My brother and I have started research into buying property in the UK. I’ve been told by a broker in London that to take out a BTL loan you need to have been a resident or ex-pat. I’m wondering if this is specific to a certain lender or is this some sort of Government policy? My brother has lived in the UK but I haven’t.
neo
BLT – Buy To Let and is very common in the UK.
The only problem is if you are not a resident or expat you may find getting a loan quiet difficult. The same goes for here in Australia if you are an overseas resident you are limited to 80% Max LVR and certain Government restructions through the FRIB legislation.
Try a couple of the bigger mortgage brokers someone like John Charcoal springs to mind as if anyone can get it through they can.
Lucky i still have my European Passport up my sleeve.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
New 100% Shared Equity scheme coming soon – Email us for details.Richard Taylor | Australia's leading private lender
Do either of you have any idea what a good CF+ property would go for in the UK?
Derek Guyer
http://www.landchasers.comguys
i have been based in the Uk (london) for a few years now and have seen a lot of my colleagues making some serious money on property here in london.
what does everyone think about residential property here? its bl**dy expensive thats for sure, but i have just come across a fund that is buying property in central london and they are “only” looking for £50k sterling to get in…probably the only way i will be able to get involved in the market!
they have the olympics coming up and apparently they will be spending loads of cash sorting out trnasport etc. and it seems this might be quite a good time to get involved…
any feedback would be great
john
Hi,
The UK does offer a lot of opportunity for cashflow investing and above average CG in the long term, Areas in the North of England such as Hull, Grimsby and Doncaster still offer good yield and value for money, You can pick up a 2/3 bed terrace house that rents for 400 pounds per month for about 60k, Scotland also has some great yields if you look hard enough, Areas around Glasgow are an investor hotspot at the moment.
London is extremely competitive at the moment, I have a contact over there who has bought in area’s such as Pimlico and Bayswater over the last ten years and is now a fulltime landlord. He has been saying that he cant find anything in central london for sale!! and he is in the market all day everyday, as soon as something comes on the market there is a list of people making cash offers on the spot!! 1 bed flats are going for about half a million pound in these areas!!!!
Finance for non-residents is pretty easy to arrange but you will only get 70% LTV and also slightly higher rates, i think the best is at about 5% at the moment. I know a really good broker in Glasgow if anybody needs a contact.
Good luck!!thanks for that andy
these guys with the fund are offering 10% compound interest on their fund and expect it to be higher with the olympics coming up…i have read quite a bit of press saying that over the long term the prime areas in london just keep going up and there isnt really a ceiling on it cos so many people are always looking to buy here and there isnt much available (as your contact said).
it sounds like a fairly low risk option going through this fund – i dont want to rent forever over here and it seems like quite a good way to get a foot in the door whilst i save up some deposit monies!
the fund is called the London Central Portfolio Property Fund – has anyone heard of it? presumably these guys will have a way to find properties – even with the lack of stuff around – otherwise they wouldnt be doing it!?
john
If anyone is thinking about doing letting by the room in the UK to increase the cashflow make sure that you know what the HMO (House of Multiple Occupation) rules are for that area. They were introduced to standardise what is required but every council seems to have their own set of rules instead!
Although we live just North of London we don’t invest there since it’s too hard to get CF+ properties. Most of the investors I know that have CF+ properties it’s either because they paid off alot of the mortgage (interest rates are going up here ) or because they do multi lets.
Interest rates have been going up because people are spending too much and watching the news this morning that hasn’t slowed so there may be more interest rate rises on the way here.
Remember the exchange rates as well!
Regards,
Karen
Counting down the days until we leave the UK for Oz – June 2007!
Hi All,
I am in the UK and buying property here.
London is similar to a Sydney or Melbourne in that with most capital cities cashflow positive properties are harder to find. And by same token property is expensive.
But outside of London I do not thinnk property is expensive and positive cashflow opportunities do exist, so you can apply the same principles as you would do in Australia.
Interest rates are a little more friendlier though! (for now)
And the best thing of all is that you can do deals with ‘no money down’ if you find and structure the right deal, and that is when it gets really interesting!!
Tried to find a little more about London Central Portfolio but without much luck I am afraid.
If you need any help then let me know – happy to help out in whatever way I can.
Good luck.
Peter
Have confirmed with 2 brokers that the maximum LTV (Equivalent of LVR in UK) you could achieve is 75%.
So you are a little more limited than the standard 85% an investor might expect but it can be done!
Cheers
Peter____________________________
Vision without action is a daydream. Action without vision is a nightmare.Thanks for the input guys.
i managed to get a reference on London Central Portfolio from a friend of mine who works at HSBC and they have been working for the private bank there for about 10 years…seem to be a legitimate bunch and from looking seeing some details have a good track record.
if anyone else is interested then let me know as have built up a bit of a file on them and going to give this a go.
good luck to everyone!
john
Thanks for the input guys.
i managed to get a reference on London Central Portfolio from a friend of mine who works at HSBC and they have been working for the private bank there for about 10 years…seem to be a legitimate bunch and from looking seeing some details have a good track record.
if anyone else is interested then let me know as have built up a bit of a file on them and going to give this a go.
good luck to everyone!
john
You must be logged in to reply to this topic. If you don't have an account, you can register here.
