Tagged in: UK

What Is A Buy To Let Mortgage

Buy to Let Mortgages are loans specially designed for anyone who wishes to invest in the property market by buying one or more houses and renting them out to tenants. Buy to Let Mortgages differ from previous investment vehicles by specifically using the rental revenue as the main factor when determining the ability of the buyer to meet the monthly mortgage payments. Many high street banks and building societies now offer a buy to let mortgage product. The percentage which the buy to let lender is willing to lend is likely to be restricted by many lenders to 85% of the value of a property.

Buying Property

Buying property to let has become increasingly popular to the UK investor. Buy To Let mortgage lenders differ in approach. Buy-to-let borrowers do have to jump through some extra hoops to satisfy mortgage lenders. The buy to let mortgage term can be anything between 5 and and 45 years. When buying to let it is important to know the market in which you will be trying to let your property.

Buy To Let Property

The more you are willing to do a property up, the higher the potential profits. There is the danger that the property could lie empty for long periods and the market could suffer a downturn. There is a real advantage if your buy to let property is close by as you will be able to manage the property yourself. However, if you are employing the services of an agent then the vicinity of your properties is not a real consideration. One rule of thumb many buy-to-let investors apply is to factor in the property sitting empty for two months of the year this gives a substantial buffer. Finding the right property is key to the success of your long-term strategy.

Buy To Let Mortgages

Popular perception is that buy-to-let mortgages are hugely expensive and very restrictive. However, the interest rates available for buy to let products is really not that much higher than a regular residential mortgage. Landlords also have a choice between interest only and repayment mortgages. To begin with, buy to let mortgage lenders do not use the applicants income solely as a basis of approval, instead they base their decision mostly upon the likely rental income that the property will achieve. Over the long term, though, both the capital value of the property and the rental income should go up, making buy-to-let a balanced investment. Usually, regular buy to let lenders will demand the rent to cover at least 125% of the monthly mortgage payments. However some specialist lenders are more relaxed and may only require 100% full coverage.

Buy to Let mortgages are not regulated by the Financial Services Authority. Even though buy to let property is a fairly safe investment taking into consideration the historical movement of house prices, you still need to check the market very carefully before going ahead with a purchase.

Dyson Vs Hoover – The Value Of Intellectual Property

Most people have heard of a Hoover, but almost as many have now heard of a Dyson, too, as the brand has become synonymous with innovation in vacuum cleaning, and in other household products, too.

Dyson’s success – the company now has more than a third of the UK market for vacuum cleaners – has not been without conflict. One major factor in its advance has been make sure that its product innovations – in combination, the company’s intellectual property – were carefully protected.

Legend has it that James Dyson was inspired by the air extractor at a coating plant, and used this inspiration to create his famous cyclonic vacuum cleaner. The initial frustration that made him look for a new idea was how the efficiency of his regular vacuum cleaner decreased as dust filled its bag.

Dyson had the good sense to consult an experienced intellectual property (or IP) lawyer who advised him to ensure his new technology was patented. And, thanks to that important step, he was in the ideal position to be able to defend himself against a much larger rival, when they developed a product that looked remarkably similar to his cyclone vacuum. That rival was Hoover, who Dyson took to court in 2000 to sue them for patent infringement. It is understood the successful claim meant around $5 million in damages – but more importantly, it stopped Hoover and others from copying the Dyson design and ensured his leading design had no clear rivals in the marketplace.

Hiring a specialist IP lawyer as Dyson did will make sure you are informed about the best way to protect your intellectual property, whether through use of a patent, or another route such as registering a trademark or a copyright. It is vital to seek advice and take action early; had Dyson waited until his first model was selling well, he could have laid himself open to having his proprietary design copied, without any legal protection or comeback against those benefiting from the sales of a product with a similar design.

With patents, the rules of patentability are specified by the law, with certain discoveries disallowed from the process. These exemptions include items already existing in nature, scientific theories, and some diagnostic methods. And to qualify, a new product must be capable of actual manufacture; and it has to be obviously new.

Taking advice on your intellectual property from an experienced, qualified IP Lawyer is hugely important when considering whether a patent is the best way forward for you, as well as when making sure that you have filed the documents properly and so afforded yourself the best commercial protection. Taking the right IP advice could mean your invention turns you into the next James Dyson!

Various Uses Of Mortgage Calculators

Much like common mathematical calculators, a mortgage calculator is a small handheld device to compute the total payment of a mortgage loan, including principal, interest, taxes and insurance with relation to the repayment schedule such as quarterly, monthly or biweekly. The instrument can also used to calculate the amortization schedules, balance on the mortgage taken, and the future value of a mortgage. Not only that, some mortgage calculators have rent-versus-buy features to analyze which of these two options would be better in the long term. Most mortgage calculators also do currency conversions and tax calculations.

A calculator can come in quite handy, since you can take it with you to meetings with your realtor or builder, to crunch the numbers as you go through the purchasing process. The Internet will provide the easiest use of a home mortgage calculator, since you can simply punch in the information necessary, and the computer will do all of the hard work for you.

The keys are similar to ordinary mathematical calculators having numeric keys from zero to nine. Similarly, there are related symbols for functions such as addition, subtraction, multiplication, division, percentage and so on. They have integrated circuitry within their bodies and are operable with one or two 1.5-volt pencil cells. Since mortgage calculators are used for quick calculations, their buttons are usually larger in size than normal calculators. Depending on the quality and various features, they may be priced between 10 to 50 UK pounds.

To use a mortgage calculator, you simply need to know the approximate purchase price of the home that you are interested in, and the current rate of interest available for a loan in that amount. You can find out how much your monthly mortgage payment will be, which will give you an idea of how much house you can afford. You can also use a mortgage calculator to determine the annual income that will be required to purchase a home in a particular price range. To utilize this type of mortgage loan calculator, you will need to know the amount of your monthly expenses, as well as the purchase price of the loan and the interest rate.

There are plenty of commercial mortgage calculators on the web which you can use free of charge. All you need to know is your mortgage amount, the down payment, interest rate, and the number of years. You will get your monthly payment calculated for you by simply putting those numbers into the commercial mortgage calculator. Often, companies will create free tools for you to post on your website in exchange for a small link back to them. This will save you time and money in creating your own web tools or calculators, which can often be expensive. There are any numbers of websites on the Internet that will provide this service for you, and a number of calculators that you can purchase that will provide this functionality.

Thus, a mortgage calculator is an efficient tool to help you calculate how much money you can afford to pay on a mortgage and to have a price range in mind before searching for a suitable home and loan option. If you are thinking of refinancing your current mortgage loan, a mortgage calculator can be a great tool for you. For this, you need to know what your existing mortgage loan balance is, the current commercial mortgage interest rate, and number of years you wish to refinance your commercial mortgage loan.

Top Reasons For Buying A Property Abroad

There are several reasons why people choose to buy a second property abroad.

Ownership of property outside the UK is increasing in popularity. Fuelled partly by lower house prices and better climates, and made more favourable still by low-cost airlines, the appeal of a second property abroad is understandable. Once the preserve of the rich, a holiday home in Spain, Portugal, France or anywhere in the world for that matter, can now be acquired easily by the majority of the UK population.

There are three top reasons that people choose to buy a property abroad:

To live permanently in a new country

Some people move abroad for work, whilst others choose to retire outside the UK. Moving to a new country on a permanent basis is a challenge and a risk, and so many people choose to buy a property abroad, whilst keeping their UK home and renting it out. This means that they have somewhere to come back to should things not work out as planned. For many, moving to a new country is one of the best experiences of their life. The chance to live in a new culture; learning the language, eating new foods and soaking up the sun, is exactly what people are looking for.

To have a permanent holiday base

Some people like nothing more than the security of having a permanent holiday base. You know where to go, what shops are available, where the best beaches are and what attractions are nearby. You dont have to waste any of your holiday time getting acclimatised and your accommodation is a home-from-home. Whats more, you can visit it as often as you like throughout the year, and you can invite friends and family to come along and enjoy the holiday with you, or lend it to them so that they have a ready-made holiday base of their own.

To rent to other holidaymakers

Many people choose to cover the costs of buying and running their property abroad by renting it out. There are two main ways to do this; hiring an agent to rent the property on your behalf, or handling all the rentals yourself. An agent will take a percentage fee, but will handle all the bookings, cleaning and maintenance of your property. If you manage the rentals on your own, you will need to find someone trustworthy who can clean and prepare the property for your customers and handle any issues that arise when people are staying in your property. Renting is a very effective way to cover costs, and even to make a profit, but you have to limit the times when you can use the property and be prepared for damage and wear and tear to increase.