A question for BTL (Mortgage LTV)

[flyingjase]

Hi

I've got some spare cash in a shell company that no longer trades. I was thinking about investing the money into a few BTL properties as there are some firesale prices out there at the moment.

If I did, can anyone help with what sort of LTV you can expect? I was banking on 30% deposit for each property.

Also, can you even get a mortgage with no BTL history? A lot of the research I've done has stated no first time BTL'ers

Any help would be gratefully received

Thanks

Jason

[scotal]

flyingjase said:

Hi

I've got some spare cash in a shell company that no longer trades. I was thinking about investing the money into a few BTL properties as there are some firesale prices out there at the moment.

If I did, can anyone help with what sort of LTV you can expect? I was banking on 30% deposit for each property.

Also, can you even get a mortgage with no BTL history? A lot of the research I've done has stated no first time BTL'ers

Any help would be gratefully received

Thanks

Jason

Give it 5 you'll have mail.

Oh and 75% is about the most you can go to, so a 30% deposit wouldnt be a bad start.

Edited by scotal on Thursday 11th December 10:36

[Eric Mc]

Have you sussed out the tax implications of using a limited company as owner of investment properties?

[flyingjase]

Eric Mc said:

Have you sussed out the tax implications of using a limited company as owner of investment properties?

Good question Eric - the answer is no I haven't. It seemed like a good vehicle to seperate the risk from other interests I have. Also the Ltd company is equally owned with 2 other people who are also involved in this investment, so it seemed like the least line of resistance.

What are your thoughts?

Jason

[Eric Mc]

If a company derives its income mainly from investments - in this case rental properties, then it will pay Corporatrion Tax on its profits (if it has any)at the full rates i.e. 28%.

Any monies taken out by the directors/shareholders will be subject to personal income tax and/or National Insurance.

If and when the company sells any or all of its properties, it will be subject to Capital Gains Tax on its disposals. However, as the company is not a "human" person, it will not be able to make use of the annual personal Capital Gains Tax allowance - currently £9,600 per person. If there are three joint owners that is possibly £28,800 of tax free profits going amiss.

Companies and people now pay Capital Gains Tax at a fixed 18% so there is no difference in the actual tax rates paid on the profits.

Edited by Eric Mc on Thursday 11th December 12:35

[flyingjase]

Thanks Eric

[Wings]

http://www.auction.co.uk/residential/home.asp

Above auction takes place next week, might be too early for you, but previous auctions might be a good guideline for you. Have you also considered commercial properties?

[Ungarsee]

60% ltv maximum with woolwich at present but try some ifa's and see if you can get a portfolio product at the moment as this will reduce your fees. Normally you need to be doing a minimum of 3 BTL's at a time for one of these. Also, avoid new builds as ltv's are being heavily restricted, especially on flats

[TimCrighton]

Commercial is a stronger route IMO unless you have a particular reasoning for residential?

You should be able to achieve a yield of c. 8-10% on a well let commercial investment in the South East at present, which would give you profit on your borrowings and capital. In addition the lease is likely to stipulate the tenant deals with insurance and maintenance - in short - less hassle!

If you want some example properties and a chat in general then drop me a line [e-mail]

[neil0205]

Hi Jayson,

I deal in buying property from distressed sellers.We normally deal with approx 50 enquires per month. We turn a few of these enquiries into deals and package them up for investors such as yourself. You may be a first time investor or a time poor investor. Whatever the case I can provide a full turn key service that includes broker, solicitors and even a tenant find service up to full property management. I have a way of structuring a deal legally that enables you to only put a small amount of funds in, sometimes NO Money in! This will give you an infinite return on your investment.My email is [e-mail] email me for more info.

Neil

[B17NNS]

neil0205 said:

I have a way of structuring a deal legally that enables you to only put a small amount of funds in, sometimes NO Money in!

Hi Neil

Sounds interesting, care to give a few more details?

Thanks

Matt

[NoelWatson]

neil0205 said:

Hi Jayson,

I deal in buying property from distressed sellers.We normally deal with approx 50 enquires per month. We turn a few of these enquiries into deals and package them up for investors such as yourself. You may be a first time investor or a time poor investor. Whatever the case I can provide a full turn key service that includes broker, solicitors and even a tenant find service up to full property management. I have a way of structuring a deal legally that enables you to only put a small amount of funds in, sometimes NO Money in! This will give you an infinite return on your investment.My email is [e-mail] email me for more info.

Neil

If you can do the deal without requiring funding, why do you require external investors?

[neil0205]

Neil

[/quote]

If you can do the deal without requiring funding, why do you require external investors?
[/quote]


Noel,

I can only manage to buy so many properties per month due to the time involved,some properties may require full refurbs,others just a lick of paint. Last year I was working from 5am till 11pm 6 days per week!(This year I`m definately not!) Due to spending over £4k mth generating business, packaging deals helps to pay for the lead generation.

[flyingjase]

TimCrighton said:

Commercial is a stronger route IMO unless you have a particular reasoning for residential?

You should be able to achieve a yield of c. 8-10% on a well let commercial investment in the South East at present, which would give you profit on your borrowings and capital. In addition the lease is likely to stipulate the tenant deals with insurance and maintenance - in short - less hassle!

If you want some example properties and a chat in general then drop me a line [e-mail]

Thanks Tim - I am also looking at commercial but via a different route - I will drop you a mail

[flyingjase]

neil0205 said:

Hi Jayson,

I deal in buying property from distressed sellers.We normally deal with approx 50 enquires per month. We turn a few of these enquiries into deals and package them up for investors such as yourself. You may be a first time investor or a time poor investor. Whatever the case I can provide a full turn key service that includes broker, solicitors and even a tenant find service up to full property management. I have a way of structuring a deal legally that enables you to only put a small amount of funds in, sometimes NO Money in! This will give you an infinite return on your investment.My email is [e-mail] email me for more info.

Neil

A wise man will simply ask how? YHM!

Jason

[Transmitter Man]

Neil,

On your fully packaged deals what sort or BMV % deals in the south east do you have at present as anything over 25-30% seem difficult to find.

Phil

[neil0205]

Transmitter Man said:

Neil,

On your fully packaged deals what sort or BMV % deals in the south east do you have at present as anything over 25-30% seem difficult to find.

Phil

Hi Phil,

Email me on [e-mail] with your requirements and if I have/get anything to suit, I`ll let you know.

Neil