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  • Property-a-holics

    Where to next in order to grow portfolio?

    So I am looking to make the next move as I have got too comfortable. My old saying is that when you are comfortable but not at your goal then you need to step it up a gear to get there faster.

    Current situation:-

    3 x B.T.L. all at around 200k value with interest only75% LTV mortgages

    All have good long term tenants; I'm not being greedy with rents and low maintenance.

    Yields are good as is capital growth.

    Residential around £450k with repayment around 40% LTV mortgage

    War chest building up (around £40k). Not enough to get into another BTL where I want (SE 3or 4 bed Semi), I would need around £65k.

    Events on the horizon……..

    1. My wife is wishing to move to new residential- value circa £600k
    2. I'm still keen to invest in more BTL/ Refurb etc.


    1. Keep building war chest in readiness for next residential in order to try and keep LTV on that as low as possible.
    2. Overpay on the current residential to the maximum allowed each month (£2000) by drawing down on the war chest
    3. Hold fire until war chest is around 30% of next BTL value and be ready to pounce when something good crops up
    4. Divert any excess return on each BTL to their own interest only mortgage to bring down their LTV and future-proof any awkward shortfalls in property value at time of remortgage at 75%.
    5. Put war chest into something with a greater return than the current easy access bank account.
    6. Set a fixed date to return to ideas, worked in the past for me to stop my mind racing, just tell myself that you can do nothing till March 2020 for example.
    7. Sit on my hands, do nothing and enjoy financial comfort.

    Anyone else gone through or going through a similar situation or indeed anyone with any advice on the best idea of the 7 above?


    I suppose it will depend on a lot of things such as age, family plans, retirement plans, current employment etc. 

    Sounds like you have a good solid financial base as you said though.
    Option 2 gives you most flexibility whilst enabled to apply some of the other options whenever you like if your lender allows drawdown


    Disclaimer: I have no legal expertise nor am I a qualified advisor on any subject. A humble landlord using an open forum to exchange ideas and experiences. 

    Further info.....we are early 40's, both in rock solid jobs just below higher rate tax threshold, no plans to retire as still have kids to get through uni as yet.


    Hi Smitler,

    Great to hear about your journey so far and what your next plans are! It sounds like you have a strong start in your investment journey already and so you have many options to move forward.

    Each idea you have sounds great and could be excellent for your next steps. Is there one in particular that suits your current needs best and is there anything you would like to do for your next steps?

    It sounds like you have many good options going forward so I can’t wait to see what you decide to do next.


    Transparency notice: OneandOnlyPro is a commercial partner of Property Tribes.

    It’s all about whether you want to take more and more risk when things are ticking along nicely.
    If your present house is big enough and that’s possible as at the age of 40 you are unlikely to be adding to your family then taking on another 150k of debt on a new residential with none of the interest being tax deductible seems a luxury choice rather than a business decision . Yes the capital value of that may grow but so would another rental house if prices appreciate but of course they may fall if you believe there is a bubble.
    As long as you stay a basic rate taxpayer then another buy to let once you build up your next deposit ( maybe in a LTD as that would be 4BTLs which many people consider the tipping point ) would be tempting but S24 could hit you hard so watch that carefully and you may prefer to work less hours maybe 3/4 time if that’s possible to keep below the threshold .
    If you want a nice easy relaxed time and sleep like a baby just keep paying off your present BTLs and residential so your LTVs will get lower and lower as the years go by and that’s what I would personally do as I’m very risk averse ,

    I like your thinking  Pay down debt has to be a good thing

    and as you LTV goes down when you remortgage you can get better rates

    If your going to leverage dont use your home to generate Deposits

    If s24 effects an investor than the LTD Co is the way to go

    work smarter not harder


    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.

    Evening Tribers.

    I am in the same quandary

    Aged 46 with a small portfolio in SE London

    3 BTLs, 2 at 50 LTV with the third at 30 LTV'

    Residential mortgage of 230k on 550k house in Zone 4

    The issues I see are as follows;

    S24 doesn't make it worthwhile to take on more debt unless you can transfer the income to your wife (which is what I am looking to do, is why she gave up her FT job!)

    The size of the deposit; 100-150k in my area for a 300k 2 bed seems excessive for 500 pm cashflow

    Far better to build, I have just got permission to build an extended kitchen and annex to the back of my house self contained bedroom, bathroom and lounge for my retired parents which will cost 75k to build, annex size is about 50' x 12; which could be rented for 600pm in my retirement (10 -15 years time)

    So I could get 10% return on my money and increase the value of my house without moving, in your situation I would build up war chest and a) pay down residential and b) invest in stocks and funds such as Vanguard for the kids etc, long term savings



    Hello Singh73

    S24 (income tax relief erosion) does not apply companies (who pay corporation tax, not income tax) so any new purchases should really be in a corporate structure / Ltd Company name - although I will caveat that with you must take specific tax advice from a a landlord savvy accountant, eg ww.Rita4Rent.co.uk

    The range of BTL mortgages for Ltd Company borrowers has gone through the roof in recent times, so many options are now available, including some great exclusives available via the https://www.PropertyTribesFinancialServices.com team.

    And don't forget ... every pound of debt, whether in personal or company name, is a pound of obligation back to the lender.  The mortgages must be paid every month during your lifetime, and repaid in full in the event of a qualifying death, and appropriate and fit or purpose life cover to ensure your family is safe, is absolutely crucial.

    Property Tribes Financial Services offers free reviews of all mortgages and life cover - call us anytime on 01206 654 444 to arrange your review.









    You have not said your age or what you do for a living

    I am a great supporter of diversification in 2019

    I would invest in other areas

    Pensions ISA Equity ect

    I went down one road and I found the Govt blocked it ie S24 Stamp Duty ect

    BTL is a good investment but its a highly taxed investment so it has to work twice as hard to match equity investments which can be tax free


    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.