Property development finance query
Discussion
All,
I was interested in buying a £500k place and spending upwards of £100k on it. My usual mortgage broker can do me a 10% down BTL mortgage but I’d have to fork out the £100k myself to do it up.
Does anyone have any suggested banks or finance firms that will finance at 80% (or 90% if possible) plus will lend you say 80% of the development costs?
Also are there mezzanine finance companies out there (names?) that will lend you the extra amount (eg if the normal bank lends you 80% of the purchase will they lend you the extra 10-20%) at a higher rate?
Do you have to have a regular income or if you can prove you’ve done a few of these renovations/developments before they will lend you the cash if you’re not working?
Apologies for all the questions but I would be grateful for any help.
Many thanks,
BJ
I was interested in buying a £500k place and spending upwards of £100k on it. My usual mortgage broker can do me a 10% down BTL mortgage but I’d have to fork out the £100k myself to do it up.
Does anyone have any suggested banks or finance firms that will finance at 80% (or 90% if possible) plus will lend you say 80% of the development costs?
Also are there mezzanine finance companies out there (names?) that will lend you the extra amount (eg if the normal bank lends you 80% of the purchase will they lend you the extra 10-20%) at a higher rate?
Do you have to have a regular income or if you can prove you’ve done a few of these renovations/developments before they will lend you the cash if you’re not working?
Apologies for all the questions but I would be grateful for any help.
Many thanks,
BJ
Guys many thanks for the comments so far.
Its just a normal apartment in a converted victorian building in West London and the apartment hasnt had any work done to it in 30 years.
Minimax, what are the restrictions for a 95% BTL?? Im guessing there would be a few eg rent has to cover the mtge by 125%? 'Future' is this a bank or building society?
Its just a normal apartment in a converted victorian building in West London and the apartment hasnt had any work done to it in 30 years.
Minimax, what are the restrictions for a 95% BTL?? Im guessing there would be a few eg rent has to cover the mtge by 125%? 'Future' is this a bank or building society?
Sorry about the late reply. If you need help going through all of this then we are an independant commercial finance broker. Diane White is our property development expert and is one of the leading experts in the trade. She will be back in the office next week so feel free to give her a call. Our details can be found here: www.kingswoodassociates.co.uk/
Apologies for hijacking this tread, but I have a cheeky question for DD if I may..
I'm considering buying some (not sure how many, 1-5, maybe)properties abroad, some in the EU, some not. Most will be buy to let. I'm not sure if you're the right man to ask, or maybe you're company may be of help, but I'm looking to speak to someone in the know regarding where to gain the finance, and the tricks to maximise tax efficiency, especially the income tax aspect. Would I be wrong to give you're company a call, or do you have any contact details of anyone you can recommend??
Many thanks,
all the best with the project BrendonJ.
I'm considering buying some (not sure how many, 1-5, maybe)properties abroad, some in the EU, some not. Most will be buy to let. I'm not sure if you're the right man to ask, or maybe you're company may be of help, but I'm looking to speak to someone in the know regarding where to gain the finance, and the tricks to maximise tax efficiency, especially the income tax aspect. Would I be wrong to give you're company a call, or do you have any contact details of anyone you can recommend??
Many thanks,
all the best with the project BrendonJ.
Hi Ghandi, overseas stuff isn't our area but some of our clients have had success with these guys: www.connectoverseas.co.uk/
gandhi - the basic tax rule is that, if you are a UK tax resident, you are liable to UK Income Tax on your worldwide income. Therefore, if you have rented property in a foreign country and it is generating rental income, you are liable to UK tax on that income.
It is not relevant whether the cash generated in that foreign country is repatriated into the UK.
It is not relevant whether the cash generated in that foreign country is repatriated into the UK.
How do those trusts work for personal Income Tax and are they immune from challenge by the Revenue - who have been looking very carefully at the way trusts are being used for tax avoidance?
By "offshore", what particular countries are favoured for these trusts and are any of these countries now signed up to the Cross Border Money Laundering regulations (which includes tax evasion).
By "offshore", what particular countries are favoured for these trusts and are any of these countries now signed up to the Cross Border Money Laundering regulations (which includes tax evasion).
Thanks for that everyone. So income tax would 'normally' be paid on my rental income. Not a massive shock, and I assume as per UK, it rental income is then added to my income and taxed as an increased salary if you will?
Brendan, you're point is certainly worth me looking into. I don't suppose you know of a resource for such info? More than happy for you to pm me any details..
All the best...
Brendan, you're point is certainly worth me looking into. I don't suppose you know of a resource for such info? More than happy for you to pm me any details..
All the best...
brendonj said:
All,
I was interested in buying a £500k place and spending upwards of £100k on it. My usual mortgage broker can do me a 10% down BTL mortgage but I’d have to fork out the £100k myself to do it up.
Does anyone have any suggested banks or finance firms that will finance at 80% (or 90% if possible) plus will lend you say 80% of the development costs?
Also are there mezzanine finance companies out there (names?) that will lend you the extra amount (eg if the normal bank lends you 80% of the purchase will they lend you the extra 10-20%) at a higher rate?
Do you have to have a regular income or if you can prove you’ve done a few of these renovations/developments before they will lend you the cash if you’re not working?
Apologies for all the questions but I would be grateful for any help.
Many thanks,
BJ
I was interested in buying a £500k place and spending upwards of £100k on it. My usual mortgage broker can do me a 10% down BTL mortgage but I’d have to fork out the £100k myself to do it up.
Does anyone have any suggested banks or finance firms that will finance at 80% (or 90% if possible) plus will lend you say 80% of the development costs?
Also are there mezzanine finance companies out there (names?) that will lend you the extra amount (eg if the normal bank lends you 80% of the purchase will they lend you the extra 10-20%) at a higher rate?
Do you have to have a regular income or if you can prove you’ve done a few of these renovations/developments before they will lend you the cash if you’re not working?
Apologies for all the questions but I would be grateful for any help.
Many thanks,
BJ
You can get a refurb mortgage through an Irish bank. I bought a £1million property on £100k using this. I did have to pay £10K interest per month on this, but the project took 3 months and the profit meant that the £30k i gave the bank could be easily written off.
there are cheaper ways of doing it, but For me its about putting the least amount of money in possible meaning i can have several developments on the go rather than just one.
E-mail me if you would like more details
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