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adrian b

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  1. Hi - you need to add stamp duty £1.5k and any refurbishment costs to your capital investment - virtually all properties will need something spent on them to get ready for letting, even if its just basic decorating & tidying. There may also be broker/finance fees unless you get your mortgage direct. The 19% yield is before maintenance & voids (I budget at 1 month/year rent for voids and 10% for maintenance), another factor is that the lower down you go in the housing market the more tennant payment issues and potential damage you will get. I don't have experience of Liverpool but the cheaper areas near me only attract social housing tennents and arrears/non payment significantly impact actual returns (as well as the hassle) so this needs factored in Insurance and agent fees look a bit high - I rarely pay over £200 year for insurance and my highest agent fee is 12% and lowest 8% in the North West good luck with your investment Adrian
  2. Hi, I'm purchasing a property through a Ltd company using Molo finance - its at the point of exchange and completion and, rather than incur unnecessary costs, I had delayed until there was visibility of when the covid restriction will be lifted. I just received the bombshell below which pushes it back to at least July even though the restrictions could be lifted before then! They are dressing it up by saying that the Government has suspended the property market but it seems more to do with Molo's appetite for risk & internal operational issues than preventing Covid (the property is empty). Anyone had anything similar from other lenders? If all follow this lead the market will be dead for the rest of 2020! Adrian The sudden and very significant impact of the coronavirus is being felt right across the UK, including here at Molo. As you may be aware, the government has taken the unprecedented step of effectively suspending the UK’s property market in an effort to contain the coronavirus outbreak. Buyers and sellers have been strongly advised to delay their transactions until after the lockdown is lifted and lenders have been asked to put mortgage offers on hold. In the light of this guidance, the impact of the virus more generally on Molo’s operations and the considerable uncertainties we now all face, we have taken the difficult decision to stop issuing new offers and to put all of our existing mortgage offers on hold for the next three months. We know that the coming days and weeks will be filled with uncertainty and want to reassure you that we are not withdrawing your mortgage offer. We are extending its validity for a three-month period and asking that the completion date be moved till after then, to support not only us, but also the estate agents, letting agents, valuers, conveyancers and everyone involved in the property market who have been severely impacted. We trust this extension will also help you by giving you the time you need to find the right tenant for your property and to allow them to safely move in. We hope that in three months we will have started coming out of the current lockdown and the market will be returning to some normality. At present it is not known for how long the lockdown will continue but we will keep this under review and will offer whatever additional flexibility may be needed. I hope you, your family and friends remain safe and well. As an agile company supported by great technology, we will be able to put the wheels back in motion very quickly once the current issues in the property market are addressed and we look forward to continuing to support you.
  3. Hi all, Apologies for the long email but i'm at my whits end.... I have a leasehold flat in a block of 16 in a converted Victorian building. A Ltd company has been set up to deliver the obligations of the lease (collect service charges, insure, do repairs/mtnce etc) it doesn't own the freehold but each leasehold flat has 1 share in the Ltd company so an equal share (in theory) on how the money is spent. The ltd company has appointed a management company for the day to day running of the block and they are paid out of the service charge. Major spend is authorised by the directors of the Ltd company (i.e. other flat owners) who are elected once a year to act as directors. The issue I have is that the block is predominately owner occupied and 'mature', they are anti rental and want to run things as a bit of 'an old folks club'. I have had a number of 'complaints' over the years over trivial matters. The issue is that the 'club' stick together and elect the directors of the Ltd company and hence dictate repairs. My flat has damp issues caused by poor mtnce (slipped tiles in roof on my flat and pointing/missing brinks) it is not being maintained in accordance with the lease. The management company have quotes for the repairs but the directors refuse to authorise it so my flat is deteriorating and tenants inconvenienced. Has anyone ever has a similar experience? I'm at the point where I need to pursue legal channels but if I take action against the Ltd company I would also impact myself as liable for 1/16th of any costs they incur (plus my own costs) Can I sue directors for neglect of duty? Can I go direct to the freeholder even though the leaseholders are managing their own block? Can I undertake the repairs myself and deduct from future service charges? Its a real mess - not really an option to sell in my area (market was dead even before covid hit) so I need to find a way to force them to maintain in accordance with the lease Any thought/help much appreciated A
  4. Hi all, Apologies for the long email but i'm at my whits end.... I have a leasehold flat in a block of 16 in a converted Victorian building. A Ltd company has been set up to deliver the obligations of the lease (collect service charges, insure, do repairs/mtnce etc) it doesn't own the freehold but each leasehold flat has 1 share in the Ltd company so an equal share (in theory) on how the money is spent. The ltd company has appointed a management company for the day to day running of the block and they are paid out of the service charge. Major spend is authorised by the directors of the Ltd company (i.e. other flat owners) who are elected once a year to act as directors. The issue I have is that the block is predominately owner occupied and 'mature', they are anti rental and want to run things as a bit of 'an old folks club'. I have had a number of 'complaints' over the years over trivial matters. The issue is that the 'club' stick together and elect the directors of the Ltd company and hence dictate repairs. My flat has damp issues caused by poor mtnce (slipped tiles in roof on my flat and pointing/missing brinks) it is not being maintained in accordance with the lease. The management company have quotes for the repairs but the directors refuse to authorise it so my flat is deteriorating and tenants inconvenienced. Has anyone ever has a similar experience? I'm at the point where I need to pursue legal channels but if I take action against the Ltd company I would also impact myself as liable for 1/16th of any costs they incur (plus my own costs) Can I sue directors for neglect of duty? Can I go direct to the freeholder even though the leaseholders are managing their own block? Can I undertake the repairs myself and deduct from future service charges? Its a real mess - not really an option to sell in my area (market was dead even before covid hit) so I need to find a way to force them to maintain in accordance with the lease Any thought/help much appreciated A
  5. Hi all, Apologies for the long email but i'm at my whits end.... I have a leasehold flat in a block of 16 in a converted Victorian building. A Ltd company has been set up to deliver the obligations of the lease (collect service charges, insure, do repairs/mtnce etc) it doesn't own the freehold but each leasehold flat has 1 share in the Ltd company so an equal share (in theory) on how the money is spent. The ltd company has appointed a management company for the day to day running of the block and they are paid out of the service charge. Major spend is authorised by the directors of the Ltd company (i.e. other flat owners) who are elected once a year to act as directors. The issue I have is that the block is predominately owner occupied and 'mature', they are anti rental and want to run things as a bit of 'an old folks club'. I have had a number of 'complaints' over the years over trivial matters. The issue is that the 'club' stick together and elect the directors of the Ltd company and hence dictate repairs. My flat has damp issues caused by poor mtnce (slipped tiles in roof on my flat and pointing/missing brinks) it is not being maintained in accordance with the lease. The management company have quotes for the repairs but the directors refuse to authorise it so my flat is deteriorating and tenants inconvenienced. Has anyone ever has a similar experience? I'm at the point where I need to pursue legal channels but if I take action against the Ltd company I would also impact myself as liable for 1/16th of any costs they incur (plus my own costs) Can I sue directors for neglect of duty? Can I go direct to the freeholder even though the leaseholders are managing their own block? Can I undertake the repairs myself and deduct from future service charges? Its a real mess - not really an option to sell in my area (market was dead even before covid hit) so I need to find a way to force them to maintain in accordance with the lease Any thought/help much appreciated A
  6. Hi, I'm about to start the process of taking out a mortgage on a property I bought for cash (its in a limited company) and also looking to re-mortgage a couple of other buy to lets (held on own name). Previously I've sourced mortgages myself but now (due to it being within a company) most of the best deals are via brokers. Any recommendation for whole of the market property mortgage brokers? Also what are the typical fees charged by a broker (I have spoken to John Charcol and they charge £1495 in fees for the LTD company mortgage on top of the lender product fees which seems very high) - any advice/rules of thumb about typical broker fees? Thanks Adrian
  7. Hi - I bought a property at auction last week which will complete in 20 days. Plan is to do a refurb then put into a rental portfolio. I understand there is a general rule that if I complete the purchase in cash I will struggle to mortgage the property within 6 months of purchase 'the 6 month rule'. Whilst I have the cash to complete I want to get the property onto a BTL mortgage asap so cash funds aren't tied up for 6 months has anyone got any experience of this? Is it better to use bridging rather that cash to convert to mortgage? Do you start the mortgage application now such that it will go through a few weeks after purchase completes? Do lender allow this? Any other ways round the 6 month rule? Any advice appreciated Thanks Adrian
  8. Hi There, just set up a limited company for future property development/renovations and a separate one for my rental business. Does anyone have any experience of the 'Construction Industry Scheme'? Does this apply to limited companies employing companies to do renovation/mtnce work? Or is this just main contractors on major construction jobs? https://www.gov.uk/what-you-must-do-as-a-cis-contractor/who-is-covered-by-cis Just having a mild panic that I will need to become an expert in tax collection not to mention making it even harder to get trades interested in taking a job on! Any help appreciated Thanks Adrian
  9. Hi There, just set up a limited company for future property development/renovations and a separate one for my rental business. Does anyone have any experience of the 'Construction Industry Scheme'? Does this apply to limited companies employing companies to do renovation/mtnce work? Or is this just main contractors on major construction jobs? https://www.gov.uk/what-you-must-do-as-a-cis-contractor/who-is-covered-by-cis Just having a mild panic that I will need to become an expert in tax collection not to mention making it even harder to get trades interested in taking a job on! Any help appreciated Thanks Adrian
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