How does Buy to Let END!

[Wight Flight]

Can someone explain just who would want to rent a knackered 5 bed house knowing you will be evicted after six months?

https://www.onthemarket.com/details/12696135/

[sancho panza]

27 minutes ago, Wight Flight said:

Can someone explain just who would want to rent a knackered 5 bed house knowing you will be evicted after six months?

https://www.onthemarket.com/details/12696135/

first question Id ask myself is how depserate the owners are to try and squeeze 6months rent.WOuld imply your repairs wont be getting done

[Wight Flight]

1 minute ago, sancho panza said:

first question Id ask myself is how depserate the owners are to try and squeeze 6months rent.WOuld imply your repairs wont be getting done

My other guess is it is an inheritance and they are waiting for the market to improve before selling.

But with only six months you might as well treat it as a squat. No way you are going to fully furnish and tend the garden.

[Guest]

On 05/05/2023 at 14:32, sancho panza said:

https://propertyindustryeye.com/renters-reform-bill-set-to-arrive-next-week-michael-gove-confirms/

The long-awaited legislation to improve renters’ rights is set to finally be published next week – more than four years after the government pledged to abolish Section 21 evictions.

In 2019, the then prime minister, Theresa May, promised to scrap Section 21 evictions, and later that year Boris Johnson vowed in the Conservative party general election manifesto “a better deal for renters”, including the eviction ban.

Ministers published a rental reform white paper in summer 2022, but with six different housing ministers since 2021, draft legislation has yet to go before parliament for debate.

The secretary of state for levelling up, housing and communities, Michael Gove, has announced that the draft bill will be published next week and would “change the way the relationship between landlords and tenants works, providing tenants with new protection, which should ensure they are better protected against arbitrary rent increases”.

They've now delayed publishing the Renters Reform Bill.

https://www.lettingagenttoday.co.uk/breaking-news/2023/5/government-pulls-rental-reform-bill-at-the-last-minute

[spygirl]

10 hours ago, Wight Flight said:

Can someone explain just who would want to rent a knackered 5 bed house knowing you will be evicted after six months?

https://www.onthemarket.com/details/12696135/

Cannabis farmers.

 

[spygirl]

Skipton the rescue ...

Final come out of with rental scum mortgage page.

 

https://www.skipton.co.uk/mortgages/track-record-mortgage

Put in 1.2k an exceptionally high rent.

....

You may be able to borrow

£195,602

Please note: Your next step is to complete our full Affordability Calculator, which will give you another loan amount. The maximum loan you could apply for will be the lower of the two amounts.

Note the 'may'.

What is the maximum loan you could apply for?

Once you've completed both calculators, the maximum you may be able to borrow will be whichever loan amount is lower – the loan amount based on the Track Record Calculator, or the loan amount calculated through the Affordability Calculator.

Example:

Amount from Track Record Calculator = £250,000
Amount from Affordability Calculator = £300,000
The maximum you could borrow from us is £250,000 as this is the lower value.

 

Lets try affordabilty calc - 

https://www.skipton.co.uk/mortgages/affordability-quick-check

2 people. 30k + 15k, which would be top ~20% fo earned household incomes.

You could borrow up to£168,750

 

 

[Wight Flight]

33 minutes ago, spygirl said:

Skipton the rescue ...

Final come out of with rental scum mortgage page.

 

https://www.skipton.co.uk/mortgages/track-record-mortgage

Put in 1.2k an exceptionally high rent.

....

You may be able to borrow

£195,602

Please note: Your next step is to complete our full Affordability Calculator, which will give you another loan amount. The maximum loan you could apply for will be the lower of the two amounts.

Note the 'may'.

What is the maximum loan you could apply for?

Once you've completed both calculators, the maximum you may be able to borrow will be whichever loan amount is lower – the loan amount based on the Track Record Calculator, or the loan amount calculated through the Affordability Calculator.

Example:

Amount from Track Record Calculator = £250,000
Amount from Affordability Calculator = £300,000
The maximum you could borrow from us is £250,000 as this is the lower value.

 

Lets try affordabilty calc - 

https://www.skipton.co.uk/mortgages/affordability-quick-check

2 people. 30k + 15k, which would be top ~20% fo earned household incomes.

You could borrow up to£168,750

 

 

As I expected I can borrow £225k based on my current rent.

Looks like I will still need a 325k deposit then. 

[Boon]

New builds not accepted, I guess that might be the way the wind is blowing, as even the banks know that these are badly overvalued. 

I dunno if this is just the banks version of hopium? 100% gives them no room for error and many of the risks are correlated - ie a recession increases defaults on mortgages as well as reduction in asset prices.

They must be hoping either props come back in a big way or that there will be some bailout for banks allowing to recapitalise at government-backed lower rates.

[sancho panza]

13 hours ago, Wight Flight said:

My other guess is it is an inheritance and they are waiting for the market to improve before selling.

But with only six months you might as well treat it as a squat. No way you are going to fully furnish and tend the garden.

I think you might be right.Clearly no experience of letting to people who rent hosues for 6 months.........we rent so not judging -jsut saying there's a very small pool of people who need a family home for 6 months no more no less.

Reality is that it may draw some people who really dont look after it or don't leave when asked.

7 hours ago, Darude said:

They've now delayed publishing the Renters Reform Bill.

https://www.lettingagenttoday.co.uk/breaking-news/2023/5/government-pulls-rental-reform-bill-at-the-last-minute

Interesting,I think there are huge problems in the retnal market with BTLers selling leading to rent squeeze and squeeze on social hosuing.Rent is counted in CPIH/CPI

Edited May 10, 2023 by sancho panza

[JoeDavola]

7 hours ago, Wight Flight said:

As I expected I can borrow £225k based on my current rent.

Looks like I will still need a 325k deposit then. 

A perfect summary of the absurdity of the UK property market!

[AlfredTheLittle]

On 07/05/2023 at 18:25, Wight Flight said:

No. They don't care about people.

Renting is a good choice for many if we had the systems used across Europe. But they won't do that.

i don't understand their end game.

I think you're giving them too much credit, they simply don't think in the kind of joined up way that you're thinking and they don't have an end game, only the short term matters.

[spygirl]

14 hours ago, Darude said:

They've now delayed publishing the Renters Reform Bill.

https://www.lettingagenttoday.co.uk/breaking-news/2023/5/government-pulls-rental-reform-bill-at-the-last-minute

Ahh yes, those making it up as they go along Marxists at the I

Another newspaper - the online i - used unnamed sources and reported: “A group of Conservative backbenchers – some of whom are landlords and, according to Westminster sources, reportedly include the former chairman of national estate agency chain Hunters, Kevin Hollinrake – are unhappy about the pro-renter legislation and have been lobbying against it.”

Today's Mirror - a Labour-supporting publication - also carries a pledge from shadow housing secretary Lisa Nandy to introduce more far reaching reforms of the private rental sector.

https://www.landlordtoday.co.uk/breaking-news/2021/7/revealed--how-many-mps-are-landlords

Open Democracy - which describes itself as an investigative service - says 18 Labour MPs, four Scottish National Party MPs and 90 Conservative MPs have declared themselves landlords.

They have each recorded in the official register of MPs’ interests that they receive at least £10,000 a year from rental income

Moron on moron.

If you look at constituencies you'll see Labour have loads in London - 46 I googled.

And you'll Cons have less - 20 ( These are quick googles).

Most Cons have seats out in the sticks, so will have a London flat.

The question should be - How many MPs have commercial rentals I,e not let to themselves or family.

Rental income is not necessary  landlording.

, moving on.

Rental reform bill doesn't make much difference.

I think its just delayed for minor tweaks. Stuff does get tweaked.

S24 n higher rates are the biggies.

Enough people now understand the s21 process correctly anyhow.  And judges are pushing back evictions of families n vulnerable - that's why evictions always go before a judge.

The bill and s21 is not for the LL. It's a message to daft btl lenders who thought they could get the property back within 2 months, cheaply.

They cant, do theyll have to rethink how much to lend to LL and at what SVR. And even if they want to be in the LL credit business - they really dont what to be.

I remember the heady early days of s24, you know, about 5y in, when the fuckwits finally read it and did the sums.

I'm voting Labour next GE!  cried LL, showing a similar understanding of politics as they did of finance and, well, everything.

https://www.lettingagenttoday.co.uk/breaking-news/2023/1/labour-launches-major-review-of-private-rental-sector

• Fedup Landlord
• 28 January 2023 15:11 PM

End S21 - I'm out.
Reduce eviction powers for landlords whose tenants are in arrears - I'm out.
Introduce four month notice periods - no doubt tenants will be able to just leave - I'm out.
Allow tenants to have pets - against my head leases - I'm out
Permit renters to make ”reasonable alterations to a property” - MY property, not theirs, I'm out.

Perhaps landlords should make clear the consequences of voting Labour at the next election.

Fat cunt Fergus has 1 vote. His tenants have 2,000.

 

 

 

 

 

[spygirl]

10 hours ago, Wight Flight said:

As I expected I can borrow £225k based on my current rent.

Looks like I will still need a 325k deposit then. 

Can your LL remortgage?

At least at an SVR that wont ruin him?

[spygirl]

On 07/05/2023 at 18:04, Wight Flight said:

I don't disagree.

So why are .gov trying to kill it. Makes no sense.

The Treasury n BoE dont like io btl.

They protested when it started going nuts in early 00s.

However that was part of Browns genius money from finsec.

As soon as coalition came in in 2010, BoE n treasury had a pre written s24 ready for Gidiot to give the nod, which he did.

IO mortgsges have no place in regulated banks books. Leave them to financial companies.

IO BTL have no place anywhere. They are commercial bridging loans.

 

 

[spygirl]

21 hours ago, Wight Flight said:

Can someone explain just who would want to rent a knackered 5 bed house knowing you will be evicted after six months?

https://www.onthemarket.com/details/12696135/

Date	Price	Address
25/04/2002	£225,000	69 Victoria Grove, East Cowes, PO32 6DL Details...
27/08/1999	£115,000	69 Victoria Grove, East Cowes, PO32 6DL Details...

[spygirl]

It looks like a HMO.

Google

https://www.achurchnearyou.com/church/16808/

Church.

Which explains the crap decor - just bought it n left it.

 

[Wight Flight]

25 minutes ago, spygirl said:

Can your LL remortgage?

At least at an SVR that wont ruin him?

He did this year.

His mortgage went from £300 to £850.

I guess he has a lot of equity.

[reformed nice guy]

5 minutes ago, Wight Flight said:

He did this year.

His mortgage went from £300 to £850.

I guess he has a lot of equity.

What do you estimate his yield is on your place after expenses + tax?

Do you think his equity has kept up with inflation?

I see a lot of properties in an area I monitor that are yielding sub 4%, so very risky, and the sold value of city flats being similar to what they were 10 years ago (nominal, not inflation adjusted)

[Wight Flight]

2 minutes ago, reformed nice guy said:

What do you estimate his yield is on your place after expenses + tax?

Do you think his equity has kept up with inflation?

I see a lot of properties in an area I monitor that are yielding sub 4%, so very risky, and the sold value of city flats being similar to what they were 10 years ago (nominal, not inflation adjusted)

Now probably breakeven. Maybe a slight loss.

But it isn't important. He bought it to retire to, just can't afford to do so yet.

However the value has gone up by best part of £200k since pre-covid so he has done OK.

[Phil]

20 minutes ago, Wight Flight said:

Now probably breakeven. Maybe a slight loss.

But it isn't important. He bought it to retire to, just can't afford to do so yet.

However the value has gone up by best part of £200k since pre-covid so he has done OK.

How old is the owner? Out of interest.

[Wight Flight]

2 minutes ago, Phil said:

How old is the owner? Out of interest.

I think he is very early 60s from memory.

[HousePriceMania]

 

https://propertyindustryeye.com/btl-landlords-plan-to-sell-properties-at-record-rate/

 

BTL landlords plan to sell properties at record rate

Meanwhile, in other news....

 

 

[lid]

https://www.thisismoney.co.uk/money/buytolet/article-12073321/HMRC-orders-soaring-numbers-landlords-pay-millions-pounds-fines.html

🙂

[GTM]

27 minutes ago, lid said:

https://www.thisismoney.co.uk/money/buytolet/article-12073321/HMRC-orders-soaring-numbers-landlords-pay-millions-pounds-fines.html

🙂

I'm reading that as HMRC sending a message to landlords. Come forward now and fix your tax affairs and we'll go relatively easy on you. But if we have to come to you, we'll rip your face off. 

I wonder how many are listening. 

[spygirl]

10 minutes ago, GTM said:

I'm reading that as HMRC sending a message to landlords. Come forward now and fix your tax affairs and we'll go relatively easy on you. But if we have to come to you, we'll rip your face off. 

I wonder how many are listening. 

No, that was the stage ~3-4 years ago, when HMC ran a amnesty for LL.

Now its big boy stuff.

We'll come up with a alrgenubmer, you paiy it or cexplain why you dont owe so much.