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Basic Help Needed on BTL Calculations

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Hi all,

I need some quick help to give me confidence in figures.

I've drafted a scenario below, figures rounded and fictional for ease of calculating/explaining:

£200,000 Purchase

£50,000 Deposit

£150,000 Loan

£50,000 Project Costs


£200,000 Total Finance Required


£300,000 Revaluation


75% Buy to Let Mortgage : £225,000


£25,000 Retained after paying off Total Finance from the Remortgage.



Does this also mean the deposit can be taken out of the deal or does it still remain in the property?

This seems like basics but I've had a head log jam getting my calcs running correct!

Any help would be much appreciated.


Many thanks




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Any help would be much appreciated.

I need to be clear what money comes back to me after the revaluation and paying off of initial finance.

Looking at other scenarios, it isn't clear whether the initial deposit is effectively back in the pocket.

Many thanks for any advice in advance!

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  • 2 weeks later...

Here are some rough figures I would work from:


If your buying a place for £200k that requires £50k refurb, then you will need a development loan / bridge. A bridge will require 30% deposit.

The bridge will cost you 2% in fees and 0.75% per month. Thats £2800 fee and £1050 a month. So over 6 months finance will cost you £9100, more if it takes longer. (With a bridge you dont pay upfront you roll it up and pay when you exit by remortgage or sale)

30% deposit £60k
Legal fees on the purchase £1.3k
Dont forget stamp duty £6k
Then your £50k cash refurb.

Bringing your total captial investment in at £117,300


Then 6 months later when it’s all done and valued at £300k you get a buy to let mortgage at 75% LTV, so you raise £225k

At this point you owe the bridge company the original loan £140k and the £9100 fee and intrest,  £149,100.

So you end up getting back £75,900  (£225k loan minus £149,100 owed to bridge company)


The property is worth £300k and you owe 75% to the lender. So have 25% equity £75,000

You are left with £75,900 cash and 75,000 in equity, so total £150,900. You inital capital was £117,300 so you made £33,600.

You started with £117,300 cash and now have £75,900. That leaves £41,400 of you inital investment still in the property.


Does the above make any sense?  Basically you need to split it in to two. Start by adding up all the inital costs - deposit, stamp duty, legal fees and finance cost.  Thats what you need to invest. Then work out the exit. Ive tried to explain it as best as I can. :-)

NOTES - pre corona 25% deposit was enough for finance and 80% LTV buy to let mortgages were around. Also you cannot remortgage a property with most lender until you have owned it 6 months. There are however a few that allow "day one remortgages". But good practice to assume you'll need to wait 6 months.

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Ive read what you put again.

You cant borrow £200k against a property worth £200k. You can only borrow 70% of what its worth intially.

Ideally to do the project you need £125,100 in cash.

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