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Using Property To Strengthen Earnings After Divorce And Retirement

Sandy Buchanan is in situation that many people in the UK have found themselves in. Following divorce and retirement, he needed to find a way to increase capital and income and turned to property investment to achieve this.

In this week’s Success Story, we spoke to Sandy about his property project...

Sandy Buchanan

Renovation To Increase Capital And Income 

Sandy began by telling us about his background to property investment. “I was divorced recently, and I am retired, my income was reduced as I had to lose capital and income to my ex-spouse, and therefore needed a way to increase capital but mainly income.

“To increase income, I owned property jointly with my ex-wife and therefore got a Buy To Let mortgage to pay her divorce share and rented out the property in my sole name. With the remaining capital, I bought a property for renovation.

“The property was in poor condition and became a renovation project. This property is not for living in but will be serviced accommodation.”

Sandy Buchanan

Auction Access

Sandy continued, “The auction went very well the second time. I initially bid for the same property and was outbid and therefore thought I had lost out.

“The following month the property appeared at auction again as it had yet to meet the reserved price. On bidding again, I had the winning but still needed to meet the reserved price; I negotiated a middle ground and agreed on a figure which was accepted. The property was bought through my specially formed limited company, Sentinel Group Property Limited.

Financing The Venture

“The challenges were first I could not get a mortgage. Eventually, I got a five-year fixed deal (just as well as the rates have gone up since).

“We needed more cash for renovation, especially as the roof and the floor had to be completely removed and only the four walls were left, so I have been building a new house.

“To overcome this, I contacted a broker I knew (I used to be an Independent Financial Adviser), where I received a Bridging Loan in two stages. The first staged amount was received without any problem, but the second stage is late in forthcoming, although I have been promised the money this week through the private equity company.

“The renovation still needs to be completed as we have had some problems with the weather, but it should be completed early in 2023. Additionally, it seems to be more difficult.”

“To get a mortgage to release the equity for my next project, but I will not give in. There is a mortgage company out there and I will find it.”

Sandy Buchanan

What Can Touchstone Education

 Do For You?

If you want to follow in Sandy's footsteps and take those all important first steps on your property investment journey, download your complimentary copy of our founder Paul Smith's best-selling book, Wealth Through Property now.

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