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What a buy to let remortgage means

A buy to let remortgage is when a landlord purchases a property in order to rent it to one or more tenants. In many regions, particularly in areas where there is a higher cost of living, landlords may rent out properties to a specific number of tenants who are searching for a shared house. The landlord will determine the figure of gross rent at around 150 percent of the total cost of a month's rent for the property. Since there are numerous fees involved, such as insurance and estate management costs, the net profit is often as little as 10 percent.

Most individuals apply for financial assistance with lenders that offer Buy to Let schemes. The main drawback with this is that most lenders require a deposit of 20 percent. However, the good news is that the loans can be repaid over a period of ten, twenty or even up to forty years People are only eligible to take part in a buy to let remortgage scheme if they have a strong enough credit score and a verified income.

In order to generate a sizeable return on a buy to let remortgage plan, many landlords purchase multiple properties, provided that they have the resources to pay the deposits for each investment. They may also convert traditional living room areas of houses or flats into additional bedrooms in order to raise the total rent of the property. Some landlords who are particularly successful in the property market may expand into the commercial and business markets to enhance their portfolio further.

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