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First time buyer
kevkan posted a topic in Newbie Advice & SupportHi everyone, I've been listening to Rob & Rob from the beginning of lockdown, nearly worked my way through all the podcasts :) I have been interested in property for many years but haven't purchased anything yet. I want to make the most of the stamp duty break and take the leap before march '21 My circumstances: I am a first time buyer so is my Fiance. We are planning on moving in together in 12-18 months. We would like to individually buy two properties now and live in them until we get married and then potentially move into one property and rent the other out. I was hoping to make the most of being first time buyers separately and buy two properties as individuals now. I know we may be able to obtain consent to let depending on the lender when we decide to move in together. What challenges do you see with this? is this the best thing to do? Are we better off waiting and buying one property to live and a BTL when we are ready to move in together? In the long-term we want to grow a portfolio and build up a substantial passive income. Your help and advice is much appreciated Thanks Kev
Furlough Mortgage Advice
london68164 posted a topic in Mortgage AdviceHi All,I'm just after a bit of advice really. My partner and I had reserved a new build prior to COVID using the HTB scheme and had a mortgage offer ready to go for exchange but the pandemic struck. The build was then stopped and completion window moved from initially Aug-Sep 20 to Jan-Feb 21. Unfortunately my partner has been furloughed and this mortgage offer has since expired. We therefore haven't exchanged and will be unable to do so without a mortgage offer. We are trying to arrange for another mortgage offer but despite being way under the possible affordability threshold of our mortgage (even taking into account my partner's furlough salary) our lender is insisting on a letter from their company to explicitly state that they will be returning to work after the furlough scheme ends in October. Apparently they are viewing the furlough scheme as a 'temporary employment' and therefore need evidence of that they will be bringing people back to work when the scheme finishes. The company is in events which has been very badly hit by the virus and have given very little indication as to whether they will bring back staff in October or start making redundancies. Apparently even if we were to reapply with another lender, they would also require this letter of confirmation. This is despite one salary able to cover the mortgage payments and even the possibility of putting down more than a 5% deposit. I am doubtful that my partner will be able to get this letter because the company doesn't appear to have made many decisions r.e. their staff and the furlough scheme as of yet and therefore without this we are currently unable to get a mortgage offer. Without this we are unable to exchange contracts. So the new build we have been waiting for over a year to be ready and which was delayed because of the virus, is now apparently in danger of falling through completely? Are there any lenders who are offering mortgages without requirement for this return to work letter?I wondered if anyone might be in a similar position and had any advice on how to proceed? Thanks for your help!
Hi everyone, I'm looking at the daunting task of buying my first home. Would anyone have recommendations for a good broker & solicitor? Property location: Leeds Many thanks. Thierry C
Hello, I'm keen to get started in property investing. Have a 5 year plan to gain £2000 net rental income a month. From my research I won't be able to get a HMO mortgage without a minimum of 6 months as a BTL landlord. So would it be correct for me to get a low cost BTL that generates positive cash flow then get a HMO property later. Have little saving and £25k salary, whats everyone's ideas on raising a deposit using 0% interest credit card? Also parents have 1 rental property with no debt attached to it and would like to invest in another property, how can i structure the property so that both of us can grow our portfolio? Keung
Hi everyone, I've been a bit quiet on the forum recently as I thought buying a property was a long way off and I've been focusing on work. However, the other night I came across a property while browsing RM, which needs a hell of a lot of work, but seems like it could be the perfect one for me and my partner to get ourselves onto the property ladder (albeit a bit sooner than we'd expected), to make a nice home for ourselves and to gain some equity. I've attached the current plans and what I'd one day, perhaps next year with a bit more saving like to do to it below. In essence, I'd remove the old single storey extension to the rear, replace it with a 2 storey extension and split the house into two properties, by adding a dividing wall down the middle, a new double porch/2 new entrances to the front and new staircases. Downstairs would consistent of a porch, living room and kitchen/dinner, upstairs, 2 bed rooms, a bathroom and cupboard. I could add an additional driveway to the front and divide the garden in two also. The house is on for 140k, I believe we could refurb, split and extend it for 60-70k (with a lot of our own graft and favours called in), and be left with two properties worth around 130k each. We'd either sell one and keep the other, or remortgage both and rent one or eventually both out. However, not only do I have no clue about how you'd go about splitting a home into two or evaluating such a project, but we're also first time buyers. We have 30k as a deposit in our LISA's and about 25k in cash. I have a good income, around 40k pa, but my partner is about to leave her current job to spend a year retraining as a teacher. However, on the plus side, I'm a plasterer by trade, have friends in other trades and know a few good builders for guidance. I recon I could get a mortgage in both our names based on just my own income and with our decent 20-25%% deposit. I recon planning would be okay to gain, as the property isn't overlooked/overlooking anyone else and there's an existing structure already in place. Also, we'd be happy to spend a year gaining the relevant permissions while we saved, researched and evaluated our options anyway. Worse case scenario, we'd just refurb and make it into a 3 bed house. Any advice on where to start, what we need to do, whether this is a good idea or too soon would be amazing. We're kind of jumping in at the deep end with this. My thoughts were to do lots of research on the area/property prices there, book a viewing, speak to the council about their planning rules, find out about building regs, seek the advice of a builder I know who does a lot of extensions, revisit the property with a builder to check the place and then make an offer. In the meantime, to have seeked a mortgage in principle through a broker for my unusual situation of being a CIS subcontractor. Have I missed anything? Do you have any other thoughts what so ever? Any problems you can forsee? Do you think it's a good idea for a FTB or too much too soon? Thanks a lot, Joe
First time buyer BTL options and structuring
jshepp posted a topic in Newbie Advice & SupportHi Im new to the forum, and have spent some time looking through the various pages, as some are old and considering recent tax changes I would appreciate some direction to the most up-to-date and comprehensive resources/pages/threads to address my particular query as well as any direct advice anyone has? About me: My partner and I currently live in Australia and have done for the last three years, where I have been working as a Physiotherapist in regional australia to take advantage of better pay, low cost of living etc. We will be moving back to england in 2019. We intend to begin investing in residential property. Until recently our plan was actually to start out investing in Australia until changes to my visa made that a no go. As such we have already done a lot of research into property investment, however from a financial structuring perspective everything we have learnt so far is about investing in Australia. I am looking for advice as to the best financial structure to facilitate a long term residential property portfolio in england so we can hit the ground running when we return. As of 2019: My partner and I will be 26, we will be living in england, myself working as a Physiotherapist and my partner will be commencing a paid Masters I will be earning £28-35k pa and my partner will be classified as a student but will earn £20k pa for two years We will be completely debt free, aside from student loan we will have £60k total savings we intend to utilise £30k to begin investing in residential property we will be renting, we do not intend to own our home, and do not forsee doing so in the near future and we currently own no property we intend to invest in positive cashflow properties, circa £100k and hold these properties longterm In Australia we had planned to utilise a trust structure, and own property through this rather than in our own name we do not intend to pay ourselves dividends from any rental profit until such time where our portfolio generates surplus income above our investing needs we intend to reinvest profits into further residential property acquisitions our priority is maximising our ability to expand our portfolio rather than minimise tax Queries: what is the best financial structure to employ to execute this plan in the UK? as we do not own any property, will this pose a problem/how can this be negotiated as my partner will be classified a student, is there any tax benefits we could utilise during this time that would be worthwhile Appreciate this is a very lengthy post however from previous forums I have been on it seems the more info provided the better. I am not expecting direct answers to my queries just looking for pointers in the right direction for resources that will assist me. I welcome opinions anyone has on the above plan and would really appreciate any guidance on these issues. Cheers
Hi folks, help on going forward
JamieB posted a topic in Introduce yourselfHi everyone, I'm Tristan from Beds, looking to take the plunge and invest in a BTL finally. Up until now I've admittedly been a bit of lurker, absorbing as much content as I can from the Hub, a big thanks to the Rob's for the podcasts, they've been a great help! I was hoping if someone might be able to provide a bit of advice on the best way forward for me, I am a first time buyer, currently employed. My father has already established a steady portfolio, including several flats recently bought within a limited company which I am also a director of, his portfolio also consist of several properties in his own name, some unencumbered. I'm looking to invest in the East M and target properties circa 100k, ideally refurb and eventually refinance. I'm looking at a range of finance options to hopefully recycle some of my deposit and refurb costs when it comes to refinancing, What I'm stumbling on is whether I'd be better of buying within the ltd co. or personally, taking into account the SDLT rules and the finance that's available. My father has said he can be a guarantor buying in my own name where I would be exempt from SDLT, would any experienced investors be able to advice on the best way forward here? Many thanks.