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  3. First time buyer in a limited company.

    You are always welcome to get in touch.
  4. First time buyer in a limited company.

    Hi Stuart, I'm very grateful for your help. My friend did admit he didn't deal with limited company mortgages very often so maybe he isn't aware of the increasing availability of them? I do understand that it will be difficult. I wont be ready to invest until maybe late 2019/ early 2020, so I'm hoping it will be achievable to get my first property within a new limited company at a 75% LTV with not stupidly high interest rates... I'm only 23 years old but I have had very good personal finances and credit score since I began work so I'm hoping that will stand me in good stead. Is there any chance we could chat via email? Many thanks, Steve
  5. First time buyer in a limited company.

    An SPV is a Special Purpose Vehicle, and it is just a type of non trading limited company. Your accountant can give you more info, but it's meant to hold assets, not trade in the classic sense. So i think your mortgage broker friend is thinking of a commercial loan: A loan to buy a business or commercial property, such as a warehouse or office. A Limited company BTL is buying residential property within a company. Two very different things. I DO think it's still going to be difficult for you to buy as a first time buyer, but that wasn't the question! You can technically do it, but it's the caveats that might be the dealbreaker because generally, ie across the whole BTL market, as a first time buyer, lenders won't lend you anymore than they would do as a residential customer. This is in order to mitigate the risk you attempt to circumvent the affordability rules on residential via a BTL mortgage. It very much depends on your specific circumstances, and well beyond the scope of an internet forum. As for the number of BTL lenders who will lend up to 75%. At my last count that numbered about 16 lenders, some of them pretty well known and established lenders that any broker should have heard of. Buying in personal names and selling means you pay stamp duty twice... Probably not something you want to do! As a rule i think limited company rates are probably about 1% greater than standard BTL rates. Significant, but that gap is closing somewhat as more lenders come to the market, especially the big lenders like TMW...
  6. First time buyer in a limited company.

    I'm assuming this is where it comes in handy to employ a broker..... I mean I understand rates will be higher but how high are we talking?
  7. First time buyer in a limited company.

    Thanks for you quick response Stuart! What is an SPV may I ask? I haven't come across this before.... I was just about to say what a relief after reading your message, however I have just had a reply off a mortgage advisor I know and he seems to think my accountant is right, and said that because it would be a separate entity, being a new limited company, I could be expected to pay a 50% deposit which seems outrageous, or he said if I do get lucky and a lender will lend to me at a 75% LTV the interest rates would be extremely high, he suggested buying them in my personal name and selling them to my limited company, but I really wanted to just buying within the limited company from the off. Thanks in advance Steve
  8. First time buyer in a limited company.

    Tell him next time your mortgage broker gave him some tax advice and see what he says...! He's completely wrong, of course. A few lenders will consider a limited company BTL mortgage for a first time buyer. If its an SPV it wont have income, that's perfectly normal and actually desirable. The lender will be looking at your own personal income (probably from the other limited company in this case, but could be employment) against its criteria. Almost everything about the mortgage assessment, certainly from a credit risk perspective will be about you personally, ie personal credit check and liability, income, experience and so on.
  9. Evening all, I understand due to the recent tax changes if I'm looking to build a long term portfolio it is best to buy within a limited company. However I've just had a chat with my accountant to see if I could buy them within my existing limited company but he has told me that I can't due to them being two different business types, which makes sense I suppose.....therefore I would need to start a new limited company. My accountant has then thrown another spanner in the works and said that I would struggle to get a mortgage as a first time buyer in a limited company as I would have no previous proof of earnings within that new company. Surely this cant be right otherwise how would anyone ever be able to open a limited company and begin buying property within it? I said to him I would have a chat with my mortgage advisor about this. Just thought I ask for some advice on here too. Thanks in advance, Steve
  10. We've put together the following blog to assist you with speculation on what Brexit will mean for the London property market. Hope it helps:
  11. Hi from West Sussex

    Thanks Chris, Whilst I have been doing this for quite a while, I still have much to learn. I've not tried Buy Renovate Refinance yet so that's going to be a steep learning curve I imagine. Still, it might even help in some ways towards my ultimate personal goal (Not investment) of doing a Self Build (I wouldn't be doing any of the actual building work though). Thanks Ben
  12. Hi everyone, My, now, husband and I bought a great property in Manchester last year using the Help2Buy scheme. It's all in my husband's name as my part-time salary at the time wouldn't have helped gain the mortgage. We only put down a 5% deposit and took an equity loan for the rest of it, and we used the Help2Buy ISA scheme to get 25% of our savings added onto our deposit. A fantastic idea at the time as it was the only way we could have ever got onto the property ladder and stop paying rent. - so no regrets... BUT Now we find that we are stuck with an equity loan that doesn't allow us to invest in another property unless we pay it off (technically as the house isn't in my name, I could get a property on my own, but the Help2Buy house can't be rented out) We know that our options are to pay off the equity loan (difficult) so that we can do what we want with the property, or for me to go solo in investment (a little daunting) and for us to keep living in the Manchester Help2Buy home. I was wondering if anyone else had been in this situation, using the Help2Buy system to get into property, and then moving on from there? I'd love to hear from you if you have! Thanks!
  13. Hi All, I'm really interested to hear how you all got your first three properties. I'm about to start investing and think that the first few investments will be the most difficult due to time, knowledge, money etc. etc. etc. I'd love to hear your start up stories * how did you get the funding? * how did you find the time? * what is your advice to people about to start investing? * would you do anything differently looking back? * did you live in the properties yourself or go straight into flipping them... I'm really interested in learning how everyone got the ball rolling. Personally, I'm interested in doing buy to let but realise that flipping a property might be a way to make some money for me to help me get started. I'm also really interested to hear from people who didn't start off with lots of money (like myself) and who do this to break away from the 9-5 rat race... I look forward to hearing from you! Thank you!
  14. Whether it's a good investment or not is down to you to decide BUT one thing I noted is that some of the assumptions in your calculations are potentially providing a false read of the ROI here, as per the attached screenshot. Purchase price - this will of course depend on where you land with the negotiations, but I have assumed 5% off the asking price, which is average. Buying costs - don't forget the SDLT, legal fees, mortgage costs and survey - I used some typical numbers for these. Works - £2k for a combi boiler and kitchen units might be doable if you are tagging onto the existing GCH system, but it's not recommended. Needless to say, I allowed £3k plus £750 for 'white goods' as a middle ground Rent - I went with your LHA rent at the top end Management - I know you said you will self-manage but that does not mean it is free Your time has a value and when you come to re-let, you may have some actual costs as well. You could choose to remove this but in which case, I think self-managing should carry a premium to allow for your time then...debatable but that's my view at least Voids - you show perhaps an initial view here, but there will be voids over the period of ownership. For example, there will be an initial void as you do the works and then time between tenancies. According to Upad the average tenancy is now 15 months and according to the NLA the average void period of their membership is 3 weeks per year. Best to budget some in then I suggest. Sundry - you picked up insurance, but there are other costs, such as the gas safety certificate, property inspections, deposit protection fees, advertising, PAT test, Legionella test, DPA/GDPR compliance, licensing fees (if applicable), accountant contribution and so on. You might argue that many of these do not apply if you are self-managing but as with the management point above, better to provide for something than not, or allow a premium to cover for your time. Contingency - Or maintenance; I went with my own assumption of one months' rent per year for a fully refurbished or ready-to-rent property, but in truth your 10% is probably a better bet and I should have used that. So, using these assumptions, I make the ROI 8.1%, which you should decide if that;s good enough for you or not. We can probably debate some of these points until the cows come home, but the main thing is not to deceive ourselves as to the true cost of a BTL. Self-management is also a very active and hands-on approach and don't forget that over the long-term of say 10-25 years, there will be lots of activity to manage (re-letting, arrears, repairs, updating, refurbishment, mortgage renewal, year-end books, etc.), which does have at least an 'opportunity cost'. It's not meant to pull your deal apart; I'm just trying to show the complete picture of a BTL...I hope that helps perhaps others as well. Best Richard
  15. Making money from HMOs

    Location is Doncaster rented to professionals. We don't have a university (yet). The standard of work was poor throughout the whole refurbishment. For example 3 extractor fans vented directly into the roof space. A chimney stack wasn't properly supported. Rising damp issues were caused by the builder. Radiators were located in inappropriate places. TV points didn't work and were badly located. The project took much longer than it should have. I could go on. The experience left me traumatised. It was like a bad dream and I just wanted to put the whole experience behind me so selling was the easiest way to do this. I put right as much as I could and the buyer is now getting a good HMO. However it could have been much better. The silver lining is that I've made good money selling it and the experience has led me to get into project managing HMO refurbs as I knew I could do a much better job than the so called HMO specialists out there. Within the last 8 months I've done 2 for myself and 2 for clients. I've got 3 underway at the moment with several in the pipe line. I own several single lets and got into HMOs simply because the yield is so much better. I'm lucky that I live in a town where property prices are low so yield is great and capital growth has yet to take off. So I feel I'm covered on both fronts so haven't favoured yield over capital growth. I expect to get both. Going forwards I'm more likely to invest in single lets for capital growth now than in HMOs as according to the property cycle we should get around 165% capital growth over the second half of the cycle. I've got more than enough rental income now so taking a punt on the property cycle playing out is well worth it in my opinion. Even if we only get half the growth that's predicted I'll be very happy with that.
  16. Hi Everyone! - Newbie!

    Hi everyone, I'm new to the forum and also to property! I wanted to pop a message on here to introduce myself and start my property immersion! So a bit about me: I'm 28 years old and I'm keen to start my property portfolio. I've been stuck in a dead end job for the past couple of years and I am dead certain that working for someone else until I am 70 so that I can live the rest of my years on a small pension is not the way I'd like to go. Property has always excited and interested me and I'd like to get on with it now! In terms of property, my husband and I own a new build, (in his name only) in a great part of Manchester that we are looking to pay off the equity loan and rent out. I have some savings ready to buy a second property for the value of around 80k, which means I'm looking for a really good deal. I'd like to do a B2L and rent it out either privately or through the council's scheme whereby the rent is guaranteed. The problems I've faced so far is all the jargon that goes with the fact I have a help to buy equity loan which is stopping me from progressing as quickly as I would like, and being able to get good deals when cash buyers are enticing people and getting the best deals. I think that getting my second and third properties are going to be the most difficult because of money and time, but after that I am hoping to reduce my working hours and focus much more on property. I'm also starting to consider starting a business for the property investments but have almost zero knowledge on this and need to research a lot. I'd love to get involved in the meet ups and also speak to anyone who is also interested in property, maybe at the same stage as I am or who has been through where I am now and come out the other side! Well here goes...
  17. Flips

    Hi Brad that would be fantastic if you could.
  18. If you are buying personally (not via a company) and have no other property in your name then zero! Might be worth considering a company to preserve your first time buyer status when eventually buying a home?
  19. Thanks, el butio! Was that the How To Be a Landlord book? I have The Complete Guide to Property Investment and 100 Property Investment Tips, so maybe I should check out that one as well.
  20. Making money from HMOs

    Hi, Godd to hear of your success story. Where was the HMO located and was is rented out to students or professionals? What were the issues you noticed with the refurb that made you to sell ? would it have cost so much to rectify the issues observed instead of selling the property? I take it that you had a short term objective of achieving a good return on capital than rental income over a long term?
  21. Developer Feedback

    Hi, I thought it could be worth sharing experiences of developers so that hubbers can share their feedback on off plan projects. Has anyone had any experience with MCR Property? - Thanks! James
  22. Flips

    I have something I can send you. Message me if you still need one.
  23. Yesterday
  24. Dividends From After Tax Profits

    It's a big help thanks @debbie franklin. I did more research and challenged the accountant doing my filing over whether a residual value was allowed or not (he said it wasn't last year). Thankfully, my research, spurred on by your comment, has swung him and I've been able to correct depreciation to a much more sensible (i.e. close to zero) level! I couldn't be bothered with FRS102 as it's mainly funded by interest free loans, which need a complex discounting calculation, and I don't want the additional information to be disclosed. thanks again Daryl
  25. In a messed up situation

    Good afternoon Richard, Thank you again for the advice and information, I shall attempt to apply this to my situation. Haha definitely not easy but I look forward to the challenge, patience is not my virtue. I hope to tell you some good news and that I am on my way to investing within the next year! Kind regards Stirling
  26. I've recently been on a property course, and I feel I have a good grasp on how to source, and evaluate properties for investment. I have about £60k that I am looking to invest over the next few months. The course, however did not go into great detail about the next steps, and I'm not sure how/where/what to start with to get the ball rolling? I know I need: 1. to set up a new ltd company (this is how I would like to invest) 2. speak to a mortgage broker, and ensure that I can get finance (should I do this before or after the ltd company setup?) 3. select a property accountant (should I do this early on?) 4. find a good property solicitor Is this all I need to purchase my first investment property? And should I have all these things sorted before looking for, or making an offer on my first property? Many thanks for any advice. Philip
  27. New Student Landlord - Looking towards the North

    UPDATE So I now have the keys to my first property . Next week we are starting to refurbish the property in time for the next academic year... adding another bathroom and make good some exterior issues. 3 other deals still to complete in the next few weeks so hopefully should have 14 rooms to rent from August onwards. Will keep updating when deals are closed........well on track to hit my first miles of 6 properties by the end of 2019.
  28. Hello, what I did with my buy to let property was that i purcahsed it with a lender on a residentail mortgage and then after 6 months i changed the mortgage to buy to let and i paid the lowest rate of sdlt.
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