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lah111

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  1. Strategy 1 is what I would choose. You mentioned you have taken a break from your 9-5 to concentrate on property, so if you have the time available, go for the BRRR. In the long run you'll benefit from greater capital gains if you're buying distressed properties and adding value. One good deal could outweigh many months of true profit on the rental income.
  2. Coincidentally a friend and I were having this exact conversation the other day. My thoughts / opinions were: I don't think auction houses will allow it - viewings are normally 15-20 min slots. Secondly, they would be facilitating a report which would expose all the issues with the building, which can only have a downward effect on bids? As a bidder, I don't particularly like the idea. The unknown is where the opportunity for arbitration arises - if it's all laid out in a report, I think everyone would come up with the same numbers, and only those willing to take a smaller margin w
  3. It may be worth paying your accountant for further advice. It's common to set up a second limited co, with the correct SIC code (business type) which is property related. Apparently lenders take this into account. You could then loan your second company the capital to invest in a BTL.
  4. Sounds like a great mortgage product where you have unlimited repayments. That essentially means there are no redemption fees. Are you in a fixed term or on a SVR? I would quite simply look at the interest rate on your mortgage and compare that to what return you think you can get on an investment elsewhere, be it property or another asset class. I.e. if you're mortgage rate is 3%, and you think you can generate a return of >3%, keep the mortgage balance and invest the cash. I actually think it's a really good time to invest in property, but could be completely wrong!
  5. It doesn't really matter who the Directors are. All Corp. bodies will pay the 3% surcharge if the property value is >40k. If you sell the properties to your brother's limited co, there will be SDLT due of £15,600. If you choose to become owners of the limited company a few years later, you will pay the SDLT on the shares of the company, not the property unless I am mistaken. Say you wait 3 years, you will also forgo the rent, assuming you're getting a yield of 5%, that would be £40.5k. All in all, you'll be out of pocked by c.£60k. Which is more than the £25k premium you would be payi
  6. Hi, Your assumption is correct - as you're married, you're considered one legal entity with regards to SDLT. I.e. you'll still be liable to the 3% premium. See section 2.4: https://www.gov.uk/government/consultations/consultation-on-higher-rates-of-stamp-duty-land-tax-sdlt-on-purchases-of-additional-residential-properties/higher-rates-of-stamp-duty-land-tax-sdlt-on-purchases-of-additional-residential-properties
  7. Sorry Adam, yes I meant your project. Look forward to seeing how this project turns out. Thanks for the link.
  8. Hi Alex, Looks like a really interesting project, sounds like you're really well prepared. Have you thought about opening up downstairs fully to also knock through the lounge and kitchen/diner? Can I ask what you're using to draw your floor plans please? All the best.
  9. I have been in a similar situation, though I was on the other side as a lender. I made sure we had a loan agreement in place (used an old bridging loan agreement and modified where necessary), and agreed with the borrower the interest wasn't compounding. Could be very tense if at the end of the term the investor assumed the interest compounded and you didn't! A clear loan agreement setting out the repayment of capital and interest is the best way forward IMO. Their taxes are not your responsibility at all, so I wouldn't get involved in that respect.
  10. Hello, I'm a sort of a similar position - start of the journey. 1. Similar to you, I have heard having your own home is important in opening up the wider mortgage market. You could consider buying somewhere on a residential mortgage, living there whilst refurbing, and then convert to a BTL mortgage, or get consent to let. 2. If you're higher rate tax payers, an SPV makes more sense on paper. I would set up a SPV and loan the SPV your savings. 3. I think your budget would give you better returns in the midlands, as the Robs say, you make your money in long term capital a
  11. I have a couple of business accounts with Metro - and there is no fee as long as you keep a balance of >£5k. Been very happy with them for the last few years. And bonus, for me anyway, no card reader authentication device. I use another business a/c with Lloyds, and I hate having to carry that thing around with me! I would personally stick with one bank account per SPV. I link my bank accounts with Xero which means my bank transactions are brought in automatically every day into my bookkeeping software. That makes keeping records very easy.
  12. Thanks, I'm not counting my chickens yet but I was really happy with that price. I don't know the area very well. Any recommendation of any tradesmen? Will need a builder, painter/decorator, tiler, gardener and a driveway. And a surveyor. Any help would be much appreciated.
  13. No not yet - thinking about it. Waiting to get hold of the keys.
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