Buy-To-Let Gets Busted!

I too have ended up a BTL landlord by default, having bought a large semi-derelict Victorian semi as a Buy-to-Sell in 2006. The objective was to make three high-class flats from the property, then sell them on the open market. Unfortunately it took well over 18 months for the planning department to grant planning consent, and when the first flat was complete the credit crunch was already upon us. I could not sell now without incurring a huge loss, and to make matters worse I can't obtain further credit to finish the other 2 flats. What to do? Well fortunately the project also stacks up as a BTL, at least for the moment, even with only one flat let. This is because the mortgage rate has come down so much that I have nearly 200% cover, even with the rent set well below market value. Are the tenants happy? I should say! They have a luxury 2 bed flat (granite kitchen worktops, undermounted sink, real limestone tiled bathroom and no dodgy dark-brown carpets to disguise the dirt!), in an OK part of Bristol for at least £150 less than market rent! This I did to try and create a win-win situation, I get a rental return and they get a very nice flat very cheap as it is above what amounts to a building site and next to an oft-complaining and neurotic neighbour.

I'm a private landlord, a state of affairs that has come about almost accidently. I got married and moved into my hubby's tied cottage, so we then rented out my flat. My hubby also has a lovely cottage that he owns, which is also rented out at half market rent to a local art group for their artist in residance. Living in a tied property means that at very short notice we may have to move out if his (part-time 2nd) job ends. Our cottage is our safety net should that happen, and in the mean time the rent covers the mortgage. The flat on the other hand is for making money (and as an investment for our 4 kids) as we earn very little having just inherited half a farm (and the full overdraft of the whole farm) and become self-employed at teh same time. The farm has a derelict house that we hope to live in once done up. Yes, if we sold up we would have a fair ammount of money but no job, so at the moment and forseeable future we are asset rich and cash poor. We live in a remote rural area in Scotland so while you may think we're millionaires with all this property we're no where near it. Our tied cottage has 1 1/2 bedrooms for a family of 6 and we run 2 bangers, we do not go on holidays. I suppose what I'm trying to say is that there are all types of landlords good and bad, greedy and alturistic, who came into letting for all sorts of reasons. We should not all be tarred with the same brush. I consider myself very lucky to have been able to buy when I did and glad I didn't sell when I married as I now have some security and options should I need cash. I belive that no-one has a right to buy just a right to try, the same as with having kids. Private landlords and social landlords both have their place. I agree with others that lending criteria should be tightened more social housing built and more affordable rural housing(for rent or sale) built. Although I'd only support the latter if there were covenats/ties attached that reserved them for locals and prevented them being used as 2nd homes. If we ever manage to get out of the financial quagmire I'd participate in a local housing scheme even with conditions attached.

Now a view from a real money site.[br/][br/]http://www.moneyweek.com/news-and-charts/economics/the-stupidest-place-to-put-your-cash-right-now-13800.aspx[br/][br/]End of story