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  2. Welcome Craig. You may benefit from joining our WhatsApp networking group. If you’d like to join send me your number and we will get you added in
  3. Thank you Stuart! It is very kind of you to take the trouble to answer my question. I will go to the Current lender and ask permission. I really am most grateful to you : D
  4. Thanks Stuart. That's a wonderful response. It's very interesting to hear. I had no doubts we were just as bent as they were previously. Greed will always rear its head. I've heard about London being an epicentre if money laundering too. I'm sorry I dont understand the point around the banks (I'm blonde) were they cash rich or cash poor? I'm assuming poor, so how did they have so much money to lend out, was it because of those bond schemes? With regards to unemployment, do you think the majority of these will be renters opposed to home buyers? This is my thinking, previously people had to sell, lots of unemployment, negative equity etc... equals motivated sellers. Did the banks not begin to deem these people as high risk after 2008, effectively strongest testing, refusing unrealistic valuations for remortgaging etc to prevent over leveraging? I know before mortgages could be 125% where as recently the highest is 90%isnt it Resi and 80% BTL, now changed to 85 and 75? Also dont the banks have to keep so much in reserves now too? Or have I imagined that? If the interest rate goes from 1.5 to 3 wouldn't this be factored in to affordability testing? I guess if you're unemployed it's a big jump, but for most it will still be cheap (esp compared to renting)? Unemployment will rise for certain...I'm just not sure as to the extent. As for automation and AI...true, but like rob and rob say I think this will complement what we have and jobs will be created elsewhere, after all this isnt new, and it isnt in the govts interest to allow AI to replace jobs is it? I'm a bit of a dreamer so maybe I'm naive here. I'm quietly wondering if the opposite to The Big Short is going to happen. I think a lot of people cash rich are waiting, the economy will definitely suffer, the media are banging the drum about negative this and negative that... I'm wondering if prices might go up? I dont see as much stock coming on the market because I dont think there will be mass defaults due to stricter testing and lower interest rates, there are really good yields to be had, home ownership never reached pre 2008 levels, the bailout money came before the crash, the buyers will outweigh sellers this time... I'm definitely not trying to convince myself, I'm only small time, and the houses I look at only change by a few thousand in peaks and troughs opposed to hundreds like down south.. I'm just curious if the reverse might happen (in respect of housing only...not the economy).
  5. Hi James, Yeah 6k for heating does seem crazy so Im taking that estimate from the management company with a pinch of salt and doing my own research. I notice you say you're an electrician... you wouldn't happen to operate in the Wirral area do you? or have a recommendation of a good electrician that could install some storage heaters? Cheers Richard
  6. It's the mid-way point of our Strategy September and today we're talking flips. Taking on a flip strategy is probably one of the more glamorous strategies there is. But it's also one that involves a lot of hard work and dedication. If you're wanting a hands-off strategy then this one isn't for you. But if you're willing to get your hands dirty, then this is right up your street. Have a read of our latest resource for everything you need to know on flips. https://propertyhub.net/flip-strategy/
  7. Hi, I was just wondering what the general view is about online accountants for property companies & individuals investing in property? For my purposes (1 personal BTL, 2 in LTD company) the transaction volumes are low and I assume the value that an accountant can add will be fairly low. Therefore, I have looked at online accountants who are often half the price (or less) than a traditional accountant. Specifically I have looked at 'Cheaper Accountant' & 'The Accountancy Partnership'. Not sure if anyone has any direct experience of these companies? Or just online accountants in general? Thanks, Brad
  8. You need to speak to a solicitor and accountant on this one as you need to change the ownership % of the property so when you decalre tax its on that basis. It is common however for a higher rate earner to own 1% and a basic rate owner to own 99%. The mortgage lenders dont care, you are both 100% liable for any loans regardless and they dont need to be updated.
  9. Id put your mind at ease and simply call and request permssion to let. Whilst i dont get involved generally, over ten years ive heard very few requests not be granted. It wont harm to make the enquiry and get that part resolved. There are a good handful of lenders that will do a lease of this duration though. A redeeming fetaure is the fact that there should be no cost aside from the admin, because no one benefits with a share. Its in everyones interests to extend. Id expect lenders would understand this and be less apprehensive. You could do both, get consent to let now, on the basis that its short term whilst you extend the lease and will be remortgaged away to a BTL when thats resolved. If you really cant get hold of the other freeholders and want to release cash, remortgage to someone who will do the short lease and take the hit on the likely higher rate.
  10. Hi All I want to remortgage my old flat to pay off the £27,000 still owing and to release some capital to buy another Buy to Let. The Property is worth £230000 and I have refurbished it to a high standard. I got my solicitor involved at the start and he told be that there is only 68 left on the lease. (I had bought a share in the house freehold and thought it was basically freehold - Doh!) Anyway I cannot get hold of the co-freeholders (3 of us in total) to extend the lease and my remortgage is effectively on hold. I have a tenant moving in in October and I am feeling really stressed. I thought I could just remortgage to a B2L, pay off the outstanding mortgage and let it out. Now I have to ask my current lender for permission to let. What if they say no?
  11. My advice is to buy the best house you can in the best area you can and refurb to a good standard. This should achieve a higher average rent and should also attract a decent tenant. Then do your due diligence on your tenant - credit checks, references etc. If there are any red flags don’t rent to that person. Don’t fall for sob stories and don’t try to do someone a favour. Once you have selected a tenant do regular inspections, keep up with repairs and encourage tenant to report problems promptly. In short - be a good LL and hopefully you will get a good tenant!
  12. Hello Everyone, I hope you're all bearing up this crazy year. I have a question, my wife and I own two properties, including the one we live in. We're considering letting one out. Its a flat in London we don't need now that the pandemic has allowed me to work from home indefinitely. My wife doesn't work. She's busy enough with our little people. The question is, because both properties are in both names and my wife doesn't pay income tax but I do due to my employment, can we use her income tax allocation regarding any rental earnings? Thank you for the advice in advance, TC
  13. Hi All Is there anyone in here that sources investors for overseas property? Thanks in advance.
  14. Hi, Did you get a chance to read my direct message? I think I may be able to help with a couple of things? Kind regards, Matthew
  15. Hello, Thank you for reading myself and wife's joint BTL journey. The vast knowledge and resource that is available here is amazing. I purchased "The complete Guide To Property Investment" by Rob Dix. Which has led me here! Unfortunately I discovered this information in September 2020, few years after starting our BTL adventure. Our Journey started in 2018 where we purchased our first BTL in Coventry. Why Coventry? Well, Coventry is home is Cov university which is known for there engineering education and also home to Jaguar Land Rover engineering centres. Coventry is also experiencing growth with lots of new buildings and projects. Buying our first BTL, we was scared and excited. However with due diligence, research and speaking to the right people, we proceeded with the purchase with confidence. Because I am a bit of a nerd when it comes to Excel and spread sheets. I knew all my expenses, potential rental income, net yield & ROI before we continued with the purchase I identified. Almost 2 years on and we have achieved a ROI of 10.07% Over one year later after buying our first BTL, Jan 2020, Myself and my wife was in a position to purchase our 2nd BTL investment. This BTL has also been a success achieving a ROI of 12.21% Here we are in August 2020 in the process of acquiring our 3rd BTL investment. We have decided to purchase this property under our LTD company with the plans to buy a fourth BTL later on this year for tax benefit purposes. Unlike the first two investments which are under our personal names. The long term goal is to retire slightly earlier and have a wealthy income to support us, and eventually pass the properties down to our children. We want to expand our portfolio to other areas of the country and would be keen to hear what area's people are looking at. And how they manage properties so far away you? Thanks for reading, Regards, Craig.
  16. Does anyone have a deal stacking spreadsheet the could kindly let me have ? I just need a basic spreadsheet for stacking deals on BTL’s please
  17. I called my bank today to discuss releasing equity on my current property to invest in a buy to let. They said they cannot release equity for another property/invest. It would only be for home improvements etc. Is this the case with everything going on? Or can I say it is for home improvements and use the money for other purposes? I am based in Northern Ireland, if that makes a difference. Many Thanks Gareth
  18. What lengths would you go to to get started on your property investment journey? Getting the money together to invest in property is the main barrier to entry for most aspiring property investors. It can be challenging and it can take time - but there are several ways to make it possible. And that's exactly what Rob & Rob are discussing in our latest YouTube video. It's live now so make sure you go give it a watch: https://youtu.be/NXF0180YvX8
  19. Thank you Stuart, I had a feeling it was hefty and you just confirmed it. Will definitely shop around. Advice much appreciated.
  20. £2k for a broker fee is a rip off. They get another £400 on top as commission. It sounds like a simple deal, you dont need to hire PWC to do your books... My target average earnings are about £1000 per case (£300 broker fee and average £700 commission). I know many brokers would look at the commission there and feel the need to charge a higher fee to bring their average up to a sustainable amount for their business. If they are sales minded then they feel that one a client is on the phone they can do whatever is required to close the deal and thats their mentality. Personally i dont want to waste my time chasing people, if you like me you'll buy from me and i dont want price to mean im wasting those opportunities because people will, as you have done, take the advice and then go buy cheaper, why wouldnt you? Typically fees range from £300 to £500 which i think is fair and what most reputable small brokers charge. Go some one huge like London and Country and you get the benefit of a very slick machine, but inexperienced staff (You can earn a lot more independantly than you can as an employee in a big firm, they use tech rather than staff experience to manage customer outcomes). If you want commercial or heavy adverse lending then yes (i dont agree with this mind you) you will find fees around the £2k or above mark. Shop around, there are very few brokers i come across these days that are not excellent at what they do, some specialise more than others but its a well regulated and responsible industry. Ask about fees, anyone not upfront about them, or have a lot of fees paid upfront avoid, but most will be reasonable and knowledgeable, the cowboys you mention above deserve to sink under the weight of their presumably lavish offices and company cars....
  21. The issues present in America were absolutely endemic in the UK. London is one of the financial capitals of the world and is without doubt the epicentre of money laundering. We were doing exactly the same. Packaging up dubious debts (not that people knew they were bad loans, they just didnt care, or have any measure of the risk). What occured in the UK though is that the credit crunch, the lack of funds to support mortgages, exposed all sorts of other issues. Like the tides receeding on a beach and exposing the shipwrecks. We had back to backs, where people would buy a house with one mortgage company and their own valuer, then remortgage on the same day with another lender and another surveyor. Effectively leaving the second lender on the hook for 100% of the property. We had back door residential where people bought with a BTL and no income and self cert mortgages where no evidence was required of income and lots of other bad practice that was hideen in the ponzi scheme that was going on in The Big Short, which i agreed was an excellent movie. Added to that banks worked on razor thin capital adaquacy levels and so when people wanted their money, they couldnt get it quick enough, creating a "run" on the banks. It was a house of cards, which is one of the reasons i get frustrated when people say "but, this deal makes sense to me, why are the banks being so difficult"!! Because it was only a decade ago that greed and minimal oversight got us into a bad situation. Brexit and Rona are the same mistakes all over again... Regulation matters, and calling it red tape and waving bendy banana's in anger misses the point. Im confident however that the mortgage regulation today is sensible and robust. Whilst im no fan of the FCA, i think they lack teeth, are reactionary rather than proactive and have an obsession with cost at the expense of positive outcomes, the changes to affordability testing and capital adequacy requirements on banks mean that i dont expect a similiar crisis to emerge from the housing/finance market. I think the big threat is that posed by COVID on peoples employment. We have the potential for mass redundancies, especially across travel and hospitality. If this rumbles on for another year, we cant afford to prop them up indefinitely and many companies will fold. Automation is reducing the number of jobs required within a firm, mortgage brokers included and as in 2008 we will see a drop in incomes because people compete for lower paid jobs. At the same time we have a potential 10% - 20% drop in home values as reposessions rise as a result and that will further stress people with high LTV mortgages who have been comfortable at 1.5%, but cant afford rates at 3% or more. Bear in mind the BoE target for base rate was always around the 3% mark, inflation allowing. Added to that people are still highly leveraged and unsecured debt defaults will undoubtedly rise. I think COVID will force lenders to reasses their traditional methods of assessing risk. Stability over the past 6 years is no longer an indication of stability going forward as the whole world shifts the way it measures productivity. Some or all of these things may be headed off if Rishi is clever, but our divided and terribly unequal society is going to mean pain for some at the relief of others whatever he decides to implement. I dont know what things will look like, but if i took anything from the crash of 2008 is that cash is king, make sure you have liquidity so you can take advantage of opportunities and if you want to take risks, do so with a firm foundation because things can go sideways quickly. On a positive note, i think the private rented sector will remain strong as demand for rented accomodation is sure to rise as FTB'ers struggle and the unfortunate have to downsize. There will be opportunity such as converting office space into affordable residential, and better yeilds on more traditional suburban housing. P.S. 99% of the mortgage ive brokered over the past 5 years have been fixed, and at least half on 5 year fixed rates...
  22. Thanks for reply both, will definately engage a planner. @tom_bradfieldI'll be intouch. The difficulty I'm having right now is sourcing the commercial property with development potential.
  23. New to property and looking to buy 2 BTLs Have just started looking into mortgages and been quoted 3.29% on £90K loan (£120K purchase price) 15 year 2 Yr Fixed The fees are £1800 Lender, £150 Application fee, £1995 Broker fee £400 survey Mortgage monthly payment 251.77 I'm new to this but that seems very high for fees I'm totally on board with paying a fee rather than free service ( nothing free in this world etc) but is this steep? Thanks
  24. Hi, I’m looking for advice or a general discussion on how to help tip the balance towards attracting good tenants in the future? The current climate is full of uncertainty for many people: job security, being able and available to work through COVID, etc. The suspension on evictions is challenging for investors if they’re unfortunate to have struggling tenants. When eventually lifted there may be an increase the number of higher risk tenants looking for new places to live. What are the tools and techniques available to landlords to help tip the balance towards reliable tenants? What do you currently use? Thank you
  25. Yesterday a fellow hubber recommended a film called The Big Short and it was absolutely fascinating. It basically centres on the sub prime mortgage lending in America in the 00s. Effectively showing how greed, corruption, deceit and ultimately giving unaffordable mortgages to people caused the crash. I appreciate this was based in America but I imagine similar practices went off in England. I'm curious from people who work have worked in mortgages a long time; have the practices different post 2008 to pre 2008? To me it appears mortgage lending became and remained stricter since the crash, meaning those given out should be to people who can afford it. I imagine homeowners will also have savings to fall back on to see them through tough times. Perhaps not in all cases, but in most. This coupled again with continuous low interest rates for the last 13 years mean adjustable mortgages are now winning over fixed, opposed to before where the percentages went crazy. It leads me to think the home ownership bubble wont burst to the same extent. I also think a lot of savvy landlords expanded over the last ten years and they're unlikely to default on their low interest only mortgages. It's likely to be renters who suffer. Would you agree on this? I'd be interested to hear from those who are brokers or work in the field. Thank you.
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