#164

Should you look in or outside Article 4 areas for your HMO?

This episode featuring Nick Smith of Saltbox Living will help you decide.

The answer depends on your circumstances.

Are you investing for the long term or are you momnetum investing where you’re trying to replace an income quickly?

Nick has the knowledge, experience, wisdom to answer this question. His property story started many years ago after he bought seven buy to lets alongside his full time job working in the printing business in his native Yorkshire.

He also has nerves of steel. He once and immediately took on £5 million of debt to turn around a failing printing business.

Another Must Listen episode.

#163

One of the most frequently asked questions I get when listeners reach out is around expat mortgages.

Do you need a broker?

Does it matter where you live or who you work for?

What kind of bank account do you need?

Can you get a limited company mortgage, or should you buy in your personal name?

What are the rules around portfolio landlords? Today, Simon Allen of Searchlight Finance answers all these questions and much much more.

This is a repackaged compilation of Episodes 15 & 16, first released in 2022.

During the episode we discuss:

- Expat Mortgage Application Process

- Different Types of Expats and Their Mortgage Qualification Criteria

- UK passport holders living abroad

- Foreign nationals with overseas passports

- Lenders Criteria for Expats and Complexity

- Countries of residence and work

- Credit history

- Types of properties for personal or limited company names

- Income Declaration to HMRC for Mortgage Approval

- Income within a limited company

- Requirement for taking a salary or providing a set of accounts

- Preparation for Remortgaging

- Timing and paperwork

- Lender selection process

- Overcoming Anti-money Laundering Regulations

- Working with specialized brokers and lenders

- Importance of a good credit file and experienced solicitors

- Importance of Speed in the Purchase Process

- Staying on top of the process with a solicitor

- Information Needed for Mortgage Decisions

- Decision in principle

- Requirements for new and existing clients

- Correspondence Address in the UK and Its Significance

- Dual representation in conveyancing

- Need for independent legal advice with limited company borrowing

- Proof of Funds and Source of Funds

- Proof of deposit

- Minimizing frequent financial transactions and emails

- Additional Fees for Expats and Foreign Nationals

- Minimum values for loans

- Differential treatment by lenders

- Considerations for Couples with Foreign National

- Role as a shareholder and not a director in a limited company

- Impact of Broker Experience and Focus

- Buy-to-let market expertise

- Documentation process knowledge

- Technology Challenges and Communication Issues

- Delays and difficulties with remote working

- Valuations for Complex Property Types

- HMOs and multi-units

- Varying criteria based on the lender

- Tax Treatment and Portfolio Growth for Expats

- Limited company mortgages' tax treatment and rates

- Challenges with portfolio growth and transitioning

- Considerations at the End of Fixed Terms

- Product transfers offered by some lenders

- Challenges of remortgaging for expats returning home

Keywords:
Expat mortgages, expat mortgage brokers, residency requirements, limited company mortgages, UK passport expats, foreign national expats, lender criteria, expat finances, property types, income declaration, limited company salary, remortgaging, anti-money laundering regulations, specialized expat brokers, credit file, expat solicitor, expat lenders, decision in principle, correspondence address, dual representation, conveyancing solicitor, documentation process, proof of funds, remote working, HMO valuations, limited company tax treatment, HMRC income declaration, portfolio growth challenges, product transfers, expat return remortgage.

#162

Did you know that commercial property usually cost less per square foot to buy than residential?

This can make commercial property a very attractive option if you’re looking to develop HMOs. And often the location of commercial stock is ideal for this strategy.

But commercial HMO conversions come with their own unique sets of risks and concerns. This episode tells you all about them.

Timothy Witt has done around 40 projects with various business partners both for himself and clients. Many of these projects were HMO conversions, so he has lots of tips, tricks and tactics to share.

During the episode, we discuss:

- Converting ground floor to commercial and upper floors to residential HMO

- Converting building to multiple commercial units

- Permitted development rights for commercial to residential conversions

- Minimum space standards and challenges

- Two-stage process of converting to residential first and then to HMOs later

- Types of mortgage needed for property with commercial space and HMOs

- Thorough financial estimation for build costs, finance costs, final rents, and final GDV

- Balancing the risk of conditional and unconditional planning approval

- Addressing objections for HMO projects

- Role of planning consultants in enhancing chances of successful planning approval

- Assessing lease terms and exploiting underutilized areas

- Zoning system for commercial valuation predictions

- Effect of zoning systems on yields and property value

- Mitigating risk in property investing

- Higher rewards with higher risks in property investing

Keywords

Property development, Commercial property, Residential conversions, HMO, Permitted development rights, Minimum space standards, Mortgages for commercial space, Lease improvement, Rental income, Financial estimation, Conditional planning approval, Planning consultant, Value addition, Refurbishments, Bridging finance, Cash flow, Zoning system, Manchester, property investment, Warren Buffett, Robert Kiyosaki, Planning approvals, Objections from neighbours, Market changes, Utility bills, Interest rates, Article 4 zoning, Property values, Yield restrictions, Commercial agents, Property investing risks