Silvina Cives

Hello, I'm in the process of buying a porpoise built flat that is on the first floor of a house . It have found out that is Underlease rather than a lease ( ie 95 years long) and I've never heard of Underlease so I was wondering if anyone could advise me on any disadvantages of being an Underlease holder . The lease holder is a big property trust and I don't know yet who the free holder is. I was hoping to convert the loft in this property but I'm anticipating that having to deal with two parties to get permission could be an issue. I would be very Grateful if anyone would throw some light into what difference this could make Thanks a million

Hi Gareth, The property value is less than £125,000 so you don't have to pay stamp duty. Also looking at the costs , the agent fees seem to be rather high at more than the standard 10 % I don't know how the imminent raise of interest rates will allow you to do this but I wonder if you can search for a better fixed rate if you speak to a good mortgage advisor you might be able find a lower fixed rate and that would change the game completely Where is the house located if I may ask? Silvina

Ed, thank you for a fantastic contribution with such a comprehensive report and the spreadsheet you created - genius work. It is amazing how a slight change on the mortgage deal changes the entire game. I wonder how other people's properties survive the crashes. It did make me realize that it is important to have money in the bank to survive a recession although I would have been forced to sell in the late seventies.

Hello Noel I'm a newbie too so you might find better advise but I had the same dilemma a couple of months ago . I live in London so at the beginning I thought it would make more sense investing near home. However , after looking at numbers and trying to fit my strategy with the property cycle I decided to buy in the East Midlands where prices haven't gone up much since the last crisis and hand the property to a good agent . I do believe ( or hope ? ) there will be a correction in London property prices in the next two years so , if I save enough for a deposit ,I may change my strategy to buy in London then and grab the opportunity of having less competition. Personally I would stay away from London until that correction in the market takes place but then at the same time experienced investors here would argue that people will always want to live in London and prices will not stall or go down I couldn't afford London with a 30 K despot so went for an area where I bet on capital growth in years to come but also with good fundamentals to give me a decent rent . Good luck with your decision Silvina

Dear Lucie, Simon and Scott, Thanks for your reply. I spoke to the broker and he gave me a good explanation as why he doesn't charge a fee he sounds honest . Having said that , I'll look out for any attempt from his side to sell me insurance . may I pick you brains again and ask you a different question; I will be using a sourcing company but the broker said I should be cautious as in how they charge their fees because some of the products might not be available should I pay a fee for the sourcing. Am I correct in thinking that as long as I don't pay a fee until completion I can have access to most of the products anyone not using a sourcing company would access to? Lastly , he also advised me to check that if I buy a new build property it must have had occupants for at least two years? otherwise , again the products available may be very limited. Do you advise the same to your clients?

Hi, I found online ( not through recommendartion ) a mortgage broker who seems to tick some of the right boxes, he deals mostly with BTL mortgages, he is a whole of market sourcer and he is a property investor himself which to me is a plus as he would be able to uderestand better where I'm going. The only thing that concerns me is that he doesn't charge his clients any fees ( which anyone would say that it shouldn't be a concern when hardly anything is free these days !) BUT my worry is would he have my best interest at heart if they get their fees purely on the lender's commission? Has anyone had this dilema before would you advise me that I should look for someone else? WOuld anyone have a personal recommendation? I live in London but he doesn't necessarily have to be a neighbour if he has done a great job for you. Thanks in advance for any replies Silvina

Hi Stephen That's a very good question I'm quite inexperienced so I can't really help but I wonder if you found the answer? .I'll be asking the same thing if my first buy to let is a property that needs minor work and I want to recycle my cash within the next following months . Silvina

Hi Stephen That's a very good question I'm quite inexperienced so I can't really help but I wonder if you found the answer? .I'll be asking the same thing if my first buy to let is a property that needs minor work and I want to recycle my cash within the next following months . Silvina

Thanks David I will contemplate Salford in my research Best, Silvina

I'm thinking of investing in a one or two bedroom flat in Manchester as a buy to let first investment . I'm based in London so I have no idea whether it would be a good move to go near the city centre or other areas. Would anyone with experience in that market would suggest a couple of areas where you think I could benefit from rental yields and capital growth? Many thanks ! Silvina

I'm looking into buying a 1 or 2 bedroom flat in Manchester . I'm based in London and to be quite honest I can just about place the city in a map . Would anyone with experience in investing in Manchester be so kind and throw me some areas that you think may provide good rental yields or potential for capital growth ? It would be my first buy to let and I would target young professionals or a family. Thanks a million , Silvina

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