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  3. Hello, Thanks for your reply. It's definitely a lot, but everybody seems happy with the strategy we have in place and each investment decision will be made by a vote so hopefully we can keep the arguments to a minimum. Some are happy to relinquish voting rights, in exchange for a more passive role in the group (though they'll still have to do some of the labour from time-to-time). With that in mind, I think two class of share would be a really good idea. Cheers, Chris
  4. Derek It all sounds great in the advertising and depends on how you want your tenancy to proceed. If you are fairly hands on and the property is close to you this could be a useful vehicle for you to take a lot of the day-to-day pressure off you. However, at these fees, their business model can only work on bulk membership and minimal input from staff so there will be no relationship with your agent as they will have too many properties to manage. They too will have no sense check on tenant repair issues - the tenant could run you up a sizeable repair bill calling for assistance on all sorts of issues which are automated in calling out contractors. In all these models they seem to forget that letting is a people industry and you are interacting with tenants who also have needs and no computer algorithm can account for this and the diversity I face every day at work continues to leave me bemused at how an online agency in Milton Keynes (or wherever) can empathise or really get the real issues of a property, landlord and tenant in a location 200+ miles away and probably have no idea of where it is or what the local conditions are like. I have properties in 4 separate locations in Lincolnshire and each location has its unique local variations. Personally I think that it is worth the additional cost of using a quality local agent who does the job right on site at a fair cost. It is when things go wrong that the perceived cost savings go down the pan and the cheap agencies prove to be anything but! I have looked at the link to the No Agent and would take issue with their comparison of what an agent (generic) will charge for/do etc & No Agent do but include in the fee. From a pure business model - from what I can see I struggle to see how they can make any meaningful margin within which to run the business on & would not be surprised to see them either increase prices or disappear
  5. Hi Jo Richard, as ever, has offered excellent advice. He is correct that it is illegal to prevent you from viewing property and requiring you be registered to do so, but as he points out it can be very difficult to prove. The reason they want you to use their mortgage adviser is that they will be getting significant revenue from the fees earned either internally if the adviser is a staff member or as a kick back if they are independent. I would be tempted,as RB advised, to go with an AIP (mortgage Agreement In Principle) and find out how they respond. If they are operating a fairly overt closed shop I would then follow it up with contact to the ombudsman organisation they belong to and local trading standards. The agent is supposed to act in the best interests of the seller, not the buyer and so their apparent restrictive practices limit who buys and the price therefore cannot be the best potentially available. If they are acting like this there should also be a measure of doubt in how honest they are with you too. I currently have an investor whose portfolio is very poor and is a result of incautious purchases at the recommendation of an agent off-loading onto the newbie or gullible buyer. I know this has happened because of an unguarded comment by an ex-employee of agency he use telling me that the guy was used to buy all their stock that they could not shift. There is an element of caveat emptor but it does break Consumer Protection Act 2008 if he wanted to pursue it but difficult to prove at this late stage. Personally I would go in with great care and try to find my portfolio from a more reputable agency. Goodluck
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  7. Hi All We have a 3 bed flat in the Roseburn area of Edinburgh which has just become vacant. It normally rents for about £900 month and I've always done AST's, so I don't have any experience of airbnb. As its coming up to Festival time I wondered if I should try to do a festival let before advertising for long-term tenants. Its currently unfurnished so I would need to buy beds etc, pay airbnb fees, management costs and so on. Having had a quick look on the website it looks like we could probably get decent occupancy all year round, so maybe the initial set up costs would be worthwhile. Any thoughts? I'm aware of the issues with doing this on a standard BTL mortgage and that Edinburgh City Council may decide to regulate airbnb going forward. Thanks Clare
  8. Hi all, After some advice if anyone can assist? The house is currently worth 340k with 80k mortgage left. What is the best way to go about purchasing 50%.share. On my current wages I wouldn't be able to put it all in my name. Would a transfer of equity be the best way forward? Also would my mother be able to take out any equity? Only an idea at the moment but if anyone could point me in the right direction it would be appreciated?
  9. Very good point
  10. What annoys me is that estate agent listings rarely have the charges on them and you have to contact them. Even then quite often they don't ever get back to me with figures and I never end up going to see them. If only the vendors knew how badly their properties were being marketed!
  11. HI there, Please could someone help me with the following: I have recently become VAT registered. Does this mean I have to charge VAT on my rental income? When it comes to self employed tax return, do I need include the incomes and outgoing with VAT or do I use the figures without VAT? Thanks in advance. Paddy
  12. Thanks guys, you were right, no dramas and all sorted now. They did query the fuel and I ended up saying it was too complicated to calculate so could they leave it off. They got a touch upset about this- but I hope/ think it was ok as we were only talking £20-£30 in the end. Please could you help me with the following questions: If i'm VAT registered do I need to be charging this on my residential rent? When it comes to self employed tax return, do I need include the incomes and outgoing with VAT or do I use the figures without VAT? Thanks for your help. Paddy
  13. Thanks for this. I've spoken to an accountant and solicitor- accountant says its done on completion and solicitor says on exchange. The solicitor is certain this is the case and we took their advice (so I hope they're right). But part of me thinks the accountant is more likely to know! My Dad took their advice not me..... i'm hoping the solicitor was right!
  14. Thanks for the help, interesting.
  15. Hi I agree with Stuart ,You can research all points before your moves.
  16. Hi i wanted to know some details like What is your budget and location.
  17. Last week
  18. Hi Stuart, Yes our broker is a commercial/development/bridging finance specialist, just got the price back from the builder so intend to speak to him Monday about what the options are. Not sure the deal is going to stack up on this one anyway and even if it did not sure how we fund the deposit if 100% bridging isn't possible and we can't release the equity from our home... Cheers
  19. Hi Stuart Yes sorry, typed out a reply and it doesn't appear to have been published - how annoying! So in answer to to your questions our current lender is First Direct. The reason we haven't considered 100% bridge funding to cover both the purchase and conversion cost of the commercial property is because I've been advised lenders will expect us to put down at least 25% of the total development value, hence the need to raise funds through release of equity from our home. In terms of confusing business purposes with buying a business property I take your point but what I am looking to do is to buy a commercial property to convert to a buy to let and I think this is fundamentally the issue First Direct may have. I do have a broker and have had an initial discussion but until I have got all the costs back from the builder who will do the work I'm not in a position to assess the viability of the deal with him. I'm hoping to get these through tomorrow. Thanks for responding, will take your advice and if deciding to pursue this will be up front with our lender however if you have any further suggestions on other options should we hit a brick wall with Equity Release they'd be much appreciated!
  20. Positive from the speach - HS2 phase 2?!
  21. Hello all, I have a query for any BTL investors in London/South East. I was wondering if any of you could offer any insights into whether it still possible to make BTL work in London? I am interested in houses only (single lets), I own a couple of properties in North London with low mortgages but can't see if I were to purchase more how I could make them cashflow positive unless I put in 50% deposit (unless I went down the HMO route which I don't want to do). I have the budget to purchase another house in London but looking at areas like Manchester they seem like a much better prospect. Many thanks in advance for any tips! Kind regards, H
  22. Hi, At the moment, it just looks like another chance to jump on the bandwagon to have a go a landlords. Yes, as landlords we have a choice as to which agent we use. However those landlords that rent out just one property probably have as much chance to negotiate the costs as a prospective tenant would have. The fees are for for taking references, getting credit checks, and investigating immigration status so they will cost money. If the government doesn't offer a one price quick and cheap process for landlords (which the government won't) then I predict that rents will rise to not only account for the extra costs but to add extra as well to account for the cost of checking failed applications. This will not affect tenants who regularly move but those tenants that stay in the same property for years will have to pay that extra on their rent each and every year. Just my view and I may of course be totally wrong. Regards,
  23. Afternoon all ! I've spent the last hour browsing updates on this forum so I thought I'd update my progress whilst I'm here (it's been a while!) So I returned to the UK last summer and moved back into my London flat (not great for the yields but this was counterbalanced by a promotion so I've justified it that way). I've actually started to really enjoy my new position so the ambition of becoming a full time property investor has been booted out of the ballpark (for the time being at least) I completed on my 4th property in September 2015, and my 5th April 2016. All are now tenanted and fully managed by local agents in Manchester. I've got to say I've been taken aback by the surge in Manchester rents/ values over the last 3 years - I've always liked the city but I'd not anticipated prices to drive up quite as high as they have, here's hoping they now start to settle a bit (the low cost of living in Manchester is one of its main draws and it'd be a real shame if it turned into the London of the north) I suppose my strategy for the the next few months is to sit and watch the market - the political scene is a complete mess, London markets have taken a real dip, and I'm expecting uncertainty to manifest further across the rest of the U.K... so I'd like to take it all in and reassess before even thinking about committing to new purchases. Having said that I've got a backlog of podcasts to get through & I'm hoping that once I've caught up I'll have a better idea of themes / options / other people's strategies etc that I might decide to borrow to put me in good stead for the future. All the best Dot
  24. Hi Neil Honestly, I wouldn't get that loan personally. December 2018 isn't that far away and so it won't make that much difference to wait until then I would suggest. Remember that if you take a loan for a deposit that you increase your leverage or % debt on the property and these days it is more ideal to have some sort of equity cushion I would suggest...unless you have a 'burning platform' to escape! Using a loan to part-fund a BTL deposit is also frowned upon by the lenders in any case, so it may actually work against you...and you do need to declare the source of your deposit (failing to declare it is a loan could be classed as mortgage fraud). I also wanted to refer you to this podcast episode: http://www.thepropertyvoice.net/soundbite-much-capital-i-need-start/ as it talks about how to raise funds for property in different ways. I do in fact mention using additional borrowing BUT that was in the right context...if you have a clear, short-term exit strategy to settle it off..e.g. a sale or refinance. I would not necessarily recommend this option for a standard, long-term BTL property for reasons stated. There are also some additional links in the show notes that you might find interesting. All the best, Richard
  25. Hi Joe Lenders have been forced to tighten up on their lending criteria, application process, etc. by the FCA and others, perhaps that's why you have been asked so many questions. Some lenders may be rolling out these changes faster than others as well, so you may see a difference between lenders until the dust settles. Whilst a pain, none of the requests are overly onerous or excessive, although sadly not as simple as what used to be the 'we just look at the property' pitch as was previously the headline grabber for bridging lenders. In terms of fees, I would look at the fees in total and indeed look at what I call the 'total cost of financing), which includes ALL fees, lender legals and interest charges for the period you are looking to lend for. £600 for the broker to do the works is reasonable. The 1% of loan fee needs to be taken into consideration with any other lender fees. It is not uncommon for loan application fees to range from 2% to 3% in some cases...but this would include the fees due to the broker, aside from the £600 equivalent. 2% plus the £600 or thereabouts is probably par for bridging, so decide based on the total fees if you are above or below par in the end. Don't forget that your broker should be putting you into the best deal overall...that means a combination of the lowest overall cost of finance (includes all fees and interest charges), ease of application (including turnaround times) and likelihood of acceptance based on your personal situation. Hope that helps, Best Richard
  26. Yes, I speak to Darren quite often I just cant wait to get started but currently invested 5k in another franchise that will hopefully give me a bigger pot to start with Fingers crossed
  27. Thanks Richard and I did attend the mortgage meeting! Basically they are happy that we are serious investors with the ability to proceed. There was no hard sell but a good overview of all the services they offer should we ever need them. I am now hoping to be part of their Property finding service and be a 'go to' investor when a good deal comes up. I am learning that you need good working relationships with people to be successful in this industry, so investing time with agents is definately the way to go.
  28. Hi Stephen Darrens blog is very good well worth reading. On loans try and get a credit card free 2 years on balance transfer as it can be an easy source of free money. Areas are cheap for a reason so check zoopla data and employment prospects in the area. Also look through properties for potential to be split into flats or could it be a HMO. This seems to have happened a lot in Sunderland as I am always seeing them pop up. As you want to flip know the road top price as Darren commented the margins can evaporate. I am doing an extension and I reckon the build cost is £1500 sqm fyi. Hope it helps Paul for
  29. Hi All, I have been listening to podcast for ages now but only just got on today to place my first post. need some advice ASAP. Current situation: - Have my own home in London - healthcare professional (NHS dentist) - coming to end of my year off for maternity - July will see me reinterview for my job because of NHS cutbacks. I ideally want redundancy and then start earning self employed income as a locum, BUT they don't do voluntary redundancy any more. I want to invest in property but don't have enough capital to do on my own, redundancy will give me a little more, but i will be going into partnership with someone who has more cash. Question: Should I try and stay in employment long enough to get the buy to let mortgage (assuming 3 months of payslips)? but then i don't get redundancy money, meaning i will have a sizeably smaller share in the property we buy. or should i aim for redundancy followed by high grossing locums to build up cash quickly...how likely are mortgage companies to give money to dentists (as most dentists are self employed). All your feedback very welcome:) Thanks Fez
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