00mrmark00

Evening all, quick update - had the engineers report - not a progressive issue and has been reported as historic settlement which most likely occurred early in the life of the property. House was built 1930. I do like the house and would like to proceed, but concerned about future buyers similar concerns when it comes to move on. That said this is for the family home not investment and we are likely to be here for some time to come. Appreciate any comments. Cheers, Mark.

Evening all, Has anyone ever encountered subsidence before during the purchase process. Currently have a purchase going through and the Home Buyer survey has discovered some historical subsidence. The current owner, (been there 60 years) claims they know nothing about it. However, when I try to get a quote for buildings insurance and mention that previous subsidence has been discovered, it seems to be a real turn off for the insurance companies. I have now been asked to get a structural defect survey done, to the tune of £450 to determine the extent of the damage and if there is any further risk, before the under writers will entertain any sort of cover. Any advice gratefully received. Cheers, Mark

Thanks all. Interestingly I contacted the HSBC applications help desk on Friday and the guy I spoke to had no understanding of what an SPV even was and told me to to just submit the application as it needs to be passed by an underwriter anyway. Today I get a call from someone there asking me to confirm the source of the funds being transferred in and the nature of the business and said that it still needs final approval, but should be ready within a week. Bizarre - we shall see what happens...

Matt My rule of thumb, which is prob pretty conservative compared to most, is £500 PCM rent for every 100k in value. Which gets you at approx 6% gross and and 10% ROI (29k invested) deposit, stamp and legals. Not assuming any remedial work. There are loads of ready to move into properties at 100k in good areas where I am. Let me know if you want any advice. My challenge is how to release the deposit or part of it to move onto the next. Cheers, Mark

Hi Matt/Derek I'd been keen to see this BRR work as it is something I would like to be able to do. Currently I have 2 BTL with approx 35k tied up in each and no scope to refinance. Didn't really think about BRR when I bought these. Going forward I would like to be able to BRR and get as much money out as possible. The target is 6 properties, which should give me about 1800 month before tax. But not sure if this is all pie in the sky... Have you ever seen it done? Cheers, Mark

Hi Matt Depends how long you expect the refurb to take. Prolonged exposure to a bridging loan could be expensive. I believe you can remortgage after 6 months assuming you don't have any restrictive redemption fees. An issue I have recently found is the refinancing valuation not being anywhere where I need to be to release the money. So you need to make sure the purchase price plus costs is well below the average selling price for it to work. 5.8 is not to bad from what I hear. Few people are prepared to declare their yields, but for a 2 bed terrace in a decent area, I would accept that. The worse the area, the better the yield!

Thanks Dino, I'll look at Santander. I thought there would be no issue with HSBC as I spoke to someone there yesterday and they didn't mention it being an issue. Even at the start of the application, it asked me the nature of the business and allowed me to select "68209 - Other letting and operating of own or leased real estate" It was only the small print at the end where I spotted it and questioned it... I cant see how it is even an issue to be honest... Cheers, Mark

Evening all, just spent half an hour filling out an online application for a business bank account with HSBC, only to get to the declaration screen at the end which states... Among other things "the business is not a Special Purpose Vehicle" I spoke to someone on the online chat and was told they don't have any appetite for BTL businesses at the moment. Can anyone else recommend a decent business bank account for managing BTL properties please? Cheers, Mark

Thanks Debbie, so you thank that is fair? What is everyone else paying out of interest?

Hi all, Apologies for hijacking this post - but as my question is on the same lines it seemed appropriate. I am about to purchase my first BTL via Ltd comp. My accountant wants £40 month + VAT for what seems like very little. Could I defer this for the first year or until the accounts are due? Obv after that, I'll need to pay monthly. Also, does £40 PCM + VAT seem reasonable? That covers 1-4 properties, so will get cheaper the more I add, but for now, seems expensive to me. Cheers, Mark

From my experience would need to be a cash investor as a lender wont entertain that sort of arrangement. I have tried!

Try London & Country who are free!

Spotted this which has some useful info more for renters, but good info... I.e. "average rent's now £943/month, and an eye-watering £1,640/month in London" Enjoy https://www.moneysavingexpert.com/mortgages/rent-a-property/?utm_source=MSE_Newsletter&utm_medium=email&utm_term=06-Nov-18-409-5&utm_campaign=nt-hiya&utm_content=1

Hi Lee, I have been looking into the same and the advise from my accountant who seems to know a lot about property is to setup a separate trading entity with the appropriate SIC code. If you begin making substantial investments into property up to a point that it would no longer be classed as a trading company, you would lose the right to entrepreneur’s relief. I cant remember the in's and out's, I can dig out the email if required. Cheers, Mark

This link maybe explains it a bit better - https://designfor-me.com/advice-and-tips/how-big-can-i-build-an-extension-without-planning-permission/