Mervin SX

Registered with
Thursday 10th October 2013


Trading Status
Sole Owner

Providing essential rental accommodation since

Number of rental properties owned
11 –20

Insures properties through a broker recommended by Property118

Latest Comments

Total Number of Property118 Comments: 35

Mervin SX

8:46 AM, 17th November 2018
About A year ago

Can Lenders help with S24 - High fees Low rates?

Reply to the comment left by Seething Landlord at 15/11/2018 - 00:17

Section 24 applies to interest rates and mortgage arrangement fees. So no easy way around this stupid change!

I did take advantage and pay early repayment charges on some of my mortgages, to switch to lower rates - the ERC is tax deductable before S24 came into place. It worked out a whole lot better for me.... Read More

Mervin SX

9:34 AM, 25th August 2018
About A year ago

Can I pay all my tax in the Isle of Man

UK taxes must be paid for all income generated or earned in the UK. This is irrespective of you being a UK non-resident for tax purposes. Read More

Mervin SX

8:13 AM, 14th May 2018
About 2 years ago

Return on Investment or Capital Employed Formula?


Most of my discussion refers to ROI. And I can see you are comfortable with arriving at the £2880 net income.

Another measure is ROR (return on revenue). This is the percentage of net income over total rental income. The total rental income per year is £600 x 12 = £7200.

So, for this example, the net ROR is 2800/7200 = 40%

Hope this helps.

Mervin... Read More

Mervin SX

13:29 PM, 13th May 2018
About 2 years ago

Return on Investment or Capital Employed Formula?


There are lots of ways you can look at you BTL numbers. I will explain below how I look at mine:

I use net Return on Investment (ROI) as a basic rule of thumb for selecting my investment BTL property but I also check at the end of every tax year, how my portfolio is performing. I only purchase if the ROI is over 8% net and I currently run my portfolio with a ROI of 22% net. Here is how to calculate net ROI:

Let’s say you are looking at a property of £100,000 and the cost of purchase includes a deposit of £20K, stamp duty of £3K, mortgage broker & application fee of £1K, mortgage product fee of £1k, legal fees of £1K – in other words, a total of £26K invested. Now let’s look at your rental income of £600/month, mortgage interest payment of £250/month and other costs of £50/month. This gives you a gross income of £300/month and an income tax of approx. £60/month (assuming you are a 20% tax payer and you have other income that takes you over the free allowance, etc.). Therefore a net income of £240/month or £2880/year.

Therefore, the net ROI on this investment is the percentage return based on you net income = 2880/26000 = 11.07% net ROI. Now which savings account or ISA can gives you that? Of course the variables here are the mortgage interest payment, other costs and your income tax.

I also look at net Return on Revenue (ROR). This is the percentage of net income against the revenue and tells you how much of your rent are you able to turn into net income. I currently run my portfolio at approx. 50% ROR net. For the above example = 2880/7200 (12 months rent) = 40% net ROR.

Hope this helps.

Mervin... Read More

Mervin SX

16:28 PM, 27th August 2017
About 2 years ago

I want to optimise my revenue allowances from new investment !

With regards to a mortgage arrangement fee - I have also always included this as a revenue cost.

But for the first time, I am about to add such a fee to the mortgage outstanding - can this also then be included as a revenue cost?... Read More