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jamesbo

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  1. Morning all, unfortunately I am not the 21 year old in question but a friends son has asked me about this as he wants to get into BTL. He lives at home and works full time PAYE on around £19k a year basic plus commission (he is an estate agent). He is 19 years old and will obviously be a first time landlord. Looking online it looks like most lenders require you to be over 21. Does anyone have experience with people being able to get mortgages being under this age? What generally is the minimum income requirement, is it £20,000? I suspect he may really struggle to get funding but would appreciate any advice. thanks J
  2. David, thank you for your response. I have emailed you as would like some proper advice on this. Regards, James
  3. It's probably obvious but I should also add this will be an investment property and Ltd co is SPV. J
  4. Hi all, Before I start I must confess I am actually a Chartered Accountant but this type of specialist tax isn't something I have ever had to deal with!! I am about to purchase a house under 1 freehold title that is split into 3 separate flats. I will buy these as an individual (so I am freeholder) and then subsequently assign 3 separate titles and 3 leases to my company (so all value obviously sits within the leaseholds). Purchasing for £400k. I hadn't considered any type of tax implications on assigning the leases as was planning on doing at cost. The only tax I have considered is the initial SDLT on purchase. My solicitor has advised whether there will be any lease premium and to seek advice for any other tax implications. I am hoping there isn't anything!! any advice would be very much appreciated. Regards J
  5. Hi, this might be a very daft question and I have asked my broker but he is away for 2 weeks and need to know urgently.....Can you get BTL mortgage on a property you are purchasing vacant? I'm only interested in general mainstream lenders not bespoke one's who will do it for a big premium. Thanks in advance James
  6. Hi all, I'm hoping someone can help with a predicament, I am happy to pay someone to represent me on this so not looking for freebie!! I paid £5,500 sourcing fee to a company for a property with an agreement that it could go on account if the property wasn't what was advertised (i.e. advertised market value was higher than actual given by surveyor). In this particular case it was a house that had been split into 2 separate flats but still held under 1 title. This wasn't specified in the marketing. This subsequently meant we couldn't get a mortgage because lenders just didn't like 1 title and 2 flats so had to pull out of the deal. To cut a long story short I argued with the sourcing company that their advertising was misleading and I wanted my money back if they couldn't find a suitable alternative after two months. They never agreed to this just said it will sit in Escrow for the foreseeable until we find something we like. I really do not want to deal with these people again and just want my money back. I have pleaded with them and even offered as last resort to leave 50% on account and for them to return 50% to which they declined. I want to know where I stand legally here. I know you will need to see the small print from T&Cs but I just can't see how legally they have a right to keep this money? If anyone reading this is interested in picking this up please get in touch as I want to try and put it to bed and move on! Thanks James
  7. Hi Taxantics, thanks for taking the time to respond. 1) As far as I know mum/dad haven't lived in the property but if they did I presume they need to show evidence of this (i.e. council tax bill with their name on it?). I believe unofficially they brought it for their son, it was certainly the intention to buy it and him live in it but not sure if any documentation would be required to prove this? If CGT does apply my understanding is you get last 18 months relief regardless which will help soften the blow! 2) ok thanks I hadn't realised that. 3 & 4) thanks thanks again James
  8. Hi all, this feels like it needs a bit of legal, accountancy and mortgage advice all in one!! I will try and keep it succinct. Current house in mum/dad name along with mortgage in their name. Currently son lives in the house and effectively pays the mortgage by transferring money to mum each month. Objective: Mum/dad looking to clear mortgage next year and transfer ownership of house to son. So son to take on his own mortgage or take over existing mortgage. Implications that I can see: 1) CGT for mum/dad: if sell to son at market value I think this will attract CGT on the uplift in value of the property (circa £200k), not a preferred option 2) IHT for mum/dad: Option to gift house to son negating CGT (I think?), will be classed as potentially exempt gift and assuming mum & dad don't die within 7 years no chargeable gain from IHT perspective? 3) Mortgage/title deeds transfer: Assuming option 2 is available how hard is it to transfer mortgage/title deeds. Feels like you are shackled to existing lender or is it still straightforward to take out new mortgage under son name and repay existing mortgage in mum/dad name? 4) Stamp duty: Are there any stamp duty implications on transfer? He is first time buyer but house value is near to £500k mark so if valued over may be subject to a bit of stamp duty. is there anything else i'm missing? this feels like a complicated scenario but maybe it is more straightforward than I think! Any advice or pointers would be greatly appreciated!! all the best. J
  9. Simon, appreciate your comments, all makes sense. So in essence a portfolio landlord will still have access to the usual BTL lending but just have to jump through some more admin hoops! thanks again James
  10. Hi all, Although I only currently have 1 investment property I am at the stage where I can add 2-3 more "lower value" properties or 1 more in my local area (South East). My limited understanding is once you go from 3 to 4 properties you then become a portfolio landlord, thus require to have one pooled mortgage for the whole portfolio. My understanding is this is more expensive? is this the case, and if so, is it roughly +2% to what you can get on individual BTL properties? My second question is how do you transition to a pooled mortgage? For example I will have 3 individual mortgages and then I will buy a 4th so how do you transition? Surely you are not expected to remortgage early on the other 3? Anything else I need to be aware of in terms of costs and other cons (or pros!). Any advice would be appreciated. James
  11. I also had a similar experience with TMW last year after they pulled out at the last minute on a deal which meant we had to get a last minute bridge loan, costing me around £10k more. Their reason for the rejection: "the property was marketed as below market value". I have just re-mortgaged the property and they were the recommended lender from the broker. I gave them a second chance and they were fine to be fair.
  12. Hi all, for those familiar with this new legislation can you confirm in the below example whether another test would be due: New tenant arrives in Sep 2021, electrical certificate done. tenant leaves 3 months later in Nov 2021 and new tenant arrives in Dec 2021. My understanding looking at the rules is a new test would need to be carried out even though one was done 4 months earlier. Has anyone had the test done yet, and if so, what was the cost? I am getting quotes between £200-£300 for a standard 3 bedroom house, albeit it is in the South East. thanks James
  13. Morning, I was a chartered accountant who worked in practice for a few years but no longer do so and now own my own SPV for property investment. My advice would use some of the free accountancy software that is out there (I use wave however I believe they are no longer supporting non US companies) but there are others. Essentially these will auto populate trial balances, profit and losses, balance sheet etc. All you need to do is enter the bank statement data and can also use it to generate sales invoices if you need to. Having software like this is helpful for you as you can see how the finances are shaping up and also helpful for your accountant. It should in theory lead to lower fees as you would be providing them the necessary info in a format that is much better than a spread sheet etc. I wouldn’t recommend you try and do the accounts and corporation tax returns yourself unless your familiar with things like revaluations, deferred tax, tax reliefs such as capital allowances and knowing what expenses are not allowable for tax purposes. hope that helps. James
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