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Hi All, I was just wondering if anyone knows the best equation or calculation to use to work out percentage share of a property, if you are going to purchase a property via Tenants in Common, legal agreement. For context, I’m buying a residential property with my long term partner but we are not married. The property value is £625K I’m putting down all the deposit which is 20% at £125K I’m also paying all other costs to purchase the property such as stamp duty and all legal fees which will probably be another 9K. I will also be paying most if not all the major home improvement cost over time which I’ve calculated as two jobs costing £15K and £40K-£50K. The mortgage amount is £500K. The payments will be be split between my partner and I. So I will pay 66% of the mortgage and my partner will pay 34% of the mortgage. Based on the above numbers, just wondering what percentage is fair for me and my partner? Is there a simple equation I can use or is there an alternative way to work this out.

Hi everyone, Really looking for advice here as keep hitting a brick wall! I just can't seem to stack any number up to generate a ROI of even over 3%! Please advise if i am doing something wrong or need to change: See below example: I am investing in my local area and decided to buy a property every year @ 100K Here is one i wouldn't mind getting as looks low maintenance - For arguments sake, lets keep price @ £100k I am investing through my LTD with 75 LTV (Based on 4% workings) Stamp Duty:- £3k Deposit £25k Solicitor Fees:- £1,000 Total Money In = £29,000 Morgage 4% Rent based on research and knowledge of area: £495 (Max) Mortgage Payments £250 Per Month (4%) Expense Before Tax Applied:- £173.10 - WORKING OUT HERE:- (£495 - Rent) MINUS 12% Estate Agent = £59.40 - Insurance = £12.50 - Mortgage Interest £250. Corporation Tax 19.00% = £32.89 Maintenance 10% = £49.50 Total Cashflow = £90.71 A Month but now the next bit sucks all profit out of the deal! Estate Agent Fees / other fees: Tenant Deposit Protection - £54 (Potentially) Electric Safety Cert - £60 A Year Gas Safety Certificate: £45 A Year Tenant Referencing:- £20 A Year (Potentially) Which if i factor those above costs in, i am left with £61.21 Profit per month @ a ROI of 0.0253 Getting frustrated with it now as I am only after a 4% ROI and really want to start buying as i've got a a pot of money around 70k and want it to start earning me some interest. Any help would be greatly appreciated as just can't seem to move forward! Cheers Ashley

Hi all, My wife an I are new to the property investment game. I am just reaching out to see if anyone could share a basic calculation that they use to formulate an offer on a property that we would like to buy, refurb, refinance and then rent out. I am using figures that involve me buying in cash initially, then hopefully pulling my money out after the refurb, but the offers required seem too low and we haven't had much luck with our offers so far. I'm not sure if I should be focusing on buying with a mortgage so only putting 25% down then refinancing after 6 months?? Any help/advice would be much appreciated, Thank you in advance. Steve.

I’d like some advice about whether I have calculated the CGT correctly in this situation. The property in question has a residential mortgage with permission to let which will now be paid off in full. It was a residential home for several years, then was rented out. It seems sensible now to change ownership before the end of this tax year with the expected changes to Private Residence Relief and Lettings Relief. I am hoping that someone can check my calculations below to see whether I have understood things correctly. Three quarters of the property will be gifted to others, with one quarter being retained – planned to take place on 21 Dec 2019. It will continue to be rented out. Current value is estimated to be £170000 My calculations are as follows Months £ Purchased 04-Jul-08 84001.50 including costs Moved out 31-Oct-11 40 extra 18mths 30-Apr-13 18 Rented out 31-Dec-19 80 127500.00 75% of current value (11.5 years) 138 43498.50 Total gain Other costs 300 Change ownership % time Months 43198.50 Nett gain Rented out 58 80 25042.61 Lived in 42 58 18155.89 Private residence Relief Letting relief 18155.89 Same as PRR Final taxable 7186.72 CGT allowance 12000 Tax due 0 Just to be clear, there are no other gains or losses to account for in this tax year Hopefully, I have worked this out correctly but some confirmation would be much appreciated. Many thanks.

Hi all, I currently own a property outright which i am considering either selling or remortgaging with the intent of renting out. I bought it back in 2012 and since then it has increased enough in value to be able to pull out all of the original cash we put in if we were to remortgage. Now ,if I am right, by remortgaging that means the ROI would be infinite...? but I'm not sure what that means for the net and gross values and how this would impact my decision on if this is a good property to keep or sell and buy another instead. How would I calculate these figures when remortgaging. Up to now I've been using the basis of looking for properties that offer at least 10% ROI. Hope I've given enough info. TIA!

Hi This is my first posting into this forum and I'm excited to be here. I have been planning to invest in property for while now, but because I am self employed I have been waiting for my second years accounts which are now ready. During this long wait the tax relief rules are now subject to change - just my luck! I have been busy doing my calculations to see if it is still worth my while investing and would appreciate any correction, or costs I may have missed during my calculations. I am in the higher bracket (40%) tax rate due to my day job. OK, here we go: All of these figures have been rounded up if they don't add up completely. House cost = 77500 House Cost including solictors, stamp duty, survery, arrangement fees etc = 82500 Gross yield 8% Rents for 6660 (550 pcm) Deposit 20,000 (25%) leaving mortgage of 57500 Interest only mortgage on this @ 5% annual interest = 2875 (240pcm) Because I’m at 40% tax due to day job: Tax liability at current 40 % relief rate is (6660 x 0.4 = 2640) – (2875 x 0.4) = 1490 At new 20% relief is 2640 – (2875 x 0.2) = 2065 I’m also considering monthly costs as the following : 1 months void – 550 Repairs – 550 Letting agent fees – 790 Insurance – 200 Gas certificates – 60 Energy certificate – 100 TOTAL 2250 6600 – 2250 (costs) – 1490 (tax @40 relief) = 2890 ROI 6600 – 2250 (costs) – 2065 (tax@20 relief) = 2285 ROI The one place I'm not certain is how tax affects costs, like repairs etc. Am I right to deduct all of these as costs from my rental income? Thanks for your time and input. Any corrections, suggestions are very welcome, and above all would you still see this as a worthwhile investment? Gareth