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Adam Hosker

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Everything posted by Adam Hosker

  1. The lease is something that your Conveyancer will usually check. It doesn't mean you cant but it is unusual. The main contention these days is about Ground Rent on leases and the charge doubling or increasing in a manor not inline with a respected index. People usually believe the lease term.
  2. Not really, from what you have said. It seems the underwriter is going above and beyond. So your mortgage adviser has to either fight that decision and/or look to other lending options. Your broker will be well armed with the next best backup. Santander (written) policy is typical, so your current setup shouldn't hinder you, and options should be available.
  3. It's highly likely to be mortgageable Alan, you will be looking for a commercial mortgage. None of your standard Buy-to-Let Mortgages are fully behind a commercial element being part of the title.
  4. They can do what they want, plus whilst policy may say X. Due to COVID lenders are looking more eagerly at self-employed person. Yet the policy is clear, just because they can doesn't mean your mortgage adviser should not be pushing back. With the help of there Business Development Manager (BDM) (where required) they may get the underwriter to change there mind. Is any other applicant (or partner) a shareholder in the company(s) that would push you over 20%?
  5. You should talk to a broker @jm123 I cant really give accurate specific advice on a forum. That depends on the mortgage lender. Some allow you to use the money for "any legal purpose". Others require you to have a property offered etc.. Err?? If you have been gifted two properties, and you want to rent them out then it would be a Buy-to-Let. If you want to live in one of them it will be a Residential Mortgage. If your family members will still reside in the property, it gets more interesting but that would be a Regulated Buy-to-Let. Err.. Not really, just take out as l
  6. It is very limited @arjunb as @Stuart Phillips says. I know one of the team has recently completed a mortgage with the applicant not having Personal Guarantees. My chat with him about it (I don't know specifics) is that it had to be Low Loan-to-Value and the Interest Rates were high. The Low Loan-to-Value is expected, its a risk thing. The high interest rates is due to you having no other options (and risk). NOTE: Some people think not having a "Personal Guarantee" means a mortgage lender will not check you personally, your credit history, etc... That is not the case, this is no
  7. Yes but talk to your mortgage broker about specific lender criteria.
  8. You have to pay, once you complete. Though you can delay the completion of the mortgage with your conveyancer. You need to watch out for the expiry date for your mortgage offer and that the person you are buying it from may get annoyed with delays.
  9. No, that's cool @chrispbacon You are using Total-to-Pay like a semi-pro. Most people fixate on the Interest Rates so your definitely on the right track. Of course that tool only works if all those products are 5 year fixes, as you have not included the Standard Variable Rate (SVR). As @Stuart Phillips outlines and the Financial Conduct Authority (FCA) puts a lot of emphasis is if the fees are Added to the Loan or Paid Upfront. If they are paid upfront them your spreadsheet works fine, if they are added to the loan then there is a compounding effect that your calculator does not
  10. The long-term option is to put the rental income into a savings pot (alongside your other excess income) to build a deposit to buy further properties. The quicker option would be to refinance these properties to release equity. You could get 50% LTV mortgage on the £300k property, releasing £150,000 that you can use to buy further properties. Using that cash as a deposit. You could either go the simple route and buy decent properties and rent out. Otherwise you could go the other route and buy distressed properties, that could do with a bit of renovation and add value. The latter can
  11. They removed 5% Deposit Mortgages for two reasons: High Demand but staff were isolating at home and couldn't process them. Perceived Risk of COVID Consequences. The former they solved with IT and remote working, it took them a long time to get into the good pace. The vaccine is now helping and the removal of lockdown restrictions. The latter has been either removed or displaced by the various government schemes to keep the economy going. So if 10% comes back, depends if the Government spending is working or just delayed economic damage. Though the timeframe for Th
  12. You were right the first time, to use a broker even if that is Habito. I can list mortgage lenders for you till the cow's come home. Many of them wont fit your requirements, many of them will have inferior mortgage products and many of them wont be available to you direct. Even high street banks have mortgage lending for BTL that they do not offer in branch but via brokers only. You get results from mortgage advisers after completing form(s) that's what you have to do. There are comparison websites, where you type in Mortgage Amount and Deposit and it gives you an idea of the r
  13. It's a good way to keep fixed financial costs down but I would check there terms and conditions. The last time I used it they wanted proof that I was the owner of the property that I was marketing ( a lot of scammers rent out properties they don't own. Either illegal subletting or fee scams). If this does not work, im sure there is a local small letting agent that will be happy to help you out for a fee. RightMove and Zoopla are expensive on there own and prices are going up.
  14. You want to avoid Parent Companies and Group Structures, when it comes to getting mortgages for Buy-to-Let Purposes. Most mortgage lenders do not like complex structures and want people as the shareholders/directors not other companies. As this increases the risk in there view and complicates the legal process. You can use the same SPV to Buy, Renovate and Rent (BRR) a property. You should use a different entity or personal name to Buy, Renovate, Sell (BRS) a property, as that is trading/construction and mortgage lenders do not like that either. Though if you do this every now a
  15. Ouch! That is a lot but it really should be sorted by now or have a plan in place. The traction is towards better energy efficiency.
  16. I think you are making it unnecessarily complex @ellenh. Having one BTL cover 2 flats restricts the mortgage lenders available. If you are going to be splitting the titles anyway, 9 times out of 10 its better to get 2 BTL mortgages. Though your mortgage broker can go through and make a recommendation for you.
  17. All you can do is contact the Estate Agent and evidence that you are a cash buyer. (A lot of people claim they are and are not). This will give the lender confidence that your offer will be less hassle for the vendor. No guarantee they will take your offer over a higher offer, but it does add weight to your offer.
  18. I would not recommend withholding Ground Rent. As you are a Leaseholder, aka "Tenant". That means that they can take measures to void your lease. Which may first involve contacting your Mortgage Lender, which will void your mortgage. It's not a nice situation to find yourself in. Though in your situation it sounds like you have paid £3,000 ground rent in advance (in absence of furniture packs). You may want to ask a solicitor, rather than the forum on how to proceed. As you say it seems weird to be paying someone whom owns you funds.
  19. It is a common issue Man2000. Your mortgage broker has recommended the wrong lender for your circumstances unfortunately. Some lenders have restrictions on what you can do with the equity that you release with them. Other lenders require an onward purchase as evidence, often only releasing the funds once the other is ready to exchange. Your broker can recommend other lenders though, without such tight restrictions. Hope this helps.
  20. The Term mainly comes into play when you are on a repayment mortgage. As that is the time in which you need to get the Mortgage Capital down to £0. If you are on interest only, as with most Buy-to-Let Mortgages. A longer term or shorter term does not make much difference. Except a short term could put you under pressure, if they are demanding you repay them (say after 5 years) but the economy has retreated or you have an accidental blemish on a credit file - preventing you from refinanceing.
  21. No, they do not like this kind of structure enmass. You will have a minority of lenders willing to lend but given the number of LTD Company Lenders is already low. It's not something we'd advise to do.
  22. Yes, deposit is in the equity. You do not have to have £25k in the company account. The limited company lenders that do this are very content with the process. In addition the amount of equity/deposit is typically noted on the Companies Book's as a Directors Loan. So it can be paid back in a tax efficient manor.
  23. It seems odd to do it in two conveyancing stages? The transfer (sale) and then later a mortgage. You would typically just have one Conveyancing event, as in the Company buys the property from you with a mortgage and its put in the companies name.
  24. I'm answering a different question to what Stuart answered but.... You can obtain bridging finance on the freehold block. This will give you funds, if required to do the conversion(s) and any works in the property. You can also then create the Leasehold Titles, the bridging finance will work with your conveyancer to ensure that the charge is also put on the Leasehold Units to protect themselves. Then you can either Sell or Refinance. When you sell or refinance, it will a act like a normal mortgage. They will release there charge(s) when the funds are repaid from the sa
  25. My question is how do I find a mortgage advisor I can trust? Peer recommendations or in absence of that perhaps reviews on TrustPilot or Google. Is there a database of accredited advisors I can search? Not really, there is a database of accredited mortgage firms. Other than that you can check Unbiased for example. Do I need someone specialising in LISA's? I'd not say that ISA's is something you need a mortgage adviser to specialise in. How much can I expect to pay for initial advise? At a maximum £495. There are a lot of firms that charge more or a % of the b
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