Let To Buy Mortgages In The UK

[@Avdarmaly]

Great explanation. This is exactly what I would like to do. Not that I need to, but to change my current home to a different one. As we aren't too fuzzy where to live (current property or new one), I don't see much point doing Let to buy. Cashflow numbers at the end of the month are more or less the same as if I would simply remortgage my current house, get equity out and use to buy a BTL property. Or maybe I am missing something?

[@KevinWrightProperty]

Thanks, glad it worked for you. I cant see that you are. If you want to live in a different property, you use a Let To Buy mortgage to rent out your existng property. if you want to stay in your current property and remortgage your current property to pull out equity and then use that to buy a rental proeerty using a But To Let mortgage - both work, you just decide which suits you best.

[@ssmufc9941]

Really well explained and easy to follow! However, what are the Stamp Duty implications? Do you have to pay the higher rate on your new home? Does it differ between Let to Buy and Consent to Let?

[@KevinWrightProperty]

stamp duty is a taxation issue rather than a finance issue and my expertise over the years ahs been gained in the latter rather than the former. My understanding (check with an accountant) is that you only get exemption for the additional property 3% extra on one property - regardless of LTB or CTL?

[@ssmufc9941]

@@KevinWrightProperty appreciate that, I’ll speak to an accountant (still at the ‘considering my options’ stage).

[@KevinWrightProperty]

@@ssmufc9941 - welcome

[@Andrea-sl3ey]

Did a let-to-buy last year and it was definitely “tricky” to use a Kevin phrase. My home was unencumbered and I had done significant improvement works. It was very difficult to get the mortgage valuation I needed (as the house had not been sold on the open market) and the rental valuation too (as again, at that point, it had not been rented out as I was living there until I moved). This was a 5-bed, 4 bath house in a rural county, so not a typical BTL (or LTB) scenario, so it’s likely that the problems I encountered would not have occurred if I had been living in a 3-bed semi in a city. I’m glad I persevered but it was without doubt my most difficult mortgage process to-date.

[@KevinWrightProperty]

Thanks for sharing your experience Andrea. Valuations of both capital value and rental income can certainly be tricky and the lenders valuer's opinion is the one that counts. Good that you managed to work your way through it.

[@iang2868]

Hi Kevin I’ve just come across your video and This information was great as this is what I want to do . Could you please do a more in-depth video on the Let to buy also would I need a larger deposit Thanks

[@KevinWrightProperty]

Thanks for your comment Ian. A let to buy mortgage is at 75% loan to value, so you can only borrow 75% of the current value of your present main residence. Rather than do a more in depth video, how about you engage with our brokerage and we can personalise what is possible for you? my email is in the about tab on the home page here.

[@jiteshkhatri20]

Hi Kevin… Thanks for the information around this scenario. i did not know LTB before watching yours. I get that the deposit for my existing property, the one which will soon be LTB, should be 25% of the prop valuation. Could you also comment what will be the minimum deposit most of the lenders will ask for my new property which will be my primary residence. Cheers Jai

[@KevinWrightProperty]

Glad to be able to increase your knowledge Jai. For a new main residence, you may find a lender that will accept a 5% deposit, not many will to be honest - 10% is far more common.

[@jiteshkhatri20]

@@KevinWrightProperty Thank you Kevin. I will be in touch with you in near future to explore some options on these lines. Cheers.

[@KevinWrightProperty]

@@jiteshkhatri20 ready when you are Jai

[@Daniel-be7mu]

Hi Kevin, great video as always 👍 Quick question….. Is it possible to buy your new property using a bridge, refurb it/add value then remortgage it using the let to buy?

[@KevinWrightProperty]

Glad you enjoyed it Daniel. The answer is no, it is not possible to do that. Let to buy is specifically refinancing a property that you have been living in as your main residence for a period of time. Clearly using a bridge to purchase it and then refurbing it, would not meet that definition. You would use a normal buy to let mortgage to refinance, rather than a let to buy. I explain the difference between the two types in this video.

[@ANHUY2311]

Hi. How long do i need to live in 1st residential property before i can buy other property to move? Thank you

[@KevinWrightProperty]

varies lenders to lender but 6 months minimum is common. This issue can be your original intention, if you never isntende to live in a property you claimed was your main residence and bought it with the specific intention to rent it out as soon as you could, lenrs would have an issue with that.