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PatrickWrayWray

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  1. Chappers , My back of fag calculation suggests option 3 [which sounds to me like “normal” management] = 20% which seems very high to me. I hope you have negotiated those fees down somewhat! Just out of interest, what area are you in? Perhaps an area where there are not many agents or they don’t want to operate in that area?
  2. I honestly think the fact you are asking these questions means you should seriously think about whether you can do without the services of a good agent. However I might have a lower risk tolerance than you. The fees you have been quoted though do seem very high. Have you tried to negotiate those fees down?
  3. Steven - I am assuming that if tenanted property values were blighted because of rent controls then one unintended consequence for the govt was that unscrupulous landlords were then incentivised to buy those blighted properties , harass tenants or allow the property to fall into a state of disrepair so that the tenant was more likely to terminate the tenancy and if they did on vacant possession they would see a big capital value increase?
  4. Where can I find a live % gross yield heat map by postcode area? I can find a few of these online but none are 'refreshed' with live data. Also, where can I find a graph showing % gross yield by property type and No of beds over time by postcode area over time? Ideally also with rent + house prices plotted. I can find a lot of data averaging current rents but not over time. By the way I stumbled across this BTL Index which looks interesting https://public.tableau.com/views/BTLIndexJun-17/Dashboard1?:embed=y&:loadOrderID=0&:display_count=yes
  5. For your primary residence that you own there is no capital gain tax. For BTL property you pay 18% CGT or 28% if you are a higher rate tax payer. However you can deduct any capital improvements and the first £11.3k. I think whether you pay CGT or income tax on profits from flipping depends on whether you are seen by HMRC as an investor or trader.
  6. Can someone point me in the right direction of a decent insurance broker who I can contact to ask these questions? Thanks.
  7. If I met you at a meet and was a potential investor I think I would want to build more of a dialogue than just an introductory chat before even entertaining providing a bridging loan, or some other JV arrangement with you or anyone. To be absolutely honest I would be quite put off if you were to place an advert in my hand 5 mins after meeting me. My suggestion would be to carry on attending the networking events and helping others out as you will build their trust; and hopefully this will more naturally lead to JV opportunities. Meanwhile, if you need funds sooner rather than later, have you discussed your requirements with any bridging companies?
  8. Tim, I really appreciate you taking the time to provide your thoughts and advice. I agree with your thinking that a solicitor's work is not normally proportionate to the value of the property; more the complexity of the transaction. With regards an auction there is an additional obligation on a buyer to complete within a specified timeframe and as a result my regular [good] solicitor wanted to charge an extra few hundred pounds for this So it occurred to me that the market in solicitors must provide some [good] solicitors who specialise in auction transactions and who have systemised their businesses in being able to cope with the timescale obligation and who subsequently have lower costs and can pass on a fee to the buyer that is closer to non-auction transactions fee level. In fact I noticed that in one large London auction (circa 200 lots) there is a recommendation by the auction house for only one firm of solicitors which did have costs lower than £1k and of this the pre auction costs were only of the order of £300. I did not pursue my due diligence in terms of looking at this solicitors track record as I had decided not to bid at that point; but if that firm were any good, I can see how their model of business would allow for economies of scale leading to cheaper costs and for some of this to be passed onto the purchaser i.e. if there is one [good] solicitor recommended by the auction house then they will end up dealing with some of the potential buyers of the same lot and will be able to 'copy and paste' much of the work done for potential bidder 1 on lot X to potential bidder 2 on lot X and so on. So, in summary, I agree "cheap solicitors nearly always are cheap for a reason" i.e. that reason is generally because they cut corners; but,that reason might be because they are systemised and can achieve economy of scale. Re the subject of auctions; I actually think the particular type of property I am looking at is being bid over what it is worth to me ; presumably by foreign and London investors and thus I will be avoiding auctions for the foreseeable...at least as a buyer ; of course the flip side is I am now thinking of using auction as a means to sell.
  9. Fir Tree - I have to confess I did not go bid on the lots I referred to above and I am glad I did not because my top price, although well over guide, was not close to the amount sold, so I would have lost the pre-legal fees. So I am not really an expert on auctions having had zero experience! Few questions though: Presumably you have accessed the legal pack that were supplied when the property went to auction and the searches were omitted? Is the vendor choosing to implement the same timescale as the auction (28 days) or is the vendor contractually bound to do so by the contract he has with the auction house, which presumably you are going through to get to the vendor? Either way have you tried discussing it with whoever is enforcing the 28 days (vendor or auction house) explaining that your offer (including payment of deposit) is conditional on the results of the searches which take time to come through? If it were me I would try to negotiate to make the offer conditional on the property being withdrawn from sale and on the results of the searches. If the vendor declines you then need to evaluate whether you will risk the cost of the searches when someone else might outbid you within the 30 days.
  10. I have just bought 1 x freehold lock up garage in a block of 10 garages. I also own the entire forecourt + the access road. The garage is of concrete construction and asbestos roof. Overall the garage is in a fair to reasonable condition given the age (late 50s I would guess) but structurally sound. The surface of the access road and forecourt was probably originally tarmac but is now so old and broken that it consists of many small stones compacted so much that it presents a fairly surface with no pot holes. I am about to grant a licence to a T for the use of the garage only and will stipulate that the licensee will be responsible for insuring their contents. The forecourt + access road may have future opportunity for development at some point in the distant future. As per the deeds I can in theory recoup from the owners of the other 9 garages, any costs stemming from the maintenance of the communal areas; namely the forecourt + access road but in reality this would be difficult/uneconomic. Questions 1. I will buy buildings insurance but do you think I should get public liability also to cover the garage, road and forecourt? It would seem a bit OTT given that I fail to see how the land with no tripping hazard or potholes could damage persons or vehicles? 2. Can anybody recommend good insurance broker, bearing in mind a lock up garage let like this is not classed as resi and is not an AST? 3. Is there any insurance product that would cover the costs of removing fly tipping? This I believe to be my biggest risk in terms of likelihood and cost [of removal]. Thanks, Patrick
  11. I have just bought 1 x freehold lock up garage in a block of 10 + the entire forecourt + the access road. The garage is of concrete construction and asbestos roof. Overall the garage is in a fair to reasonable condition given the age (late 50s I would guess) but structurally sound. The surface of the access road and forecourt was probably originally tarmac but is now so old and broken that it consists of many small stones compacted so much that it presents an an even surface with no pot holes. I am about to grant a licence to a T for the use of the garage only and will stipulate that the licensee will be responsible for insuring their contents. The forecourt + access road may have future opportunity for developing at some point in the distant future. As per the deeds I can in theory recoup from the owners of the other 9 garages, any costs stemming from the maintenance of the communal areas; namely the forecourt + access road but in reality this would be difficult/uneconomic. Couple of questions then: 1. I think I should buy buildings insurance but I am wondering if I should get public liability also for the garage, road and forecourt also or whether that would be a bit OTT given that I fail to see how the land with no tripping hazard or potholes could damage persons or vehicles? 2. Can anybody recommend good insurance broker, bearing in mind a lock up garage is not classed as resi and is not an AST? Thanks, Patrick
  12. Planning on bidding at an upcoming auction for the first time on at least two small freehold lots, each with a value <£15k. I think it is normal practice to provide a solicitor at least 5 working days prior to auction so I need to appoint in next couple of days. Given the low value of the property the £500 pre auction fees and at least another £500-£1000 post auction my regular solicitor seems v steep. I have found online a firm who will do it for £300 pre auction and £400 post auction but cheap is not best and 5 mins on google reveals this to be the case! So what I am asking for is a recommendation for a reliable professional solicitor/conveyancer who is used to auction work, ideally with lower pre auction fees although happier with higher post auction fees, but with total costs for a cash only freehold purchase at <£1k. Or at least a signpost to a reputable website to find a quote. Thanks guys.
  13. I think there will be a reduction in investment by large multi national companies wanting to be based within EU leading to downturn affecting all parts of UK economy to varying degrees ultimately having adverse impact on UK property market. Historically low int rates and low cost of sterling has and will continue to offset this somewhat. I'm sitting on the side lines with a small warchest prepared only to enter the market with a 10% reduction in prices.
  14. I think you need to check the terms of your lease which should specify your responsibilities but I would have thought if there is a communal heating system then the responsibility would be explicitly referred to and most likely would sit with the freeholder. I do not think the insurance route will be appropriate as that is most likely for building insurance not extending to plant; but in any case you would have to submit a claim via the council in their role as freehold and management company since it is they who have taken the insurance out. Of course in the end even if the council has to pay I assume the terms of your lease allow the council to recharge all costs apportioned to leaseholders via the service charge.
  15. Nick, I don't know the answer but I would assume if you are at the stage of viewing property then you would have an offer in principle from a lender. If not, it might be worth getting one (since you will be seen as a more serious buyer then) and then emailng your mortgage lender the photo and question. If the answer is that it is not mortgageable in its current state I would take that information to the agent and suggest the property should be seriously discounted (as the market would then exclude virtually all owner occupiers and investors leaving only cash buyers. Also, you may want to speak to the previous utility company supplying the property to check the costs of them re-connecting the supply and add this to your costs.
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