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Everything posted by PoalaMCR

  1. Hi, I'm looking to remortgage a property and put it on a B2L (it's currently renting but with Consent to Let and the fixed term is almost up). My broker has come back with options and said that based on current valuations and other variants, my best option is a 5-year fixed. However, with the market currently booming, and Rob & Rob backing Fred Harrison's thoughts that the boom will last another 5-6 years before we see a crash, I'm a little worried that I will be in a really difficult place by the time a 5-year fixed ends. I would definitely feel more comfortable on a 2-year (plus I could very likely remove more equity after 24 months). If I go on a 5-year fixed now, I can remove 5k equity. If I opt for a 2-year, I won't be able to remove any equity. - This is based on the valuation from NatWest coming out 15K LOWER than I had predicted (it's a new build and no-one has resold yet since they were built 5 years ago so values are hard to judge from 'recently sold' prices. Thanks for any ideas or advice on 2yr vs 5yr.
  2. Hi everyone, I'm ready to proceed on a purchase that I am keen to have completed before Christmas (let's say 19th Dec max to bring it to exactly two months from now). Does anyone recommend a reliable solicitor that could complete all services quickly? Ideally someone who you have had experience working with under a tight deadline.
  3. For the insurance I used this broker - https://www.andrewbull.co.uk/ if you go to him please let him know you were recommended by Samantha Latchayya - you can also tell him its for a similar situation - that might help speed things up for you! Good luck!
  4. Hi, I did - and everything went smoothly. I've contacted her for you last night to see if she would be able to help, as soon as she gets back to me I will let you know and hopefully pass on contact details.
  5. Hi, My insurance is up for renewal on my property which I rent to the Council (and who, in turn, rent to DSS tenants). I'm having some trouble finding a suitable insurance quote with my current broker that covers these circumstances. If anyone has experience letting to the council I'd be really grateful if you could recommend your insurance broker or what insurance provider you use. Thanks in advance.
  6. This, I know, is a really silly question which I'm sure has an obvious answer.. but I'm going to ask anyway as I've never ever come across the answer even when reading articles and case studies about bridging finance. I feel as though I know all the in-and-outs about bridging finance, but there is one thing that is never mentioned... Where do you get bridging finance from? You get a mortgage from a bank or building society... but where should you go for bridging finance - independent loan companies I'm sure - but anything more specific? I just find it strange that in all the podcasts/articles etc that I have read so far, the content of where to go to get one has never come up, and there's never been any suggestions or recommendations of where to go for one. Can anyone who has used bridging finance before recommend a respectable and reliable company? TIA
  7. Hi, I've been re-listening to the Property Hub podcasts, trying to act on all the advice given. One of the earlier podcasts mentions the Housing White Paper which is released each year. Rob & Rob recommend that you read this each year. However, I can't seem to find it anywhere. Does anyone know where this can be found, of if perhaps, the Housing White Paper in no longer done? TIA!
  8. Hi everyone, I have recently acquired a property which I felt was a brilliant deal at the time. It was a great opportunity and I felt really good about it. The only thing is, the sums don't add up so well. I'm definitely not a numbers person and I am very new to this... So I was wondering what your professional opinions are.... My father was selling a property (large 3-bed mid-terrace in Heywood, Greater Manchester) and I purchased it from him for a cost of £75k. I used a mortgage of £71,250 and paid him £3,750 cash. I spent about 2.5k on broker, solicitor etc. (total costs to acquire: £77.5k). The unusual bit: Because I was a 'first time buyer' I couldn't get a B2L mortgage on the property outright. I therefore went onto the deeds with my dad for 6 months, before remortgaging with a 2 to 1 transfer, removing him from the deeds in exchange for all the equity released in the mortgage. For that reason I didn't pay a deposit towards the mortgage. I signed a 5-year contract with the council who pay me £375 per calendar month with a 5-year contract. It's guaranteed rent whether it's rented or not and very hands off. What's more, the house was in desperate need of a refurb when I acquired it and the council renovated it free of charge. (new kitchen, bathroom, floors, doors, boiler, etc). I have it on an interest only mortgage paying about £125 per month. Considering the numbers, my gross yield is 5.8%(4500/77500) and my net yield is 3.6% (2800/77500) Super low.. right? Furthermore I'm not even sure how I would calculate my ROI.... I paid my dad 3750 + legal fees of 2500 = 6250. Does that mean that the ROI is 2800/6250? = ROI of 44%.... Really? Thanks for your support.
  9. Hi, does anyone have/recommend building insurance which covers housing association as lead tenant... I'm letting to my local council. Looking for quotes to get this in order as soon as possible. Thanks.
  10. Hello, I've read many of the Rich Dad Poor Dad literature and have seen that the Kiyosaki's CASHFLOW board game has been heavily advertised throughout. It's quite a pricey board game (you can get it in the UK for around £70.00) - something Kiyosaki explains in his book is 'in order to attract the right target market with a higher retail price'. I wondered has anyone played this board game and is it really as good as they say it is? Alternatively, does anyone recommend alternative 'games' or training? TIA.
  11. Assume that the 2.74% is 5yr interest only fixed. - yes What is the rate on the 5yr fixed repayment? - according to the illustration, also 2.74% What variable rates have you been offered at 5 yr? - I have not looked into this. What rates have you been offered at 2yr? Have not looked into this (mainly because the contract with the council is 5 years so ideally want it fixed over the contracted period, not have to think about this property again and then look into new options once the contract ends) Also useful if you could add details of product fees and broker fees if these differ between products. - Broker fee £995 minus a £350 mortgage incentive from Bham Midshires. What is the net rental yield (in %) before finance costs? 5% Does the council guarantee rent amount change over the 5yr? If so, how? - It does not change overtime, it's a fixed rate. Thanks.
  12. Hi everyone, I'm looking for opinions to help me make a rather large decision on a property I am looking to 'remortgage'. It's a bit of an unusual situation which I will explain as briefly as possible below. I've come to Property Hub as I know I will get impartial and professional advice and opinions from people who have 'been there and done that'. Thank you all in advance for your opinions. My dad and I co-own (both our names on the deeds) a property with no mortgage. My dad bought it outright, and my name was put on the deeds to help me be recognised as a home owner (to allow me to get a B2L in the future). A family member used to live in it - it's never been rented. My dad wants to retire and sell the house, so we have decided that I will essentially buy him out of the property. I'm going to be taking out a buy to let mortgage on the property. It's a 2 to 1 mortgage so my dad's name will be removed from the deeds, and he will receive all of the capital taken out of the property. Moving forward, I have signed a contract with my local council who are going to renovate the property free of charge and then sublease it from me for 5 years. It's guaranteed rent every month for 5 years (30% lower rent than I could get if I did it all myself but in my opinion worth it for the renovation which I didn't have the capital to do myself). The renovation is now complete and it is time for me to start the remortgage process. This will be my first B2L. My broker has recommended I get a 5-year fixed, interest only mortgage. I know that this will mean I am left with more capital each month to save for future ventures, however I feel a little uneasy knowing that my debt will not go down and also believe I could get a better interest rate deal if I were to get a capital plus interest repayment mortgage. I've listened to the podcasts on interest rates cancelling themselves out, but still feel a little nervous. I've been offered an interest only mortgage at a rate of 2.74%. The number of mortgages I was eligible for was quite limited because I am using the Council who will have a hold of 20K in the property which they are eligible to take should I cancel our 5-year contract early. I'd be very interested to hear your opinions on the type of mortgage I should go for. - Fixed rate or variable.... 2 year fixed or 5 year fixed.... interest only or interest and capital. The mortgage company is Birmingham Midshires. Thank you for reading this far and I look forward to hearing your opinions...
  13. Hi there, I'm looking to purchase a property with a buy to let mortgage and need to know if I'm a first time buyer or not. Seems like a simple answer would be obvious; but I have two brokers telling me different. To summarize, my husband purchased our home last year with a 'Help To Buy' mortgage through the government's scheme. I have absolutely nothing to do with this property aside from living in it. I've always thought that meant that I would still classify as a first time buyer, however a broker has recently informed me that due to new legislation I am NO LONGER a 'First Time Buyer' as I have a spouse who owns a property. Having found a great B2L deal, I've consulted another broker who is insisting that I AM going to be classified as a 'First Time Buyer'. They claim to have got this information from 'Target'. Of course whether I am or not is going to determine the type of B2L mortgage I am able to attain. I appreciate any help on this matter. Thanks in Advance.
  14. Hi there, I'm looking for a broker who comes highly recommended and who specialises in buy to let, preferably in the Greater Manchester area. Can anyone recommend a trusted broker who ticks the boxes? Thanks in advance.
  15. We've recently purchased in Openshaw. It's a 10 minute drive to Piccadilly (on a good day) and so ideal for people who intend to drive to work. Also close to two train stations and a regeneration area.
  16. Hi there, I invest in properties in and around Manchester and am looking for a broker that I can use long term that specialises in buy to let properties and who has some knowledge of the area. Any recommendations? TIA
  17. Hi there, Thorough the passing of a family member, my father recently came into full ownership of a property (he bought his parents’ home back in the 60s when the council home they lived in went on the market) His parents have since passed away and the property now is in his ownership and unoccupied. Value of property is £75-85k. My father wants to sell the property to release the equity and retire slightly earlier, and I would like to purchase this property through my limited company, to rent out. I will require a [buy to let] mortgage for the purchase. My dad is in a position to sell this to me below market value to help me out. However, I have been reading a lot about Capital Gains Tax and other restrictions that could potentially make this illegal or non-worthwhile. Another option could be a 'gifted deposit' from my father which would bring the total cost of the purchase down, this is something I don't yet fully understand. Has anyone been through this process or does anyone understand the legalities behind this? I have done lots of online research but every situation is different and haven’t found anything specific to my situation. I will of course seek advice from an FA but wanted to start here first. Note: I'm a relatively new investor and this would be my second property. The better the deal I can get on this property, the quicker I will be able to invest in my third property. Thanks for any comments and advice.
  18. Hi there, After lots of deliberation, I have decided that in order to get myself started on the property ladder and finally make my move into a career of property rentals, I am going to open up a Ltd Company. (To keep it short, my spouse owns a help to buy mortgage, meaning unless the equity loan is paid off for this home - which we cannot afford to do- , I am not allowed to apply for any other mortgage. The only way around this is to set up a Ltd company.) As someone who has not run a Ltd company before and does not know a great deal on this matter, I want to know if anyone has any recommendation of sites, books, courses etc. that are useful in starting up an Ltd company for property purposes? Has anyone been through this themselves? A lot of the literature available on limited companies and property are US based and so not relevant for the UK market. If anyone could recommend any literature or other educational tools, I would be most grateful. TIA.
  19. Hi there, I would like to know if anyone has any experience with renting houses to their local council? I am considering a scheme with my local council whereby they will rent one of my properties with a guaranteed rent for up to 5 years, whether or not they fill the house with tenants. They guarantee to return the property in the same or better condition once the contract ends, and in some cases they have the budget to renovate the house, so that you don't have to, at their expense (my local council has funding for this but not all do). The upside is that it's a contract for guaranteed rent payments every month, no matter if the council find someone to live it it, or not, and no matter if their lodgers pay the rent or not. The downside is that they pay (approximately 20%) below average rental. Has anyone been through this before and would they recommend it? TIA
  20. Hi everyone, My, now, husband and I bought a great property in Manchester last year using the Help2Buy scheme. It's all in my husband's name as my part-time salary at the time wouldn't have helped gain the mortgage. We only put down a 5% deposit and took an equity loan for the rest of it, and we used the Help2Buy ISA scheme to get 25% of our savings added onto our deposit. A fantastic idea at the time as it was the only way we could have ever got onto the property ladder and stop paying rent. - so no regrets... BUT Now we find that we are stuck with an equity loan that doesn't allow us to invest in another property unless we pay it off (technically as the house isn't in my name, I could get a property on my own, but the Help2Buy house can't be rented out) We know that our options are to pay off the equity loan (difficult) so that we can do what we want with the property, or for me to go solo in investment (a little daunting) and for us to keep living in the Manchester Help2Buy home. I was wondering if anyone else had been in this situation, using the Help2Buy system to get into property, and then moving on from there? I'd love to hear from you if you have! Thanks!
  21. Hi All, I'm really interested to hear how you all got your first three properties. I'm about to start investing and think that the first few investments will be the most difficult due to time, knowledge, money etc. etc. etc. I'd love to hear your start up stories * how did you get the funding? * how did you find the time? * what is your advice to people about to start investing? * would you do anything differently looking back? * did you live in the properties yourself or go straight into flipping them... I'm really interested in learning how everyone got the ball rolling. Personally, I'm interested in doing buy to let but realise that flipping a property might be a way to make some money for me to help me get started. I'm also really interested to hear from people who didn't start off with lots of money (like myself) and who do this to break away from the 9-5 rat race... I look forward to hearing from you! Thank you!
  22. Hi everyone, I'm new to the forum and also to property! I wanted to pop a message on here to introduce myself and start my property immersion! So a bit about me: I'm 28 years old and I'm keen to start my property portfolio. I've been stuck in a dead end job for the past couple of years and I am dead certain that working for someone else until I am 70 so that I can live the rest of my years on a small pension is not the way I'd like to go. Property has always excited and interested me and I'd like to get on with it now! In terms of property, my husband and I own a new build, (in his name only) in a great part of Manchester that we are looking to pay off the equity loan and rent out. I have some savings ready to buy a second property for the value of around 80k, which means I'm looking for a really good deal. I'd like to do a B2L and rent it out either privately or through the council's scheme whereby the rent is guaranteed. The problems I've faced so far is all the jargon that goes with the fact I have a help to buy equity loan which is stopping me from progressing as quickly as I would like, and being able to get good deals when cash buyers are enticing people and getting the best deals. I think that getting my second and third properties are going to be the most difficult because of money and time, but after that I am hoping to reduce my working hours and focus much more on property. I'm also starting to consider starting a business for the property investments but have almost zero knowledge on this and need to research a lot. I'd love to get involved in the meet ups and also speak to anyone who is also interested in property, maybe at the same stage as I am or who has been through where I am now and come out the other side! Well here goes...
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