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Jack Wathen

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  1. Hi Hubbers, Has anyone else come across this ground rents over £250pa AST issue? I have had several city centre apartment investments in Birmingham rejected by our solicitors recently because the ground rents were either above £250, or there were provisions in the leases meaning future increases (often doubling or RPI linked) could potentially lead to them rising over £250. The explanation is: "Leases which have ground rent above £1000 in London or £250 outside of London are currently classed as an “assured tenancy” under the Housing Act 1988. This means that the Landlord can seek to end the lease by an order of the court, and attempt to evict the Tenant if there is ground rent more than 3 months in arrears." So in theory, if the ground rent went unpaid for any reason, even if it was just a mistake, the property could be taken back by the freeholder! This only applies if the property is owner-occupied, but even if the property is bought as an investment, this could obviously have a significant impact on the future resale value? If this is indeed accurate then no leasehold property outside of London with a ground rent of over £250 is fit for purchase, which is insane because almost all of them have GR higher than this? Any clarification would be greatly appreciated.... Articles relating to this issue: https://www.mishcon.com/news/publications/real_insights_-_property_update_05_2017/assured_tenancy_traps__the_unexpected_ast_05_2017 https://www.attwells.com/site/news-and-events/leases_with_high_ground_rent http://www.sharratts-london.co.uk/news/95-escalating-ground-rent-what-will-the-future-hold
  2. Hi Hubbers, Has anyone had any experience with joint Ltd Company BTL mortgages? The situation is that I want to do more renovations to rent, 50/50, with a colleague who also uses an SPV. We would be buying the properties cash and then financing them once value had been added. The aim would be to hold the properties 50/50 going forward. However, coming up against it with joint limited company BTL mortgages, has anyone got any experience with this? Many thanks, Jack
  3. Hello Everyone, I was wondering if anyone who regularly undertakes buy to sell property flips knows what insurances are required? If one was to hypothetically purchase a house through a limited company for the sole purpose of refurbishment and resale, is it necessary to take out specific site insurance? I gather basic home insurance isn't suitable and often cover is void during periods of refurbishment? I also understand that your contractors insurance wont cover you either? Any advise as to what cover is required and any recommended providers would be excellent! Many thanks in advance, Jack
  4. Hey Scott Great, thanks for that! If i think of anything else ill post it straight up on here!
  5. Hi Scott Thank a lot for that really useful to hear. That mirrors what Susannah Cole talked about in the property flipping course on the Property Hub too! How did you decide on the stages of the work? I guess it was a mixture of common sense and the requirements of the builder for finance? Thanks, JW
  6. Thanks Rob Thats a great resource. Think im a bit overcautious after having had a less than ideal situation with my own home, with a builder who had issues cooperating with the building regs guys and also took over a year to chase his electrician for certificates. Thanks for the help, JW
  7. Hi Everyone The aim of this post is to find out more about legal contracts for building work. I understand the principle of contractually binding a builder to a time frame, overall cost and quality of workmanship, but practically how should this be approached? Are bonuses and penalties worth while tools? Is the general opinion that the cost of forming these legal agreements and the time involved makes them unviable? Also at what stage do you mention to a potential future contractor that you want this security without scaring them off, appearing to be jumping the gun or offending them? Should you be asking every tradesman you engage to be signing paperwork? Also how enforceable would a contract be in the event of a breach? Any advice connected to this topic would be greatly appreciated, apologies for the thousand questions Many thanks, J
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