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julia urquhart

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Everything posted by julia urquhart

  1. Just a note on terminology - to me a 'sitting tenant' is someone with extensive rights that you cannot easily remove, ie a regulated tenancy & this would seriously reduce the value of your property. A tenant with a valid AST should perhaps be referred to as ' a tenant in situ' to avoid confusion.
  2. How are you calculating your ROI? And over what timescale? For a BTL Landlord capital growth & income are separate entities. Capital growth allows me to remortgage & buy more properties whereas income is a more immediate source of funds. I'm not sure I understand what you are offering me for the extra £3k.
  3. When I buy a property I am looking for the lowest price so I need the smallest deposit (my money) to go with the mortgage with the best rate (usually requiring 60% or 70% LTV). If I buy an overpriced property I need a bigger deposit & I will be paying a larger mortgage payment for the next 25 yrs.. Then I would do much of the renovation myself - bathroom / kitchen / painting & decorating. In most cases, with a light refurb, I can set these costs against my rent & because I am not paying for labour the overall cost is much less. Thus my overall saving compared to buying a turnk
  4. I use L&C for mortgages - they seem to have all the best deals, their process is all on line & they don't charge any fees. Best if you have anode of what you want - but very easy to use
  5. I am a landlord & a stock market investor. Although when times are good, both go up, they are not that closely correlated, so diversification gives you protection. My properties are on interest only mortgages & although the total debt is sometimes bit scary, I am in it for the long term & over the years I have watched the LTV come down as the house prices grow. Because I intend to keep my properties for another 20 years or so I don't worry too much about paying off the mortgages - I have an asset that I can sell if necessary to pay the debt - and my long term strateg
  6. Unless your property is very high end I would not be adding expensive electronics to it - once supplied, you irresponsible for the maintenance & replacement of it. I would consider a Nest 'gimmicky'. Many tenants seem to struggle with programmable thermostats, TRVs etc so my advice would be to keep the control simple. I would ensure that you present your property beautifully - neutrally painted, decent carpets / curtains / lightshades / clean & tidy & then price it just below the market rate. Don't forget to ensure you outside space is well presented too. Sometimes '
  7. As a landlord I am always looking for a property at good price that I can add value to. I would not overpay as that would directly affect my bottom line. I would suggest the market you should be looking to sell to is home owners, who will either buy into a 'lifestyle' or be prepared to pay a little over the odds for the 'right' house &/or don't have the time or knowledge to do up a house.
  8. Ask the freeholder for a price to extend the lease - better done now than 10 years down the line. Good Luck
  9. Repayment mortgage is the same as getting that low interest rate on your money - probably 2 or 3% max - and cannot be offset against tax, so in anyone's book that is a poor investment. Over the time period you are looking at your goals may change several times but if you tie up your money by repaying the mortgage you can't use it elsewhere. The interest you pay - and can offset against tax (depending on your tax rate) - will also reduce so that is less efficient. I would take interest only & save the extra cash into a stocks & shares ISA - here it can grow tax free until you
  10. At the moment I think new builds are often overpriced. Anyone using Help to Buy has to buy a new house so demand is kept high and prices are buoyant. There has also been a lot of comment in the media about the downsides of new build - leasehold / poor standards etc. You would also not know how desirable a new estate is until it has bedded in - bus routes, amenities etc all take time to settle down. I would look for an established property where the location is a known quantity. Buy something that needs a little work & you can add value to. Good luck.
  11. The other thing to consider is whether there is enough living space to accommodate the users of a 3 bed property. eg If you are renting as a family house then you might need to have room downstairs for a dining table as well as a sofa & maybe a family sized garden. Also, is Bed 2 big enough be considered a main bedroom so the 2 smaller rooms are then children rooms? If there is enough living space & a decent sized Bed 2 it is probably a good option but you don't want to end up with a house where all the bedrooms are too small - remember you will need room for storage as well as a bed.
  12. Tenant fees ban doesn't come in until 1st June so there has been no change yet.
  13. I remember when new houses used to be a bit cheaper than older houses as you were taking a bit of a risk on a new estate & finish of product etc. Now because you have to buy a new house with help-to-buy the prices are higher than older properties & often not built well. I think we are making a huge problem here & I for one am staying well away from new builds.
  14. The only way you can get at your equity is to remortgage & as you are only 2 years into a 5 year deal there will be penalties to pay. Check on your mortgage what these penalties are before going any further since this will make a big hole in any potential profit. Might be best to find a different way to fund a deposit for the next property purchase & look to remortgage at the end of your 5 yr term. Good luck
  15. Whether you get accredited or not it is definitely worthwhile ensuring that you are unto date with all the legislation involved in being a landlord - even if you use an agent, so you are definitely on the right track. I am in the East Midlands and I did the DASH online training programme for accreditation. As well as ensuring I was current with all the legislation it earned me a discount on the cost of selective licensing in Nottingham so it was a win win. Good luck on your journey
  16. I have several properties on interest only. As each one comes to an end (or rates improve) I remortgage & will do so until I get to an age where I want to start selling - I don't anticipate crawling around painting skirting boards & fixing sinks in my 70s - at which point hopefully there will be a nice chunk of capital. I keep an eye on CGT rates & market forces so that hopefully I will be able to sell at a time of my choosing to maximise my profits or maybe to downsize my portfolio to give money to the kids. I think the important think is to have some sort of a plan & no
  17. Borrowing allows you to make money on someone else's money - its called gearing. There is also the advantage of offsetting some /all of your mortgage costs against your profit. It certainly allows you to make much more capital growth on your own money because you get to keep the capital growth made on the bank's money too. You will need a plan to pay off the mortgage but I would buy 2 properties with mortgages - maybe of different sizes so you are not competing against yourself for tenants. Good luck!
  18. I use A & R Residential in Gedling (NG4). Not terribly local for NG1 but I am sure they would be happy to manage it for you. I swapped to them when my original agent sold his business & I like them because they are 3 qualified surveyors. In an industry that often has very little in qualifications this gave me some reassurance that they knew what they were talking about. Only been with them for 6 months - but so far so good. Good Luck
  19. I agree with Henry - 5yrs is the way to go. All the lenders are getting the money they lend out from the same place & they have the same information as you and I so all the factors you mention are priced in. 2 yrs comes round really quickly & having to remortgage will take time & effort as well as the sometimes eye-watering booking fee. I would take the best 5 yr option I could find. Good luck
  20. I have always avoided flats for this very reason. I don't know how much effect it will have on selling the property onwards but £300 a year is £25 per month off your net rent - do the numbers still stack up? Presumably it is also a leasehold property - which may cause you extra costs down the line. You are sensible to be prepared to cut your losses & not just blindly carry on because you have spent some money already. You need to consider carefully with your head not your heart whether this is a good investment. Generally numbers do not lie. Good luck
  21. If the attic room is not described as a bedroom it probably means it has not passed building regs. This may be because the owner didn't apply or it does not conform to minimum standards of height / width / insulation etc. It doesn't meant it is unsafe so there should be no problem renting the house but you should not pay more for the extra room. You can check on local government planning sites to see whether planning / building regs were applied for etc. Hope that helps.
  22. How much you take out depends on your attitude to risk. Remember this is your home and if it all goes wrong you still need somewhere to live!
  23. I am sure there are opportunities all over but you need more capital in the south to buy than up north where property prices remain much lower. Obviously rents are also higher in the south so yields may well be similar. Personally, I prefer to invest close to where I live so I can keep an eye on them. It all depends on your strategy I suppose.
  24. The main difference is a bank loan would not be secured on your house so if you default your house would not be repossessed whereas a remortgage is secured on your property and so a default could be very serious. Practically the main differences would be the rate you can get and the length of time you borrow the money for. Most loans are over shorter periods than mortgages so the amount you pay back each month is less so it may be more affordable although you might pay back more in the long term. It really depends what you want the money for.
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