Hey, I'm Matt. I've worked for several years in financial services & banking for one of the UK's largest banks in London and now work as a senior product manager in a global startup. On the side, I'm building a property development group utilising all my leadership, project management and financial experience. I'm helping share my knowledge of working in these roles mixed with the world of property.
22 | The Mortgage Offer is Sorted on the Buy-to-Let!
Hello everyone! π
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βIt took a while longer than expected, but I finally had the mortgage offer come through on #WTF1, my first buy-to-let and small refurb project! We had a few issues with the lenders accepting holding companies but after Precise messed about, we ended up getting a mortgage from their sister company, Kent Reliance at about 3% interest only.
This means, all being well - we should see completion of the property maybe in mid-September where I'll be heavily documenting the refurb over on my YouTube channel.
This week I also took part in some interviews with a friend I met via Instagram known as Aaron Knightley, if you haven't checked him out, he has his own YouTube channel and I'll link to the interviews below.
Here's a photo of the kitchen - I'm thinking of replacing the tiles as they're pretty grim, but also buying some kitchen doors from www.diy-kitchens.com. What do you think? Or should I just bite the bullet and get a proper kitchen re-fitted?
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π‘ The World of Property
This is an interesting piece of news that I came across this week that blew my mind. The amount of tax paid by people buying a new home has nearly doubled compared to last year, despite more than half of buyers benefitting from the stamp duty holiday.
- Buyers paid a total of Β£2.06bn in stamp duty in the 3 months to the end of June - 90% more than in the same period of 2020
- Only 37% of people buying a home paid stamp duty during the period, compared with 64% a year earlier, and yet the value of the tax collected almost doubled.
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But why is this happening?
There was a 175% jump in the number of homes changing hands during the 3 months to the end of June, as people rushed to complete their purchase before the full stamp duty holiday ended, according to HMRC.
It also led to a significant rise in the number of people buying homes costing more than Β£500,000, as they were still able to make significant stamp duty savings, despite being charged the tax at a rate of 5% on the portion of their purchase costing between Β£500,001 and Β£925,000,10% on the portion between Β£925,001 and Β£1.5m, and 12% on the portion above Β£1.5m.
A total of 59,600 properties were bought for more than Β£500,000 in the 3 months to June 2021, compared with just 13,000 a year earlier, with these higher rates of stamp duty making a significant contribution to the total amount of the tax paid.
A further Β£485m was paid by people purchasing a second home or buy-to-let property, as the 3% surcharge on these homes was not covered by the stamp duty holiday.
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π½οΈ YouTube this week
Rather than sharing my own videos this week, I wanted to share my 3 part interview that I did with Aaron Knightley - if you want to learn a little bit about me for a change, feel free to check out his videos! I LOVE the B-roll in the first video at the beginning!
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Matt Brighton
Hey, I'm Matt. I've worked for several years in financial services & banking for one of the UK's largest banks in London and now work as a senior product manager in a global startup. On the side, I'm building a property development group utilising all my leadership, project management and financial experience. I'm helping share my knowledge of working in these roles mixed with the world of property.
Hey friends, It's been a few months. I don't tend to spam your inbox with lots of these emails for those who have been subscribed for a long time to my updates. As usual, if this newsletter isn't for you - there's a link at the bottom to remove yourself from the list. What's going on in the property market? My latest YouTube video explores the latest figures and provides a balanced view of what's happening in the property market. Rishi is celebrating halved inflation, which doesn't mean...
π Hey Reader It's been a busy few months, so I've been a little quiet on emails. We finally moved into the big renovation project outside of London after a stressful 8 month conveyancing process and the house almost falling through (classic). Planning permission has been submitted and we're starting to rip out the house, however living in a project that you're doing up is always tricky with logistics! After we bought the house, a house 4 doors down the road sold for Β£1.5m in cash to a famous...
π Hey friends Premier Property Lawyers are still being the biggest pain in the bum in our property sale. My buyers mortgage expires in 3 weeks and they keep raising endless menial enquiries at the last minute that keeps holding us back. I repeat my advice from the last newsletter - never ever use any of the conveyancing brands under the Simplify group. They're awful. In other news - the property market has took an incredible flip over the past few weeks, we really did not expect interest...