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dennis hughes

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  1. Cannot stress this enough. Set out the exact terms, rights, responsibilites, finance split, profit split, what happens if you go over budget etc, and agree it with your JV. Leave nothing, however trivial it seems at the moment. Think of everything. For example, the electric, gas and council tax while you are refurbishing the property - you may consider this as part of the "refurb" figure you agreed with your JV, your JV may consider these costs to be part of your contribution to get the 50:50 profit split....... Write, agree, sign.
  2. It sounds like your "minor elements" might be a bit more serious than you thought. If HSBC deem it "unlettable" have they given any reasoning behind that statement? Can you ask? If the property is in such poor condition that work over and above a general re-decoration is required, I think you may struggle to get BTL finance from the start. You may need to look at Bridge to BTL finance instead, more expensive sure, but you can revert to BTL as soon as the property is up to standard.
  3. It is possible to forego the searches and purchase an indemnity instead. Speeds things up considerably, but you must do your due diligence. Check that your lender would agree, some will, some won't. You can also assess flood risk, mining risk etc online yourself before deciding.
  4. I appreciate how you feel, believe me. But didn't they teach you at Landlord school that your time aka hourly rate is 0 per hour? You are wasting more hours pursuing this than you can ever possibly expect to recover, move on. But, I'll say again, I appreciate how you feel, believe me.
  5. As you are already investing in HMOs I am surprised that you use the term "heavily inflated". An existing HMO is likely to be viewed as a commercial property by the valuer, and then the value becomes a factor of gross rents etc rather than bricks and mortar. I'm afraid that buying an HMO, already licensed and in operation, at it's bricks and mortar cost before it became an HMO is a little like trying to have your cake and eat it. Not gonna happen, sorry.
  6. @nicholas bYou seem to be forgetting that for some landlords, capital growth is not their main objective, yield is. And as you are keen to address the commercial aspect, the buying power of that £475 ten years ago now equates to £350. To keep pace with inflation, the rent should be around £613. I am well aware that there are other factors at play, market conditions etc etc. Just a comment.
  7. What is your companies SIC code? That may be the problem. The wrong code would be a disconnect to the mortgage lender. And as for a broker, you will not go wrong with Cyborg Finance (previously Bespoke Finance). @Adam Hosker hello@cyborg.finance Access to most (all?) the market, they will see you right. And I say that having tried and failed to use them three times now on deals that fell through - by rights they should be telling me to go away, but they continue to give the best broker service we have had thus far.
  8. Not every 18 year period follows the norm. The area we work in is currently booming with high demand chasing relatively low supply - post lockdown saw a huge number of marriage/couple breakups so the rental market went nuts as well. Our opinion, for us anyway, is that now is the time to be fearful when others are greedy. With all that is going on, brexit, furlough ending, second wave already happening, we will look to move back into the market next year. Having said that, it is only our opinion, and it is the difference of opinion that make horse races...
  9. https://bespokefinance.info/ They have a new name now, cyborg something or other! but these guys will sort you out. @Adam Hosker They will tell it straight, no bullshit. They have been so helpful to us, yet we have never managed to get a deal "over the line" - our fault, not theirs. You won't be sorry.
  10. With Julia on this one. Although...last one we did we put down laminate in the living room, then took it back up and carpeted. Room felt much cosier....
  11. Welcome to the world of bridging finance. Now, you have to take these figures and put them into your overall plan for this property. Does it still work as a flip? Do you want to hold it as a BTL - does that work? Should you walk away and look for the next deal? It's always about the numbers, you can never spend too much time crunching them!
  12. Grrrrrrrrrrrrr. Do NOT attend any property training seminars, all the information you need is available on this site and others. By all means buy an HMO, as suggested, but you will almost certainly need to pay cash, in full, to own it. Few, if any, lenders are likely to provide funds to someone who: Has no previous letting experience Has no other rental properties
  13. Hi all, We are in the process of purchasing a property remote from our home (100 or so miles) for which we are taking bridging finance. Finance, Solicitor etc all in place, and we just have to press the GO button for it all to happen. We are currently just coming to the end of a refurbishment project, again remotely, and the idea was to complete this one and then move onto the next. However, since the lockdown, we are concerned that should we proceed with the purchase we will be unable to source materials to start the work - our fear is that we purchase, then it just sits there as our bridging finance clock ticks inexorably on. So we have to make a decision: Re-negotiate the purchase price with the Dubai owner to reflect the increased finance risk... Negotiate an extended completion of say, three months. Walk away completely. Proceed on agreed terms and hope that material supplies are available. Any thoughts?