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Expanding your Buy to Let portfolio

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With property prices booming and a housing shortage, it’s easy to see why many landlords are looking to expand their buy to let portfolio. As a savvy investor you’ll no doubt know that by increasing your portfolio of properties and mixing it up, you could reduce overall long-term risk. So why not consider broadening your horizons?Together with Springtide Capital we can aim to grow your assets by crunching the numbers, sourcing the best buy to let deals and helping to raise capital for deposits. You’d be surprised what a chat can achieve.

Every investment is paired with an equal amount of risk, so it’s imperative to select a sound property, use an excellent letting agent, to keep up the supply of fully checked paying tenants, achieve a rental yield at 125% + of an assumed interest rate, normally around 5%, and abide by safety, maintenance and insurance requirements. You also need to consider whether you could sustain levels of interest rate increases across your portfolio, it’s imperative to check affordability in case you can’t release funds. Basically, taking advantage of great advice, and getting all of the above right, can save you thousands.

Building your portfolio…

  • Keep an eye on up and coming areas in the property press
  • Diversify your portfolio, if you’re used to high-end then mix it up with student and family lets. Risk is best managed if it’s a mixed portfolio and can yield better profits
  • Do you have a tried and tested formula? If so why not monopolise an area with that type of property, ideal for smaller portfolios where knowledge in an area is powerful
  • Seek mortgage advice and ask questions: Could you access better mortgage deals and achieve more profit? Remortgage to raise capital for your next property, as opposed to selling which is liable for tax?
  • Buying a property with current tenancy agreements can cut out a lot of paperwork and produce a good yield quickly. These properties can be picked up at auction
  • When doing up a property, look to make a property value mark-up of 20% after initial house price and refurbishment. Always keep the tenants needs in mind, if it’s student digs; think simple and replaceable, if it’s high net worth think quality and style
  • Typical Buy to Let’s borrowing is up to 75% of the property’s value so you need to save up the deposit and take out a specific Buy to Let mortgage. Not doing this is against the law and you could be open to charges of fraud.

To find out how we can help maximise your Buy To Let portfolio, call us now and speak to one of our Mortgage Consultants on 020 3040 4400.

FCA
Springtide Capital Limited is authorised and regulated by the Financial Conduct Authority.

Important Legal Information
There may be a fee for mortgage advice. The precise amount will depend upon your circumstances and loan amount. The FCA does not regulate most buy-to-let, second charge or commercial mortgages. The Financial Ombudsman Service is available at www.financial-ombudsman.org.uk or by contacting them on 0800 023 4 567. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

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