Flying Sandwiches

Just seen a very interesting idea from Melbourne Australia. Jafflechutes is a sandwich shop with a difference.

Unlike most food retailers, it isn’t based at street level where the customers and the expensive rents are. Instead the hub of the business is a pop up cafateria in a fifth floor apartment. So how do they get and serve customers. Well orders are placed online, and then the sandwiches are delivered at a pre-arranged time via mini parachutes dropped out of the fifth floor window. Aside from the practical cost savings, there’s an obvious PR/publicity angle to this and a novel buying experience for customers.


1. Could this work in a city near you?

2. What else could be delivered  via mini parachute, thereby negating the need for expensive ground floor retail space?

Streetwise Property Alert 4th June 2014

The first of our new series of Wednesday articles? Over to Peter Faulkner, Mr Mortgages, who talks about various borrowings for landlords…

Second Charge Finance

With property values increasing rapidly, especially in London and the South East, investors are enjoying increased equity levels. However, the rental yield is not increasing as fast, locking this wealth in as investors find it difficult to release any of this capital for improvements or to fund deposits for further acquisitions.

Many have existing Residential and B2L mortgages on excellent low tracker rates and so it makes sense not to disturb these. In addition, the relative rental yield percentage is lower and so refinance would be difficult anyway for rental cover calculations. Perhaps the solution for some would be second charge lending.

For example, one of our clients had a B2L property in Greater London that had gone up to £380,000 in value with a £198,000 tracker mortgage with monthly payments at £496 (3 per cent interest rate) and a rental yield of £1,300. He wanted to release £50,000 to do some property repairs and to use as a deposit for another property in the North. The second charge interest only loan is at £447 per month. He plans to redeem this second charge B2L loan in five years. The ability to service the loan was based on the rental income, not his personal income and he was over 65 years of age at the time. For now, the total monthly payments are £943. If he had managed to get a full long term re-mortgage for £248,000 his monthly payments would have been £1,031 (interest only at 4.99 per cent) and the client got the £50,000 in two weeks.

Secured loans are more relevant than ever before, a few key points below on when to use this type of product:

On low SVR or base rate tracker mortgages which are too competitive to re-mortgage away from to raise additional funds.

On interest only (residential), if re-mortgage done then entire mortgage has to be changed to capital and interest raising payment to unaffordable level.

Recently self-employed, need to work off projected figures or need to work from last 12 months’ business bank statements to prove income.

Slight adverse in the last 12 – 24 months meaning they are declined on score for a re-mortgage may be accepted.

Client wanting to raise money and secure on buy to let property.

Funds raised can be for any purposes (consolidation, business purposes, tax bills etc).

BTL repayment can be covered by personal income as well as rental income.

Products available:

Rates from 5.4 per cent for second charge loan secured on residential property.

Combined LTV up to 95 per cent.

BTL rates from 9.49 per cent.

Combined LTVs to 80 per cent for second charge loan secured on B2L property.

Loan amounts from £10,000 – £2.5m.

Cases outside criteria, we are able to take a ‘view’ and advise.

Secured loans would be on capital repayment with interest basis over a 10 year period with ability to make overpayments or early repayment without penalty. (Interest only, for the right proposition).

Auction Finance

We have access to funding products which are available and fast.

Example: Clients saw an attractive investment property in an auction catalogue. It needed some work but in advance of the auction they needed to know how much they could afford to bid. We arranged a flexible facility by the lender taking a charge on an existing property to provide them with the auction deposit and a credit limit with which to bid at the auction. The clients were prepared and put their hands up to bid with the confidence required!

100 per cent of purchase price and refurbishment works available – with additional security.

Advances from £10,000 to £1,000,000.

Terms up to 12 months.

England Wales and Scotland.

No upfront fees payable to the lender.

Payment options available.

After eight months the clients re-mortgaged to a buy to let lender at 75 percentage of the improved value (after renovating and renting out for six months) getting their capital back out and is now looking to buy another auction property.

Senior Landlord Lending

I have a number of clients in this position, myself included!

Many B2L investors started some years ago and now face limitations in getting mortgage finance for better deals, to release equity or to buy more. The difficulty is they have aged and are now in their mid-fifties or older with lenders placing age limits and portfolio limits in their lending criteria.

A research of B2L lenders at 75 per cent loan to value shows the following;

1 lender will allow term of mortgage to end by age 90 with no maximum present portfolio.

1 lender will allow term of mortgage to end by age 85 with no maximum present portfolio.

1 lender will allow term of mortgage to end by age 80 with no maximum present portfolio.

4 lenders will allow term of mortgage to end by age 75 with no maximum present portfolio.

Basically, only seven B2L lenders have an appetite for the older and experienced B2L investor.

Rates are competitive, but all have lender arrangement fees from £995 up to 2.5 per cent of the finance.

For example, a client aged 63 with 16 let properties could get 75 per cent interest only loan to value mortgage for a term of 26 years at an interest rate fixed for 5 years at 4.49 per cent followed by a variable rate, currently at 4.99 per cent subject to status and rental yield.

Most investors want to keep control of the properties well into old age as part of their retirement planning and building significant inheritance for the family.

Yield & Capital Growth

Much depends on long term strategy, flexibility, control of assets and exit planning. Property investment is a long term investment (unless, buying BMV to improve, develop, add value and sell on or ‘trading’ in HMRC terms),

What is the end game? If income in retirement is wanted, then perhaps best options are properties outside South East as they will provide the better taxable income in retirement in relation to value.

For example, one of our clients has 12 properties; average rent per property is £6,600 per year. He aims via a combination of making overpayments and selling to end up with six properties with no finance and have a gross rental income of some £39,600 (in addition to his other incomes (state and company pensions).

If capital growth for a lump sum in the future is wanted, then perhaps properties with the potential for stronger capital growth are needed, exit via sale with proceeds (after potential CGT liabilities) invested.

Perhaps a mixture is better with a spread of property types and locations to mitigate potential risks. Concentrating on one location for example, could be risky in that, what will the area be like in 20 years’ time? (It may have become an area out of favour).

As an example of putting eggs in one basket (or location) is the two chaps that have been business partners for over 30 years and have built up a substantial portfolio in what was a desirable area at the time and believed this location would continue to be desirable. Over time this location declined in value to become an area of high unemployment and, sadly a bit of a dump, with property values 40 per cent less than other locations within 30 miles. Food for thought.

All for now – email back if you’d like to chat to Peter about
mortgages, portfolios and ‘what next’.


Samples By Subscription

Here’s a business model you could copy  in a number of different markets.  Wineist is a Slovenian subscription based service which supplies subscribers with a  curated box of 6 wine samples each month. The box costs 16.99 euro for an individual box and  44.90 euro for a box suitable for a group. There’s a theme to each months box and each box comes with back up information about the wines and the  foods they go with.  Subscribers can then buy full bottles of the ones they like, and I’d imagine that’s where the main profit is.

Can you see the model? Sell sample quantities of something on subscription and then sell additional full sized quantities as a follow up sale. Is there anything in your market that you could apply this to?

Streetwise Property Alert 3rd June 2014

Welcome to the latest email of overseas property news and views…

Brazil Get-Togethers

Lots of you are looking at the latest Brazil introduction; the due diligence on that should be ready in about 10 days (although as we always stress, ‘you are an adult, it’s your money, so please take responsibility for doing your own due diligence and employing your own lawyer’). We can also offer get-togethers with the developer on various weekdays in London in June. Let us know if this interests you and we can set something up over the next two weeks.

Barcelona Update

The last time I was in Barcelona I took a hired, new, top-of-the range, Mercedes into an underground car park in the city centre and managed to prang both sides of it down there before trying to leave via the entrance. I am back there in early July with a group of would-be investors – a free report is coming – and will be using the metro this time.

Anyhow, I digress! According to the latest figures available from the National Institute of Statistics (INE), sales in Catalonia are up 43.4 per cent year-on-year and Barcelona makes up 65.7 per cent of those sales. Sales Director at explains, ‘After seven or eight years in the doldrums, life is being breathed back into the Spanish property market with affluent, attractive, accessible places such as Barcelona leading the way. Prices here are as low as they are ever going to be, throwing up some great investment opportunities in one of, if not the best, cities in the Mediterranean.’

‘Barcelona attracts around one quarter of all foreign investment into Spain, largely because of its warm climate and culture, wonderful combination of urban and coastal life, thriving fashion scene and striking architecture. It also helps that Barcelona is well connected to the rest of the continent via motorway and high-speed rail links, as well as boasting excellent flight connections to northern Europe via an airport that is just 15 minutes from the city centre. From luxury million euro plus loft living in El Born to rental apartments in Eixample, Barcelona has an investment and lifestyle opportunity to suit every strategy and wallet.’ Want to know more? Serious, would-be buyers should email for a report of my visit.

Grenada – One To Watch

The latest World Travel and Tourism Council (WTTC) report, in association with Oxford Economics, reports that ‘travel and tourism’ is the fastest-growing sector in the world and draws particular attention to Grenada in the Caribbean. ‘In Grenada, the predicted (travel and tourism) figures are up to a higher-than-average 4.5 per cent per year, representing a significant 55 per cent ten year growth. Grenada also continues to be forecast as the third fastest developing country in the Caribbean for tourism, behind St. Lucia and St. Kitts & Nevis. Grenada is expected to attract 120,000 international tourists in 2014, with this figure rising to 175,000 by 2024.’

‘The island of Grenada is definitely attracting an increasing amount of interest, from investors and the travel and tourism sector alike. In addition to its stunning, internationally acclaimed, beaches (including Grand Anse, Petite Anse, Morne Rouge Bay, La Sagesse and Gouyave Bay to name but a few), the Isle of Spice is fast becoming a hotspot for sporting events. Already well regarded as a world class sailing destination (Island Water World Grenada Sailing Week), Grenada has now been named host to the Caribbean Premier League opener for cricket. The Guyana Amazon Warriors and Antigua Hawksbills will contend the opening fixture of this year’s Caribbean Premier League at the National Cricket Stadium in Grenada on 11th July.’ Let us know if this interests you and you would like to know more.

More On Istanbul

Istanbul has achieved the fastest growth in passenger numbers of all its competitors in Europe according to the latest statistics released on London, Frankfurt, Amsterdam and Paris. As a result, Istanbul’s emerging status as a global air travel hub will provide a boost to Istanbul’s growing property market for years to come according to property investment consultants Universal21.

Adil Yaman, investment director of – do take a look – comments, ‘Now that the plans have been approved for the new airport, development to the west of the city will gather pace. Previously unfashionable districts of Istanbul will benefit hugely from growth in business and trade while the Black Sea coast will see increasing numbers of tourists. Transport links to the area where the third airport will be built are excellent and don’t suffer from the congestion found in central areas of Istanbul. This makes property in districts like Beylikdüzü even more attractive to investors.’ More to come

France & Spain News

Just been trawling our BMV databases for France and Spain – some cracking deals in them! If you are a serious, would-be buyer in either of these two countries, do drop us a line. We can probably arrange for known-to-be-serious investors to have a look through themselves. If not, we can – if you submit your specifics – offer a matching service.

We are now at work on the June PDFs – these should be out in about a fortnight. More on those soon!


Free Bike With A House

Every business needs to differentiate it’s offering from the competition, and one of the easiest ways can be via a free gift. Brazilian housing developer, Huma Klabin in Sao Paulo, is offering a free folding bicycle with every new apartment purchased in their new development. The development is close to a network of cycle paths and the company are also pushing their green credentials elsewhere in their marketing. So the bicycle is a good ‘fit’ with this.  This last point is important I think. The impact of a free gift is enhanced when there is a connection or synergy with other aspects of the offering.

So what could you give away which would enhance the appeal of your overall offer, and differentiate what you’re doing from your competitors. As Huma Klabin have found, it needn’t be expensive in relation to the product price, to create an impact.

Streetwise Property Alert 2nd June 2014

Welcome to the latest email of news and views – we’ll start with a stunning offer we’ve been waiting to put out for two years…

BMV, No-Money-Down BTL Deals

100 per cent finance options available on a buy to let!

Here is a great way to buy property!

This is one of more than 15 properties like this a month we can now source, package and offer to members!

We have a three-bedroom, semi-detached property in Lanark, Scotland for just £34,000. This property is currently valued at £50,000. That’s an INCREDIBLE 30 per cent + discount.

The property is in excellent condition and comprises: spacious lounge, modern integrated fitted kitchen, three double bedrooms and bathroom. Externally, there is a lawn garden to the front, driveway and garage to the side and large garden to the rear. This would make a great buy-to-let investment or family home.





To buy – using our unique system – you must have access to £5,000 – £7,500 for the front-end ‘enabling fee’ and have equity in a buy-to-let property or residential property. Please note there is also a broker and legal fees payable on completion of circa £1,000.

You will make most of these fees back in monthly cash flow in the FIRST 12 MONTHS as you will be collecting the full rent (£550 minus 10 per cent letting agent fee = £495) with no monthly loan/mortgage payment, that’s 12 x £495 = £5,940.

Our new system to buy property means you pay 0 per cent deposit and 0 per cent monthly interest on the money you borrow to buy the property. All you pay is a fee in month 12 that comes from the mortgage loan we will arrange for you.

At the front-end our business associates lend you the full £34,000 you require (via a charge on a property you own) and in 12 months’ time you remortgage the property you bought at 75 per cent LTV giving you a mortgage of £37,500.

After the Remortgage

Estimated Valuation £50,000

75 per cent LTV remortgage £37,500

Monthly interest £125 PCM

Monthly Rent £550

Letting Agent 10 per cent £55

Monthly NET cash flow of £370 PCM

You then pay back the £34,000 you borrowed plus a 5 per cent fee (£1,700).

You are then left with a NET Cash-back in your hand of £1,800.

If you decide to repay the initial loan after a 12 month period the repayment commission will be higher than the £1,700 and it will be based on how much your property has gone up in value. So it’s better to follow our suggestions and make the repayment within the first 12 months.

This opportunity to repay the loan in the first 12 months only works on our discounted properties so make sure you buy them while you can.

So, what are you waiting for? Don’t wait to buy property… Buy property then wait! Email back!

London Accreditation News

We note, in London, that Boris Johnson has launched the capital’s first ever rental standard, a city-wide badge of accreditation, ‘to help millions of Londoners rent with confidence and to give the city’s 300,000 landlords peace of mind that they are complying with the law and doing the right thing.’

The London Rental Standard brings together seven landlord accreditation schemes which will operate under a single framework. The badge will be awarded to all landlords and letting agents who meet a set of significant core commitments set by the mayor. These outline a minimum level of service that renters should expect including transparent fees, better property conditions, better communication between landlords and tenants, improved response times for repairs and maintenance, and protected deposits.’ The full London Rental Standard can be downloaded at: and

London – Still An Investors’ Hotspot

Strutt & Parker reports am increase in investors in London since 2012. As an example, more than 25 per cent of buyers in Chelsea are purchasing for investment compared with under 5 per cent back in 2012. ‘The rental landscape in prime central London is fast changing. Investors are no longer fixed on chasing high rental yields and are happy to invest for the capital growth alone. Consequently, investors
are incorporating larger family accommodation into their portfolios, resulting in more family houses coming to the market.’

‘With discerning, long-term renters now the norm, more and more landlords are comprehensively refurbishing their properties in order to attract the best tenants and this is also having an impact on pricing and the type of property most in demand. We are finding that there is no longer such as obsession with home ownership amongst our younger tenants. The majority of our tenants are in their 20s and 30s and very used to renting. Singles or couples in their 20s tend to favour one and two bedroom flats, whilst married or cohabiting couples in their thirties, sometimes with one baby, usually prefer three or four bedroom mid-size houses or large lateral apartments.’ Food for thought – and more to come as we are visiting again with investors next week.

All for today, but do hurry to reply if you want those BMV, no-money-down BTL deals – we will take the first 50 responses to form a group of would-be investors who will receive exclusive offers.