Ian Pye

Registered with Property118.com
Monday 9th September 2013

Latest Comments

Total Number of Property118 Comments: 5

Ian Pye

17:10 PM, 16th January 2015
About 6 years ago

First Time Buy to Let for 18yr old

Nikki, I bought a BTL property with my 18 yr old daughter just before she started university in Sept 2013.I am retired and am 65 yrs old.My daughter owns 90% , I own 10%.
She used money I had saved for university fees, as deposit. We have a joint BTL mortgage for 10 yrs (until I reach 75).After 1 yr we remortgaged to a different lender to get a better deal.
Both mortgage applications, through our broker, were straightforward and no different than mortgages I have obtained with my wife.
In your daughter's case ,if your daughter and your husband bought the property and had a joint mortgage, it should not be a problem .
Incidentally I got the idea from a thread on this website in 2013.
My daughter intends to make this property her primary residence , sometime in the future, as she gradually buys my stake.... Read More

Ian Pye

20:47 PM, 12th September 2013
About 8 years ago

Old leases since 1945

I had a similar experience. I bought a house from my mother in the 80's.(She had inherited it from her mother.) I used to play monopoly with my grandmother and always said this was my 'Old Kent Rd' and from being 5 yrs old I said I would buy it from my grandmother , when I was older.
It was a Regulated Tenancy at 10 shillings( 50p) a week from the 1950's and my mother had to travel 25 miles round trip to collect the rent , so she only did it once a yr , and she had to pay tax on the rent.
In the early 80's I persuaded her to take it to the rent tribunal to ask for a rent increase.
She was granted an increase to £6 a week and she had to do all the external repairs.She knew the roof would eventually become a problem, so I bought the house from my mother for £8,000 (independent valuation) in 1985.(It was valued at £400, when she inherited it from her mother) .Sure enough I eventually got the letter from the tenant saying it needed a new roof, because all the supports were rotten.It cost me £8,000 to remove the slates , replace the timbers and refix the slates.I was living in the Far East , so I let the tenant get the quotes and I decided which company to use.
I negotiated with the tenant every 2 yrs and eventually got the rent to £11.50 a week by 2003. ( If the tenant agrees in writing there is no need to apply to the rent tribunal- just register the agreed new rent with them ).
Eventually the tenant died after 50 yrs as a tenant.When I inspected the property with his daughter,I found the house was in very poor condition.It cost £50K to ( including more roof repairs).Everything except the walls were replaced repair, even the floor had to be dug up.The house was 200 yrs old
The daughter and son had the right to succeed the tenancy( but only if either of them had been living in the property with their father for 2 yrs before the death, which they had not done).
I sold it in 2005 for £193K.!! One of the best deals in my life.

I suggest you visit Shelter housing and homeless charity website, which explains everything you can and cannot do, with a regulated tenancy.... Read More

Ian Pye

21:28 PM, 9th September 2013
About 8 years ago

Condensation compensation

I had the same problem last year and following a comment by Mark last yr about Envirovent, I had this system installed, in a ground floor flat.
Problem solved.
Not cheap but very effective.I had ' educated' the tenants how to avoid this problem , because it is caused by lack of ventilation (they kept closing the window vents).
Apparently this problem only occurs in ground floor flats.
There is a discount if the landlord is a member of NLA which is more than 1 yrs membership fee.... Read More

Ian Pye

8:41 AM, 7th September 2012
About 9 years ago

Would you sell in an auction if you were me?

I would NOT have changed to a letting agent.Nearly all the etxra rent will go to the agent.You could have achieved this without the agent.
I had a similar situation, where my mother had inherited a cottage in the 60's with a tenant on a regulated tenancy on 10 shillings (50p) a week and could not increase it without the tenants permission.She used to go and collect the rent once per yr.The tenant had the right to stay there for life and he did!
I persuaded her to ask the tenant to agree to an increase to £6 per week , which he reluctantly did.This was duly registered.
In 1985 I bought it from my mother, because she knew it needed a new roof.
It was valued @ £6,000 with the tenant in situ.My mother was pleased with the £6,000. By 2000 I had managed to move the rent up to £16 per wk , with the tenants permission.
In 2007 the tenant died after living there 50 yrs.I totally renovated it replacing everything including the roof timbers and slates,even the floor had to be dug up.Total cost £54,000.
However, I sold it for £195,000.
Be patient and you should be rewarded. ... Read More

Ian Pye

21:36 PM, 20th August 2012
About 9 years ago

Selling a tenanted property portfolio - READERS QUESTION

Thius is a very interesting issue.
My son and his family(4 children), has been a tenant in a house for 4 yrs ( in the SE) and he has just been advised by the landlord that the property is going to be sold.The tenancy agreement has been rolled over to a 1 month rolling notice period.He and his wife are now worried that if the property sells quickly they will not be able to find a 4 bed house to rent within the timescale, demanded by the landlord.There are virtually no 4 bed properties for rent in the area.
My son would consider buying the property, but with a poor credit rating due to problems 2 yrs ago but been good since., would find it difficult to get a mortgage.I had planned to help them buy a property in 2014/15, when their credit score will be much higher.
Also the indicated price by the agent is far too high ( 50K higher than I would pay,if I was buying it for my portfolio,)
The landlord clearly expects them to move out at 1 months notice, which is not realistic for a family of 6.They are now looking for somewhere urgently and if they find somwhere, then they will move out leaving the landlord without the rental income.
I do not expect the poperty to sell at the indicated price, but my opinion does not help my son and his wife, because of their fear of suddenly being told to leave.
Any suggestions ?

... Read More