How does Buy to Let END!

[marceau]

1 hour ago, spygirl said:

 

200k isnt a huge diollop of money.

Not to be sniffed at but it really isnt life changing.

I say that as my cousins got ~200k each when their Dad died. Ones given up work at 54, which is fuckign nuts.

Its what 14p UC mum will rawn down in 4y....

 

The 'fat Shaz' doley index probably isn't a bad unit of measure for household wealth. A single 'Shaz' unit being the national average benefit income of some fybromyalgic lardass with 2 SEN kids. What's that at the moment, 50k pre tax? DOSBODS average salary of 130k =  3.5 'Shaz'.

A lot of 'middle class' people would find out they weren't really middle class at all by that measure.

[sancho panza]

https://uk.finance.yahoo.com/news/british-landlords-face-cliff-edge-154633915.html

British landlords face a ‘cliff-edge’ of higher rates, warns IMF

British landlords are facing a “cliff-edge effect of higher interest rates”, according to the International Monetary Fund (IMF).

The United Nations agency suggested in its latest report on global financial stability that buy-to-let investors could leave the sector as they struggle to cover the cost of rising rates.

It said this was a risk because of the prevalence of “hybrid mortgage rates” in the UK, with households typically refixing every two or five years.

 

Borrowers in other countries such as the United States can fix for 30 years, which means they are better protected from interest rate shocks.

“Mortgage rates have risen globally, affecting loan originations, borrower repayment ability, and housing prices,” the IMF said.

“In countries with a prevalence of hybrid mortgage rates (fixed up to five years), such as the United Kingdom, demand from buy-to-let investors could experience the cliff-edge effect of higher interest rates over the medium term as fixed interest rate periods end,” the report added.Fears are growing that buy-to-let investors could drop out of the sector as they remortgage next year.

Over 1.5 million borrowers will come to the end of their deals in 2024, according to figures from trade body UK Finance – many of whom will see their monthly payments go up by hundreds of pounds.

Landlords have been forced to either sell property or raise rents in order to cope with the soaring costs.

Rents hit a record high in July to September, according to the property platform Rightmove, with average bills outside the capital now standing at £1,278 per month.

The IMF said that mortgage rates have risen across the globe. Households in Australia, Canada and New Zealand, where a large proportion of borrowers are on variable rate deals, are especially vulnerable to rising rates, leading to double-digit falls in house prices.

The IMF said that real house prices in advanced economies declined 8.4pc in the first quarter of 2023, compared to 2.4pc in emerging markets.

House prices in the UK have dropped for the sixth consecutive month in a row, data from Halifax showed on Monday, with the average price of a property now £278,601.

The IMF also has downgraded its UK growth forecast from 1pc to a mere 0.6pc in 2024 and expects UK inflation to remain the highest in the G7 next year.

Recommended

Mortgage crisis: how much more you will pay as rates remain high

[spygirl]

From TOS

Housing benefit freeze a ‘travesty’, landlords warn

https://propertyindustryeye.com/housing-benefit-freeze-a-travesty-landlords-warn/

The ongoing freeze on housing benefit rates is a “travesty” that needs reversing immediately, according to the National Residential Landlords Association (NRLA).

The remarks were made by the NRLA’s Policy Director Chris Norris at a Labour Party conference fringe event held in partnership with think tank DEMOS.

[spygirl]

8 hours ago, sancho panza said:

https://uk.finance.yahoo.com/news/british-landlords-face-cliff-edge-154633915.html

British landlords face a ‘cliff-edge’ of higher rates, warns IMF

British landlords are facing a “cliff-edge effect of higher interest rates”, according to the International Monetary Fund (IMF).

The United Nations agency suggested in its latest report on global financial stability that buy-to-let investors could leave the sector as they struggle to cover the cost of rising rates.

It said this was a risk because of the prevalence of “hybrid mortgage rates” in the UK, with households typically refixing every two or five years.

 

Borrowers in other countries such as the United States can fix for 30 years, which means they are better protected from interest rate shocks.

“Mortgage rates have risen globally, affecting loan originations, borrower repayment ability, and housing prices,” the IMF said.

“In countries with a prevalence of hybrid mortgage rates (fixed up to five years), such as the United Kingdom, demand from buy-to-let investors could experience the cliff-edge effect of higher interest rates over the medium term as fixed interest rate periods end,” the report added.Fears are growing that buy-to-let investors could drop out of the sector as they remortgage next year.

Over 1.5 million borrowers will come to the end of their deals in 2024, according to figures from trade body UK Finance – many of whom will see their monthly payments go up by hundreds of pounds.

Landlords have been forced to either sell property or raise rents in order to cope with the soaring costs.

Rents hit a record high in July to September, according to the property platform Rightmove, with average bills outside the capital now standing at £1,278 per month.

The IMF said that mortgage rates have risen across the globe. Households in Australia, Canada and New Zealand, where a large proportion of borrowers are on variable rate deals, are especially vulnerable to rising rates, leading to double-digit falls in house prices.

The IMF said that real house prices in advanced economies declined 8.4pc in the first quarter of 2023, compared to 2.4pc in emerging markets.

House prices in the UK have dropped for the sixth consecutive month in a row, data from Halifax showed on Monday, with the average price of a property now £278,601.

The IMF also has downgraded its UK growth forecast from 1pc to a mere 0.6pc in 2024 and expects UK inflation to remain the highest in the G7 next year.

Recommended

Mortgage crisis: how much more you will pay as rates remain high

They didnt say that.

Its was a general comment on mortgage finance.

Like everyone else,  the morons at the IMF could nto give a fuck if IO BTL go bust.

 

 

[spygirl]

23 minutes ago, spygirl said:

From TOS

Housing benefit freeze a ‘travesty’, landlords warn

https://propertyindustryeye.com/housing-benefit-freeze-a-travesty-landlords-warn/

The ongoing freeze on housing benefit rates is a “travesty” that needs reversing immediately, according to the National Residential Landlords Association (NRLA).

The remarks were made by the NRLA’s Policy Director Chris Norris at a Labour Party conference fringe event held in partnership with think tank DEMOS.

https://www.nrla.org.uk/news/our-spokespeople#:~:text=Chris Norris Policy Director&text=A private landlord and former,policy team in early 2007.

Chris NorrisPolicy Director

Chris Norris is responsible for policy and campaigns at the National Residential Landlords Association (NRLA), having held a similar role at the NLA prior to its recent merger.

A private landlord and former letting agent himself, Chris has represented landlords for more than a decade, joining the NLA’s policy team in early 2007.

Before discovering the fun that can be had focussing on the PRS, Chris held a number of inhouse and consultancy public affairs roles focussing on housing, health, and social care.

 

Experience

• 

  Director of Policy & Campaigns

  National Residential Landlords Association - NRLA

  Apr 2020 - Present3 years 7 months

  London, England, United Kingdom

• 

  National Landlords Association

  13 years 1 month

  • Director of Policy & Practice

    Mar 2018 - Apr 20202 years 2 months

    London, United Kingdom

  • Head of Policy, Public Affairs and Research

    Apr 2007 - Apr 202013 years 1 month

• 

  Parliamentary Officer

  National Childbirth Trust

  May 2006 - Apr 20071 year

• 

  DeHavilland Information Services

  2 years

  • Account Executive

    2004 - 20062 years

  • Account Executive

    2004 - 20062 years

• 

  Negotiator

  Alan Harvey Property Services

  2003 - 20041 year

Education

• 

  University of Essex

  BA (Hons)Politics and International Relations

As @DurhamBorn keeps mentning, the PRS is stuffed full of lefties and publci sector types.

It all needs burning.

And it will.

 

 

[spygirl]

 

Stress of renting ages you TWICE as quick as being unemployed, claim scientists

• Researchers used data on housing and DNA methylation from 1,420 people
• Those living in social housing however seemed to fare better scientists said

https://www.dailymail.co.uk/health/article-12617907/Stress-renting-ages-TWICE-quick-unemployed-claim-scientists.html

Experts said the impact of private renting on ageing is nearly double that of being out of work versus having paid employment.

The good news is that the process is reversible, they say, suggesting those who get onto the property ladder may undo any damage.

[spygirl]

There you ave it.

Private LL worse than smoking, maybe even worse than cancer.

They need taxing more, like smoking.

Replace 'smoking'with 'landlord'

 

[DurhamBorn]

37 minutes ago, spygirl said:

https://www.nrla.org.uk/news/our-spokespeople#:~:text=Chris Norris Policy Director&text=A private landlord and former,policy team in early 2007.

Chris NorrisPolicy Director

Chris Norris is responsible for policy and campaigns at the National Residential Landlords Association (NRLA), having held a similar role at the NLA prior to its recent merger.

A private landlord and former letting agent himself, Chris has represented landlords for more than a decade, joining the NLA’s policy team in early 2007.

Before discovering the fun that can be had focussing on the PRS, Chris held a number of inhouse and consultancy public affairs roles focussing on housing, health, and social care.

 

Experience

• 

  Director of Policy & Campaigns

  National Residential Landlords Association - NRLA

  Apr 2020 - Present3 years 7 months

  London, England, United Kingdom

• 

  National Landlords Association

  13 years 1 month

  • Director of Policy & Practice

    Mar 2018 - Apr 20202 years 2 months

    London, United Kingdom

  • Head of Policy, Public Affairs and Research

    Apr 2007 - Apr 202013 years 1 month

• 

  Parliamentary Officer

  National Childbirth Trust

  May 2006 - Apr 20071 year

• 

  DeHavilland Information Services

  2 years

  • Account Executive

    2004 - 20062 years

  • Account Executive

    2004 - 20062 years

• 

  Negotiator

  Alan Harvey Property Services

  2003 - 20041 year

Education

• 

  University of Essex

  BA (Hons)Politics and International Relations

As @DurhamBorn keeps mentning, the PRS is stuffed full of lefties and publci sector types.

It all needs burning.

And it will.

 

 

I think what i hate about it most is how it destroys towns.My home town has seen a massive influx of southern bennies and immigrants,and its 95% due to BTL.Without that they wouldnt be able to come here.The Local Housing Allowance needs freezing again and again as this will slowly turn the noose on bennie fed BTL.A big chunk of BTL near me though is public sector workers,police etc,buying a BTL with their 25% tax free lump sums,then renting to bennies,fleecing the taxpayer twice over.Given they are not leveraged they dont need rent increases.What would do for them would be mass social house building.

For the leveraged i suspect the next 3 years will be critical as rates double their costs,but rents lag way behind.

I sus

[spygirl]

1 hour ago, spygirl said:

 

Stress of renting ages you TWICE as quick as being unemployed, claim scientists

• Researchers used data on housing and DNA methylation from 1,420 people
• Those living in social housing however seemed to fare better scientists said

https://www.dailymail.co.uk/health/article-12617907/Stress-renting-ages-TWICE-quick-unemployed-claim-scientists.html

Experts said the impact of private renting on ageing is nearly double that of being out of work versus having paid employment.

The good news is that the process is reversible, they say, suggesting those who get onto the property ladder may undo any damage.

To be honest, this reads like an EAs PR dept.
 

https://jech.bmj.com/content/early/2023/08/17/jech-2023-220523

Its reads liek a load of wank, on weak data.

[spygirl]

On 11/10/2023 at 10:44, DurhamBorn said:

I think what i hate about it most is how it destroys towns.My home town has seen a massive influx of southern bennies and immigrants,and its 95% due to BTL.Without that they wouldnt be able to come here.The Local Housing Allowance needs freezing again and again as this will slowly turn the noose on bennie fed BTL.A big chunk of BTL near me though is public sector workers,police etc,buying a BTL with their 25% tax free lump sums,then renting to bennies,fleecing the taxpayer twice over.Given they are not leveraged they dont need rent increases.What would do for them would be mass social house building.

For the leveraged i suspect the next 3 years will be critical as rates double their costs,but rents lag way behind.

I sus

Just make any person lettign the HB have to offer life time tenancies, just like the council.

Sorted!

[Ash4781b]

This article is probably already on here as couple weeks old. I’ve heard daft things like this before from BTL.
 

ok it’s very specific question / answer but What it does highlight is BTL exit strategies. Now the tides gone out and many are going to be in a real pickle. 
 

“Should we add our children’s names to our buy-to-let mortgage?

Q My wife and I have a buy-to-let property. We would like to add on to this mortgage our children, who are 26 and 31 years of age. Is it possible? If not how can we transfer this property into their names without heavy fees or rather what would be the best way to transfer this property into their names?”

https://amp.theguardian.com/money/2023/oct/02/should-we-add-our-childrens-names-to-our-buy-to-let-mortgage

 

[Stuey]

3 hours ago, Ash4781b said:

This article is probably already on here as couple weeks old. I’ve heard daft things like this before from BTL.
 

ok it’s very specific question / answer but What it does highlight is BTL exit strategies. Now the tides gone out and many are going to be in a real pickle. 
 

“Should we add our children’s names to our buy-to-let mortgage?

Q My wife and I have a buy-to-let property. We would like to add on to this mortgage our children, who are 26 and 31 years of age. Is it possible? If not how can we transfer this property into their names without heavy fees or rather what would be the best way to transfer this property into their names?”

https://amp.theguardian.com/money/2023/oct/02/should-we-add-our-childrens-names-to-our-buy-to-let-mortgage

 

What would make someone even think of a thing like that? 

 

[spygirl]

7 hours ago, Ash4781b said:

This article is probably already on here as couple weeks old. I’ve heard daft things like this before from BTL.
 

ok it’s very specific question / answer but What it does highlight is BTL exit strategies. Now the tides gone out and many are going to be in a real pickle. 
 

“Should we add our children’s names to our buy-to-let mortgage?

Q My wife and I have a buy-to-let property. We would like to add on to this mortgage our children, who are 26 and 31 years of age. Is it possible? If not how can we transfer this property into their names without heavy fees or rather what would be the best way to transfer this property into their names?”

https://amp.theguardian.com/money/2023/oct/02/should-we-add-our-childrens-names-to-our-buy-to-let-mortgage

 

Back to my lefties n properdee ...

How in fuck can you answer this question?

Q My wife and I have a buy-to-let property. We would like to add on to this mortgage our children, who are 26 and 31 years of age. Is it possible? If not how can we transfer this property into their names without heavy fees or rather what would be the best way to transfer this property into their names?

This used to be our home and it’s where both our children grew up so the house is also of sentimental value to them. DN

How much mortgage?

Is it IO?

What are your motivations for doing this?

Its like these idiot CH4 'millionaire' rpgs where some properdee fuckwit hels some potless scratter leverage up on IO BTL.

Im watching to see who the likes of -

https://suite.endole.co.uk/insight/people/19222394-mr-steven-john-green?page=companies

pan out.

 

 

 

 

[Cold Cold Ground]

Caught up with someone in the pub last night who is trying to buy. Told me that there are loads of ex btl properties being sold but as over 60s only and these are on for half the price compared to if you are under 60. Just checked and he is right, the properties on right move say

• ONLY OVER 60s are eligible for the Home for Life from Homewise (incorporating a Lifetime Lease)

Seems crazy. I don’t really understand the implications of this.

 

[Cold Cold Ground]

Homewise helps those aged 60+ to secure their next property for less than the market value. This is through our Home for Life Plan, which is a Lifetime Lease option. By choosing a Lifetime Lease, our customers live in the property of their choice free from rent, mortgage or interest repayments for their lifetime, living happily and securely in their ideal home with an option to secure a guaranteed cash inheritance for loved ones too. Discover how we could help you; try our online calculator!

[Chewing Grass]

Probably goes something like this, you stump up say £60K for a £120K house, the house is not in your name, you are liable for all maintenance etc. You kick bucket or move out you get nothing back (especially if dead) and property owner sells the house and gets all his money plus appreciation.

So property owner gets £60K for doing now't other than put up with you until you die.

[Cold Cold Ground]

But what does the owner get out of it. Has homewise bought the property at current market value so landlord gets out, or are they forcing landlords to keep the property but this is an alternative to renting to working people. Where is the price discovery here?

[leonardratso]

The solution is to never die.

Or do like the japs do, just pretend that grandpa is still alive so you can get the pension still.

[Cold Cold Ground]

Or is this a way to get a lump sum to pay off the mortgage.

[Cold Cold Ground]

4 minutes ago, Cold Cold Ground said:

Or is this a way to get a lump sum to pay off the mortgage.

I think this may be it. It may not pay off the mortgage but could get it significantly down so payments are more manageable at current rates. You would go down this route if you can’t sell or are unable to reduce prices enough to sell. In which case this is quite a good indicator of the numbers of properties that are under financial stress. And in my area there are 400 being advertised this way out of 1600, so 25%.

[spygirl]

2 hours ago, Cold Cold Ground said:

Homewise helps those aged 60+ to secure their next property for less than the market value. This is through our Home for Life Plan, which is a Lifetime Lease option. By choosing a Lifetime Lease, our customers live in the property of their choice free from rent, mortgage or interest repayments for their lifetime, living happily and securely in their ideal home with an option to secure a guaranteed cash inheritance for loved ones too. Discover how we could help you; try our online calculator!

 

2 hours ago, Chewing Grass said:

Probably goes something like this, you stump up say £60K for a £120K house, the house is not in your name, you are liable for all maintenance etc. You kick bucket or move out you get nothing back (especially if dead) and property owner sells the house and gets all his money plus appreciation.

So property owner gets £60K for doing now't other than put up with you until you die.

Its probs like Retirement flats where theyve done away with actually building a OAP box and just take your money.

https://www.homewise.co.uk/moving-home-solutions/home-for-life-plan/lifetime-lease

A "Lifetime Lease" is a core legal document of the Home for Life Plan. It's a legally binding agreement which is registered at the Land Registry.

Through the Home for Life Plan, Homewise buys a property of your choice and you pay us a one-off sum to purchase a Lifetime Lease on it.

Whilst you will not own the property itself, you will be a “Lifetime Lease Owner”, which means it will be your home to enjoy, happily and securely, for your lifetime.

A Lifetime Lease protects you and provides the right for you to live in your chosen property, rent-free and mortgage-free until your Home for Life Plan ends. The security given to you by the Lifetime Lease will be fully confirmed to you by your independent solicitor.

Come to Scabby!

 

 

 

[leonardratso]

*Plan ends in 1 year, please do not live longer or you will be booted out.

[roundhouse]

7 hours ago, Cold Cold Ground said:

Caught up with someone in the pub last night who is trying to buy. Told me that there are loads of ex btl properties being sold but as over 60s only and these are on for half the price compared to if you are under 60. Just checked and he is right, the properties on right move say

• ONLY OVER 60s are eligible for the Home for Life from Homewise (incorporating a Lifetime Lease)

Seems crazy. I don’t really understand the implications of this.

 

There are loads in East Cornwall with Homewise (hw60+) but the houses are also listed at so-called market price with a high street agent. Seems only specific EAs buddy up with Homewise. I questioned an agent about it once and their answer was they like to give people the option, that they'd just sold one through that system. But looking later at LR sold prices it seems that most sell at the "market" price... oh I only just twigged, if Homewise are buying them then they will at "market" price and then take the lower lease price for now. 

I agree that many dual listed this way are ex-BTL new build estate houses, but also older individual larger/more expensive houses town and village are dual listed this way. Makes these older bigger ones look shifty (damp, leaking roofs, dodgy wiring) but they mightn't be. I'm really hesitant to view a dual listed house.

The dual listing distorts pricing, those agents using this system seem to have much higher prices for both, but I gleefully have noticed rapidly reducing!
 

 

[Cold Cold Ground]

I wasn’t sure if Homewise actually buy the properties. They seem to be more of an estate agent / mortgage agent type company. So I assumed the current owner keeps the property. Give it is an extended lease I am not clear why it would appear on rightmove as sold at all, but they can make up the valuation and just say they received x% of it. Tweaking the percentage to suit their valuation.

[spygirl]

https://www.homewise.co.uk/who-are-homewise/about-homewise

Homewise is a family-run business, started by Reg Neal in 1971. Reg and his wife Karen recognised that options were limited for people aged 60 and over and began helping people secure the perfect home for their retirement, providing affordable solutions for all.

Now, over 50 years later, Reg and Karen’s sons, Mark, Sean, and Justin, run the family business. Their family values remain the foundation of the company; our customers are at the heart of everything we do.

We’re committed to helping our customers find the perfect home for their future and, since 2007 alone, we’ve purchased over £308 million worth of property for our customers. We've helped them save £92 million from the market value, and enabled our customers to clear over £48 million in previous debts too!

Take a moment to watch our short video and get to know Homewise.