Mortgage Free - so good they'll do it twice! Wynnvegas aiming for the big house

abouttimetoo

Hi Billy, I'm on a phone at the mo so too pesky to post properly. I'll pop back on tomorrow as I've got some thoughts that may interest you linked to what you were saying about Colin potentially providing a tenant build service, not sure if you were being flippant but I think it definately has legs as well as potential furniture packages as a consideration for the future

Regards
ATT

wynnvegas

Hi ATT,

I was being relatively serious. I haven't put much more focus into the Colin4Hire business but he's particularly handy. We're going to get it into all our leases that any works done on the properties must be done with our consent and must be done to a required standard which, to my mind, means that Colin must get all the discretionary work that comes in.

The only trouble we've got at the moment is Colin being so busy. I've got big plans for pimping him out locally but the inability (so far) to extend the day beyond 24-hours is something of a limiting factor.

Cheers,

Billy

wynnvegas

Afternoon All,

What a mess! Apparently, panto villain 2 (thar scurvy mortgage broker) may have been painting something of an over optimistic picture of the whole BTL project. We've agreed three houses (first one completes next Friday!!) and we're back in the game for another two. That should (at 5) run us about £85-90,000 in deposits and fees and the like so all is going to plan on that front.

What may be an issue is picking up the remortgages (currently at 75% of purchase price / c.60% of valuation price) at 75% of the valuation price. My Colin and I visited a lawyer yesterday to sort out our partnership agreeement (and now that's gone downhill as well but that's for later!) and the lawyer is very confident that the value of the house is what people will pay for it so we can forget about looking at the difference between valuation and purchase price as anything close to a discount. I'm not for believing him but it's going to be a case of diving in and seeing which of the advisors end up being right.

If we can remortgage at 75% of "paper" value in six months, everything will be grand. If not, the game's a bogey (that may need some translation if I remember!!) and we're left with five BTL houses and the mortgage we've agreed. I'm still plenty confident that the model works fine (that 300 row spreadsheet better not have been a waste of time!) but it's very much a suck it and see place we're in now.

Because of the way things have been going with the lack of information and the like, panto villain 2 has been removed from the equation. We've picked up a new mortgage broker who we're a lot more comfortable with (and he's cheaper - good to get something close to moneysaving on this diary!) I'm optimistic but somewhat guarded about everyone now!

Colin has decided to hold off on the partnership we had proposed. He'll still do the work on the houses and he's still keen to get involved but he's been frightened by the lawyer. Not a big deal in the grand scheme of things as we'll marry up the businesses down the line a bit but a bit of a shame as he's obviously having doubts now. He did end up, after a discussion last night, saying that we should maybe just go for it but I'm not having anyone come into our game harbouring any doubt at all so we'll prove the project principle first (hopefully!(!!!!) - that's for you Tilly) and then get things tidied up officially with the partnership agreement.

Hope everyone is grand, dandy and not suffering from -4 degree temperatures...

Cheers,

Billy

abouttimetoo

Hi Billy

Sorry to hear that there's a few bumps in the road but you are savvy enough to know that is par from the course and the more problems that you can surface early on the better the end 'product' will be

I was mulling over the valuation v value is what people will pay thing. An interesting one and while I've got no idea what the legal or actual position is there seems a lot of sense and logic in what the lawyer is saying, I'm not sure whether I'm going to articulate this well enough but if you put the squalor up for sale for lets say £200k, all involved know that you will usually receive offers of what people want to pay, consider it worth etc, added to which in these climes potential buyers put a cheeky offer in and sellers usually expect from day one to get less than the asking price. So.. taking that a step forward, if someone offers you £190k and you agree their bank will do valuation and may only say it's worth £180k and they will base their mortgage offer on the valuation rather than what you think it's worth or what the potential purchaser thinks it's worth (or willing to pay as that may be different again)

This also ties into one of your earlier posts - something along the lines of the banks wanting intentionally lower valuations to protect their lending and the possibility of defaults.

I guess what I'm saying in a long winded fashion is the lawyers view sounds 'sensible'

PS, we've got the same weather as you, beautiful blue skies and sun, thick white frost on the ground and rooves but boy is it brrrrrrrrrrrrrrrrrrrrrrrrr

Tilly_MFW_in_6_YRS

Hiya, goodness Billy, I have just skim read but will read thoroughly. I am glad you are focussing on your project principles. :T

Can I add that it was -5.5 here this morning. Very much bbbbrrrrrrrrrrrr

Tilly x

wynnvegas

Hiya ATT,

I think the lawyer's case holds a lot of weight were we trying to realise the value in a sale in six months but I'm still pretty hopeful (having talked to the financial guys, the surveyors and the mortgage companies involved thus far - not that any of them have anything to gain of course from leading us a wee bit astray!) that we'll be able to remortgage and it will then be about what valuation is put on the property in six months time. If we can rip our initial deposit (or most of it) back out at that point, that's grand. If not, it's a royal pain vis a vis the grand scheme of things but we'll have to start on a new plan - if nothing else it will give us an offset target to start climbing toward again!

I'm maybe just against the lawyer as he kept bashing away at my degree classification. Apparently Gordon Brown had a first and he was an idiot as well. I'm guessing he got a 2:1!

Cheers,

Billy

wynnvegas

Hi Tilly!(!!!!),

That's no good. It's been a lovely day for all that. It's the wind allied to the cold that makes it really rubbish and there's not been much of a breeze today.

As always, I'm sure it will work out fine in the end up!

Cheers,

Billy

abouttimetoo

Hi again, a dropped internet connection and the W word spoiled my earlier flow

Re my post about tenant services, just something to think about for the future

When I did my BTL the tenacy company offered various furniture packages of good quality stuff. As time was against me (and I had no inclination to furniture shop) I thought this was great, from memory I got two two seater settees, a sleigh bed, a tall boy, bedside cabinet and dining table and four chairs for something in the region of £1500. I've seen these items in shops at a far greater cost. Obviousy the letting company is big and long established so have been able to set up these packages but I thought it was a good service

Also, they have a handyman that me or the tenants can use and pay the HM direct for all sorts of services from decorating to electrics to building flatpacks.

PS, they also do chaffeurs, chefs and housemaid service, will Billy land be offering these

abouttimetoo

Just realised I still have my scarf on, put it on to pop out at 8.25 this morning :rotfl::rotfl::rotfl:

gallygirl

wynnvegas wrote: »

If we can remortgage at 75% of "paper" value in six months, everything will be grand. If not, the game's a bogey

:rotfl:haven't heard that for years Billy :rotfl:, here's hoping you remain bogeyless . Sorry it's not working out as you hoped, but never mind son, whit's for ye will no go past ye

wynnvegas wrote: »

Hope everyone is grand, dandy and not suffering from -4 degree temperatures...

-3.5 an hour ago so I expect it's at least -4 by now. Snow forecast but I expect it to be gone by Monday. Shame as I'm due to be in the office 4 days next week and fancied a week in slippers instead :rotfl: