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Stuart Phillips

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About Stuart Phillips

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  1. That wont be an issue. Many limited company lenders are fine with either no minimum income or with rental income, however the rental income is only used if you have 2 years tax returns to verify it.
  2. It will include 2nd homes and BTL's but the 3% levy will remain in place
  3. Its been confirmed that the stamp duty holiday DOES apply to 2nd homes and BTL, but the 3% levy remains.
  4. Yeah, its clear now that any application where the depsot is being funded by a bounceback loan wont be accepted. You would need to take the money based on revenue anyway, so most new property ompanies are not going to have a useful revenue anyway, and deposits from other limited companies, whilst technically feasable with a small handfull of lenders, will attract more scrutiny to look for those loans etc. Indeed even payment holidays are being factored into decisions going forward with some lenders which is a concern.
  5. It makes it very difficult for a lender to assess if you have commercial in your portfolio as they are simply not setup to quantiy the risks like they do residental. I would have kept these under a seperate company. Are you remortgaging or buying a new property? If its new, maybe start a new company, there are a few lenders who ignore anything outside the company for portfolio purposes, although they are not the cheapest. Have you spoken to an accountant about restructuring, or moving the commercial out into a new company? I would start there and consider any solutions posed here against the tax and legal costs of changing things.
  6. Consent to let is permissable as a short term solution, and every one of the 50+ lenders will have their own criteria, so its impossible to say. However anecdotally, i hear very few stories of Consent to Let being refused, so its not something i would worry about too much. You can always just call the client line and say you are thinking about it and want to see whats feasable. You can ask the agent if theres likely any issue with your plan, they wont be the decision maker but they will know whats definitely not OK at least.
  7. Thats impossible to answer. It all depends on you and the property. The best deal differs based on whether you are financing a house vs a flat for instance, as well as a dozen other criteria, including the day of the week, the best deals change at least weekly. The best you would get from a forum os people telling you random deals they got that may or may not apply to you. If you have a specific property and values, just go straight to a broker and get quotes.
  8. Portfolio mortgages are not a product, those kind of products havent really existed since TMW arrived as a new lender a decade ago. Portfolio BTL mortgages are where you have 4 or more, and the whole portfolio is taken into account when assessing affordability rather than just the subject property. You usually have to supply a portfolio spreadsheet, business plan and A&L statement and the underwriters will look at how well the overall portfolio performs. Its a little alarming that your broker didnt know this, its been part of BTL lending for a year or two now.
  9. Yeah, What Rob and Rob describe is basically bridge to let. More info here, although this post is a bit old, the concept is the same. The advantage of bridge to let is that you can: Ensure the final value meets expectations before drawing down the bridge Reduce the time on the bridge to 1 or 2 months depending on work schedule and avoid a full new mortgage application The downsides are that the process isnt as quick as some bridging options, so buying at auction etc wouldnt be recommended. It does drastically reduce the risk of this kind of approach though.
  10. Yes. The SPV pays the mortgage premium. You can loan the company money, and it owes you that back so its not taxed when you do.
  11. A very simple answer: No. That money wont be counted as income, even if you said it was for some work you did for him and invoiced, you would still need 2 years accounts showing it declared to HMRC etc. Otherwise income needs to be earned PAYE, or be benefits of some sort. Even if you did work, and got cash in hand, most lenders wont accept that unless you pay every penny straight into the bank the day you recieve it. Look at "family assistance mortgage" where he can use his wealth or property as collateral to give you a smaller mortgage, better interest etc, without actually handing over cash: https://www.barclays.co.uk/mortgages/family-springboard-mortgage/ https://www.halifax.co.uk/mortgages/family-boost/ https://familybuildingsociety.co.uk/Mortgages/FamilyMortgage/FM_security-account_how-it-works.aspx There are lots of other schemes, these are just a couple.
  12. Treat carefully here. What you have is an indexed valuation on their system, its basically a Zoopla estimate consisting of whatever data they have (Halifax/Nationwide property indexes, Land registry data etc.) Of course the lender confirms its right, the computer says that number, that doesent mean the house is worth that because the only way to truly establish value is to sell, have two independant parties agree on a price and complete. Anything else is just a guess. For a property to have gone from £135k as a physical valuation to £183k on a desktop indexed val means the latter is likely way out. Perhaps the next street has larger gardens, or bigger properties, perhaps someone sold a property for a high value in the street, or there have been so few sales that the estimates are based on a small number of transactions. So yes you can contact the bank in 6 months, use that high value and extract some of that equity. However if you want to sell in future what if someone is actually only prepared to pay £135k for it? What if you want to remortgage and its valued (physically) at £135k? You have negative equity and cant do a thing. You will have to stay put, wait for prices to rise (not decrease by 10% as most speculate they will nexxt year) and take whatever deal the current lender offers you because you cant go elsewhere. I only saying this because you indicate that £183k seems too high. If you think that, be careful, you may trap yourself.
  13. Well its easy enough to get costs for splitting the title, accountacy fees, legals etc and compare that to the extra finance cost over the term and make a decision in a couple of years. I dont know what rates will look like next month, let alone 2 years...
  14. No, this doesent come under HMO rules bacause bathrooms and kitchens are not shared, they will be self contained flats. You can leave this as two units under one freehold, but it will limit your mortgage options, and will probably have a negative impact on the overall value, ie you might get more selling the flats individually than you would as a whole, and still retain the freehold which would have a modest value. If you choose to sell you can explore slitting the leases etc later. If you dont need a mortgage then you dont need to worry as long as planning and building regs are all in order.
  15. On a standard personal BTL i usually say 4 weeks but everything is taking longer these days. Call it 6 weeks.