In my last blog about Commercial Lending Facilities I talked about my recent experience at the National Association of Commercial Finance brokers 20th Anniversary Celebrations.
I know for sure that many people will be shocked at my revelations that there are over 30 lenders currently providing property development finance and more so that the majority of them claim to be struggling to hit their lending targets. I asked the question in my last article“could it be that “self limiting beliefs” amongst lenders, brokers and perhaps more importantly, would be borrowers, are prolonging this recession?”
In this blog I will share my perceptions of what’s going on. Continue reading The Untapped Abundance of Commercial Lending Facilities
On Friday 23rd November 2012 I was honoured to be invited to attend the 20 year anniversary of the National Association of Commercial Finance Brokers “NACFB” as a VIP guest.
This article is to be the first in a series of blogs talking about the commercial finance industry, in particular my personal perceptions of commercial funding post credit crunch. I can assure you, the discussions I was a party to at the NACFB event were very different to anything you have read in the newspapers. For example, did you know that there are over 30 active property development finance lenders in the UK and yet the majority of them are struggling to hit their lending targets? That’s not what the Press tell us is it? Could it be that “self limiting beliefs” amongst lenders, brokers and perhaps more importantly, would be borrowers, are prolonging this recession? Continue reading NACFB Celebrates 20 years of Professional Commercial Finance Broking
I have just received a property tax question from a lady called Barbara which I’m not sure of the answer. Therefore, I am publishing her email as an article to seek the opinion of other readers. I have also invited my accountants to comment too as I suspect there may be a way for Barbara and her husband to achieve CGT roll-over relief by creating a limited company for the purpose of property development (refurbishment and sell on) given their slightly unusual circumstances.
Barbara’s question relates to CGT roll-over relief and reads as follows:- Continue reading Property Tax Question – CGT roll-over relief
With so many buy to let property investors now considering buy/refurb/sell deals I feel the time is right to explain the tax treatment of property development vs property investment.
For example, did you knowthat buy/refurb/sell deals are taxed as a trade (property development) and CGT annual exemptions can not be claimed on disposal?
Continue reading Tax Treatment of Property Development vs Property Investment
I received the email below from one of my readers yesterday morning requesting advice on buy to let property portfolio building. I’m happy to share my thoughts and will do so in due course in the comment section below this article. However, I thought my reader may appreciate a variety of opinions so I emailed him back and offered to publish his email as an article so that other people could also comment. He agreed but wanted to remain anonymous which is obviously fair enough. Continue reading Buy to let property portfolio building – Readers Advice Request
We are witnessing a significant rise in the incidence of some banks refusal to offer new or extended terms to development loan facilities. In extreme cases, some banks are demanding early loan redemption. This often leaves the borrower with a major headache in a market where commercial lending is restricted and competitive alternatives are not immediately apparent.
There is no doubt that some banks are ‘shoring up’ their liquidity positions by not lending as broadly as they have done in the past, but there are still a good number lenders very much in the market. Continue reading Development Finance is still supported in the current market
Health and safety inspectors are cracking down on landlords who fail to manage building projects on their rental properties – even if they employ professional builders to do the work.
The Health and Safety Executive (HSE) is warning that landlords face prosecution if they flout a little known construction regulation. Continue reading Landlord repairs targeted in health and safety crackdown
After moving into my ex-HMO and refurbishing it last year, I decided that I wanted an open fire or woodburner. I’ve always wanted one and seemed to have come so close a few times but then sold a house before my dream could become a reality – husband citing it as a poor investment.
During the renovation the builder found the old hole for the fire, the surround which had been ripped out years ago in a fit of “modernisation” (bastards). I did some research and gawped at the prices of surrounds, flues, hearths and decided that I’d have to have the heating on full blast for the next 10 years to make it cheaper than fitting a fireplace and its paraphernalia. You see, I also needed to build the chimney up as someone had decided to take the stack down to just above the tray which was now leaking. £££££s or should I say, bills, were floating before my eyes. It was whilst salivating over what could be that I met THEM…………… Continue reading I Should Have Known Better
A property developer and lawyer are starting jail sentences after admitting a series of buy to let frauds.
Legal executive David Kitching and developer Franco Campagna hatched a plan to scam cash from buy to let mortgage lenders when Campagna’s property development company ran in to trouble when the property market collapsed.
Campagna told Lancashire Mortgage Corporation, a bridging firm, that the loans he requested were for clients buying rental investments. Continue reading Buy to Let Mortgage Fraudsters Jailed
Developers are looking at renting their homes instead of selling them as demand for buy to let hots up.
As property prices fall and buyers have trouble in tracking down mortgages, renting out homes gives developers a better financial return.
The latest to consider switching from building or refurbishment to buy to let is Rushbond, the firm converting Crispin House, Leeds, in to 82 flats. Continue reading Developers Switch to Buy to Let