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maggie b

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  1. Hello there, Re: How to calculate evaluation for a property that has been converted to flats when there are no other similar properties on the neighbouring streets I want to make an conditional offer (subject to building inspection survey) on a property that has been converted into a block of 5 studio apartments but I am hesitant as I don't know how the property would be valued by the bank. The property is based in Liverpool, postcode L7 and I will be using a mortgage. The gross income is £25,000 per annum and is fully tenanted. I have done the numbers and if my offer is accepted then the ROI would be 22%. (This is assuming that no extra capital expenditure is required). When I do my analysis, the expected cashflow and ROI meets my criteria. But I don't know how to value the property as there are no comparables nearby of a similar property. The other properties on that street are 3 and 4 bed houses. Therefore, I don't know what the bank would value this property and I don't know if/when I can get my money back out. This is an issue as I need to raise the cash to invest in this property through private loans. I need to raise £64,500 to pay for the deposit, stamp duty etc.. Not knowing how the property would be valued by the banks, means that I am uncertain on when I can pay back my investors. How does the bank value properties that have been split into blocks of flats? Many thanks for you help. Regards, Margaret
  2. Hello there, Can you please recommend some accountants that you have used. I want advice on whether to set up a limited company. Plan to buy and rent out properties with my partner, he is a high tax earner and I am unemployed. We would like to be able to take out income from our investment regularly. What is the best set up for us so that we avoid being taxed out of profit!