Buy to Let Property Portfolio

If you are happy to use borrowing here’s one model you could start from. The first thing to recognise is that you will need a minimum salary of £25,000-plus, as this is the usual requirement for most buy-to-let lenders. The types of lenders that will give you a mortgage or secured loan for a buy to let portfolio vary and depend very much on your wider circumstances.
 
A good plan is to aim for properties around £160,000 for a buy to let portfolio as they should provide rents in the current market around £750 a month (a 6% yield), funding with a deposit of 40% or £60,000 would mean a mortgage or secured loan of £100,000.
 
Rates are very good in the current market and at a rate of say 3%, using an interest-only monthly mortgage payments would be around £225. This would give you a monthly gross profit (not including other costs, such as repairs, service charges etc.) of £525. If you repeated this model 4 times you could achieve a nice starting income of £2,000-plus per month.
 
Once 4 properties were securely established in your buy to let property portfolio and rented, particularly if values go up you could use the increased equity and the cash flow from your properties to support further purchases.
 
It’s worth remembering as well that if you spend years building a successful buy to let portfolio that your family could face an inheritance tax bill of 40%, which they would have to pay within six months of your death.
 
To avoid having to sell buy to let portfolio at a discount, it is important to look for policies that will offer protection against inheritance tax or forced sales of your portfolio if you unfortunately pass away.
 


AtPledge can help you with your buy to let property portfolio, our short term lending can help you buy at discounted prices. Call us now for more information 0800 811 1111