Tag Archives: Property Investor

Looking to get into property investment or expand your portfolio? Buy to Let Property Hotspots, Latest Articles, Property For Sale, Property Sales & Sourcing, Property Sourcing, UK Property Forum for Buy to Let Landlords

Back in September 2013 I wrote an about an HMO investment opportunity which could be of interest to people wanting a relatively low risk, low hassle investment so far as property goes. It was a sponsored article and every enquiry raised funds to help support the running costs of Property118. Interest levels were reported to be very high and a sufficient numbers of enquirers went on to purchase these investment to prompt the company to ask us to re-run the article. Looking to get into property investment or expand your portfolio?

You should, of course, do your own due diligence before committing to making a purchase though as we do not take any responsibility for any purchase decisions you make. I’ve used the same PR creative for the deal below where you can request a PDF document containing a lot more details. Please note that the PDF document will usually be sent to the email address you provide within two working days although we are not in control of this process.

[display_iframe src=”/wp-content/uploads/2014/01/Keystone118-NEW.html” height=”1060″]


Letting a residential property to use as a detox retreat Latest Articles, UK Property Forum for Buy to Let Landlords

Hello,

I am looking to set up a holiday ‘detox retreat’ in the Cotswolds where people stay for a week at a time in individual rooms (similar to a holiday home but with individual rooms). I’m thinking of options but considering renting a large 4/5 bedroom property close to me (looking initially for a 6 month contract with the option of renting long term), but I’m not sure if I would be able to rent a ‘standard residential property’ as the property would be run as a holiday home business? I am thinking of purchasing a property in the future, if the business works but I would prefer to rent initially.

I am an experienced property investor and have a number of properties that I rent out, but this is a new area so looking for some advice on the rental issue. Letting a residential property to use as a detox retreat

Thanks for your help.

Helen


Housing Bubble fears – genuine or an overreaction? Latest Articles, Property News

There has been a great deal of commentary in the press the last couple of days raising fears of a housing bubble.

Rightmove increased its forecast for the year from 4% to 6% leading to headlines calling for government to do something about concerns of a debt fuelled crisis in the housing market.

Yes prices are rising, but we are seeing sustained recovery for the first time since the credit crisis outside the economic microcosm of London?

It is this recovery for most of the country, in areas where prices have fallen or been static for a long time and not just one area, that has surely seen the forecast rise recently.

Rightmove report asking prices in London are up 8.2% on a year ago with:

West Midlands up 6.8%

South East  up 5.6%

Wales up 3.8 %

East Anglia up 0.8%

The North 0%

Yorkshire and Humberside fell 1.3%.

Overall in the UK asking prices are 4.5% higher than this time last year and have increased on average by £16,000 so far in 2013.

So the questionare:-

  • are we right to be worried?
  • what factors are involved
  • and can we do anything about it?

First of all we need to consider what is really causing prices to rise. Is it demand lead where we are all earning more money, unemployment is down and mortgages are easier to obtain?

Alternatively is it the lack of supply in new housing that is putting the upward pressure on prices?

In terms of industry sector contribution to GDP (Gross Domestic product – the output of the economy) it is the building industry that suffered the worst during the recession and is taking the longest to recover.

In terms of scale, the supply side of new housing has suffered more than any recovery in the economy recently, so it may be this which is the biggest factor for the country as a whole. However, in London there have been many reports that foreign money, especially from Arab states and China, is being invested into the London housing market and could be an external factor fuelling demand lead increases that we can’t control.

At some point limiting factors such as purchasers income and the size of deposits required will come into play with income multipliers and maximum LTVs only able to sustain a certain level of house prices before demand slows back down. This is where regulation of lending could dampen an over heating market putting in place restrictions on lending criteria.

One of the biggest and most immediate fears of property investors is the Bank of England increasing the Bank Base Rate to curb any house price inflation. This is now less likely as the BofE are no longer just targeting inflation levels, but also have the wider remit of encouraging the growth of GDP. Therefore it is less likely that they would consider harming the recovery by increasing interest rates, and more likely that they would look to use regulation of lending to control this specific inflationary pressure.

The Bank of England’s Financial Policy Committee will meet tomorrow, when it will reportedly discuss the issue of a housing bubble and what action it could take.

I certainly see no evidence that we need to panic yet, but it would be very interesting to get readers thoughts on this subject.Housing Bubble


Our own Buy to Let Mortgage sourcing system and calculator Buy to Let News, Latest Articles

I have just finished updating all the products on our own in house Buy to Let Mortgage sourcing system and calculator. This takes quite a bit of time, but it is definitely worth it and I wanted share with readers what it can do as it is our own in house design specifically based around the needs of property investors.Buy to Let Mortgage sourcing system and calculator

The first Key inputs are:

  • The Value of the property or Purchase Price
  • The amount you want to borrow
  • The Rental income pcm

This will then work out if the rental income is enough for every lender and product on the system to agree a Buy to Let mortgage. This is called Stress Testing and is commonly worked out (but not always) by the rent covering the interest only mortgage payment by 125%.

It will also consider the amount you want to borrow against the value of the property as a percentage. This is called Loan to Value and some products or Lenders will vary from 50% LTV to 65%, 75%, some up to 80% and even one still at 85%

Another factor from these figures are the Lenders’ maximum and minimum loan amounts (most lenders will not lend below £25,000) and also minimum property values ( most lenders will not lend on a property below £40,000 and some higher).

Other key inputs are:

Income – many lenders have a minimum income level for applicants although this does not affect the loan amount as it is based on rent.

Preferred rate type Fixed or Variable – Do you want it to search for products where the interest rate will remain the same for the term of the product or are you happy to take the risk of a rate that may change up or down. The system will then only show results for the type you choose (although you can easily change your mind).

You will then get a list of results (see below) which will show:

  • A list of the available products based on your criteria
  • Interest Rate
  • Product term
  • reversion rates
  • Fees
  • Early redemption penalties
  • How the Stress testing is worked out ie the amount you can borrow for every £1 of rent pcm
  • If you could borrow more how much you can borrow as a maximum and get a quote based on that figure

Buy to Let mortgage search results

Then just click on the Get quote Link for the loan requested or the maximum possible loan.

You will then get an full illustration of the product you selected along with a financial summary showing:

  • The interest only Buy to Let mortgage costs per month
  • A table showing the Capital and Interest Buy to Let mortgage costs per month
  • The minimum amount the rental income would need to be for the loan requested
  • Yield (i.e. annual rental income expressed as a percentage of property value)
  • Rental Return on Equity Invested (net of mortgage costs)
  • The LTV (i.e. the loan expressed as a percentage of valuation) is

And much more see below:

Buy to Let mortgage Illustration

You can find The Buy to Let Mortgage sourcing system and calculator under our Finance tab see below or CLICK HERE to start your search

Buy to Let mortgage tab

 

 


Light Refurb alternative – Bridge to Let Buy to Let News, Latest Articles

The Mortgage Works have withdrawn their popular and industry leading Light Refurb product, which allowed a property to be financed using a Buy to Let mortgage even though it required a small amount of work before it could be Let (usually a lender will insist on a full retention if the property is not in rentable condition). However as one door closes another opens and Precise Mortgages Bridge to Let product allows borrowers to switch their bridging loan into a Buy to Let product after four months.

There are no additional valuation or legal fees and customers are allowed to take a Buy to Let loan up to 75% of the property’s post works valuation.

To date Bridge to Let products have been useful but the monthly interest rate on the buy to let element has not been competitive and expensive when compared with normal Buy to Let rates.

Bridge to Let is available to:
• Property investors who are carrying out refurbishment works before letting a property.
• Property investors who want to refurbish a property and use the profits to re-invest in a new project.
• Bridge to let products are only available to Precise Mortgages Bridging customers.
• Not available to first time landlords.

The Bridge:
• Select any Precise Mortgages Bridge Product (there are no restrictions).
• Minimum Bridge Term is 4 months.

The Buy to Let:
• Free legals and valuation when exiting a Precise Bridge.
• Choose a Buy to Let product from the Bridge to Let range.
• Max LTV is 75%.
• Min term 5 years, max term 30 years.

If you require any assistance with this type of product or finance please complete the form below.

Contact Howard Reuben

Mortgages, Commercial and Bridging Finance, Life Insurance, Wills, Trusts and LPA's
  • Please enter a value between 0 and 999.
  • How can I help you?
Bridge to Let


Protection for families of property investors Advice, Buy to Let News, Estate Planning, Financial Advice, Guest Articles, Guest Columns, Landlord News, Landlords Insurance, Latest Articles, Property Investment News, Property Investment Strategies, UK Property Forum for Buy to Let Landlords

With growing and easier access to BTL mortgage funds comes the inevitable increase in borrowing, or as I like to call it … debt.Protection for families of property investors

BTL is the generic term, of course, for property investment, and for many people investing relies on having the right ‘debt’ in place to make those acquisitions and investments.

Many investors fit this profile; Continue reading Protection for families of property investors


Introducing The Property Podcast Buy to Let News, Guest Articles, Landlord News, Latest Articles, Property Market News, Property News, UK Property Forum for Buy to Let Landlords

As a property investor, you probably spend a good chunk of time driving, and sitting at your desk doing mind-numbing paperwork. Instead of just listening to Radio 4 (or your local dubstep pirate station – we’re not judging), wouldn’t it be great if there was a radio show all about property that you could tune into?

That’s why we created one, called The Property Podcast – “we” being Rob Bence from RMP Property and Rob Dix from Property Geek.

You’ll find our latest episode embedded at the end of this post – with the content courtesy of a certain Mark Alexander. Mark was kind enough to write a guest post for us explaining a framework for solving any property problem, so on the podcast we explained the framework and gave some examples of how to make use of it.

So what exactly is a podcast?

A podcast is like a radio show that anyone can create, and they’re all listed on iTunes. You can listen to them at your computer, but they’re at their best when you download them to your phone or iPod for listening on the move.

The Property Podcast is now being downloaded over 20,000 times every month, and is consistently one of the five most popular business podcasts in the UK. It has 72  five-star ratings on iTunes, and we get emails every day from listeners who say it’s helping them to get ahead in property.

We’ve heard from people who’ve listened to The Property Podcast while feeding their baby in the middle of the night, while walking the dog, and even in the dentist’s chair! One listener told us he’d listened for five hours straight to catch up on old episodes – a form of masochism we’d not necessarily condone…

How to listen to The Property Podcast

We publish a new half-hour episode every Thursday morning. In each show we focus on a specific topic of the week, share a favourite resource, and look at one of the news stories that’s caught our eye. We aim to give practical advice to newbies, but with plenty for established investors too – with time to spare for a lot of bad jokes.

The easiest way to listen to The Property Podcast is to subscribe on iTunes using this link. That way every new episode will be automatically downloaded, and synchronised to your iPod or iPhone. Or, if you prefer, you can just listen on our website.

Start listening now!

Check out our episode inspired by Property118 founder, Mark Alexander (see below) then leave a comment letting us know what you think or join our mailing list to be notified about future episodes.

Property PodcastWe’re looking forward to having you on board!


BM Solutions scraps minimum income rules on buy to let mortgages Buy to Let News, Landlord News, Latest Articles, Mortgage News, Property Investment News, Property News

BM solutions logoBM Solutions, the leading BTL lender from the Lloyds Banking Group, has removed its minimum income requirements for all buy-to-let products in its range.

As from Monday 10th June, Birmingham Midshires will finally be joining a handful of other lenders by providing experienced property investors with BTL mortgages without the need to satisfy any minimum income levels at application.

Even though a borrower can still only have 3 mortgages across the Lloyds Banking Group brands (which includes Halifax, Lloyds TSB, C&G, BM Sols, TMB, Intelligent Finance etc.) we’re pleased to see that they have removed the minimum income required restriction, recognising that many investors are self employed and even though their accounts may show low net profits, that the rental income generated is the true indicator of affordability.

The ‘broker only’ lender has previously required a minimum income of £25,000 for all applicants but this rule has now been removed as they acknowledge that buy-to-let affordability is based on rental income, rather than personal income. This, they say, makes it more accessible to more landlords.

Your Broker will tell you the behind the scenes updated ‘fine print’ for all BM deals, including that certain provable income will still need to be supplied as part of the application process. BM has also changed its rental affordability calculation, which will now be based on 125% of the mortgage interest.

They say this is because it is the right thing to do to ensure borrowers are in the best possible position to be able to manage future payments if their circumstances change.

BM Solutions “One Minute Mortgage” process remains in place and is available to Brokers 24/7. The One Minute Mortgage provides mortgage decisions in less than one minute and allows borrowers to submit additional borrowing and multiple Buy to Let applications.

With a well tried and tested system, now coupled with ‘no minimum income’ requirements, BM Solutions are clearly hungry for more BTL business.

Changes will come into force from Monday 10 June.

To contact our recommended mortgage broker please complete and submit the form below.


So you think your property portfolio is as “Safe as Houses”! Advice, Estate Planning, Landlord News, Latest Articles, Property News

So you think your Estate is as “Safe as Houses!Property investors are passionate about building property portfolios, income and the potential for growth and take a lot of time and effort in financing and planning their properties and assets.

But are the portfolios effectively protected for family and loved ones in the future?

In essence, is your estate ‘as safe as houses’? Continue reading So you think your property portfolio is as “Safe as Houses”!


Negotiating with estate agents Latest Articles, UK Property Forum for Buy to Let Landlords

Negotiating with estate agentsOver the last few days a newbie property investor called Craig has been picking the brains of myself and Mary Latham by email. Yesterday we got talking about negotiating with estate agents and the advice we shared with Craig is well worth sharing here so that others can benefit from it too in my opinion. Between us, Mary and I have 64 years of experience in buying property as an investment. This number will grow massively as others share their opinions and as more questions and answers are added to this thread.

Negotiating with estate agents

Having viewed properties which match your requirements in terms of attracting the right tenants – a good agent will always call to you to ask for feedback. When they do, tell the agent that you really liked the property and would love to buy it but you think it’s priced too high for you to want to make an offer. Continue reading Negotiating with estate agents


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