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Warwickshire Novice

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  1. Hi there, I’d really appreciate some advice. If you were about to buy your first B2L under your own name (not a Ltd company), would todays statement put you off? I’m about to proceed with my first purchase (we’re getting near to looking at exchange dates, and I’ve a good mortgage rate agreed on a five year fixed, with an ok ROI) but I’m getting a little nervous re the state of the economy, and now with the reduction capital gains allowance, the reversal of the stamp duty cut in a couple of years, and the likelihood of a labour government in two years time with a possible crack down on rent rises. I’m getting edgy. The mortgage on my own residential property is up for renewal next year and I wondering whether I’m just better off paying that down. What are others views on my situation? And the impact of the Autumn statement on the general B2L market? Any views to help me put this into perspective would be gratefully appreciated! (I think the doom and gloom re the economy is getting to me!) Many thanks Daryl
  2. That’s useful to know! Thank you for your advice - it makes a lot of sense
  3. Thanks Chris. That sounds like really good advice which I will hold in mind. I guess once I exchange, I’ll have the interest accruing on the mortgage but at least it’ll provide some certainty. I’ve a couple of contractors going to look at the property over the next week and it’ll be interesting to know when they can carry out the work. Your help is much appreciated
  4. Thank you Barry for taking the time to respond. That’s really helpful. You’ve definitely given me food for thought regarding the letting agency. I was thinking I’d use one for the first let and then maybe manage it from then on. Yes the purchase is in an area I know well which tends to benefit from good capital growth. It’s all a bit nerve racking now though with the state of the economy and wide ranging predictions on what might happen to house prices. I secured a fair price in the summer, but I wondering whether it’s value will reduce significantly below that over the next year or so. I had wondered about trying to renegotiate the price. It’s a long term investment so I guess it should hopefully work out in the longer term.
  5. Hi Barry, Yes - fortunately I secured the mortgage rate in June. It’s a 5 year fixed rate. It would be great to get your take on the deal/figures.
  6. Hi there, I’m new to all this and I’m on course to make my first purchase. I would love to have some feedback on these figures/my calculations (on the attachments). Have I included everything? And have I calculated it all correctly? Any feedback on the deal would be gratefully received. Daryl
  7. Hi there, I’m hoping someone might be able to give me some advice regarding my first B2L. Having agreed a purchase in the early summer, the transaction has taken some time. It looks likely to complete later on this month. I’ll then need to have a decorator lined up to help to get it ready to let. I’m nervous that it’ll be ready to go onto the market just as it’s slowing down in December towards Christmas and I’ll be stuck with a void period. I’m wondering whether I should therefore look to complete the transaction in early January (my mortgage is valid until then)? Most of the delays so far have been due to the seller not submitting the paperwork in a timely manner and I’ve been trying to keep up the pace as much as I can so far. Any advice would be most welcome! Daryl
  8. Thanks for your reply. That’s really helpful. It’s a good property and I had a good opportunity with the purchase price which is significantly below market value. The lease is 999 years so it’s well covered and the service charge is £45 pcm which includes buildings insurance. The mortgage went through fine and I don’t think I’d have a problem selling it. It’s a 1960s build not inbetween in the new/old stakes
  9. Hi all, I’m looking for some advice and recommendations regarding surveying a property I’m in the process of purchasing. It’s a leasehold three bed terraced property in Warwickshire, and it’s my first B2L purchase. I’m wondering what sort of survey I should carry out? And what other checks (boiler, electrics etc) you would advise checking out ahead of purchase? Are there surveyors who might be able to survey the property and complete other checks at the same time (ie test the boiler and circuits etc at the same time - I appreciate I’d be looking for quite a varied skill set)? If anyone midlands based has any suggestions on recommended surveyors or a rough idea of what I might be paying for the surveyor, that would also be appreciated. Many thanks!
  10. Thanks for the tips and sorry for the confusion. I was trying to say that the effective 24% is charged on the gross amount including the cleaning fee (which is paid to me by guests but I then need to transfer back to the management company). This might be normal practice but I’m new to all this. I’ve contacted a few companies today: pass the keys hello guest Airsimple sykes group cottages.com I’ll await to see what they say. If you, or anyone else, happens to have any experience of working with any of these then I’d love to hear about it. Also do let me know if there’s anything in particular that you think it’s important to check.
  11. Thanks for your reply. Your blog is really insightful 👍 I noticed that you quote 12% + vat on the blog which is quite a bit lower than the 24% (inc vat) that I'm being quoted. I was actually fine with that, until I saw that I'd also be paying that percentage on the cleaning service fee which is simply transferred to me only for me to pay it back to them in full plus the percentage fee too. Is that normal? They do seem like a good set up. I have seen other companies offering cheaper but, ideally, it would be great to have recommendations. I appreciate not all management companies operate nationwide - but are there any you can think of? or any places that might keep a list?
  12. Hi there, I'm new to the field of BTL and holiday lets and, having had an offer accepted on a property, I'm considering the holiday let option. I've been in touch with a company who are offering a 20% +VAT management fee, but they're also charging this on the cleaning fee of £100 per let which I then have to pay back to them (effectively charging me an additional £24 on top of the 20+VAT of the rental price). They seem to have good reviews but the fees seem quite steep. What do other think of these rates? Does anyone have any recommendations for holiday let management companies? I'm looking for a company with good reviews, a competitive fee, and one that operates in Warwickshire. I'd be looking to do as little as possible in terms of day to day running so I'd like a full management service. Any advice and suggestions would be very gratefully received 👍 (P.s I appreciate this may have been asked before - possibly several times - so do point me in the direction of other relevant threads if that's the case)
  13. Thanks both for your replies. I managed to secure a 2.78% mortgage in my own name and my broker can now only get 3.84% for an SPV ltd. I’d also pay no additional accountancy fees in my own name as that’s covered in my current arrangements. These seem to swing the balance for me. There’s also a risk of the sale falling through if I need to change the terms and delay it to get the Co and banking set up up. I’ve asked my accountant to run over all the figures (he’s not as quick to reply as you both have helpfully been👍) just to get his thoughts too. I’ll need to see how my finances play out over the next couple of years, but should I go for further purchases I will almost certainly go down the ltd route.
  14. That’s good to hear. I think my mortgage broker will be pleased if I stick to the original plan. It’s great to have your input 👍
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