Jump to content
jamespreen

30 days to let BTL property after completion?

Recommended Posts

Hi there,

I’m in the process of buying my first BTL property. I plan to do a bit of work to the property (new kitchen, bathroom, decoration, etc.) before letting it which should take about 2 months. However my mortgage broker has mentioned that the BTL mortgage lender states that the property must be let within 30 days of completion. He said that this is a fairly typical condition for a BTL mortgage. Is this something anyone else has come across? Is it something that’s actually going to be enforced?

Thanks in advance for any help.

James

Share this post


Link to post
Share on other sites

Sounds like your broker has put you into the wrong product there really. This sounds like a light refurb, which would normally allow you some time to carry out such works.

You could try and chance it or you could speak to your broker to ask if the condition could be relaxed slightly.

Share this post


Link to post
Share on other sites

Thanks for your message. I think he was trying to avoid going down the light refurb route as the interest rates would not be as good.

Are there many BTL mortgages that allow for light refurbishment? I thought if the property needs work I’d have to get a bridging loan and then flip it onto a BTL mortgage after 6 months which I’d rather not do due to the amount of fees I’d end up paying.

Share this post


Link to post
Share on other sites

Does he mean it must be advertised for let, rather than actually let? The latter is completely out of your hands and could easily not happen even if you put it on the market the day it completes. If the former, could you get it to a state where you could be marketing it as available in a few weeks?

Share this post


Link to post
Share on other sites
On 4/1/2019 at 11:04 PM, dino v said:

Does he mean it must be advertised for let, rather than actually let? The latter is completely out of your hands and could easily not happen even if you put it on the market the day it completes. If the former, could you get it to a state where you could be marketing it as available in a few weeks?

I'm not actually sure, I think it meant actually let but it does seem a bit unrealistic. Maybe it's something they just put in the small print but don't actually enforce (that's what I'm hoping anyway). I was thinking that I'd try and get the new kitchen and bathroom in asap so I can take some photos and start marketing it before the rest is finished.

Share this post


Link to post
Share on other sites
On 4/2/2019 at 7:48 AM, haf1963 said:

i would just say 'ok' to the condition as its not like they will demand cancelation of the mortgage if you go beyond 30 days

That's what I thought, it may be different if I was going to take 6 months doing the work but it should only take me 2 months.

So is this 30 day rule not something that anyone else has come across? I ask because I'm looking at getting another property after this one and was hoping to do a bit more work which could take 3 or 4 months. According to my broker the 30 day rule is fairly standard with most BTL lenders.

Share this post


Link to post
Share on other sites

Most lenders are 30 and some go up to 90. The period is to help you find a tenant and not the time to go in and do a full refurb. Lenders are OK with a quick in and out to do cosmetic and even replace bathroom and kitchen if it's quick. It can be enforced as I've seen it from new clients coming to me.

Get your broker to tell the lender in advance and see what their view is. 

Share this post


Link to post
Share on other sites

Seems like a weird rule as your property could sit unrented for 1 month anyway if it was overpriced. Maybe advertise it whilst your refurbing just so you can show you 'tried to rent', but actually you were refurbing in case they come after you.

Share this post


Link to post
Share on other sites

I don't think it's going to be too much of an issue with this property as its a flat and doesn't need that much doing, I'd just like to update it a bit to try and get some good tenants and slightly higher rent. However, I have been looking at properties that are currently rentable but I'd like to do more work to them before letting them (maybe 3 or 4 months work). Hopefully there are BTL mortgages out there that will allow me to do that without going down the bridging route.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

×
×
  • Create New...