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  4. Hello Litigation is a matter of damage control. Assuming you are not not going to get any property from this developer, it either means that you loss £9k or you get majority of the amout back. For example, assuming if you get £10,000 (including interest) and: if the legal costs are like £3k (and you recover about 70%, so you pay £1,000 instead), you would get £9,000 back in total; even if the legal costs are like £5k (and you recover about 70%, so you pay £3,500 instead), you would get £6,500 back in total. This means that your loss would be limited to the difference
  5. Hi @ayns This is quite an interesting topic. I assume you are (or the seller is) owning the proeprty under your personal name (instead of a company-ownership), and the property is a residential property? In such case, you are right that it is a regulated activity for the purposes of the Financial Conduct Activity, which would involve a lot of regulatinos and licencing, etc. However, if the property is not under your (ot the seller's) personal name, it would be quite straightforward, provided that you are not (or the seller is not) selling / leasing to a connected person (such a
  6. Hi Rich, Its good to have a plan and you seem to know what you want. Buying 5 or 6 properties in the next 2-3 years is quite ambitious, especially when the market is as hot as it is right now. You don't say how you are going to fund the p purchases but be aware that once you own 4 properties you become a 'Portfolio Landlord' and mortgage companies have to comply with more rigorous screening - more paperwork etc. Leverage is certainly an advantage that property has over stocks & shares however when you want to release some cash remember you can't sell half a house so CGT comes int
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  8. Thanks Kerry for your response. Unfortunately I don’t have a lawyer. My solicitor who done the Conveyancing was not able to help or advise on legal action. I had read about the under £10k rule regarding not claiming costs but I didn’t know about the interest. Or that they would use a rate of 8%. That would be good but it would still not cover legal costs if they end up at £2k or £3k or more. And regarding buying back in, the only reason I would do that would be so that the last 3 yrs of having £35k tied up wouldn’t be for nothing. As it is now I get no return in terms o
  9. An absent landlord might actually work in your favour. I don't know whether you have sufficient funds to purchase the freehold. If you do, you might want to consider doing so at this stage. Whilst the process is complicated, an absent landlord means that you could potentially get a vesting order to buy the freehold and there is no one to dispute the amount payable to purchase the freehold - it is just a matter of valuation from a surveyor. For the avoidance of doubt, the above (a) does not constitute legal advice (and no lawyer-client relationship is formed in any way) and (b) is set o
  10. Hi @Seamus Sorry to hear that you have had to go through this. Given the experience thus far, I do wonder whether you should get a property from them. Personally, I would not - there are so many properties to invest in... Generally (and I do mean generally, since there are many elements that are in play, which will need to be checked), you should be able to sue for £9k + interest (it could be 8%, so about £1,000 after a year and five months). Since the money (£26,000) was paid back late, you could again claim interest for the the period that it was late. As to whether
  11. Hello all, Just starting out in property investment, my wife and I, at age of 55 and 52, although already own our main property ( with mortgage - about 20% LTV). Based in the East Midlands, in the Charnwood Forest / National Forest area - in the middle between Derby, Leicester, Nottingham. Although not limited to that area from an investment perspective. Strategy is: a) Build up a portfolio of about about 5 to 6 basic buy-to-let properties, over the next 2 to 3 years, fairly low level of effort (passive) as working full time. b) Enter semi-retirement in about 5 to 7 years
  12. Looks like a very complicated scheme, are there ways to sell your property fast and profitably at the same moment?
  13. Hi Adam, Thanks for the feedback, much appreciated. My broker informed me that the £498 monthly payment would indeed reduce the loan (I wonder why money saving expert, along with other basic searches on the internet, says that it doesn't. It makes no sense!). I can also pay down the loan after 5 years with no early repayment charge. Just some details about the offer: Amount and currency of the loan to be granted: £402,000 Duration of the loan: 30 years Type of loan: This is a Buy To Let loan with a term of 30 years on an interest-only basis. The interest
  14. Hi, 3 years ago I purchased an off plan apt through a well known Developer in Liverpool. The development was in central Liverpool and was the conversion of an office block into apts. It was meant to be completed in March 2019. This did not happen and after two months of trying to contact the Developer to no avail and with the advice of my solicitor I pulled out of the deal after the long stop date of 30/4/20. According to my contract I should have been refunded my deposit including reservation fee of £35k within 4 weeks of pulling out. That would have been on or before 30/5/20.
  15. It is really difficult to make a lot of money by flipping unless the market is rising strongly. If the market is strong then it is difficult to buy at a good price - catch 22 really. Given that you are then going to pay 40% tax on your earnings its really difficult to make a decent return on your hard work. Many people start with your idea and then become LLs because the surest way to see the capital value of your property increase is to keep it. If you do that you might as well rent it out while you wait and hey presto you are a LL! Once again, the 40% tax will really hurt, but when you
  16. @mike_jb https://www.taxcafe.co.uk/property-tax.html I cannot recommend these books highly enough. Best £20 you will ever spend - I have both of the first titles on that page and both were great. I am a higher rate taxpayer too and my wife doesn't work and I ended up buying property in her personal name (standard BTL not flipping) as it worked out more tax effective for what I was trying to achieve. So definitely explore your options before committing to either route. Note that you don't need to split the income 50:50, you can have a deed of trust which streams 99% of the incom
  17. Why not use an assured shorthold tenancy and then it can just roll over?
  18. " it does not reduce the loan at all but only the interest payments you would end up paying" I think that is contradictory. Paying down your mortgage reduces the loan which has the effect of reduceing the interest payments, as the interest is charged on a lower amount. "Does this mean that an overpayment of £498" What this is "normaly" describeing but not having read your offer. Is that they give you an "OVERPAYMENT ALLOWANCE" so you can paydown your mortgage by say £2,000 a year but if you overpay by £2,001 they will start chargeing you Early Repayment Charges (ERC). The ERC's
  19. You can get a "Fee Free" broker but the reviews i've seen is they are mostly residential focused. They also have to have 2+ cases on the go for every 1 case a fee charging broker has to make the same kind of living. So you may not be a priority as you wish to be. Though Portfolio Landlords typicaly find fee's disapear with there broker. As the broker has a lot of the "required" information already on file anyway, if the client is making regular purchases and remortgages, that the broker is happy to cut back a little. The team in my signature would be happy to help, they assist a lot
  20. I need the name of your EPC assessor! My recent EPCs have gone down not up - one has lost 10points in 10 years!
  21. Hi @selenamorrissel. Where in your journey are you?
  22. Welcome to the forum @selenamorrissel! How are you getting on on your property journey?
  23. Thanks Kerry much appreciated. I hadn't considered being able to gain agreement with the existing freeholder, my fear is though that the freeholder may not be contactable, the leases were drawn up over 100 years ago. It was common in the North for houses to be sold with 999 year leases and its often the case that the freeholder is classed as absent. I'm trying to find a solicitor who specialises in such matters rather than use our normal conveyancer but not had much luck.
  24. Hi all, I have found a bit of conflicting info. I thought that if you make an overpayment with an interest only mortgage, then that would reduce the size of the loan. However, I have read through a few articles (such as one on Money Saving Expert) which claims that it does not reduce the loan at all but only the interest payments you would end up paying. I have been accepted for an interest only mortgage, fixed for 5 years. It says 'you have the right to repay this loan early, either fully or partially.' I would be charged fees of 5% in year 1, 4% in year 2 and 3% in year
  25. Hi @Chaz_ It is quite difficult to form a view without looking into the title documents and details. However, the situation seems a bit odd, at least in terms of structures in modern days. You should get your solicitors to properly look into this to determine whether there is any issue even on the legal title level. You don't have to necessarily buy the freehold at this stage to achieve your aim of creating separate leaseholds, but the freeholder's participation (/ consent) would probably be needed. If the new leaseholds are going to be on substantially similar terms, and you pay
  26. Hi @mike_jb I concur that you should seek a tax adviser's opinion as to the best structure for you, since your case is not straightforward. You might want to also ask your tax adviser as to how best to withdraw money from the company - this withdrawal might well be more tax efficient if you do it via dividends, but it is important that you get the right tax position from a tax adviser, especially since tax law changes constantly. After consulting with a tax adviser, you may even find that company might not be the most tax efficient tool for your circumstances after all.
  27. Welcome! i'm also a newbie here. literally just joined this website :D
  28. Thanks @Mark Rocks, I'll take a look. I've watched hours of their podcasts. Very helpful 👍
  29. First of all I’ll introduce myself, my names Lee and I’m looking for advice around 2nd property tax. I am currently renting after selling my residential and I will be in the (hopefully) not so distant future be buying another residential. In the mean time I plan to partner with another investor, setup a Ltd company and get into the BTL market. I am aware that we would be charged 2nd home tax on this along with and Stamp duty tax. Will I get charged 2nd home tax when buying my residential if I go ahead with my plans? Or will it be treated separately with being in a Ltd company?
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