Page 940 – Property118

Buy to let strategy – the 20% liquidity reserve rule of thumb

3rd December 2010

This rule of thumb is very simple.  If you have £100,000 of buy to let mortgages you should have £20,000 in the bank. This article was written to show you a safe strategy that you may never have considered before.  If you don’t have the right level of liquidity reserve, don’t panic.  There are ways […]

Buy to let rent arrears up 20%, say advice watchdogs

3rd December 2010

Tenants struggling to pay rent arrears to buy to let landlords have rocketed by 20% in a year, according to the Citizen’s Advice Bureaux (CAB).  The free access advice centres across England and Wales dealt with 20 rent arrears inquiries every day during the three months ending September 30.

Student lettings are in a class of their own

3rd December 2010

Business is booming for student landlords as rents, property values and returns are all increasing. The average student landlord benefitted from a 13.5% return on investment in the year ending September 30, reports estate agents Knight Frank in their annual student property survey.

3,000 home repossessions halted due to legal error

3rd December 2010

Up to 3,000 cases currently before the courts are likely to be withdrawn by lenders who will have to start proceedings all over again as a result of the Supreme Court ruling that found lawyers have not served the right paperwork on homeowners in arrears with loans secured against their properties.

Rents set to keep on rising, say letting agents

3rd December 2010

Letting agents expect buy to let rents to keep edging higher as more tenants snap up the few available rental properties. Four out of 10 letting agents reported seeing an increase in rents over the quarter ending October 31, according to the Royal Institute of Chartered Surveyors (RICS) residential lettings survey – while some (27%) […]

A tenant’s human rights can stop an eviction, rules a court

3rd December 2010

Private landlords may have to bear in mind their tenant’s human rights before they can evict them, according to the latest court ruling. Lawyers are likely to thrash out the implications of the case that could undermine a landlord’s ability to repossess a property in the New Year.

Buy to let landlords can prosper from homes crisis

3rd December 2010

England faces a worsening housing crisis as house building is drastically out of pace with the demand for new homes.  The nation’s appetite for homes will run at about 250,000 a year for the next 25 years mainly due to the needs of a growing population, according to the latest government figures. 

Winners and losers in rural house price stakes

3rd December 2010

Property prices in small market towns outstrip those of most nearby towns and cities by an average of £30,000, according to Lloyds TSB. House prices in English market towns are, on average, £29,319 (14%) higher than the surrounding counties.

Top 10 places where renting a home is cheaper than buying

26th November 2010

A new rent survey based on the average cost of renting compared to buying a similar home on an interest only mortgage at 5%. Aberdeen is the cheapest place in the country to let a home, with rents 22% below the average cost of buying a similar home on an interest only mortgage at 5%.

Running a buy to let business as a limited company

26th November 2010

Buy to let landlords making big rental profits and looking to save tax often flirt with the idea of running their business through a limited company. The main benefit is a company can be a tax-effective way of managing income.

Landlords lose out by paying cash-in-the-hand

26th November 2010

Paying tradesmen for cash in the hand jobs seems like a good idea at the time – but ends up costing landlords more. The problem is only the tradesmen win when a landlord hands over cash for a job in return for a discount. The discount is generally equal to VAT the tradesman will not […]

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Paragon plans to lend £1 billion to buy to let professionals

26th November 2010

Buy to let specialist lender Paragon Mortgages has announced a 32% rise in profits as the firm looks to reassert its former position as a major funder of professional landlords by lending £1 billion. After nearly three years away from the market, the lender has opened for new business after securing £200 million backing from […]

Judges rule 14-day deposit protection rule is not legal

26th November 2010

Tenants have lost two landmark appeals in cases that have rendered tenancy deposit legislation more or less useless. The ruling means that the current 14-day time limit on protecting a deposit imposed on landlords is merely an administrative requirement and not enforceable in law.

CML reports that buy to let mortgage lending is up 12%

26th November 2010

Buy to let lending has risen by 12% supported by ongoing demand for rental property fuelled by potential homeowners who have to rent because they cannot buy. There were 26,900 buy to let loans worth £2.8 billion advanced in the three months ending September 30, according to the latest figures from the Council of Mortgage […]

HMO investors must not shun planning opportunity

26th November 2010

Time is running out in some cities for house in multiple occupation (HMO) investors to expand their property portfolios. The repeal of HMO planning rules by Housing Minister Grant Shapps has given property investors who want to open new shared houses or extend existing properties a window of opportunity.

Trio sentenced for £4.6 million mortgage fraud

26th November 2010

Link to the original Mortgage Strategy article which reads as follows: Three people, including a former police financial investigator were sentenced yesterday to almost ten years imprisonment in total for defrauding mortgage providers of £4.6m. Charles Overend, a former police financial investigator, defrauded mortgage providers by hiding discounts he had received on the price of […]