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Living In The UK: Property,Mortgage And Related - Travel (4) - Nairaland

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Getting Into The UK Property Market. How To? Teach Us How To? Get In Here / Living In The Uk/life As A UK Immigrant / Living In Australia/life As An Australian Immigrant (2) (3) (4)

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Re: Living In The UK: Property,Mortgage And Related by hustla(m): 9:22am On Feb 25, 2023
How does your credit score help when buying a house?
Re: Living In The UK: Property,Mortgage And Related by dustydee: 3:49pm On Feb 26, 2023
Can someone with help to buy buy another house using a limited company?
What are the disadvantages of buying a house in a business name rather than in your name?
Re: Living In The UK: Property,Mortgage And Related by Bourne007(m): 5:01pm On Feb 26, 2023
Yes you can if it's BTL

If it's for residential purposes, not sure but I doubt. It is expected that your HTB home is your only residential property. Plus Ltd are typically available for 'Special Purpose Vehicles' so might be difficult to get.

dustydee:
Can someone with help to buy buy another house using a limited company?
What are the disadvantages of buying a house in a business name rather than in your name?
Re: Living In The UK: Property,Mortgage And Related by dustydee: 5:13pm On Feb 26, 2023
Bourne007:
Yes you can if it's BTL

If it's for residential purposes, not sure but I doubt. It is expected that your HTB home is your only residential property. Plus Ltd are typically available for 'Special Purpose Vehicles' so might be difficult to get.

Thank you. It will not be residential. Please can you explain what you mean by Limited are only for special purpose vehicles?
Re: Living In The UK: Property,Mortgage And Related by semmyk(m): 5:20pm On Feb 26, 2023
I don't have firsthand experience. However, I can chip in pending when the gurus comes on board.
- By buy another house, are you referring to BTL or a second 'home'
- 'Landlord ltd' or 'special purpose vehicle instrument' as it's called is often used to 'reduce' company tax obligation
- claim interest on a mortgage as an expense
- 'evade' the extra charge in stamp duty
- be prepared for more 'paper works'. Well, what are accountants for!
dustydee:
Can someone with help to buy buy another house using a limited company?
What are the disadvantages of buying a house in a business name rather than in your name?

1 Like

Re: Living In The UK: Property,Mortgage And Related by Bourne007(m): 5:42pm On Feb 26, 2023
A special purpose vehicle (SPV) is simply a regular limited company which is used solely for a particular purpose. In the case of property investment, it's used to purchase, sell and rent out properties.


dustydee:

Thank you. It will not be residential. Please can you explain what you mean by Limited are only for special purpose vehicles?
Re: Living In The UK: Property,Mortgage And Related by dustydee: 6:24pm On Feb 26, 2023
Bourne007:
A special purpose vehicle (SPV) is simply a regular limited company which is used solely for a particular purpose. In the case of property investment, it's used to purchase, sell and rent out properties.


Thank you very much.
and
@semmyk
Re: Living In The UK: Property,Mortgage And Related by semmyk(m): 7:55pm On Mar 15, 2023
Crosspost from Living in the UK: long and short, be #streetwise out there.
rayralph:
For mortgage hopefuls & first time buyers
This is an interesting conversation
Link to post below
https://www.reddit.com/r/LegalAdviceUK/comments/11q9nq8/estate_agent_lied_about_there_being_other_bidders/
kode12:
There's nothing to take here for the ordinary man. When it's a buyer's market, you can make small shakara, but when it's a seller's market there's nothing you can do, you'd be outbid and gazumped even at the 11th hour. If not the ex-staff that leaked the information, the buyer wouldn't have known what went on internally.
During our home purchase, the estate agent came back after our offer was accepted that the seller had gotten a ~8% increase at that time, houses were being snapped up even before they were advertised, we went back and forth a couple of times but didn't want to deal with going back to the market, so we accepted it and went ahead.
I still don't know if there was ever another offer being considered or the estate agent just wanted to fleece us, but after the purchase, we found out the estate agent was the seller's sister so......

1 Like

Re: Living In The UK: Property,Mortgage And Related by Santa2: 11:09pm On Mar 15, 2023
I have been looking into the First home scheme. Its supposedly a scheme started in June 2021 strictly for first time buyers where the buyer gets 30% - 50% discount on the cost of the property. But it not as much known as because of the HTB scheme was more appealing. There exists a caveat though, you can only sell to a first time buyer and would have to apply same discount as you were given. Looking at the possibility of getting an broker to get more clarity and possible options.

2 Likes

Re: Living In The UK: Property,Mortgage And Related by Nobody: 7:08am On Mar 16, 2023
Confirmed that Barclays lends on 10% deposit to Tier 2 people, with a minimal 2 year residence in the UK.

12 Likes 1 Share

Re: Living In The UK: Property,Mortgage And Related by Santa2: 9:04am On Mar 19, 2023
koonbey:
Confirmed that Barclays lends on 10% deposit to Tier 2 people, with a minimal 2 year residence in the UK.

I understand Natwest does 5%, doing more research on it.

4 Likes 1 Share

Re: Living In The UK: Property,Mortgage And Related by semmyk(m): 11:56pm On Mar 19, 2023
Thanks for highlighting this - First Home Scheme. Adding to first post.
I checked it up on YouKay Gov - https://www.gov.uk/first-homes-scheme
@Ticha, any insight on this.
Interestingly, Ireland has a similar scheme! https://www.firsthomescheme.ie/
Santa2:
I have been looking into the First home scheme. Its supposedly a scheme started in June 2021 strictly for first time buyers where the buyer gets 30% - 50% discount on the cost of the property. But it not as much known as because of the HTB scheme was more appealing. There exists a caveat though, you can only sell to a first time buyer and would have to apply same discount as you were given. Looking at the possibility of getting an broker to get more clarity and possible options.

Re: Living In The UK: Property,Mortgage And Related by Solumtoya: 9:52am On Mar 20, 2023
Santa2:
I have been looking into the First home scheme. Its supposedly a scheme started in June 2021 strictly for first time buyers where the buyer gets 30% - 50% discount on the cost of the property. But it not as much known as because of the HTB scheme was more appealing. There exists a caveat though, you can only sell to a first time buyer and would have to apply same discount as you were given. Looking at the possibility of getting an broker to get more clarity and possible options.

Yeah, there's also a maximum household income cap. So if your combined income is high, you don't get it. One has to confirm that it's not public funds too especially since the Council are kinda controlling and allocating the scheme

1 Like

Re: Living In The UK: Property,Mortgage And Related by Ticha: 10:38pm On Mar 21, 2023
semmyk:
Thanks for highlighting this - First Home Scheme. Adding to first post.
I checked it up on YouKay Gov - https://www.gov.uk/first-homes-scheme
@Ticha, any insight on this.
Interestingly, Ireland has a similar scheme! https://www.firsthomescheme.ie/

This looks very interesting!

2 big fish hooks - you will always sell at a discount and to another first home buyer which in theory is ok but majority of people rely on the equity from their first home to buy their next one. In a market where prices are stable and or declining, you'll actually be selling at a loss. This would translate to people not doing up the houses - any monies spent is lost as renovations almost always does not translate to equity uplift unless it's huge renos. Plus being fr only first home buyers totally narrows your buyer pool.

My advice will be to only go for this if you know you'll live there for a very, very long time to negate the impact of the discount.

3 Likes

Re: Living In The UK: Property,Mortgage And Related by AgentXxx(m): 8:30pm On Mar 24, 2023
Very much interested Ma smiley
dduchess90:
Hello all

I can hopefully give ideas on Shared Ownership scheme( part own,part rent) if anyone is interested in that.

Cheers
Re: Living In The UK: Property,Mortgage And Related by semmyk(m): 8:24am On Mar 25, 2023
Crosspost
slimanyd:
Good morning boss. Can a new immigrants attempt to buy a house without any authority rasing high brow and when do you suggest such worker to do it after entering and what does such worker needs.
Focus, strategy, tenacity, resilience
semmyk:
Placeholder 2
____________________
[Mortgage waiting period]
... ...
_____________________
semmyk:
Placeholder 4
____________________
[ Repost of earlier attempt at collating selected posts on property investment]

Be ready for research, research, research. Don't follow the pack. Research and follow through on your intent. It's a marathon, not a sprint. Be ready to put in the hardwork, gain insightful experience, sacrifice and live a non-BUGA life (that doesn't mean you don't treat yourself!).
... ...

1 Like

Re: Living In The UK: Property,Mortgage And Related by semmyk(m): 8:50am On Mar 25, 2023
AgentXxx:
Very much interested Ma smiley
dduchess90:
Hello all
I can hopefully give ideas on Shared Ownership scheme( part own,part rent) if anyone is interested in that.
Cheers
Thanks for bringing this up again. It went off the radar. Below are some research. Not firsthand!
I'll say: get a foot into property ladder/chain, probably. Way to go, probably not Dduchess90, over to you

Unbiased: Shared ownership: downsides?
· 1. You are still a tenant · 2. Stamp duty · 3. Service charge · 4. The lease · 5. Sub-letting

YouKay GOV.UK: Shared ownership homes: buying, improving and selling
You can buy a home through the shared ownership scheme if you cannot afford all of the deposit and mortgage payments for a home that meets your needs

Share to Buy: What is Shared Ownership?
Shared Ownership allows you to buy a percentage of a property, paying a mortgage on the share you own and rent to a housing association on the remainder

Homeowners Alliance Shared Ownership: What is it? Is it worth it?
Shared ownership is a great way to get a stake in a property when you can’t afford or can’t borrow enough to buy outright on the open market. There are, however, common complaints from people in shared ownership schemes. This guide points to the pitfalls you’ll want to avoid...
What are the downsides to shared ownership? · 1. Maintenance charges · 2. No renting allowed · 3. Buying up increased shares in your property can be expensive · 4. Restrictions • 5. risk of negative equity • 6. Selling

3 Likes 1 Share

Re: Living In The UK: Property,Mortgage And Related by Santa2: 6:18pm On Mar 25, 2023
Solumtoya:


Yeah, there's also a maximum household income cap. So if your combined income is high, you don't get it. One has to confirm that it's not public funds too especially since the Council are kinda controlling and allocating the scheme

Yea, We decided to go with just one person to apply as the lower earner of us is almost at income cap. The developer/broker would smooth the case with the council to allow acceptance from only one of us. Its not council funds, it like help to buy. Also you apply same % discount you were given when selling. So if the value of your property increases from 250k from your time of purchase to 350k when you want to sell, you apply 30%(or whatever discount you got) to the 350k. There have been cases where the price of the property increase so much that the income potential of proposed buyer was so high, therefore reduced the size of potential buyers to a small pool, the council gave the sell authorization to sell in the open market.

Oh yea.. and a downside is that you can only rent the property for a total of 2 years through out your ownership. This has gotten us think twice about this scheme, part of the motivation was eventually using this an investment property when we upgrade. We mooooove

3 Likes

Re: Living In The UK: Property,Mortgage And Related by Viruses: 10:11pm On Mar 25, 2023
shaybebaby:
I'll add my two cents here.

BUYING COSTS.

All well and good, you have your offer accepted, deposit sorted but there are other things you need to have cash ready for.

1) FIRST TIME BUYER (FTB)
a) Solicitor/ Conveyancer- They deal with the legal aspects related to your purchase. You will need to instruct them as soon as your offer is accepted.

They will run searches on the property, liaise with the estate agent and your sellers solicitor to make sure all necessary paperwork is completed. They will also register the property purchase with Land Registry once the transaction is complete and will also be the ones to liaise with your mortgage lender on the release of funds. Expect to pay north of £1000+ which includes their fees.

b) Surveyor- As it's the biggest purchase of your life, it makes sense to ensure that the property is as described when viewed. At a minimum, get a Level 2 survey where the surveyor will be access the property and provide a general report on the condition of the house. They will also flag up any issues based on severity that either require immediate attention, such as damp, poor electrics.
A level 3 survey is more detailed and will include detailed reports on structure of the property ( imagine them lifting up floorboards and the likes)

For level 2, budget around £600- £800, level 3 will be more.

3) Mortgage application fee- Whilst lenders have fee free products, their rates are usually a teensy bit higher. Fee paying products have slightly lower rates so you may choose to go with that option. You can either pay it upfront when applying , in most cases it's around £1000, or you can choose to add it to the mortgage. This means you don't have to fork out for it but with the trade off being, you'll ve paying interest on it because it is effectively a loan.

4) Stamp Duty

This is tax you pay based on the purchase price of the property. As a FTB, you pay zero on properties of £425,000 or less. Anything over that, you pay 5% on the portion above £425k threshold.

Total- Circa £3000 in additional costs excluding stamp duty.

2) HOME MOVER

You already own a property and selling that to purchase a new property.

a) Solicitor/ Conveyancer- unlike a FTB, you have two transactions, your sale and your purchase. You'll pay for both transactions so minimum £2000.

B) Estate Agent Fees- You'll most likely have to engage one to list and sell your property on your behalf. The upside is for most, if your property doesn't sell, you pay nothing. So whilst not an upfront cost, it will be paid upon completion of sale and purchase. Some charge a percentage of the sale price, average of 1-3%, some charge a fixed fee.

C) Suveyor: Same as FTB
D) Mortgage Application Fee- Same as FTB
E) Stamp Duty- As long as the purchased property is your only home, no stamp duty is payable on properties up to £250,000. Over this threshold, You'll pay 5% on every pound over up to £675,000 I.e you pay 5% stamp duty on properties worth between £250,001 to £925,000. Gov.uk has the remaining tax bands for reference.

If its a second property i.e you'll have more than one property, you'll pay an additional 3% on the rates mentioned above.






Interesting.
Re: Living In The UK: Property,Mortgage And Related by Newbie123: 10:18pm On Mar 28, 2023
Coming to book space here...

7 months in the UK, years from now, i'l refer to this comment.

Thanks senior bosses for all the work and time you put in here to help others

3 Likes

Re: Living In The UK: Property,Mortgage And Related by semmyk(m): 7:55pm On Mar 29, 2023
From 1st post on this thread. Numero uno
semmyk:
🏘️🏚️🏠 ... ... 🏘️🏚️🏠🏡
... ... Posts here are about AND must be about Mortgage-related issues in the UK.
Clarity around housing (the house, structure of the house, rules around housing ...) are welcomed, including those of rental. However, request for rental availability or how to rent ARE NOT ALLOWED! Do not post them here.
Over the lifetime of this thread, key terms will be added.
Sit back, keep calm and enjoy the mortgage-sourcing
... ...
slimanyd:
Anyone residing in Birmingham here. Need 2 bedroom apartment. All bills inclusive. Abeg.
emperorlaqrin:
In need for a shared apartment in London please contact me ASAP.

1 Like

Re: Living In The UK: Property,Mortgage And Related by emperorlaqrin: 8:49am On Mar 30, 2023
semmyk:
From 1st post on this thread. Numero uno

Thanks

Re: Living In The UK: Property,Mortgage And Related by HollyMadison(f): 10:46am On Mar 30, 2023
Hello experts.

Please for a Moneybox account opened in June 2022, can I still get the 1k bonus for this batch?
when can I get the bonus?
Re: Living In The UK: Property,Mortgage And Related by abuhusna1: 5:30am On Mar 31, 2023
I keep space here for my testimony yet to come

1 Like

Re: Living In The UK: Property,Mortgage And Related by Santa2: 10:41am On Apr 02, 2023
HollyMadison:
Hello experts.

Please for a Moneybox account opened in June 2022, can I still get the 1k bonus for this batch?
when can I get the bonus?

You will get your 1k bonus so long as you pay in 4k into the account before 5th april. If you dont deposit up to £4,000, you will get 25% of what ever amount you put in there.

2 Likes 1 Share

Re: Living In The UK: Property,Mortgage And Related by AlakeOfEngland: 7:28pm On Apr 02, 2023
Hi @Semmyk.

Can you help highlight the pro's and cons of living, renting and buying a council house, please?
Thanks a bunch!
Re: Living In The UK: Property,Mortgage And Related by semmyk(m): 8:22pm On Apr 02, 2023
AlakeOfEngland:
Hi @Semmyk.
Can you help highlight the pro's and cons of living, renting and buying a council house, please?
Thanks a bunch!
I'll have to research this (tabulate pros & cons) and revert. #JustBeingTransparent
I can't promise when. I trust the gurus in the house to fill in though.
Buying a Council house comes with getting discounts, very good one. The discount depends on how long you've rented. The snag though is when selling the house if you need to move on.

Link: YouKay gov Right to Buy (Council) house

This HOA is worth giving a read: Right to Buy explained: Buying your council house

1 Like

Re: Living In The UK: Property,Mortgage And Related by AlakeOfEngland: 8:32pm On Apr 02, 2023
Thanks, mate. We will be expecting your detailed output.
Regards.
Re: Living In The UK: Property,Mortgage And Related by semmyk(m): 8:56am On Apr 14, 2023
Crosspost (from Living in the UK) worth giving a thought
Lexusgs430:
If you currently undertake AirBnB side hustle........ Now you require planning permission, which inturn means registration and further exposure to taxation net ......🤣😂

Re: Living In The UK: Property,Mortgage And Related by Lexusgs430: 11:21pm On Apr 14, 2023
AlakeOfEngland:
Hi @Semmyk.

Can you help highlight the pro's and cons of living, renting and buying a council house, please?
Thanks a bunch!

Don't buy ...... The council would keep slamming you with repair/maintenance bills ...... Above all, the property would be a leasehold property........

Like it or not ..... You must pay ......😁😊

4 Likes

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