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Showing results for tags 'commercial'.
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Hi all, Am looking to invest in a property from a deal sourcer, and I wanted to know whether I need to be cautious, as part of the deal the sourcer has negotiated with the seller is that the vendor will pay all legal costs. To clarify I will have to pay my solicitor of course but the sellers also!! Is this normal as it's part of the deal that was negotiated and I will just have to swallow their costs if i want to take the deal, or does this not sound right? This will be my first investment/property so am a bit clueless to all of this and so just want to ensure that the wool's not being pulled over. Would love to hear your feedback. Thanks in advance
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Hello, I'm looking for some advice around making offers on properties which may be suitable for conversion. I'm interested in converting commercial properties to residential but I'd also be interested in what people with purely residential development have to say. I've not bought a commercial property before and I'm wondering about the following actions and whether they would normally be conducted before making an offer or after an offer is accepted: - Appointing a planning consultant to advise on permitted development for change of use. - Appointing an architect and having them advise on the potential reconfiguration. - Engaging with contractors/builders for quotes or full tender process. I may be 90% sure that permitted development would be granted, have a good idea of what configuration might work and have a reasonable idea of what the development costs would be, but still not quite be willing to committing to buy it without being more sure about the project's viability. If I did all of the above before offering, that could cost thousands of pounds only to have my offer rejected. If I did all the above after an offer is accepted and it emerges that permitted development is less likely that I thought or the development cost is going to be a lot more than I thought, is it normal for a developer simply to pull out of the deal at that point? Not having done the whole process before, I'm keen to know how people de-risk this process. Looking forward to hearing what you have to say. Thanks in advance! -
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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Hello All. I am a part time landlord with 2 HMO's as well as my home. I am interested in buying a commercial property which will come up for auction soon. It is a doctors surgery on a lease where the tenants maintains the property etc. The yield seems attractive (around 5%) and the land has potential for development in the future. Ideally I wish to convert mine and my wife's pensions into SIPP's, together with cash to purchase it. However since it is being sold at auction, preparing the SIPP will take too long and I would have to purchase it another way first. I am budgeting around 950k for the purchase. But I only have around 150k in cash. So I was considering raising around 400k against my home as a 'back to back' loan. My home is worth around 870k and I have an existing residential mortgage for 208k. Hence I would have 150k + 400k = 550k deposit. Then I would seek a commercial loan for around 450k or whatever is necessary to pay the remainder including SDLT too etc. Then when feasible, sell the property to my SIPP and pay off my additional borrowing etc. I don't have any SPV or company and don't have much knowledge about tax. I am employed full time and pay income tax at the 40% rate. It is possible that other family members may also make the purchase with me. Questions: 1) Should I setup a SPV or "close company" or other company to somehow save on tax or make the ownership easier to share? I have read a bit about lending money to a SPV and getting the SPV to repay the loan to myself after paying 20% withholding tax. Then I would somehow need to reclaim that withholding tax personally? I wonder how I can extract money from the SPV so I can pay the instalments on my mortgage in an efficient way. This article explains how to pay the loan instalments on a personal residence mortgage without a tax charge, presumably because a "close company" is paying the loan. https://www.fyldetaxaccountants.co.uk/property-articles/ypn/how-to-fund-your-new-property-investment-company-tax-efficiently-using-borrowed-funds/ 2) Should I attempt to purchase the property as an individual? I suppose that I will have to pay tax at 40% on any profits. Assuming that I use a repayment mortgage, I understand that I will be paying tax on the capital repayments and this could be considerable. 3) Would I pay SDLT on any transfer into a SIPP? I read something that implied that no SDLT is payable if the original owner and the ultimate beneficiary of the SIPP is the same entity. Would this be complicated if other people were involved too? I would be grateful for any advice. Best regards Tony -
Hi all, I have come across an HMO which is being leased to a social housing group. i would be buying the freehold as the lease has been sold at a premium for 999 years. there is a separate lease for 5 yrs which details the rent to be paid by the social housing group. i am not aware of any potential issues in this transaction, should i wish to buy it, can you let me know areas i should pay additional attention to? do i have the option of changing the tenant (social housing association) to some one else or am i locked into 1 tenant for as long as i decide to hold on to the property? many thanks in advance.
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A small office lease in the West Midlands that I'm considering is £6500 per annum / £10 sq/ft. What price do you think is reasonable to offer in light of covid and presumably lower demand? My conditions would likely be a 12 month initial term with a 6 month break clause, though I would be happy to sign for 24 months. I appreciate that this is a niche question, I don't know that much about commercial property leases as I'm principally involved in residential. Many thanks. James.
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So I'm looking at a potential commercial unit investment (Class A1 - Shops) which is currently vacant and in need of a facelift (ceiling & wall plastering, re-flooring, wiring etc). I'm keen to know what the 'minimum standard' is for refurbing commercial units of this sort before bringing them to market? E.g. is it similar to residential: flooring, walls, plumbing, electrics, etc all done- or is there more that would be expected from a potential commercial tenant (e.g. outside shutters, alarm systems, aisles, counters, etc)? Any knowledge resources/articles would be most welcome! Thanks
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Hi,I'm looking for commercial agent/surveyor recommendations please. I'm planning to invest in a commercial unit (ideally mixed use) for my next purchase- but struggling to find any websites/ portals/ etc that aren't auction houses.Any recommendations? -
Hello everyone, Am I obliged to hand over reports and surveys to the new owner of a property? We got Prior Approval for change of use under the permitted development regulations, to convert a small, run-down commercial site into residential, and then sold it via auction recently. We assume the new owners will want to submit a full planning application to knock the current buildings down and develop flats from scratch. As part of the PD process we paid for various plans, surveys, reports etc. My question is: which, if any, of these plans, surveys etc are we obliged to hand over to the new owners? Or are we entitled to negotiate a fair price with them for any they want? This is my parents’ retirement money so if we can recoup some of the thousands we paid then I feel we should. Many of the reports were submitted to the council as part of the PD application and the council published them on their website along with our application form, their decision notice etc. Are there specific documents which have to be publicly available? I can’t find a list or details anywhere. I’ve emailed the council to ask them to remove any non-essential ones, no reply yet. The entry in the auction catalogue only referred to Prior Approval being granted, not to any specific reports etc, so I assume there’s no issue there. The buyer would have been sent the legal pack (contract etc) when registering interest before the auction so I assume that would’ve included everything which was legally required at that point. Thanks for your help! Lee -
Hi Property Hubbers, My wife and I are looking at doing commercial to residential conversions using prior approval. There aren't many large office buildings where we live, but another b1 use class is 'light industrial'. Does anyone have any experience with b1 - c3 conversions? and what exactly is meant by 'light industrial? Or any other nice little ways you can change to residential using prior approval? Thanks a lot! Durian
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Hi Hubbers, i have found a great property with a great price in a good area, and I ask myself why! This property is on the market for £205K and has 1 x 2BD apt and 3 x 1BD apts. Two of the apts have their own separate entrances from the main entrance. Each apt will fetch approx £500 pcm. I have no idea how much money is needed to upgrade the property but it's mostly cosmetic so I'm guessing approximately £25K. I have spoke to a local property HMO mortgage expert who says due to no. 1 N. Ireland having less options anyway and no. 2 the property having separate entrances, it technically isn't considered a HMO and therefore private finance is not an option. He says I would need commercial Finance to make it work. I listen often to investers who go that extra yard to get deals that everyone else can't make happen. What do commercial bank lenders need to know when considering such a proposal. I have two other properties and my dad has a few properties. We could raise funds up to 40/50 LTV on this if squeezed. I would really appreciate any help you could give me. Regards Eoin
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Dear helpful community Me and my business partner are in negotiations to buy a vacant commercial property - small office block with separate workshops near Edinburgh. We are planning to buy cash with investor funds / bridging or a mix of both. I need to organise our exit strategy to refinance onto typical commercial lending. At the moment we only have experience in residential BTL / Holiday Let, Ltd company bridging, Ltd company holiday let but are novices when it comes to lending for a commercial property. The key areas I'd initially like some advice on are: Minimum timescale to refinance; Typical interest rate; Typical duration of mortgage / exit fees; Is interest only an option for commercial; If property bought below market value / valuation, what needs to be done to prove market value (surveyor valuation); Difference in valuation / lending with vacant possession vs leased vs running a profitable business from; Any other info you may deem useful. Any local brokers / hubbers with commercial experience, myself and my partner would be happy to meet and coffee and cake on us*! Ollie *Maximum 2 pieces of cake
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I ask this question because multi family properties are valued differently from single family therefore I would assume the cycle for multi family is based on a raise in rents ,by the landlord, increasing the value and not a raise in the value or number of comparable properties being sold as it is in the single family market. Basically, I am just wondering what the cycle looks like and is based on for multi family property? -
Hello everyone, Has anyone got any tips, opinions or comments on the best way to market and sell our small site? We’ve had some rough valuations and been told we can expect offers of over £350k. Any comments on any of these points would be appreciated! • Perhaps most importantly, auction? Or invite closed offers in a set (maybe 1 month?) timeframe? Which is likely to get us the best price for this sort of site in the current market? • If auction – any suggestions for the best firm, or any other tips? What sort of fees should we expect? • If closed offers – advertise it and deal with the sale ourselves or use an agent? We’ve had some direct contact from developers and we could advertise on websites, but is it worth paying for an agent to ensure we get the best price? • If using an agent how much should we expect to pay? I’ve contacted a few and the rates seem to vary widely! Some have suggested a flat fee but a percentage seems better as it gives them an incentive to get the best price. • In fact I’d prefer to offer a ‘staggered’ fee e.g. with a low percentage of the whole sale price, but a higher percentage of the amount achieved over (say) £350k. This would really incentivise the agent to get the best price possible. Has anyone done something similar before? • Should we expect to give the agent a set of keys and leave them to organise viewings etc, or should we be more involved? • Re: the sale process one agent’s recommended a small (£2k?) deposit and an exclusivity agreement with the chosen buyer in return for 28 days to exchange contracts, at which point the remainder of a 10% deposit would be payable with the rest of the money due in another 2 weeks. Does this all seem fine? • Obviously we’ll also need a solicitor to deal with the sale; again what sort of fees should we expect? Some background: We’ve now got Prior Approval under the Permitted Development regulations to convert the current 2 light commercial workshops into 4 small residential units. The site also includes a yard area. We could submit a planning application to knock the workshops down and make the best use of the whole site (using the PD scheme as a ‘fallback’ to negate any concerns the council may have re: change of use etc) but we’re not interested in developing the site ourselves and planning consultants have advised us that any buyer’s likely to want to develop their own plans anyway. We’ve no experience of development so we’re happy to get a slightly lower price and to leave the rest to someone else. The site’s in Catford, see my other 2 posts for a bit more information. Thanks! Lee
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I've been investing in single lets and now looking at moving into commercial to residential. It would be great to be able to get some advice from someone who does this to understand whats required and if its a suitable for me. I have some experience of converting houses into various configurations so it does seem this is the next step. -
Hello I am look for advice on mortgages which appears to be a fairly tricky area! I am looking to invest in a property through a limited company to run as a serviced apartment. Does anyone have any experience of this and willing to share their knowledge or recommend a broker for advice? I am wondering how possible it is going to be, being a new business; If there is a minimum they will lend; are lenders likely to do a portfolio loan. Any help would be gratefully appreciated! Many thanks Cara
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Good Morning, Hope anyone reading this had a great Christmas. I have recently seen a large property with 10 bedrooms plus, with a C2 planning classification and is classed as a commercial property. I have the following questions if I was to purchase this property and convert to 3, 2 bed apartments which will rented once complete. 1. Is it an easy exercise to change a C2 class to a C3 class? 2. If the aim is to turn the property to 3, 2 bed flats, how should the property be purchased. ie a) under a resi mortgage thus only needing 10% deposit and keeping some cash for the refurb works or b ) under a BTL mortgage within a Ltd company, in which case would need 25% deposit and eat into my funds. 3. If purchased under a resi mortgage once the works are complete I take it I could transfer all 3 bed properties to a ltd company. Any suggestions, advice or general comments on the above would be greatly appreciated. Kind regards, -
New Member 1 post Posted Saturday at 09:57 AM · Good morning folks. I'm new here and I've come to ask quite a complex question I think. So here we go...... I am in the process of sorting a mortgage AIP. I have decent credit and a 12% deposit so far. However... I've found the "perfect" property. It is a lovely old house (victorian ish) in dreadful condition! Perfect little doer upper. Decent price. Vendor will come down a bit. Splendid!! Then I do a little digging. They have had offers on the property before, as it has been on since last year. But no applicants proceeded. Hmm..... It turns out that although the vendor tells us that the planning office changed the use to residential... He didn't. In fact, there has been no planning application in anyway since 1987. But... he wants to sell. Desperately. So my question is... how? According to the deeds it is a freehold with no covenant. I can't get the funds together for a commercial and don't want the high interest of a semi. So is it possible? The vendor is talking about splitting the deeds as the shop has a completely separate door. Then selling me the shop for cash. Also in discussion is a Lease? Either on the shop or the house. It looks like a minefield but I'm really interested to see if it can be done. My solicitor is brilliant, but I don't want to start paying out just yet in case it is a no go. Any advice (however limited) would be gratefully received. Thanks guys Dave
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Good morning folks. I'm new here and I've come to ask quite a complex question I think. So here we go...... I am in the process of sorting a mortgage AIP. I have decent credit and a 12% deposit so far. However... I've found the "perfect" property. It is a lovely old house (victorian ish) in dreadful condition! Perfect little doer upper. Decent price. Vendor will come down a bit. Splendid!! Then I do a little digging. They have had offers on the property before, as it has been on since last year. But no applicants proceeded. Hmm..... It turns out that although the vendor tells us that the planning office changed the use to residential... He didn't. In fact, there has been no planning application in anyway since 1987. But... he wants to sell. Desperately. So my question is... how? According to the deeds it is a freehold with no covenant. I can't get the funds together for a commercial and don't want the high interest of a semi. So is it possible? The vendor is talking about splitting the deeds as the shop has a completely separate door. Then selling me the shop for cash. Also in discussion is a Lease? Either on the shop or the house. It looks like a minefield but I'm really interested to see if it can be done. My solicitor is brilliant, but I don't want to start paying out just yet in case it is a no go. Any advice (however limited) would be gratefully received. Thanks guys Dave
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Hello all, I'm interested to know what particular challenges established, new and prospective property investors are facing and any solutions you may think would help. Thanks, Jo
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Hi All, I thought I would introduce myself. I am not a professional property developer but have a house in London that I am renting out - I am renting in Bristol so that I can get to know the area and where I would like to live...... However, I am looking at a mixed use commercial property to buy and set up my cookery school business. I am looking at a wreck at the moment and hoping to get some advice on the project as I have never renovated a property before....so I will be cruising the renovations and planning section Nice to meet you all..... Sam
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Hello, Tristan here from Brighton. I am a farmer from south east England , over the last 2 years I have become involved in commercial development and lettings having played a large part in the conversion and development of an old dairy farm. I now manage the current 32 workshop units which are let to individuals and small businesses. We hope to expand the site further in the future as we are experiencing very high demand for out of town affordable office and light industrial workshops. The learning experience of this process has been vast and I would be more than happy to share what I have learnt so far with anyone interested in small scale commercial workshop development and lettings. In 2015 I invested in residential property for the first time, it was a JV with my father. Given the recent stamp duty changes and my wish to move in with my girlfriend we have decided to sell the current buy-to-let so we can buy a property of our own, avoiding the higher rate stamp duty and using the money made from the investment. With prices in the south east almost out of reach for us we are looking in the Hailsham, Eastbourne and Polegate area. We work about an hour away from these locations and ideally we would rather live nearer Crowborough/Uckfield. Our strategy is to do a fix and flip in one of these areas in order to generate some cash so we can afford to move closer to where we work. I'm also desperate to still have enough money to invest in a buy-to-let up north along the HS2 route in the next 2 years. We have viewed about 10 properties in these areas over the last 2 months, all needing varying amounts of work, we keep being out-bid and are struggling to find the opportunity to flip for good money within a 6 month time frame. Any advice on my strategy, the Hailsham, Eastbourne and Polegate area as well as fix and flips would be much appreciated. I have included a few photos of our current development. Many Thanks, Tristan
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We have a property that is performing particularly well from a yield and cashflow point of view and would be interest to know if there are any lenders in the market place that will lend based on a gearing based on the cashflow from the investment, and not just the bricks and mortar? We bought the property for £90k and spent less than £10k on rennovations and have recently secured £1900 pm on 6 month AST's from 5 individuals (bills included).
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Good morning all, I'd like to hear from anyone who knows about title splitting concerning commercial properties that has residential on top. If an investor bought a freehold commercial unit with a flat then decided to sell each unit separately how you deal the title on the flat? I believe there are few options on how you deal with unit depending on whether you want to keep the freehold or not. In this scenario it would be if you want to sell all the units with the freeholds as well. The commercial unit would simply be sold as a freehold unit. Concerning the flat would you say it's best to create a lease then sell the lease and freehold separately? Of course I know a good solicitor will be needed to ensure the titles are prepared adequately. Just looking to hear from any here who may have knowledge and experience of this. Thanks
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Split residential/commercial property under LTD Company and living in premises This is a tricky one. My partner and I are looking at buying a three storey house in which the bottom floor is a commercial shop. Both need renovation and we would like to live there and possibly run a business, or rent out the commercial segment and live in the residential part. We know we need a commercial mortgage. My partner is in the higher tax bracket and would continue to work while I would complete renovations. My question's are if we buy under under a LTD company can we live in the property? Would we need to pay rent to the company for living there? And if so could that money be paid to the mortgage lender to offset the company's income earnings and therefore no tax needs to be deducted? Are we better to put it in our own names instead of company. Thanks in advance for any help. Jeremy
