denis knockton

Registered with Property118.com
Thursday 27th August 2015


Latest Comments

Total Number of Property118 Comments: 19

denis knockton

8:21 AM, 10th May 2018
About 6 months ago

Return on Investment or Capital Employed Formula?

Agreed. Stamp duty, valuation fees, legal costs and even the ancillary charges you pay out of your pocket should be included and are part of the capital you put in.... Read More

denis knockton

19:29 PM, 9th May 2018
About 6 months ago

Return on Investment or Capital Employed Formula?

I work on capital deployed basis too. Best way to see the opportunity cost. Also, you take into account all of your costs and that is very important to see the true net picture. When you do basic yield i.e. annual rent divided by market value, that is not taking into account of the costs although of course you can calculate it after deducting the costs as well but I would like to see what my net invested funds returned compared to other alternatives such as shares or cash in bank etc. Of course, as Mark says this does not include your capital gain or loss.... Read More

denis knockton

17:05 PM, 23rd July 2017
About A year ago

Remortgage now to avoid PRA rules from September?

Annie.

Don't make a hasty decision to sell. Although, the paperwork and the demand for info. from the lenders will appear huge at first, this is new to all of us, the landlords as well as to the banks. It will take a while to get used to it but we all will. The whole point is to ensure that those who are landlords and buying property know what they are doing. The banks want to see that the whole portfolio works and not just the individual application you are making. By all means, review your portfolio and look to reduce LTV any higher than 70 -75% as well as other debts. Best of luck what ever you decide to do.... Read More

denis knockton

16:19 PM, 17th July 2017
About A year ago

Remortgage now to avoid PRA rules from September?

Hi Annie.

Lenders have already started applying the new rules and certainly not waiting until 1st October. In my experience they have been using any application made since last Spring as a trial run to train their staff and get up to speed. So, I am afraid when you make your application now, you will find that they will ask to see bank statements, and depending on the lender ASTs for all the other properties you have mortgages on. They are not yet asking for cash flow and business plan but info. that is readily available such as mortgage statements for each property is asked for.

If you have any high rise above 11 storey, most up to date Fire Risk Assessment reports are asked for and the valuers value depending on the findings in the report. I had a valuation a month ago, the valuer is still hesitant to value the property even though the property has no cladding. The bag log of reports arriving means valuation reports are taking ages to come back on high rise.

If you are making an application on your company, they want to see the details of the personally owned properties as well!

I have been told that most lenders are now working on business plan and cash flow templates they will ask applicants to fill in. Larger brokers are also coming up with their own templates to assist their clients if the lender does not have a preference.

Brokers are encouraging people to make their applications before the PRA rules kicked in, but the reality is that they already have and there is a huge amount of info. lenders are demanding to see which also means the process is taking longer than usual. Allow yourself plenty of time.

You say you have personal debts/credit cards. Ensure all insecure debt is in order and any credit balances are emphasised in your application as buffer. They scrutinise every thing with a fine comb. If you can back up anything they ask with a documentation, you will be fine.

Good luck!... Read More

denis knockton

14:39 PM, 22nd February 2017
About 2 years ago

New Tenant - something not quite right

In central London, we get up to 2 years rent in advance from wealthy foreigners as well as foreign students. They do it to get a better deal and secure the property. It's fairly common. In your case, I agree with the other comments - something fishy. As a general rule, if it does not feel right, always walk away.... Read More