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About TommyG

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  1. Nothing to add, but just wanted to say we use Alan Boswell on our portfolio and they've been great!
  2. Hey Max, Slightly confused by what you're exactly trying to do. When you say refinance the house into LTD company - do you mean you want to move your current home into a BTL? Or are you just wanting to release equity from your home mortgage and then use that in a LTD Co to buy BTL's? If it's the former, you'll need to pay SDLT on the house, as in essence you'll be moving the asset from your name, into a company's name. You may also need a new mortgage provider, as your current one may not lend to LTD Co's - your best bet would be to work with a broker. For both, the bank shouldn't really have any say in what you do with the equity you release, but they may be confused by your stating you want to release the funds into a company. Your best bet will be to release the funds into your name, and then start a LTD Co and then loan the money into the company as a Director's Loan (i.e. you personally are loaning money into the startup company) and then use this for purchasing BTL's. Hope this helps! - Tommy
  3. Hey Matt, Bit of an annoyance, but it does sound like a development to mortgage product might make sense if you're set on sticking with this property? Precise do a similar product which I've heard is quite good, but disclaimer I've not used it myself: https://www.precisemortgages.co.uk/BuyToLet/RefurbishmentBTL I'd say the main point is to make sure the deal still stacks up if you have to pay for GCH, replacing windows (also, cost in energy efficient sash windows perhaps if you do like the charm), and anything else the report says you'd need, as without the right EPC you won't be able to let the place out.
  4. Fair enough - I do know there's a property education/meetup thing run by Dan Hulbert over in Gravesend that I've been meaning to pop over and check-out. This might be easier for you to get to?: https://www.eventbrite.co.uk/e/unlocking-property-knowledge-july-refurbishments-tickets-63562922412
  5. Not sure if you're both aware, but the PropertyHub hosts meetups the first Thursday of every month. Really great get-togethers which are more social than anything (i.e. no people trying to hard sell you stuff), but it's great to meet like minded people who are either just getting started or are established and can offer some advice!
  6. This will effectively make you a trading company and not a SPV (a SPV only has 1 SIC code). I do believe some lenders only lend to SPV's and not trading companies, and additionally you will not benefit from tax relief on close-down of the company should you go for entrepreneurs relief. For this and other reasons, most people performing 2 activities will have separate companies, 1 for say BTL, 1 for flipping.
  7. Mate, don't always go religiously by the scales. It's not as convenient, but a dress-maker's tape measure is normally a better way to do it, especially if you are putting on muscle.
  8. Yeah I've lumped it and had to chuck £25k on my mortgage to get the LTV I want, it's not ideal, but like you I didn't want to chuck down another £500 for a new valuation/lender that might come out the same.
  9. Hey Ross, I think that unfortunately surveyors are down-valuing properties at the moment, as I've just had my main residence down valued by £50k, which is less than ideal. It seems that they don't take comparables into consideration for a remortgage (or at least the lender I'm going through doesn't), so they just use an index price. You can normally appeal the valuation, but I suspect ultimately you'll have to go through another lender with another valuer and hope for the best. Some others on here may have recent experience of the appeal process and can weigh-in.
  10. Hey Sian, As I've not gone through it I can't confirm, but you may want to engage the services of a broker as they'll have a better understanding of the lenders and whether they'd accept a charge against the pension (if that's possible)?
  11. Hey Sunny, I think you're right to be cautious on these sorts of deals. I can't speak from experience, as quite honestly I wouldn't touch this sort of deal, but generally it sounds like they'd bake this into the price you're buying from them anyway and you'd be left with an overpriced asset at the end of it. As with all investments though, it's worth doing your due-diligence - especially to see what previous developments the company has done, and how happy the owners where.
  12. I second that, although I've not done the University Courses on Property Hub yet (shame on me!) the Podcast and reading of Rob Dix's book really helped. I've not sought out any Property Coaches, but that's more a personal thing asI kinda like to carve out my own way if that makes sense? Also, posting on here for next steps is a good idea, as you'll get a mix of stuff. The main one for your first steps, and something covered in Rob's book, is about choosing your strategy as this will really help you decide on how you're going to proceed and will be worth sitting down and thinking about.
  13. Hi Alex, As always check with an accountant/tax specialist, but from my experience: - Can any of the cost for my residential property be offset as Office in any way? Any part of it's mortgage? - Yes you can claim a small portion of expenses for 'Use of Home Office'. - Dinner - Only while away from your home office location on business e.g. going to view properties in another city and staying over/back home late. - Some of the travel expenses to be paid through company card - You can charge any travel expenses for business use e.g. going to an investment area, going to see your accountant, going to a property meet-up. - Any Clothing or anything can be purchased? - Generally this is a no, but I believe you can charge for any safety clothing e.g. Overalls and steel toe-capped boots. - Any Gadgets such as new phone to be purchased? Will if reduce the taxable amount for Corporation Tax or Can it be versus Divident Tax? - I believe you can own 2 phones through the business per director/employee. This will be down as an asset and not an expense, but will come of your profit. I would check with an accountant on this one. This won't come off Dividend tax, as that's off of you personally. In general, if you are doing something wholly for the business you can charge it as an expense. Including training (such as property training courses) but there's a slight grey-area that it should only be training for an area you have knowledge in and you're furthering it. If you're not sure on a lot of these things, it's probably sensible to engage an accountant for your company.
  14. Hey JJ, Check with your accountant, but I think the general rule if your company is a SPV is that no more than 20% of your income can come from this extra activity. I've not tested this past lenders before, but I think it would only come into play if they looked through your finances and questioned where the returns came from, and you'd just have to validate it with some documents showing the loan, as they want to be sure it's not dodgy nor is it going to get the tax man chasing you, as then their 'first charge' on the asset isn't really a first charge, as the tax man can supersede them. In regards to loaning/investing from LTD co - I do this from my other company, and also do it as a means to invest in my property company from my main business.
  15. Hi Andrew, I may be wrong, but I think this is where the PG's and the first charge on the asset covers a lot for them. The biggest risk for lenders is the tax man, as (someone correct me if I'm wrong here!) the tax man will always supersede their first charge should your company build up a big tax bill, so they put more stringent checks in place, and will pursue you through the PG. I have gone through BTL mortgages both personally and through my company, and the checks in place for my company was much more stringent, and some lenders go as far as to say they don't want you to have more than X amount of properties with them as to not take on too much risk. On the topic of LTD co mortgages, I've definitely seen the competition in the marketplace bring the rates down over the last few years. They may not be quite commensurate with the personal market, but it is a lot closer.
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