All,
Im new to this site and from looking around in the forum I am very impressed with people's willingness to provide information. As a result I have a question. I have read a lot about people buying properties at 15-20% discount in the equity and in cases where this is real they use that equity as a deposite when taking out a buy-to-let mortgage.
My question is how? My understanding of a BTL mortgage consultant is they look at the value of the house or what was paid and take the lowest - therefore not allowing you to make use of the 15-20% equity in the property. How do you make use of that equity in order to use it as a desposite?
A freind of mine has a house and is emigrating. He is willing to sell it to me at 80% value (he has has the house a while) and I don't have the 15-20% deposite. When I went to the mortgage people they said they would ony give me a mortgage on the price i agreed - not the value and therefore I am not able to use that 15-20% as equity. How can I get ar ound this? Is this where bridging loans come in? If so they are very expensive from what I have seen.
I do have property and therefore equity but in each case I saved up the deposite. Im interested to know how this works otherwise. Any advice on how I can purchase my friends property using the equity as a deposite?
Best regards,
SaladDays.
