How does Buy to Let END!

[sancho panza]

2 hours ago, Frank Hovis said:

I know that this is the orthodox view here but surely this apparently sensible approach is rooted within the financial policies of the Bank of England up to 2008.

Since then the rules have changed and interest rates and inflation have been decoupled.

Add to that the vast amount of debt that the government has taken on since March and now wants to erode and you are into a situation where taking on a lot of debt in order to acquire a tangible asset looks like a sensible play.

That asset doesn't need to be a house but for anyone who doesn't own one it brings its own effective income stream of no longer requiring to pay rent.

There are many other factors, not least that you massively increase your risk by grossing up your assets and liabilities by buying a house and taking on a mortgage, but what would have been the sensible strategy to 2008 has not been the best since then.

The world is how it is rather than how it ought to be or how we would like it to be.

To be fair ,inflation has been grossly undermeasured for a long time.

[TheCountOfNowhere]

From TOS

 

https://www.thetimes.co.uk/article/tougher-rules-for-buy-to-let-landlords-ddx9kvcxq?wgu=270525_54264_15929331957754_cca7534e52&wgexpiry=1600709195&utm_source=planit&utm_medium=affiliate&utm_content=22278

 

Tougher rules for buy-to-let landlords

 

Barclays is to stop giving mortgages to buy-to-let landlords who buy property through their own limited company.

 

 

 

 

Edited June 23, 2020 by TheCountOfNowhere

[TheCountOfNowhere]

https://youtu.be/L49VXZwfup8

Edited June 23, 2020 by TheCountOfNowhere

[Wight Flight]

There is enough in here to be worthy of a thread of its own.

https://www.property118.com/facts-and-figures-for-londons-btl-market/

Particularly like the heading 'rent earned' in the table.

[Castlevania]

1 hour ago, Wight Flight said:

There is enough in here to be worthy of a thread of its own.

https://www.property118.com/facts-and-figures-for-londons-btl-market/

Particularly like the heading 'rent earned' in the table.

Only 28% of landlords had rent arrears!

There is another huge benefit when investing in a London buy-to-let. In the last year, just 28% of landlords in inner London saw their tenants fall into rental arrears, the lowest of all regions. 

[Wight Flight]

26 minutes ago, Castlevania said:

Only 28% of landlords had rent arrears!

 

Yep. 45% elsewhere.

I wonder if that is factored in to the yield calculation?

[Long time lurking]

On 23/06/2020 at 18:28, TheCountOfNowhere said:

From TOS

 

https://www.thetimes.co.uk/article/tougher-rules-for-buy-to-let-landlords-ddx9kvcxq?wgu=270525_54264_15929331957754_cca7534e52&wgexpiry=1600709195&utm_source=planit&utm_medium=affiliate&utm_content=22278

 

Tougher rules for buy-to-let landlords

 

Barclays is to stop giving mortgages to buy-to-let landlords who buy property through their own limited company.

 

 

 

 

That is significant if others follow suit regarding S24

[Ash4781b]

I’ve not checked in since from memory landlords got a Mortgage payment holiday but tenants had to pay. Wasn’t there something about suspended evictions? Will check on the arrears stats up thread.

[Wight Flight]

On 27/06/2020 at 12:00, Ash4781b said:

I’ve not checked in since from memory landlords got a Mortgage payment holiday but tenants had to pay. Wasn’t there something about suspended evictions? Will check on the arrears stats up thread.

Latest email from Generation rent asking me to sign their petition. I told them to fuck off as I am not as thick as they are.

Quote

To end the rent debt crisis we need a package of measures from the government:

No evictions due to Covid-19
Raise LHA to coverage average rents, and let everyone who needs it get it
Clear rent arrears with a new Coronavirus Home Retention Scheme
Right now, renters are bearing the costs of the pandemic, and with unaffordable rent still due, landlords’ profits are being protected. Under our proposals, the government would clear renters’ debts, but only cover up to 80% of the rent.

It’s time for the Government to end the rent debt crisis and make sure that no home is at risk. xxx, do you agree?

 

Edited July 1, 2020 by Wight Flight

[spygirl]

https://www.property118.com/adult-child-needs-to-apply-for-esa-uc-shift/

Adult child needs to apply for ESA – UC shift?

Which one is it? Adult or child?

His tenant is at the very end of her lucrative tax payer funded renting.

Shell be down to 2 kids on benefit soon.

 

[Castlevania]

On 01/07/2020 at 14:26, Wight Flight said:

Latest email from Generation rent asking me to sign their petition. I told them to fuck off as I am not as thick as they are.

 

Makes sense. Rent is unaffordable so let’s raise LHA, to make it even more unaffordable.

[spygirl]

https://www.ftadviser.com/mortgages/2020/05/18/hundreds-of-btl-properties-repossessed/

A total of 640 buy-to-let mortgaged properties were repossessed in Q1 2020, marking an 8 per cent rise on the same quarter last year, figures from UK Finance have shown.

A thats with lockdown/no repo.

Just imagine the number of repos that are goign to happen after lockdown.

 

[Andersen]

^ Eviction ban is due to end on 24th August 2020 unless it gets extended (again), one landlord trade body is pushing for priority to be given to cases involving anti-social behaviour or domestic violence, any possession orders which were granted prior to lockdown or where rent arrears have nothing to do with cv19.

Topical: Durham Council* have announced plans to introduce a Landlord tax of £590 per property (paid over 5 years?). Expect rents to rise or LL's to sell properties as it's uneconomic to continue https://www.durhampluss.uk/index.html
Death by 1000 cuts ...

* A similar scheme at Newcastle has been described as a council cash-cow, targeting genuine LL's with fines but ignoring the illegals.

[Ash4781b]

What’s the model then? BTL arrears to rocket and the financing opportunities dry up as lenders take fright and pull the products? I’m seeing loads of ex BTL properties coming to market but at the prices of marketed owner occupied equivalents. Can tell it’s BTL because they have the cheapest kitchen, magnolia, and industrial style carpets. Oh and no chain , and furniture.

[Wight Flight]

Ban on evictions to be extended.

Oops.

[macca]

52 minutes ago, Wight Flight said:

Ban on evictions to be extended.

Oops.

They deserve everything they get.. Cant stand buy to leech.. 

Work 40 hours and give 70% of your hard earned salary to your lazy piece of shit landlord..#

Welcome back to slavery.. we missed you..

[spygirl]

8 hours ago, Wight Flight said:

Ban on evictions to be extended.

Oops.

Business risk.

Im sure LL are well capitalised  and able to cope with this bump in the road.

Its not really about the LL, no matter how much they squeal.

It the banks and the ability to repo the house in a reasonable, fixed, known process.

This why the cunts that are ARLA spent years lobbying banks to increase their LL lending after AST changes.

Before that banks were, rightly, weary of LL lending.

Now the process of getting a house back from a LL is long, expensive, uncertain. Banks needs to be running away, selling of their LL loans to expensive non financial non banks operators.

IO BTL is stinking risky turd that banks should have never gone near.

 

 

 

Edited August 21, 2020 by spygirl

[spygirl]

Coronavirus: Eviction day fears for worried tenants in England and Wales

https://www.bbc.co.uk/news/business-53851945

Among them are Meghan Butt and her wife Faith Taylor. They are facing a section 21, so-called no-fault, eviction notice meaning they will have three months to leave the property in Hackney, London.

"This home has been a sanctuary during lockdown, and our first as a married couple," said Meghan, who studies horticulture and runs a dog-walking business in the area.

You cant afford to live in London FFS. At least at the mo.

Just stay in and let them serve an eviction notice.

 

 

[Andersen]

https://www.manchestereveningnews.co.uk/news/uk-news/buy-landlord-benefit-fraud-jailed-18765961.ampBusted 

Edited August 21, 2020 by Andersen

[SNACR]

I reckon a jingle mail option/amnesty for LLs and as long as existing tenants are keeping up rent payments to their new LL the bank a nice new mortgage will be coming their way.

Anyone know what the deal for evicting is, with the extension, if the LL sells to someone who intends to be an owner occupier?

 

[spygirl]

4 hours ago, SNACR said:

I reckon a jingle mail option/amnesty for LLs and as long as existing tenants are keeping up rent payments to their new LL the bank a nice new mortgage will be coming their way.

Anyone know what the deal for evicting is, with the extension, if the LL sells to someone who intends to be an owner occupier?

 

My cozs LL defaulted on the mortgage of the block of flat he lives in.

This was 3 years ago.

The LL agents just passes the rent to the bank. The block has been up for sale for 3 years now.

When it sells the bank will go after any shortfall from the LL assets.

They are going to have to start knocking hefty lumps off the price soon.

 

[UmBongo]

In my area I'm seeing a few tenanted properties go on sale or up for auction. I guess that these are the most overleveraged borrowers. 

[Wight Flight]

Just a thought but the Gov may actually want to crucify the current cohort of landlord's as a one off tax grab.

Looking at my situation, they were making maybe £3k tax every year off my landlord.

When the sale completes, they will get a sudden windfall of over £100k cgt.

Even better if it was sold to another landlord, as they would get an extra £15k stamp duty and still get the £3k per year from my rent.

Perhaps the way they changed the tax system, suddenly making landlords higher rate payers, was in preparation for this?

How much unrealized profit do we think is locked up in btl? It would make sense to get your hands on 28% of that now rather than leave it for another administration to collect.

[Wight Flight]

To continue the idea above...

As I understand it, limited companies are expected to revalue their assets every three - five years.

I believe at present any increase goes to the revaluation reserve, which improves the balance sheet but is not seen as profit from a tax point of view.

If I was .gov looking for some low hanging fruit for a tax grab I would be very tempted to think about this ability to delay tax.

 

Edited August 23, 2020 by Wight Flight

[macca]

6 months of mortgage payment freeze.. for home owners and landlord scum..

I wonder what happens when we get to 6 months if the tenant still cant pay and the landlord is skint..

mass unemployment is upon us on unprecedented scale..