Jump to content

Nev M

  • Content Count

  • Joined

  • Last visited

Community Reputation

0 Neutral

About Nev M

  • Rank
  1. Hi Grampa, I think you made the right choice, where else is a good return at the moment? I was thinking of buying car parks lol. I am definitely the newbie of the forum and only have 2 properties currently (and just bought the second) and with the same sentiment of where else can i put my money that will give the best returns (Committed now for better or worse). Granted the increased Stamp Duty, loss of 10% wear and tear hurts but and opted for a BTL standard Mortgage as placed as Deed of Trust in wife's name 99/1. Same as you i placed a large deposit and so the mortgage is small and the mortgage interest relief mitigated somewhat by this. I bought more as an investment on rental return for future than I did for capital growth. I worked on assumption over a 10 to 15 year period it will see about a min 30% increase and mortgage paid in 5 years. I am not assuming any real growth and potential drop over next 2 to 5 years then hoping it will balance and rise at a moderate amount with the mortgage covered by rent. Had times and tax laws been different and I though Capital growth was a reasonable certainty then i would have gone for a few properties on low mortgages and Ltd company maybe.
  2. Thanks Richlist, will keep this in mind and also make a note to discuss all these points with the Agent on refurb and pre-letting stage. I note you mentioned the EPC, that does stay valid for 10 years right or have to redo this on letting each time again?
  3. Really appreciate the responses and they where all helpful to me so thank you. I was using compaingthemartket site and gave me a lot of quotes with Finsbury (Simply Business) being the lowest circa £310pa and i called them to check what "Tenant Default" means on the quote and seems it is rent protection with similar conditions you all mentioned above. I called Direct Line and they also offer the rent protection and also said they would guarantee to beat any price by 10% or a minimum of £10. It was a reputable company i was after and the rent protection rather than the lowest cost and i think that's been answered here best it can be. I will make my choice, roll the dice and take my chances on either Finsbury or Direct Line (waiting for exchange of Contracts date so not doing it right now). Thanks again Grampa, Melboy, RL.
  4. H, Yes sorry I probably a little vague. I want in regard to Landlord insurances covering standard buildings and contents, malicious accidental damage, legal help and fees etc but especially Tenant Default and from a perspective of readiness and willingness to payout when needed and valid. For Gas, Electric, Plumbing, Drains was going to do separately with British Gas Home care product. Currently we rent through the agent to the council and the Agent is paid direct from the council and the agreement with them directly and they cover bad tenants removal and guaranteed rent (Less rent than private renting). The Agent we have now has been good but certainly had our mix of problems with vandalism, theft, breakages, turning of outside boilers in winter causing £1000+ over a period of time as it froze with one tenant. Learned and still learning some valuable expensive lessons but this agent has been pro active on the most part so far. The agent previous to this kept 4 months rent from all landlords that rented through the council and despite being told the council continued to pay them and then they declared them selves bankrupt and basically went with our money (No Council compensation). This next rental is through same agent but is a fully private and no guaranteed rent scheme . One of my key concerns it "Tenant Default" insurance as i do not have the guaranteed rent scheme (as before) and intend to take this out. I am unsure if many of the insurance companies honour this but want to protect against bad tenants that don't pay and the long process to remove them. I know i will never know till i have to make a claim for it in reality. I suppose the question is there any insurance companies that members have dealt with that they feel are more reputable in looking after there customers in an event of a claim. Not so much the cheapest. All the quotes so far are approx £300 too 400 on comparison sites. I have not applied to Direct line yet as not on the comparison sites but will do. I ask about them as they seem to be advertising heavily on there Landlords insurance and seemingly no quibble when coming to claims (Suspect advertising hype)
  5. Hi all, Title says it all really and there my be little for people to say apart from do your research and make your choice. But a few people have suggested to me that Direct Line are one of the best and wondered if this is just good advertising, truth or myth
  6. You list is very useful Grampa as my agent currently has being doing most of this for me. I will check on some aspects on this with the new let property for private rental (still through same agent).
  7. How about if i was to have just purchased and then let a property and then have the repairs reflect as being done whilst its being let. E.g. Painting, Replacement Kitchen doors and like for like cabinets etc. Could that be claimed on income tax or inadvisable and to keep it with CGT?
  8. Can't say i seen the rents change much in the Luton area as yet but i do use an Agent. I am letting a new property soon hopefully and been told the standard charge for finding and placing a person is 2 weeks rental cost. By the way should i write something into the tenancy agreement around year rental increases per year of min 2% or greater if inflation is higher or interest rate changes etc?
  9. Aren't the tenants legally responsible to submit the closing reading when they leave and the new supplier when new tenants move in to physical take the new reading? Hmm how do you protect against this is a good question as technically the landlord could be left with a high bill if all are estimated. Is there a way to write into the agreement or encourage they use a supplier will install a SMETS 2 meter for gas and electric? After that any supplier they use will have accurate data.
  10. Thanks Melboy and Richlist, both answers are very helpful and was along my line of though and research also. Agreed Richlist I am very nervous but do see whats driving it. This practice is technically illegal in Scotland also i believe. The property is below market value by around 10K and has a garden that others in area does not (That said the stamp duty takes me back up to that level). The refurb costs are looking to be around 2.5k less than i was budgeting also. The achievable rents are good in comparison to more expensive areas and so makes compelling commercial sense. With both your suggestions and also solicitor advise i have agreed but asked the solicitor place in the contract the following terms in proper legal language. In all honesty I think the survey will be done way before they even get this drafted up and all signed the legal conveyancing however probably will still be ongoing when/if we sign this. Both parties agree to and undertaking of £2000 to be held as a Holding Deposit by each of their solicitors. The buyer will guarantee the purchase of the property and if not purchased then lose the total deposit of £2000 to the vendor. The below exceptions and terms apply to this: - The buyer may pull out of the sale and be entitled for coverage of legal and survey costs from the vendor holding deposit should the sale fail due to failure of the mortgage survey to enable a mortgage or findings of that survey for recommended work to be done that both parties cannot agree upon resolving between them. - The buyer may pull out of the sale and be entitled for coverage of legal and survey costs from the vendor holding deposit if there are legal conveyancing reasons that make the sale none- viable. This also includes Legal escalations of costs due to the issues found with in the conveyancing process that is not deemed to be the buyers fault and that cannot be resolved or agreed with the vendor in a reasonable time. The vendor will not ask for an increased offer over the purchase offer made and agreed and offers the buyer exclusive rights to purchase. The seller and will remove the property from all sites for advertisement and advise all parties interested this is sold STC and no offers or viewings are being accepted. Forfeit for this not adhering to this is the full deposit amount to the buyer The Seller will not withdraw the sale of the property to the seller unless the seller is at fault. Forfeit for this not adhering to this is the full deposit amount to the buyer. Thanks again Melboy and Richlist Kind Regards Nev
  11. One more note. My solicitor said this was quite uncommon unless a new build and not to agree to it. However if we did then to ask them to have the paperwork drawn up and send it to them and they will review. I just can;t help but feel by the time all this is done we would be at and exchange point and they would have their commitment. Not sure what alternatives i can offer the seller for them to move this forward amicably for all and would like to if possible as all the other rental points max out for a buy here including purchase price.
  12. Hi all, I made an offer on a property and had it accepted last Friday, though i now know this gazumped a previous and probably frustrated cash buyer with a 5k less offer than mine. Knowing this I asked them to please remove all the other vendor boards from the property and for the house to be placed as STC. There is no Chain as i am a buy to let customer and they have already moved out. I have an mortgage offer in principle and submitted the full application now and waiting the full offer and then to pay the product fee and survey costs before they will send a surveyor (Virgin Money). Also i engaged and paid a deposit with the solicitor and they are working on this last couple of days. "The Catch" Today when asked seller to take it off with other agents and advise the old buyer it was now of the market they said only if i paid a 2k deposit to there solicitor and they would do the same to make sure nether pulled out or the one a fault would lose this. I have never heard of this and can't understand why this would be used. Does anyone have experience of this or how it is set up if the case? Surely any such draft would have to state my side that the deposit is paid with the assumption that I get accepted for my mortgage, the survey comes back ok and accted by the building society as well as rental checks and that the legal work is all completed to me and my solicitor. If it contains all this then i do not see any benefit as when you have all this you can exchange contracts anyway with a deposit? Unless of course they do not want to include assumptions and then that leaves great risk of lose of deposit? Any thoughts, advise or help here appreciated as the deal is close to failing due to seller wanting this and me being wary of what they want in the contract for deposit and who pays the legal costs both ways. I have put my solicitor on hold for now as unsure where this is heading. In reality if i kept everything rolling we would potentially be at exchange in 3 weeks. Kind Regards Nev
  13. Hi all, Firstly, apologies if answered elsewhere on the site and so many questions in one go. First Question -Situation is I am married to my wife and we have our main home and a second home that my wife owned before we got married. We have not done a deed of trust on her old house as had fully owned her and still is. Any issues anyone can see here? The tax man seems happy with this over last 14 years to date. Second Question -We are however buying another house to rent out under a Buy to Let mortgage in joint names. We will get a Deed of Trust created by solicitor and submit form 17 but unsure on the split we can do. I wanted to give beneficial ownership of 100% to my wife and when I retire would move it back to a 50/50% beneficial ownership. Is there a problem with me giving 100% to my wife from a tax perspective as I see very often people have taken 99%/1% option? I did call the tax office and they said it was ok, but many are recommending I keep 1% and I don’t know why? Third question - was to keep things legitimate we was intending that my wife will pay the mortgage payments, Agents fees and collect the rent to and from her account. Is this the best way forward for the tax man viewing the beneficial ownership? Fourth question - does the Deposit compromise on the beneficial ownership / Deed of trust percentage we can do? We have savings in join accounts and my name and will pool them together into our joint account for the deposit on the house. Does the tax man ask who paid what proportion of the deposit as part of the Deed of Trust e.g. If we paid 50/50 deposit can we only go 50/50 on the deed of trust? Last question - Also is it better to have the full deposit come out of the wife’s account if she will the 99% or 100% Beneficial ownership for the Tax man to be satisfied or does this not matter. Kind Regards Nev M
  • Create New...