Raising 30% for buy to let

Hi all, quick question on buy to let mortgages. I want to buy a particular apartment that is being auctioned next month. I already have one buy to let with no mortgage on it, and was hoping to buy another with a buy to let mortgage of 70% LTV towards the end of this year. An apartment has come up for sale that I actually lived in for a year many years ago. It’s an older apartment but is solid and well insulated and I love the area which is safe and central, the main reason I want to buy this time round is so that we have accommodation sorted for our kids for college as we don’t live near a university (rural town) and this ticks every box. Unfortunately the timing isn’t great as I only have 15% in cash right now, I am waiting on some money to mature in May and will have the balance to make up the 30% then. My question is are there any institutions offering more than 70% LTV on buy to let loans (I don’t think so)? or alternatively has anyone had experience of getting a mortgage on an unmortgaged property to fund the purchase of another property? If so was it straightforward to do? I would hate this to slip through my hands as what are the chances of me knowing the property so well and being happy with it. I phoned the auctioneer and it’s a bank sale. The auction is early next month so I don’t have much time, all advice appreciated!

check your pm’s

Buying apartments for children’s college years is a sure sign of property undervaluation imho:-)

With yields on two-beds in Limerick and Galway cities around the 10% mark it is hard to go wrong.

10% net?

Have actually surprisingly gotten the green light from my bank for the loan in principal! Yes over 10% yield so seems like a good buy regardless of future needs re kids and college if I can get it within 15% of AMV. Next hurdle is getting approval for actual property and going to auction ready to go, has anyone had success of buying at a repo auction wtih a mortgage? I bought a Dublin repo before but I was able to buy that one in cash.

Is it an Allsop’s auction? A 15% cushion over the AMV won’t go far if the AMV is well under the market value. If it is in line with what the price would be if it was sold by private treaty, then you should be fine but there is no such thing as a bargain and things at auction tend to sell for their market values or higher (auction fever). The last thing we bought at an Allsop’s auction in Dublin was more than 100% over the AMV and I think we would have paid less if it was for sale by private treaty. Last thing we bought at a regional auction was 50% over AMV, but the price paid was in line with what it would have achieved by private treaty sale. No experience buying with a mortgage I’m afraid.

It’s not an Allsop auction and not in Dublin. I will have firm ceiling set before auction and am prepared that I may not get it. Looking at previous results from this estate agent at auction it is realistic to expect it to go around 10-15% over AMV but if it goes over that I’m out. That is of course dependent on me getting approval for this specific property in time for the auction, feel like I have to give it a bash though…

Yeh there abouts, we bought planning for a yield of 6% got 9% last year due to rents going insane

On the other hand there isn’t much left to buy or on sale, one really has to wonder how much is left on NAMA books…

Your solicitor will need to be able to vouch (to the bank) that there is good marketable title before you will be able to draw down the mortgage.

As such your key challenge is getting the solicitor to confirm same to you prior to the auction.