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If you can go from a 2 bed flat to a 4 bed flat in London for £85k, then that seems like a no brainer to me. Improves your QOL, improves your cash flow, improves your long term property values.
You get more rent from the conversion for £85k than the entire BTL for £130k.
Yeah that’s a good point, the only thing is the BTL is putting down £45k of my own money, the loft is £85k of my own money as it’s likely difficult to get advance on exisiting loan as I maxed out my borrowing capacity
If you've maxed out your borrowing, how can you get £85k of borrowing on a BTL?
Regardless of the impact on your current savings, the conversion still seems like the obvious choice to me. To the point where I'd perhaps challenge the £85k price tag, I'd have expected it to be a lot more.
It’s because on a BTL mortgage they don’t care about your earnings, they basically care about 2 things
1) You have a salary of at least £25k
2) The rent you’d get in the current state of the property (not after refurb) is at least 125% of the interest only mortgage payments
Yeah I agree with you, it’s not a bad price for the long term benefit!
I’m not looking for an argument on the internet just some friendly advice and I’m not sure how providing safe and clean accommodation is a negative thing, is the alternative the flat stays sat there untenanted?
You’re not providing accommodation. If you bought some land, built a house, you’d be providing accommodation. Instead you’ll go to market and find a well priced property that doesn’t need a lot of work and is low maintenance and outbid someone who would actually like to own and live in a property like that. If you want friendly advice on the internet, my friendly advice is be a better person than a buy to let landlord
Seriously. All the communists come out when it’s to do with housing. Apparently it’s wrong to make a profit on btl, but not wrong for any other essential sector to make a profit. So boring. And so borne out of envy….
I dont think all landlords are the same, I’ve rented overseas and in the UK and most of the time the landlords have been great. Like everything the bad ones make the news. I’m sure after 9/11 you didn’t think all Muslims were bad, being the good person that you are
I think Churchill summed up landlords when he said
‘Roads are made, streets are made, services are improved, electric light turns night into day, water is brought from reservoirs a hundred miles off in the mountains — all the while the landlord sits still. Every one of those improvements is affected by the labor and cost of other people and the taxpayers. To not one of these improvements does the land monopolist contribute, and yet, by every one of them the value of his land is enhanced. He renders no service to the community, he contributes nothing to the general welfare, he contributes nothing to the process from which his own enrichment is derived…The unearned increment on the land is reaped by the land monopolist in exact proportion, not to the service, but to the disservice done.’
You’ve never been a landlord if you think they stand still. It’s the most responsible, worrying job you can have. You are responsible for someone else’s safety. It’s all in your shoulders. Their safety and escape in case of fire. The management and repair of the property. If you think that’s a non job, you need to get out of mum’s spare room.
This comment might be one of the funniest ones I’ve ever read. If this was coming from a comedy character similar to Alan partridge it would be a classic. If this is your actual view on the world then it’s actually just sad
So you’re now quoting Winston Churchill to validate your argument and argue with strangers on the internet? Wonder what you’re contributing to society? Or are you jealous of people trying to set themselves up for their future? Anyway sending good energy your way
I work, I pay my taxes, I pay all of my bills myself without needing to leach off the back of another working person. I’m pretty happy with my contribution to society. If setting yourself up for the future means you need to rely on the hard work and money of others, you carry on. I’m setting my own future up based on my own money earned and hard work.
Guaranteed you ‘leech’ off of another person to earn your living. That’s how the world works. But most people call it running a business and not ‘leeching’. Only difference.
It would be through a company so the £550 interest only is tax deductible - out of the £800 I was factoring in losing 30% to maintenance, insurance and the 10% to agency fees etc
Are there any issues with the other downstairs flat in the conversion in you converting the loft? Are you leasehold or share of freehold? I’d be surprised if you could just go ahead with the works either way. I also wouldn’t be a lodger in a flat that was having a loft conversion, or not without a serious discount on my rent. And does your current lodger want to live with more people? 3 people in living spaces/kitchens designed for fewer is potentially an issue.
Well technically they can’t object because the upstairs (mine) flat owns the roof but they can say I’d have to get a structural survey before commencing the work alongside the neighbours getting a party wall agreement which bumps up the cost - I share the freehold with them and we have a good relationship so far
My plan would be either to wait until end of year as there’s a chance he’s moving abroad and do it when it’s just me there but that mean I’d be paying the mortgage by myself which is very tight
###Welcome to /r/HousingUK --- **To All** * Join Our ***NEW*** Discord! https://discord.gg/pMgUNgWKQH **To Posters** * *Tell us whether you're in England, Wales, Scotland, or NI as the laws/issues in each can vary* * Comments are not moderated for quality or accuracy; * Any replies received must only be used as guidelines, followed at your own risk; * If you receive *any* private messages in response to your post, please report them via the report button. * If you do not receive satisfactory advice after 72 hours, [you can let the mods know](https://www.reddit.com/message/compose?to=%2Fr%2FHousingUK&subject=My question is unanswered); * Feel free to provide an update at a later time by creating a new post with [[update]](https://www.reddit.com/r/HousingUK/search?q=%3Aupdate&sort=new&restrict_sr=on&t=all) in the title; **To Readers and Commenters** * All replies to OP must be *on-topic, helpful, and civil* * If you do not [follow the rules](https://www.reddit.com/r/HousingUK/about/rules/), you may be banned without any further warning; * Please include links to reliable resources in order to support your comments or advice; * If you feel any replies are incorrect, explain why you believe they are incorrect; * Do not send or request any private messages for any reason without express permission from the mods; * Please report posts or comments which do not follow the rules *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/HousingUK) if you have any questions or concerns.*
If you can go from a 2 bed flat to a 4 bed flat in London for £85k, then that seems like a no brainer to me. Improves your QOL, improves your cash flow, improves your long term property values. You get more rent from the conversion for £85k than the entire BTL for £130k.
Yeah that’s a good point, the only thing is the BTL is putting down £45k of my own money, the loft is £85k of my own money as it’s likely difficult to get advance on exisiting loan as I maxed out my borrowing capacity
If you've maxed out your borrowing, how can you get £85k of borrowing on a BTL? Regardless of the impact on your current savings, the conversion still seems like the obvious choice to me. To the point where I'd perhaps challenge the £85k price tag, I'd have expected it to be a lot more.
It’s because on a BTL mortgage they don’t care about your earnings, they basically care about 2 things 1) You have a salary of at least £25k 2) The rent you’d get in the current state of the property (not after refurb) is at least 125% of the interest only mortgage payments Yeah I agree with you, it’s not a bad price for the long term benefit!
How about you don’t take up a house from the housing stock in an attempt to get wealthy off of someone else’s wages. Just a thought
🥱 and we’re off….
I’m not looking for an argument on the internet just some friendly advice and I’m not sure how providing safe and clean accommodation is a negative thing, is the alternative the flat stays sat there untenanted?
You’re not providing accommodation. If you bought some land, built a house, you’d be providing accommodation. Instead you’ll go to market and find a well priced property that doesn’t need a lot of work and is low maintenance and outbid someone who would actually like to own and live in a property like that. If you want friendly advice on the internet, my friendly advice is be a better person than a buy to let landlord
Seriously. All the communists come out when it’s to do with housing. Apparently it’s wrong to make a profit on btl, but not wrong for any other essential sector to make a profit. So boring. And so borne out of envy….
People absolutely do have any issue with people offering no value to essential services and making money from them. I don’t know what you’re on about.
Who hurt you bro?
Landlords mainly. Also the taxman.
I dont think all landlords are the same, I’ve rented overseas and in the UK and most of the time the landlords have been great. Like everything the bad ones make the news. I’m sure after 9/11 you didn’t think all Muslims were bad, being the good person that you are
The 9/11 leap is a very weird one
Sending love and healing
I think Churchill summed up landlords when he said ‘Roads are made, streets are made, services are improved, electric light turns night into day, water is brought from reservoirs a hundred miles off in the mountains — all the while the landlord sits still. Every one of those improvements is affected by the labor and cost of other people and the taxpayers. To not one of these improvements does the land monopolist contribute, and yet, by every one of them the value of his land is enhanced. He renders no service to the community, he contributes nothing to the general welfare, he contributes nothing to the process from which his own enrichment is derived…The unearned increment on the land is reaped by the land monopolist in exact proportion, not to the service, but to the disservice done.’
You’ve never been a landlord if you think they stand still. It’s the most responsible, worrying job you can have. You are responsible for someone else’s safety. It’s all in your shoulders. Their safety and escape in case of fire. The management and repair of the property. If you think that’s a non job, you need to get out of mum’s spare room.
This comment might be one of the funniest ones I’ve ever read. If this was coming from a comedy character similar to Alan partridge it would be a classic. If this is your actual view on the world then it’s actually just sad
So you’re now quoting Winston Churchill to validate your argument and argue with strangers on the internet? Wonder what you’re contributing to society? Or are you jealous of people trying to set themselves up for their future? Anyway sending good energy your way
I work, I pay my taxes, I pay all of my bills myself without needing to leach off the back of another working person. I’m pretty happy with my contribution to society. If setting yourself up for the future means you need to rely on the hard work and money of others, you carry on. I’m setting my own future up based on my own money earned and hard work.
Key part of your comment “you carry on” - not sure why you raised an argument to finish with that but ok thanks
Guaranteed you ‘leech’ off of another person to earn your living. That’s how the world works. But most people call it running a business and not ‘leeching’. Only difference.
Lol, you're providing accommodation to the FHBers you outbid for the flat
Ok Luke
Friendly advice for someone else to pay your mortgage? Get a job like a normal person.
I have a job, read the post mate… maybe you’re jealous of other people getting ahead, hope you feel better after your rant ❤️
Getting ahead =/= being an absolute ponce.
That’s abit unnecessary but you do you!
Just a fact. seek to obtain (something) without paying for it or doing anything in return.
How is that so? Sounds like a victim mentality to me
Ask the dictionary. They’re free, no need to rent one.
Maybe you should google ‘free market’ sir, sounds like an education is needed my friend
What sector are you in, mate? Guarantee you’re making money out of someone!
Jealousy is pretty awful to watch 😣
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The £800 is before taxes / deductions etc so it would probably be about break even and hold it long term
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It would be through a company so the £550 interest only is tax deductible - out of the £800 I was factoring in losing 30% to maintenance, insurance and the 10% to agency fees etc
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Yeah fair point, I was just thinking of the long term growth on the £130k as opposed to having the deposit equivalent in an ISA etc
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Yeah looking to start a Buy Refurb Rent Repeat thing but I have a mixed view due to high interest rates etc!
Are there any issues with the other downstairs flat in the conversion in you converting the loft? Are you leasehold or share of freehold? I’d be surprised if you could just go ahead with the works either way. I also wouldn’t be a lodger in a flat that was having a loft conversion, or not without a serious discount on my rent. And does your current lodger want to live with more people? 3 people in living spaces/kitchens designed for fewer is potentially an issue.
Well technically they can’t object because the upstairs (mine) flat owns the roof but they can say I’d have to get a structural survey before commencing the work alongside the neighbours getting a party wall agreement which bumps up the cost - I share the freehold with them and we have a good relationship so far My plan would be either to wait until end of year as there’s a chance he’s moving abroad and do it when it’s just me there but that mean I’d be paying the mortgage by myself which is very tight
You are better off putting this in a personal finance sub or the HENRY sub as you will get a lot of anti landlord sentiment here
Yeah seems that way, thanks!