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Adam Hosker

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  1. Well one of the issues for "1st investment" being a HMO is that potential landlords have no experience. Though since you have two already you will be viewed as an experienced landlord. First Time HMO Landlords have a similar but less extreme problem, lenders like a bit of experience. That is not to say there are not options. Especially since you will be looking at Bridging Finance first to bring the property up to HMO Standards. Then looking to refinance. You should ask your broker (a good one in my signature) about Refurb-to-Let. Which is a single product for refurbing a property into a HMO and then onto Term.
  2. As much fun as it can be to correct a fellow broker firm. They are correct that builders with high concentration of rental properties, have difficulty in there clients obtaining finance. The theory being that once complete there will be a localised "over supply" of rental properties, resulting in lots of voids, low tenant quality and low rents. A builder should aim for a nice mix of tenure, which is why you often see many properties sold that prohibit renting in the title (for first few years). The Rent Guarantee schemes confirm this and may not be worth the paper they are written on. The company guaranteeing it may simply disappear. That all being said - give paul.lowcock@bespokefinance.info an email. He had the same problem on a case recently and resolved it.
  3. You want to talk to a Regulated Mortgage Adviser, its a regulated activity so hard to discuss on a open forum. You have two 95% LTV directions, one is with the governments help with "Help to Buy" which have its own criteria. The other is with the few lenders offering 95% LTV Mortgages themselves. The underlying difficulty with the non help-to-buy is that affordability is difficult. A good broker will be able to compare the options for you and give you a recommendation.
  4. No idea @chrisrush bridging lenders always have a view at the property and the value of the asset. They as far as I'm aware do not lend above your typical 80% LTV nevermind an extra 10% for works like @rickymillard suggests.
  5. With most mortgages if you remortgage within 8 months. You will have Early Repayment Charges. If you decide to "change" or "remortgage" to a Buy-to-Let when you have a Help-to-Buy loan on it, that will have to be repaid first. Remembering that Help-to-Buy helps you buy a property at 95% LTV where buy-to-let mortgages are limited to 80%-85% LTV. ( P.S. Barclays do not have comprehensive mortgage advisers. They have mortgage salesman armed only with a select few products they offer. A proper adviser will have thousands of options, Barclays maybe 20. )
  6. Well that's quite hard to do without knowing all of the facts. You forgot to mention that 75% LTV product comes with Free Valuation & £300 cashback. Any idea why your broker did not go with the 1.69% Santander tracker. I estimate your loan at £122k that'd be £173 per month instead of £229. Also why a 2 year tracker. Some great 2 year fixed out there at 1.58% range.
  7. I'm not sure about the other things - it seems like a question for an accountant. I could presume that each director would put it into the company as a "loan" for tax efficiency, in any old bank account with few charges. The best company structure for mortgage purposes is the most ordinary and simplest, equal shareholders in personal names. Will you be getting a mortgage? If so you may have limited your options with 5 friends, most limited company buy-to-let mortgage lenders merely by the design of there systems limit the owners to 4 applicants.
  8. If this was a trading company, then the concerns would be more about the liability for the trading company. Mortgage Lenders prefer Special Purpose Vehicles (SPV). With no other activity other than renting out Buy-to-Let Properties. They can be a day old with no trading history. If it was trading company restricted lending is to be expected. On an SPV he didnt have a good broker. No limit overall. Each lender will have there own lending limit to a borrower. This could be reaching a maximum number of properties or a maximum loan amount with them. On an SPV they more or less ignore the company. It is all on the Property (making sure that is self sufficient) and on the Directors/Shareholders ensuring they have enough income to live on and be able to cover voids if required. You will find some lenders with no minimum income and others with minimum income of £25,000. This sounds more like your friend was a First Time Landlord (and nothing to do with the SPV). The mortgage lenders would prefer him to have some experience this is normally negated after six months of ownership of a Buy-to-Let. Landlords with multiple properties already don't have this issue, new landlords lenders like to make sure they take it slow from the start. To ensure that it remains viable and the landlord is not overwhelmed, Put Simply, I am unsure why your Friend is having this financing problem. I suspect it is more than the company. It is probably because he is a new landlord, though even then there are mortgage lenders available. There is no limit on properties a person can buy overall (but specific lenders may set own limits internally to limit exposure to you). The lender always takes into account the background of the owners, such as income and assets. Seek out a good mortgage adviser.
  9. I am on @adam_hosker on Twitter. UK Politics and Mortgage Stuff mainly.
  10. That is an annoying decline, not much you can do about it. It's just down to the valuers opinion. You should work with your mortgage broker to apply to a lender with a different Survey Company, with a view to see if there is a different outcome. Its sometimes wise to go for a "free valuation" mortgage product on the 2nd try just in-case. The comment means it would be hard to sell. Lenders on "hard to sell" properties are often relieved of that pressure at Lower Loan to Value. They therefore being aware there is more equity in the property, so if they had to repossess and sell the property. There mortgage is likely to be covered even if they have to lower purchase price to get a bite. The other way to see it - is to take this to the Vendor. Tell them that the property is unmortgageable, to see if you can get a further discount. That if you buy it from them you would be stuck with a unmortgageable property.
  11. You would need their consent. Other than that the legal process is like a normal purchase, they will have there conveyancers and you yours. As I understand they may have Capital Gains Tax (CGT) and you may have Stamp Duty Land Tax (SDLT). It wont be calculated on the full price but the share you are buying them out of. It's not a simple admin change it is a completely new refinance. Well technically its part remortgage and part purchase but don't worry about that mortgage lenders are used to the transaction due to Divorce/Separation. As this is a Buy-to-Let its not so much about your affordability but the property being self-sufficient. To be in excess of the rental stress tests required. As well as you having enough income to cover your lifestyle with some requiring £25k or more income (but not all). Put Simply - There will likely be tax's to pay, you will need the other partners to consent to sell you their share. The legal and mortgage process is similar to a purchase. Use a good mortgage adviser.
  12. Welcome Jim! 4 or 5 renovations and sales going on at one time. You must be a busy guy! You get your hands dirty yourself or is it better to delegate with multiple projects on the go?
  13. Bespoke Finance Specialises in property investment including HMO's are also based in Leeds. Well Pudsey.. You would be limiting yourself to a smaller market in doing so. Perhaps paying a premium for the property already being converted and having a HMO Licence. Let you run the maths but it may be more profitable in the long-run to change a property into a HMO where there is demand and get the licence. A small HMO up to and including 4 tenants does not require a HMO Licence. When you get to 5 or more it then does. Also remembering Leeds has "some" minimal selective licensing areas. Certainly on Large HMO's, if you have no Buy-to-Let Experience. Though on smaller HMO's a First Time Landlord can still obtain finance, the number of lenders is reduced but still some options out there.
  14. I'm not sure I know anyone who specialises in BTL Finance in Darlington. Though like you say not a necessity to be local these days, Bespoke Finance offer their services nationwide.
  15. You will find it extremely difficult to obtain finance if you intend to live in the property and buy in a LTD Company.
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