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100% Finance Case Study

 Our property developer client agreed to buy a run-down property in a well-established residential area in North Manchester. The previous owner had moved into a care home, and an agreement was struck with the family to buy the property, before it went to market. The property was in need of a full refurbishment, but was structurally sound.As the vendors wanted a quick-sale, they accepted an offer of £205k on the understanding that the purchase would be concluded within a month. The developer was comfortable with this, having used bridging finance before and therefore being familiar with the process, and importantly how long it would take. Headline Deal Figures are:Offer - £205KOpen Market Value - £295KLender funded 70% of OMV = 100% purchase priceRefurb - £40KNew Asking Price £349,500Given the client knew he was getting a good deal, but wanted to keep his cash contribution down to a minimum, we suggested a...
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Bridging Finance

Bridging finance is a way of raising short term finance quickly and is usually secured against a residential or commercial freehold property (on a first or second charge basis). As a bridging loan is secured in this way, personal credit history is not always as relevant as with applications for other types of finance, so non-status loans are available. For added security, the funder may also deduct interest payments from the loan on day 1, which means the applicant (or the funder) does not have to worry about proving loan serviceability (but also means a lesser amount is available). A bridging loan is typically used to bridge the gap between a purchase and either a traditional re-finance or sale, and can also be used for auction purchases, land purchases, planning gain purchases, purchases of property in need of refurbishment/ conversion/ development or just for business cash-flow. Exit strategy is all important...
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Gross mortgage lending up 21% year-on-year

The Council of Mortgage Lenders estimates that gross mortgage lending reached £17.9 billion in January. This is 9% lower than December’s lending total of £19.8 billion, but 21% higher than the £14.8 billion lent in January last year. This is the highest lending total for a January since 2008 (£25.2 billion). Commenting on market conditions in this month’s market commentary, CML economist Mohammad Jamei said: Lending started the year on a positive note. Our monthly estimate is 21% higher than a year ago, with the current growth rate in lending similar to the closing months of 2015. UK market fundamentals are helping to underpin this recovery, with real wage growth, an improving labour market, competitive mortgage deals, and government schemes all supporting household demand. We still only see limited upside potential going forwards, as the number of properties for sale on the market remains low and affordability pressures weigh on...
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Gross mortgage lending up 8% in 2015

The Council of Mortgage Lenders estimates that gross mortgage lending reached £19.9 billion in December. This is 3% lower than November (£20.5 billion), but 23% higher than December 2014 (£16.2 billion). This brings the estimated total for the year to £220.3 billion, an 8% increase on 2014’s £203.3 billion and the highest annual gross lending figure since 2008. Gross mortgage lending for the fourth quarter of 2015 was therefore an estimated £62.3 billion. This is a 1% increase on the third quarter and a 23% increase on the fourth quarter of 2014. Commenting on market conditions in this month’s market commentary, CML economist Mohammad Jamei observes: Lending ended the year stronger than it started, with our estimate of nearly £20 billion lent in December. This brings total lending to just over £220 billion for 2015 as a whole, and slightly higher than we had anticipated. The low inflation environment, along...
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Everyone told me I was mad to buy property to let

We loved this story in The Guardian over the weekend.  Buy to Let can sometimes get a bad name, as do landlords! It's so nice to read stories such as this to show that it really can work. In 1996 … Del Brown, a 32-year-old carpenter, decided to set up a business letting houses. He bought two small, two-bed properties in Bristol for a total of £29,000. On each he put down a 30% deposit – less than £4,500 per property. Today, his portfolio is worth around £40m and is invested in developments throughout central Bristol. There was hardly anyone else doing buy-to-let in 1996 – everyone told me I was mad. There was all this negative press about houses being smashed up by tenants, and the difficulty of getting them to leave. But I’d been repairing properties for housing associations and knew there were lots of good ones out there....
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Amazon business - Success or Scam?

We are very interested to follow the success of the Amazon business model that is promoted by Unlimited Success. The Amazon business appears to be a dream come true, if you want flexible working hours and to build a business for yourself for very low financial output. A lot of businesses that we have looked at in the past don't deliver on what they promise, but this Amazon model certainly seems to be working. This is definitely on our to do list to take a closer look at in 2016. We have read with interest the free report that gives more details of the business.  If you'd like a copy you can just click here to request it.   In the meantime, here's a case study that I've come across of a student of Unlimited Success. Meet Steeve. He was desparate to change his working life. He worked long hours in a...
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Northern Ireland house purchase and remortgage activity up in third quarter

New CML data on the characteristics of lending in Northern Ireland in the third quarter of 2015 breaking down mortgage lending activity for first-time buyers, home movers and remortgagors. Lending in the third quarter 2015 Home-owner house purchase activity increased to 3,600 loans - up 16% on the second quarter and 6% on the third quarter in 2014. First-time buyers and home movers saw similar trends to each other with both increasing quarter-on-quarter and year-on-year. The number of loans for remortgage remained the same quarter-on-quarter at 1,700 loans, but up 55% in volume compared to the third quarter 2014. Derek Wilson, CML chair for Northern Ireland, commented: The increased house purchase activity is encouraging especially as it is driven by those purchasing their first homes. Affordability conditions are relatively good in Northern Ireland compared to the UK overall, so there is potential for further growth to close out the year. Remortgage activity is coming from a low...
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Where have all the houses gone?

Over the last 30 years the way in which we live has changed and this has had an impact on how the country’s housing stock is used. With more one person dwellings becoming more common, higher mobility meaning more demand for rental properties, and land becoming less and less easy to get hold of, there are a host of reasons why demand is up but why can’t we seem to build as many homes as we used to? The UK government has consistently failed to hit it’s home building target for nearly 10 years and this infographic from Inside Housing (https://jobs.insidehousing.co.uk/) explores some of the reasons why that is.
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6 UK Property Hotspots For 2016

To be successful in the property market it always helps to be ahead of the curve whenever possible. Buying property in the right place at the right time can be the difference between success and failure as a property investor, so knowing where’s hot and where’s not can increase your returns significantly. So, with this in mind, what can we expect from 2016? Where is the smart money going to go as we move into the second half of the decade? We take a look at some of the places that we think will lead the way in the New Year: Glasgow While many will still be concentrating on London and the southeast, those who look a little further afield may find a few hidden gems during their search. Glasgow is already performing well, with 3 of the top 10 postcodes for rental yields in the UK. However, despite being...
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How You Can Take Action In The Next 46 Days – And Make 2015 End With A Bang

Here's a great article from our guest blogger, Matthew Moody. These tips are fantastic! All too often, we get to December and everything slows down. After all, there’s the parties, the present buying, the office shutting down, the big day, the nights in etc.  Before you know it, you’re in January and December just flew by and you didn’t really achieve that much. So, if you’re enthusiastic, you’re committed, you have some time on your hands and you want to add some more cashflow before the end of the year, then just follow my simple 10 Step Plan. The Top 10 Things You Should Do In The Next 46 Days Ensure your properties are rented before 13thUnfortunately once you get beyond this point, it’s only the most unorganized of tenants that want to move in after this date.  Which in a sense is good because you can clear off all...
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