As rising property prices put pressure on rental returns, more landlords are trying to profit from refurbishments. This may involve buying run-down property or developing an existing property by adding an extension to swiftly increasing the value by undertaking a radical refurbishment before putting it on the rental market.
An investor my look towards "HMO" investing, where multiple tenants live together in a single "house in multiple occupation". As this generally seen as the highest yielding form of buying-to-let.
Refurbishment not only increases the value of the investment, landlords, but also cuts down on long-term maintenance costs and attracts higher quality tenants who tend to stay put for longer. Typically, refurbishment finance for standard buy to let houses and flats is available up to 75% of the end value with rates.
Another reason to refurbish your buy-to-let property is to improve the energy efficiency tenants now look at the Energy Performance Certificates (EPCs). By installing insulation in the walls and loft, making sure windows are double-glazed and fitting draught excluders, you could improve the energy efficiency of the property and lower potential tenants' heating costs.
We can advise and arrange the right finance support for refurbishment projects. As many lenders can be reluctant to agree to a mortgage if the property is uninhabitable. It is important that you seek independent financial advice as it is highly unlikely that one lender will offer the best deal in both areas you to find the best rates from the whole market.
Why not find out what is the best mortgage options for you so contact us today.
Not all buy-to-let mortgages, or loans and debt services are regulated by the Financial Conduct AuthorityThe value of investments and the income from them may go down. You may not get back the original amount invested.Your home may be repossessed if you do not keep up repayments on your mortgage.The information contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK