How does Buy to Let END!

[The Idiocrat]

2 hours ago, reformed nice guy said:

I think it is wrong but what a strange world we live in.

By this I mean that things like OnlyFans or even straight up prostitution is being actively promoted by the media, yet as soon as the transaction is offered for accommodation rather than hard cash then it is suddenly immoral?

They need to decide whether sex work is wrong or "liberating". Its currently a paradox. Call it Schroginers minge

According to my friend , Seeking.com literally has lots of young women offering sex in exchange for paying their rent. But of course those women are empowered!

[eek]

13 minutes ago, The Idiocrat said:

According to my friend , Seeking.com literally has lots of young women offering sex in exchange for paying their rent. But of course those women are empowered!

I'm sure they do - but it's one thing for people to offer it, another thing entirely to insist on it.

[Andersen]

Seriously WTF !  https://www.walesonline.co.uk/news/uk-news/man-who-chopped-up-landlord-19560151

[Option5]

53 minutes ago, Andersen said:

Seriously WTF !  https://www.walesonline.co.uk/news/uk-news/man-who-chopped-up-landlord-19560151

Die To Let?

Does that count as a void?

[Frank Hovis]

That looks the culmination of a campaign of persecution.

I doubt he paid any rent.

 

Mr Joyce told the jury how Walsh was jailed for six months in 2009 for stealing £5,000 from Mr Snell and in 2014 he was convicted of assaulting the same victim by punching him twice to the head.

[spygirl]

Bit by bit.

https://www.thetimes.co.uk/article/expat-landlords-the-new-brexit-mortgage-prisoners-dvkwdmplt

Slowly but surely the number of lenders and money theyll lend to non resi gets smaller n smaller.

 

[spygirl]

Platform is withdrawing its entire buy-to-let (BTL) range of mortgages, along with several high loan to value (LTV) residential products.

https://www.mortgagesolutions.co.uk/news/2021/01/08/platform-pulls-buy-to-let-range-and-several-high-ltv-mortgage-deals/

Dont. Want. The. Business.

[spygirl]

Not btl but to show mortgage lending is very risk off

https://www.mortgagesolutions.co.uk/news/2021/01/08/santander-restricts-self-employed-mortgages-to-60-per-cent-ltv/

Banks. Dont. Want. Any. More. Risk.

60% Ltv, resi. No problems.

Btl? Fuck off.

 

[Andersen]

Join the dots ... and watch for reposessed ex-btl properties coming up for sale?

Recent rental arrears stats, lots of folk in arrears - many for significant sums https://www.msn.com/en-gb/money/other/tenant-turmoil-around-840-000-renters-are-in-arrears-with-landlords-report-claims-and-one-in-five-have-debts-of-more-than-1-000/ar-BB1cpHoa?li=AAwnS0s

UK.Gov relaxes rules on evictions, "Because Covid" is no longer a valid exemption  https://www.msn.com/en-gb/news/uknews/government-sneaks-cruel-new-loophole-into-eviction-ban/ar-BB1cBEDV?li=BBoPRmx 

[spygirl]

1 minute ago, Andersen said:

Join the dots ... and watch for reposessed ex-btl properties coming up for sale?

Recent rental arrears stats, lots of folk in arrears - many for significant sums https://www.msn.com/en-gb/money/other/tenant-turmoil-around-840-000-renters-are-in-arrears-with-landlords-report-claims-and-one-in-five-have-debts-of-more-than-1-000/ar-BB1cpHoa?li=AAwnS0s

UK.Gov relaxes rules on evictions, "Because Covid" is no longer a valid exemption  https://www.msn.com/en-gb/news/uknews/government-sneaks-cruel-new-loophole-into-eviction-ban/ar-BB1cBEDV?li=BBoPRmx 

There are a *lot* of IO  BTLer LLs, new to the 'industry' since ~2002.

However , ~70% will have limited exposure - 1 or 2 propderdees.

They losses on these can be easily be absorbed by the LL personal assets  - houses pension savings.

These losses are being kept v quiet - Only an idiot could lose with properdee ...

'Well, we had problems with the tenants.. it was taking up more of our time .... we want to take it easy ....'

No mention of the loss they are taking. Or the tax bill ..

After these, you have the remaining ~30% who are beyond fucking nuts deep in propertee 5+, sometimes that + is a big fucking plus.

Think fat fuck Fergus 'Im selling them'

~7 years ago

https://www.theguardian.com/money/2014/jul/07/britains-biggest-buy-to-let-landlords-sell-entire-portfolio

He still 'selling' them.

Hes not though. The bank/mortgage holder is letting them go slowly.

The fat cunt is being kept on the hook to op up the losses at the end.

Was that quote really only 7 years ago ...

The Wilsons met with widespread condemnation earlier this year when it was revealed they had sent eviction notices to 200 tenants on housing benefit, saying they preferred eastern European migrants who default much less frequently than single mums on welfare. They first shot to prominence in 2006 when it was revealed that they had built up Britain's biggest buy-to-let empire, sometimes snapping up a property every day in the early part of the decade.

I dont think theres more than a handful  EE whos bothering to pay their rent at the mo.

 

 

 

 

 

 

[spygirl]

https://www.dailymail.co.uk/news/article-9133547/Mother-two-Nicola-Oberman-wins-fight-big-slice-8m-property-empire-tycoon-ex.html

The couple split in 2015 and, despite agreeing that they shared many of the properties in the portfolio, ended up in court in a fight over those held in Mr Collins' name.

Mr Collins had accepted that properties held in both of their names were held jointly, and that as a shareholder she had a right to a share of others held in the name of the company.

However, he insisted that she had no rightful claim to 12 properties - mostly on the Thames riverside in London - which had been bought and had only his name on the deeds.

But ruling against him, Judge Leech said he was convinced that all of the properties - whether in both names, the name of the company, or Mr Collins' alone - were part of the business.

Mrs Oberman understood from what Mr Collins had told her that the entire portfolio, including those in his name, were held for them jointly and so were to be equally shared.

Acting on that belief, she had allowed him to control the properties, while herself working on them and allowing herself to become subject to financial liabilities based on them.

Judge Leech rejected Mr Collins' claim that he had only transferred a 47 per cent stake in the property business, Bluegen Ltd, to Mrs Oberman out of 'love and affection' rather than because she was entitled to it as a partner in a joint venture.

'It was inconsistent with his letters from prison and his description of Mrs Oberman as his business partner,' said the judge. 

 

https://suite.endole.co.uk/insight/company/03249978-bluegen-limited?page=overview

I'd hope the equity of the property held by him individually is better than the ones in the LtdCo.

https://suite.endole.co.uk/insight/company/03249978-bluegen-limited?page=overview

https://find-and-update.company-information.service.gov.uk/company/03249978/charges

[Andersen]

From the article: Penalties of £472,000 for HMO landlord. Norwich imposes penalties of £236,000 on HMO landlord plus penalties of £236,000 on his company ... for failure to comply with improvement notices for lack of electrical certificates, fire safety improvements, and a lack of bins.

https://nearlylegal.co.uk/2021/01/lost-on-civil-penalties-sutton-v-norwich-in-the-court-of-appeal/?utm_source=mailpoet&utm_medium=email&utm_campaign=new-on-nearly-legal-newsletter-total-new-posts_1

I'm guessing a £500k dent in their expected profit might make the LL reconsider their future plans 

[spygirl]

https://www.dailymail.co.uk/news/article-6260603/British-millionaire-Turkish-princess-wife-revealed-landlords-squalid-flats.html

[spygirl]

Residential rents plummet in major UK cities

Shifting demographics, working patterns and the changing financial status of many residents hits prices

https://www.ft.com/content/2d81120b-da42-4e3e-a165-8fc20f415cbd

Rents are falling fast in major cities across the UK as a result of coronavirus, which has caused demand for properties from overseas workers, students, tourists and corporate travellers to plummet. 

The falls are most pronounced in London, the city in the UK most exposed to the demand shock unleashed by the pandemic.

But rents in Manchester, Birmingham, Edinburgh, Leeds and Reading have also tumbled in recent months, and are unlikely to rebound quickly, according to data from property portal Zoopla.

In the 12 months to October, average rents in London fell 6.9 per cent; in Birmingham they slipped 3.2 per cent; in Reading 2.2 per cent and in Edinburgh 1.7 per cent. All cities in the analysis fell below their surrounding region, reflecting weak demand for accommodation closer to town centres.

LL only reduce rents when a place has been empty for several months.

The reduction in rents just does not fully cover whats going on.

LL operating on sub 5% only can  afford ~2 weeks void before they are taking a cash loss.

A 3 months void @ 4% yield - nuts, buts thats what a lot of BTL LL are operating on  - means about 5 years 'profit' gone.

LL will fail to let and default.

Banks BTL books non performing rises, so the banks will lend less at a much higher IR.

Economically, we are nowhere near the pain. That happens mid 2012.

[Andersen]

The latest "kick the can down the road" scheme will give breathing space to tennants who want / need a break from their debt https://www.nrla.org.uk/news-breathing-spaces-new-rules-will-give-tenants-break-from-debt 

Summary: the new scheme will ban banks and landlords from chasing tenants for unpaid debts, the standard arrangement will last for up to 60 days.

[spygirl]

24 minutes ago, Andersen said:

The latest "kick the can down the road" scheme will give breathing space to tennants who want / need a break from their debt https://www.nrla.org.uk/news-breathing-spaces-new-rules-will-give-tenants-break-from-debt 

Summary: the new scheme will ban banks and landlords from chasing tenants for unpaid debts, the standard arrangement will last for up to 60 days.

The idiots at Arla spent a lit of time emphasising that the AST contract allowed a quick, uncomplicated eviction, so the bank could gets its money.

The more hurdles and legal process, the less likely banks are likely to lend to BTL.

I stand by claim on TOS 15 years ago - retail banks should never have got into IO BTL.

The fact that ex and current building societies were/are the biggest players in IO  BTL is beyond nuts.

[Noallegiance]

58 minutes ago, Andersen said:

The latest "kick the can down the road" scheme will give breathing space to tennants who want / need a break from their debt https://www.nrla.org.uk/news-breathing-spaces-new-rules-will-give-tenants-break-from-debt 

Summary: the new scheme will ban banks and landlords from chasing tenants for unpaid debts, the standard arrangement will last for up to 60 days.

I would not want to be a landlord through the next decade. Mental health breathing space ends 30 days after cessation of treatment? How long is a piece of string? 

[spygirl]

15 hours ago, spygirl said:

Residential rents plummet in major UK cities

Shifting demographics, working patterns and the changing financial status of many residents hits prices

https://www.ft.com/content/2d81120b-da42-4e3e-a165-8fc20f415cbd

Rents are falling fast in major cities across the UK as a result of coronavirus, which has caused demand for properties from overseas workers, students, tourists and corporate travellers to plummet. 

The falls are most pronounced in London, the city in the UK most exposed to the demand shock unleashed by the pandemic.

But rents in Manchester, Birmingham, Edinburgh, Leeds and Reading have also tumbled in recent months, and are unlikely to rebound quickly, according to data from property portal Zoopla.

In the 12 months to October, average rents in London fell 6.9 per cent; in Birmingham they slipped 3.2 per cent; in Reading 2.2 per cent and in Edinburgh 1.7 per cent. All cities in the analysis fell below their surrounding region, reflecting weak demand for accommodation closer to town centres.

LL only reduce rents when a place has been empty for several months.

The reduction in rents just does not fully cover whats going on.

LL operating on sub 5% only can  afford ~2 weeks void before they are taking a cash loss.

A 3 months void @ 4% yield - nuts, buts thats what a lot of BTL LL are operating on  - means about 5 years 'profit' gone.

LL will fail to let and default.

Banks BTL books non performing rises, so the banks will lend less at a much higher IR.

Economically, we are nowhere near the pain. That happens mid 2012.

A further factor is job loss, which has triggered a mass exodus of overseas workers, who have an outsized role in the coronavirus-ravaged hospitality industry. According to a statistical analysis by the government-funded Economic Statistics Centre of Excellence (ESCoE), 1.3m people born abroad left the UK between the third quarter of 2019 and the same period in 2020.

 

London/Se is the only area with a lot of IO BTL that has seen prices icnrease - mainly down to being ground zero for IO lending, both resi + BTL.

AFAICT - and I dont track London  much - London prices have been falling for ~5 years.

The overseas workers will be the single, non benefit dependent ones.

Hopefully, UKGOV will swing the axe on all those 'Spanish' south American cleaners with kids, gorging on TCs and various shitholers who now make up ~50% of London resi pop.

 

 

[eek]

On 16/01/2021 at 20:21, Noallegiance said:

I would not want to be a landlord through the next decade. Mental health breathing space ends 30 days after cessation of treatment? How long is a piece of string? 

How would a landlord know treatment has ceased - they would have no way of finding out.

[Noallegiance]

15 minutes ago, eek said:

How would a landlord know treatment has ceased - they would have no way of finding out.

I'm expecting that it would be a process controlled and monitored by the state. They're the best at that stuff, of course!

But, given the right type of character one could pretend to be mental if it meant one didn't have to pay for a roof over my head.

[spygirl]

37 minutes ago, Noallegiance said:

I'm expecting that it would be a process controlled and monitored by the state. They're the best at that stuff, of course!

But, given the right type of character one could pretend to be mental if it meant one didn't have to pay for a roof over my head.

Any IO BTLer idiot enough to take on social/DSS tenants deserves all the shit they get.

The murky areas is going to be previously working tenants going onto bennies.

 

 

[spygirl]

'My mortgage has risen 40pc': landlords hit as banks reevaluate city homes

Falling rents and shift from city centre living means London property valuers are spooked

https://www.telegraph.co.uk/property/uk/mortgage-has-risen-40pc-landlords-hit-banks-reevaluate-city/amp/

[Option5]

Surely all the 4%, 5% margins didn't matter much to BTL landlords before now compared to the massive gains the were making on house price growth.

It's when the selling prices collapse that the shit hits the fan. Especially if there are no buyers anyway.

So anytime now we should start seeing the casualties......

[Castlevania]

The ONS announced yesterday that London house prices hit a record high. Which surprised me to be honest, I thought London was falling?

1 hour ago, Option5 said:

Surely all the 4%, 5% margins didn't matter much to BTL landlords before now compared to the massive gains the were making on house price growth.

It's when the selling prices collapse that the shit hits the fan. Especially if there are no buyers anyway.

So anytime now we should start seeing the casualties......

 

[spygirl]

13 hours ago, Castlevania said:

The ONS announced yesterday that London house prices hit a record high. Which surprised me to be honest, I thought London was falling?

 

A combination of small number  of high value transaction and fibbing.