THE QUESTION

If we were purchasing a property for cash would it be possible to purchase using two bridging providers to provide 100% of the purchase price?

The first one would have the first charge and the second would provide bridging on a second charge basis (such as Precise) and both forwarded amounts would be combined to form a 100% cash purchase.

The intension here isn't to deceive either...

When you’re buying property as an investment you need capital to put down a deposit – and then it’s locked into your property for six months or more, until you can remortgage.

With this approach you’ll be lucky to manage to add two properties a year to your portfolio, unless you have a very big nest egg.  The do you want to lock your capital into a mortgage? ...

Are you looking out for unmortgageable properties with problems that you can solve? They’re lucrative investments if you know how to leverage them – and with smart financing, using bridging they are great opportunities.

These are all great for intelligent investors, but mortgage lenders won’t touch them.

1. A derelict property
2. Properties where part of the building is in severe...

THE QUESTION

If I buy a property for cash through a Limited Company, does the 6 month rule regarding remortgaging apply?

THE ANSWER

Some lenders choose to apply a 6 month restriction, whilst others don’t.  Actually, it isn’t really a rule, just a restriction, but it has commonly become known as ‘the six month rule’.

For those lenders that apply it, the point to get...

THE QUESTION

Do you have experience with renting Retirement properties?  Is it a good idea to buy a flat at the seaside and rent it as a retirement property?

THE ANSWER

There are two issues here:

1. Renting properties that are part of a retirement complex.
2. Buying a flat and renting it to a retired person – or people.

Number one is a great idea if you have cash to burn! No mortgage...

THE QUESTION

Does bridging lend enough to cover the purchase price and the refurb cost?  If not, how can you get the maximum amount of funding?

THE ANSWER

Most bridgers lend 70% of the purchase price, but a handful lend 70% of value. This is great if you are buying below market value (BMV) as you can use the discount towards your deposit, but to buy with no money down (NMD) you would need...

THE QUESTION

I’ve just been offered an HMO in need of some work.  There's about £20k in the deal, and it could be flipped or end up as NMLI (no money left in), but it's a Wimpey no-fines house, i.e. poured concrete construction.  I have heard that Birmingham Midshires lend on these, but considering an exit strategy (immediate or in future) is it wise to go down this route?...

THE QUESTION

I’m looking for finance to buy a small B&B, what do you recommend?

THE ANSWER

Small B&Bs tend to be problematic to finance.  This is usually because the owners have a narrow view (encouraged by their accountant) of the property’s value based on keeping the taxable profits of the business down to a minimal level.

Of course they benefit by pocketing almost...

THE QUESTION

I have seen a property that has 60 years remaining on the lease with great potential to develop and sell, but the price is at market value and the length of the lease makes it a risky proposition.  If we could get a lease extension prior to purchase that would work, but agent claims it will cost £107,000.00 on a property valued at 600,000.00.  I need expert advice...

THE QUESTION

Serviced Accommodation (SA) seems to be the new HMO in terms of the property strategy everyone is talking about doing.

I can see the attraction for an investor. Like HMOs, SAs offer a superior monthly cash flow, but do I need any special mortgage for a property I am going to let out by the night or can I use a normal BTL mortgage?

THE ANSWER

You cannot run a Serviced Accommodation...