Most investors aim to be able to buy houses outright with cash either to do up and sell on, or to rent out and remortgage later. 

Cash buyer status is considered by many to be property investor nirvana and gives you multiple advantages over people who are mortgage-dependent.

Speed: purchase of a property can be completed in a matter of days. If that is important to a vendor, this will blow...

THE QUESTION

Is £25K enough to get started in the property industry? Local 2-bed terraced houses are around £200K.

I have around £200K equity in my property and I have recently taken out a new mortgage on the family home.

I am a builder so I can improve properties easily.

THE ANSWER

The big plus is your background, you will be able to take on dilapidated, problem properties...

This strategy is something I teach as part of the Ninja Investor Programme and it’s often a revelation to my students.  It’s all about being smart with your financing.

There are some criteria to take into account:

•  The property needs refurbing and is currently valued well below market value in comparison with its neighbouring properties.
•  It needs to be vacant
•  ...

THE QUESTION

I’m looking at buying at auction with a mortgage this month with an 8-week completion through my limited company.  I have a 30-35% deposit, but need to know which mortgage lenders have the quickest back office at the moment?

THE ANSWER

This is a 'how long is a piece of string'?  No mortgage lender has a consistent time frame for processing, processing times...

Mortgage underwriting is an exercise in risk mitigation.  The cheapest rates are only available where lenders have mitigated the most risk.  This includes your personal circumstances, the type of property you want to mortgage and every little detail of your financial track record.  These lenders will decline to lend if there’s even a tiny issue that happened years ago.

The...

Bridging finance is ‘******* expensive!’ in most people’s minds.

This still largely true if you’re using it for its original purpose, buying a new main residence before selling your current one but that is a small percentage of the bridging market. Commercial use is the main way bridging is now used i.e. to make money on properties you don’t actually live in. ...

The first question I get asked whenever I mention bridging as an option for property investors is “Isn’t that expensive?” - usually accompanied by a sharp intake of breath!

My response is usually “Compared to what?”

If you’re planning to use bridging to finance your main residence, yes it is.  The interest rates are higher than traditional mortgages....

THE QUESTION

Can I purchase a property in my name, using a Furnished Holiday Let (FHL) mortgage and THEN run the holiday let through my limited company?

THE ANSWER

You can purchase a property in either your personal or a limited company name using a Furnished Holiday Let (FHL) mortgage, they will lend to either.  Your limited company can operate it and charge a management fee, typically...

If you’re refinancing a property you’ll be visited by the lender’s surveyor to value your property.  As refinancing normally is the result of having done a refurb, you’ll need to be well prepared for this.  Don’t assume that the surveyor will wander around your property and be impressed by what you’ve done!

It helps to know the surveyor's mindset...

THE QUESTION

We want to get started in property with our first UK buy-to-let (BTL). I am not a UK national, although my wife is British, but has been living outside UK for the last 3 years.

We had some discussions with a property company, who recommended putting the property in her name as we can get better rates. However, I’m not sure if she is considered as a UK resident while living...