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  1. Hi everyone! I'm hopefully just a few months away from embarking on my property investment journey and wondered if anyone had an example investment business plan they would be willing to share? Also, are any straightforward finance courses you would recommend? Best wishes, Kris
  2. How are you guys buying by-to-let properties that need refurbing before it can achieve the expected rental income? When stress testing the deal, my broker will usually ask ‘in its current condition, what is the estimated rental income?’. If it needs a full refurb the answer would be nothing and so the lenders would refuse finance.
  3. Hi all, Shopping around for the best bridging deal, so far I've spoken to Charcol who I'd really trust as they're an established company. Interested in any other suggestions as obviously trying to get the best deal. Cheers!
  4. 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.....??
  5. Hi, We have a buy to let that has been performing relatively well and with the exception of a few bits here and there we have done nothing to the house since we purchased it 14 years ago. We have about 70 worth of equity in the house and the according to the building society we have the ability to draw out 24k based on ltv / rental income. Question is, do I re-mortgage and take the 10k out of the house for refurb via mortgage but obviously incur big interest cost over the remainder of the term (15 years), or do I use my own money or a personal loan (10k would cost me £700 in interest over 5 years) and still have the option to re-mortgage the house in the near future to capitalise on any buying / refurb opportunities that come available in the next 12-24 months . Obviously trying to map out the property cycle is hard at the moment - do I just undertake the refurb and accept the increase in rent for a few years and wait for an adjustment in the market to buy? Obviously re-mortgaging when the market is flying (now) is great as you can pull out more money, if the market crashed I maybe couldn't rely on pulling money out to invest elsewhere as obviously the value of mine would have gone down so I would miss the opportunity. So confusing!! Any help on the above or a different point of view would be great ! Thanks
  6. Hi I am based in an apartment block in London with around 30 flats. I am on the board of directors. We have a combination of leaseholders and I believe some flats own the freehold too. We wanted to enquire into taking out a large loan in order to complete some much needed building works. We would then figure out how much is needed to be paid back by each flat over as many years as possible. Does anyone know a company that specialises in loans of this nature please ? Thanks
  7. Greetings All, In the midst of planning my desired strategy I have come up with a curiosity - how do most property developers/landlords structure the financing for their own home? If you have enough capital, I suppose the optimal scenario is to buy a place in cash, but as most of us have limited capital, it is better to keep it 'working'.. I also don't want to be throwing money away on rent, so is the answer an interest only residential mortgage? Any tips, thoughts and opinions welcome. Thanks! Karl
  8. Hi All! I'm new to the forum and was looking for some advice on recommended insurers and covers. I'm planning on letting out a residential home to three tenants and want to ensure I have the correct level of cover and go with a trusted insurer. Any tips/ advice please? Thanks.
  9. Hello new on here! My name is Jack and I am Quantity Surveyor, I have worked for a private developer project managing there developments from acquiring the land to end sale but I am now looking to work independently with investors. This could be either hands off or hands on for the property investor and I am happy to work either directly for you to manage the project or even a joint venture if that is an option! If anyone is interested please do not hesitate to make contact with me.
  10. Hello, I hope everyone is keeping safe and keeping themselves healthy over this period. I am looking to raise finance for a property investment that I have secured and I was just about to purchase. I had an angel investor ready to finance the property purchase with me for 8% return. However, the angel investor has decided that he would rather put his money into the stock market...Anyway, this means that I have a cracking property deal that needs financing and I am offering a 10% interest rate on your money. If this is something you would be interested in doing or would like some more details then please either message me on here or give me a text on 07554232227. I can also be found on instagram at https://www.instagram.com/tjoinvestments/ Thanks
  11. Dear Hubbers, I am in need of guidance on specialist mortgages and risk - very grateful if you could take 5 mins to look at my 3x questions below. Situation Reserved an offplan city centre flat (reservation paid, no deposit paid, not exchanged contracts). B2L mortgage declined by three separate high street mortgage providers. Only 1 of 3 valuers actually conducted a survey. Reasons for rejection centred on: Development being 'too investor led; not enough owner-occupiers' Ground rent being greater than 0.1% of sales price, and Undisclosed issues with cladding Notes on the development: In 2017 the developer and lead contractor went into administration. New developer and builder brought in with strong track record. Previous developer provided a rent guarantee which turned off many lenders. No rent guarantee is provided by the current developer. Ground rent 0.14% of purchase price Cladding is Alsecco brick slip system Investor to owner occupier ratio is 60:40 Mortgage brokers have advised me: High street lenders have low risk appetite and their valuers are likely to have ruled out this development back in 2017 due to the rent guarantee and also that it is an investor led project. Their evaluations are yet to have been updated. The valuers' feedback is likely relative generic e.g. cladding. Specialist mortgage lenders are likely to consider the development and will charge higher fees (extra c£1,500) and higher interest ( extra c1.4%pa). Individual investors would use a specialist lender if they believed a development was purchased at discount and has strong chance of capital growth - thus they are willing to pay higher mortgage costs in order to realise that discount and growth. Developer / my solicitor unable to provide details of mortgage providers for other investors in the development. I can't help but sense that if I purchase this property I am shooting myself in the foot: I have to pay a lot more for the specialist mortgage; run the risk of having to get another expensive remortgage; and the risk of struggling to sell the property as I'm limited to cash buyers or investors with specialist mortgages. Why would I purchase it and pay more mortgage costs when I could just purchase a resale property in the knowledge that I can get a high street mortgage at lower rate and also have lower risks of remortgage/resale? Both the resale and this offplan property are subject to the same house price growth and rental growth rates of that given area. ...And yet individual investors must be using specialist mortgages and seeing financial success - the property investment firms cannot exist solely on cash buyers. What am I missing? Where do I go from here? 1. Continue with purchase + use specialist mortgage lender + risk remortgage and resale. 2. Cancel purchase + look for another offplan 3. Cancel purchase + buy a resale Questions: 1. What will the mortgage availability be like at remortgage, say after 2 years? I assume I would be limited to the same specialist mortgages as I still have the same constraints: > 0.1% ground rent, high number of investors and cladding. And therefore accept higher interest rates. 2. Is my resale market, in say 5-8 years, much smaller if I have taken a specialist mortgage? I assume, as the same mortgage constraints will stand in 5-8 years, that my only resale market will be investors: cash buyers or investors with specialist mortgages. As a result, I will not be able to demand a higher price for the unit, which seems a pretty illogical exit strategy. 3. Why would I use a specialist mortgage, as an individual investor not under a limited company, if it will cost me more and I run the risk of not getting a remortgage or resale? The only rationale I have for doing this would be if I was confident that the unit was purchased at discount and that it was worth paying higher costs to be able to realise this discount in a future sale. However I'd still have the ground rent and cladding issues - if they are indeed the real issues or just generic issues given. A lot of detail there - thank you for bearing with. Look forward to hearing your advice.
  12. Hey all! I'm looking to purchase our first property with bridging loan (note we have 3 BTL already but they have all been through BTL mortgages) Anyways I'm looking for recommendations for who you have used before and rough costs? I've seen from 0.5 to 1% per month but that's a massive difference. The property value is 100k and I'll buy it for 100k hopefully, spend 15k on it so I need 120k in total with fees and stamp duty. If ideally like to borrow 60 to 70k over 6 months. Many thanks!
  13. 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
  14. Hi all, I’m just in the process of buying a property that I want convert from a studio to a proper 1 bed flat. I m planning on following the Buy Refurbish Refinance Rent strategy as it fits quiet well for this property and plan. I’ve come across precise mortgages Refurbish Buy to Let product and it looks prefect for this application, but I’d love to hear if anyone has any experience using this type of product before and if so, how was the process , was there any aspects to be aware of that aren’t so obvious setting out or any general pros’ and cons? Any pointers of general advise would be greatly appreciated! Cheers.
  15. Is it possible for nonresidents to secure finance in LTD structures without having personal guarantees witnessed and signed? After 10 years of procrastinating on finally going to spend some of my rental income and travel Asia, however this presents a problem when trying to maintain growth as the funding partner of JV SPV for flips – as: anyone with 25%+ shareholding is required to have a personal guarantee witnessed and signed power of attorney not accepted by some lenders, preventing someone I authorise to fulfil this role even if I am a creditor of the company, I will be brought back into the picture when answering the 'source of funds' question on the finance application unless I want to travel back to the UK to have personal guarantees witnessed and signed, I need to find an authorised person abroad to do this and then send wet ink copies back which could hold things up by weeks or months when its inevitably lost in the post. I'll be gone for longer than 6 months hence non-resident.
  16. Hello Hubbers! Would appreciate any ideas to assist in overcoming this hurdle. I have a plot of land that I have secured full planning permission on for 2 houses (a two bed and a four bed). The build cost will be around 400K and as they are custom builds they will take between 12 and 14 months to complete (including contingency). This is my first development and as such I am struggling to find ways to generate the cash required. Most lenders can only lend up to 12 months or only lend to people who are experienced developers. Thank you in advance for any ideas put forward. Best, William
  17. Evening all, I have recently had an offer accepted on a Flat, with an unusual condition attached. This is the situation: Vendor owns all four flats in the building (and the Freehold). He has put all four flats on the market at the same time. The condition of sale for the flat I am trying to buy (FFF) is that he will only sell it if he can sell (at least) two of his flats, because he needs to raise a certain amount of capital to inject into his (unrelated) business. I do not know how much money he needs to raise, but i understand he has a threshold of two flats because of the CGT he will be liable for. So far there has been little interest in the other flats, so I am worried that my deal may fall through. I am ready to move on the FFF (75% Mortgage DIP and deposit funds etc.) now. Q1: What are your initial thoughts? To add to the mix, I would be interested in purchasing the TFF (in addition to the FFF), but I do not currently have the funds in place. I am planning to re-finance two of my existing properties in Sep to release equity for another purchase. Q2: Can anyone think of a creative option deal that might work for both me and the vendor, which might incorporate buying one flat now, and another in the Autumn? Appreciate any and all advice, thanks!
  18. Hey guys, I'm looking to do my first flip up in Leeds on a property between the £80k - £100k mark. I have approx £25k cash for deposit, fees and renovation but I'm just a bit unsure which route to go down re: financing. I want to try and get this flip down as quick as possible (within 2/3 months) so I'm not sure if this will affect how I finance the flip. Bearing the above in mind is there a clear route to go (mortgage or bridging loan)? Would really appreciate any advice anyone experienced can give on this! I know lenders don't like loaning to people flipping, but I've read you can work round this. I'm new to this and don't want to make any big mistakes! Thanks so much guys!
  19. Hello All, I am considering getting a bridging loan for a flip project. I am interested to hear from people who have used bridging finance for flips. Who was your lender and what was offered in the product? A broker has mentioned a product that offers finance on properties £100k+ at 0.8% a month with a 1% fee, 70% loan to value, 100% refurb cost up to a year I think. I am also wondering if anyone has heard of Think Property Finance and has used them to get short term property finance? They have a similar product but with a 75% loan to value. It would be great to find a suitable lender that can be approached direct as broker fees can add up. Thanks, Jo
  20. Hey Hubbers, What are your thoughts on seeing a broker in person compared to one online - Having found various sites out there during my research? I'm teetering on the edge of jumping in and getting started and will obviously need the advice of a broker to see what's do-able. Do you think it's best to go see one face to face, or is the online market just as good these days as I'm guessing any good independent broker will have access to the products that are out there where ever they are. I must admit I would prefer "seeing" someone as over time you'll get to know each other and build that network, but then that may mean I'll miss out on better online offers which could be cheaper? Like I say still a nervous-newbie here, and feel I may just have answered my own question, but any advice from those further down the path would be great Thanks in advance PAUL
  21. Hello, I have recently inherited a cottage in West Wittering by the sea. My brother and I want to turn it in to a holiday let cottage. We will need about 150K to do the works. We could use bridging finance and then roll in to a mortgage. However, I’d really like to try going down private finance route - ie offer a fixed return to friends, family or other. Does anyone have experience of this and possibly the type of investment prospectus template I could use? Many thanks, harry
  22. Hello, Thanks for the visit. I am soon to complete on a 60,000 flat purchase for cash. I am not currently working (so no job income to show). Small income from 2 other rental properties (1 with mortgage, 1 without). I was advised I wouldn't be able to get a mortgage without first having 1 year of rental history for the property. My idea was to try and get 50-70% mortgage (repayment OR interest), and use this invest elsewhere (either Peer2Peer or put towards another flat purchase). Is this possible without a job income to show lenders? Interested to hear thoughts and experiences on whether this is feasible or even a good/bad idea! Thanks, Steve
  23. Hi There, Just happened across this forum when doing some research into an upcoming development I am planning, and looks like it is full of a wealth of infomation. A little about me, I currently have 2 BTL's which were bought as long term invesments, and in the past year completed a renovation and re-sell with F-I-L who has a reasonable sized portfolio. My job see's me overseas a lot, which I im now tired with so looking to persue some projects that will generate shorter term capital gain, with the view to being able to move away from my full time job. The current project I am planning with my father in law, is a commercial (office building) to 5 residential units, which is quite a bit different to anything we have done previously so will be looking for more information regarding the best way to finance and some information regarding some renovation techniques. I would also be interested in hearing from any members local to me for networking. Regards, David
  24. Hi everyone, I am looking for a financial adviser in the Croydon/South London area. This would be for general financial advice. I have four properties that I rent and I'm looking to move forward with this but would like to speak to someone about tax/mortgage other finance issues. If you have used a good adviser, please let me have their details. Thanks Belinda
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