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    BTL/HMO houses in Essex .
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    Become successful and financially secure!
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  1. Absolutely the property can be reclaimed to sell at the end of the fixed term with a business case, but how easily? We won’t know until the policies are fixed. It is a shame as the last thing I wanted to do was to sell tbh but I can reinvest the capital in a commercial holiday let business which now seems a safer business, less risk and more control. I may leave the second BTL tenanted, leave one foot in and the other out and see what happens when all changes are in force, but better not to have all my eggs invested in one shaky basket! Who knows maybe next thing will be rent caps to control the rent rises or even Right to buy!
  2. What’s everyone thoughts and plans with this future implementation of the politically motivated Section 21? I have always provided good property and service to my happy tenants but personally I am selling up- selling 1 shortly to be empty property, the tenant has decided not to renew (perfect timing), and undecided a second. The second property, the tenants have only just signed and renewed the contract for further 12 month. They are good long term tenants that love the property, and are very keen to remain long term- the question is do I carry on with them or cancel the contract ( not sure of the process most probably S21? as the new contract is just signed but doesn’t start until June??) if I allow them to stay and S21 ban is in force the tenants may never want to leave, refuse and the thought of having to take them court if I decide to sell next year would be ridiculous. Do I take control of my assets now or take the risk, I’m sure I am not only landlord in this position today- I need to think this one through and reassess but in short I want control of my hard earned money before this BTL business becomes even riskier and I lose control of my savings- tired and sick of this rubbish government strangling us landlords.
  3. Thanks for the email. Its a bit of a grey area as I spoke to an accountant who said you may be liable to pay extra SDLT if change from second home to BTL but I’ll do some further digging...
  4. Hi all. Need some clarity on tax with regards to second home. If I was to change my second home/Holiday home to a BTL or holiday let via a new mortgage would I have to pay the extra 3% surcharge? I purchased the property in 2014 prior to the introduction of the SDLT surcharge. Also can anyone advise on a separate query if I wanted to raise money to refurb - is it better to use fundingcircle or look at mortgages products for the extra borrowing? Thanks all , appreciate any help. Ady
  5. Caroline, thanks for the contact. I’ll see how I get on, it’s currently with principality. It’s a mountain to climb this HL but it’ll be worth it at the top.
  6. Yes they have stated the outbuilding is not to be used as a second home, nor as residential. It is solely to be used as a short term self-catering holiday let only, no person is to occupy the property for longer than 28 days in any calendar year. ....the separate main house will be used by us when we need it as a second home, but with the intention to convert to holiday let so that we can rent the whole estate. I am considering speeding things up with a bridging loan, but will need to look into this e.g. interest rates and criteria. The other option is to try source a HL mortgage lender or take things slowly and fund it myself over the next few years. Its going to to take some effort but I am determined to make it work.
  7. Caroline, Many thanks for the useful reply. The main house is in a very good rentable state ( though not to high standard I want it to be but hopefully good enough for lender), I am now thinking to rent this as a HL, if I can source lender, as it only requires a make over, with an aim to eventually convert the outbuilding to rentable 3 bed HL over the off seasons. I have spoken with a broker today to source a lender, possibly Leeds, fingers crossed. I have a ve a lovely lady that lives down the road that manages holiday let’s in the area, hoping that she can manage the upkeep, cleaning etc. Have looked at quality cottages but like you say they charge 25%, ouch....but could use them to start with when running to build a customer base and feedback - I hope to get the property to a high quality standard. Thanks again for for your input it’s really appreciated.
  8. Any advice appreciated! I have a second home up North which was used whilst working away from home which now sits empty since I’ve relocated back South with work. I am am looking at ideas on how to make the property work as a Holiday Let but not sure how best to fund the project- it’s currently on a resi repayment mortgage with Halifax and tied in for another year on fixed rate. The property sits at 60% LTV and has massive potential as a holiday let due to its location in a national park. The property is a 3 bed country house with an acre land and has a seperare building attached which I intend to convert ( planning agreed) to an additional 3 bed holiday let property - so that the estate renovated to a 6 bedroom property estate. I am am stuck on the next step- due to lack of instant funds. Everything with regards to builders/ architect is in place, minus funding and also type of holiday let mortgage lenders to source? And would a lender loan additional borrowing to assist in completing the work or do they only lend on properties ready to go? Any input on holiday let business or advice is appreciated all. Ady
  9. Revisiting this post! In short- Finally purchased a property with an intention to develop it into a holiday let, currently owned as a second home which is currently eating into profits but as a repayment so not really a burden when the cash is there. I will eventually develop the property and set it up as a holiday let, this will be a slightly drawn out process but will endeavor to keep property peoples in the loop on how it progresses e.g. costs, profits. Things to be discussed: Mortgages Tax Refurb Business/Advertising Costs Results Pros and Cons between BTL & HLs (Own research and future experience) The purchase is a game changer from BTLs due to the tax grab changes to be implemented by GO...hopefully this will be a good pension plan and an interesting project, and a holiday property which I and others can enjoy. Ady
  10. I have recently just completed on a BTL purchase that had a full retention on the mortgage loan. The whole process was not for the faint hearted, the property required updating with improvements i.e new kitchen, new ceilings, flooring , boiler etc...all works were to be completed within an agreed date, all paid for by me. Things never go to plan and sods law this project didn't, initially we were assured by our builder that all the works would be completed on time. The starting date was delayed, hidden issues were unveiled during the works and so forth all eating into valuable time on the project forcing us to go back to the solicitors requesting for more time...which was agreed by the sellers but at a cost! Again time was running out the completion date was closing in and the work was still ongoing. Solicitors were ringing and advising that we needed to speed things up or go back to the seller and request more time, no doubt at a further cost otherwise we were likely to breech contract. We stuck it out and made it on time the surveyor was sent back in, the report came back and passed, phew! with only so many days left in the bag. I wonder now what would had happened if we hadn't of completed on time, I did ask the solicitor but only got a vague answer..would we have lost all the cash that was spent on the refurb along with the deposit without a fight? I will admit that I went into this purchase head first, maybe slightly reckless but luckily managed to pull it off and come out of it having done well. Would I do this type of purchase again, yes but would implement the most vital lesson learnt during the purchase that is to always request for as much time as possible to complete the works, nothing goes to plan. I would really like hear anyone else's experience on purchasing with a full retention, or any advice would be greatly appreciated as this type of buying seems to becoming a more regular thing with surveyors becoming more critical on the quality of BTL's(which is important). Ady
  11. Phew! extension to complete has been agreed for a small fee. There is now plenty of time in the bag to carry out the refurb, though I will keep the option of a bridging loan in mind in case there is any unforeseen issues that may delay the completion. Ady
  12. Kevin, Thanks for your reply. Good to know that if it does go over slightly that a notice would be presented with an extra few days to complete. I am hoping that the sellers accept the extra cash to delay otherwise I think it may have to be a bridging loan- otherwise it will be a matter of taking a gamble and go for it with aim to complete on time. Ady
  13. All, We are almost at the exchange of contract stage...few days!! though a bit of a hiccup has risen in regards to us having requested an extension date to complete the refurb, the delay is purely incase there is any underlaying issues that may occur when carrying out the refurb & incase the survey failed and needed further work to complete. The sellers have refused the extra few weeks that we asked for, this making the timeframe extremely tight to complete the refurb...we have asked the builder if he may be able to start earlier but is unable, we may have to look for alternative contractors to carry out certain works this to try cut the time down to finish. My understanding after talking with the solicitors is that if we do not complete the works on the date stated by the sellers solicitors we will loose the deposit and the moneys thats been spent on refurbing? does anyone have any experience in this, as in where do we stand if the work wasn't completed on time or even that the surveyor decided more work was required before the lenders can release the funds? We have now asked the solicitors to put another proposal forward, a cash offer to try secure more time for completion.....failing this I may have to look at a bridging loan to purchase and get out this time restriction. If I was to purchase using a bridging loan and complete the works then get it rented out asap, would I be able to mortgage the property soon after to pay back the bridging loan? I would appreciate any ideas, thank you. Ady
  14. Kevin, Exactly as you say...I'ts not as straight forward as one would like it to be, though I enjoy the challenge of trying to tie down all the loose ends...i.e the building works, solicitors, completion dates so forth. Ady
  15. Richard, I'll keep a log on how the purchase goes through to completion, along with before after photos. I'll be in touch....hopefully finished mid-January. Ady
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