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Thanks for clarification. I thought you meant that S24 was making landlords homeless! Sorry for my misunderstanding.S24 is only the cause of homelessness because highly leveraged/higher rate tax payer landlords are selling up as BTL is no longer financially viable for them. Landlords that are not over-leveraged, as recommended on this thread, will greatly reduce how much they are impacted by S24.
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
Wow thanks guys for all of your input, and sorry it's all going off on a tangent about s24 ?,
But..If I purchased a couple of small flats say at 90k and done them up and paid outright for them then rented instead of selling, [I like the cow analogy] thank you for that.By paying outright I protect myself from void months as I wont have to cover mortgage, interest rates wont effect me, plus if I buy at 90k and do it up a bit, and say rent out for 550 pcm let's say, I get this clear every month with no mortgage, maybe less management fees for tenant management etc, but I get nearly 550 per month in my pocket, then, in years to come say another 20 years, that property will be worth quite a bit more?Plus the rent would have gone up too, obviously the cost of living will too but you get my drift Haha
Correct on all counts.
My apologies for the S24 tangent
I've taken advantage of being a cash buyer with a mixed use property, shop, flat and storage unit. After a moderate redevelopment, it will produce a double figure net yield and around 50% forced appreciation. I doubt I would have been able to secure a mortgage, more than likely bridging which is far more expensive. For a first attempt at investing I'm very satisfied.
I'm also looking for a flat to renovate. I've viewed one that was freehold (a rare find and unmortgageable) and several that are share of freehold with potential and no limitations. If you buy a leasehold flat, check the limitations of the leasehold as you may not be able to do what you intend.
A good teacher must know the rules; a good pupil, the exceptions.
Martin H. Fischer
Thanks Vanessa ?
And yes Gary I see what your saying. Thank you. That was what my wife and I purchased in 2011 as first time buyers, we purchased a free hold maisonette and only had 2 people offer a mortgage, this is now paid off and rented out, we get 650 pcm and clear about 580 after agent fees etc. Can you help me out with the lease side please,
Am I right in thinking that, if I purchased a property and it said lease of 99 years, does this mean even If I buy the property for let's say 100k, then the property is mine but the la d actually belongs to someone else I.e the leaseholder?
Thank you everyone
Yes, the leasehold is temporary ownership, albeit 99 years is typical. The other downside with leasehold is that you will probably need the freeholder's permission for any alterations and they don't have to agree. You may also be limited on rental type.
The freehold flat I viewed was similar to your maisonette, but included the freehold of the building. 2 of the share of freehold flats I viewed had potential to add an extra bedroom and the other freeholder(s) had no objection to this. They also had no objections to short term or holiday rental. Definitely worth confirming all this formally if you decide to proceed though.
Yes thought so, thank you for clarifying. I will stick with what I know then and just go free hold I think like my maisonette. Its nice to know I own all of it and even the parking space will always be ours! I think I will go either go down the route of this or just leave my money be and hope it builds up over the years for when I want to pack the business in lol