How does Buy to Let END!

[spygirl]

Chris Norris, the policy director at the National Residential Landlords Association, told the Daily Telegraph: “We’re seeing lots of people talking about exiting the market at the moment because they’re not able to increase the rent – they don’t feel it’s right or sustainable to increase the rent by the amount they would have to.

“If you’re talking about 30 or 40%, that’s not sustainable. The option you’re left with is to dispose of that property and to exit.”

Mr Norris says landlords are having problems when remortgaging after a cheap fixed-rate deal had ended because they struggle to pass the stress tests for a lender’s BTL mortgage product

 

Boo hoo hoo.

 

[spygirl]

https://www.telegraph.co.uk/politics/2023/07/01/jeremy-hunt-mortgage-rescue-deal-excludes-buy-to-let/

Hunt's mortgage rescue deal to exclude buy-to-let properties

Chancellor's 'anti-landlord' plan criticised by Labour which warns of 'potential snowball problem' affecting the private rental sector

ByEdward Malnick, SUNDAY POLITICAL EDITOR1 July 2023 • 7:21pm

Jeremy Hunt’s mortgage rescue deal with banks will exclude buy-to-let properties, The Telegraph can disclose, in a move cited as evidence that the Conservatives have become “anti-landlord”.

The formal Mortgage Charter agreed with banks was published on the Government website on Friday. The small print of the deal shows that the commitments made by lenders - including more flexibility over repayments  - do not apply to buy-to-let mortgages.

In a foreword to the document, Mr Hunt states: “These measures should offer comfort to those who are anxious about high interest rates and support for those who do get into difficulty.”

But Rachel Reeves, the shadow chancellor warned that excluding buy-to-let mortgages from the rescue deal risked a “potential snowball problem ... building up” in the private rented sector, amid soaring interest costs.

On Saturday night, she wrote to the Chancellor, warning that the exemption could leave some two million properties out of the deal.

“This could have severe consequences, because not only will landlords potentially hand higher costs directly onto renters, increasing the risk of evictions, it may also result in a rush to sell buy-to-let properties with a knock-on impact on an already disrupted housing market,” she said.

 

Rachel Reeves you stupid cunt.

 

 

[JoeDavola]

33 minutes ago, spygirl said:

https://www.telegraph.co.uk/politics/2023/07/01/jeremy-hunt-mortgage-rescue-deal-excludes-buy-to-let/

Hunt's mortgage rescue deal to exclude buy-to-let properties

Chancellor's 'anti-landlord' plan criticised by Labour which warns of 'potential snowball problem' affecting the private rental sector

ByEdward Malnick, SUNDAY POLITICAL EDITOR1 July 2023 • 7:21pm

Jeremy Hunt’s mortgage rescue deal with banks will exclude buy-to-let properties, The Telegraph can disclose, in a move cited as evidence that the Conservatives have become “anti-landlord”.

The formal Mortgage Charter agreed with banks was published on the Government website on Friday. The small print of the deal shows that the commitments made by lenders - including more flexibility over repayments  - do not apply to buy-to-let mortgages.

In a foreword to the document, Mr Hunt states: “These measures should offer comfort to those who are anxious about high interest rates and support for those who do get into difficulty.”

But Rachel Reeves, the shadow chancellor warned that excluding buy-to-let mortgages from the rescue deal risked a “potential snowball problem ... building up” in the private rented sector, amid soaring interest costs.

On Saturday night, she wrote to the Chancellor, warning that the exemption could leave some two million properties out of the deal.

“This could have severe consequences, because not only will landlords potentially hand higher costs directly onto renters, increasing the risk of evictions, it may also result in a rush to sell buy-to-let properties with a knock-on impact on an already disrupted housing market,” she said.

 

Rachel Reeves you stupid cunt.

She owns at least 2 houses with her husband - I dare say they probably have a few BTL's thrown in there too:

https://en.wikipedia.org/wiki/Rachel_Reeves

 

[eek]

13 hours ago, spygirl said:

https://www.telegraph.co.uk/politics/2023/07/01/jeremy-hunt-mortgage-rescue-deal-excludes-buy-to-let/

Hunt's mortgage rescue deal to exclude buy-to-let properties

Chancellor's 'anti-landlord' plan criticised by Labour which warns of 'potential snowball problem' affecting the private rental sector

ByEdward Malnick, SUNDAY POLITICAL EDITOR1 July 2023 • 7:21pm

Jeremy Hunt’s mortgage rescue deal with banks will exclude buy-to-let properties, The Telegraph can disclose, in a move cited as evidence that the Conservatives have become “anti-landlord”.

The formal Mortgage Charter agreed with banks was published on the Government website on Friday. The small print of the deal shows that the commitments made by lenders - including more flexibility over repayments  - do not apply to buy-to-let mortgages.

In a foreword to the document, Mr Hunt states: “These measures should offer comfort to those who are anxious about high interest rates and support for those who do get into difficulty.”

But Rachel Reeves, the shadow chancellor warned that excluding buy-to-let mortgages from the rescue deal risked a “potential snowball problem ... building up” in the private rented sector, amid soaring interest costs.

On Saturday night, she wrote to the Chancellor, warning that the exemption could leave some two million properties out of the deal.

“This could have severe consequences, because not only will landlords potentially hand higher costs directly onto renters, increasing the risk of evictions, it may also result in a rush to sell buy-to-let properties with a knock-on impact on an already disrupted housing market,” she said.

 

Rachel Reeves you stupid cunt.

I don't think it's that stupid an idea - Hunt can't implement the plan but it gives Labour an attack line that isn't do more...

And you have to remember that a bank can chuck you out of a repossessed house at absolutely zero notice (for different rules apply to them than to anyone else)..

[spygirl]

6 minutes ago, eek said:

I don't think it's that stupid an idea - Hunt can't implement the plan but it gives Labour an attack line that isn't do more...

And you have to remember that a bank can chuck you out of a repossessed house at absolutely zero notice (for different rules apply to them than to anyone else)..

I'm not sure they can, not immediately.

Theyd need an eviction notice.

If eviction notice rise, and families - rather than young sharers - face eviction, then the legal system will lean against them - no eviction until replacement housing found.

More charges n costs to levy against a LL...

 

[eek]

5 hours ago, spygirl said:

I'm not sure they can, not immediately.

Theyd need an eviction notice.

If eviction notice rise, and families - rather than young sharers - face eviction, then the legal system will lean against them - no eviction until replacement housing found.

More charges n costs to levy against a LL...

 

Not true see - https://england.shelter.org.uk/housing_advice/repossession/repossession_by_a_landlords_lender

You will end up in council organised emergency housing if you can't find anything else...

[AlfredTheLittle]

2 minutes ago, eek said:

Not true see - https://england.shelter.org.uk/housing_advice/repossession/repossession_by_a_landlords_lender

You will end up in council organised emergency housing if you can't find anything else...

Is that the shop doorway?

[spygirl]

10 minutes ago, eek said:

Not true see - https://england.shelter.org.uk/housing_advice/repossession/repossession_by_a_landlords_lender

You will end up in council organised emergency housing if you can't find anything else...

To be hoenst, that says the same.

Repossession by a landlord's lender

Your landlord's mortgage lender can start court action to repossess the property if your landlord:

• stops paying their mortgage

• rents the property out without the lender's permission

The court could make a repossession order unless the landlord puts things right.

When you can stay in your home

You can stay in your home if the mortgage lender has to accept you as their tenant.

This is sometimes called having a binding tenancy.

If you have a binding tenancy, the lender becomes your landlord after they get the property back.

This normally happens if either:

• it's a buy to let mortgage

• the mortgage started after your tenancy

Check if you have a binding tenancy.

If you have to leave

Court bailiffs can evict you when the lender asks them to get the property back from the landlord. This happens after the date on the possession order has passed.

Your landlord’s mortgage lender must send a:

• letter addressed to ‘the occupiers’ when they get a date for the court hearing

• second notice if they apply for a bailiff's warrant

The earliest an eviction can take place is 14 days after the second notice.

You can ask the court to delay eviction for up to 2 months.

How to delay eviction

You can ask for a delay either:

• at the hearing

• after the hearing

If eviction is delayed at the hearing, you cannot ask again later.

The court might tell you to pay rent to the lender instead of the landlord until you move out.

How to ask for a delay at the court hearing

You can go to the hearing and ask the judge to delay the date for possession for up to 2 months. This gives you extra time to find somewhere else to live.

You do not need to be named on the court paperwork to do this.

You need proof of your tenancy such as:

• your tenancy agreement

• evidence of your rent payments

 

[spygirl]

If a bank could repo a house simply then ther would be no need of a court/judge.

The legal process is there to listen to all parties.

Again,. this is hwy banks houldnever had got into lendign to IO BTL.

Yes,the process will be tstraitghtforward isits is, say single working peple.

The judgewil be accomdating and grant a request fo up to 2 months to get the next place sorted.

IO BTL and housign fmailis, esp. fmailieso n beenfots means the process is never going to go as easy now, esp if theres a shortage of social rents.

Its not hard to imagine a cae where a flood of IO BTL repos , resulting in famileis being evicted, measn UKGOV change the reocmmned process to something like - only repo *AFTER*  the fmaily has been rehosued - for how ever logn that takes.

Rembmer the banks are still in shit - and they know it.

The costs and extra shit will be just put nt the LLS bill.

 

 

[spygirl]

https://thenegotiator.co.uk/kate-faulkner-educate-would-be-landlords-before-they-enter-buy-to-let/

Property guru Kate Faulkner OBE wants to see the the property industry and financial advice sectors come together to give would-be landlords the right advice to make sure that they can stay in the sector when situations turn sour.

Speaking to agents while on the Lettings Insight Panel at the Propertymark One conference in Wembley this week Faulkner (main picture), also Chair of the Home Buying Selling Group, warned there was a danger of even more ill-informed landlords leaving the sector as mortgage rates spiral upwards.

JUST TALKING

TV pundit and property guru Russell Quirk was hosting the panel and wanted to know whether landlords were really leaving the sector or just talking about.

“Despite having been kicked around by the current government in regard to Section 21, Capital Gains Tax, thresholds changing, mortgage tax relief and now buy-to-let mortgages being substantially more expensive… my contention is that landlords are still having it okay. So is it really happening or have landlords ‘rarely had it so good’?” Quirk asked.

Faulkner repleid that landlords were definitely leaving the sector and that it had also emerged in the last week that some 450,000 properties would now be in trouble due to new mortgage rates.

She went on to cite one landlord who had five properties that were already losing money every month and that if they were to sell up today would net just £2,000.

“There is a serious business problem if you are highly leveraged. There isn’t a serious problem if you bought properties with cash or you don’t have a massive leverage,” she said.

[spygirl]

There has never been anything stopping a LL taking thier business plan to an accountant and talking the ups n downs thru.

Wel, nothing other than their own stupidity n penny pinching.

[JoeDavola]

45 minutes ago, spygirl said:

Property guru

[JoeDavola]

My 1 bed flat could rent for a maximum of £900 a month; I think you'd struggle to get that actually but lets say £900.

Minus 10% agent fee leaves £810.

Minus £120 building maintenance fee a month leaves £690,

Minus £75 rates (our council tax) bill leaves £615.

Minus say £25 for unexpected maintenance costs (perhaps a bit low) leaves £590.

Lets assume the landlord somehow dodges paying tax on the rental income, but lets also assume they want the rent to fund a repayment mortgage over 25 years.

At 6% £590 a month will fund a £91,500 mortgage. On a flat they'd recently have been looking £150K for.

[Option5]

Councils buying houses on the open market?

Just before the prices plummet of course.

BBC News - North Norfolk District Council buys house to support Afghan refugees
https://www.bbc.co.uk/news/uk-england-norfolk-66068977

[tank]

5 hours ago, Option5 said:

Councils buying houses on the open market?

Just before the prices plummet of course.

BBC News - North Norfolk District Council buys house to support Afghan refugees
https://www.bbc.co.uk/news/uk-england-norfolk-66068977

Prices are unlikely to plummet imo. 

Short of another GFC type collapse and a credit crunch the CBs can't contain, the best you'll see is stagnation with lower sales volumes.

Too much demand via mass immigration and too many props, including engineered low supply. 

Edited July 2, 2023 by tank

[Wight Flight]

7 hours ago, tank said:

Too much demand via mass immigration

But is that effective demand? I don't think so.

[sancho panza]

11 hours ago, tank said:

Prices are unlikely to plummet imo. ....................

............Short of another GFC type collapse and a credit crunch the CBs can't contain, the best you'll see is stagnation with lower sales volumes.

Too much demand via mass immigration and too many props, including engineered low supply. 

Tank I think you're nearly there,jsut connect the dots

Theer's another collapse in credit markets/banks looming imho.

[ste]

 

Link

[spygirl]

5 hours ago, ste said:

 

Link

The Landlord Times

Page 3

Rachel from Leeds.

37D-35-40.

Likes tight fisted old men and keep abreast of SVRs.

'Id never sleep with a renter' giggles Rachel, as she gives 'Fergus' Kent a handjob.

 

[One percent]

On 02/07/2023 at 16:02, AlfredTheLittle said:

Is that the shop doorway?

Only if you are really, really lucky.  

[spygirl]

Call for LHA to track local rents as landlords struggle with ‘unprecedented financial challenges’

https://www.property118.com/call-for-lha-to-track-local-rents-as-landlords-struggle-with-unprecedented-financial-challenges/

Propertymark has called on the Department for Work and Pensions (DWP) to reconsider its current Local Housing Allowance (LHA) scheme and communicate with landlords more.

Speaking at a recent Commons Committee hearing, the organisation’s Timothy Douglas detailed how the existing level of LHA is affecting the private rented sector (PRS).

Propertymark, along with various other professionals from the PRS including tenants, policymakers and homelessness advocates, were examining the influence of LHA on the housing sector.

They all said that there was a need for the DWP to engage with landlords and acknowledge their vital role as stakeholders in the provision of housing.

By not doing , vulnerable tenants could be priced out of the PRS as rocketing demand means rents are rising – but the LHA is not keeping up.

It's almost like Ukgov don't want people on benefits in the prs....

 

[One percent]

Just now, spygirl said:

Call for LHA to track local rents as landlords struggle with ‘unprecedented financial challenges’

https://www.property118.com/call-for-lha-to-track-local-rents-as-landlords-struggle-with-unprecedented-financial-challenges/

Propertymark has called on the Department for Work and Pensions (DWP) to reconsider its current Local Housing Allowance (LHA) scheme and communicate with landlords more.

Speaking at a recent Commons Committee hearing, the organisation’s Timothy Douglas detailed how the existing level of LHA is affecting the private rented sector (PRS).

Propertymark, along with various other professionals from the PRS including tenants, policymakers and homelessness advocates, were examining the influence of LHA on the housing sector.

They all said that there was a need for the DWP to engage with landlords and acknowledge their vital role as stakeholders in the provision of housing.

By not doing , vulnerable tenants could be priced out of the PRS as rocketing demand means rents are rising – but the LHA is not keeping up.

It's almost like Ukgov don't want people on benefits in the prs....

 

Delusional.  

[spygirl]

From TOS.

Nice to see were at 10 %

Posted 15 minutes ago

https://www.facebook.com/groups/183696635022296/?hoisted_section_header_type=recently_seen&multi_permalinks=6462659117125985

 

Anonymous participant

snterSopodlu9iu11h3c718124hg410gf612c81824i53m0l1520t52ii05a  · 

 

Hi

I had a property for a buy to let via an agency. For the last 2 years they charged me £100 per calendar month. This was in lieu of them collecting the rent and then depositing to my account. They were also responsible for the initial letting out. I live down the road from the property. My BTL interest is now 10% and therefore I will have to pay £1,800 interest per month. My rental income was £1,350 and I have to pay landlord insurance of £50 per month. With these interest rate rises I will now be out of pocket at £600 a month.

My fixed year contract with the agency is coming to an end. I told them I would not like to continue with them getting rent on my behalf as frankly I can’t afford paying them £100 a month. I am still going to be £500 out of pocket a month and so going to be eating in my savings.

The agency have emailed back citing the below clause saying we need to continue paying them as the tenants were brought in by them. They state that the only way out is that we find tenants ourselves. Please see clause below

10.8.4 At the end of the initial fixed term the Term shall continue on a month-by- month basis until either party shall serve on the other a written notice to bring the same to an end. Such notice, when served by the Landlord, should expire not less than two months after the same shall have been served on the Tenant. In the case of a notice served by the Tenant, such notice should expire no less than one month after service of the same on the Landlord.

Kindly note that our fee will continue to be payable while these tenants are still living at the property as per clause 1.1 in the attached terms of business.

1.1 6%, plus vat (7.2% including vat), of the rent for the term of the tenancy, including any extension or

renewal or periodic tenancies.

Is there any way I can stop paying the agency as I am going bankrupt already

Any help appreciated

[Wight Flight]

15 minutes ago, spygirl said:

Is there any way I can stop paying the agency as I am going bankrupt already

Nope.

[JohnnyB]

Mortgage renewals are increasingly shifting away from 5y and to 2y and svr according to the Times.

Seems the people are betting that interest rates will be heading down shortly. That's what those clever economists are saying!

Perhaps they will be vindicated. But if that isn't proved to be correct and in 2 years the rates are higher, many will be double-fucked