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  1. I am thinking of taking 20% Equity loan, 10% Deposit and 70% mortgage to purchase the property of 510K in London. I came to the choice between 2 years deal or 5 years deal now. I would like to clear the equity loan asap and I will make extra cash to pay off some of the equity loan in a few years. With 2 years deal, I will pay off all the equity loan with cash contribution and incorporating the rest into remortgage at the end of 2 years. In doing so, I can possibly pay off the loan before the property price goes up too high. However there is a risk of interest rate increase in coming years so taking 5 years deal now with relatively low interest rate could be an option too. With 5 years deal, I can secure the good-ish interest rate and I can make 10% equity loan repayment at some point within a few years. After 5 years I will take the other half of 10% equity loan into remortgage. The risk here is that in 5 years time, if the property price goes up the repayment portion of equity loan could increase as well. My question here is whether I focus on equity loan repayment asap (with the fear of property price goes up) or securing the good interest rate product for 5 years(with the risk of interest rate going up). Thanks for your advice!!
  2. While it seems common place to refinance properties owned in an SPV and use the proceeds to fund the deposit on further properties, what options are there to access that equity if one doesn't want to grow there property portfolio any further..? Since equity released by refinancing is not a profit, I imagine it is therefore impossible to extract the equity through dividends - one would instead have to sell a property and record a profit?? This seems like a significant drawback to me compared to owning property in my own name, considering that I don't intend to just forever buy more and more property... (but might want to buy enough to otherwise make an SPV worthwhile..) Looking forward to hearing what people have to say on this. Thanks in advance!
  3. Hey Can anyone recommend a software program that will allow me to me to measure how my business and property portfolio is doing? I'd really like it to measure both things in one program (general business performance, and portfolio performance) and it's vital that it will allow me to forecast/test the effect that potential purchases would have. I'd love to - Be able to test what happens to my business cashflow if I buy/remortgage specific properties at a specific points in the year. Compare the performance of two possible purchases to see which is likely to perform best for me in 5/10 year's time Keep track of the overall health of my investments As a bonus, it would also be great to be able to do basic accounting things like create Profit/Loss statements etc Is there a program / app / web-service that will allow me to do all of these things? I could probably fashion something myself in excel, but it'll likely take days of work to build and test and there are better uses of time if it already exists Any pointers gratefully received!
  4. Hi, My girlfriend bought a flat through builder scheme 10 years ago, where the builder owns 25% shared equity. It was an no interest 10 year loan incentive. My partner is not working and so she can't remortgage the property to pay off shared equity. On the other side I have enough cash and that could buy that shared equity, but I have 2 questions: A ) How much does it cost to transfer the equity to my name? B ) I plan to buy my first home next year on mortgage and as I know, one does not pay stamp duty if it is my first and main home. Would this shared equity ownership affect me paying stamp duty or mortgage next year?
  5. 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?
  6. Hi all, My sister current has a property with a decent amount of equity in it and is considering passing some of that equity over to me to start my Property portfolio. Is the equity taken out locked for the original mortgage/home owner or can it be passed as cash to someone else, i.e myself? If its the former, I assume the only way for me to access that equity and start my Property portfolio would be to apply for a joint mortgage with my sister. Any help would be much appreciated!
  7. My partner had a £80k property bought out right for him in his name. We are both earning decent enough money in order to have a mortgage of around £250k however, have very little savings for a deposit. We have £0 dept. I understand this is a fortunate position to be in but would like to make more of the position we’re in - I just do not understand how best to do it. 1. Could I qualify for “first time buyer” if his name is on said potential new mortgage? 2. Without selling the £80k property but renting it out (1 bed flat) - Could the current property equity be used for deposit? If so how? We are too young for equity release I believe? 3. Is it a foolish time to be thinking about buying with the current epidemic or will house prices falling be favourable for buying and not selling? 4. I’ve had a “rent to buy” mortgage suggested to us but it seems rather complicated - is this worth it? What if the tenants don’t pay the rent? 4. What would you advise in my position?
  8. Hi PropertyHubbers, I'm new here and wanted to say hi. A short summary of my situation: I'm currently living abroad and own a property on the outskirts of London. Thinking of moving back to London in the summer and weighing up possible strategies that would enable me to work part-time and focus on property investment/trading the rest of the time. There seems to be a lot of knowledgable members on here and I would be keen to listen to any advice that might help. Initially, I was thinking about focusing my time on flipping property and then reinvesting profit into BTLs (I appreciate this is harder than I've just made it sound!). Given everything that's happing with COVID-19 though, I'm wondering if I'm better continuing to work full-time and investing in property to hold onto for the medium term before trying to add value and sell. Another couple of things one of you may be able to offer advice on: 1) I'm still trying to get my head around tax implications with owning a property already and whether it's worth setting up a ltd company? 2) The property I own is mortgage free. Would I have difficulty releasing the equity it if I was working part-time? Thanks for your time guys. If you have any thoughts, experience or suggestions, I'd love to hear them. Stay safe. Kris
  9. Hey all, Can anyone clarify how Yield, Equity & ROI should be calculated when following a Buy, Refurbish, Refinance strategy? Most online resources only discuss these in terms of purchasing a property and letting it out / selling it, rather than refinancing it. I want to make sure my metrics are comparable with everyone else's! Theoretical BRR Scenario: I buy a property for £120k using a bridging loan and a deposit of £48k I spend 6 months renovating it, with the finance costs & renovation totaling £25k I then refinance onto a BTL mortgage with the property valued by the mortgage co at £180k and a deposit of £72k (mortgage £108k) This releases £35k once the original deposit (£48k) & costs (£25k) are deducted The net rental income of the property is £4.5k pa Yield = Net profit / Cost But is this the original purchase cost (£120k) or the valuation (£180k) 3.75% or 2.5% ? Equity = The market value of a property - the debts secured against it I'm pretty sure I know the answer to this, but confirm that 'debts' does not include debts to me (ie. the £25k) It's simply £180k value - £108k mortgage = £72k ROI =Annual profit generated / money invested Am I right in calculating it like this: 4.5 / ( 48 + 25 + (72-48)) 4.5 / 97 = 4.64% Thanks for the help, it's much appreciated!
  10. My mother owns her own home outright which is worth about 110K. We are looking to invest in BTL together and have 60K capital between us; how do we go about releasing the equity in my mother's home so we can use the capital to cash-purchase a BTL property? Any advice greatly appreciated!
  11. Hi all, My name is Cosmin and I start the journey of investing by buying a small 2 bedrooms house in Leamington Spa (50 m2). It was the house I was renting so I thought it was a good idea to have it until I'm saving enough to move to a bigger house (the one where you raise your children and live for the rest of your life). At the moment the house can accept some big upgrades: heating / bathroom / an extension (around 10 m2 ground level only ) I have 10% equity at the moment. I know I need to have around 25% of it to be able to move the mortgage to BTL. What is the best way to increase the equity ? Option 1: do only the upgrades and hope the new price is enough to increase the equity around 25% - it won't jeopardize my saving plan for the bigger house. Option 2: do some of them (first 2) and pay extra for the mortgage (5-10% each year) - will put me back a couple of years for the bigger house. Thanks for your thoughts.
  12. Hey Fellow Hubbers! So my property in Sheffield is coming up for remortgage now and I am trying to decide whether a 2yr or 5yr is best. This is my first property and the first remortgage, so just interested in what people normally do. I know it depends on your goals, and for me, it’s maximise cashflow and pull out as much equity as possible to reinvest. I do like the idea of knowing what I will pay for the next 5 years but as I am only at the beginning of my property journey feel I need to be a bit more aggressive and recycle my deposit to get that snowballing rolling. So my thoughts are that rates will not go up too much over the next 2 years (according to economists but who knows with Brexit yawn), so I could do a 2 year and then a 5 year to lock in a lowish rate. I could also potentially just take a 5 year and then get a further advance or second charge mortgage to run alongside it if there is substantial equity. The 2 year would improve my monthly cash flow by about £30. The other thing is those pesky arrangement fees, sure they give you better cash flow the higher they are but your mortgage ends up getting bigger and bigger, what are your thoughts on this? I know that it may look cheaper paying the arrangement fee, but you will be paying interest on that fee for the life of the mortgage right! Any advice would be greatly appreciated! If you need any other info to give me a better answer, please ask  Cheers, Alex
  13. Hi, any insights would be much appreciated: I own a house jointly with a friend, the fixed term is due to end at the end of October. My friend will be buying me out and I should have about 22k My partner owns a house with her friend, which is currently for sale, she should get around 120k We are looking to buy a place together (~290), with 90% ltv, however we need to put an offer in asap (this week) Is there anyway we could access our properties equity now (given that they are for sale) to use as a deposit for the new purchase? We would only need around 45k total released (deposit Also we wouldn't want to pay the higher stamp duty rate of 8% for 2nd property ownership. I know this is a long shot, but didnt know if there is some financial wizardry possible. Thanks very much in advance
  14. Hello Everyone, I am the midst of my strategy formation before jumping into my next property venture. I had a question regarding the finer details of refinancing options... I imagine the general advice may be "speak to your tax accountant / mortage broker", which ultimately is the plan - I'm just trying to get vaguely informed before I enter that discussion. I am aware that this has turned into a bit of a lengthy post... any help or advice would be fantastic! Quick Background: I currently live in a 2 bed flat which I have renovated and own outright. The second room is currently let out. I've recently been made redundant (having worked within construction management) and am now looking to focus on another property project in the coming months. I hold sufficient cash to purchase a second small renovation project outright. My Aim: Long term - Net rental income of £2700/m in 4 years time, whilst also holding access to funds to continue flipping projects as and when. Strategy: I am currently split between two directions for my strategy: Option 1 - Initially pursue Buy-Renovate-Sell projects in order to grow the initial cash pot, moving into Buy-Renovate-Refinance by end of year 2. Option 2 - Pursue BRR from the get-go, refinancing as soon as possible and recycling deposits. My Queries: 1. I am keen to explore the potential of remortgaging my current property (which i live in) to release funds for future projects. Does anyone have experience of doing this without a salary to satisfy the lender? If so, I would be interested to hear how this affected the terms of the mortgage? 2. Similarly, how does a lack of income affect the ability to remortgage a B2L? Also, I have heard anecdotally that it banks require 6 months of proven rental income before discussing remortgaging terms on a property - is this set in stone? Anyone aware of a way to refinance over a shorter period? If this is the deal (and unless I have missed something), my strategy will certainly be pushed towards the first option as I will not be hampered by the long waiting periods between completed renovation and refinancing... 3. I have also heard anecdotally that when banks consider salaries, they require proof of income for over 6 months? Is this the same when you take an income from a LTD company? The reason I ask is as follows: Assume that I can not release any equity since I do not have a current salary. Would a workable strategy be: 1. Over the first year, initially complete B2S projects within a LTD company structure. 2. after 6 months (?), use this proven income from the LTD co. to release equity on current properties? Would be interested to hear if anyone has done this? Or equally, if anyone can shoot this down as a terrible idea! Thanks for taking the time to read this and I look forward to hearing from you! Will
  15. Hi, I'm new to property investing and would appreciate some advice, accidentally fell into property 9 years ago not knowing anything, I have two joint mortgages (1 btl and 1 residential which my mum resides in, mortgage term ends in 6years). Sold another property in 2013 (didn't reinvest). I am currently renting where I live now in London (2 bed maisonette) and in Sept would renew the rental contract, I approached the managing agent to ask if the landlord would be interested in selling or proposed a rent to buy option over the next 1-2 years. The next day the agent called and came over to do a valuation of the property, so it would seem the landlord is interested in selling. I'm currently waiting for the valuation (agent came this evening). A property Sold on this road in Feb for 350k, it was much more modernised, this one needs some work. The Landlady bought in 1999 for 70k, she has a current court dispute with my neighbour prior to me moving in last year, so I think she would be keen to sell, especially as her response was so quick. (I have no issues with said neighbour). So my situation is that I don't yet have a deposit, but would definitely like to buy this place. My aim is to buy BMV and make a 3rd bedroom, new kitchen and new bathroom, there is also scope for an extension at the back. I would like to reside here as my children are happy here, but if necessary I would let it (current rental 1500 for 3 bed). The options I have considered are: 1) remortgage my property with my mum to release equity (159,000) and use what I need as deposit as well as to invest in buy to sell out of London in ltd company 2) My aunt has sold her SE London property a few months ago and has money in the bank (unknown amount gaining little interest), do I approach her to invest so I can buy? And how do I get all the money back out of the property once revalued, so she gets her ROI and I can continue to invest? I'd still be remortgage above property with my mum. 3) find an investor/s to buy property in cash BMV? Then mortgage it to get ROI?? (Is that what I would need to do?) 4) rent to buy contract if I am unable to get the deposit, remortgage home with my mum and invest in order to raise deposit in the next year or 2. Am I on the right track on my thinking? Which strategy is the most viable? Are there other options you would decided to do? Just to add I'm buying on my own, I am self employed and have 2 years of accounts. I'm reading as much as I can, and have listened to all rob and rob podcasts, and others and I am going to meet ups. I want to invest full time and leave my day job. The getting started bit is overwhelming. Any advice would be much appreciated. Thanks, Carmelle
  16. Hi all, My husband and I are looking to remortgage at the end of June when our two-year fixed term runs out. We also want to take equity out of the house (roughly £40k) to buy our first buy to let property. Is it better (i.e cheaper and easier) to take out the equity at the same time of remortgaging or to do it later? Does the timing make a difference in how much we'll have to pay back? Your thoughts appreciated. Thanks
  17. Hi, I won't pretend this is an easy enquiry, and I suspect I'll be needing some tax/mortgage advise from a professional, so if anybody knows a good one in the Scottish Central Belt (ideally Glasgow) area, it'd be much appreciated. I currently have a property I let with my brother (£80k at 75% LTV). I currently have a property I live in with my wife (£98k with 60% LTV remaining). I want to refinance the property I live in as BTL and remove equity up to 75% LTV. I want to take this money and combine it with other money to buy a new residential property with my wife. I want to let my old house with my brother and under both our names. Does anybody have experience or knowledge with a complex transaction like this, or a good experience of dealing with somebody who does? Thanks, Jamie
  18. Hi everyone, I was hoping someone could give me some pointers in regard to equity release. I don't have a deposit to get started on my quest for financial independence through property. My mum owns her home with no mortgage and is considering either transferring it to my brother and I as we will inherit it in the future anyway and this means i could mortgage against it for a deposit; or would it be better for her to get a mortgage herself and loan me the money ( I pay the mortgage back for her). I know there will be Stamp Duty implications with option one but option 2 relies on my mum who is 68, being able to get a mortgage. Anyone got any advice or experience in this area please?
  19. Hi all, I have my own house and I want to release some equity to do my first BTL. I just wanted some advice as to what order do I do things. I know I need to apply for further lending, Find a BTL mortgage, Find a property. What order do people usually do things in? I don't want to apply for further lending and then have to pay a higher repayment for the mortgage on my residential home until I can put it on deposit. I don't want to put an offer in without any money at all! Any advice? Dafydd
  20. Hi Folks, So for those of you who are keeping up with me, you'll know I'm searching all ways of building up my capital to start my own portfolio, so here's my next potential scheme, that I'd like your advice on please! So me and my partner are looking at getting our first home in the next 8 months, looking to get settled and secure before investing. The original plan was to find a nice house that's ready to live in, however! Now I'm learning more and more about property, my thoughts are as follows; could we, buy a BMV home, refurbish it, settle in for a year maybe two then address any further refurbishments that might need doing, then sell on for a profit. I don't know how long we'd have to wait for the property to raise in equity? The general thought is that, If we can make a decent profit out of something we are doing already, this will get us to our starting capital goal faster! Pleas let me know your thoughts and if there's any potentials gains I've missed. Looking forward to the replies! Thanks, Brian.
  21. Hi, I'm wanting to release the equity in my residential property in order to buy and flip another property and am wondering what my options are and what would be the quickest route to getting my hands on the cash! My residential property is currently unmortgaged and worth around £280k. I also have around £100k in cash. I'd be hoping to get around 75% of the value of the property, so let's say £200k. I'm planning on speaking to a broker/adviser but was hoping to get my head around the options first. Any help would be appreciated. Thanks, Mark
  22. Hi All, I've got a quick and (at the moment) largely hypothetical question. At some stage in the future, my Mum has suggested that she'd like to change ownership of her home into the names of her children (me and my brother). It avoids any challenges when the time comes, etc. So that's that. My question then is: Would the banks accept a request for equity release given that there is a non-paying tenant, or even take that property into account when mortgaging against other properties? It's unlikely it could count as BTL (without a payment of sorts anyway), but I'm curious to know if there are any possible ways to use the value there to your advantage. To be clear, I think the idea of ramming a load of debt onto your elderly mother's house is a bad one in case of difficulty, but small mortgages to release equity for auction flips, etc would be a more financially efficient equivalent of a bridging loan? Or am I way off track here? Just curious - thanks, Jamie
  23. Hi everyone!! I have recently started working at a property/investment/finance company and am eager to share my knowledge on the these topics, join conversations and learn some new stuff from other members!! Hope to contribute a bit more across the forum in the future :-)
  24. Hi, I'm a first time buyer. I'm looking for a property below market value I can add some value to through rennovation, nothing serious. I've seen a property which is around 30% below market value. (Confirmed prices with sales of 2 properties next to it). I believe I can rennovate it with 10% of the total value once complete. Meaning I can add 20% equity without too much trouble. I'm sure there are many many reasons why this is difficult to do, but if theres any possibility of how this can be done I'd be grateful to know it. Heres what I'd like to do. Buy the property with a residentual mortgage. Do the works to the property with my own cash money, or loan. I can do either. Remortgage the property with a BTL mortgage after around 3-6 Months but take some equity out of the property on top. Also I do not own another residentual property. I can see the main obstacles being: 1. I don't own another property 2. Trying to take equity out of the house at this stage and also reduce the LTV of the property. Any advice welcome. Thanks in advance. Jay
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