Zahra29:


Congrats! Sounds like it's moving along very quickly. Is this the property that your lender down valued? Did they say why?

I am the person that offered the £390k, seller just want to sell as he has relocated outside the UK and doesn'twant to be paying mortgage on empty property. I check gov.uk, he bought the house £320k in 2017, so seller is making cool profit. Most houses around there are selling +£400k.

Waiting for Level 2 survey report soon.

The lender is ok with £390k, never down valued it.

Solumtoya:


Carry us along o. If you see any Lender that accepts 5% deposits for visa holders earning less than £100k, let us know

I’ll try… atleast until anyone decides to start dragging my choices with me

My deposit is 10%, and I sourced for my lenders using the two mortgage brokers provided by my company for free. They heavily cut short the time of doing the search myself. The best options for me currently is Barclays, TSB and Halifax. I’ll probably ring them up myself to negotiate the rate a bit further and then choose.

deept:


@lightnlife

Plus management company wahala....

Yup, and random increase in Service Fee charges and Ground Rent

I'm happy with the good progress on Mortgages for folks here. Quite encouraging.

I changed my mind recently not to buy with my wife jointly to take advantage of the stamp duty-free purchase for first time buyers twice. That way, we can buy again without stamp duty using her name next time. Unfortunately, half of our savings for the house is in her LISA so we have to save further.

EDIT: Folks here say this is not allowed so I gotta confirm and go back to plan A.

ukay2:


I am the person that offered the £390k, seller just want to sell as he has relocated outside the UK and doesn'twant to be paying mortgage on empty property. I check gov.uk, he bought the house £320k in 2017, so seller is making cool profit. Most houses around there are selling +£400k.

Waiting for Level 2 survey report soon.



The lender is ok with £390k, never down valued it.

Ah, I misunderstood your previous post. I thought the initial value of 440k was reduced to 390k by the lender. Good job, always good to dyor research on the area and the average prices.
Hopefully your survey report comes in ok, it should be fine with it being a new build.

Solumtoya:
I'm happy with the good progress on Mortgages for folks here. Quite encouraging.

I changed my mind recently not to buy with my wife jointly to take advantage of the stamp duty-free purchase for first time buyers twice. That way, we can buy again without stamp duty using her name next time. Unfortunately, half of our savings for the house is in her LISA so we have to save further.

I think couples buying together should consider the above.

This will massively impact how much you will be able to borrow though. I guess it depends on the type of property you want to purchase and the purpose.

Solumtoya:
I'm happy with the good progress on Mortgages for folks here. Quite encouraging.

I changed my mind recently not to buy with my wife jointly to take advantage of the stamp duty-free purchase for first time buyers twice. That way, we can buy again without stamp duty using her name next time. Unfortunately, half of our savings for the house is in her LISA so we have to save further.

I think couples buying together should consider the above.

This is not allowed. It is mortgage fraud and you can very easily be found out. 100%

I'm not going to share how very easily either the broker or solicitor or both can find out.

Once either party buys a home, the other party does not qualify as a "first time buyer"

A married couple where the MRS was still using her maiden name on all official documentation was found out. Doing a simple name search on land registry is easy peasy.

Solumtoya:
I'm happy with the good progress on Mortgages for folks here. Quite encouraging.

I changed my mind recently not to buy with my wife jointly to take advantage of the stamp duty-free purchase for first time buyers twice. That way, we can buy again without stamp duty using her name next time. Unfortunately, half of our savings for the house is in her LISA so we have to save further.

I think couples buying together should consider the above.

Eskis sir , what of Affordability?

Ralphlauren:


This is not allowed. It is mortgage fraud and you can very easily be found out. 100%

I'm not going to share how very easily either the broker or solicitor or both can find out.

Once either party buys a home, the other party does not qualify as a "first time buyer"

A married couple where the MRS was still using her maiden name on all official documentation was found out. Doing a simple name search on land registry is easy peasy.

💯

Very good point

I was focusing on the affordability, forgot about the legality of the approach

Ralphlauren:


This is not allowed. It is mortgage fraud and you can very easily be found out. 100%

I'm not going to share how very easily either the broker or solicitor or both can find out.

Once either party buys a home, the other party does not qualify as a "first time buyer"

A married couple where the MRS was still using her maiden name on all official documentation was found out. Doing a simple name search on land registry is easy peasy.

Interesting... Firstly, no one is trying to commit fraud or "not be found out" so that's off the table.

https://www.theguardian.com/money/2019/sep/23/first-time-buyer-home-help-to-buy-isa-stamp-duty-relief

I will consult further anyway, cos I have seen people do it and say it openly. They weren't hiding, so if it's not legal, let me know o, I guess it was good I brought it here.

Zahra29:


This will massively impact how much you will be able to borrow though. I guess it depends on the type of property you want to purchase and the purpose.

I don't have issues with affordability. To be honest, if I start stretching on affordability with the current interest rate, I'm setting myself up.

Mortgage of £300k is £2,000 monthly so I'm buying way below my personal affordability limit not trying to go anywhere near our limit as a couple.

But I did some digging and it seems you guys are right. As long as we're married, the Government sees us as one so once a spouse has person has bought a property, the law sees it as both people have bought a property.

Solumtoya:
But I did some digging and it seems you guys are right. As long as we're married, the Government sees us as one so once a spouse has person has bought a property, the law sees it as both people have bought a property.

Exactly. It doesn't matter if you were married in the UK or not or if Mrs is using her maiden name or not.

The onus is on the solicitors to "collect" the stamp duty on behalf of HMRC and they take this responsibility very seriously. One/two simple questions and one piece of documentation is all they need for the bells to start ringing. Once it rings, the solicitor/broker will search land registry using Mr or Mrs details and they will be see all properties owned in single or joint names.

Solumtoya:


I don't have issues with affordability. To be honest, if I start stretching on affordability with the current interest rate, I'm setting myself up.

Mortgage of £300k is £2,000 monthly so I'm buying way below my personal affordability limit not trying to go anywhere near our limit as a couple.

What I meant is the maximum amount lenders will lend, which is typically capped at an income multiple of 4 to 4.5x salary for a single applicant.

Zahra29:


What I meant is the maximum amount lenders will lend, which is typically capped at an income multiple of 4 to 4.5x salary for a single applicant.

And that's what I'm also saying, dear. The 4 times single applicant salary is enough for me because anything more than that will mean very high monthly repayments.

lightnlife:
Happy Weekend!

Just had a discussion with a friend and it'll be nice to get more informed input.

Is it advisable for a first timer to get an apartment instead of a semi/detached house?

Essentially, pricing/affordability is responsible for this apartment consideration over a semi/detached structure. For context, the average newly built 2/3bed semi/detached house here starts at 400,000. But the apartment costs (2/3 beds, newly built) starts at 250,000. Apparently, it'll take a shorter time to raise the deposit for an apartment and the need to get more value for rent over time.

Another consideration is leaving the current location, due to pricey properties, to somewhere with lower rates and similar opportunities in terms of work. Some areas have full house (newly built) for 250K.

What are your thoughts please?

My first ever purchase was an apartment. Maybe one of the best £12,500 investment I have ever made in my life. Like you, I didnt want to wait any longer by saving for a larger depoait for a house whilst still renting.

Without going into too much personal information, that flat is now a buy to let with about 15years left on its term and a balance of around 130k on the mortgage. Apartment is currently worth around 200k. After deducting the mortgage from the tenant's rent and the quarterly management fee (factor fee), I have surplus every month to overpay the mortage.

Now this is the best bit: within the last 5 years, I have remortgaged this apartment twice and pulled out about £45k which I have used part of it to buy another semi-detached buy to let (topped up the rest of the deposit and legal fees with my savings) and pay stamp duty costs whilst still retaining at least 25% LTV (literally equity) in this flat.

Once the mortgage is fully paid off, I have so many options.
1. Sell outrightly and get at least 200k
2. Continue to rent with guaranteed rental income.
3. Sell my current home 🤑🤑🤑once the kids have finished university, "downsize" by returning to live in the flat

The flat in question is a freehold with underground parking, free onsite parking, concierge and a residents only gym. It's located not too far away to a big supermarket and it has a Catholic school in its catchment area.

The management fees covers EVERYTHING - Building insurance, cleaning all communal areas, gardening, lift repairs, maintenance of the gym, etc and it is split evenly across all homeowners in the development.

If you do your due diligence thoroughly and buy the right apartment, you might become an "accidental landlord/property investor" like me.

People tend to "demonise" flats not realising that they are extremely popular in the rental and sale market with young adults, newly married couples and retired people.

Ralphlauren:


Exactly. It doesn't matter if you were married in the UK or not or if Mrs is using her maiden name or not.

The onus is on the solicitors to "collect" the stamp duty on behalf of HMRC and they take this responsibility very seriously. One/two simple questions and one piece of documentation is all they need for the bells to start ringing. Once it rings, the solicitor/broker will search land registry using Mr or Mrs details and they will be see all properties owned in single or joint names.

I get it. I wasn't trying to hide anything. I just thought it only applied if we were buying the house jointly. It's fine then, let me wait for our LISA to clock 1 year.

Ralphlauren:


My first ever purchase was an apartment. Maybe one of the best £12,500 investment I have ever made in my life. Like you, I didnt want to wait any longer by saving for a larger depoait for a house whilst still renting.

Without going into too much personal information, that flat is now a buy to let with about 15years left on its term and a balance of around 130k on the mortgage. Apartment is currently worth around 200k. After deducting the tenant's rent and the quarterly management fee (factor fee), I have surplus every month to overpay the mortage.

Now this is the best bit: within the last 5 years, I have remortgaged this apartment twice and pulled out about £45k which I have used to buy another semi-detached buy to let and pay stamp duty costs whilst still retaining at least 25% LTV (literally equity) in this flat.

Once the mortgage is fully paid off, I have so many options.
1. Sell outrightly and get at least 200k
2. Continue to rent with guaranteed rental income.
3. Sell my current home 🤑🤑🤑once the kids have finished university, "downsize" by returning to live in the flat

The flat in question is a freehold with underground parking, free onside parking, concierge and a residents only gym. It's located not too far away to a big supermarket and it has a Catholic school in its catchment area.

If you do your due diligence thoroughly and buy the right apartment, you might become an "accidental landlord/property investor" like me.

Nice!

You were lucky to see an apartment that is freehold o. That is extremely rare. My friend bought a leasehold flat and the way they increased the ground rent and service charge recently, the guy has been bleeding.

Solumtoya:


Nice!

You were lucky to see an apartment that is freehold o. That is extremely rare. My friend bought a leasehold flat and the way they increased the ground rent and service charge recently, the guy has been bleeding.

Scotland. All properties here are freehold. Whether its a flat or house.

Solumtoya:


And that's what I'm also saying, dear. The 4 times single applicant salary is enough for me because anything more than that will mean very high monthly repayments.

Lol, cool

Ralphlauren:


Scotland. All properties here are freehold. Whether its a flat or house.

That's sleek, man. Yet another point for Scotland!

Zahra29:


Lol, cool

It's crazy. Do you know that 4.5 x Annual Salary mortgage means half of your Salary will be used for Mortgage Repayments?

Example: Someone who earns £40,000 which is about £2,500 gets a mortgage of 4.5x which is £180k. That person will be paying about £1,250 monthly which is half of his salary.

So one needs to stay low on prices now o, don't overstretch your affordability, guys

Ralphlauren:


Scotland. All properties here are freehold. Whether its a flat or house.

Scotland's system is much better in a lot of ways. You don't have the same level of gazumping/gazundering and I like the fact that you get to see the home report before making an offer.

England, the south east in particular, is so built up with overpriced new build flats, and without the benefit of freehold. Good for longer term buy to let investments, but not so much to buy to live in (most times)

Solumtoya:


It's crazy. Do you know that 4.5 x Annual Salary mortgage means half of your Salary will be used for Mortgage Repayments?

People were happily stretching to more than 4-4.5x when interest rates were 1%, but you're right, at the current IRs it's crazy how much is spent just servicing the interest.

Solumtoya:


It's crazy. Do you know that 4.5 x Annual Salary mortgage means half of your Salary will be used for Mortgage Repayments?

Example: Someone who earns £40,000 which is about £2,500 gets a mortgage of 4.5x which is £180k. That person will be paying about £1,250 monthly which is half of his salary.

So one needs to stay low on prices now o, don't overstretch your affordability, guys

You paying more or same rent and rent money is dead money

Solumtoya:


That's sleek, man. Yet another point for Scotland!

Properties tend to rise quicker in value in
Engalnd though.

If the properties I own were in London for example, I would have retired by now.

Well well, This thread came alive in the blink of an eye. Congratulations to all who have closed deals and best of luck to those in process.

Been following, learning and waiting to share good news but I am dealing with a Conveyancer from the pit of hell. My offer 4.1% 5 year deal (75% LTV) is now looking like it will expire in my hands.

Ahead Ahead finally.

abuhusna1:

You paying more or same rent and rent money is dead money

I was talking about something else, not rent.

Solumtoya:
But I did some digging and it seems you guys are right. As long as we're married, the Government sees us as one so once a spouse has person has bought a property, the law sees it as both people have bought a property.

Good you found out yourself now....

Ralphlauren:


Exactly. It doesn't matter if you were married in the UK or not or if Mrs is using her maiden name or not.

The onus is on the solicitors to "collect" the stamp duty on behalf of HMRC and they take this responsibility very seriously. One/two simple questions and one piece of documentation is all they need for the bells to start ringing. Once it rings, the solicitor/broker will search land registry using Mr or Mrs details and they will be see all properties owned in single or joint names.

Exactly.....

Best thing is to buy a quality house that has potentials to appreciate in time......this is buyer's market as you can bargain prices with sellers very well with the high mortgage rates.

Ralphlauren:


My first ever purchase was an apartment. Maybe one of the best £12,500 investment I have ever made in my life. Like you, I didnt want to wait any longer by saving for a larger depoait for a house whilst still renting.

Without going into too much personal information, that flat is now a buy to let with about 15years left on its term and a balance of around 130k on the mortgage. Apartment is currently worth around 200k. After deducting the mortgage from the tenant's rent and the quarterly management fee (factor fee), I have surplus every month to overpay the mortage.

Now this is the best bit: within the last 5 years, I have remortgaged this apartment twice and pulled out about £45k which I have used part of it to buy another semi-detached buy to let (topped up the rest of the deposit and legal fees with my savings) and pay stamp duty costs whilst still retaining at least 25% LTV (literally equity) in this flat.

Once the mortgage is fully paid off, I have so many options.
1. Sell outrightly and get at least 200k
2. Continue to rent with guaranteed rental income.
3. Sell my current home 🤑🤑🤑once the kids have finished university, "downsize" by returning to live in the flat

The flat in question is a freehold with underground parking, free onsite parking, concierge and a residents only gym. It's located not too far away to a big supermarket and it has a Catholic school in its catchment area.

The management fees covers EVERYTHING - Building insurance, cleaning all communal areas, gardening, lift repairs, maintenance of the gym, etc and it is split evenly across all homeowners in the development.

If you do your due diligence thoroughly and buy the right apartment, you might become an "accidental landlord/property investor" like me.

People tend to "demonise" flats not realising that they are extremely popular in the rental and sale market with young adults, newly married couples and retired people.

Absolutely right.

Best thing is to get into the property ladder.

Planning to remortgage the property in 5 years time and take out funds to get BTL and continue to move on....we have come be say we have come...


Cash flows from salaries, rental incomes, stocks dividend payments, bonds coupon payments etc must flow

ProfJYK:
Well well, This thread came alive in the blink of an eye. Congratulations to all who have closed deals and best of luck to those in process.

Been following, learning and waiting to share good news but I am dealing with a Conveyancer from the pit of hell. My offer 4.1% 5 year deal (75% LTV) is now looking like it will expire in my hands.

Ahead Ahead finally.

Reach out to your lender via your mortgage broker if you have one for an extension, they will usually extend your offer by about 3 months.