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About Richlist

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    Super Senior Member
  • Birthday November 27

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    Women, wine, music.....in that order

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  1. Won't it be absolute magic if..... There is a vote. The vote is to leave the union. Then they find that they can't actually achieve it. I can't wait to see the SNP eat humble pie......they must be one of the most disliked political parties this side of the border. Why they are given so much air time on TV is beyond me. Surely they only mean something if you are a Scottish voter.
  2. I would think the biggest fear a landlord would have in Edinburgh is Nicola Sturgeon and her quest for Scottish Independance. I wouldn't want to be a landlord North of the border if independence is achieved......New currency or Euro, new taxes, new legislation, property prices will hit the floor.....an absolute nightmare.
  3. Your responsibilities as a leaseholder will be identified in your lease. I would be surprised if you were not responsible for maintenance costs. As an example normally maintenance costs are shared between ALL leaseholders......if the roof leaks costs are shared by all owners, it's the same if there is a problem with the foundations or pipework on the ground floor or if the chimney needs repointing or the facia/ soffit needs to be replaced etc. Rusty steel staircases usually need a coat of paint, not replacement.
  4. Grampa have you done a calculation comparing your Ltd company mortgage including all the costs vs a normal BTL mortgage including all the costs AND taking the different tax treatment into account ? My assumption is that your purchase through your Ltd company ...including the cost of setting up the company, the higher arrangement fees & higher interest rate etc is more profitable than buying through the normal BTL route. Haven't the Tories indicated they intend to lower corporation tax significantly (ultimately to 10%) with or without a Brexit deal........the future might look very bright ? My agent just told me they have done exactly the same as you by taking a Ltd company loan......I think it's the way to go.
  5. Capital growth since 2008 has been very good for me. Property that I bought in 2007/2008 has risen in value by at least 60%. That is considered poor if compared to London but it varies considerably across the country. Of course, my return is much greater than 60% because I didn't pay for the property in the first place.......I just paid a small deposit and borrowed the rest of the money. The rental income paid the mortgage payments and other outgoings. There is always capital growth with property.......it's the only thing that makes a property with a low yield an attractive proposition. Capital growth has allowed me to pull a 7 figure profit out of my rental business over the last few years. Its capital growth that produces property wealth, not rental income.
  6. I see positives and negatives........I think the POSITIVES win....... POSITIVES * You have funds already available. * You've agreed to buy at a good price. * Share of freehold included. * Attractive service charges. * Good yield. * Limited company purchase which provides tax advantages. * You are already working professionally in the industry......so have first hand, up to date knowledge. NEGATIVES * Legislation continues to impact profit......future Tory legislation is all negative for landlords. * Property price rises halted......potential fall in prices possible depending on Brexit outcome. * Labour may win the next General Election.....additional very bad news for landlords. But where else can you currently put your money to produce a better return in these low interest times ? If anyone knows......please let me know.
  7. I've never let on a tenancy agreement for more than 12 months. Personally I wouldn't want to let for a 3 year term.....here's my thoughts :- * What would happen if you have a 3 year term with no break clause and the tenant finds that they need to leave at say 7 months into the contract......happens all the time. * A 3 year contract without a break clause means you can't regain possession or increase the rent when you want to. * Some mortgages have restrictions on length of tenancy agreement.......as do many leases. * You may decide that the advantage of a long term tenant outweighs the disadvantages.......but surely you would want a financial incentive from the tenant........who can decide to leave any time. Could or would the tenant be prepared to pay the outstanding rent for the outstanding term if they left early. You'd probably want a guarantor......but who would sign up for a 3 year commitment ? Far to risky for me.
  8. A guarantor is way down the list of my priorities. My list is as follows: 1. A tenant that can tick all the boxes, meets all of my requirements, doesn't leave me with any doubts or questions, has impeccable references, works preferably in a profession, doesn't mean I'm taking on additional risk and very probably doesnt need rent guarantee insurance or a guarantor. These tenants are out there......I've been letting to them for 20 years. 2. Take a deposit. 3. My preference is RGI not a guarantor. Insurance is clean, easy, less labour intensive and puts all the risk onto the insurer. 4. If a tenant cannot tick all the boxes and doesn't qualify for RGI and I still want to let to them, then and only then will I ask for guarantor. A guarantor ......finding, administering, checking, signing, keeping on board etc etc, just seems like such a lot of really unnecessary work when there is an alternative......I give it a miss generally.
  9. In my opinion you don't need to take rent guarantee insurance and a home owning guarantor.......just one or the other.......unless you are exceptionally risk adverse. The majority of landlords do not take both. If you choose to go down the rent guarantee insurance route then the insurers will normally set the tenant selection criteria that you & they need to comply with. Therefore, there may be situations where a perfectly acceptable tenant applicant will fail that criteria. You may then still choose to let the property to them and will insist on them providing a guarantor.
  10. A guarantor that is a home owner is not just preferable it's essential otherwise if you find yourself in a situation where you need to enforce the guarantor agreement there may be no money or assets available for you to claim.
  11. Andy.......I disagree with your comments. 1. None of your tips apply specifically to Scotland or Edinburgh......they are general points that apply to anywhere. 2. A lettings agents DOES NOT necessarily give you the best advice to let out your property. The world is full of poor, ineffective, untrained, inexperienced, time wasters who call themselves lettings agents. Employing a lettings agents by recommendation is always preferable and a landlord should not assume that any agent will act in his or her best interests.
  12. Oh i agree 100% Mortitia, I always make it clear that tenants can change their supplier. In fact......it's law......landlords must permit tenants to change suppliers for all tenancies of 12 months or longer.
  13. An outgoing tenant changed their electricity supplier to a company I have never dealt with before.....and never heard of previously. Having dealt with them for a few months now they have turned out to be the worst supplier i have ever dealt with in 50 years.......and I've dealt with quite a lot of different suppliers Worst for.....communication, billing, ability to get hold of, accuracy of bills etc etc. Totally appalling in every respect. Who are they ?.......iSupplyEnergy..........recommend you avoid wherever possible.
  14. Richlist


    Let's face it......it's got to be a very, very poor property to achieve an F or a G. I'd probably go further to suggest that a property with an F or a G rating would not form part of a professional landlords portfolio. Most of my 30 + year old properties just about get a C rating .......they have no cavity wall insulation, minimal loft insulation, ancient electric storage heaters etc, etc. It makes me wonder what sort of features a property rated F or G has to have to get such a low rating.
  15. Richlist


    £45/£50 per EPC is the going rate in my part of Essex. Your agents probably just tried adding their bit for arranging things .......and felt able to justify it if you were overseas at the time and might have found it difficult or time consuming to arrange yourself.
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