Considered using Capital Appreciation to fund a larger residential purchase ?

Want to raise a deposit to fund an expensive residential house purchase ? Have you considered using "buy-to-lets" to raise your deposit.

Look for properties in areas that will earn decent yields, such as in the Midlands, the North, the West Country and Wales. Here you can buy property for a fraction of the cost of a London flat.

By starting small and adding together the proceeds of more than one property is potentially a brilliant way to ultimately acquire a much larger purchase.

With a bit of capital appreciation, and yields to cover the mortgages, a deposit of £100,000 is very possible.

Tom Thorns, 29 explains how he is saving money with this plan. "Knowing the Manchester market, it made sense to find a place in the North. Prices had come down so much."

Coming from London he needed to fund a £500,000 purchase to live in the area of his choice. Hence as an interim measure he moved to Manchester and began looking for buy to let opportunities.

He subsequently bought his first buy-to-let apartment in a mill conversion for £130,000. He subsequently sold that last year for £170,000 and is already looking to buy his second property.

He says he, "hopes to get a couple more properties, enjoy some capital appreciation and then move back to London in a few years".

If you are looking to buy, sell or remortgage please call us on 0845 603 0708, email us via answers@nationalsolicitors.com or complete the form on the right and we'll call you back.

Lee Chadwick LLP

Oxford Conveyancing Solicitors

Tel: 0845 603 0708