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  3. Thanks both for the great comments. Sorry for the silence - I've been away from the computer for a few days, which has been nice. I appreciate what you say about leverage, and have considered it a fair deal. I don't think you can be a member of The Property Hub and not do!. In answer to some specifics above: 1) I don't want to mortgage the current BTL house. This is not a house I want to keep, and so it seems silly to mortgage against it (I presume you can't port a BTL mortgage in the same way as you might a residential mortgage, if I mortgaged then sold?) 2) Not buying through a limited company. In my wife's name, as a basic rate taxpayer. So we wouldn't get the benefit that a 40% taxpayer might by doing so. ...besides, I can't help thinking that the Ltd Co route is a loophole that is bound to be closed sometime soon. At least for small portfolio landlords like ourselves - and maybe left open for large/commercial landlords if that is what they are trying to incentivise. I haven't heard many other thoughts on this? 3) I am not averse to leverage, but don't want to do so to a great extent. I am not convinced we are going to see the steep climb of the second half of the 18yr property cycle this time around - I appreciate the demand side, but I just can't see where the money to support it is going to come from. But nor do I see a fall, as there is so much pent up demand waiting to pounce on any weakening in prices. So I expect prices to stabilise and remain flat (in line with CPI) for quite a while. 4) My thoughts, therefore, are to sell the house, buy two flats. Then mortgage one of the flats (probably the older, if I'm in a rush) to buy a fourth. To test the capital growth with a little leverage (which would still only be around 150/450=33% total LTV at this point), without exposing myself. 5) Regards goals, it is to generate income to supplement pension income, with no plans to divest (unless I ever needed to). Planned (early) retirement date is around 9 years off. I won't need the income in those 9 years, so would let it roll up - another reason to mortgage a little - as that could potentially be paid off too after a few years. Perhaps this all sounds quite unadventurous - and I do appreciate the position I'm in. But this is me. Would love to hear any thoughts, though, on how or what I might do differently, while still being 'me'. Thanks again - Dave
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  5. Hi Paul / kris it sounds like shear negotiation and push for as much as possible i agree Paul that cheap is not always best and you get what u pay for. But this is about getting the property let for as little as poss but getting the best exposure and result ........which is letting your property. Ill take on board all your comments in my future property rentals regards clive
  6. Not this one, no. The complications were extensive. Turns out there was a graveyard in the grounds and the inhabitants would need rehoming!
  7. Mitesh interesting link and one that we should all adhere too as it's only right we track the right side of the HMRC and the rules that Landlords need to comply with. That said nothing ventured !! nothing Gained and I'm still perusing other avenues that adhere to the letter of the Law in respect of BTL structure going forward with the HMRC and I hope to bring good news when I meet a property tax consultant shortly. Look out for my post ... regards Clive
  8. Depends on the property and tenant type.
  9. Citu NQ? Haha we'll be investment neightbours....high five!
  10. Hi Ben interesting question, I've seen a property recently that would make a great flip for someone else! Did you manage to do anything with your deal?
  11. Thanks wesley, I'm in touch with someone now but appreciate your reply.
  12. Seek proper tax advice folks. HMRC will be looking for anyone who's income drops by 10% because they are siphoning all the rent through a limited company.
  13. The process of splitting the property involves you buying the freehold and then creating seperate leases for the residential and commercial elements. Your solicitor will be able to do the necessary work.
  14. Interesting points Paul. I'll be sure to keep these tips in mind and use them in a subtle way in the future Out of interest, what would the usual cost of free rent protection and legal insurance be? 1-2% of the monthly letting fee would be my rough estimate. In other words, how much would you be saving?
  15. Before I go and surf the online sites for builders, does anyone have any recommendations in the Liverpool area? I require; qualified electrician for full rewire, plumber (boiler and bathroom), plasterer, decorator and possibly a roofer OR a refurb company that will take on the lot! Also, does anyone recall the name of the company that sends in refurb teams around the country. Thanks Hubbers!
  16. Not 100%, but I suspect the lender would want at least one of the directors to have the required experience, as opposed to all individually. It's a good question and I'll ask tomorrow and post the response.
  17. No. Legally you don't own the property, but there might be additional caveats worth the htb scheme regarding "an interest in a property" and the lender will see a personal guarantee on your credit profile. I would check this with a solicitor first. If they give the all clear I can run the question past a few lenders and see how it would be perceived their end.
  18. Thanks for the quick reply Stuart! I plan to purchase the property through a ltd company - thats what I meant by Commercial. If I was one (of three) of the directors of a separate Ltd company that had a HMO would that typically suffice? (providing I had been for the X amount of years they required experience) Thanks again, Joe
  19. Hi Paul, thanks for the response, so the lease terms just run week to week, although the estate agent said proper leases could be put in place, which although it sound worrying, it's a small village where everyone knows everyone and a lady i work with knows the people who own the business so I think getting a proper lease sorted wouldn't be an issue and the businesses are successful and there's nowhere else to move to as they are in the village center, so I am confident that they would stay, but it is a risk. What's the process called to split the property and why would it add value? Just as it can be mortgaged separatly? And in response to your analyses Alex 1) I think it probably is hard to find tenants, but quite probably poorly managed as i hear that the house (4bed) needs a lot of work and the man who was managing it very recently died and left it to his two sons. 2)the village doesn't have good transport links, but is growing which gives me a bit of faith in business. It's an old mining village 10/15 mins from a few towns. But seeing as the yield is so great with one business not there and undercharging as it is, it appears to have a nice buffer. 4) it's been on the market for one month. One Son is a lawyer in the USA and the other is a business man and nobody knows where he lives and I am hoping that it's made it to the estate agent because it's below the radar, from what i've heard it may need a lot of work on the house aswell even though it is currently let, a 4 bed house for 70 p.w might reflect on the condition. 5) not a huge problem for me 6) Don't know, how would you find out about that? 7) how can you get a look at the accounts? Via the estate agent? 8)Not sure 9) Of course - will need a contractor to come i'd have thought 10) No flat root, the residential is sort of around the back of the buisnesses 11) attached graph, not fantastic, but with that yeild, potential to add serious value to the property, cash flow and the ability to take my money out again have real potential 12) yes that's also a big problem for an amateur like myself. I may consider viewing, negotiate on price and sell as a lead or JV with someone possibly, i'll keep an eye on it and we'll see
  20. Thank you very much for taking the time to reply. I am looking at the help to buy scheme for when I purchase a property to live in personally. I thought it was the case that you were still seen as the owner regardless of whether the property is in a company or not?
  21. You need a HMO mortgage and many lenders want letting experience or a minimum number of btls in the background, but not all. It's not a commercial mortgage, it's from BTL providers. If under 4 people are all on 1 tenancy agreement then that's a bit different and more mainstream BTL lenders might consider it.
  22. Good question. Regardless of the amount, the limited company owns the property, not you. So that's fine from a stamp duty perspective. What's the issue you face in regards being a property owner? Are you looking at government help to buy schemes?
  23. Hi Everyone - I’m looking to make my first investment property purchase soon and I have a couple queries ref commercial mortgages: If I am planning on doing a HMO - will I need a specific HMO Commercial mortgage? If so, am I likely to need experience as a landlord in order to get this? Would this be different for a student HMO where they are on the same AST? Thanks in advance! Joe
  24. Hi Guys Newbie question - forgive me. If I own a £39,999 share in an HMO through a ltd company, when I go to buy my own home in several months will I be excluded from the government's Help to Buy Equity Scheme? Having a share under £40,000 means i am exempt from the additional rate stamp duty when I buy my own place but wanted to know if this also exempted me from being classed as 'already owning a property'. Any advice greatly appreciated. Many thanks Dan
  25. Hi guys, I am so sorry, been extremely busy this month and as a result I am well behind on my admin and correspondence. I can make time tomorrow if anyone wants to meet but from what I am reading it looks like we meeting in March is that the group decision?
  26. Another query. Sorry! Will I also be excluded from the govt. equity loan help to buy scheme? Or is it a similar situation as my share is less than £40,000? cheers
  27. Ive had my limited company account for 2 years now and never paid a fee, with Lloyds Business banking. Most offer a free first year, and when thats up if you suggest you might go elsewhere it seems they are quite happy to extend that. Having said that, have a look at what the fees are for, often its pence per electronic transaction, either in or out and the more expensive stuff is dealing with cash deposits, cheques etc. For managing property you should find you have minimal numbers of chargeable items.
  28. I am looking to raise additional finance to renovate a potential property flip. Has anyone used a bridging loan company that they can recommend for one reason or another please? Any additional info regarding bridging loans I would find useful. Thank you Matthew
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