So do you get that 11k straight into your bank or do you get that in instalments? Do you pay tax on that 11k that's come out? Can you use that money on anything you want?
Just doing this mate, purchased for £112,500 and spend £10k on refurb and now valued at £150k 👍🏻. Pulling the gains out for prop number 4 👏🏼💪🏼. Great video mate
Great video Justin. Agree on the top tip to get started 2/3 months prior to the rate expiring... I am now into my 3rd month paying the variable rate which is painful as my flat in Birmingham needs all sorts of docs because of EWS1 etc... even though I have these docs NatWest is just terrible at progressing the application so starting a new application with Virgin Money...
That’s so frustrating! When it comes to bank accounts and lending, I’m really starting to prefer some of the newer banks than the old school snails on the high street 😂. How annoying though! Hope you sort that out soon 😃
Great Video again! Info about this kinda stuff is so so important as it can cost you if you get it wrong. If anyone should read this comment. I would add that in some situations it would be worthwhile speaking with your existing lender about an advance on the new value of the property 🔑 and if you work with a broker and they don't at least mention this as an option to you I would question if they really have your best interest at heart 🔑 🔑
To RudeRick: Yes I agree, I have never ever used a broker. My advice, as opposed to Justins with great respect, is to do your own donkey work. Remember, someone pays the broker, so they will try to steer you towards those who are going to pay them the most. I have found, through friends and other hearsay, that they really do not have your best interests at heart. However, others may have a different experience.
Hi Justin, love your channel and well done to everything you have achieved! I have an unanswered question..if you refinance after 6 months for example do you have to pay early repayment charges? Or how does it work? Do you tell the lender beforehand that you will be refinancing after 6 months and still do it on a 2 year fixed for example? I think you get what I’m saying and your response will be super appreciated!!!
Hi !! Thanks for watching and great question. I would tell your mortgage broker your intentions so that he/she can hopefully find you a short term product or one with Low ERC (early repayment charges). Either way, you don’t tell the lender because they wouldn’t be interested in lending the money otherwise. If the plan it to frequently purchase properties and refinance quickly, then m It might be better to start using bridging finance for some of those purchases 🙂
I finally found a good mortgage broker that knows everything about investing and all things not possible and he said refinancing a £60k-80k property is going to be the most difficult part of a BRR especially when not adding any value. Just adding a new kitchen or floors isn't going to push the value these days. Did you have any challenges for refinancing, even for full guts? I guess the real trick is to get at auction, but then you need 30% deposit at least and 40% if you want to get development finance.
Great video again mate 👊 Miss the whiteboard for these numbers vids but awesome to see the production quality going up! How can you quantify when you are overleveraged and vulnerable to changes in the market?
Haha thanks Richard, don't worry the whiteboard will return soon :) Hard to quantify when, because it depends on whether the market cycle is about to change direction. The way I will personally try to get around this is; a) by only refinancing a property once during its first 5-10 years in my ownership. b) by having a great understanding of the economy, how markets cycle and the area i've invested into. Of course, timing the market is a fools game, and very hard to do. However, through financial knowledge and monitoring data monthly, we can observe indicators that suggest whether a market is about to change direction (again, this in my personal opinion!). Hope that helps haha
Thanks for the video dude. I own a apartment and my product renewal is due. If you fancy taking in a project by helping a fan please reach out. We could make a video around the process for a new starter?
Hi Justin, I see it as a bit of a catch 22! Because if you brr and take some money out then your mortgage repayments will be higher! Do you get what I’m saying? Your view please….ps great content, keep up the good work.
Thanks Mark! I don’t personally see a crash, demand is still outweighing supply quite heavily. I think we could see another year of growth - but only time will tell! You are correct regarding the increased mortgage repayments, which reduces monthly Cashflow. but releasing the money means you can move forward and purchase more properties - I favour portfolio growth in the short term and I can improve equity / Cashflow in the long term!
Hey Justin! Love the videos, thanks so much for all the great content. Was wondering if you were planning on doing a black Friday sale on your propertyX website?
Hi Justin, can you please share some knowledge on how you create these impressive videos! I mean what camera type you use mobile, DSLR, video camera etc., which editing softwares do you use and recommend for beginners, did you learn all these RUclips skills yourself or did you take any courses etc. Thanks.
Hi Justin is there any other advice you could give on remortgage to get the most money as if you give them the price you want is there anything that can make you’re chance better if getting more money really enjoy the channel thanks you
Hi! The best advice would be "don't be greedy". If you over-inflate your valuation, the valuer is more likely to down-value the property meaning you get less money out. If you are realistic with your valuations, you are more likely to get the higher end of the value and the valuer is less likely to scrutinise the value you've put on it. Outside of that, focus on the comparison property sales that you can find evidence for so you know your values inside out. The valuers will do the same so you will know what they're seeing. Check out my channel for more of these advices. Here's the link: ruclips.net/channel/UCK00fNp9VCEwd4hPDV5v12w
Hi Justin, when you remortgaged. Did you do it on 80%-20 Loan to Value or the standard 75-25? Also how did you get on? How did you get on in terms of finding lenders with less than 6 month ownership? Would it have been easier to wait until after 6 months? Thanks
Hi Abdul, I did a 75% LTV remortgage as the rates are far better. I got on fine with refinancing early, although there are less lenders/ options, it’s definitely possible! It might have been slightly easier to apply post 6 months, but I wanted to get wheels in motion 🙂
@@JustinWilkins Thanks for replying Justin. I've just completed on a potential BRRR project and in the process of planning the refurb, so will be interesting to see how it works out. Thanks once again and keep up the good work👍
Someone explain to me please I buy a house for 200k (50k deposit) delivering 7% rental yield (£1165 PCM), 2 years and a small minor refurb later the house is now worth £350k, I want to refinance and take my money out leaving 25% in the property, how can I? The new mortgage would be 350k X 75% = 262,500 X 6% Interest only on a BTL = 15,750 / 12 Months = £1312 interest on the mortgage PCM. The rental yield is 7% of the original purchase price 200k and renting out for £1,165 = -£147 shortfall between the rent and the potential new mortgage which obviously would not be approved as rental income doesn’t cover interest payments. It’s not just a case of simply refinancing and taking your money out.
If I refinance a buy to let property after renovation. The new loan will be more than the old loan taken to buy the property. How will bank be able to give more debt, will they check if rent for new property has gone up to pay the higher intrest or repayments ?
Can somebody help me understand something. £100,000 property price £80,000 mortgage £20,000 deposit £15,000 for refurbishments refinanced the property for the value of £140,000 What is the equity, profit and is your new mortgage monthly payments you refinanced to, now have higher payments for the £140,000?? Im just not understanding what happens to your mortgage payments? are they paid off from refinancing?
Hi Thank for sharing you knowledge, great content and I have quick question, to whom would you give or pay the £32500 deposit or is that sum an indication of how much money should be deduce from the new valuee?
Unfortunately it really can take 2-4 months at the moment due to demand and how busy solicitors are! Which is crazy, but it pays to know how to progress a property in conveyancing !!
Hi Justin. If you're refinancing within or just after 6 months, are there any penalty fees to pay, cos presumably you would still be well within the timeframe of your 2 or 5 year mortgage product/deal?
Justin, I noticed that you have your properties held in a ltd company. I thought it was only benificial to do this for larger purchases(eg HMOs) because the fixed costs for a ltd company btl mortgage are more than as an individual. Also I would think at the start for smaller properties(like your one up North) it would be better to hold it as an individual as I know the rates and costs of ltd company btl mortgages are more than that of individual mortgages. Hopefully you get what im trying to say. I only ask because I am looking to purchase a flat for around £130k with £750 rental income, currently I am not in a high tax bracket but I do want to 'future plan' as best that I can. If you could let me know your thoughts on what you think the best route is. Thanks
Thanks for your comment mate, Ltd company investing is actually one of the most tax efficient ways to hold property now - it doesn’t matter about the size or type of the investment. I mean this in the nicest possible way, if you think personal name investing is the better way to invest - you need to spend more time doing your research 🙂 but I want to caveat that with, definitely speak to an accountant first! Limited company investing is almost certainly the right way forward for higher rate tax payers, for lower rate it depends on other circumstances! I hope that’s helpful. Good luck 🙂
Hi Liam, Will add it to my list to potentially cover in the future. It’s a touchy subject and people often have different tax scenarios based on their personal circumstances. But I think it’s a good video idea! 👌
Can you clarify this for me Justin. (Or anyone) I bought my house for £360k a year ago, on a 5 year fixed rate 85% LTV, £305k mortgage. it’s now worth £400k. (Going by price rises work done and houses sold nearby based on estate agent knowledge) I’m on a fixed rate for another 4 years. By which time we should have paid off roughly £37k Leaving £268k to pay. When I remortgage, am I taking a new product out with the value of £400k (maybe more in 4 years time) which would be a LTV of 67%. Leaving in £132k equity?? Sorry that’s long but I struggle to get my head round it.
Your new mortgage wil be £300k (75% LTV of £400k). With this £300k you will need to pay off the outstanding £305k leaving you £5k out of pocket maybe more if you have early repayment fees and other legal fees. In your case it doesn't work, you need to add more value to your house
So I’ve tried to get my head around this, and my understanding is the following: - you put £55,000 down as a deposit - £305,000 mortgage - at the end of your term your equity in the house will have risen from £55,000 to £92,000 (before refinance). - with the £40,000 increase in value your equity is potentially £132,000. - if you refinance at £400,000 value leaving in 25% (£100,000) then you should be able to withdraw £32,000 of equity. - Either that or leave the equity in so that your LTV is better and interest rates will probably come down. I don’t mean this personally towards the other comments on this thread - but I believe they are incorrect. Best to speak with a mortgage broker and run the numbers 🙂👍🏻
@@JustinWilkins definitely speak to a mortgage advisor, they should be able to clear this up for you for free. My numbers are based on if you refinance today.
Good question - markets don't always trend upwards. Its hard to see that right now as prices are always increasing, however market trends always cycle up and down. When the market starts to downturn, properties could end up in negative equity if over leveraged.
Correct you can wait, but if you need to remortgage whilst in negative equity then you’ll need to stump up cash or sit on a very high interest rate! Anyone that’s invested during the last 8-9 years has been super lucky with market conditions (me included). It will most likely stay ok for the foreseeable future as governments always want to protect the housing economy, but in my opinion it’s good to know how to protect yourself against a potential downturn. Especially as markets will always cycle 🙂
Just re-mortgaged one of my properties, monthly payment has reduced and taking 11k out, happy days 😃
👏 that’s worth a clap!
So do you get that 11k straight into your bank or do you get that in instalments? Do you pay tax on that 11k that's come out? Can you use that money on anything you want?
Yes, it’s transferred straight to your bank and you can do as you please with it 👍
Was this on a Brrr?
Just doing this mate, purchased for £112,500 and spend £10k on refurb and now valued at £150k 👍🏻. Pulling the gains out for prop number 4 👏🏼💪🏼. Great video mate
Awesome work mate, sounds like a great project! 👏
Got to love the famous click! Haha. Great video Justin, will resume back here each time I need a reminder of the process !
Haha I’m going to trademark it 😂
Awesome, glad it was useful!
Incredibly informative, thanks a lot for this
Thanks Harry 🤝
Thanks for another informative video. Loving it! Feel like I'm a student again, learning from Teacher Justin.
Haha 😂🙏 great feedback, thanks!
Great video Justin. Agree on the top tip to get started 2/3 months prior to the rate expiring... I am now into my 3rd month paying the variable rate which is painful as my flat in Birmingham needs all sorts of docs because of EWS1 etc... even though I have these docs NatWest is just terrible at progressing the application so starting a new application with Virgin Money...
That’s so frustrating! When it comes to bank accounts and lending, I’m really starting to prefer some of the newer banks than the old school snails on the high street 😂.
How annoying though! Hope you sort that out soon 😃
Great Video again! Info about this kinda stuff is so so important as it can cost you if you get it wrong. If anyone should read this comment. I would add that in some situations it would be worthwhile speaking with your existing lender about an advance on the new value of the property 🔑 and if you work with a broker and they don't at least mention this as an option to you I would question if they really have your best interest at heart 🔑 🔑
Thanks Rick. Great suggestion and always worth exploring 👍🏻
To RudeRick: Yes I agree, I have never ever used a broker. My advice, as opposed to Justins with great respect, is to do your own donkey work. Remember, someone pays the broker, so they will try to steer you towards those who are going to pay them the most. I have found, through friends and other hearsay, that they really do not have your best interests at heart. However, others may have a different experience.
REALLY great video - thanks so being so thorough and informative! x
Amazing 🤩 thanks v much for watching!!
Can u do a brief demo of your BRR Spreadsheet? I want to get a rough idea how it looks before I purchase.
Afraid not as I’d basically be giving it all out for free 😝
love you Justin !!!
my fiancé might have something to say about that 😂 haha thank you 🥇✌️
Hi Justin, love your channel and well done to everything you have achieved! I have an unanswered question..if you refinance after 6 months for example do you have to pay early repayment charges? Or how does it work? Do you tell the lender beforehand that you will be refinancing after 6 months and still do it on a 2 year fixed for example? I think you get what I’m saying and your response will be super appreciated!!!
What he said ^
Hi !! Thanks for watching and great question. I would tell your mortgage broker your intentions so that he/she can hopefully find you a short term product or one with Low ERC (early repayment charges). Either way, you don’t tell the lender because they wouldn’t be interested in lending the money otherwise.
If the plan it to frequently purchase properties and refinance quickly, then m
It might be better to start using bridging finance for some of those purchases 🙂
@@JustinWilkins thank you that answers the question and it was just as I thought. Look forward to the next vid 👍🏼
Love this channel!
Thanks very much ✌️
Value in this was great 👍🏻
Awesome to hear, thanks!!
Great video as per usual
Legend! Thanks 🙏
I finally found a good mortgage broker that knows everything about investing and all things not possible and he said refinancing a £60k-80k property is going to be the most difficult part of a BRR especially when not adding any value. Just adding a new kitchen or floors isn't going to push the value these days. Did you have any challenges for refinancing, even for full guts? I guess the real trick is to get at auction, but then you need 30% deposit at least and 40% if you want to get development finance.
Great video again mate 👊 Miss the whiteboard for these numbers vids but awesome to see the production quality going up! How can you quantify when you are overleveraged and vulnerable to changes in the market?
Haha thanks Richard, don't worry the whiteboard will return soon :)
Hard to quantify when, because it depends on whether the market cycle is about to change direction. The way I will personally try to get around this is; a) by only refinancing a property once during its first 5-10 years in my ownership. b) by having a great understanding of the economy, how markets cycle and the area i've invested into.
Of course, timing the market is a fools game, and very hard to do. However, through financial knowledge and monitoring data monthly, we can observe indicators that suggest whether a market is about to change direction (again, this in my personal opinion!). Hope that helps haha
Thanks for the video dude. I own a apartment and my product renewal is due. If you fancy taking in a project by helping a fan please reach out. We could make a video around the process for a new starter?
Hi Justin, a very valuable RUclips Video and Question? "Can anyone including a beginner do a Property BRR as a strategy?"
Hey Rajesh. Yes absolutely. Whilst it’s a more complex strategy to do as your first investment, it’s definitely possible.
Definitely helps a lot
Glad to hear 🙏
Hi Justin, I see it as a bit of a catch 22! Because if you brr and take some money out then your mortgage repayments will be higher! Do you get what I’m saying? Your view please….ps great content, keep up the good work.
Thanks Mark! I don’t personally see a crash, demand is still outweighing supply quite heavily. I think we could see another year of growth - but only time will tell!
You are correct regarding the increased mortgage repayments, which reduces monthly Cashflow. but releasing the money means you can move forward and purchase more properties - I favour portfolio growth in the short term and I can improve equity / Cashflow in the long term!
Hey Justin! Love the videos, thanks so much for all the great content. Was wondering if you were planning on doing a black Friday sale on your propertyX website?
Hi Hugo! Thanks very much 🙏 and yes the Black Friday sale is now live !! www.propertyx.store
Hi Justin, can you please share some knowledge on how you create these impressive videos! I mean what camera type you use mobile, DSLR, video camera etc., which editing softwares do you use and recommend for beginners, did you learn all these RUclips skills yourself or did you take any courses etc. Thanks.
Hi Justin is there any other advice you could give on remortgage to get the most money as if you give them the price you want is there anything that can make you’re chance better if getting more money really enjoy the channel thanks you
Hi! The best advice would be "don't be greedy". If you over-inflate your valuation, the valuer is more likely to down-value the property meaning you get less money out. If you are realistic with your valuations, you are more likely to get the higher end of the value and the valuer is less likely to scrutinise the value you've put on it. Outside of that, focus on the comparison property sales that you can find evidence for so you know your values inside out. The valuers will do the same so you will know what they're seeing.
Check out my channel for more of these advices. Here's the link: ruclips.net/channel/UCK00fNp9VCEwd4hPDV5v12w
Hi Justin, when you remortgaged. Did you do it on 80%-20 Loan to Value or the standard 75-25? Also how did you get on? How did you get on in terms of finding lenders with less than 6 month ownership? Would it have been easier to wait until after 6 months? Thanks
Hi Abdul, I did a 75% LTV remortgage as the rates are far better. I got on fine with refinancing early, although there are less lenders/ options, it’s definitely possible! It might have been slightly easier to apply post 6 months, but I wanted to get wheels in motion 🙂
@@JustinWilkins Thanks for replying Justin. I've just completed on a potential BRRR project and in the process of planning the refurb, so will be interesting to see how it works out. Thanks once again and keep up the good work👍
@@TheInvestingVlogger Great work mate :) keep me posted on how the project goes! Good luck
Someone explain to me please
I buy a house for 200k (50k deposit) delivering 7% rental yield (£1165 PCM), 2 years and a small minor refurb later the house is now worth £350k, I want to refinance and take my money out leaving 25% in the property, how can I? The new mortgage would be 350k X 75% = 262,500 X 6% Interest only on a BTL = 15,750 / 12 Months = £1312 interest on the mortgage PCM.
The rental yield is 7% of the original purchase price 200k and renting out for £1,165
= -£147 shortfall between the rent and the potential new mortgage which obviously would not be approved as rental income doesn’t cover interest payments.
It’s not just a case of simply refinancing and taking your money out.
If I refinance a buy to let property after renovation. The new loan will be more than the old loan taken to buy the property. How will bank be able to give more debt, will they check if rent for new property has gone up to pay the higher intrest or repayments ?
Can somebody help me understand something.
£100,000 property price
£80,000 mortgage
£20,000 deposit
£15,000 for refurbishments
refinanced the property for the value of £140,000
What is the equity, profit and is your new mortgage monthly payments you refinanced to, now have higher payments for the £140,000??
Im just not understanding what happens to your mortgage payments? are they paid off from refinancing?
Great video, how do you estimate refurb cost on a rennovation project? How do you find a reliable builder in an area not in your hometown?
Gems 💎
🔥🔥
Hi Thank for sharing you knowledge, great content and I have quick question, to whom would you give or pay the £32500 deposit or is that sum an indication of how much money should be deduce from the new valuee?
Hi Justin, did you refinance on your 1st residential house to get the deposit on your 1st rental? Subbed!
what if you just want the equity money so you can buy another house? will the bank still approve?
Yes- I’m lead to believe they prefer it if your intention is to reinvest the money. That’s not fact, I’ve just heard that
My mortgage broker and solicitor said it takes 3-4 months to finish buying a house, is it really that long?
Unfortunately it really can take 2-4 months at the moment due to demand and how busy solicitors are! Which is crazy, but it pays to know how to progress a property in conveyancing !!
Hi Justin. If you're refinancing within or just after 6 months, are there any penalty fees to pay, cos presumably you would still be well within the timeframe of your 2 or 5 year mortgage product/deal?
from the 75% end value u don't deduct the deposit u put in? as that's a cost as well no?
Good question - no, because the 75% is the new mortgage, the other part is the new 25% deposit that you leave in 🙂
Justin, I noticed that you have your properties held in a ltd company. I thought it was only benificial to do this for larger purchases(eg HMOs) because the fixed costs for a ltd company btl mortgage are more than as an individual. Also I would think at the start for smaller properties(like your one up North) it would be better to hold it as an individual as I know the rates and costs of ltd company btl mortgages are more than that of individual mortgages. Hopefully you get what im trying to say. I only ask because I am looking to purchase a flat for around £130k with £750 rental income, currently I am not in a high tax bracket but I do want to 'future plan' as best that I can. If you could let me know your thoughts on what you think the best route is.
Thanks
Thanks for your comment mate, Ltd company investing is actually one of the most tax efficient ways to hold property now - it doesn’t matter about the size or type of the investment. I mean this in the nicest possible way, if you think personal name investing is the better way to invest - you need to spend more time doing your research 🙂 but I want to caveat that with, definitely speak to an accountant first! Limited company investing is almost certainly the right way forward for higher rate tax payers, for lower rate it depends on other circumstances!
I hope that’s helpful. Good luck 🙂
What Bridge company do you use ?
Can you do a video on tax
Hi Liam,
Will add it to my list to potentially cover in the future. It’s a touchy subject and people often have different tax scenarios based on their personal circumstances. But I think it’s a good video idea! 👌
@@JustinWilkins thanks 🙏
Can you clarify this for me Justin. (Or anyone)
I bought my house for £360k a year ago, on a 5 year fixed rate 85% LTV, £305k mortgage.
it’s now worth £400k.
(Going by price rises work done and houses sold nearby based on estate agent knowledge)
I’m on a fixed rate for another 4 years. By which time we should have paid off roughly £37k
Leaving £268k to pay.
When I remortgage, am I taking a new product out with the value of £400k (maybe more in 4 years time) which would be a LTV of 67%.
Leaving in £132k equity??
Sorry that’s long but I struggle to get my head round it.
Your new mortgage wil be £300k (75% LTV of £400k). With this £300k you will need to pay off the outstanding £305k leaving you £5k out of pocket maybe more if you have early repayment fees and other legal fees. In your case it doesn't work, you need to add more value to your house
@@megaman2016 thanks for the reply.
It’s a property where I live, residential mortgage.
Does that change anything with the figures?
@@kane227able not that I'm aware of, this strategy works best with fixer-upers where you buy cheap and refurb to add value
So I’ve tried to get my head around this, and my understanding is the following:
- you put £55,000 down as a deposit
- £305,000 mortgage
- at the end of your term your equity in the house will have risen from £55,000 to £92,000 (before refinance).
- with the £40,000 increase in value your equity is potentially £132,000.
- if you refinance at £400,000 value leaving in 25% (£100,000) then you should be able to withdraw £32,000 of equity.
- Either that or leave the equity in so that your LTV is better and interest rates will probably come down.
I don’t mean this personally towards the other comments on this thread - but I believe they are incorrect. Best to speak with a mortgage broker and run the numbers 🙂👍🏻
@@JustinWilkins definitely speak to a mortgage advisor, they should be able to clear this up for you for free. My numbers are based on if you refinance today.
Hi, how can I contact you please. I have a couple of questions and wondered if you could help me with them?
Why shouldn't you pull out too much to leverage debt?
Good question - markets don't always trend upwards. Its hard to see that right now as prices are always increasing, however market trends always cycle up and down. When the market starts to downturn, properties could end up in negative equity if over leveraged.
@@JustinWilkins what would happen if it goes into negative equity? Can't you wait until the market recovers or would the bank force you to sell
Correct you can wait, but if you need to remortgage whilst in negative equity then you’ll need to stump up cash or sit on a very high interest rate! Anyone that’s invested during the last 8-9 years has been super lucky with market conditions (me included). It will most likely stay ok for the foreseeable future as governments always want to protect the housing economy, but in my opinion it’s good to know how to protect yourself against a potential downturn. Especially as markets will always cycle 🙂
When do you hope to quit your job?
Soon 👀🙂