Is BTL still possible?

[BoRED S2upid]

Kickstart said:

Like lots of terraces this is EPC grade E and it will need a lump of money to get it to C - ask me how I know ??

Got until 2028 to sort that out.

[goldar]

Portia5 said:

My most recent purchases are:

Shop premises £50k. FRI lease at £500pcm. October '22. Friend's landlord sold due to her terminal cancer and desire to return to China to die.

Shop premises £60k sold with FRI at £625pcm. Jan '23. Dog groomer. Off market sale from professional property trader.

Shop premises £40k. Feb '23. FRI lease at £400 rising to 425 in 2024 and 450 in 2025. Beautician. Auction purchase

Next (April hopefully) is shop premises £50k sold with FRI lease £450pcm. Ice creams/desserts. Referred by people who're buying the business. Landlord retiring.

Both the 2nd and 3rd premises had been bought for £20k less than I paid only weeks prior to my purchase.

Very interested to hear more. I'm swaying towards commercial property. I'm looking for advice, would you be up for a chat?

[LooneyTunes]

BoRED S2upid said:

Kickstart said:

Like lots of terraces this is EPC grade E and it will need a lump of money to get it to C - ask me how I know ??

Got until 2028 to sort that out.

Once again, this still hasn’t been confirmed and there is an exemption regime already in existence that can reasonably be expected to be extended. Only this week there were media reports that changes might not happen and that the EPC regime may be subject to change to make it more proportionate. These changes driven by concerns about sector viability.

[Louis Balfour]

LF5335 said:

Condi said:

goldar said:

A return of 10% pa would be ideal.

Wouldn't we all

Exactly what I thought when I read his comment

We are about to dispose of some properties in the Midlands that will provide 10% gross yield. We sold some last year at around 11%.

[NomduJour]

Why getting rid at those returns? One of those areas where you have to refit them after every tenancy?

[Louis Balfour]

NomduJour said:

Why getting rid at those returns? One of those areas where you have to refit them after every tenancy?

Because we bought and developed them at the start of the GFC to provide an income. We aren't landlords, and want our capital out to do other things basically.

They are in Nottingham and usually let to blue collar professionals, so they are okay at the end of tenancies, normal wear and tear notwithstanding.

Because they are what is known as Section 257 HMOs they are a bit specialist with respect to lenders. So you won't buy them with a boggo BTL mortgage. The ones we have sold to date have typically gone to cash buyers or those with decent deposits (40% or so). You won't get 80% LTV on them.

[NomduJour]

Yeah, think HMOs are going to be increasingly regulated going forward too, councils don’t like them.

[Louis Balfour]

NomduJour said:

Yeah, think HMOs are going to be increasingly regulated going forward too, councils don’t like them.

Not sure there is much more they can do with true HMOs. But S.257 HMOs aren’t really HMOs as most people understand them, they are self contained flats. Many places don’t regulate them at all currently, though Nottingham is not one of those places currently.

[98elise]

LooneyTunes said:

BoRED S2upid said:

Kickstart said:

Like lots of terraces this is EPC grade E and it will need a lump of money to get it to C - ask me how I know ??

Got until 2028 to sort that out.

Once again, this still hasn’t been confirmed and there is an exemption regime already in existence that can reasonably be expected to be extended. Only this week there were media reports that changes might not happen and that the EPC regime may be subject to change to make it more proportionate. These changes driven by concerns about sector viability.

I certainly hope it's not going to happen. All of mine are 60's built with reasonable loft insulation and double glazing. Only one is a C and the rest are D's.

The sort of thing they recommend to get them to a C is insulating the concrete floors and fitting solar.

[philv]

jmn said:

The EPC issue is one potential problem but there is also the forthcoming Decent Homes Standard which will impose certain requirements on the accommodation before it can be lawfully let. For example the Kitchen must not be more than 20 years old.

The new Landlord Portal which has been proposed would enable Landlords to self certify that their property meets all legal requirements but apparently false or negligent statements would be a criminal offence.

So that's 2 kitchens for me then.
And rent rises for years to come to pay for it.
Which idiots decide on these rules!?

Onward and upward for rents.
Lucky tenants.

[Pit Pony]

jmn said:

The EPC issue is one potential problem but there is also the forthcoming Decent Homes Standard which will impose certain requirements on the accommodation before it can be lawfully let. For example the Kitchen must not be more than 20 years old.

The new Landlord Portal which has been proposed would enable Landlords to self certify that their property meets all legal requirements but apparently false or negligent statements would be a criminal offence.

I have no idea how old the kitchen is in our BTL.
It's functional, clean, and the gas cooker passes a gas safety check every year.
It's a little dated. But if I were to replace it, it would be identical, but with different doors. Worktops would be identical.

[nikaiyo2]

How do you date a kitchen?

I bought a used bulthaup kitchen from a huge house in Holland Park at about 5 years old, then used it in 2.5 flats (I still have enough to do maybe 1 more in my mums garage lol.)

So does the kitchen get called 5 years old at my install or is it new?

This seems like a crazy ideal without any sense and seems counter to the environmental message, why would you force people to throw things away when there is absolutely no need?

https://www.theusedkitchencompany.com/shop/handmad... I bet that’s 20 years old….

Surely the market decides if the kitchen is not up to scratch? To me it’s one of those things that sets a rent, there might be a flat with a beautiful new state of the art kitchen at one price the same flat with an 80s kitchen might be £100 a month less. Why do the government think they should take this choice away from tenants?

It seems like all the well meant changes are compressing the market and forcing fixed costs so removing the mid/ low end and creating an outlier high end and the rest.

I don’t get it, just see any logic in most of the reforms.

[Louis Balfour]

nikaiyo2 said:

How do you date a kitchen?

.

Download an app that matches you with single kitchens?

[DonkeyApple]

Louis Balfour said:

nikaiyo2 said:

How do you date a kitchen?

.

Download an app that matches you with single kitchens?

Why does one suspect that in America culinaphilia is a 'thing'?

[98elise]

goldar said:

Portia5 said:

My most recent purchases are:

Shop premises £50k. FRI lease at £500pcm. October '22. Friend's landlord sold due to her terminal cancer and desire to return to China to die.

Shop premises £60k sold with FRI at £625pcm. Jan '23. Dog groomer. Off market sale from professional property trader.

Shop premises £40k. Feb '23. FRI lease at £400 rising to 425 in 2024 and 450 in 2025. Beautician. Auction purchase

Next (April hopefully) is shop premises £50k sold with FRI lease £450pcm. Ice creams/desserts. Referred by people who're buying the business. Landlord retiring.

Both the 2nd and 3rd premises had been bought for £20k less than I paid only weeks prior to my purchase.

Very interested to hear more. I'm swaying towards commercial property. I'm looking for advice, would you be up for a chat?

It would be a good subject for a seperate thread. I would like to switch to commercial but have no clue how it works.

[98elise]

philv said:

jmn said:

The EPC issue is one potential problem but there is also the forthcoming Decent Homes Standard which will impose certain requirements on the accommodation before it can be lawfully let. For example the Kitchen must not be more than 20 years old.

The new Landlord Portal which has been proposed would enable Landlords to self certify that their property meets all legal requirements but apparently false or negligent statements would be a criminal offence.

So that's 2 kitchens for me then.
And rent rises for years to come to pay for it.
Which idiots decide on these rules!?

Onward and upward for rents.
Lucky tenants.

I have a mate who currently works abroad, so rents his UK home out. It's a large period detached place in hampshire and the kitchen is bespoke solid wood with granite counter tops and all manner of built in gadgets. I know it cost him over 30k when it was done.

He will be thrilled to know it all has to be replaced in a few years because it's too old!