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  3. As your situation is not straight forward I would strongly recommend you avail yourself of the services of an experienced BTL mortgage broker. Don't use a broker that just does mainly residential.
  4. Hi Cormac You mentioned that it isn't possible to remortgage whilst on a mortgage that has consent-to-let, why is this? I'm thinking about refinancing my residential property that I currently live in to pull out some cash to invest in a BTL - my original plan was to refinance and then apply for consent-to-let so I can let out my two spare rooms. Is gaining consent-to-let possible after refinancing- or do most lenders require you to wait some time after refinancing? or is it difficult like you mentioned remortgaging was when you have a consent to let clause? Thanks, Sam
  5. You would technically be a first time buyer when you buy a property in the future for yourself or for investment purposes. However, the mortgage you'll have with your friend will be counted as a credit commitment and will potentially reduce how much you can borrow for your own property. Does this answer your question?
  6. there is a free app out there called Lendlord, it has a deal analysis section which works well. I recently started using it and have added my properties and some history. Company is committed to keeping it free and they are updating functionality all the time based on feedback, personally i think the product is excellent but try it for yourselves https://www.lendlord.io/
  7. i looked into it previously and decided to keep my current properties in my own name and buy new ones in the Ltd co. Some costs to consider: You will need to pay stamp duty, potentially you need the deposit in the Ltd co. although i think you can gift it, buying costs via Ltd are slightly more expensive for legals and you will need to provide directors guarantee for each mortgage which costs anything between £100 & £500 per property, you will need to create new lease agreements to put in in Ltd co name, change rental payments etc. for tenants. I have 5 properties in my personal name so i thought it wasnt worth the hassle & costs for me to move them, so i simply add new properties to the Ltd co. Advantages of the Ltd co. are no S24, corp tax not income tax which is lower, but this advantage is lost somewhat if you withdraw money as dividends, can pay directors pension etc. to reduce tax, the IR is slightly higher but nothing to break the bank. Get some advice which it seems you are doing, if you self manage you could have your Ltd co manage the personal properties and reduce some tax that way as your are adding costs to the personal property. It depends though on your current tax position etc. and your exit strategy
  8. i think we are in the mid cycle wobble, but the explosive stage will be shorter that the usual 6-7 years, i think more like 2-3. If we follow other cycles the the drop will only be back to the mid cycle dip prices at worst. Personally i am buying if a deal stacks up for the cashflow, i am at the point where the cashflow means more to me than the capital growth, I am seeing houses sell that are ready to go, the refurb properties seem to be the ones sticking sround a little longer, but i expect that to change once the trades have cleared their backlogs and you can turn around a refurb more quickly
  9. Hi Stuart On the topic of gaining consent to let- is it a relatively quick process to go through with mortgage lenders, or are they often hesitant to grant them? What kind of things often stop a lender granting a consent to let on a property?
  10. If the computer is 100% used for the company business, it can be bought into the accounts the day the company is established. Same applies for tools, but I can’t see how you need tools for a company that doesn’t exist or own anything yet. Once the company is set up, it can buy direct or you can buy and then reclaim the full cost from the company provided the asset is used by the company (cars etc are more complicated but tools and equipment are fine).
  11. It is not generally recommended to mix up investments and trades in companies so it might be wise to complete the purchase in a brand new company. Flipping is a trade and keeping for rent would be treated as investment. if you flip as an individual, the profit will be taxed at the higher income tax rate. You would save some extra costs that could be associated to a company. A company will pay 19% tax on profits but there’s extra tax when you extract profits. if you keep for rent, you will pay higher rate whereas a company would pay 19%. if you are going to add a lot of value to this property and then do more similar transactions, company ownership is likely to be the best option. As a company shareholder director, you could manipulate your income to ensure lower tax rate on profit on sale of the property. You would also lose first time buyer status for SDLT purposes if you buy personally so if you intend buying higher value properties in the future, this should also be a consideration. If you were to buy, occupy and renovate with the intention of living there but later decide you don’t like the property, you should pay no tax at all when you sell although this thread could then be used against you if HMRC challenged and it looked like you hadn’t genuinely intended to live there. Hope that helps and good luck!
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  13. Agree with the above and there are a couple of other points to note: 1. You are unlikely to get another residential mortgage so this will only work if you are planning on renting yourself or if you are moving in with someone else 2. You probably won't be able to remortgage while on consent-to-let so if your current product is coming to the end of its term then you will be stuck on the standard variable rate Hope that helps, Cormac
  14. Hi David, Thank you for this. It's certainly good to know!
  15. Hi Young Joe, Yes we are planning on splitting the utilities, the electricity and water at least. We are considering having the small lower flat as gas free and putting in underfloor heating.
  16. Hello My name is Divya and looking forward to investing in buy to let. I am new to this so would love some advice in the future. Thank you
  17. It depends. Each lender is different. For example you can get a 'consent to let' based on the existing residential mortgage. However you will need a good reason for this request. For example your partner has just died and you are moving to be near family. Or you could be going to work abroad or in another town or city. A consent to let would usually last for 12 months then be reviewed. If the mortgage continues to be paid as normal you may well find the consent to let just carries on indefinitely. Bear in mind with a residential mortgage you may well be paying capital as well as interest whereas with a BTL mortgage you'd only pay interest.
  18. Have you thought about splitting the utilities so each flat has it's own bills?
  19. I bought for £66,000 and sold for £155,000. I kept it for less than a year. It doesn't get much more concrete than that. I have also provided another example in one of my other posts. You can also check Rightmove and see what price HMOs have sold for and check what the house was originally bought for. There are hundreds of examples. You don't necessarily have to prove a track record of stellar rental income. THere is a strong demand for brand new HMOs with no track record. Comparables of other HMOs would be used in stead to prove rental demand/income.
  20. Hi Suzi, for what it's worth, limited company setup will be around £150-£200+VAT in accountancy fees and only takes a few days in my experience (probably quicker if using electronic document signing). Best wishes..David
  21. I'm not advocating keeping HMOs. I'm advocating flipping them. I wouldn't recommend keeping HMOs medium to long term as they are a lot of hard work and don't have a lot of capital appreciation in them.
  22. HMO flips as I described previously, definitely do work if done right.
  23. In reply to Adiel I don't think this was a very lucky first foray into HMO land. I did a lot of research before I got involved. I was also an experienced BTL landlord with an extensive building background. I agree that HMOs do cause a lot of headaches but that is only if you decide to keep them. My strategy was about flipping them. It takes 3 months to convert a house into an HMO. You could say you're destroying a Victorian house but on the other hand you could say you're converting a very run down house into good standard housing accommodation for many more people than before thus helping to solve the housing crisis. I had no intention of ever converting it back into a typical house so those costs are irrelevant. Maintenance is a factor to consider. I don't use macerators in toilets and never would. I'd refuse to convert a house to an HMO if macerators were the only option. Students aren't the only customers for HMOs. Where I invest there isn't a student market! Voids are a problem but this is why you need to do a lot of research and only have HMOs where there is strong demand and you must have a good management company onboard. There was and still is huge demand from foreign investors for HMOs. I'm actively involved with several of them mainly from Hong Kong. Most investors will negotiate with you to try and get a good deal. There is no need to go to the bone if the deal suits both parties. I agree managing tenants can be a nightmare. It is certainly much more challenging than with your typical BTL. But then the yield is better. I also agree that you'd be better avoiding HMOs as a long term investment as BTLs will make you a lot more money and give you an easier life. This is only because capital appreciation is much better with BTLs. The value of an HMO is inextricably linked to the amount of rent it commands. This is not the case with BTLs. HMOs have their place if income is your main goal. If you're mainly after capital appreciation I'd avoid HMOs. I invested in 2 more HMOs of my own after my foray into the market. I bought one for £80,000 (it was a bigger house than the first one in a better area). I spent £50,000 on the refurb and ended up with a very high quality HMO. I kept it for 18 months and made £16,200 net profit on the rent after all expenses. I sold it for £175,000 and made a gross profit on the sale of around £35,000 (excluding rent profit). So in 18 months a very healthy profit. I bought my third one for £78,000 so when sold it will make a very similar profit as my second one (it's on the same street). So I stand by my first post. Converting a house to an HMO and selling one every year, if done right can allow you to leave the day job and have more than enough to get by on.
  24. Hi, I'm looking to invest in a BTL terraced house in Peterborough. I have done all the numbers and can make it work. This will be my first investment. I know at the moment, I would require a license to let the property. The local council website states “The scheme came into effect on 1 September 2016 and will last for 5 years.” Does this mean I might only need a license for a year or is the scheme likely to be extended? I will be refurbishing the property to a decent standard and meet all the licensing requirements. So, I can’t see any reason why I wouldn’t be granted a license. Anyone have experience with this? As a HMO license application is only £150 more, would it be best if I applied for this first? Or should I just avoid this area of Peterborough? Any advice or help would be welcome. Many thanks Stuart
  25. Link not working? Any chance I can get a copy to darren at bpitrust.com would be very much appreciated.
  26. Link not working? Any chance I can get a copy to darren at bpitrust.com would be very much appreciated.
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