funding

[taff855]

Hello everyone I'm new to the site, I have a question, can you help.

I own 3 BTL properties (which were for long term investment, and not short term gain).All the properties are local to my address as I work full time and want to remain local for a couple of more years (ease basically).

The property's are all tennanted and are all recieving full local amounts of rental values. I have large quantites of equity in the three properties and want to know how to release the cash to continue purchasing more houses. I have spoken to the morgage people and they state that they cant lend any more money as the houses already owned by me are achieving the maximum local rental income and if they lend more money then the rental values will not be met.

i.e. house 1, a three bed semi, valued at 135k, morgaged for 94k rented for £500 a month. I roughly make £50 a month on the property after the expenses.

The local area max value for rental income is £500 for a three bed Semi I have tried to advertise the houses for more than this but end up with the property empty untill I lower the rental. I cant do multi occupancy no call for it in the area. I cant purchase a different house as the main call for rental is 3 bed housing and there is a large value difference between semi's and detached. I cant adjust the house to make space for a 4th bedroom either.

I dont want to sell the house either.

Any advice would be greatfully recieved.

Taff 855.

[odecar]

Only thing that would push up your rental assessments would be renting it out on a per room basis www.spareroom.co.uk. You just need to prove the rentals can be achieved and then get the loans reassessed. MX if not using would be a good lender to use.

[Matthew]

Are you sure there is no call for multi letting? I find that very surprising. Try Gumtree first as free, then Spareroom.co.uk, easyroommate etc... I'm sure you would find some takers. Also look in the local rag and I'm sure there will be a section for rent a rooms.

My friend is in an area in which you would imagine not many of people would want rooms, but he rents out his 2 spare rooms easily and for good money.

Stick an ad on Gumtree and see how it goes, it's free afterall.

[Kingswood]

From the example you give, there is a tracker product available that on the £500 rent will let you pull out an additional £20K. (Email or call me if interested, details in link below).

Otherwise you could change your mortgages to ones that are self-cert (based on your income rather than the rental income)?

Other than that the only option I can see would be to take out a secured loan on one of the properties.