Not been put in place and tbh if you do the due diligence you’ll find it’s near impossible for some or a very large bill!.. has they’ve already said 'We recognise that some properties will not be able to meet EPC band C and are taking this into account in our policies - for example, there are exemptions from the private rented sector minimum standards where improvements are not technically possible or where the cost of the work is too high.' - hope this helps

@@Sqwotzpolitical pressure will push this through. If you’re in any doubt check out current rules of grade G and F properties. Exemptions are going to become less generous not more flexible based on the direction of traffic. Landlords are going to come under pressure to upgrade the PRS housing stock one way or another, and are the least likely to be offered any financial support in the process.

It's called protecting the downside. Used alot as a term within the stock broker world but applies to all investments. It's your duty to protect your investors cash so having multiple exit strategies on the project or another asset to leverage is key.

If you’re buying a house with cash to rent out then you can give them securities such as the house itself.

It's useful if you have collateral, eg other assets and other ways of paying your investor/ JV partner if the valuations/ finance doesn't materialise as planned.

When purchasing a second home stamp duty is higher than on your main residence. Run it through a stamp duty calculator and you'll see. Same applies to a buy to let. On a BTL you used to be able to deduct mortgage interest from your yourrental income when declaring it on a tax return. Now you only get relief at 20 % as opposed to the full amount. ( see section 24 taxes)

thats after the allowance

@@shanifsmartt7077 That’s what I’m saying. Comparing to other European countries where inheritance taxation is 0%.

@@Acarsfault you dont know, there is such a thing as putting things in trusts

If you buy through a Ltd company it is much more tax efficient when passing on the asset to kids.

@@lordsummerisle852 yes I read that before, I don't have ltd though double taxation not for me

That's a good question but in a typical single let property deal you wouldn't have the investor along for the duration of the mortgage. The BRR model means you buy the property in cash (investors cash usually) for below market value. You then complete the works (adding the value) then refinance/mortgage the property at the new value. Pulling 75% of the new value out in cash. You use that money to pay back the investor and your left with the property. Investor would get back their original investment plus 10%.

@@kmwilkinson163 Yeah, I take your point, but lets say you borrowed £1 million from an angel investor at 10% interest you would then owe that investor £100K in interest plus the £1,000,000 loan. For example, if you then spent £840K and bought 4 run down properties at £210K each, paid stamp duty at £32K (£8K each property), with legals coming to around £6K and referb costs coming to around £120K, (£30K per property), then you've already spent up! This wouldn't include council tax, utilities and any other ongoing costs. Now, just to pay back the investor you need to draw down £1,100,000 after the properties have been revalued and mortgaged to you at a 75% LTV. That may be achievable, but it wouldn't be easy to achieve. In fact it would be a MASSIVE RISK. Let's say the loan to the investor was set to be paid back plus 10% interest in 12 months. What happens if you couldn't pay back the loan and interest in full? Videos like this are interesting and thought provoking, but to be honest, they're impractical if you don't cover the facts and figures. I would need a solicitor to pick through every page of an investment agreement like this. I find it, at best, extremely sceptical.

@@francissaunders4050 again very good points. The reality is you probably wouldn't be borrowing £1,000,000 if you didn't have at least that in assets to sell should things not go to plan. Equally on £1m you wouldn't have a 12 month payback period. You would run a term of say 5 years and only paying the 10% each year. Which would mean you can use the money across multiple years finding suitable projects. The agreement with the investor can be anything you both agree on. And yes you would have a solicitor involved for the paperwork. Personally I wouldn't lend from an investor what I could cover, that's how I protect the downside.

@@kmwilkinson163 I appreciate you coming back to me regarding these missing details. However, anyone "holding" the sum being borrowed in assets would be much better off taking a loan from a bank. 10% yearly interest over 5 years is a collosal APR. For example, if you own your own home, you could agree a bank loan through a "draw down mortgage." That would mean you could make an agreement, with the majority of UK banks, to draw down funds as and when they are needed, and only pay interest, at a little above a regular home-owners mortgage. More importantly, you'd ONLY pay the interest on the amount drawn down, with the flexibility to keep drawing more funds, as and when needed. This would be a much more flexible and cost effective option for people who own a home who want to leverage cash to start a property portfolio. Another option if the loan was needed short-term to renovate a single property would be to approach a bank for a bridging loan. Anyway, again - many thanks for sharing these details.

@@francissaunders4050 yes, that would be more cost effective in a personal ownership situation but these days most people choose to invest using a limited company so your personal assets are somewhat removed from this calculation. Remember the person borrowing also wants to make the lender some money too, to ensure the agreement is win/win. Using a UK bank wouldn't create any form of partnership. It's all about what works for you, if you want to use investors and how you plan to build a portfolio. These videos do make it seem more simple than it is. Not one of them ever mention following any FCA guidelines.