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  2. Hi Ellie, I work as a development finance consultant and consequently with a number of new property investors looking to buy and refurbish and in this situation the lenders place emphasis on the builder that will be doing the work. so long as you can provide details of the builder and a good schedule of works including timings and costings then funding is available. Typicall you can borrow 70% of the purchase price and 100% of the cost of works. You can then easily refinance with a buy to let lender who will lend as soon as the works are completed (no 6 months rule to worry about) and will use the increased valuation. This allows you to pull money out again as you can borrow up to 80% of the new value, and move on to the next project. bridging for refurb costs are 2% fee and typically a .07% to .08%pm.
  3. Today
  4. Hi @adam-reed Morley, Burley and Kirkstall are all solid areas, although Burley/Kirkstall are very popular with students I wouldn't rule them out as they are also popular with young professionals, especially the ones who may want to stay in Leeds after uni but avoid living in Headingley/Hyde Park which are over run with students. The city centre should be a solid choice, I like areas such as the Northern Quarter/some of Holbeck/The Calls/Dock Street mainly due to the architecture, not as keen on the newer build blocks. Venturing further into Holbeck to the b2b terraces i'm a little unsure of and also you have to bear in mind Holbeck has the only legal red light district in the UK, so that's something that could put people off.
  5. Hi Ian, Firstly, thank you for your time, I really appreciate it. Please can you help me with a concern we have about a planning application our neighbour has recently submitted. We both live in detached villa style houses. They are detached but in saying that there's only c.1m alley ways between them. Whilst they look very similar, ours was built in 1890 and our neighbours was built in 1955. A key difference however is their roof ridge is c.1m higher than ours (probably due to planning restrictions being much less strict when there's was built in the 50s) and has a much steeper roof pitch angle as a result. Now we were permitted an piggy-back loft extension allowing us to raise the piggy-back section to the max height allowed of 1.3m above our existing roof so long as the piggy-back is set back at least 4m from the road. The height of our existing roof ridge and now the piggy-back roof ridge is very much in keeping with our other nearby neighbours that have already done a piggy-back. They have applied to do the same but with their existing/original roof being 1m higher than our original roof ridge to start with, if they are permitted to raise theirs by the max 1.3m (which is what they are applying to do), then their new piggy-back will also tower over our existing piggy-back by over 1m. Down the side of our house we have windows on the western side only and their house sits between us and the sun that comes around on the western side during the day so we fear that, them being so much higher, it will block out vital light that we need in order to provide the middle sections of our house with natural light. If they were permitted to go to the max of 1.3m their roof ridge would be out of kilter with the surrounding houses. As I say, our house, with piggy-back, is the same as other houses - theirs would be a real standout. As mentioned previously, their roof pitch angle is much steeper than ours indeed their current eaves floor to apex height, at 2m, is almost high enough for a loft conversion without having to raise the roof at all. If they raise the roof by 1.3m the new height of the front piggy-back section/rooms of the loft would be 3.1m high! and with the back section of the house currently being some 40-50cm lower (they are applying to construct the roof the same height all the way from the very front of the piggy back right to the very back fo the house) the 2 back rooms of the loft would have a floor-ceiling height of 3.5-3.6m!! The 3.1m seems excessive and unnecessary, never mind the back rooms at 3.6m!! This floor would by some margin outdo the already tall victorian style ground floor rooms (2.8m) and 1st floor rooms 2.6m, which I believe is very unusual for the loft to have the tallest rooms? I have enclosed a simple diagram of the profiles of the houses to aid my explanation. Again ours is the 1890s build on the right. They could easily achieve comfortable rooms and living without going to that height and thus not so drastically affecting light levels we receive but my question is - Based on more strict planning rules (versus when their house was built in the 50s) do you think they will be allowed to surpass the height of our roof ridge (and indeed other neighbours' roof ridges) or will the council require them to match the height of ours and the surrounding neighbours? This seems unfair to me. We have been restricted to protect our other neighbours light so should we not be teated exactly the same. I always assume they would not allow a roof ridge nowadays to be so prominent and out of keeping but we are worried that they would be allowed to do it because there's a non-specific 1.3m limit on piggy-back extensions. Thanks very much, Skandy
  6. Yesterday
  7. Hey guys, Adam here also from Leeds. I’m looking at Morley, Burley and Kirkstall at the moment for my first BTL. My only hesitancy is that there may be a large student demand there and ideally I want to be letting you young professionals. What do you think about the city centre and maybe Holbeck? I know it’s not the best area but with the Souty Bank regeneration there could be a great opportunity for capital growth around the Holbeck area and also the apartments nearby Clarence Dock and The Calls. Thanks, Adam
  8. yvan c

    Corporate tenants

    Hello , Does anyone have contacts to secure corporate guests for my SA properties in London ? I am about to take on 9 new builds flats and would like to focus on the corporate market. Any advice or introduction is welcome Sincerely Yvan
  9. For service accommodation it is my understanding that section 24 does not apply. Its one of the benefits of short let vs single let. Happy to be corrected
  10. Hi Phil Great position to be in , not easy to manage from overseas . Are you impacted by section 24 ? From April 2020 it will be applicable in full . Your plan sounds good , however if you are serious about expanding your portfolio why pay down the mortgages ? That money would be better invested in a project with high ROI. Obviously if you can afford to pay down debts and invest then happy days . All the best
  11. Hi Isabella , Lease Options can be very powerful but the circumstances of the seller must be right. First you need to make sure that he /she does not require the proceed of the sale now . Sometime sellers sell to release a very specific amount of equity vs the total equity available. You need to check that the mortgage is the correct one (BTL vs Residential ) and you need to check the type of payments (interest only or capital repayment) If the above is ok then you need to agree the option fee which could be anything from £1 to £50k or more . Last but not least you need to agree the price at which you will be able to exercise the option to buy and the length of the lease. The deal can be whatever you and the seller decide. I recommend that you always make sure that the seller get legal representation explaining the possible drawbacks of the agreement . This will protect you if the seller changes his mind after a while. So to answer your question , you will not find agents advertising such deals however they do have plenty on their books. Build rapport with the agents and explain what you are looking for (see seller's criteria above) . I would also recommend talking to letting agent as many landlords are open to the idea of selling at some point . Finally you need to find a trusted person on the ground to do the leg work when you are away Hope this help
  12. Hi Richard , I advise you to have a chat with a tax advisor specialising in property matters. That being said your thinking is the right one. A limited company is not always required and if your income drop below the threshold, section 24 should stay away. Are you managing your properties yourself ? If yes I recommend to reach out to your council to find out if they do long leases on properties. You get a guaranteed rent and they also take care of repairs . Thus a real passive income. Cheers
  13. Hi @mattsaw There are a number lenders who are comfortable with directors loans and also a couple who can work with trading companies. We helped two clients recently working in similar scenarios...one client was purchasing properties from himself via a SPV (He developed the properties in his personal name) and we utilised directors loans to complete the purchases. The other client was purchasing 6 BTL’s via his trading company, the lender was comfortable with this scenario but simply asked the client to set up a subsidiary to carry out the transactions. I hope this is helpful and please do let me know if you have any questions. Best regards Nathan Cole
  14. I think I shall be making an appointment with a mortgage advisor next week hopefully to get things going as I have a good deposit from inheritance so could get a mortgage then make an offer.
  15. Hi Caroline, No, your own resi is not included in the count, so you're still good
  16. Hi Mattsaw I've done this (intercompany loan) and it was all good. Find yourself a decent broker (and accountant) and they'll be able to sort you out.
  17. Hi John Not an accountant, so please consult a licensed tax adviser and mortgage broker. Couple of things to consider; If switching your PPR to a HMO, if it's mortgage you'll need to gain consent from them first or switch it to a HMO mortgage; and I don't think the payments to your business account will reduce your personal tax unless you transfer the property to the limited company (which comes with its own tax implications like CGT and SDLT). As the asset is held in your personal name, the income (less expenses) will be added to your personal income and taxed at the relevant personal tax rates. Otherwise, everyone in the higher tax bracket would set up a proxy business account and dump their income in! Once you've paid personal tax on it, then you can pay the funds into the limited company as a director's loan, which you can then withdraw tax-free if needed as you've already paid tax on it.
  18. No flames from me, Ben! I agree, that education, when delivered correctly is useful and helps progression, even if it costs five plus figures. I think the issue with SL was the way it was/still is being sold and the value students received for the £12k they paid. You'd probably learn more from partnering up with someone on a invest-to-learn type agreement to purchase a property. At least you'll end up with an asset at the end. It's like going to an expensive restaurant for dinner where they end up serving something that's over-cooked and the wait staff are uninterested. No one forced you to go eat there, but the reality didn't meet your expectations, and the shortfall caused by that creates the disgruntled customer. I think the basics you can learn for free via books, forums, networking events. And then once you've got the basics, if you want the fancier or more involved techniques, then pay the extra amount for the education.
  19. Hi all, Hope someone may be able to help me, My next door neighbours were from Brazil but 1 had an Italian passport they were able to get a mortgage on the property due to his high paid job but after 2 years decided to move to the Netherlands and put the house up for sale it didnt sell so decided to rent it out and after a couple of weeks of making this decision tenants moved in . Is this right? I thought you could only get a buy to let mortgage if you are a uk resident or at least own a big chunk of the property and didn’t think it would be so quick for people to move in. I am only concerned due to the fact that the family moved in could become homeless if the paperwork isn’t correct many thanks in advance
  20. Hi Eamon, Each time I’ve done back of an envelope maths before choosing the mortgage, weighing up remo costs, potential opportunity costs etc. I’ve always concluded (over the last three years at least) the short dated fix (2/3yr) is the way to go. Mainly for the same reasons as yourself I.e. expecting a higher enough capital appreciation to want to remo and redeploy into further purchases. The only extra consideration I’d now be making though is throwing variable rate mortgages into the mix. Recent swaps trading suggesting a greater than 50% chance of seeing a rate cut. Bring on Jan 30th!
  21. Hi, I have been advised by my tax accountant to use Quickbooks, any other suggestions - any sort of CRM landlord software that could keep sales, leads and keep accountant happy? Thanks
  22. Ok I'm going to make myself very unpopular I think. :) In the interests of balance and the fact that I like to play devils advocate, I'll express an alternative viewpoint (Note that if everyone on this thread had been supportive of these courses then I'd have given an argument against them.). Firstly, I need to be careful given that someone lost their life, which is a horrible tragedy. My thoughts are with his family and friends. Note that I'm not talking about Samuel Leeds here, as I have never attended any of his courses, and I agree that some of the sales tactics on that video looked bad. I'm talking about courses in general, some of which I have attended. So that's the disclaimers done... getting to the point... For the courses I've attended I'd say that the techniques they teach are genuine and achievable, and there are many successful investors doing them. These include things such as HMOs, Purchase Lease Options, Rent to Rent, finding BMV properties, Sourcing and Packaging Deals, Joint Ventures, No/Little Money Left In Renovations and using other peoples money. Of course all this information is available from multiple difference sources, including free sources (e.g. the great "The Property Podcast", YouTube videos), low cost sources (e.g. Books\Audiobooks, including books from Rob D and Simon Z, etc) as well as more expensive options such as courses, coaching and mentorship. Personally I've read a lot of books and watched many videos and webinars to a point that I feel relatively well educated about all of the different strategies mentioned above, however I recently did a (Free) one day course which I felt took my understanding of some of these areas to the next level. On this particular one day course there was very little attempt to upsell you to a paid course... there was a little, but I certainly wouldn't call it hard sell or anything like the things you see on Mike Winnets Contrapreneur video. What I have observed is that whilst the strategies do work, you have to be the right type of person. You have to have a certain attitude, mindset and personality. When I first went into property investment I didn't realise that people skills would be so important... which is actually one of my biggest weaknesses. Many of the strategies require you to build rapport with the other parties, which I find difficult. So can the courses be a good investment. In my opinion yes they can, but not for everyone. Some people will make a lot of money as a direct result of having done the courses, but other (Probably many more) won't because, either: With courses, just like with books, most people read/attend them and then take no action. You can't blame the book/course for that. They expect instant results from little effort. The strategies work but no-one said they would be easy (At least to begin with). They don't have the right personality. For example, you could teach me to be a photocopier salesman, but I'd be terrible at it... that doesn't mean that the sales techniques are wrong, it just means that I don't have the right personality/people skills for the job. Many people go on the courses with very little education on the subject. You can't go from zero knowledge to the required level of knowledge in one course... I spent 2 years immersed in education BEFORE ever attending a course. On that last point, I may be wrong but one man in the video (Andrew W) seems to fall into this category. He seemed to know nothing about property investing at all and thought that he could do a course from cold and come out an expert... it just doesn't work like that. I think more should be done to ensure that only people that have a certain baseline knowledge can enrol on one of these courses. So in summary, I don't think courses, even expensive ones, are necessarily a rip off. I know of several very well known property investment companies that use hard sell techniques to sell their courses, which is wrong, but equally I know of at least one very well known company that doesn't (They do use some basic techniques such as scarcity, but to a relatively minor level.). Please don't flame me too much, it hurts. ;) Ben
  23. If your buying now will you then sell again within 5 years? Or ride it out when the bust comes? What is your strategy
  24. Hi All, My partner and I have finally taken the plung! We have set up a Ltd company SVP for tax reasons to run our properties through, we both work full time and our time management skills are being tested! My partner is in the industry and manages a site for a large building developer and I own property overseas and have agents who manage that. We have a family member who has four BTL properties and been on a few courses over the years, run her own property management business, is a bookeeper who is well connected within the industry so we have a good mentor. Since we are brand new this is what we have started so far: 1. Registered a Ltd company (only start trading from April 2020) to ensure we get set up properly 2. Sourced a expert tax accountant 3. Chosen our area 4. Driven around the area day and night and spoken to 3 agents 5. Subscribed to Property Hub and Podcasts and listened to two property investment books 6. Network weekly with one property investor 7. Network with estate agents where possible 8. Exploring a domain name, G=Suite, Landlord Software, choosing a logo - WHAT IS THE BEST SOFT TO USE? 9. Resources https://simply-docs.co.uk/Property-Leases 10. Our focus will be Capital Growth to grown our portfolio aiming for 2 per year 11. We have our letter in principal from our mortgage lender 12. Booked to attend a social media event for property investors 13. We are even considering using a sourcing company to get leads to save time finding the properties due to our demanding jobs at the moment Think we are on track but any other tips welcome!
  25. If there are other people in the wings, a cash purchase may be prudant or if you can get a significant discount. Otherwise its more hassle than its worth if you are going to end up with a mortgage anyway @jamesduncan If you intend to live in the property. Remember to discuss it with an FCA Authorised Mortgage Adviser, that is Whole of Market. Such as the team at Bespoke Finance.
  26. Good point! I will put down a large deposit, but there will be a mortgage. Deposit will be big enough to satisfy interest to rent ratios.
  27. Hi, First time on the forum. I have recently set up a limited company with a close friend to use as a SPV, which we have just bought our first property using. I understand the tax implications regarding an ltd, we will not take money out of the company at all, instead, just pay corporation tax and reinvest the money in the business. I own a residential property under my name which I live in and currently rent one of my spare rooms out for £550pcm, which is in line with the rent-a-room scheme guidelines. I am planning to move out of the house this year and into a rented flat with my new partner, but, renting the house out as a 4 bed HMO in the process. My problem comes whereby I am a 40% tax payer from my day job so I want to have the 4 tenants paying straight into the business account, essentially reducing my tax bill by 21%. The rental income is not intended for personal use at all, I put all my savings into the company at the moment, I just want to avoid paying 40% tax on the money I would put straight into the business anyway. Long story short... As a director of an ltd, can I have rental income paid into the company account from personally owned property in the aim to reduce my tax bill. Thanks for the help! John
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