noted but no plans for that as yet

thanks for watching this week Somsay

of course they are Kris, this is no flash-in-the-pan. I have been teaching this for over a decade, still as relevant now as it was then

Tax related questions should be directed to people qualfied to answer them i.e. accountants. My 20+ years experience in property finance brokering does not equip me with the authority to answer questions on tax efficiency. I will have to pass on this, sorry. Main residence mortgages are based on the borrowers provable income from all sources - employed, self-employed and as a shareholder of a Ltd Co. Income from any source does not come without taxation of that income. An accountant can advise on the most tax efficient ways to set up income.

@@KevinWrightProperty ok no problem, I think I already know the answer to this in that case

@@Solihul886 good luck with whatever you decide to do

thanks for watching this week David

whoever told you that is an idiot then, don't use them. If you want the brokerage to get you a mortgage, go to tis home page, look for the introduction sentence on that page and click on the little arrow ar the right hand end of the sentence, my contact details are there. Email me you details and I will get the guys in the brokerage to get a mortgage for you.

thanks for watching this week Somsay

thanks for watching this week Scott

thanks for watching this week Somsay

not easy at all. You cannot just 'take over' the ownership, you have to buy it from them and they have to sell it to you, with the stamp duty and conveyancing cost incurred. You cannot transfer a mortgage either, you need to take out your own mortgage to repay their mortgage.

@KevinWrightProperty hi . Thank you for replying. Could I buy the property using the equity in the house as this would be a under market value purchase

@@Moneyra buying it deliberately under value is a breach of Stamp Duty rules. You could buy it at the full, or close to the full, market value, but be gifted the deposit by the family member

@KevinWrightProperty in this situation what would you recommend I can do

@@Moneyra get the family member to gift you the difference between the market value of the property and the price they are willing to sell it for and get a mortgage for the difference. Do you plan to live in this property or rent it out?

thanks for watching this week Somsay

no worries Maria, great to have you on board with me - see you next Monday

likewise Richard - keep watching this page, as the bookings for the Winter Feast on 12th October will be opening soon www.recycleyourcash.co.uk/networking-events

Thanks for watching this week Simon

thanks for watching this week Herbert

thanks for watching this week Somsay

yes they will, up to two lodgers with most lenders.

Thank you . Need to inform hmrc? If it’s bellow 7500?

@@Savaaritech no it just goes as an entry on your tax return, as the 1st £7,500 is tax free under the rent-a-room scheme

thanks for watching this week Scott

its all around the degree of mortgagbility Stuart. Best to ask a mortgage broker how many lenders would consider giving a mortgage on this type of property. The wider the choice, the safer it will be to buy it. The chances are the capital growth over 10 years wont be the same as a similar brick built property in the same area. However, to factor in that none of the mortgage lenders at the cheaper end of the market will lend on this, you should not really be paying more than 2/3rd of what a similar brick built property in the same area would sell for.

@KevinWrightProperty thanks Kevin, will check on this. I suppose future market value will also be influenced by availability, so it might be a profitable niche if everything's lined up

@@stuartcarr9627 you may be looking at that aspect over-optimistically

thanks for watching this week David

thanks for watching this week Somsay

Hi

Who was your lender? We've had an offer accepted, but at the point of sales, we weren't advised of the complexities and are now getting cold feet. Curious to know if you're still progressing?

@@jodielewis3640 the property we put an offer on was a concrete panel construction after researching for a few hours we ended up pulling our offer and just gonna go for a standard construction. Lender was nationwide 5.19%

simple answer Dylan, no they dont. NSC properties always lag behind the equivalent standard construction properties in the same area - often by as much as a 3rd. You should be buying it yp to a 3rd cheaper and you will eventaully sell it up to a 3rd cheaper. the clue to how much of an isse you or your future buyer will face getting a mortgage is, how may lenders are there to choose from? The broker you are using will tell you how big or small the range of lenders willing to lend is. If, out of the whole market, there is only a choice of 2 or 3, be very concerned - if these stop lending on this type of property in the future, you may be left with a property that can only be sold for cash. This is already thr case with some NSC properties. If there is more than a handful to choose from currently, be less concerned.

@@jodielewis3640 read my reply to Dylan, you ar right to be getting cold feet if what I wrote applies to the property you are buying

@@KevinWrightPropertythanks for the reply, we pulled out. It was a 1960s concrete panel construction. We was restricted to 2 realistic lenders nationwide 5.19% and Leeds building society at 5.78% we are just gonna wait for a standard construction.

sure you can Jay, our guys in the brokerage deal with mixed use properties. Go to my home page, then click on the little arrow to the right of the line 'Hello! If you’ve arrived here, you’re probably looking for the ‘secret’ of successful property investment. That’s something I can help you with.' and my email addess is there

possible perhaps Laurence but not easy. Commercial mortgage lenders like to deal with business people, not someone who treats business as a hobby, which from your post, appears to be your approach. Bars have an abnormally high failure rate, so lenders dont like them per se. Asking for a business plan is to be expected, they are business loans, not hobby loans.

what, breaking mortgage lenders T&C's?

varies lenders to lender but 6 months minimum is common. This issue can be your original intention, if you never isntende to live in a property you claimed was your main residence and bought it with the specific intention to rent it out as soon as you could, lenrs would have an issue with that.

Very welcome Scott, thanks for watching this week

thanks for watching this week Simon

thanks for watching this week David

thank you William

thanks for watching this week

thanks for finding this video Dilara, I will be expanding on this at the BRR Summit you are booked into.

thanks for watching this week David

thanks for watching this week David

thanks for watching this week Somsay

The answer depends on whether you want the lender to fund the refurb or not. If you are going to fund it yourself, they dont need to know too much detail. If you want them to fund it, the opposite applies, they will want a detailed works schedule, which will be checked by their value for accuracy in terms of cost.

thanks

that worked then Si, worth paying the 2nd valuation fee

you are most welcome

thanks for watching this week Somsay

lets hope it is

thanks for watching this week Scott

thanks for watching this week Curtis

thanks for watching this week Somsay

you need to ensure that, when the mortgage lenders valuer visits, your refurb is completely finished - any work still outstanding will have a detrimental effect on the valuation you get. Bear in mind that instructing the valuation is going to happen early on in the mortgage underwriting procedure, so it would be good practice to ask your broker what the lead time of your chosen lender's valuers are working to currently. The time lapse to switch from bridging to mortgage can vary quite a bit from lender to lender. A good lender cn do it in under 2 months but a 'snowed-under' lender can take double that.

not really but they do view them differently. When a landlord gets above 3 properties they look at it as a business and underwrite the portfolio as a whole rather than just the property in isolation. It means the landlord has to provide a bit more data for the lenders than they previously did.