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tibbyuk

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  1. Phew, not just my accountant then! I think as long as you can point to your missus tangibly doing something, and saying "here's the market rate, which is £20kpa, but she work's 1/4 of the time" then it's pretty defensible. I do know the dividend route is more beneficial dependent on tax status, but my personal mortgage broker has made me promise to not put my wife on until we do our next 5 year remortgage on our home, as apparently it cuts down some lenders? Once this is sorted I will look to put my wife on as a shareholder, most likely with A/B shares, on my main business (property is just the side hussle!)
  2. Just incase you don't want to put the missus on as a shareholder, if you want to employ her and pay a salary, then it should ideally be comparable to market rates (I think this more counts for overpaying someone rather than under) and you need to just be able to prove she's doing as you say. E.g. If she's helping with the books, just have her access, some emails etc. This was the advice given to me by my accountant, so your mileage may vary, but check with your accountant!
  3. Hey Barry, While I don't have direct experience in this, I do know some ex-pats have had success sourcing mortgages in their new home-country against a property overseas i.e. You could get a mortgage from a Republic of Ireland bank against a property in the UK?
  4. Just to add to what others have said here: I'm sure you've done your due-diligence, but if it was me I would want to look at how much the service charge has increased (or even decreased!) and then factor that in, as the impact to you will be greater and will increase at an exponential if you have the parking space. It would also be worth asking what the state of the parking is, and if there's any planned works, and if the cost would be shared only by those who have a parking space e.g. If they're planning on re-laying the whole underground car parking, and splitting the cost only between those with parking spaces (which sounds fair!) how much of a lump sum cost and/or uptick in that 'extra £190' cost could you see? Hope this helps!
  5. Hi Ewanah, I've personally not got a holiday-let, but have been looking into one on the Yorkshire coast as our next investment. I can't speak for legislation, as I'm not aware of any local licensing laws in Glasgow (e.g. in London you can't have a short term rental for more than a set number of days), but I think one of the main things of note is that not all lenders are comfortable with Holiday lets/Serviced Accommodation, so you may need to hunt around and/or get less competitive rates. Generally Holiday-lets seem to be more profitable than vanilla BTL's, but that is heavily predicated on the situation being right e.g. is it near local landmarks, the finish of the property needs to be a tad higher (in my opinion), the wear and tear will be higher and you'll need to repair the smaller issues more quickly than you would on a normal BTL. You also have costs that you may not have had with BTL e.g. towels/linen (need multiple so you can have some being washed while some in use), internet, council tax, regular cleaner, key safe, higher quality of furniture etc. You will also need to workout if you're going to self manage, or use a service (such as Airsorted although not sure if they operate in Glasgow). If you self manage then you need to get the properties on a few of the Online Travel Agents (OTA's - AirBnB, Booking.com etc.), and then be on-hand to answer queries and check-in and out guests. There's a chap called Dale Smith who has some good resources on his site around holiday-lets (he has quite a few in Whitby/Saltburn and surrounding areas):https://www.investicity.co.uk/resources And he's also done a few interviews for the IPI podcast which are worth a listen. Hope this helps! - Tommy
  6. I think the point is, that from June 2nd we won't be able to charge that £20 fee to tenants? My understanding is that you'll be able to charge a holding deposit, but you'll need to pay for referencing, and you can only deduct the £20 for failed referencing if the tenant has purposefully misled you on their ability to pass referencing. I personally think that the referencing companies will provide an 'advanced questionnaire/checklist' which we as landlords (or our EA's) will give to the prospective tenant(s), and they'll have to fill out, proving that either they've lied (if they fail the actual referencing) or would not pass referencing and thus not worth carrying forwards.
  7. Hi Mark et al. Just to add to this, I'm going through a similar amount of hell in a similar structure with the main difference being that I am in business with a fellow IT Contractor with our 2 separate IT companies lending inter-company loans to our new Property SPV LTD company (which we are 50/50 shareholders). The lender we're going through has been asking really odd questions, such as asking our accountant to prove they have indemnity insurance to provide accountancy services for us. They've finally submitted the final offer, but they've stipulated we can't use a inter-company loan and must provide funds via a director's loan! It's really infuriating, as the vendor has been really patient through the multitude of hurdles we've had to jump through, and we thought we were finally there and now they've pulled this out! It's good to hear that you already have setup mortgages this way via your LTD company - do you mind if I ask what sort of rates you're seeing on these more 'experienced' lenders for the LTD company BTL route?
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