Government Changes to HMO Licensing

[loanarranger]

If the share is greater than £40000 then the premium does unfortunately become payable on the new acquisition irrespective of whether it is for his own occupation or another BtL.

It might be worth mentioning that if the share of the rental income is to be used towards the affordability...

[loanarranger]

To add to Gordon999 constructive points, I would add that capital values in the Greater London but more importantly the central London zone are indeed softening , about 5% below early 2017 levels.

In terms of borrowing , lenders require full disclosure of all committed monthly expenditure...

[loanarranger]

You can only do with a property how you want to, certain conditions might apply, provided you haven’t borrowed money to buy it. By doing so there are rules to adhere to failure to do so has serious ramifications, you cannot now claim ignorance, since that is no defence in law.
Switching Mortgages...

[loanarranger]

Poolboy, No you can’t, if you are applying for a residential mortgage , it is on the strict understanding that you live in it and definitely do not let it out to recoup the SDLT, that is fraud by virtue of procuring a mortgage by uttering a false declaration. If circumstances dice that you have to...

[loanarranger]

You are regarded as a non portfolio landlord and depending on which lender one approaches the rental Street rate will be around 125%@either the pay rate or 2% above the pay rate. The same rates apply irrespective of your category of investor so everything will depend on whether the validated rent meets...

[loanarranger]

I agree with Hech123 , there are no limitations on the actual number of HMO's that an investor might own, however much depends on how close to each other are the properties , if for example you were to buy two adjoining properties then the number of lenders who would be prepared to accept reduces but

...

[loanarranger]

If you are seeking to purchase for your own occupation , the indicated deposit puts you into the ball park , however much depends upon your employment and confirmed income, belt salaried or self employed. Lenders have affordability matrix which takes into consideration loans, credit cards, transport...

[loanarranger]

How many properties do you own as BtL’s and how many are in mortgage.
Are you a standard rate or Higher rate tax payer.

Each lender may have a different criteria for those who fall within the PRArules and whilst for some they are coming close to breaching the PRA rules the fact...

[loanarranger]

May I suggest that you establish if the 3rd party to the Freehold has a Mortgage, if one exists then you as co owner of the Freehold can report the fact that their borrower is in breach of their mortgage terms by wilfully neglecting to help maintain the fabric of the common parts which affect the propertyand...

[loanarranger]

I didn't even have to open my mouth in clarification , thanks JPkeates , cheque in the post.

[loanarranger]

I regret to say that you are liable for the premium on SDLT and based on a purchase price of £452000 that would amount to £26160. This is an extortionate amounted Pay but one which for the present is helping fill the tax coffers.

[loanarranger]

May I first assure you that the majority of seasoned Forum posters will provide honest advice, on occasions it may seem somewhat brutal but there is indeed sincerity behind many of the comments made.

My initial advice is to not succumb to the marketing hype of so called Property educators...

[loanarranger]

There is nothing to be concerned about in starting a Ltd Co to hold Property, make sure you have the relevant SIC code just in case you decide to purchase another property and raise a mortgage to complete the purchase or subsequently wish to raise a remortgage.

You clearly are aware of...

[loanarranger]

Wfd-property
You understand the position correctly, the moment you progress to a second, irrespective of whether you rent it out or occupy, this triggers the premium and certainly the premium would apply to the 3rd.

[loanarranger]

Landlorddp
Can I simply state that you are unable to arbitrarily opt into and out of a Buy to Let Mortgage.i have written previously on this topic but will reiterate the situation.
You state that your two properties are Buy to Let and if in mortgage you specifically stated that the properties...

[loanarranger]

Are you actually responsible for the Utility Bills is Yes then it goes under Annual Expenses but normally these costs are borne by the tenant. Remember you can include the cost of the annual gas safety certificate.

[loanarranger]

Thought the note below might be of help to those interested in HMO investment of might have properties which could fall within the new regime.


The Government is expanding the mandatory licencing of HMOs (houses in multiple occupation), bringing more properties into the licencing...

[loanarranger]

I completely concur with what Andrew has stated, the joint mortgage simply requires that both borrowers are held responsible for making sure the mortgage payment is made , the apportionment of rental / mortgage interest is then in accord with the agreed split in entitlement.

[loanarranger]

Whatever he charges will in the long run be cheaper than trying to go it alone.
Much will depend on how much time he has to spend on going through your paperwork and making submissions to HMRC.
Best of luck.

[loanarranger]

As per AndrewDod , yes any expense incurred in the transfer to a Buy to Let mortgage including Chaps Fees , Solicitors and broker fees and valuation fees can be claimed.

No , any costs incurred when you purchased for your own occupation cannot be claimed back (Good heavens the economy would...