I am buying a BTL in the next 12 months! What do I need to do first?

[Paul D M 1]

Hi all,

After educating myself on property for over a year I got clear on my goals and my strategy. I will be buying a BTL property in the next 12 months. I have 60% of my target deposit pot already in cash and I will be saving up the remainder over the next 6/8 months. 

I wanted to know what are the steps I need to take to make sure I am as ready I can be when funds are in place. I have been browsing rightmove and running some numbers on property that fit my criteria. I think I will set up an SPV but will definitely need to speak an accountant about this.

• Shall I start contacting different professionals (broker, accountant) now even though I am a few months away from my purchase and do not have a particular property in mind?
• Is there a particular order this should be done?

I would appreciate any guidance on this!

Regards,

 

Paul 

[keunglee 2]

Hi Paul,

 Happy New Year first of all.

You have more than enough funds for deposit/legal/mortgage/surveyor fees. Also the hardest part! I feel the next part is speak to an accountant and mortgage advisor to structure your property plans to be more tax efficient ( presuming you want to grow your portfolio). Once you know whats best to do then get a mortgage in principle so you have the confidence knowing you have the funds to purchase the property, your agent would want that too if your offer is accepted.

Most mortgage brokers have accountants and solicitors they work closely with it's wise to work with 1 party who works well other the rest of the team

Where you plan to buy your BTL?

 

Keung

[Paul D M 1]

Hi Keung!

Thanks a lot for the reply, appreciate it.

I currently have around 15k cash and will be saving up a further 10k in the next few months. Considering the sum I have I am thinking to buy up north, Liverpool was my chosen area from a desktop research. 

From what you say my next step would be to speak to a broker and perhaps ask for recommended solicitor/accountant. Plus getting a Decision in Principle directly from the lender, correct? 

 

Thanks,

 

Paul

[david slater 118]

Hi Paul

A Decision in Principle can be provided by a broker on your behalf by approaching lenders when they know what property you are looking for and your preference for what type of mortgage. A good broker can usually turn one around quite quickly (assuming you meet the lenders criteria). My preference  is to have an offer accepted first before getting a DiP. A DiP will also expire after a certain amount of time so based on what you say it might be a bit soon.

I would definitely recommend early engagement with key professionals that you have mentioned and I would suggest broker first to make sure you are lendable as it will be a none started if you aren't.

Best of luck with it all.

[Paul D M 1]

Hi David!

Great stuff. Makes sense, approach a broker first to ensure I can find mortgage products available to me and take it from there. I would probably then look for an accountant. 

Any tips to find a reputable broker? I am London based.

 

Thanks,

 

Paul

 

[david slater 118]

Paul

Location shouldn't matter too much to be honest as dealing will be over phone and email. There are a few brokers who post in the forum that seem to be very knowledgable although haven‘t worked with any of them. I personally use Cyborg Finance who are good, they are based up in Leeds.

I am an accountant and work with property investors and so am more than happy to help you there if I can. You can reach me on info@accufy.uk

[adamholt 21]

1 hour ago, paul d m said:

Hi Keung!

Thanks a lot for the reply, appreciate it.

I currently have around 15k cash and will be saving up a further 10k in the next few months. Considering the sum I have I am thinking to buy up north, Liverpool was my chosen area from a desktop research. 

From what you say my next step would be to speak to a broker and perhaps ask for recommended solicitor/accountant. Plus getting a Decision in Principle directly from the lender, correct? 

 

Thanks,

 

Paul

Hi Paul,

 

Hope you're well. 

 

I live and invest in Huddersfield attracting very good yields of typically 8-10% (gross).

 

Would be happy to talk through our approach and what we invest in if of interest to yourself.

 

Cheers, 
Adam