CPC Investor Day Summary April 2018
Our latest CPC Investor Day took place at the end of April. The focus was on industry experts providing hands-on assistance and advice to investors. To provide investors with the maximum opportunity to consider the specific topics, an intimate “round-table” format was adopted with the experts moving from table to table.
The format also enabled experienced investors to share their specific experiences, in conjunction with the experts’ advice, to new less experienced investors. The investor feedback from the day was very positive, with many saying it had really helped their investment plans moving forward.
A list of the experts, together with a brief summary of their main points is given below, along with links to any formal presentations.
Property Investor Day Presentations
Karl’s presentation highlighted some of the benefits of using second charge mortgages as an alternative way to capital raise for portfolio investment.
Karl explained that we are able to assist with rate switches and product transfers for any BTL facilities investors may have on their existing properties, without incurring a fee from CPC. Unsecured business loans were also discussed.
The General Data Protection Regulation (GDPR) will come into effect on 25th May 2018 and will bring with it changes to the way in which personal data is processed and used. You will shortly receive an email updating you.
Funders - LendInvest, Interbay and Aldermore
The funders talked about their individual approaches to property investment. These include short term loans, Investment & BTL, HMO, Property Portfolio, Light & Heavy Refurbishment, Auction, Development and Bridging Finance amongst many others. The advice is to talk to CPC Finance to find the right lender for each specific purpose.
Surveyors - Robert Sterling
The surveyors discussed what they look for when surveying for an HMO investment. In particular what features make the property attractive as an investment and the potential drawbacks (e.g. local class of use). Robert Sterling recommended discussing the individual circumstances of an HMO property with a local surveyor before investing. Changing rules around EPCs were also discussed.
Chartered Accountants - Accura
The accountants outlined that investors now have to pay tax on gross earnings as an individual. Transferring properties to a Limited Company can have long term tax benefits, but does run the risk of crystallising any gain in the short term, with tax implications. The advice is to speak to an accountant who specialises in this area.
Solicitors - Ronald Fletcher Baker
Paul Cain and Kadri Abu-Hejleh, solicitors from Ronald Fletcher Baker specialising in Real Estate Law discussed the proposed reforms to the current position for regulated Houses of Multiple Occupancy (HMO). Specifically, they discussed the government proposal to extend the scope for mandatory licencing. Currently mandatory licensing applies to “large” HMOs, meaning those that comprise three or more storeys and are occupied by five or more people. The government proposal will extend the need to obtain an HMO licence for HMO’s consisting of 5 or more tenants and therefore removing the need for an HMO to have three storeys to fall within scheme. They also discussed the various possible penalties of failing to have an HMO licence including but not limited to:
- It is a criminal offence which can result in a fine of up to £30,000.00
- If a landlord has been convicted of operating without a licence tenants, including any former tenants living at the property whilst it was unlicensed, a Rent Repayment Order could be made against them to reclaim rent they’ve paid for a maximum of 12 months
- You could be banned from being a Landlord
In addition, they highlighted that you cannot serve a section 21 notice if you do not have an HMO licence when it is required and that it is a requirement to simultaneously inform your lender when applying for an HMO Licence.
Insurance Brokers - WTJ
The Insurance Brokers discussed how investment property insurance often does not go into a simple yes/no answer system, particularly if it is an HMO property or if there is a portfolio. They noted the benefits of using an insurance broker who specialises in property insurance, and how combining all properties into a single policy can ensure that claims are more likely to be paid, as well as reducing costs and administration overall.
Investor Day Highlights
“I really enjoyed the event and think that the new round table format worked really well. It allowed me to have 1:1 sessions with the experts and the opportunity to ask more questions.
This is only my second event but felt that I took away some new and useful information.
I loved the goodie bag and look forward to the next one.”