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Rick B

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  1. Thanks Charlotte for the detailed reply, we really appreciate it Plenty of things to think about before we proceed down any direction .... Thanks once again.
  2. Hi, I’m hoping that someone can offer some advice on our current family situation. My Gran recently had an accident and broke her hip causing her to be hospitalised and eventually put into a care home. She was living in a bungalow by herself but that’s no longer sustainable. She has had to leave her bungalow and enter into a care home. She is now going to sell the bungalow to help fund the cost of the care home. The cost of the care home is about £32k per annum and after she sold her bungalow along with her other savings she will have around £280k. We propose to keep £60k of that in immediately accessible savings accounts to pay for the monthly cost of the care home. She has about 8-9 years worth of care home fees she can pay for out of her savings. She’s 94 but she’s in great shape apart from the hip, so we’re not sure whether she’ll pass away before her money runs out or if it’ll be the other way round. I’m a fairly new BTL investor myself (I only have one BTL property so far) but I’ve suggested instead of leaving it in savings account with poor interest rates, that the majority of my Gran’s money should be invested into buy to let property to try to cover the monthly care home fees with the monthly rental income as well as having a long-term growth plan and for this to be passed down to my Mum when my Gran does eventually pass away. My rough calculations are given a 75% LTV we’d be able to get 10 rentals hopefully yielding around £250-£350 pcm each. The cost of the care home is approximately £3k per month so the rental income should cover the majority of the fees. We are based in Bolton near Manchester so terrace houses are still reasonable value and the yield is pretty good. My mum agrees that property is the way forward but were unsure of the mechanism to achieve this. I have my own buy to let company but I am the sole director so it doesn’t quite feel right that the £220k makes its way into that company given there is my brother and mother to think about. We're not experts in inheritance tax and would love to hear some suggestions about the most efficient way to invest my Gran’s money so I can give her peace of mind to be a long-term rental income coming in that will sustain a monthly payment for the care home. A few options of the top of my head: 1) Form a new limited company with my Gran, myself, my brother and my Mum as directors and Gran either invests or loans the money to the business. 2) Gran loans money to my Mum and she starts a BTL company, although she is retired but thinks that she can still get a BTL mortgage. 3) Use my ready to go BTL company but not sure the best way to get the investment funds into it? 4) Any other ideas? We’d welcome any ideas or recommendations of people to speak to for advice as we are unsure what’s the next best step would be. Cheers, Rick & Family.
  3. Hi, I’m hoping that someone can offer some advice on our current family situation. My Gran recently had an accident and broke her hip causing her to be hospitalised and eventually put into a care home. She was living in a bungalow by herself but that’s no longer sustainable. She has had to leave her bungalow and enter into a care home. She is now going to sell the bungalow to help fund the cost of the care home. The cost of the care home is about £32k per annum and after she sold her bungalow along with her other savings she will have around £280k. We propose to keep £60k of that in immediately accessible savings accounts to pay for the monthly cost of the care home. She has about 8-9 years worth of care home fees she can pay for out of her savings. She’s 94 but she’s in great shape apart from the hip, so we’re not sure whether she’ll pass away before her money runs out or if it’ll be the other way round. I’m a fairly new BTL investor myself (I only have one BTL property so far) but I’ve suggested instead of leaving it in savings account with poor interest rates, that the majority of my Gran’s money should be invested into buy to let property to try to cover the monthly care home fees with the monthly rental income as well as having a long-term growth plan and for this to be passed down to my Mum when my Gran does eventually pass away. My rough calculations are given a 75% LTV we’d be able to get 10 rentals hopefully yielding around £250-£350 pcm each. The cost of the care home is approximately £3k per month so the rental income should cover the majority of the fees. We are based in Bolton near Manchester so terrace houses are still reasonable value and the yield is pretty good. My mum agrees that property is the way forward but were unsure of the mechanism to achieve this. I have my own buy to let company but I am the sole director so it doesn’t quite feel right that the £220k makes its way into that company given there is my brother and mother to think about. We're not experts in inheritance tax and would love to hear some suggestions about the most efficient way to invest my Gran’s money so I can give her peace of mind to be a long-term rental income coming in that will sustain a monthly payment for the care home. A few options of the top of my head: 1) Form a new limited company with my Gran, myself, my brother and my Mum as directors and Gran either invests or loans the money to the business. 2) Gran loans money to my Mum and she starts a BTL company, although she is retired but thinks that she can still get a BTL mortgage. 3) Use my ready to go BTL company but not sure the best way to get the investment funds into it? 4) Any other ideas? We’d welcome any ideas or recommendations of people to speak to for advice as we are unsure what’s the next best step would be. Cheers, Rick & Family.
  4. Hi, Newbie first time BTL purchaser here. About 10 days ago I had my offer accepted on a property i've been following up for a while. The vendor was slow at responding and it turns out it's owned by a large company. Furthermore, that company has just gone into administration (Ive just received the memorandum of sale so was able to Google them) They have active solicitors and the memorandum of sale seems fine. Has anybody been through something similar? Is there anything I should be looking out for?
  5. Searchlight finance, you can do it for less but you generally £75k min - http://searchlightfinance.co.uk/limited-company-mortgages/ Minimum property valuation £50,000 although with most it’s £75,000;
  6. Thanks Rob, really appreciate the advice and of course the podcast/forum/everything you guys do for us
  7. Hi, I've got a £35k deposit in the bank but i'm struggling to decide on where to invest. I'm based in Bolton but work in Manchester city centre and like the idea of self-managing. I have formed a LTD company so will need to buy properties with a min value of £75k to make them mortgageable. Ideally, looking for a light refurb to get me started but the problem is where? My views are: Manchester - still booming and will struggle to get anything decent under £130k near the city centre but possibly the best shot for capital growth?. Salford - benefitting from the ripple effect from Manchester and Media City but fundamentally still some pretty rough areas. More uplift to come or has it seen the majority of the uplift already? Bolton/Wigan - some nice areas and good transport into Manchester - lower values and less competition but less capital growth potential? Any thoughts/tips? Cheers, Rick
  8. FYI, I just spoke to Fylde and they're only taking on portfolio investors with >= 5 properties currently.
  9. Hi, I know this is late but i've only just listened and can't find the strategy resources anywhere else on the site? Any pointers to where they are? Cheers, Rick
  10. Hi, Does anybody have any recommendations for each of the above? I will be using a LTD company to purchase properties and own two other limited companies that I am contemplating using the Loan between LTD companies method so would like an accountant that could potentially advise on that. Thanks in advance for any tips Cheers, Rick
  11. Hi, Does anybody have any recommendations for each of the above? I will be using a LTD company to purchase properties and own two other limited companies that I am contemplating using the Loan between LTD companies method so would like an accountant that could potentially advise on that. Thanks in advance for any tips Cheers, Rick
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