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Everything posted by haf1963

  1. as i understand it you can do this but its an automatic 20% tax to the goverment on any interest payment you make (to yourself or another person) -
  2. My spreadsheet listed the work schedule but no prices as I did much if it myself
  3. your mortgage will be 75% of what the mortgage valuer says is the value and it may not be 270k - given its not selling then there is a fair chance its over valued. I would not rush to buy out to rent out as it may not even meet the mortgage stress test. I've no idea what the rent is where you are but it will need to be pretty high to make the numbers stack up. Personally i would be looking to sell - even if it means 260ish and then buy a place thats more geared to BTL
  4. Done this with 3 properties and in each case the value agreed the vaue i had aske the mortagge company to loan against - I had called high expecting to be bought down but no problem at all. My pack was simply a set of 'before refurb' photo's and then a spreadsheet of all the work done. Nothing else
  5. i would at least hope that this would not impact LTD companies due to implications for other ltd companies... but who knows...
  6. if you are a 40% tax payer then you are missing a lot also if you have the properties in joint names before transsferring you may be able to avaoid the cap gains tax.. General view seems to be keep existing in own name but buy new in Ltd. Its a very complicated to be honest and also very specific to individual circumstances there are ways to minimise tax in ltd company noit available to an individual so you are not comparing like with like
  7. I am a Birminghjam investor and teh first question to ask is your budget as that will make a major differenmce to what areas are available. There is pretty much zero in the 100K region unless you go to some dodgy bits or head for the black country so the north half of birmingham area. 150k is where I mainly play and even thats in the 'average' areas so you need to think about budget which then ties into rent and type of tenant.. Birmingham is super competitive and every other person is investing in property so its unlikley to get much in terms of BMV and you have to be prepare to pay the going rate and be in it for the long hall. Good luck and message me iof you have any questions
  8. Flipping is a tough business thgesedays and you need to be sure that buying at 100 and 10k refurb will allow you to sell for minimum 130 as you will spend 10k in stampt duty/fees/etc so need to have a worthwhile margin. Otherwise your plan sounds fine and it should not be difficult to rel;ease some equity
  9. Agree - no problems with Ltd mortages at all and i have 3 in last 3 years
  10. Planning depts ofetn insist on a side entrance so if you have got past that then its an interesting question. Personally if it was my house then I would keep a side entrance but for a rental then its a different story. The main thing i would look at is the size of the extension. If you can have a deecnt size extension and keep the side entrance then thats the best result. If the side entrance makes teh extension width too small (<3m) then you probbaly need to give up the side entrance. Obviously you need to check all the usual planning regs about 45 degree and 50% of teh width of the house etc to see what will get through the system.
  11. Unfortunately the regs for flats are very strict and acoustics/safety etc are all mandatory so if you want 2 flats then you ar egoing to have to get it done. In the long run the xtra 20k will not feel like too much so I would go ahead personally. Otherwise you are into renting as a single let to multiple people/family
  12. Yes the 3 months in your account is fine. Good luck
  13. No need to do any splitting if you don't intend to sell..
  14. Well as its Ltd you will have to loan the 105k to your company as a directors loan - into a company account. You then do the buy/refurb and the mortgage will be a ltd company application - at no stage will the mortgage company ask you where you got your initial funds from. I have done this 3 times and its never come up. Whats more likely is that your solicitor, as part of money laundering regs, will ask you wher eth emoney came from and you can say savings/family and thats fine. You should have the money in your or company account for 3 months otherwise the solicitor will ask more questions. Thats my experience anyway
  15. Short answer is 'yes' assuming you are talking about a HMO.. And yes you have to get landlords agreement
  16. What are you basing the 75k auction price on as auctions are very unpredictable and i have seen properties go much higher than expected?
  17. I think its the deansgate deal itself that you need to look at rather than where it came from. RMP as a property sourcer are probably better than most given what rob & rob do for the investment community so I personally would not worry about them delivering the deal. For me the question is more around how will the actual property deliver what was advertised and will the numbers stack up when it comes to yield/costs/etc. The sourcer can only do so much when it comes to these things and its more about demand/supply/etc. Clearly RMP track record in picking hot spots and generally being being very honest about investing is pretty impressive but as the saying goes - the apst is not a guarantee for the future' PS, while i am a big fan/follower of property hub, i have not personally used their services as a sourcer as i have a different business model.
  18. Fundamentally, from an investment perspective, renting out a 315k house for 1100 pcm is not a great return and the stress testing is doing its job. My properties are typically 150-200k for 800+ pcm and get through stress testing without any problems. Maybe you should look at selling the 315k and then getting some BTL where the numbers work?
  19. There is a list of whats allowed as company expenses on HMRC website and this includes things like a phone/use-of-home and general items that are exclusiveky for the use of the business. You have to be sensible and not take liberties plus your accountant should be your main point of advice. Clothes is pushing it for sure
  20. i'd say yes is the short answer - especially if you are looking to refurb and then value the property at a higher amount when you mortgage. There will always be some specialist mortgage provider who will do it quicker but most likely at a higher rate of interest.
  21. really depends on how hands-on you are going to be. I handle everything from maintenance to management myself so keep all the profit while others off-load everything and are very hands-off so reduce profit but have less hassle and spend less time. You also need to factor in tax which gets you into personal versus ltd. Basically it all depends but you can probbaly say 100 per month on management/maintenance on thst sort of property
  22. Firstly I am amazed that you haven't had a clear answer to a basic question. i.e if you transfer your existing home to a ltd company then you are indeed eligible for stamp duty. Ltd companies pay stamp duty on every purchase and you are effectively selling the property (at market value) to your Ltd company. I have been through this process already. You need to have a proper look at the numbers as you will also be paying a higher mortgage rate in a ltd company and there will be other extra costs. My persona view is the Ltd only makes sense if you are planning to develop a decent size portfolio rathe than just 1-2 properties but at the same time there are some good upsides if you do. Any accountant can do this for you and its all very straightforward. Mine is local to me so not sure if thats much use to you but rob&rob have the 'property hub tax' business so i'd start there
  23. Many times and the top tip is to get a solicitor to review the legal pack. There is a reason why properties are sold in auctions and in many cases this is because there is something 'wrong' which would be picked up by solicitors/surveyors etc of you baught through an estate agent but can easily be missed in an auction. I know one example where the legal pack was missing the 'coalmining report' and turns out it was deliberate as there was a (propely saled) entrance within 50 meters which can afect mortgagability and another where there were certain rights excluded in the land registry documentation. On BMV then it depends on where you are as in my area of the midlands its impossible to get anything more than 10% BMV due to demand being so high in the decent areas. Thirdly I would read the contract super carefully as many sellers include all of their costs in teh contract so you can easily end uppaying 5-10k more than the bid price Auctions are a tough game and i would definitly thing carefully and do lots of due diligence. Having said all that its not a bad wayto buy property especially if you are looking at the refurb end
  24. I have looked at the 'black country' a few times including the areas listed - as well as north walsall. There are always loads of auction properties in those areas so its not difficult to get one - you just need to be super careful about which area you buy in as there are loads of 'run down' areas where you will not get a decent profit after flip. Obviously the properties in the decent areas of those towns will not be at the bottom end of the price range. In the end I decided to stay a bit further south in north birmingham as its got more potential and less risk but will cots more for initial purchase. I am sure its possible to make things work in the areas you mention as long as you due plenty of research
  25. It does come down to three things 1. how hands-on versus hands-off you want to be 2. how the numbers stack up in your local area. 3. income versus growth as a priority If you are totally hands-off then better to go where the best yields/growth i.e north. Similarly if you are down south where the numbers don't stack up from a mortgage stress test etc perspective then no point doing it just to be local. Same if you want a good yield. Personally I am in the midlands so can stay local while fitting the other criteria as well.