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  1. Tough one as technically (in england anyway) its your job to validate the legal pack and see make sure therre are no exposures. Normally any charges are listed on the land regisrtry documentation so either you didn't get this properly checked or it wasn't in the legal pack. Once the hammer falls its your purchase so difficult to see how you may have some comeback - I tried to pull out once as the seller didn't include a mining report in the legal pack and i missed that it was in a mining area and should have got my own report before the auction. My solicitor pretty much said if i puled out then i would still end up paying the price at the auction - one way or another -as its a legal contract. I completed and luckily the mine shaft had been properly sealed etc so it didn't make much difference from a BTL perspective - though i suspect i would have to overcome a few hurdles when i decide to get a mortgage. Since then I always ask my solictor to vet the legal pack befor ei dcide to bid.
  2. haf1963

    No Mortgage on my own home - Decisions

    While richard makes sense, I am in a similar position but, on balance and from a risk perspective, i kept my home mortgage free and started to work on joint ventures to make some cash for the next investment. Also depends on where you are in terms of strategy as I am looking short term to retirement rather than long term.
  3. Happy to help and PM if you need any more info as I have been through this process over last 3 years
  4. You really need an accountant but basically you have to treat the company's profit/loss totally separete to any direcors loans and assetts. So essentially you make 24k in 'income/revenue' and minus all your expenses of which the interest is just one (advantage of ltd is you can claim everything from car allowance to stationary to salary to pension to working-from-home as well as property maintenance related expenses). Anyway you will then pay tax on what profit is left at corporate tax rates. On the directors loan side, that has nothing to do with your profit and you keep a totally separate account of loans and loan repayments. i.e you will pay the tax whether or not you use the companies money to repay some directors loans. You are correct in that once the property is in teh ltd company then your next purchase in your own name will become your only property and you will not have to pay any stamp duty. Transferring the property to the ltd company is no different to you just selling it to anyone else. from SDLT perspective.
  5. I go with 1 months deposit and most tenants seem quite happy with that
  6. haf1963

    Buying with a tenant in situ

    Your solicitor shoudl be helping you with this as part of the purchase. He will need to check whatever agreements are in place with the tenant and the agent to make sure you are not exposed and that any 'exit' penalties are covered by the seller.
  7. haf1963


    a few more details would be nice
  8. haf1963

    Adding value

    without much to go on i would favor loft conversion and kitchen extension as the most bang for your back - assuming they are do-able
  9. haf1963

    Should I sell this property?

    It seems to me that if you ar ethinking of becoming serious about property investment as a long term strategy then you need to sell and re-invest based on your new goals/strategy. If you can't remortgage then selling is pretty much the only option - especially if you wan to improve income/yield. I suspect you will need to be looking at the next growth areas (north) as the south seems done for the short term.
  10. I am not sure this will work. Basically you setup a ltd company with you as the Director and then you 'sell' the property from your personal name to the ltd company as a normal transaction via your solictor. If you are saying you need a mortgage then the ltd company will apply for the mortgage and I suspect you will still struggle to get one as the mortgage provider will want you to personally underwrite the mortgage which means they will look at you salary etc - ie there is a fair chance that you will get turned down or you will only get a mortgage with high fees/interest rates. The price of the property needs to be 'fair market value' so you will be paying 3-5% stamp duty as well. I would definitly get a professional opinion and at least verify you can get a ltd company mortgage befor eyou go too far down this road. I have transferred from personal into ltd and then got a mortgage and there were a lot of checks and hoops to jump through Directors loans is just referring to any money you put into the ltd compnay to get up and running or for investment so the deposit for the new mortgage will efefctively be a Directors Loan.
  11. haf1963

    Modern property auctions

    i know many investors who wouldn't go anywhere near a modern auction so i would go traditional auction if you want speed and certainty or normal agents if your not rushed
  12. haf1963

    Advice needed on first BTL!

    The point about tax is very valid and if you are both HRT then you need to do some proper analysis on the side effects of extra income eg will it put you in the 60% tax bracket?
  13. If you have the architect drawings and building regs specs then that should be enough to get like for like quotes. the only other factor is the groundworks so you may need specs for them if they are non-standard grounds eg big slopes etc
  14. All depends on the deal versus rental value with and without parking. Parking definitely preferred but if the deal is attractive then worth considering
  15. 100% yes you would - as the ltd company is effectively buying the property - and the fact that it was residential makes no difference