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  1. Like
    haf1963 got a reaction from james cockburn in Funding Buy, Renovate, Refinance   
    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
  2. Thanks
    haf1963 got a reaction from elliotw88 in Releasing capital for second investment   
    The 80% is a better option if you were looking to build a portfolio in a shorter time frame but if its early days for you and a few years delay is not a problem then 60% is indeed a good option
  3. Like
    haf1963 got a reaction from lindlro1 in HMO Purchase opportunity - what would you do?   
    a commercial valuation of 380k says to me its a workable project. The banks aren't going to lend on anything with risk thesedays and with any commercial loan its about the returns rather than bricks & mortar. Nothing to stop you offering 290 or something and seeing if there is scope to reduce the price. I am in the process of converting a 100k property into 8 bed costing 150k more and I am not worried about bricks and mortar value as the returns stack up
  4. Like
    haf1963 got a reaction from kirsteenb in 30 days to let BTL property after completion?   
    i would just say 'ok' to the condition as its not like they will demand cancelation of the mortgage if you go beyond 30 days
  5. Thanks
    haf1963 got a reaction from david graham in Realistic rent to rent cashflow   
    i gave a property to someone doing rent to rent simply because i don't have the time or energy to convert it to HMO etc - also they will pay for lots of day to day repairs expense etc plus rent is more reliable. Most likley afetr a couple of years i may well take it back and carry it on as a hmo myself. It was a 4 bed terrace and they converted it to 5 bed hmo so suspect they doubled the rent they are paying me so clearly its a workable model
  6. Thanks
    haf1963 got a reaction from dave t in Can directors of a Ltd company be chased personally for debt?   
    To get a Ltd BTL mortgage you will pretty much have to give a personal guarantee so i would say yes they mortgage company can/will come after you personally. I would say its very low risk as the mortgage company will start by selling the property and taking the proceeedings. I have had to do this personal guarantee and cant say I am very worried about it - as its pretty difficult for a LTD company with a few properties to go bankrupt to be honest.
    It is possible to get a BTL without the personal guarantee via specialist lenders or after the Ltd has a proven/profitable track record.
  7. Thanks
    haf1963 got a reaction from michael adams in No Mortgage on my own home - Decisions   
    While richard makes sense, I am in a similar position but, on balance and from a risk perspective, i kept my home mortgage free and started to work on joint ventures to make some cash for the next investment. Also depends on where you are in terms of strategy as I am looking short term to retirement rather than long term.
  8. Like
    haf1963 got a reaction from mark sloane in Making offers & desired equity   
    if its a decent area/yield then i would not worry about any uplift after refurb as it will happen by itself assuming you don't do an expensive refurb. I have the same strategy and in the early days failed to find a deal that stacked up and after 9 months of looking i just went for a deal that was 'break even' after refurb. When I remortgaged after 9 months it was valued at 15% higher than all my costs so decent result. I've done the same thing a few more times since. I sometimes add a small extension as well as refurb to add more value
    My starting offer is usually 10-20% below asking depending on various factors- i buy cash as that helps in the negotiations as well.
    The hardest thing is the first deal as you will always find reasons why the deal doesn't stack up when in reality its fine
  9. Thanks
    haf1963 got a reaction from dean brindley in Refinancing a BTL   
    Your numbers look decent and leaving 10k in is a good result in my books. your 2 options for taking more money out are
    1. add more value with extension/loft-conversion/layout-change etc. will cost you double your 10k refurb but add another 10k in value
    2. buy even lower - difficult these days with many people chasing fewer deals
  10. Like
    haf1963 got a reaction from mithril in Does a downstairs loo add value? (It would replace a larder)   
    no question a downstairs loos adds value and i also try and stick one in if i can. main issue is always drain access so if thats not far then i would do it for sure
  11. Thanks
    haf1963 got a reaction from omar mirza in Area and Type of Property Dilemma!   
    There is very little thats appealing to me about the wales proposition. Surely the starting point in any venture is fundamentals and you seem to be suggesting that the wales property fails on most counts. There is a reason why you can pick up the property cheaply and it doesn't sound like the fundamentals will be any better over the coming years.
    You are much better to go to the places in the north outside the big cities like preston/crew/etc where there is future potential and you can get better deals than the likes of manchester etc where gains are already priced in..
    Partnerships can make sense where you have differing attributes such as one person has finance and the other has building skills or other skills needed - otherwise i would say go it alone
  12. Like
    haf1963 got a reaction from kuro507 in Getting started with flipping   
    if buying with a mortgage then you need to be careful as most mortgage companies are not keen on people using their mortagess for short term flipping. May be better to find a JV partner to finance and then share the profits in some way. or look at bridging finance.
    The 2 main types of flips i would look at are
    1. deceased estate and just do a full internal refurb to add value
    2. add space by kitchen extension, garage conversions, loft conversion, onsuite etc
    Just remember the cost of buying/sellling/stamp-duty etc will need to be factored into the profit. Its a competitive area but with the right property, it can be done. Bromsgrove is pretty decent as have looked there a bit myself so its a case of doing your research about the market and then sorting out your finance.
    There are various articles podcasts on all aspects of flipping so plenty of knowledge out there.
    I suspect that you will initially find that you are super conservative and will struggle to find a deal that stacks up and you may end up doing the first at minimul profit but gain lost of experience
  13. Like
    haf1963 got a reaction from Phil Brown in Stamp Duty question   
    As i recall,
     you have to pay the extra 3% but can claim it back as long as you sell within 3 years
  14. Like
    haf1963 got a reaction from charlie murray in Additional Stamp Duty through limited company with multiple directors   
    You don't pay extra stamp duty if you have never owned a house in your own name before - doesn't matter if you are a director of a ltd company as its the company that owns the properties and not the directors.
  15. Like
    haf1963 got a reaction from kirsteenb in Additional Stamp Duty through limited company with multiple directors   
    You don't pay extra stamp duty if you have never owned a house in your own name before - doesn't matter if you are a director of a ltd company as its the company that owns the properties and not the directors.
  16. Like
    haf1963 got a reaction from matt a in Setup LTD company and Mortgage   
    Although you can setup the ltd company your self for next to nothing, i paid my accountant about £100 and got all the right paperwork and various other bits including using his address as my HQ address so i could avoid publishing my home address in companies house. The £800 is similar to what i pay for my annual accounts.
    Given all the costs involved in a LTd company, i am not worrying about an extra £100 for my accountant to handle the setup
    I am on my 3rd mortgage application - all through a broker and N&P building society and have no major issues - other than they need me to personally guarantee repayment hence my no-property salary etc was scrutinised.
    I had 1 property outside the company but have moved that in so i have a very clean setup i.e a salaried job and director of the Ltd company - no worries about personal taxation etc
  17. Like
    haf1963 got a reaction from robert gollings in Anyone else received an Investor Brochure from LendSwift?   
    I am giving it some consideration as it could be a good way to use funds while waiting on deals and the ROI is actually very good
  18. Like
    haf1963 got a reaction from mike westwood in Ltd company mortgage   
    N&P (norwich and peterborough) - i am happy to provide my brokers details via pm if that helps - his fee was paid by N&P so no hit to me.
  19. Like
    haf1963 got a reaction from ali asgur in Birmingham or Manchester?   
    I invest in birmingham and solihull as BTL is a expensive option with low yields so I haven't gone for that yet - obviously capital growth is excellent.
    The adjacent areas are a a godo mix of both growth and yeild so i tend to look at acopcks green, olton, shirley, hall green, kingsheath, kinsnorton, sheldon etc but you do have to be careful as most areas will have some dodgy sections as they join other areas
    yiled wise you have to go further north in birmingham so erdington, perry barr etc
  20. Like
    haf1963 got a reaction from stephen savastano in Some starting out advice please   
    understanding the legal pack is critical - at least the main points and i always get my solicitor to give the once over to my shortlist of properties - he tends not to charge me as i use him for all my deals. I don't bother with surveys as i am familiar enough to spot major/structural issues and everything else gets covered by by normal full refurb. To be honest 35k won't get you far in an auction..
  21. Like
    haf1963 got a reaction from richard brown in Valuation....Help??   
    I normally do a 'pack' for the surveyor which includes before and after pics as well as a detailed 'schedule of works' that justify the difference between the purchase price and value i use in my mortgage application. My properties are usuall tennanted by the time i revalue (9-12 months) so not sure about 'dressing' - though i doubt it will make much difference. Obviously you need to be with the surveyor at the time
  22. Like
    haf1963 reacted to stoil topalov in Tips for switchinf from BTL to new-build strategy   
    The only thing I can think of is visit the below websites - they have podcasts and forums too where you can get specific advise:
  23. Like
    haf1963 got a reaction from richard brown in Birmingham or Manchester?   
    I also invest in birmingham and richard is spot on regarding the different areas and yield versus growth.. Birmingham is also very competitive from a investor point of view so good deals in good areas are difficult to come by. I've done 5 BTL's and am now investigating flat conversions, commercial to rsidential and small developments as my next step
  24. Like
    haf1963 got a reaction from Nikki in Buy - Refurb - Refinance with Article 50   
    Am doing one right now and am of the view that article 50 or not - people will need somewhere to live so rental demand will not suffer
  25. Like
    haf1963 got a reaction from andrew martins tonks in Converting Houses to Flats   
    I am looking at something similar and i would say you need to focus on planning regulations as a priority as i just did a pre-app and got back some very useful feedback on my plan to extend & convert a corner plot semi into flats
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