What are the Benefits of Sell and Rent Back?

When you choose to sell your property quickly with property buyers you have a number of choices available to you, depending on the reasons that you are looking to sell and the situation which you are in.

Sell and Rent back is beneficial to those who do not wish to move from the property they are in but can no longer afford the mortgage, whether it be simply due to inflation, or whether it is due to more personal circumstances such as a divorce or separation.

Not only does Sell and Rent back allow you to relax and no longer worry about expensive mortgage repayments but it also takes away the worry of perhaps having to pay out for any structural damage or perhaps the expensive repair of a broken boiler if the situation ever arose.

To sell your house fast to a property buyer in order to Sell and Rent back means that you not only release any money that you may have tied up in your property, but you are also safe in the knowledge that you do not have to leave the comfort and convenience of your home.

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Helpful Hints for selling your property

Here are some helpful hints for Selling Your Property, useful tips and safety advice to help you when choosing a Property Buyer.


  • Use a reputable property selling and buying company that does not ask you to pay anything in advance
  • Make sure that the company you contacted for selling your property has a local representative living in the area
  • Ask for testimonials and try to speak to at least one existing customer
  • Use a company where someone will come to visit you in your home and discuss your best options.


  • Pay for an external valuation
  • Rely completely on external valuations from a RICS surveyor
  • Pay any fees in advance, before an offer is agreed
  • Call companies with 0870 or 09 numbers, these are Premium rate numbers
  • Use a one-man-band without a registered office address
  • Trust companies that won’t let you speak directly with a local contract
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Buying Commercial Property Investments in 2019: 10 Things to Know

Buying residential property investments has been all the talk throughout the turn of the century, providing security above and beyond riskier investments such as shares and commodities.

The 2007 global financial crisis saw an end to that thinking, with many investors left in financial tatters and highlighting the risk of residential property investment.

Investment managers always discuss diversifying your investments in many other vehicles. So as property goes – is commercial property an good investment?

The questions to ask are;

  1. Is commercial property riskier than residential?
  2. Is it a better class of investment than equities, bonds, gilts, shares and etc?
  3. Is it a long term or short trading option?

What are the options to Investing in Commercial Properties?

  1. Buy a Commercial Property:

This is probably the ideal way of getting involved commercial property. You will, however, need a commercial mortgage if you are not buying cash. Typically you are looking at 60/40 – that is the lender will lend 60% of the value of the property.

  1. Commercial Funds:

There are great number of funds that invest in larger commercial schemes ranging from large care homes, warehouses, offices, through to supermarkets. Typically these funds have a fixed return on your investment and some cases dividends on shares

3. Property Fund Managers:

These are funds that buy shares in property related companies that operate in construction of residential and commercial property, through to infrastructure such as roads, sewers, hospitals, government buildings and etc. However, the risk – as will all shares – they are exposed to the financial markets – local and global.

From a control and returns perspective – option 1 can be the most lucrative. You earn money through;

  1. Rental Income
  2. Capital Growth

Residential Buy-to-let property

Many, who own their properties, implicitly understand capital growth ‘I Bought my property 5 years ago and now it’s worth £50,000 more’. And the next stage of buying a property to let seems a little step – that is if you have a deposit and buy to let mortgage!

It goes without stating that all investments have their risks if you don’t protect yourself.

Buy-to-let mortgages

You will need a deposit. The buy-to-let mortgage market is significantly more regulated that it was in the early 2000’s. Today;

  • You need a bigger deposit typically 15% to 40% depending on lender
  • You will need a ‘squeaky clean’ credit history
  • The ability to pay the mortgage if the tenant fails to pay their monthly rent or there is a problem in rent receipts
  • Rental incomes must be 125% of the mortgage payments
  • You will need to factor in pending tax changes as well

(Worth considering repayment mortgages over interest only or a mixed rate mortgage)

Buying Investment Property

When looking for a good real estate investment two equations are used to determine how successful a property investment is rental yield.

  1. Calculating Yield
  • Your total cost of buying your investment property
  • Purchase Price
  • Stamp Duty
  • Costs of Renovation
  • Solicitors and Estate Agent Fees
  • Broker Fees (if any)
  • (Any other costs incurred in buying the property)














  1. Calculate – Annual Rent

And divide this by the total cost of the property and multiply by 100 to get gross yield percentage.

  1. Calculating Rental Yields

This determines whether it is a good or bad investment. Calculate total annual expenses;

  • Repair Costs
  • Agent Fees
  • Property Taxes
  • The Interest Paid on Mortgage (Remember it is tapering relief and begins in April 2017)

To determine rental yield then take the above annualised costs from total annual rental and divide by the net purchase price to give you the total net yield.


Once you have determined the rental yield, then you can look at whether your money is better deployed in a ‘Buy to Let’ property or in a bank!

Investing in commercial property

Most investors are involved in building residential property portfolios.

This mainly due to;

  1. They understand a two up two down
  2. Mortgages are ‘readily’ available
  3. They see their mates doing it

Commercial has some pros and cons.

The cons are quiet simple

  1. Bigger deposits
  2. Bank lending – Commercial
  3. Charges can be higher
  4. Some commercial properties attract VAT
  5. Cost prohibitive for larger industrial units, factories,

The pros are even simpler

  1. Tenancies are longer – average leases are 10 to 15 years.
  2. Most leases are self-repairing – that is the tenant has to look at the fabric of the building
  3. Rental Yields are generally better – Mixed commercials provide a great way of generating much higher rental yields (These properties have residential accommodation – Hotels, Restaurants, Salons, Public Bars, Shops and Takeaways).

There are other commercial vehicles to invest in such as OEIC’s or Investment Trusts

Open Ended Investment Companies (OEIC’s)

This type of investment allows investors to pool their monies together to buy into many types of bonds and equities without too much financial exposure. The funds are domiciled in the UK and involve themselves in different property sectors and niches – from Care Homes through to Private Hospitals.

The investor can buy and sell these equities and bonds from as little as £500, limiting themselves to market exposure.

Property Investment Trusts

These are public limited companies that issue a fixed number of shares and known as closed ended funds. Shares are traded on the stock exchange, the values of these shares is guided by the type of investment property and share demand.

Another feature of property investment trusts is that the shares can be geared to borrow money – so depending on trust it’s wise to determine their gearing.

Real Estate Investment Trusts (REITs)

The majority of property investment funds are REITs as they manage and own income producing residential of commercial properties. They tend to be tax efficient – but check that with your accountant or broker.

Many REIT’s focus on commercial development and these are subject to market conditions. So check where they are investing geographically as they could be exposed to the local market conditions.

Commercial property funds

There are essentially two types of commercial property funds.


The property investment funds own and manage the properties directly. They spread the risk across a wide number of property types – Shops, Factories, Warehouses, etc and geographic regions.

You benefit in two ways;

  1. Rental Income – giving an annual return
  2. When you sell your shares – Growth on the value of property

Pros and Cons of direct commercial property investment funds

Many of the commercial properties are on long term rentals, typically 10 to 15 years and attract upward rent reviews and are subject to annual inflation increases.

Other benefits;

  • You are not managing the property
  • Not looking for tenants
  • Generally invest in quality property with good covenants

The downside is that in a downturn market

  • Properties do not rent easily
  • Tenancy voids can be for months if not years
  • Shares go down in value –

During the crash of 2007/08 – shareholders could sell their shares as the funds had to liquidate the assets – in some cases it took 12 months before a shareholder could sell…and at a loss!

Indirect commercial property funds

We have discussed these earlier in OEICs Buying shares in companies that invest in companies don’t have the liquidity problems that direct commercial property funds have, allowing you to buy and sell freely.

Returns are like another share you would buy and volatility of market forces mean they go up…as well as down!

Like any other shares there are annual returns on your investment – (Or not as the case may be!) – these through the share increasing in value or dividend income, rather than the capital gain on the property directly or rental income. But while you get the benefit of the liquidity of an equity-like product, you also get the volatility of investing on the stock market.

Buying Commercial Property

The decision is one of looking at reduced risk and exposure to commercial property. Whislt property investment trusts and OEICs are reduced exposure – you have little control over the investment and still have tax liabilities.

Buying your own commercial benefits can yield good capital gain returns and typically better rental yields. Many commercial units allow for permitted development rights. This is a government scheme that allows for a change of use on a property without the need for any planning permissions.

This gives a reason for the property investor to seek out properties that have this gain. Many offices and retail units in towns have seen a mass conversion to flats – for the student market and homebuyers.

The UK housing market is short of housing – government stating that another 200,000 houses a year need to be built but that has been the case for decades. To overcome this many local councils are allowing the permitted build of residential property in commercial premises.

(Research by Santander)

Britain’s population is set to increase to 70 million within a decade. The UK’s population stands at 65 million and another 5 million residents need to be housed.

Santandar predicts that the average house price in 2030 will be £560,000 from £285,000 today. That would be the equivalent of 9.7 times average income – today it is 7.9.

So the conclusion is a simple one. Commercial properties with a residential angle can yield rich rewards to investors that are prepared to consider the advantages over residential property.

The Property Buyers specialise in buying commercial and residential property. Our recent acquisitions have included public barsrestaurants, a number of care homes – now converted to residential flats and offices. We also hold large property porfolio of quality residential properties that we occassionally sell.

If you need to know more about buying commercial property investments or residential then call me – Baggy Tiwana – 07971 241120 or go below for property deals;

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Commercial Mortgage Rates for Buy to let Property 2017 to 2018

Evolution of the Buy-to-Let Market

Buying property is a relatively new phenomenon in the UK Prior to 1990 rental residential or commercial properties were dominated by the Government bodies. The private rental sector only began to emerge once the Government changed its housing policy in the 1980’s and mortgage lenders started to introduce specialist buy-to-let home loans.

During the post-war period of 1945 to 1980, the UK Government didn’t push the private rented sector. A number of housing policies were in presence that stifled the possibility of common individuals making money from owning and leasing home to private rental market.

The UK Government managed a big council real estate plan that supplied rental accommodation for non-homeowners. The housing was supplied by the Government at a regional level and rent was collected by local councils. In addition to this there were stringent rent controls in place in addition to tax concessions for owner-occupiers.

Throughout the post-war period the Government controlled the construction of houses for UK citizens. In contrast, today there are essentially no private houses being developed by the Government and most property dwellings are developed by private construction companies and small house builders.

The modern buy-to-let industry can trace its roots back to the 1980’s when the Thatcher Government started to motivate council occupants to purchase the homes they were leasing. A “right-to-buy” scheme was introduced which allowed council tenants to buy their properties at significantly discounted costs. During this period the private rental sector also began to emerge due to the fact that individuals were renting from the private sector as oppossed to council run properties, due to the shortage of housing and an increasing post war population.

Buy-to-Let Mortgages Emerge in the UK.

Property financial investment actually started to boom in the 1990s thanks to a small group of loan providers who started to offer expert buy-to-let home mortgages to individuals who wished to own investment property. The major contributor was the introduction of the Housing Act of 1988 – which saw the introduction of the Assured Short-hold Tenancy. This allowed for the landlord to recover property should the tenant be in rental arrears or unsuitable.

There were six lending institutions in overall and they collectively established the Association of Rental Letting Representatives (ARLA).

In addition to the availability of buy-to-let home mortgages, the personal rental market experienced a duration of growth due to numerous social and financial factors. These elements consisted of increases in the variety of small homes, net migration, the growing number of university students, and a boost in the typical age of first-time-buyers. The mix of these factors led to a boost in the number of properties offered for sale by agents and the number of renters who wished to rent residential or commercial property from them.

Ever since 1996, when the Council of Mortgage lenders presented buy-to-let home loans to the UK market, residential or commercial property rates have actually experienced strong growth. The rental market has consistently outperformed the equities market and for this reason there is £40 billion pounds worth of mortgages representing 2.7 million properties in the UK.

Many investors who purchased home as early as 1996 have actually experienced high returns on the capital worth of their residential or commercial properties. This has actually permitted them to re-finance their buy-to-let home loans in order to launch equity and buy much more properties with the profits. Other investors utilize the funds collected from launching equity to invest in other services or to fund their way of lives.

Additionally, individuals who did purchased buy-to-let residential or commercial properties in the 1990s have actually seen experienced double digit returns. This has actually led to a new wave of UK property investors purchasing buy-to-let property with the hope of achieving comparable medium to long-lasting gains.

These factors have combined to ensure that the residential or commercial property market in the UK remains strong which continue to rise beyond the rate of inflation each year. The market for buy-to-let home loans has actually also thrived in line with the property market as lending institutions line up to take their share of the spoils.

The Future of Buy-to-Let Mortgages

Buy-to-let mortgages substantially grew up until 2009 – post financial crash. The Council of Mortgage lenders have stated that the buy to let market will contract to £30 Billion in 2018 from the £40 billion of 2015 – 2016. Tougher lending criteria has hit landlords, together with stamp duty charge on second homes means that many fail the affordability test of mortgage lenders.

The future looks bleak for many residential landlords who are looking at selling their property portfolios. Those in the commercial sector are a little more up-beat as the returns on commercial property investments are significantly higher than the residential sector.

To find out more about commercial mortgage rates for buy to let property or property deals please go to

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What is Rent to Rent in 2018?

This arrangement entails an agreement usually in the form of lease where the landlord rents a property to an individual or company at a fixed rate.

There a number of ways to sublet a property these range from guaranteed rental schemes through to company tenancies and lease agreements.

The Rent –to-Rent scheme appeals to landlords who want ‘a hands’ off investment with a guaranteed rent and zero property maintenance.

These landlords tend to be those who have had to move out of area or buy another property and do not want to manage a tenanted property.

Conversely the ‘Rent-to-Renter’ can significantly gain from this arrangement by creating Houses in Multiple Occupation (HiMO’s).

The rent-to-rent market has also ‘taken’ many homeowners who ‘give-up’ their properties through Lease Options.

What is a Lease Option

Essentially a lease option is where a buyer agrees to buy a property at £X, 000, and complete on a fixed date, usually 2 to 5 years. An agreement is drawn up where a buyer purchases this agreement at a token amount from the seller, typically this equating to 75% of the option price and is non-refundable.

The market is awash with property owners that have entered into lease option agreements. These agreements, usually entered into by intermediaries are then sold on to a buyer. Typical fees can be anything from £2,000 through to £5,000.

There are many reasons why a home owner may enter into a Lease Option Agreement:

The homeowner may be relocating and enters into an arrangement where the buyer takes control of the property
A few years ago many faced problems in paying their mortgages and entered into lease agreements
The home-owner through marriage or a partner ends up with a second property and theirs will not sell and do want the hassle of a tenant.
The option buyer will take over the maintenance, cost of mortgage and any other costs. The buyer typically tries to maximise the income on the property by creating a HiMO.

Sellers’ Risk

There are a number of risks that landlords and home owners need to consider before a home owner or landlord enters into any of these schemes:

The landlord or home owner is responsible for the property and the repayment of the mortgage. If the buyer gets ends in financial difficulty, the landlord/homeowner is responsible for any missed mortgage repayments and potential loss of a property.
By not informing the Mortgagor of entering into any of these schemes may void the mortgage terms.
The contract entered into may have conditions that incur further costs or penalties.
The below is an excerpt from the Operations Director of a high street building society following a conversation with The Property Buyers:

“From a lenders perspective I am assuming;

the current owner would vacate (in order to achieve the rental potential illustrated) which would mitigate the risk of sale and rent back regulations; and
that the mortgage payments would have to be paid from the ‘investors’ bank account (to ensure the investment and option is protected); and
that the title is remaining in the original borrowers name (to avoid the stamp duty requirements); and
that the original mortgage will remain in the current owners name.
If these assumptions are correct then the Direct Debit/mortgage payment would be made by a third party, and under Direct Debit guarantees the recipient (lender) is required to notify the mortgage holder within 14 days of any changes (e.g. rate changes), which if we were communicated with a third party could be deemed to be in breach of the regulation.

Secondly, the lender would still be issuing correspondence to the original borrower e.g. Mortgage statements, and if the owner had not registered an alternative address these would be returned by the tenant and cause the lender to investigate. Alternatively, the current owner could request consent to let and if the lender gives permission, other than the payment issue, the ‘assisted sale’ may not be detected by the lender.

As a lender if we had suspicions regarding the appropriate use of the property or the person paying the mortgage our powers do permit us to seek possession to redeem the mortgage – in which event any surplus funds would be sent to the owner named on the title/mortgage – not the ‘investor’.

(as a foot note if rates started to rise I cannot see how the mortgage payments could be negotiated/controlled, the investor would rely on the original borrower to discuss with the lender any mortgage variations e.g. product switch, term changes etc.…)

I am not qualified to offer any investment advice, other than to say I have never come across ANY investment that does not carry an element of risk.”

The risks with lease options and rent-to-rent have the potential to be devastating. The Sell and Rent Back schemes were curtailed by the FCA. Some rogue operators bought houses at knock down values, then to evict the tenant and now this market is heavily regulated.

The same is true of some of those offering Lease Options and Rent to Rent schemes. The internet is littered with stories of landlords who have entered into Rent-to-Rent schemes only to find council housing officers on their door steps enquiring as to why they do not have HiMO licences.

There are probably hundreds, if not thousands of home owners, that have not reported to their lenders of Lease Option agreements nor Rent-to-Rent schemes that invalidate their mortgage conditions.

The facilitators of these ‘deals’ , good and bad, make good monies from selling them on to buyers, but as in the case of Sell and Rent back will we see the FCA start to investigate – it will ultimately be the home owner, the lease option holder and the Rent-to-Renter that will lose out.


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Read This Info Before Buying Commercial Property

The world of commercial real property is a vast place with a load of information that you will need wade through. What exactly qualifies a property to be a commercial property. Also, how are the rules and legalities different from private property to commercial property? This article will attempt to give you some great tips for understanding commercial real estate.

Review all the current leases that are actually at a property before deciding to buy. It may be that the main source of income for the location is going to be moving out when their lease is up in a year. You need to know all of this information so that you aren’t caught by surprise by a sudden drop in income down the line.

You can do a lot with LinkedIn. Create a good profile for yourself and communicate actively with potential customers and partners. If you are not getting results from your LinkedIn activity, focus on a different kind of audience. You can also create a group yourself where you can keep people updated on your progress and on new opportunities.

Be prepared to be patient and invest a good bit of out of pocket money when working on purchasing a commercial property. Buying commercial property is a long process and you are going to have to pay to get surveys, inspections and some other fees that many do not expect to get hit with when they invest.

Make sure that you find out the crime statistics in an area before purchasing a commercial property. Criminals often target commercial properties as they usually contain large quantities of valuable goods inside. If an area has a high crime rate, it could be difficult to find retailers who want to rent your commercial property purchase.

If you have the money to invest in commercial real estate, you should have the money to consult an attorney. If something goes awry, will you be personally responsible financially? Or can you and an attorney create a legal layer of protection separating your business deals from your personal assets. Let a good attorney advise you every step of the way.

Banks are sure to take you seriously as a commercial real estate investor if you have the proper paperwork prepared. Bank officials will see you as organized, and will take your business plans more seriously. They will also see solidity in any investment you wish for them to back. Property records, financial records, and appraisals are a must for all investors.

When you buy commercial real estate, think big and maximize profits. If you are about to buy a small apartment complex, and they make you buy a commercial real estate license, it can be quite a hassle instead of a profit. Think about buying a property that is big and maximizes your potential earnings in comparison to cost.

Research and follow up is always the key to understanding the commercial real estate world. Remember, talk to your financial advisors, as well as, a title or deed officer. Since you will be purchasing a property for commercial uses, it is always a good idea to have your legal representative be advised of each step of the process.

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How to Sell My Land in 2018

When choosing to sell your land, there are a variety of things that come up when looking to get a valuation. For instance, location, the present condition from the housing industry, transport linkages, and physical attributes will all either add or take value from a bit of land. However, you will find none that play as big a job as planning permission/consent.

You need to consider a number of factors;

Land Prices – When valuing land you need to consider – Does it have planning permission or none! It’s usually a idea to speak to an expert and if it is land near to road systems, with other developments, or is situated in a place which will see rise developments then you need to consider an application for planning as this will you the best uplift on value.

With or Without Planning

Land with planning permission gets you a better price than land without planning permission. Get an idea of planning from your planning department. Some planning officers will be helpful some not – this varying on your council. It seems to that councils in the South are worse than those in the North of England.

Getting Planning Consent

Typically this is achieved through an architect, who will draught drawings to submit to your regional planning office. You don’t necessarily do this, I have seen outline drawings on a back of an envelope to planner for consideration!

Research Local Planning Policies

Every county has a District Local Plan which guides the councils as to what they will allow and will not allow in the county

Avoid Full Planning Committee submissions

This is usually as a result of chief planning officer who refuses the planning and then you are left with an appeal – Expensive.

Outline Planning

It’s important the application be tracked to make certain it doesn’t hit any bumps on the way, by means of telephone call or email. Previously, previously councils were a amenable to hear amendments to make the applying work however this doesn’t can be found as councils are remunerated by an amendment process. With this thought, applicants will have to be accurate using the application and just apply if in the end discussions between planners, architects and land proprietors occurred at outline planning.

If your problem does occur, it will likely be much simpler and cheaper to withdraw the applying and begin again instead of seeing it rejected. If your mistake is created, the applying could be withdrawn, amended, after which an re-application could be made, without incurring more charges.

Pre-application Advice

As well as information being readily available on your council’s website – you can receive more ‘formal pre-approval advice’ in most cases it costs, but its well worth it.

Having said all that you may have not even need planning you may have ‘Permitted Development Rights’!

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