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tomo222

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Everything posted by tomo222

  1. Thanks Alistair! I would agree with your comments. With the latter comment, are you hinting that keeping the same level of income is perhaps not necessary? Interested to know why you think that if so, just in general principle I can understand for example transports costs might not be needed as not travelling to work, but other than that struggling really to see where extra savings come? Cheers
  2. Hi - I have similar issue to others on this thread, but perhaps my case shows the lenders are really becoming weary in the current times. I am trying to sell my leasehold flat and have had 2 buyers pull out now due to lenders objecting to a clause in lease agreement with escalating ground rent. I bought the flat new from Bellway Homes in 2013. It came with a 8 year fixed period ground rent of £250 p/a. Then every 5 years after the cost raises in line with RPI (average of about 1.5% p/a). This is far less then some of the ground rent doubling clauses I hear of and read above, but lend
  3. Hiya, If I have a 5 year goal of replacing my £5K p/m net income from my current job with property investing, should I account for inflation in 5 years time to be more realistic? ie assuming avg inflation of 2% p/a, should I actually should be building a plan for c. £5,500 p/m rather than £5/ Also, if building out a model of how to get there, should you account for inflation in all your costs over the years? Just interested in how others plan/model when setting your goals with an eye on being accurate/specific as possible Cheers
  4. I hear ya but I think you'll be pleasantly surprised, as I think you have the cliche sourcers in your head rather than the smaller more bespoke sourcers. When they can source, provide the refurb and even get it let if you wish to, I think its good value. Especially when investing for the first time, or investing from a far (e.g. from London investing in North) when they have all the facilities/trades/contacts in place. I'm planning to invest myself with one of them this year so guess I'll find out how successful it is and will be sure to keep you posted, good or bad. Cheers
  5. Hi Matt. These are all smaller companies (<10 people) who leverage their networks. I think because their investors want to build portfolios themselves, so they aren't all content with simply providing investor finance and getting a % return. As a sourcing/turn key offering outfit you can scale your networks of trades to achieve better pricing and build good relationships with agents due to your volumes. Plus, once you've sold 5 or so deal packages then voila you have a deposit yourself to go.
  6. Great thread. Agree with all the comments above. I'm currently extremely time poor so have been looking at some completely 'hands off' property sourcing companies who can manage the full refurb for you, thus still deploying the BRR model but in an outsourced way. Typically their deals result in approx 15-30% of your money left in but I believe thats realistic in today's market and still good value considering they're doing the all the heavy lifting. I haven't actually taken the plunge myself yet on a deal as I have a residential move on the horizon which is the focus, but I think if you look h
  7. Hey, Time poor investor with a £100K starting pot - looking to invest for modest cashflow, with an eye on capital growth. BRR strategy identified to scale quicker. Found many deals on properties around £50K PP, that provide ROCE (post refinance) of approx 15-20% and net cashflow around £200/250 pcm. Calculated I can roughly buy 8 properties with my capital pot over approx 4 year period. This provides around £20K ROI p/a on my £100K capital starting pot (excluding any capital growth gains in the longer term). Question - Is there a BTL strategy out there that achieves the same sor
  8. Hiya! I'm struggling to understand the flow of money when refinancing a property, which I'm sure is simple to most of you 😛 ! Can anyone help explain if this example is correct? Stage 1 - Buy property PP: £100K Deposit: £25K (your money transfers to lender) Loan: £75K interest only mortgage (75% LTV) Stage 2 - Renovate Say you spend £10K of your own cash renovating Stage 3 - Refinance (say at end of 2 yr mortgage fix) Reval: £120K (£20K value uplift) Outstanding loan: £75K Current equity: £45K (Reval - Outstanding loan) Remortgage (at 75% LTV) loan: £90
  9. Hey Stuart - thanks for speedy response. The bit I am getting tripped up on I think is... where did you get "you initially invested £130K" from, assume you're adding the 25K cash for refurb from my bridge to the deposit? Why I find it confusing slightly is that the £25K isn't my money as such for the refurb, I'm borrowing as part of the loan, so thought the only cost to me is the £8.1K finance cost. Making my "initial investment" £105+£8.1K = £113.1K? Not sure. Cheers
  10. Hi There! I am trying to calculate a deal for a FHL purchase, using bridging finance for 3 months, including a topup for refurb. Post works the property would be financed via a standard FHL mortgage. PP: £350K Deposit 30%: £105K Bridging Loan: £245K (70%) + £25K refurb = £270K loan Cost of finance: £8.1K Reval: £425K How do you work out the cash released on refinance? Is this the same as "Equity Gain" or not as that takes into account all other costs? Thanks for any help!
  11. Hi, Does anyone know of a tool that displays price changes for properties for sale on Rightmove? A google search brings up some browser extensions, but links are dead. Wondering if there is a "go to" tool out there that people know of/use? I use Google Chrome but open to other browsers if such help exists. Thanks in advance!
  12. Hey! Thanks for the advice. Do you know if the 3 month ban will be extended? Not actually told me tenant yet, don't really want to unsettle them (they a good tenant and still paying me) until I get some clarity that there won't be major roadblocks. I had heard it may be extended by another 3 months...
  13. Hi, I'm getting conflicting information out there so thought I'd ask the forum. I have a property I'm planning to sell. Current tenant has been in for over a year and AST is now rolling. If I serve notice now, are my tenants still required to vacate in two months (per contract) or does the COVID-19 legislation kick in not allowing any evictions of current (despite the reason being because I need to sell)? Appreciate your viewpoints! Thanks
  14. Hey there! Can you or anyone else help me!? So fast forward and my sale is now not anticipated until Mar 2020. I wanted to estimate the tax if payable. Does the below look right to you? Questions 1. as the property is jointly owned (but only from Feb 2017), can we claim CGT allowance of £24K instead of £12K? 2. Where in this calculation can you correctly deduct sale costs from? Is it an additional cost you enter below "Gain after PPR Relief"? Thanks!!!
  15. Hi, I own a 2 bed flat in Sutton with my wife with approx worth £350K with £80K mortgage remaining. This is our residential home. I am looking to begin investing soon and have decided going LTD company route for tax reasons. I need to move home first (upsize to £650K property), but wish to keep this Sutton property in my BTL portfolio for its capital growth potential. Could anyone advise from a high level perspective, which method would be the most financially prudent to facilitate this objective? 1. Move flat into ltd company structure? (Not sure of CGT implications...)
  16. Thanks for your message! 1. Would a painter also fix this issue on the inside of the window (see pic)? 2. Contact any older painter or should I google for something more particular like "damp experts" ? Cheers
  17. Hi, thanks for your reply! When you say "fix the window", could you provide a little more detail as what the fix would be and what trade would it? I assume that isn the roofer's job you referred to? thanks a bunch!
  18. Hi, I have the following symptoms (that appears to be damp) in master bedroom en-suite of a portfolio property. You can see the on the inside there are marks on the ceiling, but also there seems to be almost crumbling or erosion of the wall/paint by the bathroom window. Interestingly, on the outside the brick work also looks to be exposed with some sort of erosion. I wonder if water is seeping in here... Please see the attached photos. 1) Can anyone help confirm what these symptoms appear to be? 2) What type of tradesmen would I look to get in to fix remedy this? Thank
  19. Hi, I'm in the fortunate position of having being able to amass six figure savings recently that I intend to begin investing in property, but not until 2021 due to personal circumstances. Obviously I want to try and keep my money rising with inflation until then, not stale in bank account. The best savings rate out in the UK market now are around 1.5% for a 1 Yr fix. Not amazing, but better than nothing. Bit weary of going into the stock market with this money with a short term view, especially as there is a mooted correction in FTSE coming in the next 24 months. Read a lot about P2
  20. Homeserve is another. I also feel your pain with BG. Been a customer for 3 years on Homecare 4 product and the first 2 years I called up at renewal asking for a better rate, they complied and gave similar/slight increase. Just had my renewal again and this time even after haggling, it was a substantial rise unfortunately. However, if I added a £60 excess per call out (not inc annual services) then the rate dropped quite a lot. I did a comparison against Homeserve as a new customer, was fairly similar. I think BG are the better company but defo do you research and don't pay over the odds.
  21. Hi, I am looking to use some spare cash to restructure my BTL mortgages, so I am actually borrowing very little. You may think this is strange tactic, it is, but that's another story (to do with reducing interest payments, giving me more savings than placing the spare cash in a savings account at historic low interest rates). This would only be a for a 1 year period when I would then look to remortgage again and take my money back out of these properties for other investment purposes. My question is does anyone know how I could structure a new BTL mortgage so that the lender's fees a
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