Mortgages for Business specialise in Buy to Let mortgages, commercial mortgages, bridging finance, property development finance and residential mortgages at market leading rates and terms.
Steve Olejnik answers your questions about property investment.
Read the questions below and click answer to read his advice and leave your comments.
If you have any questions for our expert, please email ben.wilkie@metropolis.co.uk
Question:
I have four properties that I rent out, which are covered at an average LTV of about 70 per cent with one lender. I have the opportunity to buy a property that operates as a bedsit, with 16 individual rooms to rent and some shared facilities. The returns of rent compared to the cost of the property is much higher than that of a standard residential property, but my lender says it doesn’t provide loans for this sort of investment. What are my options?
Question:
At the moment I have one property that I rent out, but I would like to increase my portfolio. The mortgage on my investment is less than half the value of the property, so I don’t think I would have a problem remortgaging to come up with a deposit on the next one. But do you have any thoughts on the tax position if I do this – I claim back the interest on the investment mortgage, of course, but will I be able to do that if I remortgage at a higher amount? Are there any different strategies I could use?
Question:
We’ve had our house on the market for six months and there hasn’t been any real interest I know the market is tight. We have to move because of my job, so is there a way of refinancing it and then renting it out, and buying another one to live in? How would it work?
Question:
I have been fortunate to inherit a house from my late grandmother and I want to turn it into an investment property. Other properties in the road have been converted into two separate fl ats and I have spoken to builders about this. Along with some structural repairs that need doing anyway, the fi nal bill is expected to be £150-170,000. Would I be able to get a mortgage on the property to get this work done – the house at the moment is worth just under £300,000, but the work will take about six months and I would like to have some cash from the mortgage to make the payments while it’s happening?
Question:
I live in an area where a lot of properties are rented out to holidaymakers for short periods – normally between one and three weeks. A property has just come on to the market that I think would be an ideal holiday let, but I’m a bit unsure about how to fi nance it. It’s on the market for £235,000 and I have £70,000 to put down as a deposit, but I’m not sure how to calculate rental returns for when I apply for a mortgage. Are holiday homes treated differently?
Question:
I’ve had a property for several years that I have rented out to the same tenants with very few changes in the rent over the time they have lived there. They’re now moving on and I need to get in new tenants. The problem I have is that I don’t really know what rent to set there are plenty of other rental properties nearby, but none that have the same specifi cations as my property. I’ve always managed the property myself so I’m reluctant to use a letting agent. Do you have any suggestions?
Question:
I have had a property investment business for several years and I currently have 11 properties rented out. Each has a separate mortgage on it, all of them with LTVs between 50 and 65 per cent. Over the fi rst six months of 2012, all of the mortgages end their tie-in periods and come up for renewal. My question is whether it is worth remortgaging all the properties individually, or should I look to get a single loan to cover all of them? Are there any advantages to going one way or another?
Question:
I own a small shop, which has traded successfully for nine years. My landlord has offered me the opportunity to buy the freehold of the premises. The cost is £110,000 and at the moment my rent works out at about £8,000 per year, so it would appear that I will save a signifi cant amount of money if I do buy. But I believe that mortgages for shops are different to those for houses, so do you have any advice on how to go about it?
Question:
What is your view on whether to take out a fi xed or variable rate mortgage? The fi xed rate deal on my investment property comes to an end in a few weeks and I am unsure about which way to go the lender’s SVR for buy-to-let is very high so I know I can get a better deal by switching, but I’m fi nding it hard to make up my mind about what type of mortgage to get.
Question:
About a year ago, I had some problems with a tenant who wasn’t paying her rent on time and eventually left the property with a lot of damage. The lack of rent and the repairs I needed to carry out meant that I got behind with my mortgage two months at one stage, though I have since paid it all back. My buy to let mortgage has now come to the end of its deal period and I have been put on to an uncompetitive rate. I’d like to remortgage, but because of my history, I’m not sure if I can. Do I have any options?
Question:
I have a couple of properties that I already rent out successfully. Near where I live, two commercial units have come up for purchase that I would like to invest in they’re essentially small workshops, of a type that could be easily let. How do mortgages work on such properties, and would I be able to finance the purchase?
Question:
My mother has lived in a council flat for most of her life, and has the opportunity to buy it at a big discount. She’s probably going to move out soon, and in with us, regardless of whether she buys, but I think it would make a good investment. Would it be possible to get a buy to let mortgage on a right to buy property, and how would it work?
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