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  • Jharris
  • Explorer

    • 7

    • March 06, 2014, 07:45:09 am
    • South Korea
Purchasing a buy to let in the UK
« on: June 03, 2015, 02:15:39 pm »
Deleted.
« Last Edit: September 11, 2017, 12:24:59 pm by Jharris »


Re: Purchasing a buy to let in the UK
« Reply #1 on: June 03, 2015, 02:39:52 pm »
I bought a place 5 years ago. The main advice I'd give anyone would be try to buy in an area you know well or have friends/family living there who know it well. As I'm sure you've heard it's all about location, location location. Someone living on the spot will know what areas to avoid, which are up and coming etc..an estate agent will probably distort the truth about this. Any other questions you have on specifics feel free to ask.


  • Timo
  • Super Waygook

    • 392

    • May 21, 2015, 02:47:36 pm
Re: Purchasing a buy to let in the UK
« Reply #2 on: June 04, 2015, 11:24:56 am »
Huge investment and risk in doing this, make sure you do your research.


  • Space
  • The Legend

    • 2288

    • May 09, 2012, 10:11:12 pm
Re: Purchasing a buy to let in the UK
« Reply #3 on: June 04, 2015, 11:32:59 am »
I didn't realise you were so rich.

Short arms and long pockets have their benefits.


Re: Purchasing a buy to let in the UK
« Reply #4 on: June 04, 2015, 12:12:47 pm »
This is also something I'm considering, but how would you do it while you are not a resident of the UK?

I'm sure the terms of the BTL mortgage would mean you need to be a resident, or would you buy the property outright? If the latter what are the advantages of a BTL property in the UK compared to a BTL property in Korea?


  • Timo
  • Super Waygook

    • 392

    • May 21, 2015, 02:47:36 pm
Re: Purchasing a buy to let in the UK
« Reply #5 on: June 04, 2015, 12:19:40 pm »
This is also something I'm considering, but how would you do it while you are not a resident of the UK?

I'm sure the terms of the BTL mortgage would mean you need to be a resident, or would you buy the property outright? If the latter what are the advantages of a BTL property in the UK compared to a BTL property in Korea?
I don't actually know what the situation is, but I imagine it'll either require a huge deposit, or some kind of collateral required for the investment.


Re: Purchasing a buy to let in the UK
« Reply #6 on: June 04, 2015, 01:03:10 pm »
I bought mine when I was over on holiday. I spent a week looking for a place then it took another two weeks for everything else to get done. Seller to accept bid,  Surveyor's report, solicitor to prepare the documents etc...I met a solicitor on the first day back and told him how long I had to get everything sorted. He told me he'd never done it that quickly before but it was possible. I paid cash for it and had to show  pay slips going back a while to prove it was my money - might be a problem for people making their money doing illegal privates here.

I pay an agency ten percent of the rent to manage it. This includes periodic inspections, sorting out repairs when necessary - they get them done and take the money from the rent - and organizing things required by law such as gas inspections, smoke alarms etc..Of course they also find someone to rent it, put pressure on them to pay up and arrange to kick them
out if they don't. It took them a few months to find the first tenant but he's been there for four years now with now problems, bar a few late payments.

As far as risk is concerned I think it depends on what kind of property you buy. A gamble would be buying a run down place and trying to over fill it with students or dolers. You get more rent and pay less on the house and repairs (by being a slum landlord and refusing to
do them) but would be more likely to get people who refuse to pay the rent/ trash the place and reduce the overall value.

Quote
what are the advantages of a BTL property in the UK compared to a BTL property in
Korea?

I'd have thought these were obvious. Britain has a massive house shortage which I can't see changing much in the future and Brits are quite happy living and renting in old houses, which
 don't depreciate in value as opposed to Korean apartments. Also if something does go wrong, wouldn't you prefer to deal with it in your own language and rely on the law from your own country, rather than Korea, to sort it out? I know I would.
« Last Edit: June 04, 2015, 01:06:42 pm by eggieguffer »


  • Hau5fly
  • Veteran

    • 75

    • March 16, 2015, 04:06:54 am
    • London
Re: Purchasing a buy to let in the UK
« Reply #7 on: June 04, 2015, 01:18:24 pm »
I am not sure about the laws (concerning purchasing outside the UK), but there are a lot of foreign investors buying property in the UK - esp London - so it shouldn't be hard to find info on that front.

My main concern would be the housing market. Prices have been going up steadily for the last few years so England is enticing for cash buyers. Mortgages on the other hand could get dicey if you don't have a lot of capital - Halifax and Barclays have "mortgage calculators" that are pretty useful.
BUT there are a lot of murmurings of a crash coming soon, its hard to say how or when but something is going to give. House prices in England, especially in the south, are getting ridiculous. With a new government hell bent on living the EU, who knows what carnage will ensue.

I have heard Ireland is a safer bet, their economy is picking up (i suspect through government incentives which may or may not last) and property is still cheap. i.e. less risk from a housing price crash.


Re: Purchasing a buy to let in the UK
« Reply #8 on: June 04, 2015, 01:53:02 pm »
Quote
I have heard Ireland is a safer bet, their economy is picking up (i suspect through government incentives which may or may not last) and property is still cheap. i.e. less risk from a housing price crash.

Yes planning to by a place there next Xmas. On the plus side, house prices are low and the pound euro exchange rate is very good right now, on the minus you'll have to pay property tax, though it's not a lot.


Re: Purchasing a buy to let in the UK
« Reply #9 on: June 04, 2015, 01:53:08 pm »
Do you need a mortgage to buy the house? Cos I'm not sure many UK banks are gonna be too willing to offer you one without being a permanent resident in the UK in employment.


Re: Purchasing a buy to let in the UK
« Reply #10 on: June 04, 2015, 02:03:58 pm »
That's what I was alluding to earlier, I used to work in finance and you needed to be a resident for at least 3 years prior to qualify for loans.

However, if you have the cash, or maybe if you have collateral or someone who will act as a guarantor, then it should be possible.

I'm thinking of getting somewhere in my home village, parents still live there and house prices are pretty cheap. Should get a steady rental income from that.


  • eddyman43
  • Adventurer

    • 30

    • March 31, 2014, 09:29:43 am
    • Changwon
Re: Purchasing a buy to let in the UK
« Reply #11 on: June 04, 2015, 02:40:02 pm »
Cameron doesn't want to leave the EU. He is a tit but even he knows a BREXIT would be a disaster for the country. He is a very calculated politician with right-wing dominated press largely on his side. Britain will NOT leave the EU, mark my words.


Re: Purchasing a buy to let in the UK
« Reply #12 on: June 05, 2015, 10:07:04 am »
It may be possible, but the banks which do offer it, do have some stipulations. For example I used to work for HSBC, and they used to have the proviso that the rent must be 130% of the mortgage payment and if you are paying from your salary, then there is a ratio that they use for affordability. Now, assuming you use your Korean salary, your affordability level would be quite low.

Also a lot of BTL mortgages will only go up to about 75% of Loan to Value (LTV), so you would want to build up as big a deposit as possible.