Property crash, just maybe it really is different this time

[sleepwello'nights]

20 hours ago, Frank Hovis said:

Whenever the subject has come up I have suggested that there should be a charge for planning permission equivalent to 90% of the increase in value resulting from it.

Nobody has heard that suggestion before and they have difficulty processing it.

Its quite common for an uplift clause to be included in the sale of land and development properties.

[sleepwello'nights]

19 hours ago, Frank Hovis said:

And how is that going to end up with current levels of immigration?

Towns will keep growing with new housing estates until they merge into the surrounding expanding towns and you end up with the whole of SE England resembling an even bigger version of Bombay with houses to the horizon.

Funnily enough that issue wasn't touched on at all in the news about poor housing conditions!

They mentioned the housing association responsible for the poor maintenance of one of the properties featured had a list of 10,000 tenants waiting for a property.

The tenant and others they interviewed were predominantly non-white. Not that it has a bearing on they should be treated, but I also wonder about the ethnicity of those responsible for maintenance.

 

[spygirl]

4 minutes ago, sleepwello'nights said:

Funnily enough that issue wasn't touched on at all in the news about poor housing conditions!

They mentioned the housing association responsible for the poor maintenance of one of the properties featured had a list of 10,000 tenants waiting for a property.

The tenant and others they interviewed were predominantly non-white. Not that it has a bearing on they should be treated, but I also wonder about the ethnicity of those responsible for maintenance.

 

Colour should not not matter.

Citizenship status should.

Theres 15m-20m extra residents of the UK since ~2000, mainly low paid migrants.

75% need kicking out.

Housing solved.

UK has a migration crisis not a housing one.

 

 

[Frank Hovis]

11 minutes ago, sleepwello'nights said:

Its quite common for an uplift clause to be included in the sale of land and development properties.

Yes, although this has been successfully challenged in the courts over the last few years as sellers have been trying to have their cake and eat it by pricing to include development potential and then adding a development clause.

Courts say that you can't have both and have been setting aside the development clause so that valuation now usually includes development potential.

I was though more seeing it as a massive earner for councils in granting planning permission they would also be explicitly selling it.

[sleepwello'nights]

2 minutes ago, Frank Hovis said:

 

I was though more seeing it as a massive earner for councils in granting planning permission they would also be explicitly selling it.

Where we now live the developer paid the local authority pretty much  £500k instead of providing social housing. 

And we're still waiting for our Council Tax banding and bill!

[Frank Hovis]

2 minutes ago, sleepwello'nights said:

Where we now live the developer paid the local authority pretty much  £500k instead of providing social housing. 

And we're still waiting for our Council Tax banding and bill!

Don't worry - it will come 

[spygirl]

https://www.mumsnet.com/Talk/am_i_being_unreasonable/4218985-unfair-house-valuation-wwyd

We have bought a 4 bed property less than 2 years ago in Teddington for 550k. It was in a very bad state, but since then we insulated the house from outside, insulated the attic, changed roof over extension, rewired, changed Lino flooring into oak wood and porcelain tiles, new bathrooms, new kitchen, replastered walls and ceilings and put a beautiful bifold doors to patio.. according to property price index, the value of property went up to 588k (did not take into account any work we did), but in the meantime we had 3 estate agent valuations between 680k to 735k (this one last week).
As we are planning to remortgage soon, we requested property valuation from our current mortgage providers, for which we were charged over £500, and we estimated the property value at 700k based on previous valuations. They sent a 20-sth year old girl who obviously was very inexperienced (she asked whether the house was built in 1998, when it is built in 70s and previous surveyor even gave us an exact year based on the specific way it was constructed). I can add that the house is in Teddington 5 minutes from Thames and bushy park, so definitely not an area that decreased in value recently. We got valuation updated today to 580k!! Less than what property price index would suggest!!! And after all the extensive renovations we did.
I called the bank and asked whether they can request a reasoning behind going that low, especially that the house next door is on the market for over 700k, but they refused to do anything or provide any details behind this valuation.
AIBU thinking that since I paid £500 for this valuation, I should have a document showing the reasoning behind it?
What do I do now? Can I put a complaint? I think it is just a blatant incompetence OR bank trying to get more expensive mortgage out of me. Anybody can advice ? Mumsnetters, please help, I am just gobsmacked!

[spygirl]

Why not insist one of the EAs buy the house from you at their valuation?

Get them to put their balls where their mouth is.

Look at the posters turn on on the young girl surveyor because she downvalued the house.

So much for sisterhood.

Id guess the valuations method is relatively solid.

Id also guess its far behind whats currently happening - large falls in London

 

[The Idiocrat]

^ I know that area well. The EA valuations are probably about right at the moment - the market has gone nuts with people moving out of central London and there’s very little stock. In fact as a 4 bed I’m surprised it’s not higher.

[sleepwello'nights]

6 hours ago, Frank Hovis said:

Don't worry - it will come 

Perhaps the census form will turn up as well. No sign of it so far 

[sleepwello'nights]

1 hour ago, spygirl said:

Why not insist one of the EAs buy the house from you at their valuation?

Get them to put their balls where their mouth is.

Look at the posters turn on on the young girl surveyor because she downvalued the house.

So much for sisterhood.

Id guess the valuations method is relatively solid.

Id also guess its far behind whats currently happening - large falls in London

 

We couldn't get the Chartered Surveyors to down grade the valuation they prepared for IHT purposes on my mother's house. Bastards.  The house next door had had a fair bit of work done to it but they still valued my mother's house based at that. 

There's no science, skill or art to their valuations. Its nothing more than looking at the price similar properties have sold for recently. 

We ditched their valuation and the Valuation Agency accepted our more realistic valuation anyway.

Edited April 14, 2021 by sleepwello'nights

[spygirl]

Consumed by constant money worries': Mortgage prisoners tell of high interest rate woes ahead of debate on landmark law change

https://www.thisismoney.co.uk/money/mortgageshome/article-9452947/Mortgage-prisoners-homeowners-paying-9-interest.html

They describe being sold interest-only or low-deposit mortgages in good faith before the financial crisis, usually with lenders like Northern Rock who were subsequently nationalised. 

And theyve still got IO mortgages.

 

 

Sam Patel, 46, is from West London and works in business development for a start-up. He took out an interest-only loan with a lender that later stopped providing new mortgages, and has paid 5.25 per cent interest for more than a decade.

On the advice of an independent financial adviser, I took out an interest-only non-status mortgage for £735,000 in 2002, on a rate of 2.5 per cent.

But after the financial crisis, the lender I was with pulled out of the mortgage market, and when my initial term ended I was put on to a standard variable rate of 5.25 per cent. I paid that rate for 12 years until it was reduced to 4.7 per cent temporarily due to Covid.

It's been a huge struggle to keep up with the interest payments, which are £3,000 every month. Being on the SVR takes over your life, and this has caused me to have mental health problems.

 

Let me just repeat that- a 28yo took out a 725k liar loan, io only.

[spygirl]

I have now have six years left, and I sometimes can't sleep at night because I worry about how I am I going to pay this mortgage off. The thought is becoming more and more scary. The only option might be to sell it and downsize.

[spygirl]

We pay over the odds for our mortgage - currently around 4.5 per cent.

I have always worked, and was a theatre nurse for the NHS until I was diagnosed with stage 4 breast cancer and had to stop working due to my diagnosis and prognosis. 

My husband worked in IT and was a 40 per cent tax payer, but he has been made redundant during the pandemic.

Unfortunately, we now have to rely on universal credit as an income which is difficult. We have five years left on our mortgage with around £50,000 left to pay, and our monthly payments are around the £900 mark.

We have been in touch with the company that now owns our mortgage to try and get a better deal, but they have informed us that they do not provide mortgages any more - and other lenders won't take us on because of our financial position.

All we want is for our interest rate to be reduced to the same level as other mortgages on the market, some of which are as low as 1.2 per cent. 

 

Lowest is about 1.6% with 40% down.

4.5 us below most SVRs.

Dropping to 2% would not save them much money.

I'm nit sure why they cant remortgage. She foesnt make sense.

Ah yes, neither are working.

[UmBongo]

I check Rightmove yesterday for my search area and there is a lot more inventory now.

[sancho panza]

11 hours ago, spygirl said:

Consumed by constant money worries': Mortgage prisoners tell of high interest rate woes ahead of debate on landmark law change

https://www.thisismoney.co.uk/money/mortgageshome/article-9452947/Mortgage-prisoners-homeowners-paying-9-interest.html

They describe being sold interest-only or low-deposit mortgages in good faith before the financial crisis, usually with lenders like Northern Rock who were subsequently nationalised. 

And theyve still got IO mortgages.

 

 

Sam Patel, 46, is from West London and works in business development for a start-up. He took out an interest-only loan with a lender that later stopped providing new mortgages, and has paid 5.25 per cent interest for more than a decade.

On the advice of an independent financial adviser, I took out an interest-only non-status mortgage for £735,000 in 2002, on a rate of 2.5 per cent.

But after the financial crisis, the lender I was with pulled out of the mortgage market, and when my initial term ended I was put on to a standard variable rate of 5.25 per cent. I paid that rate for 12 years until it was reduced to 4.7 per cent temporarily due to Covid.

It's been a huge struggle to keep up with the interest payments, which are £3,000 every month. Being on the SVR takes over your life, and this has caused me to have mental health problems.

 

Let me just repeat that- a 28yo took out a 725k liar loan, io only.

theyve had plenty of time to get out.I really can't understand these people.

[Hardhat]

Paywall on this but might be interesting if anyone has a login

 

https://www.thetimes.co.uk/article/why-i-regret-using-help-to-buy-to-get-on-the-property-ladder-tt2z2hnjt

[Micky Roberts]

6 hours ago, Hardhat said:

Paywall on this but might be interesting if anyone has a login

 

https://www.thetimes.co.uk/article/why-i-regret-using-help-to-buy-to-get-on-the-property-ladder-tt2z2hnjt

Webpage archive

Paste the URL and search the archive to bypass paywall

[stop_the_craziness]

15 hours ago, Micky Roberts said:

Webpage archive

Paste the URL and search the archive to bypass paywall

Top tip.

Although reading the article was a depressing experience.  I find it hard to feel sorry for someone who was crazy enough to pay £490,000 for a one-bed flat in the first place and I'm sure they would have been all smuggy superior when they did it, but wow the whole HTB thing really is an utter, utter scandal.

[Green Devil]

48 minutes ago, stop_the_craziness said:

Top tip.

Although reading the article was a depressing experience.  I find it hard to feel sorry for someone who was crazy enough to pay £490,000 for a one-bed flat in the first place and I'm sure they would have been all smuggy superior when they did it, but wow the whole HTB thing really is an utter, utter scandal.

And as if it rub it in -  an advert for the "Best Places to Live in Britain" pops up, and a flat in Clapham is nowhere to be seen.

Edited April 19, 2021 by Green Devil

[spygirl]

2 hours ago, stop_the_craziness said:

Top tip.

Although reading the article was a depressing experience.  I find it hard to feel sorry for someone who was crazy enough to pay £490,000 for a one-bed flat in the first place and I'm sure they would have been all smuggy superior when they did it, but wow the whole HTB thing really is an utter, utter scandal.

Ben Thomas* worries that his two-bedroom flat in a former office block in St Albans, Hertfordshire, won’t be worth the £430,000 he paid for it 18 months ago because the service lift still hasn’t been replaced and the roof terrace has yet to materialise.

 

Thomas, 28, used a 20 per cent equity loan to buy a home with his girlfriend. They split after six months and, a year later, he is still waiting for the mortgage deed to be changed into his name after he bought her out of her share

[Wight Flight]

Apparently the biggest barrier to buying a house is getting the 10% deposit, so Sunak has fixed this.

He is wrong, and has listened to too many focus groups.

If you want to buy an average £300k shithole, and don't have a £30k deposit ( how many do?) Then of course you think that is your biggest problem.

If you finally save up £30k, you then need to get a £270k mortgage. So need a salary of £68k.

And if you had that kind of salary, saving £30k wouldn't be that hard. The whole media stuff today was an attempt to explain why the young were struggling to buy houses by covering every aspect apart from the blatantly obvious - prices are just too fucking high.

[Wight Flight]

To continue to show how little they think of our ability do do basic maths.

If, last year, I wanted to buy a £300k house, and the max mortgage I could raise was £270k, but I only had a £20k deposit, saving another £10k and I was good to go with a 10% down payment.

I have saved that £10k. However, prices have risen 7%, so the house is £321k.

The good news is that I now have a £30k deposit, and now only need £16k, so in theory all is good.

Except I can still only get a £270k mortgage, so actually need a £51k deposit. 

It just doesn't add up.

 

 

[Hancock]

43 minutes ago, Wight Flight said:

To continue to show how little they think of our ability do do basic maths.

If, last year, I wanted to buy a £300k house, and the max mortgage I could raise was £270k, but I only had a £20k deposit, saving another £10k and I was good to go with a 10% down payment.

I have saved that £10k. However, prices have risen 7%, so the house is £321k.

The good news is that I now have a £30k deposit, and now only need £16k, so in theory all is good.

Except I can still only get a £270k mortgage, so actually need a £51k deposit. 

It just doesn't add up.

 

 

Only 5 months to wait until the SDLT holiday extension fully ends, can see property struggling to sell from July onwards.

Boris and Sunak really did lie when they said they were going to be levelling up the economy. Pair of socialist cunts.

[Hancock]

54 minutes ago, Wight Flight said:

To continue to show how little they think of our ability do do basic maths.

If, last year, I wanted to buy a £300k house, and the max mortgage I could raise was £270k, but I only had a £20k deposit, saving another £10k and I was good to go with a 10% down payment.

I have saved that £10k. However, prices have risen 7%, so the house is £321k.

The good news is that I now have a £30k deposit, and now only need £16k, so in theory all is good.

Except I can still only get a £270k mortgage, so actually need a £51k deposit. 

It just doesn't add up.

 

 

Doesnt the latest Tory scam to rig house price assist you in anyway? i.e state backed 95% mortgages.