Howard Reuben CeMap CeRER

Registered with
Friday 7th June 2013


Trading Status
Sole Owner

Providing essential rental accommodation since

Insures properties through a broker recommended by Property118

Latest Comments

Total Number of Property118 Comments: 362

Howard Reuben CeMap CeRER

16:03 PM, 25th August 2020
About 5 months ago

Any mortgage lenders out there if I have a CBILs application outstanding?

Hello Elizabeth

Many of the banks are showing sympathy for businesses and individuals who have been financially affected by the covid-19 pandemic. They are taking a view on a case by case basis and so because of that there are no hard and fast rules between them.

Some lenders will decline, some will accept, some will defer their agreement to lend.

One reason why it comes across as a negative situation is that albeit the loans and grants were being touted by the Government as a 'must have to help you to survive in business' proposition, actually what every single borrower has truly done is to present themselves as financially distressed, unable to fund themselves after just a month or two, and painting a picture that their finances are actually quite fragile with no savings or underpinning financial security to aid them through a short term downturn in business.

That may or may not have been the case for you personally, but that is the image every CBILs and BBL borrower has painted.

With that in mind, any new remortgage or purchase mortgage application is scrutinised individually and extra questions, forms and supporting evidence is required.

This may lead to a perfectly fine decision and 'carry on as usual' mortgage application, or it may not. Either way, you won't know for sure unless you speak with a Broker who can assess your current situation, and source the options you are eligible for.

You can contact me and my Team via my profile link.

Hope this helps.... Read More

Howard Reuben CeMap CeRER

14:19 PM, 4th April 2020
About 10 months ago

Is the stage for a strong rebound once the shock passes?

Reply to the comment left by Mick Roberts at 03/04/2020 - 16:24
100% agree Mick 😁👍

When the pandemic passes and the property and finance world starts to recover some sort of normality, the lenders will not immediately jump back up to high LTV offers, so yes, reduce balances now, refinance all mortgages on to lower rates now, and take this time and use it as an opportunity to focus on the BTL business, before the market restricts further and the recovery takes longer.... Read More

Howard Reuben CeMap CeRER

12:54 PM, 15th January 2020
About A year ago

R2R challenges?

Reply to the comment left by Richard Peeters at 15/01/2020 - 12:22
Hello Richard. We work on a specific, personalised and case-by-case basis, so please contact me for advice on which lenders and products you may be eligible for.

There is no one-answer-fits-all in this particular strategy (so many other factors are crucial too, eg portfolio size, experience, assets / liabilities, age, net income, credit status etc), so whereas there may be an agreement to lend by a commercial mortgage lender, or holiday let lender etc, they may say yes to some people and no to others. Same as all mortgage applications of course.

In my experience there is absolutely no benefit to anyone for a list of lenders to be banded about, because the lenders only want to receive properly packaged cases from experienced brokers who carry out a lot of the initial underwriting and due diligence up front for them, and not to be bombarded by tyre-kicking enquiries (which happens a lot) that take up a huge amount of their resources for no return.

Our lender partners would not take kindly to me listing them in this type of 'quirky' discussion.... Read More

Howard Reuben CeMap CeRER

12:09 PM, 15th January 2020
About A year ago

R2R challenges?

"..... recommend ANY mortgage lenders who are happy to lend on R2R properties?" .... simply, no.
Sub letting is a non allowed activity and is stated in mortgage product criteria and reiterated in the mortgage Offer (ie the legally binding contract between lender and borrower).
Unencumbered properties may be ok for R2R, because only you own it. Mortgaged properties are of course also 'owned' by the bank due to the charge secured on the property, and the T's and C's of the Offer must not be breached.
Unless a prior agreement is formally confirmed by the lender, the property (irrespective of whether it is a single let, holiday let, HMO or otherwise) must only be let out as per the product criteria stipulations.
As also mentioned in earlier posts, having the wrong mortgage in place may also invalidate the property insurance in place too.
We are a very busy property investor focused mortgage Firm, and yet we do not get involved in funding R2R schemes at all. We have never knowingly enabled a new mortgage for a property that was subsequently sub let out.
So, to conclude, there may be lenders and insurance companies providing solutions for R2R scenarios, but be wary of the legal position for you, and the people who live in your property. The occupants deserve a peaceful enjoyment of your property and should any misfortune arise and a claim is made against your insurance, you need to make sure that the policy is not null and void due to an occupancy which breaks the mortgage terms.
caveat emptor... Read More

Howard Reuben CeMap CeRER

15:52 PM, 12th November 2019
About A year ago

Bare Trust as IHT mitigation tool?

This is a matter for a tax adviser, however I also have a couple of notes, too.

Firstly, because of the additional IHT relief for main residence ( I think (if this can indeed be applied) then the sum is;

£1.5m (higher value used as 'worst case scenario')
divide by 2 (each sisters share)
= £750K

£750K - £325K (nil rate) - £150K (19/20 - additional rate) = £275k.

£275k x 40% = £110k. = IHT liability

And so it's the £110k which needs 'repaying' / protecting.

(ps the £150k relief is increased to £175k for the 20/21 tax year)

There are so many ways to reduce / mitigate / eradicate and also repay this sum, and here is another one;

* whole-of-life life insurance policy, written in to Trust, for £110k, for a non smoking 'late 60's' person, could be arranged at a (standard rate) monthly premium of approximately £300pm.

For a 59 year old £180pm
For a 49 year old £125pm
For a 39 year old £85pm

And WOL life insurance policies are extremely flexible so as regular reviews are carried out and adjustments to sums assured are required, it's simply an internal amendment and no fees or professional charges are necessary. In fact, we don't charge to set them up in the first place either.

Now, for some people, the immediate thought is that £300pm (for a 'late 60s' policyholder) is a lot of money. However, the actual fiscal balance is > pay out £110,000 (at any time from today onwards) .... or £300pm. If - in the worst possible situation - the lady died one day after the policy started, all that has been paid out is £300. And in return, her Trustee would then have the full £110,000 to pay the tax man.

Insurance is a risk and there are balances to consider.

So, this is just another option, in addition to the estate planning Trusts, loan arrangements, investment bonds, etc.

The above is not personalised advice but simply a generic overview of possible options (which will only be formalised after our Advisers have carried out a proper Fact Find, received the specific IHT tax liability from a professional tax adviser, and we then provide recommendations and insured advice).... Read More