Property

The Property Expert Panel

Live – 1st Monday of every month

Our Property Expert Panel live events provide property investors and property developers with an opportunity to ask their questions to the panel members. The session is a relaxed environment where people starting out in property or seasoned professionals can engage with the panel to get their views on all aspects of property investing.

We cover an array of subjects from finance, law and of course tax. This is a great place to be in order for you to learn from others as well as the panel experts.

The Property Expert Panel

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Are you looking to increase the number of properties that you own or simply looking to increase the profit made?

If you have answered yes then read on as the Property Expert Panel may be able to support you. The best thing is that this panel of property investing experts are available to you for free.

It does not matter if you are new to real estate property investing or a seasoned professional. There are often questions that we do not know the answers to. Sure you can visit a Facebook or a Linkedin group for answers, but how much of an expert are the people providing you with answers?

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Mortgages

Simon Hodgson is a mortgage broker with over 10+ years of experience as well as investing in property in the "early naughties" (80's to you and me). You might be looking for a buy to let mortgage but unable to get the best rates as your fellow property investors or you may have a unique property that seems to be a challenge to get finance. Simon is on hand to provide some solutions for you

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Legal and conveyance

Tim Bishop has a law firm with over 60 employees and has his own property portfolio over the past 15+ years. He has helped his fellow panel members and the Property Expert Panel audience get answers to all sorts of legal questions. Some of the common questions Tim answers is around conveyance, leases and joint venture partnership agreements

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NRLA

The National Residential Landlord Association is an organisation that helps UK landlords with some fundamentals that we cannot do without. These include AST templates for new tenants, inventories to ensure that you know what is in the property when the tenant enters and leaves the property. The NRLA also have a legal helpline and an array of training to keep you up to date with all legislation changes.

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The panel members of the Property Expert Panel often speak about our own troubles with our investments. We support one another as you would expect. This goes to show that we all have issues that need to be addressed. We are thankful that we have one another to provide the right answers by our fellow trusted professionals.

Getting answers is never easy and sometimes “you do not know, what you do not know”. By listening to other people’s issues and how they may be rectified may provide you with guidance for future issues that you are not currently experiencing.

The Property Expert Panel members are both property investors and professionals in their own respective fields. We are also a lot of fun to be around as we are comfortable with one another and with you our beloved audience.

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LNPG

Landlords National Property Group (LNPG) have helped thousands of UK landlords save money on their refurbishment products such as kitchens, bathrooms, boilers. Whatever your requirement you are bound to save money with the LNPG membership. All of the Property Expert Panel members recognise the significant savings that may be made. The reason why their products is so cheap is because they have negotiated the same, if not cheaper rates, with national firms as the local authorities. Now that is buying power at its best.

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Refurbishment

Ross Maynard is a property investor and a project manager. He, like many other property investors, have made mistakes with their own refurbishment projects. With his vast experience of own projects and managing other people's projects he has some great insights of how common mistakes may be avoided or mitigated when things do go wrong.

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Property Monitorship & education

We have already used the expression "you do not know what you do not know". The ones that succeed are the ones that are educated. There is no difference to the world of investing, especially real estate property. Bronwen is a successful property investor and an author. She is keen to help those that need support on their property investment journey and has put together an online training package in addition to her property mentorship programme.

What are the type of questions that the Property Expert Panel members will answer

Can I get a mortgage if I just have property income?

It is always possible to get a mortgage. All lenders have different criteria for the investor and the property itself. This means that one lender may accept your buy to let mortgage application whereby another will refuse it.

Is now a good time to invest in property?

All of our Property Expert Panel members agree that now is the time to invest in property. There are always deals to be had. It is about keeping an eye on the the property market and making an informed decision at the right time

What is an AST?

An assured shorthold tenancy (also commonly known as AST) is the most common type of tenancy if you rent from a private landlord or letting agent.

The main feature that makes an AST different from other types of tenancies is that your landlord can evict you without a reason. They must follow the correct procedure to do this.

There are certain things your landlord must do if you have an AST.

Can I buy a boiler cheaper than retail stores?

The purpose of LNPG is the provision of materials for UK landlords at the cheapest rates. You should not be going to big retail outlets to purchase your property investment items. You will be overpaying.

What are the worst mistakes that people make on their refurbishment project?

The key elements to a successful property refurbishment project is a) costs b) time and c) quality.

Mist times you will see a huge overspend, resulting in the intended Return On Investment (ROI) is missed by a country mile.

Many property investors do not keep on top of their builders to ensure that work is progressing to the standard and time frames that was agreed from the outset. This means the refurbishment project is ongoing when the property should have tenants. This delay often means that the cost will increase and profits significantly fall as there is no rental income.

Finally, we need to focus on quality. If the trades person has done a poor job, your tenant will complain. This will often require rework. This leads to tenant frustration, more time spent on the property and a significant amount of extra cost that was not budgeted.

What is the best tax structure to own property?

Tax structures for UK landlords is a very common question. It is not one that is easily answered. This is because we are all different. Our needs and wants are often unique and you need a tax structure that meets your wants/requirements.

Typically we see a lot of UK buy to let landlords that own properties in their own name. Due to Section 24 mortgage interest relief cap, many UK landlords pay more income tax on their property investments that ever before. This is why more property investors are choosing to use a limited company as S24 does not affect these tax structures. Typically corporation tax in the UK is less than UK income tax.

Do you need to partnership agreement when working with others?

Business and property investing can be a lonely place to work. This is why we see so many property investors that come together and work on one or many buy to let or property development projects.

A partnership agreement is vital. This is because this legal binding document helps to outline one another's responsibilities when working together.

The partnership agreement also outlines what happens if one of the partners is divorced, bankrupt or dies. Many people do not think about these issues during the excitement phase of working with one another.

A partnership agreement also outlines the profit split of the partnership and how much capital needs to be invested.

I have a tenant dispute, what do I do

Buying a property can be complex, getting a tenant into a property also has challenges. One of the most stressful times that a UK buy to let landlord has is with tenant disputes. These matters often lead to a loss of rental income, difficulty getting the tenant to leave the property (despite not paying their rent on time), and the legal costs of eviction.

It is necessary for you to work with the NRLA and for them to help you through the eviction process.

The process of removing a tenant is not going to be quick, or cheap. However, one slip up by and inexperienced UK landlord could result in further delays and costs. Do It Yourself (DIY) in the world of tenant eviction is not recommended.

Will I pay more mortgage interest rates in a limited company compared to my own name?

We have seen that UK buy to let landlords pay 0.5% to 1.5% more in buy to let interest rates if they purchase the property in a UK limited company tax structure.

However, we have seen a lot of UK buy to let landlords pay the same interest rates in a limited company than they would have done so in their own name.

The amount of interest that you will be charged by a lender will depend on your personal financial situation as well as the property.

A House of Multiple Occupation (HMO) is considered to be riskier than a single let property. Hence the amount of interest that a bank will charge will increase irrespective if the property is owned in your own name or within a limited company. These types of properties have similar mortgage interest rates irrespective of the legal structure used to buy the property.

What taxes do I need to consider when buying a real estate property investment?

There are many forms of tax that you need to consider as a UK landlord that wishes to purchase buy to let properties.

Stamp Duty Land Tax (SDLT) is tax that you pay when buying the property investment. There are different rates depending on the type of property and are scaled. The greater the purchase price the greater the SDLT.

There are many ways in which SDLT may be reduced. It is important that you challenge the assumptions made by the solicitor dealing with the conveyance process. Common mistakes are being made by them that could cost you thousands more in tax than needed.

Value Added Tax (VAT). This is the tax that you will need to pay when buying products or services for the buy to let investment or property development project.

There are many ways of reducing VAT, which is typically 20% down to 5% or even 0%. This does depend on the property and the works being done to the property.

Income tax: We are going to suggest that income tax may be charged to both individual and UK limited companies on the profits made on your property investment. This is because income tax is based on profits made in your personal name or in a limited company (also called corporation tax).

Capital Gains Tax (CGT): is charged when you sell a property. UK landlords do benefit from a tax free allowance each year whilst a limited company does not. That said, the limited company may pay less tax on the profit on disposal than the individual. Capital Gains Tax is very much optional and there are many ways in which it may be mitigated. Get specialist property tax advice before you sell a buy to let property or a property development project.

Inheritance Tax (IHT): This is the tax that you will pay when you die. You do pay tax when you are alive but HMRC also like to charge you tax when you die too. The amount of tax that you will be charged on your UK and possibly worldwide assets is significant of 40%.

As with many forms of tax IHT is very much optional and there are many ways in which it may be reduced if not mitigated altogether.

Watch the Previous episode:

Transcript from the previous episode November 2021

there we go

it’s only two minutes past that’s fine we’re not we’re live so good evening everyone my name is simon michelich and good welcome to the property expert panel on the first of monday the 1st of november thank you ever so much for joining us we had a technical glitch which only martin zuckerberg would know about uh which the whole system shut down on us just momentarily but differences between us and facebook we’re now live so good evening and welcome to everyone what i’m going to do there’s actually been a change of format to our sessions tonight so what i’m going to do is introduce the panel members but we’re going to do something slightly differently tonight and we’re going to do introductions with our updates which allows you to then be able to post your questions and we can answer those live tonight on the project experts panel so what i’m going to do is get my schedule to put them all on live so i’m going to do start start share and here we go so let’s go for it so this is our new format and before we make a start on tonight’s session of the introducing the panel members there is a property investment checklist which the panel members and i have been developing together and it’s something that you can download for free with the link below this video so make sure that you check that out and i’ll be posting that link throughout this session as well today so that you can just go on to it join the show um but without further ado teresa would you like to make your intro and we’ll go on to your slide ladies first

is tres with you’re neat no i wasn’t going to give you that pleasure to say that i am here all right so that um is that my slide

yes it’s got your name on it all right sorry i thought there was going to be um my intro intro slide well that’s just your details treasure all right just let people know how to contact you and your website yes it’s all finely tuned the show um yes hi everyone my name is teresa cashmarek i’m here representing the national residential landlord association so i’m here on standby to ask you know to answer any questions related to you know sort of legislation on the the landlord front and those are my my details so please feel free to to email me um there isn’t actually that much because normally i do give highlights of what is happening in the the landlord sector and thankfully there’s not that much um to report this month so i said i said that is good news so i just thought i’d give a recap of some of the benefits of being a member of the of our association um so the top um the top benefit has to be the landlord advice line that we give we have online and telephone support six days a week so you can ring in about anything whatsoever about landlording so that can be health and safety it can be about giving notice it can be about covered anything ask any question and you will be you know guided with the right answer there’s also access to a vast library of documents so you know for example if you weren’t employing an agent um you know you could do all the management yourself because we’ve got all the the legal documents there for you or even if you have got an agent you could use um our contracts and you could give those to the agents to use because you know they have been prepared by specialists and um feedback from our members have been given with regard to the contract so they’re always um you know very they’re always tip-top contracts to put in place with your tenants we’ve also got up-to-date research and campaigns uh so this is this is good because we you know we go out to our members and we ask them you know what is actually happening in reality so you know what is hap we you know we have um specialist topics that we zoning on for example landlords who are renting out to tenants on benefits or you know it could be health and safety or it could be like licensing in a particular area so you know we we do get a lot of information in the media about what’s happening out there in the rental world but you know with our research we’re actually getting it from the horse’s mouth if you will direct from our members so we’re getting realistic data that you can tap into and you know and it is it is interesting if you are looking to invest in a particular area and maybe you want to zoning on any research that we’ve conducted in that area uh you’ve also got access to a property magazine uh which we actually did win an award for for that recently in october the best uh the best property magazine out there and we were up against um people like you know like the witch magazine so that is uh definitely a bonus it’s a really interesting um information filled uh magazine that we get uh once uh i think it’s three times a year uh we’ve also got a podcast um so this month the the topic was all about student less or what is currently happening in the in the student world so if you’re planning to rent out to students that would be a really good podcast to listen to because you’re going to be getting up-to-date information on what is what is happening in that sector and then finally just want to give a discount code so the membership is basically 75 pounds up to two members and there’s another one for up to five uh met people five people so with that called there you’ll get 15 pounds off so that is my up-to-date update today and i shall slink back into the background waiting for some questions uh thank you ever so much treasurer i just lived myself into this uh panel deck as well i am uh sami rushevich from optimize accountants uh we’re property specialists but also expats as well so if you are investing either in real estate or in business within the uk then we can help you if you are either in hong kong america or indeed spain so we can help you in those kind of areas as well as the uk um so not much to an update from me other than your tax return if you used to submit it on paper you’ve missed the deadline that was some days ago so now you are down to the electronic system i’m going to move on from my updates because i didn’t really want to give you too much of a detail today uh and some of the old dates as well so um i’m going to move over to paul hilliard for his update good evening everyone uh i’m paul hilliard i i guess i’m the father figure of the group is simon miserich uh mistakenly believes that since i’ve been investing since 1992 i must be older than him goodness me 1863 i said

well when you get to my age the mind plays very many tricks simon um i’m a proxy investor of buy today i’ve got a dozen hmos i’ve got 10 sa units and i’m also developer of commercial to residential units i own properties overseas in portugal and i have owned a condo in saint pete’s beach florida so expense of the american market i’m also the overseas sorry the operations director for lmpg which had 56 members when i joined in 2012 and we now have over 5000 landlords who say thousands on their kitchens boilers eating plumbing bathrooms paints furniture tiles roofing insulation electrical wall panels carpets and laminates building insurance and appliances dealing direct with the likes of what’s the bosch magnet juicer woolsley johnson paints backseat and 50 other suppliers including the latest member of our partnership which is a company called farron taps which do they don’t know if i’m allowed to say but the cooker type taps uh they are actually manufacturers so uh they do a lot of oa equipment if you understand what i mean by that so ie they brand other people’s they make other people’s brands if you’d like to take it uh know more about uh lmpg then check lmpj out on www.lnpg.co.uk

we are the uk’s largest and best buying group for landlords so over to our special offers this month cool

thank you so i’m sorry but i do apologize today i just cut you short i do apologize so here we go um there’s uh we do a a weekly live event uh and on this coming wednesday at 6 45 we’re asking the question should be switching should you be switching power suppliers at the moment and find out the tips and tricks to get the best prices from a an industry expert who’s going to be the lmpg guest this month uh this week so uh if you need to find out further information on that again go to the lmpd website uh these some of the following are the extra special offers that we get on a monthly basis from some of our suppliers so this month we’ve got johnson paints uh they’re doing colors in cover plus vinyl mats and for only 21 13 for five liters or 42 pound 26 for 10 liters uh you can get the color and you’ll probably find that that’s the going price or cheaper than what you can buy the whites or magnolia for we’re also doing air pure matt which is a brand new innovative bio based paint which uh helps to improve your indoor air quality but don’t ask me oh go and ask johnson’s paints and there’s a special launch price of 59 59.59 for five liters all these price include bht uh from mosley which are a plumbing and heating supply uh we’ve got some super special offers on shower enclosures we’ve got 800 quad enclosures from 99 plus fat um 900 size quad enclosures from 105 plus fat again you know you’ve got to be an lmpg member to achieve those savings uh from juice and uh extra special this month uh that product in there juice at all higher so again if you need anything from a jcb through to i know kango hammers wherever you want to hire or scaffolding towers uh go and check the prices uh from them one of our newest suppliers is ctd ceramic tiles direct uh and they’re doing this month comet range tiles which are lovely uh bathroom tile for 13.80 per square meter and the eagle range of tiles from 24 pound per square meter again check out the website um and finally uh electric radiators direct they’re uh obviously what they say on the tin or their b grade radiators which are usually returns or slight scope marks or 50 off just for olympia members so have a look at that um that’s uh concludes me for the night so uh if there’s no questions bye-bye for the night you’re not answering any questions today paul

paul also if you could provide a link from the website whichever way it was put that through the chat box and i’ll put that through all the platforms as well for you finally thank you

hello hi well i was impressed by the idea that someone has been around since 1863 though that in my opinion makes you a youngster the firm i took over has been around since 1832 so currently that makes me 189 years old and i’ve got all my own hair so i’m quite pleased that at that age right who am i i’m tim bishop from banalicon bishop we’re solicitors who really understand property investors my law firm i’ve got about 65 staff we have a specialist property investor team acting for investors and developers nationwide ranging from buying property selling property litigation all sorts of things and we also have a highly specialist leasehold team now i know there are some questions coming up tonight about lease extensions and our team is possibly the largest most specialist team of its type in the country so that’s right up my alley um and apart from that i’m also an investor and developer i’ve got a i’ve done commercial conversions i’ve got essay bytelet and hmo and i’ve just had confirmation from dear hmrc that my sas my small self-ability scheme that’s a pension has now been approved by them so we’re now putting a small office into that and also buying another house for sa so that’s that in terms of my update actually i’ve got nothing particularly to add this month and for once in my life i’m going to take the recommendation i was given as a child if you haven’t got anything interesting to say don’t say it so for once my family would be delighted to hear me shutting up voluntarily and that’s me i’m shutting up thank you but you’ve got loads of questions tim so don’t worry oh what job a lot of lease questions yeah hold on

over to euros hi so i’m ross maynard i’ve been in construction for 35 years i’m an investor i’m a sas pension holder a landlord a developer i’ve got an hmo and in my day job for fun i run a maintenance refurbishment company specifically running for landlords and letting agents and you find more about me at rosshiffenmaynod.com so every month i like to go through and highlight a few live topics that i’ve come across in the day job in the past month so they are simon if you could move me on uh mentioned this one last month price increases uh construction news are reporting a 74 increase in timber since last august and now we’re seeing that in particularly sheet timbers plies mdfs etc generally 23.5 increase in materials since august 2020 that’s huge again just check with your um your local builder or whoever you’re using for your refurbishments etc um just a word of caution don’t poke the hornet’s nest with them and make them aware of things they’re not aware of if they’re not charging you or telling you about increased costs don’t mention it at the moment um

eicrs this is one that came up this this month for me interest in eicrs or electrical installation condition reports you have to provide those as a landlord um the time scales on these are between one and five years don’t automatically assume that because you’ve got an eicr it lasts for five years it’s down to the ins inspecting electrician to specify depending on the state of your installation so just check make a diary note for when it’s due to be renewed a little product news storm drive been using this recently if you’ve got particular issues with damp or moisture ridden walls chimneys in particular mainly older properties this storm dry is a really really good product it goes on a bit like wallpaper paste in a milky white sort of formula but after two or three days it becomes like a a polished car scenario you can literally throw a cup of water at it and it will splash back like it would on a polished car um check out the website relatively expensive but an excellent product it’s a used once 25-year guarantee um my next specialist chosen subject which i’ve sort of been playing with for the last couple of months i’ve actually looked at this for myself is heat pumps um let me just explain what heat pumps are so you get two general types air source and ground source i’m not going to say forget ground source but unless you live on a an acre development or an acre of land or you’ve got a potential to do a really big borehole then forget ground source they’re not really practical for what we’re trying to do air source a quick science lesson this uses external air to cause a refrigerant inside the unit to evaporate and in turn that that gas is put through a compressor which then pressurizes causing it to heat up if you ever put your finger over the end of a bicycle pump and give it a quick pump you’ll notice that the end of your finger gets hot same principle um um that that obviously generates the heat um they transfer that heat into your heating system it’s the same sort of thing as your fridge at home but it works in reverse it’s not new technology i first saw this i went to germany back in about 2003 2004 and looked at this they had old whole villages that were running on air source heat pumps so a few positives and negatives specifically for landlords not necessarily for for domestic dwellings the positives it’s a very efficient method of generating heat it’s less maintenance the units are a fit and forget there’s no real maintenance other than keeping them clear of leaves and obstructions obviously less carbon they’re safer as landlords there’s no carbon dioxide because there’s no gas um and the life span is generally longer than a boiler and then there’s negatives so they’re high upfront costs i’ve been looking um on the average house is and don’t quote me on this but around about 10 to 15 grand um the significant work to integrate them into your system and that’s where most of the cost comes from the actual heat pump isn’t huge cost there’s issues with weather and they don’t work effectively at very low temperatures and i’m talking sort of -10 because down to -10 you can extract heat out of the air believe it or not you may require planning because the condensed unit that goes outside is similar to an air conditioning condenser so you can’t just bolt it on the side of a block of flats etc and there’s no rhi or renewable homes incentive for landlords correct me if i’m wrong any of the panel but i can’t find anything that says there is and i’ve yet to find a financial case that actually works in terms of payback so it’s really an environmentally conscious question there’s lots of companies out there some very large ones from some very small if you’re looking to change your boiler at the moment get a quote it may be worthwhile you may want to spend the money it’s going to be foresight eventually so we all need to start embracing it how that pans out in the in the next five to ten years will be interesting um just look at all going all electric as well in your house or in your in your rental properties

over to simon there we go look um okay right good evening everybody um so i’ve been uh a landlord and investor um spanning over 20 years i started out uh sort of learning about vitalettes in the year 2000 from a guy called rush whitney who was an american who just sort of released a book out in the uk um i kind of learned very quickly then that uh you could gain more knowledge than the average broker or residential broker very quickly and they didn’t really understand the concept of how a property investor works and recycles cash and that’s really where i honed my skills and kind of took that on yeah so that that’s kind of me um those are my contact details there i cover all of these areas of you know bite alerts bridging refurbishment development loans commercial building semi commercial etc etc if you require funding please reach out so just wanted to give a little tag on from from what ross was talking about um the emergence of energy efficient mortgages so uh lenders are now starting to produce products that are cheaper the cheapest in the marketplace is this particular one here at 1.99 it’s a variable okay it’s a discounted variable please do bear in mind that there are starting to become murmurs uh the interest rates could change uh upwards at some point in the near future so you know a discounted variable isn’t necessarily uh the greatest but you know it’s a great product uh following on from there 2.79 is the next product up and that’s a two year fixed with a great arrangement for you only half a percent so that’s that’s a great little product that will work very well uh they can cater for first-time landlords etc etc so superb um and look at this a seven-year fixed rate for an epc grade a to c at two point nine four percent so that’s limited company lending seventy five percent loads of value fixed for seven years i can hear bronwyn’s husband his mind’s going over time he like he loves fixes absolutely so i i i haven’t actually mentioned it to uh john but you know um yeah and the old five-year fixed at 2.95 so rates are still very competitive they’ve been coming down although obviously that potentially could change the bank of england um do raise rates which they’re sort of starting to talk about the thing i haven’t put in the slides which i’m very quickly going to cover i am now starting to see with the end of stamp duty holiday that residential sales have slowed and some properties that haven’t necessarily have sold um butcher family homes are popping up as buy to let’s now for us seasoned investors we’re instantly going purchase lease options for those of you on the call who are less seasoned speak to bronwyn bromwin is your your educational source for purchase lease options but when you see them pop up in both uh rental and sales uh there’s a reasonable chance that the land you’re the owner of the property might be up for doing some kind of deal which has not been possible i’m you know investor sales are still very strong so i’m still seeing that kind of go along but you know the market has changed ever so slightly from where i’m sat right that’s me simon um yeah we’re kind of the new form actually gone on longer hasn’t it brilliant well well no it hasn’t really because i i think we’re actually answering people’s questions believe it or not in a lot of what we’re talking about but um so yeah it’s great to be here in november um i spelt my name wrong so it’s it’s bro n simon so i’m going to blame the uh chief so

i’m an investor down in hampshire i invest in hmos holiday let’s single let’s guest houses i do short-term accommodation for council tenants and developments and recently yes set up a company in zanzibar but that’s for another time today um in the last yeah the most important thing you need to know about me is that i love to help people learn so i also have a an online learning program which i will talk about in a minute now what i’ve been doing in the last few months is providing a case study so the next slide should just have a quick case study this case study number four i’ve talked about a single let my first purchase i’ve talked about an hmo that i bought as an hmo existing hmo i’ve talked about an hmo conversion from a house and this is the next step up and this is walnut grove in southampton this was a property that an estate agent brought to me i kept going to into the estate agent saying you got anything a bit unusual and he said i tell you what i’ve just got this on my books said i don’t know how to value it will you come around and look at it with me and that is god’s honest truth and you can see this um you know it’s very large house but actually it had partially been converted to flats on one end it was one freehold very large garden as you can see with that second photograph there so with my education and my knowledge it was very clear to me that there was potential here to convert to flats finish the flat conversions that they started about 20 30 years before if not earlier and there was huge planning gain to be made in the garden as well so of course the agent was able to talk to me about the opportunity and we were able to negotiate with the owner and yeah converted it to flats it wasn’t mortgageable so the way we funded this was quite normal for us at this point in our journey was finding investors so we actually had i think it was four joint venture investors so we shared the cost they put the investors put the money in we project managed it and hey we got ross in our panel here ross did the conversion for us so he converted this to flats uh did an amazing job and we still own the um the show flat in this so there’s a there’s an interesting case study if anyone wants all the figures all the details it’s in my book so if we move to the next slide you um this is about my um my training in my book i have 15 case studies this is an amazon number one bestseller book uh published last year before last and um it’s doing extremely well because of it it’s warts and all it’s all the problems we had it’s all the case studies and um yeah i’ll take a screenshot of this particular slide and share it with uh people on social media i’m not going to go through all of the detail of my online program but there is a link in the details below which simon’s going to put in there where i have a free one-hour training session all about where to start in investing and you can find out a lot more by watching that that session it’s free obviously okay so enjoy um and we’re over to his who’s left but uh i can’t remember who we’ve got i think it’s it’s that’s over to questions yeah warner brothers bugs bunnies just joined us for that sort of folks uh so from this point on we are going to be answering your questions so if you are watching this live make sure you do post your questions and we will get to answer them there are a couple of questions that have been put to us as panel members already so we will go through there uh those now and the first question is from derria is is basically said um about uh epz’s um talk about buying a buy to let property through an estate agent but they said well you can’t because it’s got a epc rating of an e now what are those issues and how do we get around those and i think to start us off with this great program uh i think it’s fair to to go to simon first and then over to tereza uh because there’s two different insights here there’s one for mortgages clearly and there’s uh legislation as well that we need to understand so take it away simon wow i cannot believe how informed this estate agent is whilst yes technically you can’t rent it out um which does make it technically in the very strictest sense unmoldable but there are products out there that will allow you to buy this property carry out the work and immediately flip it into a buy select product on the back because you know lenders decide to understand that this is a bit of an issue which isn’t a super duper hard thing to fix there’s a fair bit of work you’ve got to do so chances are you’ll have to do um loft insulation floor insulation condensing boiler windows if it hasn’t got upvc windows or if it’s a listed building another type of solution but yeah and maybe a couple of other bits but generally that’s all you need in order to get to ac ac grade but yeah yeah actually all you need is is a you know an e or better um wow what a

what an opportunity because that that would be below market value because they’ll be thinking they’re attracting in cash only buyers so you could drop in with a product which only requires a 25 deposit and um bag yourself a below market value bmv bargain

overseas all right yes i’ll i’ll give my two pennies worth on legislation uh so yes from 2020 um landlords can’t let out properties that are rated e below e rating so it’s uh it’s not lawful not lawful to do that so unless you can get an exemption on that property so there are some exemptions that you can register register for so you can look into that um it needs to be e and above and the government aren’t stopping there because with the minimum energy efficiency standards they’re looking to raise that as well so it’s worth bearing that in mind with any properties that you’re you have or you’re going to invest in so the plan is that by 2025 uh new tenancies will have to be energy efficient to that c c and above rating um we are looking there there is actually um a huge event going on in glasgow at the moment called cop26 so we’ve got a vast amount of uh leaders from around the world talking about energy efficiency so we’ll we should get some more information on how this is going to apply to the rental sector specifically and also if there’s going to be any sort of grant funding for landlords to you know to meet those those new energy efficiency requirements but yeah please do bear that in mind fox i wonder who’s going to be police in that event

hey if it’s a simon you had your hand up i’ll go yeah sorry i’ve preferred the point to add um obviously through the little update i did you know there are discounts now coming through on mortgages so if you spend that money making your property more energy efficient you can then make some of the cost savings back in terms of lower mortgage rates but also we’re also starting to see that you can rent the property out have less voids and or achieve slightly higher rents by making your property more energy efficient so you know there are great incentives all around to do it um absolutely

uh ross would you like to give your pennies worth because i know on the whatsapp chat you had some good pointers so why don’t you share some of the insights about how someone can easily upgrade their epc standards yeah i think simon’s already touched on a few but the one thing i would add to that is um you’re not talking to change condensing boilers insulation in lofts etc etc that’s that’s running into a few thousand pounds so go get some quotes take it to the estate agent negotiate you know it’s real money if you’ve got some quotes in your hand you can’t really argue

over to you paul obviously the thing i’ll add is uh if you’re a landlord which obviously you will be if you’re looking to do a buy to let come and join lmpg and you will start making significant savings uh uh not only on your epc related products but when your kitchens and bathrooms so yeah uh check out the uh splash boilers and boxy boilers which are all they’re the uh i believe they’re the top two best in the borders in the country and we are able to provide both of those very good discounts so don’t get lmpg so thank you

thank you ever so much for that i’m going to go over to uh to simon hodgson actually uh mandy’s asked a question um so i apply for a mortgage uh to a buy an ex council house with a short lease and the mortgage works rejected my application due to the saleability and marketability issues um what’s the and i’ll go over to um to tim as well afterwards about short leases and what you might be able to do with this particular situation but from a mortgage perspective short leases ex council houses do we know how long the lease was does mandy say she doesn’t know unfortunately no okay i’ve got to finish she might have sent that question in earlier 85 years might have been what she said yes i think it was yeah i will have a quick look now but i think it was something like 85. obviously tim’s going to dive in into the short lease and a lease extension piece far more thoroughly so i won’t really cover that but it that you know that lease can be extended but for mortgage purposes 85 years is an issue so i would hazard a guess that the issue here for tmw especially team member because they’re already vanilla type lender and they really do like to be a very kind of average type property so council house it was probably non-standard construction i suspect or if it wasn’t construction type it might have deviated in some parts of the building but also um owner occupier concentration might not have been as strong as the lender wanted in that area which is also another reason why they sometimes decide not to lend um there’s enough lenders out there that will lend on it um and really that’s part of you know i guess i would say this but part of the due diligence when you you look at placing a case is is to go into all the modern tools that we’ve got look at the house look at where it’s situated where its neighbors are and then work out who the correct lender is to match to that that sort of jigsaw piece and and potentially uh that’s possibly not been done correctly to start with um but yeah it’s definitely possible to get a mortgage on it with the lease length of this that it’s got on it but also extending the lease might help increase its value not as much on 85 years but um yeah tim you can tell us all about how to um uh yeah it’s trigger clause 42 in the in the of the lease extension process i think it’s called it was 85 years by the way said i guess council owns 70 house in the area and the lenders don’t like it difficult for me to get a mortgage okay okay so yeah the yeah the owner concentration has been some of these things so our lenders also do it okay so the rate will be slightly higher than would be you know the average so if you’re buying a limited company uh with cmw you’d be looking at rates just under three percent for two years um if we took that to a lender that would be okay with it you might have to add three-quarters of a percent on top of that potentially but you can still do it but what you should be able to do is buy that property at a cheaper price compared to other properties in the local area but still achieve roughly the same kind of rents your yield goes up so what you’re paying extra incomes and mortgage costs is offset in the return you’re all more offset by the return you’re getting so quite often as an investor they’re not a bad property to look at to be fair

over to tim oh right hello um right first of all just to clarify was this um that council property ex-council probably did something yes it was um okay i’m no lo i know don’t run these cases i think it may be different for the next council property because i don’t think you have the right to buy next council probably but i will need to double check that but broadly for all non-council properties um it’s a very straightforward thing you need to have owned the property for two years that’s a critical thing but there is a way around that and this is what many people don’t realize that if you’re buying a property and you don’t want to wait for two years before you put your lease extension in you can actually uh get the vendor provided they’ve owned it for at least two years to put in the application it doesn’t cost them anything just the application on completion they pass over the right of that lease extension to you um 85 years uh it’s kind of staged when you normally think about a lease extension at the moment they go up immediately when you hit 80s 80 years is always the the worry stage because there’s an extra payment called marriage value um and that can cost thousands of pounds more so literally the second it drops below 80 as the price goes up so in 85 years it’s the kind of time you’re starting to think about one but it’s not urgent once it gets down to 82 or 3 it is urgent and if there’s anyone near 80 you need to act very very quickly because it’s very easy to drop below that 80 period and literally you might find 8 10 grand more it is expensive marriage value and certainly simon says it can be tricky in terms of selling property uh once the lease drops down because for many people if they don’t believe they can get a mortgage and although there are some mortgages available and simon has some limited availability um most brokers don’t seem to think they’re only available the vast majority of agents will say once it gets below 65 70 you’re gonna have trouble mortgaging at all that means cash buyers only and what does that mean below market value and sometimes people if leeches get very short can really be shark bait you know i saw one last week in central london it was like seven years left you know very expensive to extend but um equally um you know if they don’t otherwise in seven years time it will just be gone and that was in chelsea so um anything more on that well i think ross is ross is in for some updates so would you like to share with us just a word of caution buying council houses ex council houses any houses really asbestos outlawed in 85 for the black brown and blue asbestos the white didn’t get outlawed to 99 in this country so again asbestosis and everything it can be in artefacts it can be in floor tails just be really really careful

good good point so we’ll move on to a slightly different subject and this is uh from diana uh diana says uh if i need funds for a big refurb project potentially unmortgageable currently is there a lending product where i can borrow then convert to a to a standard mortgage uh my broker said the foreign they could be referring to bridge to let’s products but these are just the bridge with a guaranteed exit at the end simon what’s your views on this where someone looking to do a development looking for short-term finance and then move over to a long-term product what’s your hint and tips absolutely so this this falls under what i would call a refurbishment loan which is effectively a hybrid uh bridging product so effectively they’ll lend up to 75 percent of the value of the purchase price and up to 100 of the works costs in arrears um having seen a scheduler works and on the understanding that there will be an uplift in value and the value has got to confirm that there’ll be an uplifting value known as your gross development value or gdv and the lender will lend off the back of the gdv and the fraction of the purchase price yeah um there are some members that will then flip that into a uh a normal bicycle product but i think potentially it sounded as if that broker might have been slightly mistaken and confusing bridge to let with refurbishment bridge and they are technically slightly different products um but yeah bridge absolutely again you know great for for multiple messy properties um as we’ve we say many times the more times you can well more areas you can find to uplift the value of a property whilst you’re you’re taking you’re buying it and then remortgaging it greater your chance you’ll get recycling or your cash back out to move on to the next deal yeah please reach out whoever that was i’ve got just the thing for you uh ross is going to come in but g simon with the advice that the previous broker gave do you think they took a bridge too far possibly did indeed yeah get it it’s getting worse sorry guys over to you ross for an update uh yeah i was just going to add if you’re doing development of any description refurbishment always allow a contingency because without best will in the world a building is a building and construction is not like building cars where you know what’s coming up there can be lots of things that will catch you out if you haven’t got a contingency you’re not finishing your project yeah indeed good point uh paul hilliard we talked about heat pumps earlier um and i forgive me i didn’t pick it up in terms of what you might have said but do lmpg have a supply list for heat pumps currently uh we do have a supplier it’s called walls they’ve got a climate division which covers these and uh as ross correctly pointed out air source are the way to go because ground source as you mentioned usually in the boreholes and therefore you need the land uh necessary but the good thing is is that this is explained in about an hour’s webinar in the first one of the second series of lmpg’s meet the experts so air source heat pumps um would uh explain in detail with the various options and various uh configurations uh but basically i mean an air source heat pump which i’m sure ross hopefully will agree is a glorified air conditioning unit yeah yeah the problem we all have is that it is still the early days for landlords on this topic so uh we don’t buy enough uh of these units so we can’t get what a canceled contract price would be for that um we get a professional rate but nowhere near as good a price as we do on boilers but uh there’s an important proviso some uh air conditioning units where you’ve got i think i’m writing say the refrigeration lines separate well they’re feeding into the building if you like uh where you’ve got those you can only have uh the uh equipment bought by a i think it’s an f registered uh gas engineer so yeah so just bear in mind in that so i think in reality we have to wait until 2025 when uh the law comes in that says borders won’t be allowed on new build properties so that’s when i think you’ll see a significant change uh in the last green deal that was around about six to nine months ago there was a 5k contribution for uh air source heat pumps but what we noticed in the marketplace was that low and behold the installers increase their prices from 10k to 15. just so happens to be the uh cost of the benefits that the government were allowing um so um the other thing is uh you mentioned uh boilers and i regularly hear of landlords intending to stock up with gas spoilers uh closer to 2030 so that they’ve got something to replace their boilers because it still won’t be illegal to have boilers in properties we assume at that time so again that’s something to bear in mind uh but yeah as ross pointed out heat pump sorry yeah heat pumps will save you over 50 of your co2 produced and they give an approximate 37 saving on costs so but they are tremendously capital intensive to buy so yeah i think watch your space um someone mentioned electric boilers that’s possibly a route to go uh but i’m not an expert but i would say that basically the saying is is a a one kilowatts of power introduced by electric board it will give you one kilowatts of output mine standing again ross might be able to clarify one kilowatts of uh heat pump uh electrical supply through a heat pump will generate something like three kilowatts

four bedroom house my quick calculation um was about nine kilowatts thank you cool let’s move on from that guys um so i mean paul hilliard’s got some brilliant stories obviously you know he’s been investing since 1863. he was around since when electricity was first put into properties and boy that was an exciting time i’m sure there’ll be a webinar on the lmpt website for that as well um bronwyn i’m going to ask you a question now this has come from peter who says with the rise in inflation and likely interest rates how does the panel feel about the impact on investing what’s your thoughts on that my goodness well the um media have gone a little bit crazy on this topic because of course there’s no news is there and they’re desperate to frighten everybody because kovid’s sort of getting better and so they’re saying oh my goodness interest rates are going to rise hugely um and of course inflation’s going up and it’s likely to go up a little bit more and so yeah it’s common sense economics that interest rates may go up but interest rates have been the lowest they’ve ever been and they’ve stayed low for such a long time so even if they double triple even get to one percent heaven forbid a base rate i’m talking about that you know honestly it for us professional educated investors it’s really not going to make any difference and even if it did go higher you know you’ve just got to do the numbers so you’ve got to go right okay how much is my mortgage going to cost me do i go interest only do i go repayments um what’s the rental look like now rents have been ticking up anyway so demand is not changing in terms of rent it’s going up it’s going up and it’s going up um so the economics of rental and the demand is such that i honestly don’t think it’s going to make any difference to the professional investors to the amateurs out there that think oh my goodness i’m not going to make any money well that’s fine because they’re choosing not to get an education and get their knowledge but for us you know yeah definitely massive demand out there so don’t be put off don’t believe what you read in the media okay believe what you read in books like mine and and what we say on this panel um because people are scaremongering and um you know they’re also trying to get business and do other things so so no it’s a great time to be investing yeah paul hilliard come on yeah i’d like to remind everyone of the well-known saying that we quote on a regular basis here that the best time to invest was 20 years ago and the next best time is today so get yourself educated have a word with bronwyn and uh yeah get in there the one thing i doubt about what roman said was i believe inflation is good for capital investing uh as it’s quicker to raise capital from your equity uh if it’s raising quicker than uh because of the inflation rate so you know you’ll get no money left in your investment far quicker by a higher inflation rate than you run on on a low inflation rate so that’s because of your age pool you’ve had properties long enough

oh my back

i’ll leave it at that oh yes i love it well the perfect the professor is it took his glasses off and he’s put his glasses back on so he’s got an update so mr the professor over here ah thank you simon um i was trying to find out i quote in the economy but i’ll mention that in a minute i see this question coming up a lot and i’m really i like big picture and these guys are the detailed guys on big picture and i think there are five things that even though i’m a solicitor and normally i’ll say on the one hand it’s here someone hands the other i think there are five things that are certain number one interest rates will rise they are at historic low it’s never been as low as that it’s rarely been as low as that in living memory and in living memory with up to 15 so i think they are going to go up that’s number one however equally no one knows what they’re going to go up the economist was writing on this very same thing a week ago yeah and this is probably the most educated magazine in the world when it comes to economics and it’s talking about the british economy and that no one can really predict how interest rates are going to go so but they will go up at some stage that’s number one secondly um as we’re already talking tonight we’re talking about regulation we’re talking about um environmental regulation etc the government and now both sides political parties are keen on big government we are going to be looking at more regulations for investors that is another certainty thirdly i think there is going to be more taxation on investors because eventually all money we’re spending uh in all directions and on covid is going to have to be paid for and investors and developers and landlords are seen as an easy target so there will be more tax next one will there be a crash yes there will be there always is economies go up and down however despite all of that i think that the rental property the rental market is strong and will survive however you will have to be careful and so i think one thing it does say is be very careful about uh deals that are marginal i know in the previous recession people sometimes over leveraged borrowed too much thought they’re going to make loads and loads of money but perhaps the trick is touched take back a little bit just make sure you’ve got a bit of safety margin so if interest rates get up you won’t have a problem some will some people are overextending themselves too many voids so i think certain things are positive but as long as you’re careful and cautious and as long as you plan you’ll survive it’s a good market it’s a strong market it will continue to be so wow that was very well put together though it’s almost scripted pretty perfect um now anyone listening in for tonight’s show on youtube it is live so please do post your questions because we will be able to answer those tonight and i’m going to rattle a few off i’ll here for you guys uh abodum um welcome and good evening to you uh on youtube live i said what what advice would you offer while buying a property whose replace windows has no fancy certificates um the in the i think the investor is saying that uh he’s got problems with the fences certificate not being there i guess there’s going to be mortgage issues um simon so if you can come on to that and maybe ross is there something that they can do as a quick uh remedial

rust did you go first with the works yeah um fences like anything it’s a it was brought in back in the 90s to try and control the exploding market of ubvc window replacements

get a fencer recommended contractor out to have a look you might have to pay them to do it they can’t as far as i’m aware you can’t retrospectively certify if they weren’t fencer approved when they were installed at least the guy can check that they’re installed correctly and they’re not likely to fall out and the victims they’ve used are correct it’s probably all you can do um simon mortgage-wise that’s one for you i’m afraid yeah i mean in terms of mortgage-wise it will fall into the products that we’ve discussed thus far so a refurbishment loan type scenario would be suitable um yeah we would take care of that there are a couple of lenders out there that will also allow if it’s relatively easy to sort that that challenge out will allow the works to take place inside of 30 days and flip it straight on to a buy to let in some circumstances so there’s flexibility out there to make you know to kind of make that happen um yeah as long as you follow ross’s um lead just do your homework and work out exactly what needs to be done that can be then putting a scheduler works which we can then take to a lender an underwriter and convince them that you can do it quickly no problem uh russ you’ve got your hand up again yeah sorry simon my favorite subject when we talk about windows and upvc windows if they’re bay windows just be really careful that they’ve supported them correctly if everybody’s ever seen a boeing bay window which i mean it’s actually dropped it’s because the upvc isn’t the timber that was there to structurally support it so again be really careful okay i think this these certificates could be a real pain moving on um so the question that we’ve got from suntart was um would sdlc be payable if you move properties from an llp to an spv um and stand due to land tax we will talk about here is the tax that you pay when you are purchasing a property so we have to remember that a limited company is a separate certainty from you so if you are transferring properties from yourself to a limited company it’s separate from you as an entity so you will pay standard july tax but there is an incorporation relief you can have if you transfer your property portfolio all in one go to that company and that’s a big old subject there so i’m not going to go into too much detail there but do speak to a tax specialist on that specific area um so the other side of the questions i had was oh okay so another question was um from silas was saying if you buy your first property in a limited company do you pay three or five percent stand due to land tax and that’s a good question because the there is a three percent uh minimum start due to land tax before which is the high rate and then there’s the banded rate so actually both answers are correct you will pay three percent and potentially five percent because you combine the two percent um scaled rate with the three percent flat rate but obviously the the higher value of the property means that you will pay more to stamp due to land tax as well so make sure you get some special advice and i know that uh tim doesn’t like me to do some convincing bashing but i’m going to do it anyway there are plenty of convincing solicitors who use standard html calculators for sdrt which results in people paying too much tax when they’re buying property some quick insights of what you can say on how to save statutes land sites firstly is chattels chattels are the fixtures inside of your building you only pay stamp duty land tax on the bricks and mortar of the valley of the building not the furniture within it so if you can negotiate furniture sale then do that because you could say so don’t do that mind tax don’t forget if you’ve got a property that’s got mixed use so you’ve got a shop above uh or sorry below a flat then you’ve got a mixed use property so that you’ll be based on non-residential rates of sclt and you would avoid the three percent sale to you as well uh we’re seeing quite a lot of transactions at the minute going through that uh whereby we’re saving people thousands of pounds of just sclt and if you have worked with a convincing solicitor in the last two years and you’ve overpaid we can help you get that money back as well um so there you go um so lady has asked the question i’m looking at a grade two listing building where can i find details of what the specific elements are online what top tips can the panel offer now ross you got your hand up again i’m not sure if that’s to answer that lilly’s question or if anyone else can answer that please chip in i would just say be really really careful really careful it’s a mindful depending on who your local heritage officer is depends on how bad or nice that experience can be i’m dealing at the moment with a 400 year old house they want drawings of windows profiles etc etc it’s it’s a minefield be really careful she wants to be able to find the can you look online to see what the listing actually says before she buys it i’m not aware of that tim is that something you know you’re aware of into the details sorry didn’t quite catch that so we look we’ve great two listed buildings and it talks about specific elements i’m not sure what specific elements are but if there are particulars with regards to that greater listing building what you can do with it what you can’t do with it or what the issues are uh is that something you can find online um i guess so that’s it’s just more as a planning issue perhaps you know i know sometimes there are issues with with you know the way you can paint houses on the outside or certainly on building rigs i don’t know in conversions i’m sure it’s on the panel no more than me it’s gonna be all sorts of issues if you’re looking to convert this to building i had to look at a list of building recently and i’m kind of walked away for it you have to be so careful what you meant you have to put the right kind of mortar on the right kind of paint whatever but um it’s not really so much a solicitor thing i think it’s more of a planning and building brexit i think yeah yeah i think um from what i’ve seen with other people i haven’t bought listed but i know that you know sometimes the listing can be quite straightforward it’s in a conservation area it’s windows and doors and actually internally doesn’t matter but for others it’s you know it can be as detailed as you know the coving around you know the rooms uh the lighting i don’t know you know it can be all sorts of really technical detail in which case whoa that’s going to be really hard because when you refurb something you’re going to have to spend quite a lot of money i would imagine so um yeah well i’ll see if i can find out more about whether you can see this stuff online but tereza you might uh i don’t know whether you you know anything about around this but um yeah let’s move on well paul julio’s got his hand up so paul would you like to share some insights as someone who was around when they first started this in buildings i was going to say that yeah brilliant i think it’s it’s just necessary to just remember there’s there’s three types of grading for listed buildings there’s grade one grade two and grade two star um i’ve recently for my sins bought a grade two stylistic building and literally everything from door handles uh through to as ross mentioned you know types of windows the profiles that they’re you know they’re all protected um we’ve even got an archway in the uh house that is specifically listed you can get information from heritage england so if you if you speak to them they’ll be able to point you in the right direction of how detailed the listing is but just remember it’s not just the building it can be structures within the building hence i mentioned my archway uh on the building i’ve bought i’ve got a 1500 and it was 1500s that’s a summer house and it’s not anything glorious it’s just in my view a glorified bus shelter but it is very specifically listed and although it’s falling apart we are going to have to reinstate it so which one have pleasure doing but you know you have to be so careful um the thing is is that certainly great too are the main types of listing in buildings so you’re looking at i think it’s over 90 percent of buildings are if they are listed applied to grade two grade two star which is mine is which an old manor house then that’s uh about six percent and then there’s about two percent grade one i’ve yet to come across a grade one except really old buildings that you know churches and real old cathedrals or whatever generally any listed building can be any building over 30 years old so just remember that so although you’re buying it today this one is listed but you know you might be buying one that isn’t listed i bought one in in the birmingham jewelry quarter uh pool in the early naughties and from speaking to the local planning officer and saying oh i’m looking to do this that and the other uh by the time i put my planning in he converts it into illicit building which was a bit bit naughty so just be careful that even though it may not be listed they can list it very quickly um the other thing is is that more or less any building built in the 1700s so yeah places where i was born etc um that’s usually to retain the original features they will be listed building so uh yeah it’s it’s even to the extent on the property i’ve got i’m looking to put a new brand new greenhouse in uh but i’ve gotta go for listed building consent and planning permission because don’t forget uh most buildings that you put in your back gardens are either committed developments and therefore you know you don’t normally need planning permission but anything that’s listed you will need planning permission force so just be careful check out hurricane england and uh the other you know top tip if you’re looking at developments then i would say avoid uh if you want to do any improvements just be careful that anything that you do must be done on a like for like basis so i think that probably concludes that topic thank you and to be fair well you’ve uh you could probably have lots of conversations over a romantic meal candlelit dinner you know talk about protein with you good lady and of course uh once upon a time that was the only source of lighting for you um so you know that’s it’s it’s great to have some insight with the electricity that you can share now with us on this very webinar so uh welcome to technology uh i’ve always asked the question is when creating a new lease on a flat what is the best lease term is it 999 150 125 years um tim that i’m over to you on that particular question 99 years was the most common uh it tends to be more like 125 year now um and nine nine nine years obviously is often really gonna end up the share of freehold you’ll extend it so it really depends if you are a freeholder or a leaseholder frankly if you’re a freeholder um then you actually want a shorter lease because in that case you’re going to be able to charge for lease extension due course if you’re a a lease holder however you want as long as possible so i suppose that’s the issue i don’t think on the whole uh certainly 999 or 125 it’s not going to be a major problem selling it to be perfectly honest 125 you know 999 is effectively freehold apart from some restrictions 125 is not that different because most of us aren’t going to last that long um but 99 years is less common so really i think it’s a question of whether you’re a leaseholder or a freeholder if i was a leaseholder you know you want it longer if it’s a free holder you want it shorter really i guess um anything i would say is that might be an estate agent issue it may be that of all the other flats locally 125 and you’re offering that 99 it might be less attractive you might be a bit cheaper um i guess can i just add one other thing only sold earlier on i think i may may have been slightly incorrect and bear in mind unlike richard branson i always employ people much cleverer than me on least extension i think we refer to flats i was getting confused with crown crown property you can’t do these extensions council flats you can you can send a service section 42 notice so i may have misled someone in which case my apologies which team members listening into your show tonight

i know lisa’s become a big thing today that and cop 26. so so lisa’s if um it’s a good point tim because if if you’re buying then you need to be aware of that but also if you’re looking to as we did in that case study create flats you’re creating leases then you there are different ways that you create the lease to actually increase the freehold value okay so think that that example we bought that property we converted it to six flats we owned the freeholds if we if we create the leases we have six leases under freehold now if you if you if you’re very clever around creating the leases you could obviously shorten the lease amount to increase the value of the freehold we didn’t do that because we felt that wasn’t really fair but different clauses within within the lease if you speak to an expert like bernie wales who was my expert and still is probably the best expert in creating leases he certainly enabled us to get a much better freehold value when we sold the freehold on that property so just a thought for more experienced listeners here and on that probably the most critical we work with bernie as well um yeah probably the most critical thing there apart from the length the least probably is the ground rent um now there’s a lot of controversy with the ground rent um but ground rent if it’s if the higher you set it the higher you’re gonna be able to sell the freehold for but the problem is it balances because the higher you set it it can make flats um unaffordable um certainly i know some flats locally who decided to be clever put the price up um and actually created a problem selling the freehold then or equally the flat so you do have to be careful to get a balance there has been lots of talk of changing legislation the government made some some wonderful promises they’re going to save leaseholders tens of thousands of pounds last year the law commission reported there were 100 recommendations on lease extensions 100 on three hour purchase 100 on right to manage enormous detail so far one single thing has been announced and it doesn’t it’s not backdated it’s only for future leases so it doesn’t apply at all so um yeah so i think when you do create flats you can sometimes create value the other thing worth pointing out at the moment the value of freeholds purely freehold so once you’ve taken the leaseholds out is less on the hole than it was um certainly with all the government worry about um supporting leaseholders freehold prices dropped significantly although they have picked up since then but they’re not as high as they were at one stage but certainly they’re one of the there is certainly a value there but again one last thing on that um people often if they’ve just got one set of freeholds will sell the freehold if you run the freehold there are quite a few things you have to do and for an individual it can be a bit onerous which is why a lot of people do actually sell free holds to people who do it on a regular basis and manage it professionally um thank you guys what i’m going to do now because it’s ten past eight already can you believe it um i’m going to do a quick fire around session so i’m going to just throw in questions as i see them come up i’ve always come to ask a couple of questions uh one question was why do pension uh funds purchase the freehold of a property my understanding is that pensions can only buy commercial property uh so freehold must be part of that same thing but it can be a good way of earning money in your pension uh tax free so you get money from that tim you had a punch on that one yeah one of the main reasons pension funds used to love it and i’m talking major major pension funds is because of the predictability of income with most assets it’s very difficult to predict your income but with this with a with a freehold it’s very very predictable because you know you’ve got a price coming in guaranteed for 10 years until it’s time to go by x percent it’s all in the least so you actually know what the price of your income is going to be for someone like 125 years and there’s no risk they’re no voids so it’s unbelievably certain which is why pensions adore them no good very good point and i’ve always asked the final question do you need a group structure when building portfolio no um so i’m going to leave it there because uh group structures and tax structures really does depend on your situation and therefore there’s no generic answer so i’m going to avoid that question from that point and brian’s asked in fact do you want i’m going to go on to live because anyone who’s been watching live it’s clearly good to be wanting to get their questions in so i’m going to fire through this see if there’s any questions that i’ve got on here um max chung uh who is in hong kong uh you can’t believe how amazingly late it must be over there but uh max chairing has asked simon hudson it says is it more difficult for a director to get a mortgage and interesting enough there’s another question which i’m going to amalgamate is i’ve heard that the interest rates are typically about 1 3 more so could you put those two questions together okay um well i can answer that question we can answer in a couple different ways first of all if you’re a director and you are uk domiciled um is it any more difficult to get a mortgage absolutely not if you are non-uk domiciled and not a uk passport holder potentially you will make it slightly more difficult it can be done but it’s not easy um are the interest rates higher yes typically uh limited company mortgages are one to one and a half percent more expensive than their non-limited company um brethren however um you absolutely gotta get independent specialist tax advice to work out whether buying in your own name or a limited company is the right thing to do and if simon and i have many a conversation and it’s really individual um you know if there is no one [ __ ] fit answer for everybody for sure thank you for that um i’m going to go hopefully a quick answer it feels like this could go on for hours and let’s not make it hours um but it says how best to maximize our money for the best yields should we all do services accommodation or is this still room for hmos um paul here you are because i know you do both wrong you do both quickly from your perspectives um what’s the pitfalls of jumping straight to service accommodation over hp uh well first of all i’d say that hmos are more certain and predictable than service combination because uh don’t get short essays are short-term uh living short-term letting so you know it’s some predict you know unpredictable your cash flow and the other thing is you’re running costs are significantly higher uh for service combination but don’t forget so are the returns but i’d say service accommodation more of a business uh specialist business and rather than hmos is complicated but yeah far more easier in my view both to you probably yeah so so again get get knowledge understand the pros and cons and there are pros and cons of both of them and it depends on what you’re looking for in terms of return our hmo’s saturated we i get that question asked all the time and in fact seven years ago when i started i felt the same oh can’t do hmos because it’s saturated now it is difficult it can be difficult but it’s not impossible so with hmos definitely the demand is still there young people cannot afford to rent uh flats they they need to share and in fact they enjoy sharing with other people what you’ve got to understand is what’s the marketplace in the area that you’re looking to invest where is the demands where do people want to live and how do you differentiate your hmo from all the other boring ones down the road get a planning consultant a local planning consultant that understands hmos and what the article four areas and planning requirements are and if you if you’ve got your power team around you you can absolutely pinpoint pretty much down to the street where the opportunities might be so hmos i have i have a number they’re they’re my bread and butter and yeah what i suggest for anyone looking at you know which strategy is to watch my free training course hence it’s in the link but more than happy to to share information you’ve got to get knowledge to be confident in what you’re going to do okay then simon over then quickly over to tim oh yeah just a real quick one if you’re new to investing you will find getting a an hmo mortgage slightly easier than a service accommodation mortgage lenders tend to want more experience before they’ll let you have service accommodation that’s only because service accommodation is a fairly new uh arena so therefore there aren’t as many lenders lending into it hmo’s been around for longer so therefore they’re slightly more relaxed about your experience before they’ll lend into that

hi at the risk of repeating myself i think i said this last month came across some fascinating research which said that the number of 18 year olds in the country will be increasing by 25 percent of the next 10 years there’s a real demographic explosion of 18 to 30 year olds now with most hmo places being taken by young people probably 18 to 35 that means there’ll be 25 more people looking for property and a lot of those will be going for hmos so i would say in the next 10 years there’s going to be a significant increase in the demand for hmos once you get beyond that demographics are changing again but hey it’s 15 20 years off i’m not planning longer than that so in the next 10 years there’ll be 25 increase of 25 of 18 plus perfect there is a question that sebastian’s post about so first time buyer looking to buy properties i think talks about stamp duty land tax i think council as well uh sebastian if you’re listening in it’s pretty better for you to speak to broadway and actually book a coaching call around that because i think there’s a couple of things underlining factors that you might need to think about how to develop a strategy uh which i wouldn’t have thought you would get on this show if i’m totally honest with you reading the question there’s a lot in there yeah yeah more than happy sebastian i think we’ve spoken in the past so yeah just booking my in my 30-minute free consultation um the question was interesting enough uh buy refurb refinance with everything that’s been going on guys with the uh the the increase of materials the increases of labor i mean labor is now going up with a zero on the end um and the lack of of financing around the valuations i’ve noticed that banks are kind of saying to the valuers actually won’t want you to put the value down slightly it’s a risk that the buying refurb refinance strategy no longer works right over to you first and then simon to follow up on that one i think that’s one more simon than me um from the cost of actually doing it though yeah i mean all people really adding that much value compared to the actual cost of work getting done i said last month there’s almost a perfect storm you’ve got increase in materials you’ve got the builders are the busiest they’ve been in 10 years if you try and get hold of a plumber an electrician at the moment you know you wait in weeks maybe months if you want a an extension built you’re definitely into months so there is a perfect storm of a situation occurring that everything’s going up and prices are rising as i said earlier contingency on everything and you know i used to say 10 i’d now say 20 probably in ask me next month i say 25 the way things are going

simon

i mean it’s still possible um it’s definitely harder to do no doubt about that you’ve really got to be key around your numbers as ross was going to highlight you know make sure that you’ve got contingency written into your um refurbishment plan for sure um yeah buy right absolutely educate yourself first um clearly that’s reaching out to brauman making sure that you understand the market you understand different strategies understand how to add value um because you don’t necessarily add value by just spending money on the property it’s where you spend it how you spend it the key areas and specifically within an hmo if you’re creating a a real kind of community feel within that hmo you can significantly significantly uplift the value and uplift your rents and then value the property off the rent

uh ross you had your hand up that said now poorly the artist

all right um just a quick i’m i’m doing a quick refurb on a property at the moment uh spend was probably cost was around 600k uh refurb as ross currently said is very expensive so what i valued at 40k is now costing over 60 but the

sale value of the property as long as you make sure you’re making 25 i’m looking at approaching 80 per case so as long as the market doesn’t crash then uh there’s plenty of margin in it so just uh just make sure you do the sums and uh everything will work and obviously don’t forget you know the key areas that you need to look at uh heating system uh kitchen and bathroom those are the three areas that always uh add value and especially if you’re buying uh through an mpg

brian’s asked a question well not oh sorry um ross sorry yeah i was just going to add one bit like this one with your uh golden cat from thailand i get your attention simon just just nail the scope just make sure you’ve nailed the scope um with that with your contractor um because it’s those scopes slips and the the expansion of the scope that always cost you the money so write it if you’re not sure how to get in touch i’ll show you how to write a scope it’s really really easy once you’re on the ross um brian’s i’m not sure if it’s a question or a statement but he says heat pumps i understand that they are less effective than gas plus there is an issue of meeting new level cepc requirements see which many landlords are saying that they have to change to gas to get above f any comments on that no i can’t see how uh heat heat source a heat pump is going to affect it’s only going to i mean it’s renewable energy so it’s only going to increase your your epc etc i’m not quite sure where it’s coming from again please get in touch directly and i’ll see if i can answer that um and the last question i’ve got is palm or not last word on the this for you um it says here i’m looking at a property not sure if there is a japanese knotweed would a survey be able to qualify this and more importantly what can you do to remove it

great question how long have we got um yeah japanese knotweed first of all about 30 seconds well first of all go online and just google pictures japanese knock weed is not a stable plant in that it’s green one day and it stays green it’s it flowers it’s quite an attractive plant um when it’s in full bloom but unfortunately don’t want full bloom anywhere near your property get a specialist in get it checked don’t don’t take anybody else’s advice it’s a specialist every time um for japanese knotweed don’t run any risks

you need an insurance backed um treatment program in order to get funding on the property otherwise you have got no chance of getting funding yep forever um yeah there are specific boundary proximities that do help or make it easier to get mortgage but yeah a proper insurance backed warranty treatment program is the belts and braces way to go forward and the safest thing you could do because once that plant gets near your property you are in big trouble yep teresa teresa i did actually listen to somebody talking about japanese knotweed recently and it was fascinating because it’s quite easy to misidentify it um and there is a company called japanese notweed limited who will actually identify it for free so i’ll pop that in the chat box um but yeah i think it’s good to get a good identification that you have actually got it

good there’s plenty of pictures online plenty of pictures that will give you a rough steer and then get the experience yeah if you could if you have that link i certainly will put that into the uh the main forum uh box um tony’s funds are put in here what people what do people think about the proposed four percent statutory land tax surcharge increased from three percent uh that was withdrawn from the budget last minute to be honest tony there’s a lot of things that was removed from the budget which i was stunned about um namely the capital gains tax reform which was meant to be aligned to income tax was it mentioned anywhere no it wasn’t and to be fair uh listening to the boring budget because nothing really happened and part of the thing that i was a little bit disappointed about was rishi sunak who criticized the government of 10 years ago of how bad the financial state affairs was um only to realize that the conservatives were in power a bit of a faux pas i wish someone would check his work before he launches it um so you know i wasn’t the only one who makes the media mistakes by spelling bromwood’s name wrong uh mine is nowhere near the mistake that was um so let’s go into uh vernon young his last question is a property held in two personal names trading as a property partnership subject to cgt if it transfers to a limited company and some of the question that was posed earlier about standard land tax there is something called incorporation relief again too big for this forum to be talking about but do get some tax advice from your accountant to talk about how you can move your properties from your partnership into a limited company um palm off tip um it says if you are a freeholder of a building with a commercial on the ground floor and a separate individual flats above can you split the title between the two and convert residential parts to a flying freehold tim what’s your thoughts on that one

um i’d have to ask one of my lawyers to be honest of course you can title it that’s not a problem at all it’s the frying fee hole but freeing the flying freehold bit was going to get my teeth around i’m not sure of again happy to contact if you want to contact me um i’ll run it past one of my specialists but certainly entitled split flying freehold not sure okay uh simon you’ve got your hand up yeah and unless i’ve misunderstood the question um typically you would the residential part you would create as a lease and then that would become leasehold so therefore gets around the flying freehold part if you kept the residential part as freehold yes technically it’s all flying and then you limit the number of lenders you can take that too there are some lenders that will do it but very much limited and the rate will go up so the reason for doing that would kind of disappear a bit so i guess you would well hey independent advice which tim can get the guys to give but you would potentially retain the freehold create leases and then raise funding against those leases um over to you you um ross if you don’t mind i’ve got a point here someone saying peter meek on youtube live has said interested to hear the panel’s view about infrared heating as a low co cost heating alternative and i’m sure that um infrared heating was talked about from paul hilliard so maybe you started then over to uh paul to finish off on that point no so do you want to be

yeah it was a question asked a few months ago wasn’t it yeah a lady over to paul yeah maybe maybe we haven’t got anything on it paul any thoughts yeah it’s uh it’s something that’s out there but certainly not something that lmpg have progressed because it’s very little demand

uh matt has asked the question please advise re landlord insurance specifically uh should i go for rent guarantee insurance even though tenants have a guarantor in place um is there anything i should look in terms of conditions et cetera et cetera and if teresa i know that a while ago nrla or back then nla had a rent guarantee insurance they stopped doing it um but could you just describe what that insurance was and what the alternatives are now that nrla might have in place uh well i will just start to say that it’s important that you do get um a specific landlord insurance for your property because it’s not like a normal household insurance because you know you do have to plan for a tenant damage uh voids and things like that so the nrla work in conjunction with hamilton fraser on that so there is landlord specific insurance and you were right the rent guarantee insurance sort of went a bit wobbly last year during the pandemic but it’s back on so um i mean i would say get a guarantor get the insurance in because the difference there is if you get a guarantor in place then that person isn’t and for you know during the term of the contract uh but with insurance like i would for my for myself i would get the insurance and if i was really happy with the tenants after a year or so then i would then i could just shelve the insurance and uh just keep with the guarantor but i think it’s a good backup to have in place but yeah the nrl i do do um the rent guarantee but the tenants would have to pass you know certain criteria so they would have to pass referencing for example to get that insurance okay well ladies and gentlemen what i would say to you here is hopefully you’ve enjoyed the show and if you have enjoyed this show make sure you give this show a good thumbs up on whatever platform you’re on irrespective if it’s youtube linkedin facebook dailymotion or twitter make sure you give it a like because it does help with the algorithms across the platforms and equally don’t forget to subscribe to this youtube channel as well so we can notify you of every week when i release a snippet from this show so if you’ve missed anything don’t worry we will be releasing snippets from this show every single week too and bronwyn final question to you really to conclude on our show but obviously we’re getting towards 2023 what are you looking at as a property investment and what do you think people should be looking for in in the next 90 days yes again a question that’s asked all the time around well what’s what’s happening to the market and what’s the plan for the next year um first of all you’ve got to understand what’s the demand in your investing area what the strategies are that you already have experience in and if you’re if you want to get into commercial and i spoke to somebody recently who was starting out in investing and they went straight to commercial i mean it’s possible that you’ve got to get a really good education around the risks so masses of opportunity out there the market has slowed in terms of uh people buying but actually more people now i think are starting to put their properties on the market they’ve got a future they’re looking ahead to next year uh it’s a great time to buy just before christmas in my experience so i’m encouraging people to keep an eye out there um we talked last time about um repossessions sometimes the courts actually haven’t opened um so there’s been a lot of delays in the courts but yeah i’m i’m always looking and yeah i think all of us in this room in this virtual room are investors in our own right and we’re all investing i think is that right thumbs up everybody we’re all investing at the moment and we’re all looking so um yeah it’s a great time to invest so yeah thanks everybody thank you to everybody on the panel it’s been amazing we we get so many great questions uh in advance no matter you know we’ve been running this now for a year and a half and we will continue to run it because we enjoy it but also people we get great feedback so if you didn’t make it this month you’ve got burning questions we didn’t cover you can come back to me so email me contact me and i’ll try and answer it and if not i’ll contact the members cop 26 is currently the topic of the week and we’ve covered a huge amount about being more efficient haven’t we we’ve talked about epcs we’ve talked about uh air source heat pumps so that’s given you a huge amount of knowledge and i’ve just bought an all-electric car so there we are i’m doing my bit for the environment so thanks everybody the next meeting is going to be on the 6th of december monday the 6th of december so put it in your diary now same time same place i look forward to seeing you there bye for now thank you

good evening bye

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