Seeking a BUY TO LET on very low value properties

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    Seeking a BUY TO LET on very low value properties

    Hi everyone,

    I'm finding it very difficult to find a lender who will finance my buy to let mortgages on properties which are worth less than £35K. I've been through a couple of brokers with no luck, and have tried other reseach methods to no avail.

    Does anybody have any experiance with very low value properites. I have other BTL mortgages but house values are over 100K with those so have never had this problem before.

    Thanks for any help in advance!

    #2
    Try the Clydesdale Bank and Yorkshire Bank. They both lent down to £25k a couple of years ago. Also try northern based lenders like the Newcastle BS, Leeds BS and Northern Rock.

    Comment


      #3
      Keep us updated 40k was the lowest my broker could find with VM

      How about a personal loan for £25k and put the balance down and remortgage after 6 months, assuming you have done work on the property the property may be worth at least 40k.

      Comment


        #4
        If the property was uninhabitable or with a very bad EPC rating? then their is a mortgage lender avaliable that will mortgage for the low price as long as you make it more "green". As in give it a better EPC rating and for some reason their not fond of PVC doors/windows.

        In other words, are you recycling the property? from Crap to Good?

        Comment


          #5
          Try The Post Office.

          Comment


            #6
            I received a marketing email from the RLA yesterday, plugging their "Exclusive Light Refurbishment Buy-to-Let mortgage at 5.39% (Up to 75% LTV)"

            "As a landlord, you'll appreciate that a number of mortgage companies will not lend money on a purchase where light refurbishment is required before the property is in a lettable state. We therefore wanted to make you aware of a new light refurbishment mortgage deal which is available via RLA Mortgages...."


            I'm guessing that if they are targeting folks who are buying doer-uppers, they may well be interested in lending relatively low purchase sums, so might be worth looking into? http://www.rlamortgages.co.uk

            Comment


              #7
              Try Leeds BS a broker who works for them advised me the other day they will go below 30k dependent on property.

              Comment


                #8
                What about using a company to own the properties and giving a floating charge?

                Comment


                  #9
                  No lender is likely to rely on a floating charge alone and would want a 1st legal charge AS WELL as a Fixed and Floating charge if the borrower was a new limited company.

                  Lower value properties can usually be accommodated by commercial lenders if they are part of a larger portfolio, single properties are more of a challenge.
                  CFA

                  Comment


                    #10
                    Skipton and Godiva - both minimum lending of £25k.

                    Comment


                      #11
                      Most property lenders have a minimum lend of £25k ( this used to be the old CCA limit eons ago and many stick to it) but this doesn't mean they will lend on low value properties, just that they won't entertain any loans lower than that. Godiva for example use a £75k minimum value.
                      CFA

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                        #12
                        Thanks, that's good to know.

                        Comment

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