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About bradleywood

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  1. Hi, I wondered if anyone with prior experience may be able to give me some guidance. I’m about to make my first BTL purchase through a limited company. I am the only shareholder/director. I will be funding the purchase in cash with some also from my parents. I want to ensure that the money is a director’s loan rather than a gift to the company so that I don’t have to pay tax to get money back out of the company that I have already paid tax on. Is there anything ‘special’ I need to do to ensure this? Or will the fact that it is an agreement between me as an individual and me as sole owner director/shareholder be enough? And the fact that the paper trail will show money going from my account into the limited company account. I’m not going to charge the company any interest or anything like that, it’s just to ensure I don’t pay ‘double’ tax. Also, my parents will gift me money as an individual which I will then loan to my limited company. Rather than them gifting/loaning the money to the limited company. Any advice would be much appreciated! Thanks, Brad
  2. Hi Haf, Thank you for your insight. That's exactly the approach I was going to take in terms of the director's loan into the company but it's good to know that a lender would dig much deeper than the fact that the company already owns the property. Also, thanks for the heads up with the solicitors, I'll be fine with proving source of the funds but assuming it doesn't actually need to be in the company account for 3 months? As in, if the money has been in my personal/my parents account for 3+ months and then they transfer to the company account that should be fine? As they can see the build up and source of funds. Thanks, Brad
  3. Hi, I’ve got a quick question about the funding of a BRR project. When I come to refinancing will the lender question where I got the funds for the purchase/renovation from? An example just to add some context: £90,000 - Purchase price £5,000 – Costs £10,000 – Renovation £105,000 – Total spend £120,000 – Final value £90,000 – Borrowing at 75% LTV £30,000 - Equity £15,000 – Funds left in the deal The funding for the initial £105,000 would probably be approximately £50,000 personal funds & £55,000 from parents/grandparents. Would a lender question this? Should it all be my own funds? Also, the deal would be within a limited company with myself as sole shareholder & director. Also, in that example the money left in the deal would be all mine so would this help? Thanks! Brad
  4. Hi George, I've only been looking in a city centre at the moment. There does seem to be quite a lot of reasonably priced properties available. Brad
  5. Hi Stuart, thanks for letting me know! I went back with those reasons and all seems ok!
  6. Hi, I am currently in the process of purchasing a couple of BTLs in Sheffield, I currently live in Leeds and the underwriter for the lender has asked why I am buying in Sheffield when I live in Leeds? Has anyone else ever been asked this or does anyone know what would constitutes an acceptable answer? I have a number of reasons for buying in Sheffield: One actually being that it's not too far from where I live (Only a 1 hour drive), I think currently Sheffield city centre offers better value, yields and a lower price point than Leeds city centre, I think it has more capital growth potential than Leeds and also I know Sheffield well as my girlfriend lives there so I may eventually move in with her and live there myself. Would these reasons be acceptable to a lender? Thanks, Brad
  7. Hi James, Sorry, I've only just seen your reply to this. How have you been getting on in Leeds? The prices on the street my Pudsey flat is on seem to keep increasing! I've had a change of tactic and have started to look at Sheffield, hopefully catch it before it grows and follows the trend Leeds has set. Brad
  8. Hi Markos, I'm from Pudsey! So maybe a little biased but I think it is a good area. I invested in Pudsey around 3 years ago and have seen a 25% valuation uplift in that time without buying BMV or anything like that (Was my first BTL). Yield is pretty good and I think there should be capital growth rippling out from Leeds in the coming years. If you want to know anything more specific just let me know.
  9. Hi Peter, I have had a similar experience recently, a GR which doubled every 20 years. This caused great difficulty obtaining a mortgage and in the end I pulled out of the purchase. I found that a lot of lenders did not like the fact the the escalation point was less than every 25 years and many also didn't like that it was not linked to RPI. Yours is kind of a hybrid so I would certainly inform your lender and ask their stance on it. Sorry for the pessimistic reply but I just wanted to make sure you had the heads up before committing any further! Brad
  10. Hi, I was just wondering how much importance valuers place on price per square foot? The question is because I am currently looking at a flat in a block where the apartment sizes vary, however the layouts are broadly the same in terms of number of rooms, en-suite, etc. Essentially, I am wondering if a 10% bigger apartment (Sq ft) would be valued at approximately 10% more although the actual layout and number of rooms are the same. Therefore, to the naked eye there may not appear to be much difference. Really, I’m more interested to know from a revaluation/re-mortgage perspective a couple of years down the line, is this something a valuer would take into consideration? I hope this makes sense! Thanks, Brad
  11. @haf1963 I just wondered if you had to pay capital gains tax & stamp duty when you transferred the one property in your own name into the Ltd company?
  12. Hi Trevor, I could potentially cover Leeds & Sheffield. If you want to drop me a private message we could discuss further. Thanks, Brad
  13. Hi James, I’ve found Farsley a bit expensive and starting to think Pudsey is going the same way! I might have a look into Bramley a little bit more though, prices are a little less and rents approximately the same. I think I may stick to standard BTL for now. I did agree a price on a 4 bed HMO in Pudsey a few months ago but had to pull out, not sure of the demand for that kind of thing in Pudsey/Farsley. Seems to be more common in the Kirkstall sort of area, a bit closer to the centre. Thanks, Brad
  14. Hi James, Where about are you looking to invest? I'm from Pudsey and just looking for BTL number 2. Thanks, Brad
  15. Hi Bob, I'm also from Leeds with similar goals and a similar strategy to you (kind of). I've had one BTL for two years now but looking to press ahead and achieve £2,000 per month in the next 5 years so I do think your goals are achievable with the timescales given. However, I did have a look at you spreadsheet and couldn't seem to make sense of some of the calculations. Hope you don't think this is too cheeky but I've reformatted some of it, I kept the same assumptions as you had with regard to purchase price, refurb and rental profits. But I moved the capital uplift to the end of year 2/start of year 3, in line with a 2 year fixed rate mortgage and assumed this would be withdrawn through a 75% remortgage, also I accumulated the rental profit. It seems to paint a more positive picture but see what you think, I may well have got something wrong! New file attached. Also, just wondering where you would look to source the kinds of properties you refer to in the spreadsheet? I kind of keep an eye out for these kinds of properties in our sort of area but can never seem to see a deal that jumps out as working on the sorts of numbers you mentioned. Although, I have to admit I don't spend too much time looking as this kind of strategy isn't my main focus at the moment. @darren mcneill If you're still following this thread, in your experience do you think these kinds of deals are available on the 'open market'? I've read your brilliant journal and I believe you source direct to vendor, do you think this is the only way to make the numbers work? Thanks, Brad First 5 properies plan...xlsx