LandlordZONE

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Dec, 2014

Sunday

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  1. #21
    Join Date
    Nov 2012
    Posts
    537

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    Zuby - they will prob only look at you if you move your whole portfolio. I have tried various projects, for instance I currently have a freehold flat and a large 4 bed house with no loans, I also have 3 other properties with low loans, I am considering doing these in a bulk lot but realistically you want to be lending over £500k.

    Depends on area but most banks have a property specialist and they lend on different criterias, I use Lloyds and the lending criteria is to have over £2million in loans - then you use a Director of sorts who is much better and can ALWAYS get you money more or less.

    I know Barclays in the North West have a criteria of only £500K so it all depends on how much you want. Most banks on a smaller level are really struggling this is because they would rather lend to people who really know what they are doing and have lots of security, you get about 60-65% of the value.

    Banks I know that are lending are Handlesbank(50% LTV), Barclay's and Lloyds(60-65%), Bank of China I am told. HSBC may be coming back in I am told but have had no dealings with. I am told Lloyds is the best and doing the most deals but I have been with them for many years and was lucky in that respect.

  2. #22
    Join Date
    Nov 2012
    Posts
    537

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    I can understand what they are doing, as they only have limited capital. Who would you lend to, some guy who has no idea about refurbs/finance/renting and earns very little money or a guy who has done it for years and has probably got a massive income, lots of assetts?

  3. #23
    Join Date
    Jul 2012
    Location
    North West
    Posts
    1,817

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    I've got 7 (hopefully as of tomorrow, 8) properties, one is a HMO of 5 tenants. Profits vary from year to year. Most of the profit is reinvested which means we (2 teenage sons and I)live on next to nothing but we get by. I used to have another job (teaching) but couldn't manage both this, landlording, and being a single mum, so I gave up teaching.

  4. #24

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    Quote Originally Posted by Berlingogirl View Post
    I've got 7 (hopefully as of tomorrow, 8) properties, one is a HMO of 5 tenants. Profits vary from year to year. Most of the profit is reinvested which means we (2 teenage sons and I)live on next to nothing but we get by. I used to have another job (teaching) but couldn't manage both this, landlording, and being a single mum, so I gave up teaching.
    Hi! This is interesting as I am a teacher and have three young kids. Not single but I certainly empathise with the demands of the teaching job! I would love to hear how you got to where you are now!
    Daddy Landlord

  5. #25

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    Hi,

    I know a lady who has recently (since 2007), bought student HMO’s that gives enough cash flow and return to live off. Their portfolio is only 4 houses, albeit 4 that do very well :-

    1) 6 bed HMO conversion, £155k + £5k HMO conversion costs, @£70 per person/week 85%LTV
    2) 6 bed HMO conversion, £155k + £5k HMO conversion costs, £70 @ per person/week 75%LTV
    3) 7 bed HMO + £5k HMO conversion costs £160k, £75 per person per week / 75%LTV
    4) 6 bed HMO, £145k 75% LTV £65 per person/week

    The rent excludes bills as that is upto the students and doesn’t have to worry about council tax because they are students.
    Total yearly rent collected is ~£83,000, with a repayment mortgage costs of £32,000 leaving £51,000 gross profit on an investment of £168,000.

    She’s done very well from it in only a few years, but due to the work load had to essentially be her full time job as it was quite time intensive during summer trying to get the houses ready.

  6. #26

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    I have 1 BTL flat and another one on the way with low loan hopefully by month end which I bought via an auction. I am thinking of selling it off but is there capital gain tax involved?

  7. #27
    Join Date
    Oct 2009
    Posts
    5,399

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    Quote Originally Posted by cupcakeli2717 View Post
    I have 1 BTL flat and another one on the way with low loan hopefully by month end which I bought via an auction. I am thinking of selling it off but is there capital gain tax involved?
    If it is worth more than about £10,000 more than you bought for, then CGT is a possibility. I worry for all these folk that have umpteen properties on interest only mortgages. If they just keep up with inflation, there will still be CGT to pay on that inflation.

  8. #28

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    How much is the capital gain tax in percentage?

  9. #29
    Join Date
    Mar 2009
    Posts
    9,835

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    Quote Originally Posted by cupcakeli2717 View Post
    How much is the capital gain tax in percentage?
    http://www.hmrc.gov.uk/rates/cgt.htm

    But you are actually asking (but might not realise it..) what the CGT rates will be when you sell... nobody knows that ...

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