Hi Elaine
You asked me if I had any tips about bridging and remortgaging simultaneously..??
I can only talk from my own experience - as can any of us - and this has probably already been covered lots of times before I joined - so apologies in advance! It also depends on whether you intend to work locally - and how hands on you want to be with your deals - so my own methods might not suit everyone!
First and foremost I would say it's critical to have your network in place prior to placing any offers - your mortgage broker - who will already know what you are trying to achieve - and your solicitors -This is absolutely vital to your success.
Don’t try and deal direct with the lender – work through a broker who can provide packaging services – if there’s a problem it can be identified and rectified before it scuppers your deal. Work with your broker – get all the paperwork in order – when you are asked to provide two porofs of res etc etc – send them in straight the way!
Ideally you will be looking to achieve a minimum of 20%
BMV in order to achieve any kind of cashback on remortgage. Talk to your mortgage broker in advance and get to understand what products are available to you. Understand required rental covers LTVs etc and you will start to get a feeling about the maximum price you should be offering on any given property.
(If the rental stresses are difficult and you haven't already got a residential mortgage - then don't rule out this option either - Its worth bearing in mind that you can sell your "residential" with no capital gains tax incurred whatsoever - as many times as you want to)
Ok -You have no emotional involvement with the property so don't be afraid to make your offer and stick with it! The worse that can happen is that the vendor will say No! If so - move on - there are hundreds of properties out there - forget about it and move on to the next! It may well be that the vendor will come back to you at a later date anyway but in the meantime actively focus on the next deal.
(Don’t dwell on disappointment – Expect good things to come to you – create the perfect set of people events and circumstance in your mind - and expect that it will come into being. Everything starts from a single thought and your thoughts will create your reality)
Sorry –I’m digressing!
You absolutely - MUST - get the correct mortgage offer and it is absolutely VITAL that your broker and your solicitor are talking the same language.
For instance before I met Liz - and before I had my team set up - I came across the most perfect
BMV deal - almost too good to be true! I was buying for 50K and the property valued at 100K. I was anticipating approx 32K cash going into the bank. I was in receipt of the perfect mortgage offer - day of completion was set - and then it all fell apart at the last minute. The solicitor just didn't know how to draw it down! I ended up having to put Ł7500 in as a deposit and worse still I couldn't remortgage for 6 months in order to get my deposit and the rest of the capital back out :(
So..... ideally you are buying at least 20%
BMV - and the next step is to get the highest valuation possible!
If you are working locally then I think it helps (but this is only my own opinion) if you can form some sort of relationship with a surveyor - I know they are an absolute pain in every property investors back-side and that many are the most stoney-faced uncommunicative individuals that walk the earth - but its still worth a try and you might just get lucky!
When the valuation is to be instructed – I always ask for my own name and number to be put on the survey form for contact and access to the property. When the surveyor's secretary rings I ask for several convenient times and then say I will get back to them. Then I ring the seller and make the appointment – ring the surveyor back and confirm the appointment. I always know exactly when the survey is to be carried out and I meet them there.
Remember that once a valuer knows your purchase price then you've had it!
Whatever the property's true value is - he will only ever value it at your purchase price! I go to whatever lengths are necessary to keep this away from him. Locally I always meet the valuer at the property and make out that I already own it. (“Its a remortgage”) If its a private sale tell the vendor to let you do the talking. (If you’re uncomfortable with this – meet him at the property anyway but pretend to be someone else! Then when he asks you about the property and blah this and blah that – just say “I don’t know mate – I was just given the keys to let you in” – or –“ I was just asked to meet you here!” If it has previously been up with an agent then steal the board in the middle of the night if necessary!
(Think I had better change my name just in case any of my local estate agents or valuers are registered here!)
The valuation of a property is a matter of opinion - if you get a successful result with a certain instructed panel valuer then I would go to great lengths to get this valuer instructed again for my next deal. (My broker can help you with this) If the result is disappointing - but you are sure of your figures - then sometimes it pays to have the valuation carried out again by a different company. Occasionally the difference of 5K - 10K more on a valuation can make the world of difference to your cash flow.
I would also say not to rule out your local estate agents - get to know them and say you are a cash purchaser working in the area - They know their vendors circumstances and once you have proved to them that you can complete quickly - they will start ringing you. I have bought a fair few
bmv properties from agents and now they phone me with repossessions or chains that have fallen apart. One agent phoned me last week and their vendor has just had his buyer drop out at the last minute but he is so desperate to stay in his chain that he has sold to me for 110K (had previously "sold" for 130K) - I have just had the valuation in at 145K so its a definite 10K plus - in the bank. (I asked the agent if they would mind removing their board for a few days as they are aware that I use creative financing!)
If you don't want the deal yourself then put it on the forum!
I apologise that this reply is turning into war and peace!
I think it would be best if I give you the email addy of my broker Liz Syms
She is an expert in her field - can give you access to bridging facilities - and the solicitors she works closely with talk the same language.
Liz can be contacted at
Liz@connectifa.co.uk
If you mention my name then she will know exactly what you are trying to achieve as she has now arranged close on 100 mortgages for us. I would not be where I am now without her knowledge, guidance, expertise and patience! I no longer even ask her about products or rates etc as I trust her implicitly to come up with the perfect product for that particular property - while I can get on with finding the next one!
NB - the bridging facilities will only be practical in cases where you can bridge and remortgage simultaneously and exchange and complete on the same day.
Explore all the different facilities available to you through this forum and keep them all in your "tool-box" for any eventuality! Every deal is different!
And like I say this is only my method of working and "there is more than one way to skin a cat" (Actually I hate that saying!)
Good Luck and Best of wishes to everyone. Don’t analyse everything too much or you will never act. Learn to laugh at yourself and the situations you might find yourself in when it doesn’t always go according to plan! Have fun with it –even when it goes wrong -and wake up the next morning with the delicious anticipation of a new day!
Helen x
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