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Hi fellow investors, I've had a few difficult BTL lenders being very difficult to do business with. The property is owned by a LTD company. First Lender TMW; Undervalued my property from initial purchase price roughly 2% (Purchasd in 2020). I appealed the valuation and provided x2 comparison properties. And they have refused the appeal with no comments. The original mortgage offer is still available, but I'd have to pay the difference between mortgages. Second Lender - Nottingham B.S. Refused mortgage due to area being ex social housing. Property details. 1 bedroom Maisonette, Lease 123 Years. Purchased in 2020 Wondering if anyone has any advice or similar situations. Regards, Craig.
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Instagram connect with property investors
Lee Northrop posted a topic in General property discussion
Hey guys, just thinking it would be great to connect with you all on instagram. Its a much bigger platform now with great content posted constantly from some very experienced investors Anyway my username is unsurprisingly: Leenorthrop Connect and I will follow -
Hi All, i currently own four BTL properties under my own name, and has been looking into a LLP/Limited Company structure for tax reduction purposes. The current rental income level (all rental) is about to put me into the higher tax bracket. It would be great to have the community's input on whether there's a specific income threshold that I should hit before it's tax efficient enough for the restructure. Or is there any criteria or condition that I should meet before consider the switch? Thanks in advance. Pete -
Hi all, I’m curious to know if corporation tax is payable on funds released by mortgaging a property. For example, if my LTD company buys a house for £100k cash and then I mortgage it for £200k (example) at 75% LTV, that means that the company would receive £150k cash from the remortgage. Is this £150k essentially tax free or would corporation tax be payable? As a personal/individual landlord (not a LTD company) I know that CGT isn’t payable on equity release, but I’m not sure if this is the case for LTD companies. Any insights are greatly appreciated! Thanks!
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Hi all, great to be part of the group. I have been based overseas for some years and with at least another 18 months in the same situation before a return to the UK permanently, my wife and I are keen to start a BTL property portfolio... BUT.. with the extra 2+3% SDLT and knowing that we'll be back in the higher rate tax bracket on return, struggling to make the numbers stack up on the monthly yield. The income is not a requirement at the moment and more to leave in the bank and build towards the next property deposit. I would welcome any thoughts as to what should be a good target yield (or monetary figure) net all payments and taxes that should be considered 'safe', as we have no real knowledge of potential maintenance costs etc of apartments / houses in the UK. Considering that the Ltd Co would be the best route to go , any recommendations of companies / accountants that have provided a good service for individuals in a similar situation? Many thanks in advance Grant -
Hi all, great to be part of the group. I have been based overseas for some years and with at least another 18 months in the same situation before a return to the UK permanently, my wife and I are keen to start a BTL property portfolio... BUT.. with the extra 2+3% SDLT and knowing that we'll be back in the higher rate tax bracket on return, struggling to make the numbers stack up on the monthly yield. The income is not a requirement at the moment and more to leave in the bank and build towards the next property deposit. I would welcome any thoughts as to what should be a good target yield (or monetary figure) net all payments and taxes that should be considered 'safe', as we have no real knowledge of potential maintenance costs etc of apartments / houses in the UK. Considering that the Ltd Co would be the best route to go , any recommendations of companies / accountants that have provided a good service for individuals in a similar situation? Many thanks in advance Grant
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Hello, I am a new investor and understand you can take £3k out of your limited company into your personal name / year tax free as a dividend. I have three questions relating to this. 1. really I would like to continue building money within the company to invest in further buy to let properties. Therefore is it possible to take the £3k from rent/ year and immediately re invest the money as back into the company so that you could take a tax free lump sum in the future as this would in effect be your company returning the money you lent it? Ie. The same as you can remove your initial deposit tax free 2. If there is another person with significant control who owns the other half of the company can they also take £3k as a tax free dividend and probably in a similar way? 3. What paperwork do you need to show to do this? Is it a letter from the director to the share holder to say the terms of the loan and so on? Thanks very much for any help that you can offer! -
Hey guys Charlie B here. So a bit of back story. Like most people on here (I assume) I have been dreaming of creating a property portfolio since my late teens. In all honesty I thought I would have at least started by now (33) but hey ho. So where I am at. As of right now I have 2 year's before I can access the equity in my own private home without being charged a hefty amount. I plan on using this time to gain knowledge, up skill and hopefully build some good connections. I have read Rob D's property investment for beginners and am now reading the follow up book. I've came to realise to need for a solid plan instead of the vague idea I've always had in my head. Thanks to anyone and everyone who takes the time read and or comment on this post I really appreciate it. Any advice or direction would be greatly appreciated. Especially when it comes to laying out a solid plan on paper!! I've really no idea where to start!.
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Hey folks, I'm after some advice. At the moment I don't have the capital to start investing. I also have a little debt that I am in the process of paying off. My thoughts for obtaining the starting capital is to release the equity from my home. My current mortgage deal ends in 30 months. So I was wondering would it be advisable to remortgage early and eat the fees in order to obtain the capital quicker?? At the moment I have a £3,000 cushion from past overpayments that would be more than enough to pay the fees. At the moment my house is worth circa £200,000 with my mortgage being £100,000 am I right in thinking you can release equity upto %80 of the value of the property. Using these calculations I estimate around £60,000 of starting capital. I understand this a personal choice that needs be made but would just like to hears others thoughts on this. Thanks in advance
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I would love the opportunity to ask a few questions to obtain insightful feedback to problems you face or may have faced whilst gaining valuable experience along the way. Here is a link to google forms where you will be asked a selection of short questions which will help me build a picture of effective ways to communicate alongside potential clients with greater accuracy, insight and certainty. https://docs.google.com/forms/d/e/1FAIpQLScJbaQSTMyrIWFtfrX80IDOHmnyEDLB091Bm_Bt-_4Bbwc3Ew/viewform?usp=sf_link Many thanks for taking time to read this topic. Michelle
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Hi all, Just looking for a bit of advice regarding BTL investments. I am trying to calculate the amount of money i would leave in the deal until such time that I can refinance and try to pull some of my money back out. I am hoping to buy 3 or 4 properties soon but I feel that I would stuck after that as all my cash will then be tied up. Firstly.. Is it realistic to expect to pull all or most of your initial investment out of the deal? I am struggling to see how this could be achieved even with the properties that need refurbishment. I have found that the refinance only covers the original loan and part of the refurb costs. Is there an 'acceptable' percentage to leave in a deal? Secondly... Some people I have spoken to have said you can refinance after 6 months and 1 day, some people have advised against this? Is there any implications on my credit score if I refinance after only 6 months? What are the down sides regarding this? Any help or advice would be greatly appreciated, Steve C -
Hi All, I've relocated out of UK and want to sell up a few of my BTLs sourced from Property Hub Invest. First one I am looking to sell is in Bradford...does anyone have any good Estate Agents they have used. Thanks, Dan
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Good afternoon, I hope you don't mind me reaching out for some advice. First time investor here so please go easy on me I have around £100k to invest in a cash purchase but I'm still unsure whether to go for a property of around £100k and recycle the money 6 months later with a BTL mortgage or to buy two smaller 2 bed BTL properties worth a much lower price "up North". I am interested in the following (BMV?) deal in Burnley BB11 as a cash purchase with a view to mortgage it at 75% at the earliest possible stage. Comparable sales (2019/2020) in the area were between £97.5k - £110k. I am in the process of doing my own due diligence but I would appreciate your views. Looking at the figures below, the Solicitor / Conveyancing fees appear a little low. It appears maintenance & repair fees aren't built in either? Many thanks, Tom Contingency @ 20%
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Hi all, We all hear on TV, on the radio, in the papers and on property podcast about buying at auction, but, where are all of these auctions taking place and how do we get hold of the catalogues? I have searched many times on the web and never seem to find anything more than a few small sales, and barely any have any decent online catalogues. The best I have found and always refer back to is Clive Emson http://www.cliveemson.co.uk/ , but I am keen to find others. So, if any other members know of other sites that have a good online catalogue or catalogues that are easy to get hold of then please comment and share below. Many thanks. David.
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I am embarking on my property portfolio and personally think a flat is a more conservative option than a house. Don't want to start with anything complex like flip, HMS and etc. Just a simple vanilla let. So I have come across these two options: 1- A flat in a premium location (next to train station or town centres) targeting young professionals or a mature or PhD student. 2- A flat on a more suburb or smaller town targeting retired people. Obviously the first one offers better yield but less stable tenants. And the second one probably gives a longer term tenant with probably discounted rate (some of them might be on disability benefit). For me at the moment, building solid cash flow and being able to re-mortgage the property is my number one priority. So I am slightly siding with number 2 strategy. What's your though on this? If you have experience managing any one them please share. -
Hi everyone, I am a non-resident and a non-citizen looking on to investing on a property in UK. So I was wondering that if I pay cash 100% and I remortgage the property, there's a 6 months cooling period right? 1. So I would like to know if it is true that you cannot use the money from remortgaging and cannot be taken as cash? 2. In this case you can only use the money in investing to another property? Does that mean if I pay 100% in cash then remortgage a property, I'll have the 75% back which then has to be used to invest on 3 different properties given that 25% equity is required? 3. Is there a workaround with me having the cash from remortgaging so I can invest the money somewhere else? Would really appreciate your inputs and suggestion on this one. Thank you so much! -
I have a nice first floor one bed buy to let I've had for 11 years in W10. I would like to sell and I currently have it on with an estate agent. But it's over restaurant/commercial and makes mortgages harder to get. Having finally sold a different property last year to the fourth buyer after previous three buyers unable to continue, I don't want to go through all that again. Would going to auction be my best option on this harder to mortgage flat? Would appreciate your views! Thanks.
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Hi all, This is my first post and I hope someone can help! My gf and I is looking to buy our first BTL property under a limited company and I understand that we will need to do personal guarantees against the mortgage (which is fine). We both have our own residential mortgages , however, she has a help to buy equity loan on hers. I understand that with HTB you can’t own another property until you have paid off your existing equity loan (or sell the property) . Is this also the case if the property is purchased under an ltd company as it is a separate entity? Many thanks in advance, Jordan
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Morning All, Just in the process of selling my first flip and now looking to move towards the BTL investment route. My plan will most likely involve carrying out works to these BTLs to increase the market value. The question I have - When creating a company, am I okay to just have 1 SPV Ltd company to buy, carry out refurb works, refinance with BTL mortgages and also hold the properties. Or will I need to form a parent company that specialises in carrying out the refurb works on the properties held in a separate SPV? Thanks. Alex
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Hi All, Interested in purchasing a buy to let in Nottingham. We live fairly close but do not know the area at all. We have done some research of areas to avoid but also appreciate some of these properties will produce higher yields. Does anyone have any advice or recommendations of best areas to invest in Nottingham? Looking at a single let for this investment so professionals, couples, families but looking at keeping the property price around the 120k mark with any refurb and additional costs on top of this. Thank you in advance Cass
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Hi All, New to the forum and looking for some insight into what my chances may be of securing a btl mortgage in limited time, So to cut a long story short, I have purchased a flat in auction just on Friday 28/2/21, yes I know it's crazy but I haven't physically seen it. I was outbid on the actual auction, however it didn't meet the reserve so didn't sell. A week later I get a call, it's still available and being offered to me below the reserve before it's back in auction a week later, I make a lowball offer which was refused, I then offer to meet half way to the sellers asking price and I would make a deal today (Friday). A couple hours later I get a call and the seller has accepted! It's local, I know the area and market value, and it's got enough of a margin to cover potential issues, although I'm confident it's a straightforward renovation (new bathroom, kitchen decoration, possibly new boiler), so I FOMO'd and paid the deposit to secure it without viewing, and yes I studied the legal pack and all is good. To cut to the chase it will be a buy-to-let investment, and it is still sold under auction conditions with a 6 week completion date, and my intention is to renovate to a good standard before letting. I want to try to secure a buy-to-let mortgage in time to avoid extra costs of bridge loan. The property does look to be in 'habitable condition' , but my question is is it in 'lettable' condition? The only hurdle I can see that could delay the mortgage application is if the survey may regard it as not in 'lettable' condition before renovation. I know the property was being lived in by the owner/occupiers until recently, from the pictures it obviously needs renovating/modernising, but assuming it has a working kitchen, bathroom, electrics, heating and no holes in the roof, would lenders consider it unlettable just on the basis it needs updating? I want get some idea if this is doable from anyone with experience in getting a buy-to-let mortgage for auction property, and what hurdles you had with it. Pictures are attached. Appreciate your help members. Mohsin. -
Hey, just looking for some advice/guidance....I have the opportunity to purchase a property at c. £110K cash (which I can do), its on the market for £150K, desktop valuation shows £149K, so definitely BMV. It is a 2yr old build surrounded by older properties, so at the top of the list in terms of value when compared to other local properties. There is no work/refurb needed, just a motivated seller - But, I dont want to leave all my cash tied up in the deal and therefore would look to mortgage the property at around the 6 month mark. My concerns:- How will I get the valuation at c. £150k if I brought the property for 6 months earlier at £110k. I cant evidence any work that I have done or value that i have added. The property is in a postcode that has had 7 sales in 12 years, so there no real comparable (the only evidence will be the £110k I paid 6 months earlier) At a valuation of £150K it is at the top of the list in terms of values of the property in that area Would appreciate any advice/thoughts on what to do with something like this.....??
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Hello Hubbers! Hope you are all well... I was wondering if any readers would share their experiences of Deed of Guarantee signings required for their Limited Co BTL mortgages. I can’t find much reference to it in books or on this forum or the wider web, and professionals I’m dealing with such as Solicitors and Brokers are giving me contradictory opinions on it. Some are saying it’s unheard of and I should be able to negotiate out of them with the lenders, others act like everyone has to do it, so I’m fairly confused. I have a Limited company with my sister who is a small shareholder and director just for security and ease of continuation should anything happen to me. Our mortgages are with TMW and every time we sign up we both have to see an independent solicitor at £120 a time to sign a ‘Deed of Guarantee’, basically tying our own estates into the company finances and assets. Of course this takes all the protection out of using a Limited Co Vehicle, so aside from the tax benefits it’s a lot of hassle for not much other benefit. So who has signed them and who hasn’t and what are your thoughts on the matter? Regards.
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Hello, I apologise if this has been asked before. I have a property (owned personally) which is currently on a BTL mortgage which is to be refinanced. The tenant is moving out but I wish to now start a service accommodation business through a limited company. Can I use a commercial lease to rent this property from myself? If so, what mortgage do I need, would a BTL mortgage suffice with a guaranteed rent from the (my) limited company? Any tips would be appreciated and welcome! Yvonne
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Hi Everyone, Im really hoping some of you could share some opinions and advice for my situation and maybe tell me what you would do in my shoes. I currenlty live in a house worth £325K with a mortage outstanding of £225K I have found another property i would like to buy as my main residence which is £360K both properties are located in the south of england in hampshire so not the hottest location for capital growth but a good solid rental demand. After much head scratching i have boiled it down to 2 options: Option 1 Remortage my current property on to a LTB @ 80% LTV (5 year fixed as 2 year not available at this LTV) i would release £35K and the property would rent for £1200 pcm and cash flow at £272PM Net of costs and income tax. I would then purchase the new property on a 90% LTV using the relased equity and my £35K savings to cover the extra SDLT and fees assostiated, leaving me with somewhere arround £5K in the bank but 2 assets and 2 big mortages in an uncertain times. Pros: Keep a good cash flowing house, less transations so lower fees (no sale cost), ive lived in the house so know the market area and the target tennant well, second asset straight away rather than waiting IE gets my investing sooner, 5% Net ROI on a 3 bed semi house based on my cash left in. Cons: will leave me tighter than im used to cash wise, not sure a 5 year fixed mortage is a good idea right now? would prefer 2 years, i am emotionally attached to the house so worried i might be looking at it with rose tinted specticles, Current market conditions high risk? would it be wiser to cash out with option 2 now and wait. Option 2 Sell my Residential, by the new house and bank £85K to then go on and purchase either 1 larger or 2 small BTL properties somewhere at a later date once the economy is slightly more certain, negative to this is lost potential income and growth in the time it will take me on the addition transactions. i suppose the question on option 2 is with the 85K left over could i get a better investment or investments that give me a higher net ROI than 5% and higher net cash flow than £272 PM. Pros: More cash avaiable after move for light refurb on new home and or seperate BTL purchases, Cash out in uncertain times, less risk? Cons: Lost oppurtunity?, more fees, more transactions, taking longer to start investment journey, is there a better investment? I apprecate its a messy question with a few different layers but if anyone can unpack it and give me some feedback and opinions i would really appreciate it. Kind Regards,
