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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.

the most impoertant point to consider about LLPs is that many more lenders dont like them or lend to them, compared to a Ltd Co.. if you want to shrink the choice of lenders availalble to either Ltd Co's or individuals, LLP's hit the spot. Whatever tax advantages you think you are gaiining by using them will be eaten up buy higger mortgage costs, at least in part.

@@KevinWrightProperty Thank you, that's good to know. In fact we are new investors and plan to speak to an accountant. Initial research LLP ticked some boxes namely limited liability but without the overhead of incorporating. Glad I asked. I know some investors are using them for other reasons.

@@MrDatimms I would be very surprised if the cost savings of not incorporating were obliterated by the higher mortgage costs of using an LLP structure due to the reduced availability of mortgage products and thus higher rates charged. Another point ot check with your accountant is the availability of writing off your mortgage interest payments as a business expense. You can do this as a Ltd Co but not as an individual. As LLPs are union of individuals, not being able to claim mortgage interest as a business expense is another cost escalation.

glad you like my content. If you have a persoanl mortgage, that has no impact on being able to finance a BRR project subsequently. Define what yo mean by an 'fha' loan?

thanks for your question. There is an almost endless variety of non-standard construcution properties in the UK. Standard constrction being deemed as either brick or brick & breezeblock. There will be timber-frame, stell and modular variants but the most variations would be the differing forms of concrete construction. The first consideration in determining a NSC property's mortgagability is when was it built? 21st century will be fine, as it has to conform to the latest Building Regs and the build quality is sufficient. If it was built mid to late 20th century, the question becomes, was it built for the private or public sector? If the public sector, this is where the problems begin. Why? because these properties were built to a budget, not a quality. Now, particuarly with concrete, it becomes a question of who exactly built it and how many corners did they cut in build qaulity to win the tender. Out of neccessit,y more than anything else, mortgage lenders have built up a pretty encyclopedic knowledge of all the different variations, identfiable by their brand name. e.g. Bellstone to be able to determine which variantsthey were willing to lend on and vice versa. A good mortgage broker will be able to determine from the brand name how many, or few, lenders are in the mix to lend. - if you need help with this the guys in our brokerage can assist you. With regard to high offers being put forward, this is no guide to its mortgageability whatsoever. Typically these tough to mortgage properties come to market up to a third cheaper than a standard construction similar property in the same vicinity. The apparent bargain price brings a flurry of offers from people seeing nothing but the low price and think they have bagged themselves a bargain. They pull out once they realise the problmes getting a mortgage on it and that it is cheap for a reason.

Thanks for this detailed information Kevin very much appreciated. The house itself is absolutely solid throughout and doesn’t have any weathering visible unlike most brick built buildings of same era. I’m guessing one of the advantages of buying non standard would be for buy to let as they still command the same rent for lesser outlay. If I get a financial windfall this would be a good route to explore 😮

wmost welcome and you are correct, mortgage lenders generally have stong views on lending for NSC properties but tenants generally dont give it a second thought and will pay the going rate for a property of that size in that vicinty regardless of what its built from.

yes you can do that Bogdan. Thanks for your liking my videos

thanks for your positive feedback Bogdan