Good quality advice needed

[markg1]

Hello everyone

This is my first post and I am looking for advice on a few different areas.

I am 44 live in West Yorkshire and all my life I have bought houses to live in, then done them up, lived in them a few years, sold them and bought another and repeated the cycle. I am not a handyman but have a good network of tradesmen

It has always been my dream to develop property full time for a living and it may now be time to have a go. I have just sold a house and will have around £120,000 in cash spare. It looks like I will be made redundant in the New year, my redundancy will give me enough cash to live for 2 years without having to take another job while I try and build a property business. My hope is to buy cheap, tenant then remortgage as a BTL and use the money to repeat the process again. I am hoping to purchase 4/5 houses in 2 years to give me an income when my redundancy cash runs out. Then when I have the income I want to buy and sell property.

Any advice is really welcome but I would like help with the following if possible

1. If I buy for cash how long do I need to own the property before I mortgage it. 2. If I buy for £60k spend £20k renovating it and the market value is then £130k when I come to remortgage how much cash could I get out of the property. 3. Wil I be able to get a BTL mortgage without an income ( I will have an income from redundancy savings but no job). 4. What is the best way to do this, sole trader or company. 5. I am looking at a heavily discounted new build in Sheffield that has been heavily discounted as the builder has gone bust, because of this there is no NHBC guarantee and it must be a cash sale, if I buy this for cash will I be able to remortgage it, and can I buy an NHBC gaurentee. I don't think it is mortgageable at the minute because of the lack of a NHBC guarantee 6. I watch Homes under the hammer and other programmes and attend auctions when possible, is this the best way to buy or should I focus more on estate agents for bankruptcy sales! Or is there anywhere else I should be looking. 7. I have seen the we buy any home ads, do they sell the stock they buy cheaply

Any other advice would be great

Thanks in advance for any help or advice you can give

CheersMark

[Geezah]

Hi Mark,

1. 6 months for BTL property.

2. Up to 80% of the valuation depending crucially on what the monthly rent is as assesd by the chosen lenders valuer, NOT your letting agent or anyone else.

3. Yes, but you are limiting your choices. Risk is priced accordingly and as a BTL borrower with no income from employment you will be perceived as a greater risk and therefore deals will be more expensive overall.

4. Best to discuss this with an accountant, although as a mortgage broker and a landlord, financially for me, a limited company makes sense but again you are limiting your choice of lenders as mainstraem BTL lenders will not lend to Limited companies. So I structure my portfolio as a sole trader.

5. Unless the property has NHBC or other similar guarantee, (Zurich, I think?) mainstream BTL lenders won't lend. I suggest you may want to speak to an architect ref your second point. Once you have owned the property for 6 months and it has a certificate, you can remortgage.

6. The best place to buy is wherever you get the best deal.

7. I dont know.

Hope this helps, good luck with it. It's difficult to advise without talking with you, If you need any further help just personal message me.

Alan

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[markg1]

Cheers thanks for info?

I will try and do some digging on NHBC certificate, hopefully if I can sort it I will have a good deal to start me on my way

[Melboy]

I am looking at a heavily discounted new build in Sheffield that has been heavily discounted as the builder has gone bust, because of this there is no NHBC guarantee and it must be a cash sale, if I buy this for cash will I be able to remortgage it, and can I buy an NHBC gaurentee

It is extremely unlikely that you will get a mortgage on a new build without the NHBC certificate from my experience on this matter.

NHBC inspections are carried out at all levels of construction and signed off as satisfactory.

[Richlist]

I am looking at a heavily discounted new build in Sheffield that has been heavily discounted as the builder has gone bust, because of this there is no NHBC guarantee and it must be a cash sale, if I buy this for cash will I be able to remortgage it, and can I buy an NHBC gaurentee

It is extremely unlikely that you will get a mortgage on a new build without the NHBC certificate from my experience on this matter.

NHBC inspections are carried out at all levels of construction and signed off as satisfactory.

Why not contact the NHBC and try to find out why no NHBC cert has been issued. Presumably the builder was NHBC registered and had the NHBC inspections carried out up to the point of bankrupcy ? I was in this same situation many years ago and I brought in another NHBC registered builder to continue the build and ended up with the important NHBC certification. Not all is lost yet........the NHBC will know the details. Good luck.

[Melboy]

I watch Homes under the hammer and other programmes and attend auctions when possible, is this the best way to buy or should I focus more on estate agents for bankruptcy sales! Or is there anywhere else I should be looking.

I too watch HUTH I have also been to auctions but I have never bought from an auction.

In 25 years of buying and renovating property I have always sourced through EA's or they have contacted me. In that time I have come to the conclusion that the most desirable property deals don't even reach the advertising stage and you can draw your own conclusions from that statement.

I think with auction property there has to be a good reason why it is there in the first place and I think some of the financial figures banded around on HUTH don't always add up to my mind and can be very dubious. There is also a great differential between the South and the North when it comes to auction prices achieved.

About 4 years ago I had to sell my late Mothers bungalow and it was proving to be difficult to shift for no particular reason so it went to auction after 6 months but as soon as it went into the auction catalogue it was sold for the asking price I was hoping to achieve anyway and it was a very acceptable selling price.