Should I sell or risk tenants buying at undervalue price?

by Readers Question

9:08 AM, 25th September 2019
About 6 months ago

Should I sell or risk tenants buying at undervalue price?

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Should I sell or risk tenants buying at undervalue price?

Should I sell? What Solutions are there for this Dilemma? I Realise that Nothing has happened YET! But I just want to be clear about what my options are.

Who thought George Osborne would have removed Mortgage Interest Relief! / Removal of Section 21! + ALL the other Rules and Regulations they are Hitting us with.

I have Good Tenants who have been with me for 10 years and I would not sell, but for this dilemma. John McDonnell wants to “tackle the burgeoning buy-to-let market”. He suggested to the Financial Times that they could pay less than market value, …. meaning that the profit we would have made by it increasing in value over the years could be wiped out by an undervalue sale price!

Joey

 



Comments

Bill Williams

10:03 AM, 28th September 2019
About 6 months ago

Reply to the comment left by Whiteskifreak Surrey at 26/09/2019 - 09:04
It seems to me that you were the one to bring politics into this forum.

moneymanager

10:18 AM, 28th September 2019
About 6 months ago

Target foreign students, professionals wanting a city pied a terre and corporate lets, I don't now have one "Brit in a home".

Dylan Morris

11:43 AM, 28th September 2019
About 6 months ago

Reply to the comment left by Jessie Jones at 28/09/2019 - 09:39Problem is Jessie your tenants will not need to save for a deposit. Lenders have always agreed 100% mortgages on RTB purchases as the loan to value is so low. In fact many lend more than the purchase price, up to 75% of the value to include additional funds for home improvements or even capital raising to buy a new car etc. That’s why if RTB were to apply to the PRS the take up by tenants will be more than most of us expect. (The only thing holding a tenant back will be a poor credit rating or lack of income, but deposit won’t be a factor).

Colin Dartnell

11:17 AM, 29th September 2019
About 6 months ago

Reply to the comment left by Jessie Jones at 28/09/2019 - 09:39
I cannot agree with your train of thought, the majority of people buying property are not landlords nowadays and will look at the overall values in an area not how much it can be rented for, so it won't increase values. Landlords are not known for paying more than they have to, and will look at the possible income and then go and buy one down the street for less money. Again keeping values down.

High rents won't stop tenants buying as they will probably get help to buy or 100% first time buyers mortgages. So won't need a deposit.

Dylan Morris

7:59 AM, 30th September 2019
About 6 months ago

Reply to the comment left by Colin Dartnell at 29/09/2019 - 11:17Agree with what you’re saying Colin but a couple of points, I’m not aware of any lenders are doing 100% mortgages ? And Help To Buy is only for brand new properties.

Whiteskifreak Surrey

9:31 AM, 30th September 2019
About 6 months ago

Reply to the comment left by Dylan Morris at 28/09/2019 - 11:43
Hi Dylan, I am sorry but I am really confused with your reply? Can you elaborate a bit more please? Thank you.

Dylan Morris

10:26 AM, 30th September 2019
About 6 months ago

Reply to the comment left by Whiteskifreak Surrey at 30/09/2019 - 09:31Sorry for any confusion. I’m replying to Colin saying I don’t know of any mortgage lender at present that will grant a 100% mortgage to a First Time Buyer. As far as I am aware they all demand at least 5% deposit most asking for 10% (assuming Colin wasn’t referring to RTB which is different). Also as far as I am aware Help To Buy only operates where you purchase a brand new property from a developer (min 5% deposit required).

Michael Barnes

22:52 PM, 30th September 2019
About 6 months ago

I have read on another forum, but not checked, that the labour proposal is for the public (via Government) to provide the deposit, so LL gets full price but T gets a discount and mortgage is <100%.

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