Lord Smythe

Registered with Property118.com
Wednesday 4th June 2014


Latest Comments

Total Number of Property118 Comments: 5

Lord Smythe

9:04 AM, 9th June 2014
About 7 years ago

Raising Capital or Retaining Cashflow on a Bank Base Rate Tracker

Mark - thank you this sounds encouraging and I will give it a go.

I am assuming this approach would not work with Mortgage Express as they are in effect in government hands now ?

Thanks to Chris and Puzzler its to be decided....... Read More

Lord Smythe

9:44 AM, 5th June 2014
About 7 years ago

Raising Capital or Retaining Cashflow on a Bank Base Rate Tracker

Reply to the comment left by "Mark Alexander" at "05/06/2014 - 08:06":

Mark

Thanks for your detailed reply and suggestions. I would wholly agree that in general terms we will see " further capital appreciation and a sustained period of low interest rates."

For the record the LTV is slightly below 75%. I have and generally do look at all alternatives to selling including other lenders and equity finance but in this case the lender is not doing further advances or will accept a second charge on the property.

So I feel my options are either sell or retain in the portfolio. My other observation is that the current stamp duty threshold at £250,000 continues to hold the market back and would limit capital appreciation unless one can comfortably value up property towards £300,000 ! There is talk this may change before the election but we will have to wait and see....

I am now on balance erring on the side of retaining the asset and the cashflow and await cashing in the future.

Thanks again to you and all contributors and I may return with further dilemmas !!

Lord S... Read More

Lord Smythe

22:46 PM, 4th June 2014
About 7 years ago

Raising Capital or Retaining Cashflow on a Bank Base Rate Tracker

Mine is with Basinghall so I think porting is out of the question... Read More

Lord Smythe

21:09 PM, 4th June 2014
About 7 years ago

Raising Capital or Retaining Cashflow on a Bank Base Rate Tracker

Reply to the comment left by "Neil Patterson" at "04/06/2014 - 19:43":

Neil

Excellent comments. Thanks.

Steve... Read More

Lord Smythe

17:40 PM, 4th June 2014
About 7 years ago

Raising Capital or Retaining Cashflow on a Bank Base Rate Tracker

Thanks for all the comments so far most helpful and further food for thought.

As to my circumstances, the debt pay off will be £20K so saving £400 pm in credit card repayments and £40K to add to new property or keep as rainy day fund as Vanessa alludes to as I feel there may be opportunities ahead and I avoid extension costs which if paid will not really add any monetary value to property.

I have not sourced or worked out where the £40k could be used as a deposit for another property but sometimes one needs to shift a property to lead on to another opportunity.

I dont think base rate will go up quickly and agree with Neil so there is reasonable margin to be had and my product will always be at a lower rate than other BTL products.

My gut feel is to sell if I can achieve over stamp duty level ( property is on for £270k) or if not retain and let out to bolster my cashflow. Perhaps a win-win scenario ?... Read More