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Alja nosm

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  1. Thank you! m My accountant advised a SPV, as you mentioned the possible problems with intercompany loans the accountant said to withdraw from my directors loan account from development company to myself, then personally loan to SPV. Money can be moved back and forth When needed tax free. Keeps mortgage lenders happy.
  2. I have recently set up a property development company. Have a few projects now under my belt. I would like to add 1-2 BTL per year to build a portfolio along Side my development work. As I am hands on, being a builder I'd like to acquire BTL as renovation projects to add value and refinance, again very handy cash wise for me. I understand id need to set up a SPV property investment company for the BTL, that I understand. What's the best way to purchase the BTLs in the first instance? Properties will very likely not be to a BTL standard when purchased, I would not be able to get mortgage initially until works is completed.... so do I still purchase through the SPV, the SPV does the renovation then refinances or do I initially purchase property through my development company then sell the renovated property to the investment SPV? ( double stamp duty, legals etc, could be expensive ) What if I purchase a property through the SPV then find out the figures don't stack how id thought and leaves too much equity tied in? Can I still sell the property off or will this then be classed as a trade activity and risk future mortgage lending? I am booked in with my accountant next week but id like to go with a bit more knowledge. Obviously id like the most tax efficient and simple way of doing this but don't want to make it hard to get mortgages when refinancing. How do people manage the two methods of BTS and BTL and get this to work smoothly?
  3. Mine was £1300. And very economical as it modulated the power consumption so if its 12kw it wont always run at 12kw.
  4. Thought of having an electric boiler as an alternative? I too was deciding on whether it was viable to put gas into a property that was previously storage heater and immersion heater and went down the electric boiler route.
  5. Patience, sacrifice and hard work. They are the main things. You can have every bit of experience in all aspects but if you lack these three things you won't achieve what you want. I'd look at going down a trade/building route or a surveying route.
  6. It's hard to tell without more background on the area etc. To me at first glance I would- -Add driveway -keep kitchen and lounge wall. - remove w/c to allow for a larger kitchen diner setup. - keep under stairs cupboard. - loft conversion if theres demand and works with bedroom layouts on 1st floor. Bare in mind that the property is hip-to-gable so wont be much room up there and you'll find a fair few struts. You'll probably need to build a large dormer or build up the gable end. Tbh I'd keep it a 3 bed and keep the build simple as possible. What was your purchase price including auction fees?
  7. I would do the 2k over the first 12 months @£166.66pm, then return the 20k investment pot at the end of 12 months.
  8. Have you thought about joint ventures etc as with a 25-30k pot you'll probably find it hard to buy property in your area. You could do a few of those to gain more experience and increase your pot to then go on and do your own development fully? Whilst keeping your job and reduccing the risk greatly.
  9. As far as I can see it the competition is exactly the same as it was pre partial lockdown. They may not be motivated sellers, just proactive sellers. Knowing anyone interested in purchasing property will be spending their time during lockdown looking for it.
  10. How are you financing the company to buy property? You must have some serious cash to give up work full time so early?
  11. Agree with above. Dont think it stacks up for a flip. Also ask yourself do you want to invest £240k for 10-12% return on a flip? You could have 2 smaller flips with £240k and make over x3 that amount. Sometimes even if on paper theres a profit doesn't mean its worth it in my opinion. Looks like you've come to that conclusion yourself. No deal is often the best deal.
  12. Personally I think that route is not a good idea, in fact almost crazy. You'd be at your limit at every angle. Bridging, loans, credit cards, borrowing from friends and family. The amount of fees and interest I expect would wipe out almost all your savings buying at a 5-10% downturn. I dont think you would even get a btl mortgage based on how stretched you would be. If you had some decent cash and not borrowing from every angle you'd have a chance. ....Perhaps maybe go for a renovation that you can uplift the value. Contact a broker that can arrange a light refurbishment bridging loan with a pre established finished property vaule and a btl product to move on to.
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