John Constant

Registered with
Sunday 1st September 2013

Latest Comments

Total Number of Property118 Comments: 99

John Constant

16:49 PM, 20th March 2018
About 8 months ago

Should I buy a third buy to let?

I suspect that the rules changing that you refer to are the PRA Portfolio rules. These are already in place and you will be pleased to know that you would not be classed as a Portfolio landlord, and therefore, will not be subject to the new regulations.

The new rule is that if you have 4 or more properties, the lender (and broker!) needs to undertake further financial diligence regarding the performance of the portfolio in the background - not just the property that you are seeking to buy.

What constitutes a "property?" Well, it includes holiday lets, properties owned through a limited company, ‘consent to let’ properties and all BTL mortgages owned solely or jointly by the applicant(s).

Alas, there is no easy rule of thumb here to see whether a portfolio is compliant. Every lender has their own method of assessing whether a portfolio is performing satisfactorily or not. Once you are a Portfolio landlord, you really do need the services of a good Mortgage Broker to guide you.... Read More

John Constant

16:35 PM, 20th March 2018
About 8 months ago

Main residence mortgage compliance on property now rented?

Hi Ian,
you mention in your text "over a period of time", so I assume that it has indeed been quite a while.

If this is the case, is there a rock solid reason why you still have it on a residential basis? I suspect that you are still on the lenders SVR, because the new lender seemed to be in the dark about your situation, until recently. Why not put a BTL mortgage the property? Do you need it on a repayment basis (if that's what it is on at present)? Have you considered Interest Only, as this is purely an investment property now? Chances are, you are probably paying more on a residential SVR than a good BTL rate. Swapping to a BTL mortgage would make the problem go away, and also give you a more appropriate form of borrowing.

If your intention is to keep the property on a repayment basis, you also have the option to take it on Interest Only, but make a monthly over-payment, thereby effectively keeping it as a repayment mortgage.

If you would like to chat through the options, please fee free to contact me.... Read More

John Constant

11:39 AM, 2nd January 2018
About 10 months ago

Croydon Council Croylease scheme

Hi Julia,

Neil has pre-empted my comments here about problems with your lender, if you have one. Potentially, you could be breaking the T&C's of your current lender if you let like this. The lender entered into a contract with you that they would allow you to let your property for a maximum period at a time, albeit with a rolling extension. However, it still allows the lender to get the property back if you have not kept up the repayments on the mortgage, for example.

There are lenders who allow 5 year leases, but they are few and far between. If you need to investigate this further, please feel free to contact us via my personal link.... Read More

John Constant

10:30 AM, 29th December 2017
About 11 months ago

I want to cash in and invest it for the children?

Hello Cheryl,
as advisers with a long-standing relationship with, we would be happy to have an informal chat with you. You have identified that there maybe taxation issues and you were unsure if you needed an Accountant; we cannot give advice on taxation matters, but we would need to ensure that you have taken this advice if you were considering purchasing a property within a Ltd Company structure. There can be advantages to this approach, but it all depends on your personal circumstances, as Neil said.
It is likely that there are many other issues that need to be addressed, but this is not necessarily the best method to do so, so if you would like to speak to someone about this, please feel free to contact me via my personal link.... Read More

John Constant

12:03 PM, 23rd June 2017
About A year ago

Is this conspiracy to commit fraud?

Yes, lenders would consider this in the same class as a new build.

Occasionally, some valuers (at the request of the lender) do "Desktop" valuations if there is a significant deposit. Valuers do not always visit the site.... Read More