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Hi I am based in an apartment block in London with around 30 flats. I am on the board of directors. We have a combination of leaseholders and I believe some flats own the freehold too. We wanted to enquire into taking out a large loan in order to complete some much needed building works. We would then figure out how much is needed to be paid back by each flat over as many years as possible. Does anyone know a company that specialises in loans of this nature please ? Thanks

My long term girlfriend and I have been looking for a route onto the housing ladder. My girlfriend’s Dad owns a commercial premises on which he runs a profitable laundrette from. He also owns the freehold to the first floor which has separate access and is currently being run as a 3 bedroom HMO. Long story short, the property is well suited for a loft conversion / extension, next door have already done this a few years ago. My girlfriend’s Dad has agreed to “gift” us ownership of the proposed 2nd self contained flat should we fund the works. The works would comprise a small ground floor extension to the business coupled with a light refurbishment, first floor reconfiguration within the existing footprint and a second floor loft conversion. The first floor is currently very dated and a complete refurbishment with a better layout would increase the rental income massively. By day I am a QS and comfortable with the planning and construction aspects of the project. The construction works will cost in the region of £100k-£130k depending of scope and final specification. My girlfriend and I plan to raise the capital from a family member who will release some equity in one of their properties. We will then repay them at full cost plus additional interest. Up until now, it all seems fairly straightforward, however this is where it gets a little complicated. The approximate financials of the project: All in construction costs (including fees): £130,000 Cost of borrowing (from family member): +/- £7,000 This next part is on my to do list in the coming week, I have been meaning to take the plans to a few estate agents and see if they will do a desktop valuation of the proposed plans. At this stage, all I can do is compared to the current market. This property is based in Teddington, London, comparable 1 bedroom flats, just across the road are selling for £330,000 (these are about 15m2 smaller than our proposed flat). To show the feasibility of the projects financials I will assume a final appraised value of £250,000, which is way under what I anticipate the value to be (anyone who knows the areas, will know 1 bedroom flats rarely appear for less than £300,000). Total spend: £137,000 Final appraised value: £250,000+ We would then mortgage the flat after 6 months at the appraised value of £250,000 +/-, using a 60% LTV mortgage. Meaning we would maintain 40% equity (approx £100,000) and release 60% (approx £150,000). This £150,000 will be used to repay our total spend to the family member. Should the appraised value be more and we manage to release more equity, this will be used to begin our property portfolio under the ‘buy, refurbish, refinance’ model. We are currently facing two areas we need some advice on. Question 1: My girlfriend’s Dad owns the property in question as a second home. Once the works are complete, we need to figure out the best way to transfer ownership (the new lease hold) of the second floor flat from my girlfriend’s dad to us! I understand we could be facing capital gains tax and I know there can be issues when gifting a property. I am looking for any tax experts who may be able to recommend the best way to go about this handover? Question 2: As mentioned previously the existing property comprises of a commercial space on the ground floor and HMO on the first floor. The proposed second floor flat which we plan to own and mortgage will be above both the commercial space and HMO. I am aware that when it comes to getting a mortgage on a property above commercial space you are faced with far fewer mortgage options. This is why in the calculations above, I have opted for a 60%LTV mortgage as my gut feeling is this would open up more mortgage options, if we can get a lower LTV, we would probably go for it. My concern is that for whatever reason we may not be able to get a mortgage at all on the second floor flat. Can anyone see a reason why this would be the case? If so, who would be the expert to consult, I am assuming a mortgage broker?

Hi I have set up a company/svp in order to start to build up a property portfolio. I was looking to do interest only (as landlords with a company will be able to continue to declare rental income after deducting the mortgage interest only payments) and make over-payments annually upto 10% so that i can pay the properties off. If i do the overpayments will that have any impact on the tax deductable nature of the calculation please ? or will these count like repayment mortgages and not be tax deductible. Any information here would be very useful. Thanks

Hi Everyone, I'm currently investigating what are the possibilities to invest in property. I'm not owning any property yet, I have limited resources for the initial deposit and I'm based in London. I hesitate between two options for my first property investment: - Buying my own property outside of London with a quick commute (ie Chelmsford or Milton Keynes). The positive point is that I would only need a 5% deposit and I can use the first home buyer scheme. However, I'm concerned that the property I could buy won't increase in value and building in equity will only be based on my monthly repayment. - Investing in buy-to-let in the North (Liverpool or Manchester). The forecasts are planning a great increase in property value however I'm afraid that I will struggle to bring 20% deposit (I'm currently looking into getting a personal loan to not stretch too much of my finance, which is going to make it even more difficult). My investment goal is building wealth in the long term, I'm currently full-time employed and I'm not searching to get high profit from my investments for now (even though profit is still appreciated ) What are your recommendations? Please let me know your thoughts, Many thanks for whoever read this topic Anne-Claire

Hi i want to purchase my first BTL property. I spoke with a mortgage broker and he said i will be best of waiting till i am 21 due to lack of lenders, my income is terrible but i have the deposit and my mother has a house she owns and will go guarantor, her income also isn't great around 14k a year. I am hoping the owning of a house may improve the situation... Will it? (My mothers house is around 240k and the house i am looking at for my first BTL purchase is around 60, i don't know if this makes a difference) Any help? or good mortgage broker suggestions? Thanks a bunch in advance.

Hi All, So i asked my bank for the cost i would incur for re-mortgaging my property. To give some context, i purchased the property 3 years ago off plan and got the keys on September 14th. Purchase Price £120k vs Current Market Value £170k. I probably wont re-mortgage within the 1 year prior of owning the property however i do plan to re-mortgage at some point. Is it a no brainier to go for option 2 as option 1 seem extortionate, especially the cost over the long term for the revised mortgage rate of 4.14%. Thanks "1. Remortgage: noted you are looking to remortgage to raise capital. Please be noted that you have to be the legal owner for more than 6 months before we could consider this and also the capital raise has to be for another purchase of property. You advised that the market value of the property should be around £170,000. You are currently on tracker rate product with rate of 3.54% (2.79% +base rate (currently 0.75%)), loan started from 14 Sept 2018, Interest Only repayment for loan amount £81,897. So for remortgage to raise capital, it would be like a fresh application. So the valuation fee based on market value of £170K would be £240, there is also arrangement fee of £1,895 + funds transfer fee of £35. There is also discharge fee of £95 since you have to redeem the current one and then release the new loan. Please be reminded that there will be Early Repayment Charge of 1% of your original loan amount if you remortgage complete before 14 Sept 2019 since it is still within the 12 months tie in period. There would also be broker fee if you would like the promotion rate with broker (as our direct rate would be 4.14% (3.39% + base rate)), also the conveyancing fee with your solicitor to deal with the case. 2. Redemption: If you would like to fully redeem your mortgage, then there will be £95 discharge fee from our side. Also there would be Early Repayment Charge of 1% of your original loan amount if you redeem within 1 year tie in period. "

Hello, Following listening to the PropertyHub podcasts, I have gained some basic knowledge of property investing but I require advice to proceed further. I am a 1st time buyer with a help-to-buy ISA and have £100,000 in savings. I want to move out of my parents house and into my own. I want to have a buy-to-let mortgage but also utilising the help-to-buy ISA so I believe I am required to be a home owner to obtain a help-to-buy. Please can anybody advise me on how to go about utilising a mortgage broker and also what the best plan is for starting my property portfolio. Any advice will be appreciated, thank you. Oscar