Anne Murray is planning to buy

Anne Murray is planning to buy a property, in addition to the family home she and Henry own, for rental purposes. She is considering a property in Swansea costing £215,000. She has savings of £75,000, which she will use as a deposit, but will need to borrow the remaining amount for the purchase. She requests that you research and find a suitable buy-to-let mortgage for her.

She also wants to know what income she might expect to get as a return on her investment. Local agents have estimated that the monthly rent may be £1,750 per month, with agent’s fees for managing the property being charged at 5% of the rent.

Work out for Anne an estimation of the relevant costs of renting the property and the net rental income that she might expect to get. Anne has estimates for some of the other costs she will incur as follows:

Repairs and maintenance per year

£800

Property insurance per year

£275

Surveyor’s fees

£650

Solicitors’ conveyancing fees

£4,300

Gardener

£780

Required:

a) Find a real buy-to-let mortgage for Anne and outline the details to her.

3 marks:

b) What tax relief is there on the mortgage payments that Anne will be making?

2 marks

c) Calculate the net annual income that Anne can expect from her rental property (ignoring capital costs).?Marks are awarded for using the recommended layout. 4 marks

d) Calculate the return on the income from her investment (ROI). 1 mark

e) Calculate the SDLT that Anne can expect to pay on this purchase.?

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Anne Murray is planning to buy

Anne Murray is planning to buy a property, in addition to the family home she and Henry own, for rental purposes. She is considering a property in Swansea costing £215,000. She has savings of £75,000, which she will use as a deposit, but will need to borrow the remaining amount for the purchase. She requests that you research and find a suitable buy-to-let mortgage for her.

She also wants to know what income she might expect to get as a return on her investment. Local agents have estimated that the monthly rent may be £1,750 per month, with agent’s fees for managing the property being charged at 5% of the rent.

Work out for Anne an estimation of the relevant costs of renting the property and the net rental income that she might expect to get. Anne has estimates for some of the other costs she will incur as follows:

Repairs and maintenance per year

£800

Property insurance per year

£275

Surveyor’s fees

£650

Solicitors’ conveyancing fees

£4,300

Gardener

£780

Required:

  1. Find a real buy-to-let mortgage for Anne and outline the details to her.

3 marks

  1. What tax relief is there on the mortgage payments that Anne will be making?

2 marks

  1. Calculate the net annual income that Anne can expect from her rental property (ignoring capital costs). Marks are awarded for using the recommended layout. 4 marks
  1. Calculate the return on the income from her investment (ROI). 1 mark
  1. Calculate the SDLT that Anne can expect to pay on this purchase. 2 marks

Total 12 marks

Question 6

  1. Rachel and Mike are married. They are both retired and Mike’s sister Donna is living with them as she is not well. Mike dies, but Donna now needs 24-hour care, so Rachel continues to care for her. Although Donna never married herself, she has a daughter Gina. Gina resents the fact that she did not know her father and is not in contact with her mother.
    Donna dies without leaving a will. Who will inherit? Why? 2 marks
  2. Harvey’s father recently died in a car accident and Harvey inherited his father’s estate. His parents had separated when he was small and, when his mother remarried, he was brought up by his paternal grandparents because his father travelled a lot for work. His grandparents have been like parents to him.
    If Harvey does not write a will, who will inherit his estate? 2 marks
  3. Louis and Edith both had unhappy marriages and are divorced. They are now living together, but do not want to marry for some time yet. Louis has three children, a boy and two girls, and Edith has two younger boys.
    Louis has discovered that he has terminal cancer, and he has not made a will. Who will inherit his estate under intestacy rules? Give your reasons. 2 marks

In (c) above, all five children live together in the family home, and Louis is the main breadwinner. If he dies without making a will, what remedies does Edith have for her and her children? Explain the remedy and the possible outcomes.

Place this order or similar order and get an amazing discount. USE Discount code “GET20” for 20% discount

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