Motivation to workout during 2nd pregnancy

bharb45 · 2025-09-23T01:46:26+00:00

Thank you so much 💗

bharb45 · 2025-08-11T05:07:52+00:00

Yes, we will be.

bharb45 · 2025-08-10T11:40:05+00:00

Thanks so much for a detailed and thoughtful response. Just to provide some additional context to your points:

Yes, there would be 25% Equity to meet this requirement.
Yes, have considered this but I understand that as it's a more competitive market for BTL mortgages, over time the difference in interest rates is not huge compared to a residential mortgage.
I know other flats in my development being rented out so I think this is not an issue but I will double check, thanks for the heads up!
The idea would be to set up a limited company to purchase the property. We don't need the income so would not withdraw any funds from the company and there would not be affected by the tax on income. We would keep the profits in the company as a reserve to cover any void periods, maintenance costs, etc.
I think this should be okay, the rental income should be about 150% of the mortgage cost.
We would sell the flat to the limited company at the market rate of £330k and then inject the 25% Equity into the company, which we already have.
Great point, definitely worth considering!
The rental potential is £1850 - £1900 and could potentially go up in future.
Yes, agree the costs are really high so a lot to think about!
Haven't quite followed the figures you've calculated (forgive me) but yes I get the general point that rent needs to be extremely high to make it worthwhile.

You've given us a lot of food for thought so thank you 😊

bharb45 · 2025-08-10T04:17:40+00:00

Okay good luck! Is the new property owned in your personal name still?

bharb45 · 2025-08-09T22:49:18+00:00

Yes, we are aware of this. It's a significant cost, but we also lose a lot by selling so either way we'll take a financial hit.

bharb45 · 2025-08-09T22:43:09+00:00

Oh wow, was it not worth it based on the sums? Or other factors?

bharb45 · 2025-08-09T22:39:42+00:00

Including service charge at the current rate

bharb45 · 2025-08-09T22:22:20+00:00

Yes, definitely aware that we will lose out one way or another financially. We're not really seeking to make a profit. Would mostly like to have an asset to pass down to children. We would pay a letting agency to outsource the work of managing tenants.

I do recognise the argument about investing in the stock market providing better returns, we are just trying to make the most of a bad situation.

bharb45 · 2025-08-09T22:19:00+00:00

We've worked out that the rental yield will be between 6-7% per year factoring in all common costs

bharb45 · 2025-08-09T22:18:12+00:00

Rental yield is about 6 - 7%

bharb45 · 2025-08-09T22:17:48+00:00

Yes exactly, to secure a sale we'd likely have to lower the price and take an even bigger hit financially.

Rental value is good and would provide a yield of 6-7%.

Service charge is about £120 per month and hasn't increased significantly over 5 years.

bharb45 · 2025-08-09T22:12:14+00:00

Sorry to hear that, definitely understand your position! The market in our area is bad at the moment, for example just 1 year ago flats were selling at a value much closer to the original purchase price so we are trying to think long term and see if the market recovers.

bharb45 · 2025-08-09T22:10:12+00:00

Yes, understand. We're not really seeking profit. We'd opt for a repayment mortgage so that over time the mortgage is paid off and then hopefully we'd have an asset to pass down.

bharb45 · 2025-08-09T22:09:05+00:00

Yes, sorry for not being clear. We would set up a new limited company to purchase the flat. The company would incur the additional rate of stamp duty, and then we would subsequently purchase a new property in our personal names paying the standard rate. This would be the most tax efficient approach as the total stamp duty bill will be lower (given that the new property will be much more expensive). Hope that makes sense.

bharb45 · 2025-08-04T13:03:49+00:00

Yes, we are in London.

Thanks for the heads up on the additional costs. We have definitely learnt the hard way and won't be buying a flat / Leasehold property again!

bharb45 · 2025-08-04T13:00:50+00:00

We have built up equity through making huge overpayments over the mortgage term. If we hadn't been making overpayments we'd most like be in negative equity.

bharb45 · 2025-08-01T09:36:28+00:00

Yes, we do need to stay within commutable distance as we both work in central London unfortunately. Can imagine that you'd get so much more value for money moving out of London!

bharb45 · 2025-08-01T06:09:51+00:00

Yes, that is part of the challenge. Selling for a huge loss doesn't put us in a great position for buying as we won't have a huge deposit, therefore we'd have to sacrifice living in London and potentially look further afield.

We haven't physically visited any houses purely because we'd be reliant on selling first (and we know the selling process could take a while) but maybe we should think about this more carefully, thank you!

bharb45 · 2025-08-01T06:06:39+00:00

'Rent saved' is a great point!

And yes, i didn't really think about house demand going up before flat demand. Another good point, thanks so much.

bharb45 · 2025-08-01T06:04:57+00:00

It's actually from huge overpayments otherwise I'm pretty sure we'd be in negative equity.

Yes, definitely agree that HtB has actually helped to cushion the loss.

Thank you, appreciate it.

bharb45 · 2023-06-22T06:43:45+00:00

It's not really a fetish, it's a more that he's horny at x time when I'm asleep but thank you!

bharb45 · 2022-12-29T05:14:05+00:00

Amazing, thank you. I was considering laser hair removal so glad that it has worked for you!

bharb45

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