There’s a lot to be said for buying a rundown property that needs some work doing to it when we are out looking for our buy to lets.
The chance to use the state of disrepair to negotiate an even better price.
And the chance to add some value.
The problem is, though, that most buy to let lenders don’t want your property to need too much work doing to it.
If it needs too much work, they won’t give you a buy to let mortgage.
Frustratingly each bank has its own criteria and there’s no agreed definition of how to define “too much work”.
So banks talk about the property being on not being “lettable”.
Or about being or not being “habitable”.
Some banks will accept a property needs what we may consider to be a major refurb and still give you a loan.
Others won’t lend unless it’s pristine.
There are two ways out of this lottery.
First, use a good mortgage broker.
Second, use a bespoke product which allows you to buy a rundown property and finance it, eventually ending up on a buy to let mortgage.
Very often this is a bridge which is coupled with the buy to let in a single product, or as two separate products in a single application.
And it’s very convenient.
In this video I am going to show you the Bridge to Let product offered by Precise.
This is a great product but, and there’s often a but, the property needs to be valued at at least £100k outside London, or £250k inside in London.
So this won’t work for everyone.
If you are buying cheaper properties, don’t worry, in my next video I’ll show you a different combo provided by a different lender, who require only a substantially lower valuation.
Here’s to Successful Property Investing.
(ex) Chartered Surveyor, author and property investor
By the way, I’ve rewritten and updated my best-selling e-book, The Successful Property Investor’s Strategy Workshop, which is an account of how I put together my multi-property portfolio, starting from scratch and with no money of my own, and how you can do the same.
For more details please go to: