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steve brown

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About steve brown

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  1. Hi both, thank you for the information and advice. Please rest assured I am trying to get them a better return on their cash than it gets in premium bonds! I certainly wouldn't be seeking to get them to stump the up front costs, I just want to them to have a share that pays them from day one and hopefully eventually returns their capital and some. Carrie your situation sounds similar to what we are hoping to achieve and that idea is definitely something I could put to a solicitor to make sure we and they (the kids) are on solid ground. Thanks again for the help Steve
  2. Hi I am considering our next BTL purchase. Between them my children have around £10k saved from family gifts over the years, I am the trustee to their money. To improve their return and to enable our next investment purchase I would like to use their funds as part of the deposit and pay them profits accordingly. In years to come should we ever sell then of course I would wish them to profit accordingly. I understand that children cannot legally own land so am wondering how to set this up correctly. Our properties are privately owned not limited company and I have no plans to cha
  3. You are bound to be a bit nervous, its a big deal but have some confidence as you are ahead of most. Don't get me wrong I am no millionaire but once you have bought one, the rest get easier! We bought one in lockdown and frankly it had more problems than any I have had before, it was a bit fraught but its sorted now, my cashflow was tight for a few months but now all settling down back into regular cash flow. The more you have the less impactive a problem is. Good luck!
  4. I think there is a good point here - next years crash could become the self fulfilling property. I don't know if it will happen or not but I think most evidence is that whether it does or not there will be recovery and in the meantime cash-flow will still be there. For me that means keep looking for good deals and buy when appropriate.
  5. Hi Mara Yes we did buy the property, seems like a long time ago now, we still have it. As the sellers were friends of our family we were able to do the transaction in pounds sterling which suited them as they were returning to the UK, it was also a fairly relaxed process for that reason too. We had a solicitor (abogado) who was recommended to us and he was very good. The whole process was pretty efficient and there were no problems. There were some documents we needed to sign which we were going to do whilst on a trip over there but for reasons I forget that could not happen, so we h
  6. Hi Nicholas_B Personally I am not waiting for a house drop and don't agree that we all are. I agreed a purchase at the start of 2020 which at that time looked like it should go through quickly. It is a relatively straightforward refurb. A couple of potential concerns arose from the survey which got resolved by a builder I know but by the time that was done the lockdown kicked in. The upshot of this was that the trades I had lined up to get some work done could not proceed and that the solicitors opted to pend all their transactions to reduce the risk of exchanges taking place th
  7. Richard your response is a really interesting and thought provoking account - many thanks. Steve
  8. I don't agree that additional taxation on BTL market is likely to be a government target after this. I think that time will show that renters get more heavily hit by the economic impact of the pandemic, as many (not all of course) renters are not as financially stable as home owners with less cash in the bank and less scope to borrow. They are therefore dependant on being able to rent their home and accordingly if that market is made more difficult for landlords then it becomes more difficult for tenants. Maybe the government would counterbalance that with an actual increase in social ho
  9. I think it is very prudent to consider that there may be good opportunities coming up. However bear in mind that if you take a personal loan, this will be a credit commitment that has to be declared when applying for a mortgage. This could reduce the lenders view of your ability to afford the mortgage and therefore hamper you in getting it in the first place. Also in terms of leveraging whilst this strategy may help avoid the property itself being over leveraged, and so not increase the chance of negative equity, remember that if you take a personal loan to use as a deposit and then
  10. Hi Conrad Sorry for not coming back to you sooner, I appreciate the advice and lines of enquiry to follow. I satisfied myself with the title in the end, I think as you say it was a case of things getting lost in translation at some point in the distant past. I have decided not to proceed with the property anyway as overall its looking a bigger job than I can take on for now but I will watch it with interest when it is auctioned (again)! All the best Steve
  11. Hi A couple of years ago I pulled out of a BTL purchase because of a serious roof problem however before that was discovered we were aware there was potentially some asbestos as the property was heavy on the art ceilings. It was never confirmed and I never got as far as a survey for it as the vendors would not agree my new offer based on the roof problem. I am viewing a property next week that I can see has polystyrene look ceiling tiles and I am aware from the previous aborted purchase that these can be a source of asbestos too. The property will need modernising so there is some ch
  12. Hi, I have been looking at a few upcoming properties at auction recently. I have noticed on three properties with one auctioneer that each has a special conditions contract which I understand is quite common. However each of these with this particular auctioneer includes a requirement for the buyer to pay the seller £3000 towards their own legal fees and £9,999 as a "buyers premium", for which invoices would not be provided for either! Is this normal / typical? Steve
  13. Hi Despite the rental being very profitable, to pass the stress testing rules I think you would need to be achieving rent of at least £930. You might get a lower stress test if you have a 5 year product but this may be counterbalanced that as a higher rate tax payer this may also take you into more extreme stress testing. You are not far off it with a £900 rent of course so a bit of tweaking with the product might get you there. I think you would be better off reinvesting in a more profitable rental.
  14. Not all tenants would want 3 years minimum commitment, some are bound to like shorter tenancies as they might be on a temporary contract in the area or renting for a short period due to a major life change such as relocation / divorce or whatever. Should they be forced on to a 3 year tenancy? I say not. They may be more incentivised to buy if this becomes the requirement, which could drive up demand and prices and would be counter to the presumed aim. I get that a longer contract could give tenants the security against a S21 eviction which families for example might appreciate. Perha
  15. Hi Even though this is your first BTL purchase, I would like to encourage you to follow your instincts somewhat. By getting to the stage you have you are more property savvy than 99% of the population. You are fearful / doubtful about the quality of the tenant. It could well be that they haven't paid rent in months, but that being the case is it likely that they would have kept the place immaculate in the interim? Or that they would temporarily allow the landlord they are presumably in dispute with to come in and spruce it up for a days worth of viewings. I personally think that is u
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