property investment company want my HMO

snickpan

blue_max_3 said:

Seems they would rather do anything, than actually buy from you at current market value.
A good property developer would probably not be troubled by financing £500k, it they stood to make £200k in twelve months. 
I don't see why anyone would find this smoke and mirrors scheme attractive really.

Exactly

tom9980

My guess for the record is the property gets bashed around and stripped, his business goes bust then your stuck with a shell of a property desperate to sell on the cheap to one of his friends.

snickpan

tom9980 said:

My guess for the record is the property gets bashed around and stripped, his business goes bust then your stuck with a shell of a property desperate to sell on the cheap to one of his friends.

That's it, that's his business plan, trash a house and fold his business.

[Deleted User]

As you have been given the impression he's done this before, ask to see his portfolio.  Let us know what it says.  Have you looked him up on the net to see if there is any proof there of what he does?  How long has his company been registered with Companies House, that should also give financial information?  It does look like your name is being passed around, I'd be a bit concerned about that.

GDB2222

Any of these arrangements whereby you hand over control to someone else before you are paid in full is clearly risky. You don’t need a bunch of strangers on a forum to spell out all the possible things that can go wrong.  It doesn’t require malfeasance on the part of the buyer, just bad luck, poor management, or simple over optimism. 

If adding an en-suite bathroom is worthwhile financially, why doesn’t the OP do that himself?

snickpan

GDB2222 said:

Any of these arrangements whereby you hand over control to someone else before you are paid in full is clearly risky. You don’t need a bunch of strangers on a forum to spell out all the possible things that can go wrong.  It doesn’t require malfeasance on the part of the buyer, just bad luck, poor management, or simple over optimism. 

If adding an en-suite bathroom is worthwhile financially, why doesn’t the OP do that himself?

I'm looking to sell.  There's all manner of things I could do (painting, carpets, new bathroom, new kitchen), but am just looking to sell as is.  No rush

snickpan

just found this, https://www.cliftonpf.co.uk/blog/09012020110021-how-to-remortgage-a-buy-to-let-portfolio/# sounds like a way to borrow money from your portfolio dependant on rent, rather than value of house.

"FOR EXAMPLE…

Buying an investment property for £100K with a 50% deposit interest-only mortgage:

£50K x 5.5% = £2,750 in annual interest

= £229.17 cost per month

x 145% = £332.30 is the minimum rental income you will need to be able to show you can earn to borrow £50K on an interest-only BTL mortgage"

dimbo61

Well with a 50% deposit the BTL mortgage rate you quote is terrible.
I was quoted 2.23% fixed for 5 years ( before Covid19) on 75%ltv 
So having put down a £50000 deposit your only paying £332 mortgage each month.
Not sure where you live but £100K will buy a nice terraced house around here.
With other costs Landlord insurance, Extra stamp duty, buying costs, repairs and maintenance you might make £100 a month before the new tax rules hit higher rate landlords really hard

snickpan

dimbo61 said:

Well with a 50% deposit the BTL mortgage rate you quote is terrible.
I was quoted 2.23% fixed for 5 years ( before Covid19) on 75%ltv 
So having put down a £50000 deposit your only paying £332 mortgage each month.
Not sure where you live but £100K will buy a nice terraced house around here.
With other costs Landlord insurance, Extra stamp duty, buying costs, repairs and maintenance you might make £100 a month before the new tax rules hit higher rate landlords really hard

I think you're talking about a good deal on a buy to let, but I'm trying to work out how this 'investor' can re-mortgage £700K on a £550K property

GDB2222

Does this investor have any track record of actually doing what he's talking about? Or, has he been to an expensive property investment seminar, and come away with all sorts of ideas that don't work in practice? Perhaps he'll start the work, then find he can't refinance, and simply walk away. How much deposit is he proposing to put down before you let him loose on your property?