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Mike
25-01-10, 08:17 PM
Ive come across a house in ruralist wales, a detached property currently up for £57k as its in dire need some serious modernisation! (think solid fuel burner, cold water only type affair!)

Basically im looking into mortgaging the property, renovating it at my own cost an using it more as a "holiday retreat" then a permenant residence, but also looking to rent it out when im not in there.

Do Buy to Let mortages cover this kinda thing?? Or is there some clause where the named mortgage holder cannot at all live in the property merely rent/let it out to a third party only?

sulphur
25-01-10, 08:22 PM
I'm sure a buy-to-let covers you staying in it too, in the same respect people buy villas or apartments abroad. Although, I think it'd have to be declared as a secondary income? (correct me if i'm wrong)

mowgli
25-01-10, 08:23 PM
mike, is it in snowdonia???? if yes, then you'll have major planning issues.....

dunno about mortgage/rent type rules, but get the land search done before getting too far down the road, there could be some ancient legal right of way type thing to make your life hell

Mike
25-01-10, 08:23 PM
I think it'd have to be declared as a secondary income? (correct me if i'm wrong)

sh1t i didnt think of that. That will cause me trouble actually.

Mike
25-01-10, 08:27 PM
mike, is it in snowdonia???? if yes, then you'll have major planning issues.....

dunno about mortgage/rent type rules, but get the land search done before getting too far down the road, there could be some ancient legal right of way type thing to make your life hell

Yea its in Snowdonia, right in the middle of the national park (literally!) the agent thats told be about it tells me "as long as the exterior is inkeeping with the surrounding buildings" it *should* be ok. But as you say, ancient rights of way could mean rambler central every Sunday morning :(

Thankfully all the services are already in place. Internally its very er, old school, VERY infact (think toggle style light switchs & single socket in every room)

Nice one on the heads up Re: Land search.

Thankfully its not currently on the "open" market as such. So ive got some time to check this place out.

mowgli
25-01-10, 08:36 PM
mike ......agents do something called lying... the snowdonia national park official flat earth dept has caused the property values to stay low, cos they have literally bankrupted people with their demands for stuff to be in keeping....

Mike
25-01-10, 08:39 PM
mike ......agents do something called lying... the snowdonia national park official flat earth dept has caused the property values to stay low, cos they have literally bankrupted people with their demands for stuff to be in keeping....

lol the lying bit I do know, the rest I didnt though lol

Stuart
25-01-10, 08:44 PM
BTL = needs MASSIVE deposit these days

Mike
25-01-10, 08:45 PM
BTL = needs MASSIVE deposit these days

10%? 20%? Or something totally stupid like 51%?

Stuart
25-01-10, 08:48 PM
ask the simps ;)

sulphur
25-01-10, 08:49 PM
20-25% minimum as far as I know.

Mike
25-01-10, 09:03 PM
^ ah great :(

The other issue ive got is the extra income too. Im self employed & vat registered, which means more paper work amongst other things :(

General Baxter
25-01-10, 09:04 PM
£57k, **** that move back home and buy a brand new liner lol

Mike
25-01-10, 09:07 PM
£57k, **** that move back home and buy a brand new liner lol

No thanks there ugly as sin lol

sulphur
25-01-10, 09:11 PM
Only way around the extra income is if you rented it to a family member, but done the rental as cash. I know it's no good to you that way but...meh. :)

mowgli
25-01-10, 09:13 PM
just think of the views....
http://farm4.static.flickr.com/3203/3067218407_2f57d6a99b_m.jpg

https://gn7hgq.blu.livefilestore.com/y1m3DgFo1Kv46BkTkYuMPNc9EUxnGoPsjYRLAy3FIx56kCCo4r YaFuC4ZI3aJyAsJbgGOmmJYJ38dwQIv9n0jmqivMkt-jVqqZPJTf_h9sJzDOuFFG8BIDsfxg53dHnhJSRuB5CcXX58o4m 4c4zYwU9IA/0911%20Maesycwmmer%20Ramblers%2003-1024%5B2%5D.jpg

sulphur
25-01-10, 09:15 PM
^ lol

Mike
25-01-10, 09:16 PM
Only way around the extra income is if you rented it to a family member, but done the rental as cash. I know it's no good to you that way but...meh. :)

I have a legal soloution this :d

I can let it under one company name that turns over a lesser amount then my day to day trading company. Perfectly legal.

Mow, i know how to shear a sheep an ride horse;s :) I are farmer!!

mowgli
25-01-10, 09:18 PM
mike you might know how to shear a horse & ride a sheep too if you buy that cottage

sulphur
25-01-10, 09:18 PM
Still a ballache with more paperwork for another company name, does that not mean another set of tax/vat forms?

Mike
25-01-10, 09:23 PM
Still a ballache with more paperwork for another company name, does that not mean another set of tax/vat forms?

I already have a sister company sole trader name set up an running. My day to day business is a joint partnership small decorating firm with a handful of lads.

It will be a bit more paper work an slightly longer nights but could work out beneficial.

Mike
25-01-10, 09:25 PM
mike you might know how to shear a horse & ride a sheep too if you buy that cottage

LOL lol lol i learnt how to shear & ride (ooh eer) in the same area of wales actually lol its more arable/grazing fields so ive been told :confused:

sulphur
25-01-10, 09:25 PM
It will be a bit more paper work an slightly longer nights but could work out beneficial.

Indeed it would, especially if your rented income could cover the majority of your mortgage payments. Paying for itself FTW:thumb:

Mike
25-01-10, 09:31 PM
Indeed it would, especially if your rented income could cover the majority of your mortgage payments. Paying for itself FTW:thumb:

Its a possiblilty, partly why im so interested in the property. Its not the first renovation we've done (we being me & my business partner) his house was one of our first, bought for £105k now valued at £138k but owes him ITRO of £15k excluding both our labour over 18 months.

We done literally everything except the plaster work. Fully PVCu, reboarded an skimmed every room an ceiling, new staircase, re-wire, combi boiler & central heating system, 9 door cases, 12 new doors, all new arcy's an skirts & a Magnet kitchen & 3 new joists. Fully dec'd with new carpets an moved in 5 days before christmas 08.

Thankfully all his money up front tho, not mine :)

sulphur
25-01-10, 09:34 PM
How much do you think you'll have to invest into modernising this? I'm having a guess at pretty much everything you've listed on your business partners house will need doing to this one. Is it only internal works needed? How's the roof for example?

Mike
25-01-10, 09:37 PM
How much do you think you'll have to invest into modernising this? I'm having a guess at pretty much everything you've listed on your business partners house will need doing to this one. Is it only internal works needed? How's the roof for example?

At present, no idea. But the location doesnt help, lack of local sub contractors.

Its a single storey building which is handy. Two bedroom no garage.

Looks like im off for a weekend in Wales to view it. Appointment only my ass, i know exactly where it is lol

With his we called in favour left right an centre an used & abused every contact we had, an every discount (now get 70% discount with Magnet kitchens :) for example) in Wales, our trade accounts mean fcuk all as they have no stores out there really.

sulphur
25-01-10, 09:55 PM
Could you not use the discount for the materials, and do the work yourself?

Mike
25-01-10, 10:04 PM
Could you not use the discount for the materials, and do the work yourself?

Exactly what the plan is.

I dont know, we'll see what happens with it, im gonna have to buy a Sprinter now :d

Pistol Pete
25-01-10, 10:15 PM
IIRC The Simps is in the mortgage game. Have a word with him.