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dean brindley

Refinancing a BTL

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Just a quick one, I’ve got my eyes on a couple of properties I’d like to buy for my brand spanking new investment portfolio (LTD company) so hopefully I’m away early doors next year after Christmas..

I was just wondering what do yourselfs factor in when calculating a deal when purchasing then wanting to refinance 6 months later? I’ll show you mine below just so you can see how I approach my BTL costs when making a deal and please do mark up on any I’m missing or shouldn’t be really including.


Buy at least 20% below market value 



Solicitor fee’s

mortgage fee’s 

refurb costs 



let’s say this amounted to £40,000 with a £25k deposit 

£3k stamp

£1k solicitors 

£1k mortgage fee

£10k refurb 


Great, I brought the house for £100k 

now valued at £140k after 6 months. 

New mortgage 75% of £140k = £105k

Cash to me £30k 


Now as we can see I’m short of £10k 

Can anyone give me any pointers or how to get as close to your cash input as possible when you come to recycle your cash? Or how to borrow further cash to round your input back up? I dont expect to get every single last penny out of the deal but I’m sure we can get very close. Maybe I need to adjust a few things I’m not sure 


Cheers guys thanks for reading 





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Your numbers look decent and leaving 10k in is a good result in my books. your 2 options for taking more money out are

1. add more value with extension/loft-conversion/layout-change etc. will cost you double your 10k refurb but add another 10k in value

2. buy even lower - difficult these days with many people chasing fewer deals

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Cheers haf1963 good to know I’m on the right track when adding up my costs. I’m always looking for dead space and trying to cram in what I can to lift the value ie:- en suites/downstairs w.c and keeping

refurb costs as low as poss. 


Exactly what you said, I came across one the other day and couldn’t pay any more than 100k for it after running the numbers but it was snapped up shortly after with an offer close to 110k. Frustrating sometimes as you know. I’m only just starting out on my buy to let path after doing 4 flips previously to raise capital to do this so I’m abit protective over leaving to much of my hard earned money in a property if you know what I mean. A few thousand I can live with but 10/15k In each deal would eat my funds in no time. 

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Dean, we are in exactly the same boat.


When I run the numbers I have two key numbers that tell me what to do with the property, although of course nothing is certain until the final valuations are made.


I look at expected profit and cash left in after re-valuing and re-financing.


If the cash left in is higher than our comfortable limit, it's a flip. Assuming, of course, an expected profit.


If the cash left in is below our limit, it becomes a potential let.


Not sure that this will help you in any way, just my 2 cents worth....



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Same page Dennis. Obviously we all have our own guidelines and limits so whatever works for each one. It’s just a bit of a head scratcher when you’ve done all your

Calculations and knowing you can lock in a price reduction of 30/40k below the market value and still end up with a big chunk of cash left in when you come to do your refinancing. Most investors wouldn’t hesitate to snap them up and have no troubles with leaving 10/20k in but this would bring my buying speed down. I could sit back and maybe draw more from capital growth later on but I’m abit too

impatient sometimes and I would miss out on so many opportunities in that time. I’ll figure it out one way or another. Cheers 

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We are doing one at the moment that the numbers told us at the beginning that we could flip or leave as a btl. Nice profit and if we could convince the valuer that we had added value, most of our cash taken out for the next one.


Then comes the "new roof required".


Not totally sure I agree with that call, but we are going with it anyway, it should solve quite a few problems.


So, what do we do now?


Our original numbers now say that with the increased costs, this is now a flip, still with a profit.




Until we have the final assessment of the work we have done, i.e the three agents's valuations, we don't know. If it values up to an acceptable figure it again becomes a flip or btl, if it doesn't, it becomes a flip to get our cash out.


The point I am painfully making, is that the numbers at the start are pretty much all conjecture, it's the numbers at the end that really decide what you do with a property.

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