vary from year to year. Most of the profit is reinvested which means we (2 teenage sons and I)live on next to nothing but we get by. I used to have another job (teaching) but couldn't manage both this, landlording, and being a single mum, so I gave up teaching.
                    Hi! This is interesting as I am a teacher and have three young kids. Not single but I certainly empathise with the demands of the teaching job! I would love to hear how you got to where you are now!
                    Daddy Landlord

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                    • #25
                      Hi,

                      I know a lady who has recently (since 2007), bought student HMO’s that gives enough cash flow and return to live off. Their portfolio is only 4 houses, albeit 4 that do very well :-

                      1) 6 bed HMO conversion, £155k + £5k HMO conversion costs, @£70 per person/week 85%LTV
                      2) 6 bed HMO conversion, £155k + £5k HMO conversion costs, £70 @ per person/week 75%LTV
                      3) 7 bed HMO + £5k HMO conversion costs £160k, £75 per person per week / 75%LTV
                      4) 6 bed HMO, £145k 75% LTV £65 per person/week

                      The rent excludes bills as that is upto the students and doesn’t have to worry about council tax because they are students.
                      Total yearly rent collected is ~£83,000, with a repayment mortgage costs of £32,000 leaving £51,000 gross profit on an investment of £168,000.

                      She’s done very well from it in only a few years, but due to the work load had to essentially be her full time job as it was quite time intensive during summer trying to get the houses ready.

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                      • #26
                        I have 1 BTL flat and another one on the way with low loan hopefully by month end which I bought via an auction. I am thinking of selling it off but is there capital gain tax involved?

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                        • #27
                          Originally posted by cupcakeli2717 View Post
                          I have 1 BTL flat and another one on the way with low loan hopefully by month end which I bought via an auction. I am thinking of selling it off but is there capital gain tax involved?
                          If it is worth more than about £10,000 more than you bought for, then CGT is a possibility. I worry for all these folk that have umpteen properties on interest only mortgages. If they just keep up with inflation, there will still be CGT to pay on that inflation.

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                          • #28
                            How much is the capital gain tax in percentage?

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                            • #29
                              Originally posted by cupcakeli2717 View Post
                              How much is the capital gain tax in percentage?
                              http://www.hmrc.gov.uk/rates/cgt.htm

                              But you are actually asking (but might not realise it..) what the CGT rates will be when you sell... nobody knows that ...
                              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...

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                              Latest Activity

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                              • Consent to Let from Santander
                                mefaisalus
                                I would like to ask a question regarding buy to let consent application with Santander. I have got a residential mortgage with Santander for the last two months with a 5 year fixed deal but due to unforeseen circumstances I have to relocate to a different city because of my job. I have the intention...
                                14-08-2017, 22:39 PM
                              • Reply to Consent to Let from Santander
                                Wright76
                                Apologies for late reply. No it wasn't Santander the company she is with don't do BTL or permission to let at all.

                                I have another friend though in the same predicament but their mortgage was taken over by llyods. I really don't understand why they can't be more accommodating!.
                                ...
                                21-08-2017, 22:40 PM
                              • Remortgages timing
                                BTLdoc
                                Hi, I just wanted to understand how other landlords approach remortgaging on several properties, in terms of timing?

                                So, say you have your main residence mortgage, plus another BTL mortgage (or more), where you occasionally use equity growth towards buying further properties. Do you...
                                20-08-2017, 15:58 PM
                              • Reply to Remortgages timing
                                BTLdoc
                                I was thinking along the lines of whether it's better to have everything in synch, so you could have a chain of remortgages/purchases on one day? Or to stagger them, so you get one mortgage approved under current circumstances, before expanding borrowing in a further transaction? So you may not...
                                21-08-2017, 21:37 PM
                              • Intrusive Money Laundering questions
                                JK0
                                I'm sure you've all been asked them...

                                What is the source of your funds? How much? etc etc.

                                Virgin Money recently returned my questionnaire where I replied 'rental income'.


                                What does that mean? How much did I pay for my properties? Where did I get the money...
                                17-08-2017, 10:05 AM
                              • Reply to Intrusive Money Laundering questions
                                Gordon999
                                Over 10 years ago, Erinaceous was a listed company which collapsed due to overvaluation by one of its surveyors in collusion with a borrower who had applied for mortgage .for commercial building and disappeared with 10 times the market value of the property....
                                20-08-2017, 20:50 PM
                              • Reply to Remortgages timing
                                loanarranger
                                If you are remortgaging , then timing should not become an issue , as with all mortgage offers , they remain valid for at least three months and therefore it is entirely down to you as to when , subject to legal processes being complete when you want to draw down the monies.
                                20-08-2017, 17:50 PM
                              • Reply to Remortgages timing
                                Gordon999
                                What is the advantage and disadvantage to you of remortgaging at same time or phased out at different times ?...
                                20-08-2017, 16:57 PM
                              • Reply to Intrusive Money Laundering questions
                                Kape65
                                Being not very criminal I would have to ask , How do you overstate the value of a property purchase, surely the banks check the value prior to lending.
                                19-08-2017, 16:27 PM
                              • Reply to Intrusive Money Laundering questions
                                hech123
                                If you have failed the money laundering checks then they will have to report you to the authorities so I would possibly prepare for an investigation. Apparently this is a legal requirement for everyone that fails
                                19-08-2017, 15:25 PM
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