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Hi sorry am newbie on here so please put this post where it needs to be if its in the wrong place thanks. OK, so I will just jump straight in, so the initial small start-up of our LTD company was done back in September 2017 as a JV between Father and 2 sons we will call this company "X", I am one of the sons that came up with the idea of creating a Property Co between us and sourced the first property and I have been doing all the work on the property myself since to begining. My father supply's the funding via a bussiness loan from his sole trader bussiness, my brother does the accounting and set up the company etc. My brother and I jointly loaned the company 65K (this money was borrowed so needs to be paid back to someone else intrest free) on start-up basically to buy the property and pay fees for purchase. The agreement is we take a equal shares 1/3 each of the final profit of the company. As well as I will draw a small wage weekly from the Co X's bussiness account, I am set up as a PAYE on the books (£185 a week after tax). We also have a written agreement that I will be paid an extra £215 a week (after tax) deferred until work is finished on the property this will be at the END of the project works as a cost/expence to Co X in the most tax efficient way. My fathers bussiness loan (interest free) will pay for running costs and materials of the project. Unfortunatly time has drag on, due to severe illness and Covid on my part the job is only nearing completion now. I have been working the whole time but at a serious reduced rate for the last 2 years. Finally 2 major operations later I am on the mend and back to my normal self and finishing the project quickly now. I have been paid £48100 in total via the £185 a week method so far and we have discussed and factored this illness into the project and came up with a fair payment for the work completed which is £38915 after tax either via PAYE or possibly another tax efficient method maybe discussed on here if you guys can help with that? Finaly we get to the profit part (refinancing part maybe not classified as profit yet for tax purposes). We have decided to refinance the property and rent it out. Let me give you some figures first before we get into were we go now. Joint Directors Loan in £65,000 in. Bussiness to bussiness loan from Fathers sole trade company £90,000 in. Total costs so far without my final payment of £38915 = £155,000 Re finance Value of property £320,000 at 25% LTV = £240,000 out After refinancing minus costs + my £38915 payment = £46,085 surplus for dividends or other. Monthly Rental Value £1100 after costs £900 to Co X as profits. The refinance has not taken place yet so Co X is still running at a loss right now. OK so this is what we want to do now. My father and brother wish to cash out their profit via dividends and keep the the house rented for as long as possible we can all draw down £300 a month dividends going forward as per shares allocated. They are no longer interested in property investment and have other business concerns going forward. I would like to start-up by myself a new group of companies though if possible/feasible. The idea is to start-up a new holding company "Co H" with 2 subsidiary Co's "Co 1 and Co 2" one for buying/renting properties and one for refurbing/building contract work. Main questions are: 1) If my holding Co "Co H" held/bought my 1/3 shares in Co X, would I be able to move my part of the refinance/dividend tax free into Co H? 2) If so, do I need to form Co H before we refinance the property in Co X to be more cost and tax efficient going forward for Co H? 3) If I formed a separated LTD company (SPV) whats the best way to move my funds from Co X into the SPV for future projects, I do not wish to take the Co X's money for my own use, I want to invest further whats the best way forward? 4) Can Co 2 (the building company set up in a group) or another new SPV invoice Co X for my final payment of £38915 as building labour (because thats what it is) and then invest that money into further projects in a more tax efficient way? You may have a completely different way of doing this, if so please share, as any help would be Golden! Please note I am not trying to avoid Tax but to be Tax efficient. If you think I am please point it out where as I do not want to fall into any problems in the future. Thanks for kindly reading this far if you managed it! Thanks in advance for any help or advice. Christopher

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!

Hi all, Just looking for a bit of advice regarding BTL investments. I am trying to calculate the amount of money i would leave in the deal until such time that I can refinance and try to pull some of my money back out. I am hoping to buy 3 or 4 properties soon but I feel that I would stuck after that as all my cash will then be tied up. Firstly.. Is it realistic to expect to pull all or most of your initial investment out of the deal? I am struggling to see how this could be achieved even with the properties that need refurbishment. I have found that the refinance only covers the original loan and part of the refurb costs. Is there an 'acceptable' percentage to leave in a deal? Secondly... Some people I have spoken to have said you can refinance after 6 months and 1 day, some people have advised against this? Is there any implications on my credit score if I refinance after only 6 months? What are the down sides regarding this? Any help or advice would be greatly appreciated, Steve C

Hi folks, I'm looking for some guidance from some experienced property developers please. The Buy Refurbish Refinance (BRR) model is an appealing one because of the capital recycling, however, after SDLT, refurb costs and fees etc. from your prior projects, what is a realistic percentage of your capital that you have been able recycle? Thanks!

Hi all and happy new year! Looking over the BRR strategy.....a quick question for anyone who might know the answer. How quickly can you refinance and pull your initial investment back out? If i buy a house in Jan, with a BTL mortgage, complete the refurb by March ready to rent out...can I re-finance that soon or do you need to wait out the initial fixed period of say 2 years? I know you probably don't need to wait til the end of the fixed period, but not found any info on the typical process.....or do you pay exit fee etc? Thanks Hubbers! Ollie

Hello & Happy New Year to you all! I am considering the Buy, Refurbish & Refinance strategy and in this scenario would be using a bridging loan for the purchase (along with my own savings for the refurb). Whilst I know predicting the market is nearly impossible, I would like to be able buy with some confidence that the local market would be in a good position in the short term so I could continue with my strategy and refinance, pay the bridging loan off and pull out some (or hopefully all) of my money. Are there any market indicators I should be looking for? Is there ever a "right" time, or is it best to just go for it as long as the fundamentals are there in my chosen area? I am wondering if anybody with experience in this strategy could give me some advice? Thanks a lot, and happy investing! Ed.

Hi - I'm trying to work out the gross and net yield on a property that I'm refinancing to fun other BTLs. What I want to know is should I divide the annual income/annual profit by the price I payed for the property originally, or by the most current valuation of the property? The property was purchased 10 years ago and has seen a decent increase in value so the two possible figures differ a fair bit. Thanks in advance!

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!

Hi I am from Reading and currently going through the Goliath Sourcing Academy training. I have learned alot about property over the last month. I am in the process of putting together my goals formally. My end goal is to build a buy to let portfolio with the aim of earning atleast 7,000pcm after tax. My chosen strategy is BRRR or BR and flip. However I do not have enough capital to source. So my strategy will be to Co source deals with a deal sourcer, use that money to start my own deal sourcing business, use the money from the business to implement my strategy. Therefore if anyone if anyone is happy to assist me even look over some of the deals I have have to point me to the right direction, I would really appreciate it. Thanks all Yvette

Dear Hubbers, Firstly. we have to give huge thanks to Robs for the quality content, which they put out on the property hub podcast. Thank you thank you so much. The podcast really inspired me. However, I have got a lot of huddles to begin my property journey. I would really appreciate if any of you could help answer our questions regarding re-mortgage an overseas property. We have got a buy-to-let property in Australian. The property has been rent out and has been paying itself. Over the 10 years period, the property price has increased significantly. We wanted to release some equity to reinvest in the UK. However, I have been rejected by different lenders. Since the Royal Commission last year and with the weakening Australian dollar, exchange rates have heavily impacted our capacity to service our loan in Australia. Unfortunately, our current income streams wouldn’t be sufficient to meet our additional loans. As we are non-residents, lenders are very conservative and take only about 70 to 80% of our income and then apply the Australian tax rate. So, in reality we would need to be earning at least £150,000 to serve a £200k loan. Even if we could meet the criteria, it may only get us a loan with 6-7% interest rate. The major factor is our UK loan. While lenders use lowered income, they take 100% of the converted income, meaning it is always difficult to meet the lending requirement. We would really like to purchase the properties which have been advertised on property hub, but we don’t have enough cash to pay for the deposit. I can’t believe this is the end of our property journey. There has to be a solution. I know I have got an option to sale the property in Australia and get the money to the UK to invest, as I know the property investment is about circulating the money and using the leverage. However, the Australian property market has dropped in the last two years. I am not sure if I should wait until the property market recovers, which could take another 5-7 years. If we were to sell the property and reinvest in the UK, I would need to pay for the capital gain tax in AUS. Also, because of the currency exchange, we could lose a lot of money in this one transaction. We have got no idea what the best options are. Our strategy is to build a portfolio of five properties and look for a long term growth. Shall we wait for the property market to recover in Australia and sell the property? Or shall we sale it now and get the cash to reinvest in Liverpool? We are really stuck. I would really appreciate if any of you could provide any help/advise. Many thanks, Lisa

Dear Hubbers, Firstly. we have to give huge thanks to Robs for the quality content, which they put out on the property hub podcast. Thank you thank you so much. The podcast really inspired me. However, I have got a lot of huddles to begin my property journey. I would really appreciate if any of you could help answer our questions regarding re-mortgage an overseas property. We have got a buy-to-let property in Australian. The property has been rent out and has been paying itself. Over the 10 years period, the property price has increased significantly. We wanted to release some equity to reinvest in the UK. However, I have been rejected by different lenders. Since the Royal Commission last year and with the weakening Australian dollar, exchange rates have heavily impacted our capacity to service our loan in Australia. Unfortunately, our current income streams wouldn’t be sufficient to meet our additional loans. As we are non-residents, lenders are very conservative and take only about 70 to 80% of our income and then apply the Australian tax rate. So, in reality we would need to be earning at least £150,000 to serve a £200k loan. Even if we could meet the criteria, it may only get us a loan with 6-7% interest rate. The major factor is our UK loan. While lenders use lowered income, they take 100% of the converted income, meaning it is always difficult to meet the lending requirement. We would really like to purchase the properties which have been advertised on property hub, but we don’t have enough cash to pay for the deposit. I can’t believe this is the end of our property journey. There has to be a solution. I know I have got an option to sale the property in Australia and get the money to the UK to invest, as I know the property investment is about circulating the money and using the leverage. However, the Australian property market has dropped in the last two years. I am not sure if I should wait until the property market recovers, which could take another 5-7 years. If we were to sell the property and reinvest in the UK, I would need to pay for the capital gain tax in AUS. Also, because of the currency exchange, we could lose a lot of money in this one transaction. We have got no idea what the best options are. Our strategy is to build a portfolio of five properties and look for a long term growth. Shall we wait for the property market to recover in Australia and sell the property? Or shall we sale it now and get the cash to reinvest in Liverpool? We are really stuck. I would really appreciate if any of you could provide any help/advise. Many thanks, Lisa

Hi, First time poster here but long time member.. Here’s my current situation I own 2 apartments in Manchester City centre – one I live in and the other on CTL. Property 1 – purchased for 137k now worth 160k. Property 2 purchased for 130k now worth 140k. LTV of both is around 80% I am 27 and see myself right now in capital growth phase and want to continue expanding portfolio and keep raising deposits. Until eventually (20 years time) have around 2k profit coming in every month. I see several options to expand portfolio: Q1 - which one would likely result in the best net position in 20 years time? I’ve tried modelling each scenario but still no clearer.. Of course lots of variables in between but i see this next step as one of the biggest decisions to get right as it will influence all the next years... · Refinance both properties in around 2-3 years time (to take into account property cycle) to 90% LTV – Use the released equity to buy a buy to let approx 250k purchase price. Advantage I see here is that I still get to keep residential mortgages that are being paid down with possible capital growth in future. Disadvantage is that I may then be too highly leveraged in next downturn. Q2 - Is this possible to refinance both residentials? · Sell one property in 2022 and purchase a buy to let approx. price of 200k. I wouldn’t want to sell both as I need to keep one residential to allow purchase of BTL’s. · Keep situation as is and keep paying down both mortgages – will be paid off in 20 years time and will own both outright. The income from buy to let will go straight into savings and go towards new deposits. If I can buy BMV on the next property then even better. Q3 – any strategies that I have missed ? Thanks for reading and your advice appreciated, Sam.

Hi folks, I am buying a house at £39K which needs a complete refurb (up to £10K). Am thinking of getting a bridging loan then refinancing after 6 months (or earlier if any lenders would). The value will be around £60K once the refurb is done so a BTL mortgage is an option by then. I have 4 other BTLs all bought with a 75% BTL mortgage where I financed the refurbs and deposits myself, so this is the first time I'm doing it this way. Rob D's Complete Guide book taught me to look at other options for financing cash purchases, but I have no intel on good bridging finance options, can anyone tell me which companies would be a good starting place please? Any other tips or pointers much appreciated! Thanks all, Kirsti

Hi i was wondering if anyone has a BTL property in a flood risk or previously flooded area and has obtained landlord insurance with flood cover that satisfies a mortgage company when refinancing. My mortgage broker says the building must be covered for flood or they won’t consider a mortgage. im looking to buy the property cash then refinance in 6 months time it will be a single occupancy BTL. Previously flooded once in 2015 and is classed as high risk flood area. (This is my first BTL) I usually flip houses. Most brokers I’ve rang wont cover buildings for flood as it’s going to be let out. One will do up to a maximum of £5000 damage, but I’m not certain that would satisfy a mortgage company? Could anyone recommend any insurers who will cover flood with landlord insurance or has anyone had this experience and been successful in insuring for flood and refinancing. many thanks in advance. Carly

I'm just getting into this property thing, having been an accidental landlord in London. We sold the house last year to release equity for various reasons and are looking at re-investing some in the Notts area. I am currently looking at a 2/3 bed townhouse in an area that I have long considered to be a growth area. It is currently going through a regeneration program (that links in with others such as 'the gateway to the City') and has seen investment from private p. development companies buying up plots of land for eco housing etc. The schools are improving, its located near the river, new tram link, great road links, business parks, city and hospital. It is also next to the town which I live, that is extremely popular (with property prices going over the 550k mark for a 4/5 bed semi) and becoming rapidly too expensive for many. The ripple effect has already started with house prices having increased 50-60k over the last year. Those selling in the 'old' part don't hang around and prices have been driven up 20-25k since the start of the year. Wish I'd been able to get in earlier! Anyhow the property I am looking at is in the 'newer' part, which is currently not so sort after. However it is on a lovely, quiet and well maintained cul de sac with lots of off street parking. It is less than 5 mins walk to the tram stop, riverside and there is a bus stop around the corner. The City Centre (and train station) is a 10-15 mins walk and it has castle views! There is easy access to the ring road and other main link roads and motorway. All of which, I think is great. The property itself is approx 30-40 years old. It's a 3 storey townhouse with off street parking and a car port/garage on the ground floor. It is marketed as 3 beds "with flexible living" but in reality the room on the ground floor has the only garden access, is small and isn't really suitable as a bedroom. The kitchen and lounge are on the first floor and the bedrooms on the top floor. The garden is a decent size and probably too big for rental, as lets face it tenants don't look after them! My thoughts are to offer cash BMV, put in some carpets and paint then rent out whilst planning etc., is obtained and a builder becomes available (long waiting lists!). I have been told £675 pcm. Then when the planning comes in turn the car port into a double bedroom and extend into the garden (no planning) making another proper double, with a separate hallway and access to the garden. There is also a downstairs toilet that I'd look into converting to a shower room. I have had one quote for a builder for 40k (inc VAT) for this. The work would be solely to the ground floor so it is possibly feasible that I could rent as a 2 bed at a reduced rate whilst the work is completed, as the top 2 floors would be unaffected (other than noise and inconvenience)? My question is whether the figures add up and how to calculate the ROI after refurb and refinance. I'd be buying cash. We would also have the cash for the refurb or could do a company to company loan at 3%. I have had a go at using a BTL BRR calculator but unsure I have filled it in correctly? Property is on the market at 120k. Screenshot below. Any thoughts would be appreciated!

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

Do we need a new broker or Is this a common theme? The mortgage on our B2L was up for renewal before it reverted to the SVR. A good opportunity to release some funds at the same time to reinvest into another property. I thought! (Following well publicised strategies). Two agents valuations came out at £390K £400k The existing mortgage on the property is £185k For the first 3 years the Property achieved a monthly rental of £1250 no voids. New tenant moved in April this year with the rent agreed at £1375 All documented with a tenancy agreement and managed by an agent, separate bank account clearly showing the money in and out. We wanted a mortgage as close to 75% LTV as we could get i.e. borrow around £280k. To shorten the story, the stress testing applied by many lenders, TMW. BMS etc meant we could only achieve £206k. Thier valuer down played the rent and the value of the property. The broker recommended New Street who said they were prepared to get closer to the 75% LTV we were looking for and lend £260k providing we could send them our 2017 SA302 ( we had previously provided 2015 and 2016 SA302s). The interest rate was higher at 3.45 fixed for 5 years and the fee was heavy at £3500 but we felt over the long term it was worth it. We sent off the 2017 SA302s The tax overview and SA302 clearly show we are lower rate tax payers and therefore were taxed at 20% , this being one of the lenders stress test requirements. Because the level of income before adjustments/allowances showed we earn slightly above £45k a year the lender decided we are therefore higher rate tax payers and could only lend at 60% LTV. We pointed out that HMRC consider us lower rate tax payers as demonstrated by the SA302 and asked how can they dispute that? The lender ignores the tax calculation on the SA302 and instead Just looks at the break point of 45k as the level for higher rate tax payer. Frustrating Is the polite way to describe the last 4 weeks we are now on our original lenders SVR still looking for refinance. Would welcome any comment on any part of the process especially as it now seems the strategy of refinancing to go again is dead.

Hi I am new to the property hub but love all the information and podcasts! I need some advice. I am remorgaging my 4 bed rental in Clapham, London. It is a great rental and always has been. We are applying to split the flat into 2 separate appartments. My question is: given that Labour government is likely to be voted in sooner rather than later, should I go for 5 years locked into a higher interest rate or 2 years at a lower rate? With the five years, my thinking is that this would see us through any possible turbulance in the marketplace whereby it would be even more difficult to re finance. No one can see into the future but the word 'greedy landlords' has been banded around too much. Would really love your thoughts and input. Many thanks and good luck with all your own ventures.

Hello, I was wondering if I can release equity from my current home (no mortgage left), to found a second home purchase. My current home will eventually rented out. Anyone can help me with the percentage I can release? Thanks a lot. Cheers, Tina

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

Hi all, I'm about to purchase a 4-bed house with a 2-room basement. I'd like to maximise my monthly return AND pull out cash for another purchase. My question is, do I: a.) create a 6-bed HMO, or b.) create a 4-bed HMO + 1-bed flat? I've checked with local planning, building control & HMO team, both options are doable. Return on both options would be similar. But what about refinancing? Would either option work best for maximising how much cash I can pull out? Anything I need to watch out for / push for? All experience / suggestions welcome? I'm scratching my head, and not getting anywhere....thanks

Hi Guys, Wanted to get your thoughts about BRR strategy to get majority of money out with Article 50 looming. Doing a full refurb to force appreciation and then seeing prices drop due to Article 50 would be devastating.....do we think this is likely?

Hi guys, Looking to hear from investors who adopt a buy - refurb - refinance BTL strategy. What are your expectations and experiences in terms of the % of money you can get back out of a deal? I'm looking at 1970's terraced, 2/3 bed, requires light refurbishment (£10k max - maybe a new bathroom or kitchen) and buying around 15% - 20% BMV. Refinance as early as possible (6 months but my broker believes we could do it earlier) and recycle deposit. You may not be able to judge my deal without more area info etc, but keen to hear what normal returns are. Are you getting your deposit and refurb costs + a profit back? Thanks, Sam.P

Hi guys need some advice (sorry it's a long post) I have begun my property journey with a BMV 1 bed leasehold flat in Birmingham this year, having been able to pay for it cash, I have renovated it after a few months to a reasonable high spec with the aim in letting out. I want to refinance to release some of the cash to invest in further properties and I am waiting to have it valued. I do not have a residential property or Morgage at the moment and never have as I am currently renting myself whilst working self employed. My questions are as follows: 1). Because the Property was bought for less than £40,000 but has definitely added value with refurbishment work( new kitchen, new bathroom and Windows) will I be able to get it refinanced based on original purchase price or is it valued price that matters? 2) how long will I have to wait as it has only been 2 and half months since purchase for applying for refinance? 3) is this a good strategy? 4) does not having a residential Morgage impact on me getting a refinance on this investment for a BTL Morgage? 5) is my self employed status an issue (I have been working over 2years) ? Lots of questions I know sorry hope they can be answered and what my initial thinking when purchasing this property can be fulfilled. Brokers, property investors and advisors welcomed Don't want to regret this idea Thanks again

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