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Marc Barnes

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  1. Thanks both, it is an interesting one for me. On Paper everything stacks up in terms of ROI etc - but its that slight doubt that i cant get some/most of my money back out in a short period of time (appreciate that there multiple exit strategies as you say), which is key to allowing me to continue to invest. My Valuation of £149K was taken from Hometrack, so again, i know that is not what a valuer will work with, but it gives me a reasonable indication....
  2. Hey, just looking for some advice/guidance....I have the opportunity to purchase a property at c. £110K cash (which I can do), its on the market for £150K, desktop valuation shows £149K, so definitely BMV. It is a 2yr old build surrounded by older properties, so at the top of the list in terms of value when compared to other local properties. There is no work/refurb needed, just a motivated seller - But, I dont want to leave all my cash tied up in the deal and therefore would look to mortgage the property at around the 6 month mark. My concerns:- How will I get the valuation at c. £150k if I brought the property for 6 months earlier at £110k. I cant evidence any work that I have done or value that i have added. The property is in a postcode that has had 7 sales in 12 years, so there no real comparable (the only evidence will be the £110k I paid 6 months earlier) At a valuation of £150K it is at the top of the list in terms of values of the property in that area Would appreciate any advice/thoughts on what to do with something like this.....??
  3. Hi Alex, this subject interests me....what else have you discovered with this LLP vx LTD. I spoke with a Tax Advisor (BTL property specialist) and he introduced me to this idea of LLP rather than LTD - which i found very interesting and hadn't thought about before. I was exploring the idea of moving the x 6 properties i currently have in mine and my brothers name, into a Ltd Company for tax reasons (like most are at the minute) - but i hadn't considered the LLP route. Be really interested to know where you got to with this subject and your thoughts on the Pro's and Cons?
  4. Hi Conrad, Very useful website - thanks. The reason for looking at extending now, was I 'thought' it would be cheaper to do it now, than say at sub 90yrs? I plan on keeping the property long term, so what would be your view as to the most cost effective point in time (# of yrs left) to extend the lease? Many Thanks Marc
  5. Hi, need some advice. I own a 2 bedroom flat, with 94 years remaining on the lease. I have tentatively enquired to the freeholder to extend the lease and have been provided the attached document. I have never done this before, but taking a quick look through the attached, it suggests that i have to pay/commit an amount of money/time/effort upfront to get to a position of knowing how much it will actually cost me to extend the lease? .....and even then, it appears that i tell them what i think it should cost (based on a valuation report) and then the freeholder will decide if that sum is fair and whether or not to accept or negotiate my proposal? *Is that about the sum of it? *Does anyone have any experience of this? *Is their a calculation i can do beforehand to give me a rough idea of what it will cost? *Should i be looking to extend with 94 years left? *It states the lease extension would be for 90 years plus the unexpired term of the current lease - so would that make it a a 184 year lease (94 yrs unexpired plus the 90) if i do extend it? Many Thanks Lease Extension booklet.docx
  6. Thanks Lilla, just as i thought, my concerns is, that the conveyancers i have spoken to so far (albeit only two) have very little knowledge or understanding, in fact less than me! Doesnt make for a good start......
  7. Hi, does anyone have any experience of "Multiple Dwelling relief (FA2003/Schedule 6B)"? I'm assessing whether or not to move the 6 BTL properties that myself and my brother jointly own in personal names into a Ltd Company. One of the major factors in my decision is the amount of SDLT i will need to pay by moving these 6. I have come across the Multiple Dwelling relief (FA2003/Schedule 6B) which states:- "Where 6 or more dwellings are purchased in a single transaction the purchaser can choose whether to apply the non-residential rates of SDLT.” The Ltd Company i set up would in effect be purchasing these 6 properties and if i did this in one or a 'linked' transaction, could i take advantage of this relief? If this was an option to me i would reduce my SDLT liability significantly - my questions is, has anyone done this? had any experience in this? or could offer me any words of wisdom on the subject??
  8. Thanks Debbie, so as an example, if i have sell a property and my gain is £22000 and i hold this in my own name, i will get my CGT allowance of £12,000 and pay 28% on the remaining £10,000 i.e. £2,800. If i hold this property in a Ltd Company, and my gain is £22,000 - i would pay corporation Tax (soon to be 17%) on the £28,000 i.e. £3,740.00 Purely from a 'sale' and 'tax' perspective have i missed anything?
  9. Hi, quick tax question for the people far more knowledgeable than me! i understand that an individual when selling a BTL property will pay capital gains tax - on the gain (excluding my allowance). i am a higher rate tax payer, so i understand this would be at 28%. if i hold a property within a ltd company and then sell it, i pay corporation tax - can someone tell me what the rates (%) are and is there such a thing as an allowance, like there is with CGT?? Many Thanks Marc
  10. Hi, looking for some advice as i cant quite seem to get my head round the best thing to do, so here is my quandary:- I own 6 x BTL property, all with personal BTL mortgages on, all in mine and my brothers name. My accountant is telling me that i should start to move these properties across to a Ltd company. At a high level this makes perfect sense as we limit our tax liability as we are both higher rate tax payers, but here is my scenario and to use one of the 6 properties as an example:- NB: all figures have been rounded for ease. Current property value is c. £160K, mortgage balance is £77K, current interest only mortgage payments are £149 pcm, service charge is £75 pcm, incoming rent is £795 - profit is £6.8K per annum Assuming no other expense/income, me and my brother will pay c.40% tax on the full £6.8K next year = £2.7K, so we retain £4.1K as cash in the bank If i sell/transfer to the Ltd company at £160K (to release the equity) at 75% LTV this would release c £44K for me to reinvest which is great, but..... I would then be hit with a £8K SDLT, so my £44K becomes £36K, my mortgage payment would go up to c £325 pcm (working on 3.19% interest only Ltd company BTL) - this would increase my outgoings on the property by £2,112 per annum, so my annual profits decrease from £6.8K to £4,688 per annum. I then pay 20% corporation tax on the £4.68K, leaves me with £3.7K. So, in my head, by moving to a ltd company, i will be c. £400 worse off (the difference between £4.1K and £3.7K above) every year and would have had to pay £8K SDLT, plus conveyancing, solicitors and mortgage brokers etc - this doesn't make good financial sense does it? Although, i also accept i would have £36K to reinvest..... but all that being said, why would i not remortgage in our personal names again at £160K, release the £44K, increase my mortgage from £77K to £120K, but with the mortgage rates on offer right now, actually not increase my current monthly mortgage payment. Surely this is the way to go....? What am i missing....? Would really appreciate some thoughts, friendly advice from the guys on the forum. Many Thanks MB
  11. Hi, would appreciate anyone's views on giving out a 4 month AST and how that stands legally? I am in a position whereby i may need to offer my BTL property for rent on a 4 month agreement, but im very conscious that the minimum has always been 6 (as far as i know), so does a lesser period i.e. 4 months change the legalities of the agreement in anyway? Be great to get peoples thoughts as to the pro's and cons on such a short AST? Many Thanks
  12. Hi, some quick advice/recommendation. I always like to use 'comparison' websites, for pretty much anything that i want a quote for i.e. car insurance, mortgage rates etc - it gives me a good starting point. The one thing i cant seem to find is a quote comparison site specifically for the conveyancing of a BTL purchase under a Ltd Company?? is this because the charges/cost for conveyancing is no different whether it is in a personal name or a ltd company? im assuming there will be slightly more legal work required, but surely not that much? Should i only ever choose from the lenders approved list of conveyancer's? is there a reason that people would ever choose someone that isn't on the 'list'? Would appreciate peoples view? Many Thanks
  13. Hi, being relatively new to this, i am about to advertise my BTL for rent and what i am finding very difficult is working out what/who to use for 'tenant referencing' service. There are so many companies out there that offer this service, all at a different cost, with different elements and with also what appears to be different outputs in terms of what you get for your money - im just confused and would love to hear if anyone has any recommendations of companies that they have used, are tried and tested and deliver a great tenant referencing service! i just want to be sure i choose the right tenant for my property!! Appreciate your thoughts.......
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