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| Question 1 : |
How much can I borrow on a mortgage? |
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Typically for the U.K you can borrow 4 times your annual income. This means if you earn N5.55million naira per annum, this will be converted to pounds (5,550,000 ÷ 250 = £22,200) and then multiply by 4 = 88,800. This would be the loan from the bank excluding your equity contribution
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For the U.S.A & South Africa it is more flexible since you are contributing 30 – 50%. You are generally required to produce evidence of your income.
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| Question 2: |
What happens to my monthly mortgage payments when the house is empty?
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| Answer : |
You as the owner of the house will have to continue making payment. However we ensure that we get you houses in high occupancy areas, where you are able to have your properties occupied almost all year round.
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| Question 3: |
How do I guarantee the safety of my funds during the purchase period? |
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Apart from some clients who decide to pass their funds through us, all your money should be transferred directly to the solicitors acting on your behalf. All these solicitors practices are regulated by the Law Society in the U.K/South Africa and title companies in the U.S.A. They carry out all the searches and are liable for results.
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| Question 4: |
How do I receive my rental income? |
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We advise our clients to open bank accounts in countries where they invest and we actually assist those who don’t know how to go about it. Our management colleagues receive the rent, deduct 10% management fee and pass on the balance to your account. Periodic statements of account are sent to you for your records.
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| Question 5: |
When there are repairs on these houses, what do I do. |
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The managing agents will inform you and seek your approval before any work is done. If it is an emergency, you will be contacted as soon as the problem is arrested.
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| Question 6: |
What is a remortgage all about? |
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This means refinancing your property and cashing out your equity. As soon as your property appreciates, (since the bank can always lend you 70/80% loan to value) You ask the bank to lend you 70/80% of its new worth. An illustration is as follows:
2 bedroom house in Plumstead in December 2000
Property purchased for £80,000
(A) Loan - 64,000 80%
Equity - 16,000 20%
Value in 2005 = £130,000
(B) 80% of current value = £104,000
(B) 80% of current value minus (A) Outstanding loan 104,000 – 64,000 =£40,000.
This means the bank will lend you £40,000 despite the fact that you only invested £16,000 in 2000 and guess what……………………you still own the property.
Your monthly repayment however increases due to the additional loan.
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