John Constant

Registered with Property118.com
Sunday 1st September 2013


Latest Comments

Total Number of Property118 Comments: 103

John Constant

10:15 AM, 23rd September 2019
About 4 months ago

Starting from scratch - HMO?

Reply to the comment left by Neil Patterson at 23/09/2019 - 09:19
Prath,
you should understand also that it is not so straight-forward for a First Time landlord to obtain a HMO mortgage - many lenders require you to have some experience with a "vanilla" BTL before tackling a HMO. This can be as little as 6 months or as long as 2 years with some lenders.

An experienced broker will be able to assist with your queries, whether it be for a standard BTL property or HMO. We would be delighted to help if you need it. Neil has our contact details.... Read More

John Constant

14:23 PM, 10th December 2018
About A year ago

Help with passing property rental to my wife for tax purposes

In my client's situation, it would've raised a whole load of other problems regarding taxation costs etc. It would have been throwing the baby out with the bath water. As I said in my original post, I found a lender who accepted the AST value, rather than what the client actually received in his bank account.... Read More

John Constant

13:08 PM, 10th December 2018
About A year ago

Help with passing property rental to my wife for tax purposes

Reply to the comment left by Mark Alexander at 10/12/2018 - 12:11
You are quite right for this particular case Mark, but I wanted to draw your readers attention to the situation where a sole owner passed beneficial rental income to a spouse.
My client did this without fully considering the implications for the portfolio, and left himself pretty much high and dry.... Read More

John Constant

11:12 AM, 10th December 2018
About A year ago

Help with passing property rental to my wife for tax purposes

Just a quick note regarding mortgages in this situation. It will not apply to you as such, but similar situations where there are more than 3 properties in the portfolio could leave yourself open to falling foul of the new portfolio income assessment calculations. I recently had a situation where a sole owner had given his wife beneficial ownership of 40% of the rental income. He asked us to remortgage a couple of the properties, but because he wasn't (personally) in receipt of the income, lenders were being ruled out because he didn't meet their portfolio income requirements. Fortunately, I did find one particular lender who accepted the AST value, rather than the received rental value and the day was saved. However, the rate was inferior to that he coud have expected to receive had he kept the full rental to himself.... Read More

John Constant

16:49 PM, 20th March 2018
About 2 years ago

Should I buy a third buy to let?

Peter,
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