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Everything posted by onkar

  1. Hi, there are services out there that purchase your home in cash fast. HOWEVER, don't expect to sell at the market rate. If you still decide to proceed, some of these companies offer to pay your legal bills too. In this scenario, I would want to use a solicitor that I know and trust to ensure the transaction is done correctly.
  2. Personally, I would avoid purchasing Studio apartments because studio flats can often be difficult to get a mortgage on. This will obviously impact your exit strategy in terms of the resale in future and limit the sale to mainly cash investors. I would probably purchase properties by getting mortgage. This way you maximise the growth by leveraging your money. And like you say, benefit from the capital appreciation.
  3. I see that a lot of landlords certainly are considering this! Yes, the Early Repayment Charge will kick in if you sell during the mortgage fixed period.
  4. Even with your points, you still need to look at the bigger picture: Population is increasing, people living longer and available housing is decreasing.... city centre's aren't going to become ghost towns anytime soon
  5. Think it will be difficult for anyone here to answer that without seeing the legal pack atleast. It's usually advised that you get a solicitor to review a legal pack, I think this is recommended in this case. Are there any contact details for the solicitors on the other side? You can also ask them to clarify this.
  6. Hey, what is your reasoning for taking out a 2 year fix first then a 5 year fix? Yes, interest rates are low, if they change, they may go up in future and may be higher when your 2 year fix comes to an end. So personally, I'd go with a year 5 fix if you have no plans to sell or refinance any time soon!
  7. If the numbers stack up and you're happy with the deal and the return, then sounds like a good opportunity!
  8. Definitely lots of unanswered questions! If it truly is a 'Stamp Duty Holiday' and we compare that to the principles of a 'Mortgage Holiday', then this would imply that the Stamp Duty will eventually need to be paid. (If this is the case, then I would continue to pay the Stamp Duty upon Completion). However, most articles I am reading online right now do not mention the 'holiday' concept!
  9. Hi Jake, One of the mistakes I've made in the past is deciding on a solicitor first, then finding out that the solicitor is not on a particular lender's panel of solicitors once a mortgage application was submitted. So what I would do if I was you is find your property, talk with a broker to find what lender you would apply with, then in parallel find a solicitor who is on this lender's panel. I am now in a position where I have worked with a hand full of solicitors and will pick one depending on whichever lender I deal with. The solicitor does not have to be local, but I w
  10. Hi, Don't forget, you cannot offset the interest on your mortgages as an expense if running in your personal name. This will impact profits. You can offset the interest as an expense in your ltd company, so the extra costs associated with a Ltd company mortgage doesn't seem so bad in the bigger picture!
  11. Last year I had an application rejected as I was remortgaging a property. It's because the property I was remorgaging used to be classed as 'Shared-ownership' and turned out Paragon does not allow for this in their criteria. I am currently going through another application with them for a new property, still early days but I have had to fill out a Business Plan plus a lot of other documents for them which has taken a while! So let's see how it goes. What happened with yours?
  12. Hi Andy, I don't think it will be as easy as you think. You own the 2 properties in your personal name, so income is marked against your personal income. You can only manage the income via a limited company IF the properties are owned by the limited company. This leads to the question of transferring the properties to a limited company? This can be quite a complex and costly route, as the transfer will be classed as a sale/buy transaction and you will be liable for stamp duty and other purchase costs again! If I was in your situation, I would see myself having 2 option
  13. Hi Steve, Welcome! If I was you, I would start by re-mortgaging 1 of your properties first, pull out the money and invest that money to buy properties using a mortgage and a deposit of 25% on each. Then as you gain confidence, you can look at remortgaging the second property, invest, remortgage the third, invest. This will slowly build your portfolio and allow you to mitigate risks as you encounter them, rather than going with the big bang approach of pulling out equity from all at once!
  14. Based on what you've described, if I was in your position, I would invest through a company from the get go. Especially if you have plans to purchase more in the future. If you get a new job in the future and jump to a higher tax bracket, then this will force you to pay the higher rate on the property rental profits too. Whereas if the property income is within a company, then you will only pay the flat corporation tax. Also you cannot offset the interest you pay on your mortgage as an expenses if the property is owned in your personal name. However, the interest can be offset as an
  15. I don't know the answer to your specific questions as I do not have experience in it, but if I was you, I would give the self-build path a try (if you are in a financial position to do so). This is a long term ambition of mine. You have potential big returns as you don't have to buy the land as an upfront cost!!
  16. I guess this falls into the 'Lease option agreement' or LOA. Something I haven't been involved with... and is something I would stay clear of myself... seems like a headache and a potential disaster to me but that story is for a different day. I'm surprised that a seller is actually offering this. Usually, the buyer would approach a seller with this strategy, the buyer would offer to buy the property in X years at a Y price that is usually higher than the current market price. This is the incentive for the seller (securing a higher price). Buyer could then run the property, get the cash f
  17. Hi! Once you find a property you like, you make an offer. If the offer is accepted via an estate agent, you will need to provide a decision in principle*, proof of funds and documentation to support your ID. Once this is accepted, the house will be taken off the market and you will start a mortgage application to start the purchase process for that particular property. *You can apply for a decision in principle through a specific lender (usually through a broker). This basically proves that you are able to get a mortgage for a specific amount for a particular property. You can either
  18. Definitely recommend doing it via Ltd company. The amount of tax you will save with this route makes this the main reason.
  19. Hi Sam, I'm not part of any chats at all for any areas.
  20. Hi Jon, Something I would be interested in joining. I have recently invested in Nottingham, so could be a good reason to join!
  21. Dropped you a follow. Mine's kronicle_investments
  22. No, cash because it helped me get a discount. Will remortgage in 6 months
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