The 1st Loan To Value, LTV, you want to start the Calculations at.

3 different LTV's can be compared, last 3 Columns under With Mortgages, Increments.

The amount of money in your Investment Cash Pot for a Deposit for your Property excluding all Transaction & Fix Up Costs.

Remember Property has High Transaction Costs and most other Investments do not have a Fix Up Costs.

The 1st Yearl % Growth or Gain in Portfolio Value.

Historically property in the UK has increased at an average 8% annual Gain Rate, doubling in Value every 10 Years.

Enter the 1st Year Gain Rate you expect which will vary by a number of factors such as Location and Type & Value of the Property.

For more help & advice go to out Buy To Let Foundation Seminar

The £ Sum of the Capital Gain at the 1st Year.
This Sum can only be realised by selling the Property
But remember, the effect of Leveraging means that this Sum will increase by your Capital Gain Rate at the end of the 2nd and subsequent years until sold.

The 1st Year Capital Gain as a % of the Deposit Cash.
Provided Property Values Increase, the % Return will increase every year because the Sum will increase but the Deposit Cash remain static unless you adjust for moving towards or achieving NMLI until sold.

Gross Yield, the Annual Rent as a % the value of the portfolio.

For positive cash flow this should be at least 2% above the interest rate, see our Buy To Let Foundation Seminar.

Operating Costs include Letting & Management, Maintenance, Insurances etc, every Tax Deductible Cost bar Interest.

See our Buy To Let Foundation Seminar for all Tax Deductible Costs, they are extensive.

Link to the Slide from the Buy To Let Foundation Seminar on the Advantages & Disadvantages of Investing For Yield/Rent

The Amount of the Mortgage at the different LTV's.

You will have the option of Interest Only or Capital Repayment.

Go to our Buy To Let Foundation Seminar to look at the Advantages & Disadvantages of either but generally Interest Only gives you better positive Cash Flow.

The initial Interest Rates applying to the Mortgages you take out.

Generally, as you increase or raise the LTV, the Interest Rate is also Increased because Lenders perceive that higher LTV's carry a higher risk of failure.

Interest Rates can be entered to 2 Decimal Places.

Because Interest is now deducted after your Tax Liability has been worked out, to arrrive at your final Cash-In-The-Bank & Cash-On-Cash Return, your Tax Liability has to be included in your Calculations.

Private Investors pay their Mortgage Interest after Tax is deducted but an Interest Credit, currently 20% (2021), before Tax is assessed.

If you are a Company Interest is deducted before Tax is assessed.

Please email any Questions or Comments you may have as we are able to reply in more detail than over the phone.

Please Call Us if you have any Questions that you would like answered/discussed using a video facility (Zoom) which we record but we do charge £1.00 per recorded minute with £60 (1 hour) payable in advance.

Unused time is credited to you account and any unspent time is re-imbursed on demand.

Bespoke Consultations have to be arranged in advance but are available during evenings & weekends.

Normally single recorded sessions last between 30 & 45 minutes, are payable in advance (Paypal) and you can end any session at any time.

The % is the Cash-In-The-Bank as a % of the Deposit Cash.

This sum is the True Return for comparison with alternative investments that don't involve either Mortgages, Improvement Potential or High Operating Costs.

The most commonly quoted return is GY yet that % is generally higher which indicates how little most people understand BTL as generally the highest % available is used.