Where to get advice / ability to compare options?

bigcliff

Hello
I am looking at our finances. Currently have two properties. One in London and one in Glasgow. It's re-mortgage time on the London flat. Currently rented. We are thinking of taking out some equity (currently 25% ltv) on the London flat to do up the Glasgow place. However, if we sell the London flat in the next 10 months we will get a refund for the additional stamp duty on the Glasgow property as it was a second home. Also, am conscious of possible current / future challenges with the London rental market. Equally, am wondering if we do keep the second home, do we put it into a company. 

At the same time we have a lump sum to invest. 

I have a crude spreadsheet which weighs up options but want to chat it through to test my assumptions. I tried a couple of IFAs but they seemed to want to split me between different specialists focused on investments and mortgage specialists.

Does anyone know of someone who could give comprehensive advice on my overall approach? Or if there are tools I can use which may be better than my home made spreadsheet.

Sorry for long post but any suggestions would be much appreciated.

dunstonh

I tried a couple of IFAs but they seemed to want to split me between different specialists focused on investments and mortgage specialists.

That is normal.   Most IFA firms nowadays have the IFA (individual) focusing on investment and pension side and a mortgage broker focusing on mortgages side.    To do both usually means you end up with a Jack of all trades, master of none.    However, they will work together where it is required.

bigcliff

Thanks dunstonh. Maybe I didn't ask the right questions, but I was left with the impression that the mortgages specialist would be just that, and help get the best mortgage. As opposed to help us make decisions on whether to keep or sell and invest elsewhere

bowlhead99

bigcliff said:

Thanks dunstonh. Maybe I didn't ask the right questions, but I was left with the impression that the mortgages specialist would be just that, and help get the best mortgage. As opposed to help us make decisions on whether to keep or sell and invest elsewhere

A problem is that a decision to run a buy to let business - or sell its assets and pay off its debts and do something different with the proceeds - is a commercial business decision based partly on what you prefer to do with your time and what the specific commercial risks are of owning and letting that particular property in London (whether or not wrapped in a limited company), together with your long term objectives.

The decisions of what financial investments you could make if you had the property equity money instead of the property, are well suited to an IFA. However your former home in London is not a regulated financial product and the average IFAs is not likely to be a specialist in that market as a personal hobby/sideline,  so the value-added advice you could get around that (if you already understand the tax side and the relevant local rental market in depth) is going to be somewhat limited - an IFA's role is not generally to give advice on business decisions (even just stop/carry on decisions) for unregulated private lettings businesses. You would be more likely to get something conversational and common-sense in nature, than something insightful, while separately being told how the IFA would invest the money if you didn't have it stuck in a rental property. Still, no doubt all IFAs have slightly different approaches.

bigcliff

bowlhead99 said:

  so the value-added advice you could get around that (if you already understand the tax side and the relevant local rental market in depth) is going to be somewhat limited - an IFA's role is not generally to give advice on business decisions (even just stop/carry on decisions) for unregulated private lettings businesses. You would be more likely to get something conversational and common-sense in nature, than something insightful,

Thanks bowlhead99. That's probably the main issue. I am looking for some confidence that we have fully taken into account all the implications of different approaches  (including costs / tax).

A common sense conversation in itself would be helpful. However, it seems like we probably need separate tax advice to give us some assurance in the first instance on what our long term liabilities could be.