Possible Loophole over 3% Stamp Duty Tax

[loanarranger]

I agree Handelsbanken are cooperative and just perhaps they might negotiate particularly as you are a proven borrower.

Whilst the market is indeed flat for the present , might I suggest you establish what percentage of the MUFB you could dispose of in the future to allow for a reduction...

[loanarranger]

True commercial lending has serious restrictions as you quite correctly say. As a broker I try to build in a degree of a safety net by sourcing competitive terms which have a term beyond those you mention but having a reversionary rate which in itself allows on a worse case scenario to continue if alternative...

[loanarranger]

Renewing for 5 yrs , the rates of the various lenders are as at todays date , please note that these are changing depending on the cost of wholesale money.

Paragon Mortgages 3.5%
Foundation Home Loans 3.59%
Landbay 3.75%
Keystone Property Finance 3.95%

There...

[loanarranger]

Absolutely no problem , glad to give comment on this type of construction, never easy particularly when such properties seem perfectly good and look comparable to standard construction property.

[loanarranger]

PRC is a generic term which can cover the likes of Wimpey No Fines,Easiform or classified as Large Panel Construction or In Situ Concrete (where concrete is poured into the mould.)

You are correct that f a property has been repaired and a certificate issued , this should make it more suitable...

[loanarranger]

Gandolph, I am inclined to agree with your suggestion.

[loanarranger]

Sorry Gordon , as a broker I use various sourcing systems including one which does an automatic ICR calculation , in addition I have my own spreadsheet which calculates , I wouldn't make such suggestions if the offerings were not available for 5 yr Fixed Rates

[loanarranger]

Have you tried the following
Precise
Foundation Homeloans
Viva Home Loans
Furness Building Society
Keystone Property Finance using their Rental calc will lend approx £187500.

It is important to note that these suggestions are based on you taking a 5 year Fix...

[loanarranger]

From my research I have identified 5 lenders who would accommodate in principle a MUFB with 7 units one of which must be your current lender ,indeed these lenders will accept up to 10 units with one accepting a MUFB with 20 units.

Only one lender will lend up to £2 millions with product...

[loanarranger]

In order to help provide suitable suggestions , can you please indicate as to how many self contained units are within the MUFB?

[loanarranger]

Gordon speaks well onthis topic but as a broker we are advised never to advise on any tax related matters particularly when it relates to borrowing via a Ltd Company even though we may have a good understanding on the subject, this really falls 100% within the domain of quality Accountants who have...

[loanarranger]

The solicitor is presumably acting for yourself and the new lender and therefore is complying with the need to establish that there is in fact an unexpired lease of X years on this property which meets the criteria and does not contain any conditions which might affect the Suitability of the property...

[loanarranger]

I would never question their professionalism but please on renewal do not take the quote as being the best,.

[loanarranger]

My understanding and I may be wrong from reading the report is that the 3% SDLT might not be payable when a property is purchased and isn’t considered fit for human habitation. I am not convinced that HMRC wont make an appeal.

[loanarranger]

Might I suggest that you investigate UInsure, they provide quotations with DeFacto accreditation to enable you to understand how good specific cover is

[loanarranger]

The churning cycle seems to relate to the initial mortgage incentive period followed by either switching to a switch option whichinvariably means another fee or alternatively effecting a new Remortgage and all the associated costs that this means; the only exception to all this is predated credit crunch...

[loanarranger]

I haven’t seen this feature but does the calculation include the amortisation of the Completion Fees , all other costs are normally paid during the application and completion process and not added but as you indicate theircalculation take the total and divide by the number of months of the initial...

[loanarranger]

Just in case it has escaped Forum readers attention , it seems that an appeal in Bristol recently indicated that there might be a legitimate way of avoiding the penal 3% SDLT, The following is an extract of what had been decided upon, the topic has been widely reported in various media publications....

[loanarranger]

Mortgage quotation systems can provide quotes based on whether key elements like Booking andcompletion fees are to be added to the pricipal together with Val Fees and Chaps cost, these can be simply over the initial incentive period or over the terms of the mortgage.
Go to a broker and he will...

[loanarranger]

Hi Brian
Homelet and Alan Boswells are very reputable organisations and indeed they have access to the vast majority of Insurers and their quotes can indeed be very competitive, having said that it is incumbent upon you to ensure that they actually Re-broke the cover each year rather than relying...