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  2. Ask the solicitor you're using, depending on the mortgage company you can often use the same one to give the advice. If not, have a Google for personal guarantees - we used a company that provided a solicitor via Zoom for a fixed fee. It's a nonsense anyway - "do you realise you'll be personally liable for the mortgage if the company didn't pay it?" And that's the extent of the advice...
  3. Mortgage company asking for evidence that i have sought independent legal advice in relation to personally guaranteeing Ltd Co BTL mortgage. Anyone recommend a solicitor? Ideally in Manchester / Northwest
  4. For me, a bathroom on the same floor as the bedroom is a must-have. I have some urinary problems and I go to the toilet a few times per night, going down and up stairs, all the night is tiring))
  5. Hi Stuart, Long time no speak! I hope you're well. An EWS1 B2 rating means that combustible materials are present in the external walls and fire risk is deemed significantly high that remedial works are required. If the surveyor only issued this report in May this year, it's likely that the recommendations from the earlier assessment in 2019 were not completed, which would raise alarm bells for me. In my experience, most mortgage lenders won't lend on a B2 rating and any that do will require a remedial plan to be in place, so what you've requested from your solicitor is something that they would almost certainly need to obtain for the lender anyway. Since lending is going to be restricted, that also restricts buyers, and so can limit growth. Therefore, it's vital to have confidence that rectification works are scheduled (and already costed) so that the EWS1 can be upgraded to an A rating in the near future. If the works hit any snags or additional costs are incurred, that would have a negative impact, so it's important to be aware and comfortable with the risks. There's potential to get a good deal now while there are finance challenges, but it's only a good deal if you have confidence the rectification work will be completed soon. Feel free to reach out if I can help further. Chris (www.fintentional.co.uk)
  6. Last week
  7. I’m reading you will pay money into your company in order to pay down mortgage debt? The only tax implication might be that you pay more tax as cost of serving debt is lower so less costs to offset rental profit. to withdraw profit from company your options are repayment of directors loan, salary or dividends or combination of the three.
  8. I viewed your instagram. Your photos are really awesome! I would really consider content creation (blogging, youtube etc.). If you want to go travelling, it would be much easier if you can make money while travelling. I appreciate that you are time poor, but I would keep this in the back of your mind. I love Norway. The country is stunning and the people are very respectful/tolerent. It's also off the beaten track - which I like! BTL is good for a 1st investment, as you can learn about property. If you want to quit your job, then you won't do it with BTL alone. You'll need to work on more profitable deals, e.g. HMOs or commercial. I mentioned SSAS pensions in the last message, as you can lend money to yourself and buy more properties with your pension funds. I talk about these strategies on my property blog Happy to discuss further over email or a quick call if you want
  9. Hi Andy, Great to have you here! I have one possible suggestion. Have you considered investing in the North of England? You can find great properties under £150k, that yield above 7%. Your money can strectch a lot further I'm based in London. Buying up north enabled me to supersize the growth of my portfolio. When you go to Leeds/Manchester etc., it's full of investors from London! I have my own blog - link here. There's tons of free education and articles around property investment. I cover commercial, residential, HMOs and many other strategies.
  10. Hi Andy, There shouldn't be any tax issue when you repay your loan, although your lender might levy some charges. You will need to check the paper work. Director's loan is good idea, as your company can then repay the money back to you - tax free. There are different ways to withdraw profits from a company: Repay director's loans Pay yourself a salary Pay out dividends The best method will depend on your personal circumstances and your other income. Many investors choose a mix of all 3. I wrote an article (link here), which describes how to withdraw money from a limited company. It covers each of the above methods in detail and talks about the tax implications.
  11. Hi Hubbers, We had an offer accepted on a city centre apartment in Nottingham a couple of months ago. We were aware that in 2019 the previous managing agents had had a fire risk assessment carried out which had some recommendations that the agents subsequently actioned. In May 2022 a surveyor was organised and issued an EWS1 with a B2 rating. The building is an old mill that was converted into apartments a number of years ago and as such, has no external cladding so we assume that it is cavity insulation that the report refers to but await confirmation on the specifics. In the meantime, we have spoken to our mortgage company and shared the details of the EWS1 and they're happy to still provide a mortgage. However, through our solicitors we have asked for a remedial plan, schedule of works and proof of funding going forward but until then we thought we'd reach out to the community and see if anyone else has been in this situation before that could give us some things to look out for when we get those details back from the solicitors to help focus our decision on whether or not to proceed. Its not the first time we've had EWS1 issues, but so far we have only purchased off plan so this is new to us as we look to purchase second hand. Appreciate any thoughts and pointers!!
  12. You say you work full time, and you clearly earn a good income from your job to have saved such a sizeable amount. Therefore, I would place a fairly high value on your time, and as such I would not be recommending high-effort high-risk hands-on strategies. Your time is better spent in your day job than managing properties (even if you use a managing agent, higher yielding strategies like holiday lets or HMO's are very time-consuming). In your situation, I would keep it simple and invest in safe BTL. Probably not locally in East England, but in cities in The North where price growth is strong, yields are better, and rents are increasing rapidly. Even though rental returns won't look amazing initially, strong rental inflation means that your income is likely to grow quickly. The majority of the wealth generated by property is from the capital growth anyway, so this is the best approach if you're investing for a 10+ year timeframe. Your alternative is to consider commercial property. There's more risks than with residential, but you can achieve 10% yields with less work than holiday lets or HMO, so it's a good middle ground. Chris (www.fintentional.co.uk) Property Hub recently published a video advising some of the risks with holiday lets:
  13. Hi Andy, Personally, I would just look to re-fix your mortgage for another 5 years. Despite rates increasing recently, you'll still be financially better off using your cash to buy another investment property than you would be paying off the mortgage. Also, average rents have been increasing rapidly over the past two years, so even if your mortgage payments go up, the chances are that higher market rents would negate the higher costs. Remember, if you are really still worried about higher interest rates, you could always pay it down partially and just take a smaller mortgage to a level where you feel comfortable. Ultimately though, if you're already happy with the size of your portfolio and not looking to grow further, it can be fine to clear your mortgage if it makes you feel better, despite it not being the optimal decision financially. If you do decide to clear the mortgage it's a simple process. Assuming you are using personal funds it would be a directors loan to the company. No tax issues that I'm aware of. You can continue to withdraw profits from the company in the usual way via salary/dividends, or you can take profits tax-free as a return of the directors loan. I am not a professionally qualified tax advisor, so you should consult your accountant for verification. Chris (www.fintentional.co.uk)
  14. Usually just a good credit history and sufficient funds. Some lenders may require a bigger deposit (for example, only offer a 65% LTV rather than 75%). The market is always changing so it depends what products are available at the time. Always best to ask a broker. Also on R2R strategy - in reality it's almost impossible to make money doing this. Certainly not a strategy I would recommend!
  15. Hi I work full time (computing industry) and have been fortunate enough to save a sizeable amount which I'd like to invest in property. I have considered BTL but the average yield where I live in the East of England isn't fantastic. I've viewed multiple properties and the average purchase price for a 3 bed family home seems to be around £300k. Smaller terraced house prices around £200k would offer better yields but these tend to be in not so nice areas and I'm left wondering whether the bigger family homes in the nicer areas would be the better long term buy? Another option is to purchase holiday lets as there's several very popular vacation hotspots close by. I've viewed several of these and although being substantially more expensive (£500k for a 2/3 bed cottage) these tend to generate a yearly net rental of around £30k after management/cleaning fees etc are deducted. I've created a limited company in preparation for buying a property. I'd greatly appreciate your thoughts. Cheers
  16. Hi Nathan Hope you are well We’ve refurbished a property and now looking at switching our finance across to BTL mortgage. Wondering if you could provide an illustration for us. Property has now been valued at £280,000. rental £850 Kind Regards Laura Newton
  17. Hi I have a BTL property within a Ltd company. Mortgage rates will rise soon quickly and I am at the end of my mortgage term. I have funds to clear the mortgage and I am inclined to do do. Questions: Are there any tax issues I shold be aware of if I was to pay off the mortgage? I guess it should be in the form of a Director's Loan?? What is the best way to withdraw the profits from the company? Many thanks for your help Andy
  18. Hi I have a BTL property within a Ltd company. Mortgage rates will rise soon quickly and I am at the end of my mortgage term. I have funds to clear the mortgage and I am inclined to do do. Questions: Are there any tax issues I shold be aware of if I was to pay off the mortgage? I guess it should be in the form of a Director's Loan?? What is the best way to withdraw the profits from the company? Many thanks for your help Andy
  19. Hi I'm a small investor with 2 proprties in the SE of England - 1 in my name and another within a company. Always looking for advice or guidance thanks in advance Andy
  20. Hi EvolutionBlogger, thank you so much for responding! I really love the fact you're also an avid traveller like myself. What would you consider to be your personal favourite countries you've visited? Feel free to check out my Instagram page... https://www.instagram.com/gotlostbackpacking Regarding your points, - I definitely will be investing in the North. I lived in Manchester for 10 years and have good area knowledge, but I'm also open to investing in other areas including Leeds, Bradford, Hull, Liverpool etc. - I also understand BTL isn't a get-rich-quick scheme, however, it is a lower risk when compared to BRR/flips, plus I feel it is a better option for me as a beginner? I must admit, I have also considered R2R in HMO's as a way to generate income, however, I'm unsure how this would fit around my full-time job? - And agreed, I will need to have a good system in place to allow me to do the things I want, without late night skype calls as you mentioned haha As for writing recipes, well, I'm not sure that's something for me to be honest, but totally understand what you're saying.
  21. If you own 5 rental properties, then you will likely be a higher rate taxpayer, and pay tax at 40%. In such a scenario, a ltd co will normally be the best option. Inside a ltd co you pay corporation tax at 19%. This looks pretty good, compared to income tax at 40%. Also, Section 24 tax rises don't apply to limited companies. There are other things to consider, but the differential in taxes is a pretty strong reason. I wrote an article which provides full details about the differences - link here. A company is also better for inheritance tax. There are reliefs that you can claim, when inheriting a company.
  22. Thanks, Chris, for taking the time to respond and for answering my question regarding BTL mortgages. I was a bit surprised when he told me this, I'll be honest. But I'm glad that isn't the case, although it does sound like my options are a bit more limited regardless. In my scenario being FTB/L would a guarantor be needed, or just a good credit history + sufficient funds?
  23. I don't think that a £7,000 credit card or loan would significantly impact your credit report. Both a loan and a credit card are unsecured obligations, so I imagine that most lenders would not view the as different to one another.
  24. Hi Chris, Welcome to the forums. Great to have you here! In general, you need to pay CGT and Stamp duty to move properties to a ltd co. It's possible to avoid these taxes, by using partnership incorporation and S162 Incorporation Relief. I wrote an article about it - link here. In the long term, I think that ltd co are the way to go. Taxes are significantly lower for most people.
  25. Hi Shane, I love your ambition! I'm sure you will achieve your goals. Here are some thoughts: Don't buy you 1st property in the south west. It's expensive and yields are low. In the North of England, good BTLs are avilable for under £150k. That way you can buy quicker and get moving on your journey If you really want to quit your job and travel, then BTL alone won't get the job done. There's not enough money in BTL. As you get more experienced, look into more profitable deals. e.g. HMOs and commercial property Do you have a pension? You can convert it into a SSAS, and buy properties inside the SSAS If you want to travel, then make sure you have a good agent to manage your properties. You really don't want to be calling up plumbers on Skype, in the middle of the night I too share your passion for travel! I have my own travel blog - link here. I would highly suggest that you try to make money while you are travelling, and not just reply on property. This will make your goal far more realistic. Do you know what the most profitable niche on the internet is? It's food blogs recipes. Food blogs and Youtube videos are extremely popular as people need recipes. You could make money while travelling, by providing recipes online.
  26. Hi Shane, No, you don't need to have a residential mortgage or own your own home before getting a BTL mortgage - that was incorrect advice. As an example, if you're familiar with Rob & Rob from Property Hub and The Property Podcast, then Rob Dix will openly say that he doesn't have a residential mortgage because he prefers the flexibility of renting, but he has a portfolio of BTL properties using mortgages. That said, you will have less options as a FTB/FTL (First Time Buyer & First Time Landlord) and the interest rates available to you will be higher than if you were already a homeowner. Not all lenders will lend to you, but some will. This purely comes down to risk profile for a lender. If you already own your home with a mortgage, you have a proven track record of paying a mortgage on time. You also have another asset that the lender could force you to sell if you fail to repay your BTL mortgage, so there's much more security for them. Ultimately, it's worth paying higher rates initially to get started as long as your cashflow is still positive, and then you'll have more options in future when you come to remortgage. I would always recommend working with a broker who specialises in BTL as it's not a simple process. Chris (www.fintentional.co.uk)
  27. Which is best is a question only your accountant could answer, as it depends on other income you recieve, the rent and interest on the portfolio, and a slew of other factors you probably dont want to share online. Should you look to move a BTL property owned personally into a company that is considered a transaction, and so CGT and SDLT would be payable, ontop of the admin fees from brokers, lawers and accountants, and the fees from SPV lenders to refinance. Its usually prohibitively expensive and out of hundreds of clients, very few have found it to be viable. There are some rare exceptions where you might be able to get a CGT exemption if you can demonstrate that its your primary business, usually by the amount of hours a week you spend managing the properties (typically 20 hrs a week consistently and you have to be able to prove that). I recommend speaking with an accountant and perhaps forecasting roughly what you think your portfolio will be worth in the future and ask them to model the costs via both personal and SPV ownership, then speak to lawyers, brokers etc to get the costs and decide if the tipping point (SPV will always be more expensive in the short term) is soon enough to be worth it?
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