When I mention bridging finance as a means of funding a property purchase most investors do that sharp intake of breath and, inevitably, say “Isn’t that expensive?”
Most people see bridging as an expensive option as the interest rates are much higher than a mortgage - but, for the smart investor, bridging is only expensive if you don’t use it intelligently.
If you:
That depends on your vision of the future. If you’re in it for the long haul then maybe, but if you’re looking at it as a business decision you need to know the facts.
Regulated Tenancies pre-date ASTs (Assured Shorthold Tenancies) as the rental contract used between landlord and tenant. 1st...
It’s not just property investors who are aware of the state of the property market today - it’s aggressively a seller’s market, with home buyers struggling to find a property. Mortgage lenders, estate agents and even people who aren’t looking for a new home right now are aware that properties are snapped up as soon as they’re listed.
The result is an...
I am looking to buy a decently priced (BMV) house which also has a value add opportunity to convert the loft to raise the value a bit more. My mortgage advisor says I cannot get a BTL mortgage until I've owned the property for 6 months, but I'm hoping to purchase it in August-September via bridging, get the loft converted in October, and be ready to refinance at the highest value...
There are many different types of bridging loan - the secret is knowing the difference and ensuring you get the one that best fits your investment.
Despite most people’s response to bridging being a sharp intake of breath, followed by the observation “Isn’t that expensive?”, bridging is actually a very effective way to finance an investment and has all kinds of...
I'm constantly looking at properties to add value to, but they always seem to be marketed by the estate agents at finished value - the renovation cost i.e. with little or no profit margin once complete.
Or they sell at auction for way too much.
What am I missing?
Getting all your money out (i.e., 25% deposit and refurb costs) at the point you refinance is a lot harder...
Less than 5% of people in UK invest in property - so it’s not for everyone. There are plenty of uninformed people who will tell you it’s a mug’s game and advise you not to risk your money, but if you have the desire and are willing to learn, it’s probably one of the least risky ways to turn a modest cash pot into a substantial profit.
So where do you start? ...
Can you buy a property on auction with a mortgage?
Theoretically, yes, BUT mortgage lenders have, with few exceptions, struggled to fully underwrite and get their offer out in time for conveyancing to be completed in the timeframe required by auctions - usually 28 days, sometimes less. The same goes for most residential conveyancing solicitors, some are of the view...
The stamp duty holiday for a large part of 2021 created a buyer’s market - in fact some estate agents were desperate for more properties to sell. But as we all know trends change and as property prices rise the pendulum may swing the other way.
However, a smart property investor doesn’t look at the overall property prices, but seeks out the juicy deals that aren’t within...
I’ve had an offer on a flat/bedsit accepted. The estate agents floor plan shows the total floor space as 26.8m2. Will this be a problem when I apply for a BTL mortgage? Am I right in thinking lenders have a minimum 30m2 minimum figure?
The other option is to decorate throughout and sell it on. Are residential mortgages easier to acquire on flats this size making...
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