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henry g

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About henry g

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  1. How are everybody's cladding issues? Is anyone actively purchasing apartments in buildings that are currently in dispute about who should be paying for what? Must be some good deals to be had but hard to know the potential cost of future works.
  2. Hi Usman, thanks for the reply. I used 11.5 months in the rent calc. There is 12% fee for management in there (£931.50). Buildings insurance is included in the service charge, I guess I will self-insure rather than take landlords insurance.
  3. Purchase Price 118,000 Rented for 675pcm Service Charge 1600pa (inc water, sewerage and buildings insurance) Ground Rent 50pa I think there is some capital growth that will come over the long run. My main worry is the high service charge at 1600pa, but it has lifts and a concierge. The rent could be raised to 700 or 725 when the tenancy finishes in my opinion. Buying cash and plan to get a mortgage down the line (haven't included the fee for this in above sums). Personally I want some income to pay the bills but ideally long term total return is the goal, as I can pay the bills from elsewhere for now. Thoughts please?
  4. How are you getting on Martin? Have you hit this point yet?
  5. Excellent information thanks Adam. Ultimately the reason why I am interested now is do I need to optimise my portfolio for high yield to maximise rental income or profit to maximise income. I'm in a financial situation where I'd like to get income coming in but not to the detriment of capital growth as I believe this to be the real builder of wealth long term when combined with leverage! By the sounds of what you've said I should be OK if I have property #1 and #2 as good yields with low vacancy and high enough profit to withstand vigorous stress testing. They may get stuck on my personal income covering living expenses as I will be living off savings/investment income, but the deposit will be 40% so hopefully that helps? What do you think?
  6. How's it going Tom? Where are your investments? I'm looking at vanilla BTLs in South Wales but struggling a little to find higher yielding stuff, that being said I think there is some good capital growth to be had over the long term now. Did you have any thoughts about the south?
  7. Hi Adam, Thanks for the reply. Each property meets this mortgage criteria, that's what I meant when I wrote: But I have no £25,000 personal income. So I am wanting to use property to invest as a professional landlord and have my property rent viewed as income to be able to take out new mortgages to purchase properties (whereas #1 and #2 are bought cash and then mortgaged). So would the net rental income be viewed the same as a net personal income is viewed? Or would the lender look at profit only?
  8. Is that true in Wales though? Doesn't seem so.
  9. On a house price higher than £300k? Or on the existing size of the mortgage? If the former maybe Option #6 - sell and buy elsewhere with a higher LTV on the home. Releasing up to £180k to use as a pot. Although I'm guessing closer to school is more expensive? And hi from Bristol too!
  10. If Property #1 and #2 are mortgaged with 60% LTV bringing in 700/month rent, with £230 profit would the mortgage company looking to provide a loan for mortgage 3 be looking at only the profit (£230*12*2=£5,520pa) or the rental income (£700*12*2=£16,800)? The numbers for Property #3 stack up well on their own with the same 60% LTV and 700/month rent and £230 profit (and £60 profit at 5% interest rates), so the property would be paying the mortgage and I already have the deposit. Property #1 and #2 are bought with cash, then mortgaged, however by the time #3 comes around there is only enough left for the 40% deposit at time of purchase, hence the need to find a mortgage product.
  11. As you are not married and not in a civil partnership if you gifted your share of the home to your partner, then moved into the property across the road I think this would be OK in terms of avoiding the 3% stamp duty on a 2nd home. However, you might then hit issues with your mortgages and as Debbie says above your intention could open you up to Capital Gains Tax.
  12. Hi Rockwood, A key bit of information I missed is that the property falls into the 0% stamp duty bracket (£0-125k in England). So as I plan to live in it and not rent it I will pay regular rates, which, in this case, is 0%. Good reminder about the potential for CGT. I am definitely not planning on selling and it's only a very small chance I end up renting it out, but I want to cover my bases should the situation arrive down the line. Thanks for the reply.
  13. Thanks for the reply. Sounds good. A key bit of information I missed is that the property falls into the 0% stamp duty bracket (£0-125k in England).
  14. I want to buy a place, live in it for 6-12 months, renovate it, and experience the area, then maybe rent it out. Are there clear guidelines for the duration one needs to live in the property to not be liable for Stamp Duty or is it simply good enough that my intention is to live in it immediately, regardless of duration, that makes me not liable? I do not currently own any property, although it is not my first time buying a home. Property is in Wales if it makes a difference, but wondering for UK also. Thanks.
  15. Depends what your individual tax circumstances are at the moment?