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Everything posted by haf1963

  1. I looked into this and most of the major low-cost mortgages were pretty adamant that the funds had to be used for property - though this could be property development/extensions/etc in many cases. There may well be some that 'don't care' but I would guess this will be reflected in their interest rates.. Def one for a good broker to answer
  2. To be honest I always thought that he tenant had to agree and that was a condition of the deposit schemes - though never had to use it in anger
  3. For a LTD my understating is that the source of a directors loan is not relevant in the same way it would be if you bought in own name. I suggest you have a quick word with a mortgage broker and/or solicitor as they can be more definitive. Obviously you have to meet usual affordability tests etc and you should be using a mortgage for a flip project either..
  4. it really depends on if they are simply giving you a loan and want a return or if they actually want to own the property and have you do all the work (for a fee). Lots of different ways to do joint venture deals but on a financial loan - 5-10% interest is one way but a split of the profits is another (assuming flip). No 'right' answer here and more a case with a arrangement that both sides are happy with and is a fair reflection of the effort/risk involved.
  5. Difficult to say as you also have to consider your own risk tolerance and wanting to be able to sleep at night. I would say 75% is a good limit for long term investors but I know people who are happy to take more risk and be at 90% and even a few who are higher. A property crash can be anything from -10% to -50% but its pretty unlikely to be at the high end of this range.
  6. The accountant services will be simply doing your annual accounts and the 'flipping' doesn't really make much difference to what he is doing for a standard ltd company. Expect o pay about 1k per year. Given the profits in property flipping run into 10's of thousands, I am not sure why you would focus heavily on trying to save a few hundred by squeezing an accountant. Better to have an accountant who will be proactive and give you financial advice that will save you loads of money than one who will do the bear minimum in order to lower his fees. Whether or not a LTD is the right vehicle i
  7. The register deadline is usually only a day or 2 before the auction itself so unlikely but no harm in giving the action house a call to ask..
  8. I believe you will need full planning for a 7 bed now which means the council will look at all sorts of criteria inc feedback from the local community, parking, environmental and all the usual stuff inc over saturation. Not sure I have seen a proper list about it but you can contact the HMO team in Birmingham council and am sure they will give some high level advise. Obviously it will be be much harder than before and a few investors I know are now staying with 5-6 to avoid going 7+ rooms. I agree its a bit confusing with the new rules
  9. I am pretty sure that if you lease to a HA then you get your house back in the same condition at the end and repairs/damages are the responsibility of the HA. Its another story if you are letting directly to a Benefits tenant as then its all your responsibility
  10. Thanks, I am finding a fair bit of information on various ltd company and accountancy forums as well so will keep researching for now
  11. I would call it a great result as long as quality of work is to a decent standard - most tenants are the opposite and always asking for things to be done..
  12. Yes I manage a few properties for a friend and its never really come up as a question from clients as they only ever deal with me and have never seen/spoken to the owner - who is remote.
  13. You still use open rent but they will need some evidence that the property owner has agreed fro you to represent them - eg a signed letter - at least that's what's worked for me
  14. I thought I was pretty clued up on all the tax tricks involved in a LTD company but use of a SSAS is new to me so have been doing some reading up on how it all works and the benefits etc and would like to hear if anyone has done this specifically with a property SPV as opposed to other businesses and what were the key benefits/advantages. I will educate myself some more but thought it was worth asking as there are some knowledgable folks here
  15. Yes you can revise your offer as its usually 'subject to a satisfactory survey' as well as the valuation given your mortgage will be base on the valuation - the seller may or may not agree so you need to be prepared for them to walk away - though they may equally negotiate and ask to meet half way etc
  16. To be honest there are also advantages to doing a lease agreement in that you are not then subject to all the regs around AST's as we all know they are massively skewed towards favouring the tenant. I would also say that not all rent-to-rent spv's are of the 'dodgy' variety and many will have a good track record and good references. I'm not saying its the way to go but I have done both and definitely had much less tenant hassle from a lease than an AST so I'm not sure its a one sided argument.
  17. I have been doing this for last 5 years and have had no problems with the buy/renovate/rent/mortgage process or my accounts. I sold 1 property but it wasn't a flip as such - just decided the property wasn't performing for me. The accountant said its fine for a BTL SPV to do the occasional sale if it needs to as that not the same as 'trading'. All good so far..
  18. This is a complex area and really needs a detailed discussion with an accountant and solicitor, as well as factor in other IHT stuff - I had to do both and get involved in looking at setting up a trust and all sorts. Worth paying a few quid and getting proper advice versus random ideas from fellow forumers - though you may get some pointers if this what your after..
  19. Its a pretty confusing area and seems to be dependent on councils as well. Licensing is one thing but needing planning is another and I hear Different rules from different places. I thought the case was that c3-c4 could be done under permitted development but 7+ needed planning from council. In some cities I hear licensing applies to 4+. I have one large HMO so got planning and did it to full regs in terms of emergency lighting, exits etc. Not sure I would do another large but am looking at the uptown 6 rooms as my next project. No doubt my planner/architect will set me straight when the time
  20. Hi, I am wondering if I can make use of the new 2 story PD rules to add a side extension to a corner house where the boundary is at the pavement of the adjacent road. I think the answer is 'no' as I read PD doesn't apply if within 2 meters of a boundary..
  21. Agree with both - I am in a similar position to OP but Ltd made more sense as I am growing the portfolio and re-investing profits - there are plenty of advantages to having a LTD but it massively depends on personal goals and financial situation so needs a fairly detailed analysis as well as looking for the long term. The mortgage rates are indeed higher but that matters less when you are looking at 100k type loans
  22. Perfectly do-able and I went from BTL to extended hmm to 6 new build flats - all on a small scale. You really need a pile of cash as getting loans etc makes it difficult and obviously a good network.
  23. As a cash buyer - I will wait it out for a while unless a real good deal comes along.. Hopefully there will be some distressed sales towards the autumn/winter... Its a tough call as many people have been waiting since last march for a dip and its anyones guess if it will actually come this year
  24. Just started using it so will try it for a month or so before deciding to replace my spreadsheet
  25. I prefer benchmarx as its great quality and can normally negotiate a good price. Though recently I have done a few from wickes 'pickup and go' range as every few months they do a 20% off and then an extra 15% off for a Weeknd and I have the 10% off everything card as well. Got some cracking deals and the quality is similar to benchmarx as they are owned by the same HQ. It does tend to be a limited range so not a lot of fancy units but great if you want slab white etc
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