THE QUESTION

Can you buy a property for cash, using other people’s funds loaned to your Limited Company, carry out a refurbishment and then remortgage on to a BTL, hopefully releasing some equity to pay back the investors their initial stake in addition to their margin of interest?

Following the remortgage the property will be solely owned by your own Limited Company and the initial...

THE QUESTION

Here’s a scenario:

• Purchase at 150K
• Exchange and then carry out works expected to bring valuation to 185K
• Keeping a strong and detailed record of all the building works, when the valuer comes and tells you (hopefully) it’s worth the full 185K

How does the lender feel when they know you only paid 150K?

Also how does the vendor get their 150K, is that just a paper...

THE QUESTION

I’ve been advised to go out and find deals and the finance will follow. I have found a few suitable projects, done the sums and offered to purchase.  We lost a deal earlier in the year as we failed to finance it and we currently have two deals on the table that are good few weeks down the line and the vendors are starting to get itchy feet (quite understandably).

This...

THE QUESTION

When looking to buy a BTL property at what point does the length of the lease term start becoming a factor and should be taken in to account? 

THE ANSWER

80 years is a pivotal number, because you cannot get the freeholder to extend the lease until it reaches 80 year point. However, from a mortgage lenders point of view 80 years is not that pivotal, it is quite easy to get a...

THE QUESTION

What’s the best way to fund an auction purchase?  Do I need bridging or will any lenders give an undertaking to release funds WITHOUT knowing the final purchase price?  And who can beat the 30 day completion date deadline?

THE ANSWER

You have a small number of finance options when buying property at auction:

1. Mortgage
2. Your own cash
3. Someone else’s cash
4. Bridging...

THE QUESTION

I am considering buying a flat that was converted in 2008 – without planning permission.  The landlord tried to get retrospective planning permission two years after conversion (2010), but the Council rejected the application.

Now the property is up for sale and I think a bridging loan wouldn't be a problem, but a mortgage company would ultimately require an indemnity...

THE QUESTION

I want to release some equity from properties I currently have to purchase some more.  Who would be the best person to give me advice?

I'm also trying to find out how easy a property is to remortgage once it's been renovated.  Is there a specific period of time you have to wait before you can remortgage?

THE ANSWER

My first tip is to pick an adviser who is an investor...

THE QUESTION

I’ve found a shop currently let at £350 pm with a separate flat above currently vacant, but will bring £300-350.  The asking price is £69k and, although I've had £60k rejected, they'll take £65k.

Firstly is this a good deal? What will it cost me to buy it with commercial finance? What should I expect to pay in monthly payments and are there...

THE QUESTION

We are working towards being able to buy houses outright with cash either to do up and sell on, or to rent out and remortgage later. 

Other than the obvious benefits of potentially getting better deals by being a safer bet for the buyer and not having to deal with things like bridging interest rates can you offer any guidance on the pros and cons of using this method?

I...

THE QUESTION

I am looking at a property block of flats that records show hasn't had any sort of planning for a conversion.  However, the land registry shows that one of the flats is on a lease. There are three dwellings in the block shown on the planning map. Does that mean that the property may have been converted without consent?

If they have no planning consent then can I offer to buy...