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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 Evagreenfields: 5:37pm On Jun 13, 2023 |
Congratulations 🎊 👏 💐 Rapitex: 1 Like |
Re: Living In The UK: Property,Mortgage And Related by semmyk(m): 7:25pm On Jun 13, 2023 |
Wristler:There might be something for you on page 4 semmyk: 3 Likes |
Re: Living In The UK: Property,Mortgage And Related by Lexusgs430: 9:28pm On Jun 13, 2023 |
Wristler: Your relative considered staircasing cost .......... 1 Like |
Re: Living In The UK: Property,Mortgage And Related by dustydee: 9:52pm On Jun 13, 2023 |
Hello all. Please how can I start a shortlet/airbnb business? Do I have to own the house or can it be a rented property? Does anyone have a guide on how to do this profitably and pitfalls to avoid? |
Re: Living In The UK: Property,Mortgage And Related by Goldie10: 5:48pm On Jun 14, 2023 |
Rapitex: Congrats again, please which broker did you use and can you recommend them? 2 Likes |
Re: Living In The UK: Property,Mortgage And Related by Rapitex: 10:16pm On Jun 14, 2023 |
Goldie10:The property we got offer for is in Scotland as we reside in Scotland. I used cascade mortgage solutions limited 4 Likes |
Re: Living In The UK: Property,Mortgage And Related by Ticha: 2:58am On Jun 15, 2023 |
dustydee: 1. Check the rules in your area. Parts of Wales (Cardiff especially and the Valleys), Scotland (Glasgow, Edinburgh), Cornwall, Devon and London have a ban on short term lets in varying degrees. You will even need planning permission in certain areas which takes months and some serious dosh spent to get. Neighbours will rat you out so ensure you have your Ts crossed! 2. It can be a rented property but make sure you have clearance from the landlord and in writing where possible. A normal BTL mortgage expressly forbids using the property as a short let or as a residential property. Some landlords don’t care and some do – so be upfront with the landlord so they can decide for themselves if they’re happy for you to run a short let 3. It can be your own property but a. if you have bought with a residential mortgage, you will be breaching the terms (na who know go open ya yansh). If you have bought with a specialist short term let mortgage, then you will be breaching the terms by living there as well. Some lenders (Halifax for example) offer a residential mortgage where you can also use the house for short lets for short periods of time thus allowing people to rent out their homes when they go on holiday etc rather than as a proper business. 4. Interest rates for short term let mortgages are way higher than regular BTL or residential interest rates. Deposits are also higher -most lenders want between 35-50% deposit. Most lenders class it as commercial lending so the mortgage term is usually also short (between 10 to 15 years max) 5. To be profitable, you may have to be in locations that may not really be family friendly – city centres, near airports or event centres, touristy areas. These areas will also have competition, so you then have to spend money to up your game. Luxury does not usually equal profit 6. If you live in the house and run STL from it, you will benefit from the government rent a room tax free scheme. 7. People are less likely to misbehave and be shady if you live there and just rent out rooms but then you’re sharing bathrooms, toilets, kitchens and shared spaces with strangers daily – think of family safety. Pitfalls 1. You need to either have a good cleaning crew or be open to spending a good chunk of your time on cleaning otherwise the reviews will kill your business pretty quickly 2. Location, location, location is key – which again ties into the above 3. Most residential flats expressly prohibit short term lets and where they allow it, other flats will also be STLs so there will be competition. 4. On average, you need to be booked for at least 20 days every month to break even. Expenses to think about off the bat - all the house bills are paid by you, updating furniture and fittings as the wear and tear is a lot higher, higher cleaning expenditure, fees to booking platforms (Airbnb takes an average of 18% of all bookings, booking.com takes 15%, VRBO takes 15%), linen and laundry costs (at every booking), providing and replacing toiletries and tea stuff then rent or mortgage. 5. You are not guaranteed a booking. People will cancel last minute. You will have to reduce prices to keep it competitive. There will be down periods – usually December to March that your expenses will keep running when your bookings are down. 6. The booking portals can shut you down at any time and sometimes for frivolous reasons. Airbnb is very good at this. They can also withhold payments to you and refund customers without your approval and there’ll be nothing you can do about it. 7. Neighbours will intensely dislike you – guests are not usually very considerate. They will park anyhow, party, thrash the property, make noise and you will be called out to break up issues. 8. It can easily become a full time job without the commensurate full time pay unless you outsource it and then that eats into your profits. 9. Reviews even when malicious can make or break you. We turned our family home into an Airbnb when we first left the UK. We restricted bookings to a minimum of 3 nights. It was a larger home (5 bedroom) and could sleep 12 people, so we got large bookings and were able to charge accordingly (£300 a night and fixed so if it was 1 person or 12 people, you paid the same price. Otherwise, people book for 2/3 and sneak the reast in) 2 bookings was break even for us. So we aimed for a min of 3 bookings a month. Even though we didn’t target tourists (it was near a military base, close to a motorway, a speedway and a nuclear power plant), Nov to March was absolutely brutal! So, we targeted contractors and track racers, those would wake, head off to work, come back, drink, sleep and repeat and they were filthy! OMG! The cleaner always had to take rubbish to the tip -which cost money as well. Christmas and NY were always booked so we often upped the charge for that time to cover us till March. There is a large number of retirees (67% of the population of the town) so their families would book and stay at ours when they came to see, visit or bury their family member. There’s was always something to be repaired after every booking. People would put the heating on in the summer and just leave it on all day. Our cleaner lived 2 doors away and would hand over keys so they knew she was nearby, people still tried to have parties, sneak people in, hide broken stuff. Guests will message at all hours of the day for basic things even when we had a comprehensive house manual detailing every single thing. I can’t find the thermostat for the heating – it’s on the wall by the controls. The lights won’t dim – use the dimmer nau! I’ve forgotten the pin to get in (it’s always the last 4 digits of the booking person’s phone number and they can change the guest one to any 4-digit number), I’ve locked myself out (just use the 4-digit pin that you set! It’s a digital lock o! I can unlock remotely but still!), your spoons are not shiny enough, could you please buy round pasta bowls? Can you get me cots? My baby will only sleep in a cot (we don’t provide cots and it’s detailed in our listing and the booking rules), your bedsheets are not Egyptian cotton, I only sleep on cotton sheets – ogbeni carry your favourite sheets follow body o You will have your customer service face and voice on 24/7. Knowing what I know now, I’ll take Mon- Fri lodgers over short term let guests if I am not doing it full time. PS - You can check prices and availability in your given area by checking calendars of hosts on Airbnb or VRBO by month (booked dates will be greyed out), open dates will show prices. Play round with weeks (7 days discounts), months (long term booking discount), check how lax their rules are - strictly no refunds or usually means bookings are generally slow. It is more difficult to do that on booking.com so to check viability for booking.com, use the search function and check which cheap hotel chains are in the area - Travel lodge etc as those will be your direct competition 23 Likes 2 Shares |
Re: Living In The UK: Property,Mortgage And Related by dustydee: 9:36am On Jun 15, 2023 |
Ticha: This is very detailed. Thank you so much Ticha. I think I will probably consider fix and flip or rental. Those requests sound rediculous, but some guests can be difficult sha. |
Re: Living In The UK: Property,Mortgage And Related by Igbamatigbi: 7:23am On Jun 20, 2023 |
Rapitex: Congratulations!! Please is the house new build? Did you pay the mortgage advisor/broker? Thanks |
Re: Living In The UK: Property,Mortgage And Related by Lexusgs430: 5:01pm On Jun 20, 2023 |
Rapitex: The next thing for you to do now........ Divide your mortgage payment by 4, over pay your mortgage by one week or more if you can afford it.......... This singular move, would shave years off your length of payment......... 🤣😂 Congratulations......... RENT MONEY IS DEAD MONEY........ 😜🤑 13 Likes 2 Shares |
Re: Living In The UK: Property,Mortgage And Related by Amazoner01: 6:40pm On Jun 20, 2023 |
Lexusgs430:Thanks 😂..: I will hold on to this fess |
Re: Living In The UK: Property,Mortgage And Related by Amazoner01: 6:41pm On Jun 20, 2023 |
Amazoner01: |
Re: Living In The UK: Property,Mortgage And Related by Lexusgs430: 8:12pm On Jun 20, 2023 |
[quote author=Amazoner01 post=123926919][/quote] Read your mortgage key facts........ 2 Likes |
Re: Living In The UK: Property,Mortgage And Related by costap4u: 11:50pm On Jun 20, 2023 |
New to this post. Thanks everyone for the wonderful work you are all doing here. I have a question for those that already have their Mortgage running. Did you all take Critical Illness and Life Insurance for your house? If yes how much is anyone paying ? One Mortagege adviser is quoting £140 per month for Critical Illness and Life Insurance and also said I cant back out once I take it. Can someone advise please. Thanks. |
Re: Living In The UK: Property,Mortgage And Related by Lexusgs430: 2:21am On Jun 21, 2023 |
costap4u: Taking up this policy, is a personal decision........ The questions you should ask yourself are -: - is £140 affordable through the life of the mortgage...... - If you stop policy, all monies paid otilo (no refunds)....... - In case of unfortunate events, the mortgage would be fully paid ........ - Have you considered getting another quotation...... - Would you derive value, from this policy (dead or alive)........ |
Re: Living In The UK: Property,Mortgage And Related by Bourne007(m): 10:52am On Jun 21, 2023 |
I got a similar quote from my Mortgage adviser as well but didn't use them. I compared the market then and I got a monthly payment for £43 for both of us. costap4u: 3 Likes |
Re: Living In The UK: Property,Mortgage And Related by Goldie10: 1:29pm On Jul 07, 2023 |
Hello people, can anyone recommend a good conveyancer that can handle property buying in London? I prefer Referalls instead of using those recommended by the agents. Thank you 1 Like |
Re: Living In The UK: Property,Mortgage And Related by tshoboy(m): 9:34pm On Jul 07, 2023 |
Lexusgs430:Oga lexus, can you add some numbers to this so some of us about to start this journey understand and take advantage of this. |
Re: Living In The UK: Property,Mortgage And Related by Peerielass: 9:52pm On Jul 07, 2023 |
[quote author=Amazoner01 post=123926919][/quote] Some mortgages have early repayment charges during the initial fixed term period and some don’t allow overpayments during this period. You need to check your mortgage terms and conditions before overpaying. 2 Likes |
Re: Living In The UK: Property,Mortgage And Related by ukay2: 12:54pm On Jul 08, 2023 |
tshoboy: Which numbers are you referring to? |
Re: Living In The UK: Property,Mortgage And Related by ukay2: 3:05pm On Jul 08, 2023 |
Lexusgs430: What is Gazumping please? |
Re: Living In The UK: Property,Mortgage And Related by Zahra29: 3:30pm On Jul 08, 2023 |
ukay2: When the seller accepts a higher offer from someone else and decides to sell to them instead |
Re: Living In The UK: Property,Mortgage And Related by ukay2: 3:31pm On Jul 08, 2023 |
shaybebaby: Thank you for this explanation 1 Like |
Re: Living In The UK: Property,Mortgage And Related by ukay2: 3:39pm On Jul 08, 2023 |
deept: Should one go for 2years fixed rate at 6% or 5 years fixed rate at 5.5% now, please. |
Re: Living In The UK: Property,Mortgage And Related by ukay2: 4:01pm On Jul 08, 2023 |
reavealhidden: Halifax is 90% LTV |
Re: Living In The UK: Property,Mortgage And Related by Zahra29: 4:11pm On Jul 08, 2023 |
ukay2: It depends on your risk appetite. Many buyers are opting for a 2yr fix in the expectation/hope that rates will be lower from around 2025. Rates are forecast to fall in the medium term but it is also being cautioned that the era of ultra low rates is over and the new normal will be around 5%. So a 5yr fix at 5.5% may be close to where the market settles in the long run. It comes down to what you're more comfortable with. The assurance of knowing what your fixed payments are for 5 years regardless of which way the market moves, or taking a gamble on rates being lower in 2 years, which might go either way. |
Re: Living In The UK: Property,Mortgage And Related by ukay2: 4:33pm On Jul 08, 2023 |
Zahra29: Ooh..thanks |
Re: Living In The UK: Property,Mortgage And Related by ukay2: 4:35pm On Jul 08, 2023 |
Zahra29: I think the 5 years should be OK... stability and if rates get to 7%, one is still OK. Thank you. |
Re: Living In The UK: Property,Mortgage And Related by Lexusgs430: 4:41pm On Jul 08, 2023 |
tshoboy: Let's assume your mortgage payment is £400 pcm........ By paying £100 extra every month, it would drastically reduce the length of your mortgage payment + paying less interest....... 1 Like |
Re: Living In The UK: Property,Mortgage And Related by ukay2: 4:42pm On Jul 08, 2023 |
Lexusgs430: What if the mortgage payment is £2000 pcm? |
Re: Living In The UK: Property,Mortgage And Related by Lexusgs430: 5:28pm On Jul 08, 2023 |
ukay2: That's £500 extra....... |
Re: Living In The UK: Property,Mortgage And Related by ukay2: 5:39pm On Jul 08, 2023 |
Lexusgs430: Thank you |
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