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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!
Hi everyone, I have been buy to let market using mortgage for a few years. Now I have some savings and am able to look at other options. I am not sure other options, e.g. cash buy, corwdfunding, are better than my current way. I would like to know your opinions and if there are other better ways than what i know. 1. My current way - apply 80% LTV mortgage buy to let, either 2 or 5 years, rent the property out to provide me monthly income. If the property price increased, i would sell it for some capital gain income or i can keep it for even longer term hoping it will increase more. 2. Cash buy - if the property is £150k market value, sometimes cash buyer could negotiate a good price as the seller urgently need cash. The property could be purchased as £120k or lower. It means after cash buy, i can refinace/remortgage it to recycle the cash. There are some addtional payment, e.g. stamp duty, socilitor fees, etc, but not much. The cash is in theory constantly recycled. 3. Crowdfunding - recently I heard this term and it can provide fixed return of 8-12% in 6-18months, depending on projects. One example, www.sourced.co, they only provide property investment project. Have anyone used them before? It sounds low risk and reasonble return. However, I know that it can't be true and any investment has risks. Anyone has used such method and would like to share your opinions? Note: There are some pros and cons using ltd company, however, this is not part of the question. The above 3 ways can apply to both personal and ltd company. I would like to know your opinions on which way produces higher return (obviously higher risk i assume) and if there are other ways. It could end up with similar return and similar risks. Thanks everyone in advance. Dawei
Newbie: Cash purchase or mortgage?
Elainekm posted a topic in General property discussionHi all, First of all- I would like to thank everyone who contributed to this forum. I've learnt so much just by reading through and I believe I will continue to spend countless of hours on here getting myself educated. This is my first ever post - so please excuse if my question seem silly. I've read a few books and listened to many podcasts about buying properties BMV, refurbish it, rent it out and re-mortgage after 6 months or so. My question is: How are investors funding these deals? For example if you have £100k cash, and a property up in Manchester is £65k with a refurb cost of £8k, do you buy it with cash completely and re-mortgage it after 6 months to get as much of your money back out? or do you just put down 25% as deposit, get a mortgage, fund the £8k refurb cost with cash and re-mortgage after 6 months? Of course, I understand there are pro and cons or being a cash buyer, but from an investor point of view, what is the best way to invest the cash you have in hand and what are the norms that other investors are doing to 'recycle' their cash? Many thanks!
Hi, I am an absolute novice in all this so forgive me if my question is dumb or else... I have a bit of cash on the side and formed an Limited SPV to invest my hard earned cash in some BTL. Initially I thought of buying Cash a property and seeing how it goes but I am now having second thoughts: What happens if I want to buy another property and all my cash is locked into my first property !!? I am wondering what is best for Limited SPV: 1/ Buy the first property with a mortgage which gives the advantage of leaving some cash for a second property. 2/ Buy the first property Cash and ask a lender for a mortgage later to release equity when I want to buy a second property. This has the advantage of making me a cash buyer, which I guess sellers like more. But I have no idea how the equity release aspect will work etc. also I could have a surprised if the lender values my property much lower than where I bought it. However I though that maybe a lender will be more inclined to give better terms if the asset is already bought and (hopefully) tenanted. Hopefully someone with experience in the matter will share their knowledge/experiences .... and I thank you very much in advance. Best regards
Delays caused by Buyer - should we trust them?
awiles01 posted a topic in Mortgage AdviceHi, Just looking for some advice on a situation we have unfortunately landed in after a very smooth first few weeks.To put you in the picture.We have a property (a flat) which we found a buyer almost instantly. The buyer is a well known property buyer in the area with an extensive portfolio and happens to also be the man in charge of managing the block of flats (the managing agent)He offered us a good price and was unsure whether he would either set it up on a buy-to-let mortgage or would use cash from his many properties he is selling currently (one being a 2.3 million house in London.)We then set out to look for a new house, which we did, and an offer was accepted by the Vendor. On we went to our Mortgage Advisor who set up our mortgage and the agreement was sent over to our solicitor along with the fixtures and fittings forms and a cheque for the searches to go ahead.Our solicitor has had contact from our Vendor's solicitor and also our Buyers Solicitor and everything was seeming to go ahead for a very smooth transaction to exchange.HOWEVER:We now have had a call from our buyer, he has said that his mortgage broker has been doing the rounds to source a buy-to-let mortgage however new rules have come into effect where lenders are struggling to offer people who have several (or lots in our guys situation) existing buy-to-let mortgages any further mortgage offers as it imposes greater risks.Our buyer then went on to say he is still keen to buy but he hasn't got the cash to hand right now to put down the full total property value but will do when the property he is selling in London (worth 2.3 million) has gone through.Our buyer has advised me it is my choice what I do, I can either put it back on the market or I wait and see what happens with his purchase of the property he is selling (he also has another smaller property in France which he is also selling as we speak) BUT he cant guarantee timescales or that it will definitely happen until the money is in his hands as anyone his end could also pull out or cause delays at any time.Where do I go from here, its gone from having no chain to alot of uncertainty...Of course I will tell the people we are buying from but is this a normal thing and am I worrying unnecessarily? We have only paid the solicitor search fees (£225.00) and also the survey for the house which was £175.00 so we havent lost out on LOADS but I am just concerned that the couple we are buying from wont want to hold out (they have a property to move into which is empty so I dont think there is LOTS of pressure to move ASAP - but of course I dont want it to be dragged out for them too much as its not fair) Any help or advice would be most appreciated.Thanks