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stuart h

Established Member
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About stuart h

  • Rank
    Established member

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  • Website URL
    http://www.hepburns.co.uk

Profile Information

  • Location
    Edinburgh
  • Property investment interests
    Auctions, Private Sector Leasing, LHA, HMO, holiday lets, refurbishments, building warrants, building preservation.
  • My skills
    CIIA.
  • Interests outside property
    Tennis, skiing, surfing, kite-surfing, scuba diving, swimming, road biking, tracking motorbikes, krav maga, hiking, white water kayaking, chess, travel, business.

Recent Profile Visitors

563 profile views
  1. Hi John. You may wish to consider getting some specialist tax planning advice if you haven't already done so and then work back from there. Is there potential IHT due on the gift?; does your mum appreciate she may lose her home if things don't work out? An alternative may be to encourage your mum to remortgage the property herself. This has the added benefit of a more attractive personal, rather than BTL, loan rate and a higher LTV. She can gift you a set amount of the remortgage to kick-start your portfolio. At this point you can do two things; sign a memorandum of understanding that th
  2. Hi Jo. 1. In my own opinion buying multiple investments at once has both pros and cons attached to it. Pros - Able to take advantage of bmv deals, not ignoring a deal simply because of timing, the compounding effect of the increase in rental profit; Cons - No pound-cost averaging; possible cash flow shortage due to unanticipated expenditure; unable to put into practice the knowledge gained from previous purchase(s). The question really comes down to your own level of risk appetite. Personally, in your position I would get the first rented out before moving onto the next. Atletico....Goo
  3. In Edinburgh many properties have a history of subsidence and are perfectly safe to buy. The surveyor will usually note whether this subsidence is long-standing, or whether a specialist survey is required. You don't mention whether these results were a specialist survey? One of my first ever properties had a bulge in the gable end which was a consequence of long-standing subsidence. The property was subsequently pinned and hadn't budged an inch in two decades. Both owning and selling the property were a nightmare. The lender provided a loan on the basis of a favourable specialist survey
  4. Hi Kieren, I can't upload the spreadsheet on the site so it's in dropbox: https://www.dropbox.com/s/h2e0j2pfsdqb8j1/%23Financial%20Statement%20-%20Personal%20%26%20Housing%202014-15%20v003%2018032014.xls Cheers Stuart
  5. Hi Arin. In terms of being creative how about the following; Purchase your principal primary residence as soon as you have saved the funds required. Put down as little as possible eg 5% under help to buy? Buy a two bed property that will rent well at a later date. This serves two purposes. It allows you to rent out the second bedroom under the rent a room relief scheme, tax free. It also allows you to benefit from house price inflation while you strive towards the £50k lump sum. Finally, you can rent the property out for a few years without, broadly speaking, paying any capital gains ta
  6. Hi JJ. You need a good insurance broker, a person, rather than a call centre. It's the broker's job to interpret the policy and guidance. Is the property really empty during the refurb, or did you have a tenancy agreement in place in the beginning, which subsequently fell through, and you decided to do a bit of work on it afterwards and were in the process of informing the insurer when a claim arose? Get copies of your tradesmen's PLI. If they don't have it you'll need to absorb this cost for them, and it isn't cheap, trust me. With regards to the second question some insurance policies
  7. Some really great responses above. Although I use a cash buy, do up, refinance, keep strategy myself I'm not sure I would suggest that for someone starting out. Thee are inherent risks in a cash purchase, particularly a fixer upper. The absolute worst case scenario is having your funds tied up which subsequently can't be released; no building warrant, listed planning consent, unsuitable for mortgage, a regulated tenancy, dry rot etc. Of course, anything' fixable given enough time and money, and there are mechanisms in place to ensure you don't get caught out with any of these. HOWEVER, it
  8. Hi Kieran, I've been using one for a few years that I'm happy to attach a blank version of when I get the time. I just knocked it up one day and have been amending ever since. From experience, keep your refurb costs separate. Upload them onto a Dropbox/cloud spreadsheet but keep it simple. It will help you apportion some of the expenditure for Tax purposes. You can update it every couple of days and reconcile against bank statements. You can easily go through £5k in a week so it's important to manage costs. For long-term cash flow, it may depend what you're doing. Is it furnished holiday
  9. Thanks for taking the time to respond. I agree offsets are a great mechanism but I'm not aware of any btl offset products and, since I don't own my own home, I can't take advantage of these (the funds have come solely from sales and remortgages). It's a valid question because the process for preserving a cash lump sum against the effects of inflation should remain the same, whether that's £15k, £150k or £1.5m and three months or a year. It's just frustrating when the IRR from property purchases is so attractive. However, two current accounts it is. I haven't yet figured out my own defensi
  10. Hi David, Am based in Edinburgh myself. Key points as follows. Conveyancing will be based on risk which is based on purchase price, the cheaper the flat the cheaper the conveyancing - you don't mention the price. Consider approaching one solicitors firm to conduct both the sale and purchase of the property. This should be fine as long as two solicitors are involved managing each end of the transaction. Ensure you're not charged marketing or commission fees. The sale will only require an EPC so could be as little as £900. The purchase can be anything from £700. Both include searches an
  11. Hi there, I wanted to ask other investors how they manage six figure cash lump sums, say £150k? I spent a bit of time looking today and got as far as; - £30,000 premium bonds (as a higher rate taxpayer) - £20,000 in a Santander current account paying 3% taxed (small admin burden of managing two direct debits) - £15,000 cash isa (from June onwards) The cash needs to be readily available to fund new property purchases (within 21 days). Also, do any of you operate with a cash 'buffer' eg comprising x months voids per property, x% interest rate movements or x% LTV? Or would these vary in re
  12. Tony, Read the tax cafe book on property investment as a limited company. In general, you will be better in the beginning as a sole trader.
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