Tag Archives: BMV

Below Market Value Question Latest Articles, UK Property Forum for Buy to Let Landlords

I know that due diligence is needed when buying Below Market Value “BMV” when the vendor is in financial difficulty. My understanding is that if the vendor is subsequently made bankrupt the sale can be overturned buy official receivers. However, if the buyer was to re-sell the property for a profit? Is the person who buys the property at this point still at risk if the original vendor goes bust?

For example, let’s say a property is on the market which was purchased for £105k a few months ago but its market value is say £150k.  The estate agent advised the vendor not to sell at such a low price and even made him sign a letter to say it was against their advice. The same property is now back on the market at £140K. If I was to buy this property would I be putting myself at risk if the original vendor declares bankruptcy? "BMV" Below Market Value Question

Thanks

Sally


Ready Made Property Tweets Latest Articles, Property Investment Strategies, UK Property Forum for Buy to Let Landlords

If like me you are a big fan of Twitter you will no doubt enjoy sharing information with your fellow landlords.

I have just completed the mammoth task of completely updating my buy to let property investment strategy and I will be tweeting about it over the next few days.

Below are some of the tweets I’ve already sent. By all means use them to link through to any articles that might interest you and/or click the re-tweet button Ready Made Property Tweetsat the bottom right of each tweet.

 

 

 

 


Problem with freehold management company Latest Articles, UK Property Forum for Buy to Let Landlords

We’ve got a problem with the Freeholder re Ground Rent and Service charge on a rental property we have in Docklands. Any advice much appreciated! Problem with freehold management company

They allegedly sent an invoice a few months ago. We didn’t receive this, but did receive a letter from a debt collection agency, together with Interest Charges and other fees. There was no Bank Account to pay the money to and no pick-up on the phone number provided, upon numerous attempts.

We then received a second letter from the debt collection agency advising of yet more fees and that they have advised our Mortgage Lender of non-payment of Ground Rent / Service charge.

We have now called the Freeholder who refuses to speak with us or confirm any contact details.

We have an email address for a contact at the debt collection agency, but have had no response from that either.

I’m trying to work out whether any of the charges are reasonable and what recourse we might have. We think the original Invoice from the Freeholder must have been sent to the Rental Property, but as the Debt Collection agency have our home address, they would surely have got this from the Freeholder?

It feels like the Freeholder and Debt Collection agency are working quite closely to ensure as many fees are racked up as possible.

All advice much appreciated.

I have also posted this on Facebook.

Many thanks

James Chapman


Quick Sale Property Businesses Squirming at OFT Report Landlord News, Latest Articles, Property Investment News, Property Market News, Property News, Property Sales & Sourcing, Property Sourcing, UK Property Forum for Buy to Let Landlords

The OFT have announced that they have written to 120 Quick Sale property businesses advising them to review their practices and also revealed they are to investigate three “Quick Sale” property firms following their review of the quick sale property sector.Quick Sale Property Businesses Squirming at OFT Report

The OFT report on “Quick Sale Property” businesses is very balanced and recognises the need for companies acting with integrity, i.e. a clear and open agenda.

Three announcements which have set off the panic alarms for investors operating “quick Sale” business models are:-

1) The OFT have now issued a guide for Consumers

2) The businesses under investigation for illegal activity have not been named and the outome is uncertain and may even lead to Court rulings which create case law or result in additional legislation being introduced for the protection of consumers.

3) The OFT has also written to almost 120 providers advising them to check that their business practices and contractual terms comply with their legal obligations. Discussions are also underway with businesses in the sector on developing self-regulation.

Practices of concern include:

  • Reducing the price offered at the last minute after the seller is financially committed to the transaction.
  • Making misleading claims about the value of the property or level of discount to be applied.
  • Stressing the fastest possible times to completion (for example ‘seven days’), rather than the more typical times (three to four weeks) on websites and marketing materials.
  • Inducing sellers to sign long-term exclusivity agreements that prevent them selling to other buyers, with severe penalties for breach of contract.

I suspect the OFT will be looking very closely at Google Adwords advertisements too. Below is an example which I have just spotted which mentions both Sale and Rent Back and cash sales in two days!

Quick Sale

Expect a lot of discussion in certain Facebook Groups and forums where “BMV Investors” gather.

Download the OFT Quick Sale Property Report and Consumer Guidance


Oven Cleaning is one of the biggest issues in a rented property Landlord News, Latest Articles, Property News

ovenOven cleaning is one of the biggest issues and this article is to help Landlords present this particular item in their property in its best condition for an inventory inspection and help tenants bring an oven back to its initial clean state when leaving the accommodation.

Let’s put it into perspective, the cleanliness of a property makes up 51% of tenancy deposit disputes and some of which can be attributed to people forgetting or missing an item to be cleaned, another is that differing people have differing ideas of what is clean. Let me give you an idea how we all think the same but differently.

Picture a cat in your head,
How big is it?
What is it doing?
What colour is it?

While we have all just seen a cat in our minds eye, some cats will be small, medium, large. It might be sleeping, sitting, jumping around and any colour you want. Nevertheless, it is still a cat. The same is true for cleaning, someone might have actually worked very hard to clean a property but yet it is not you to your high standard. Maybe they just don’t know how to do the task correctly and yes some are just simply too lazy to do it. It is a rare situation that we know which of these statements is true for a given household and it might be a combination of all of these factors.

There is a continuum for the level of cleanliness form: never been cleaned, attempted but still dirty, cleaned to an average household standard up to what we call in the inventory profession “cleaned to a high domestic standard” and “cleaned to a professional standard” the best of course being a professional clean.

Here is a list of key phrases I use when describing the cleanliness of an oven from best to worst:
1. As New
2. Cleaned to a professional standard
3. Cleaned to a high domestic standard
4. Clean to a domestic standard
5. Partly cleaned
6. Needs finished clean
7. Not clean.

I must add that fortunately, most inspection I do I only have to decide if the cooker/oven has been cleaned to a domestic or professional standard.

If you look at the picture below, this is an oven an oven cleaned to a high standard but its condition is excluded from our discussion on cleaning. This is a worn oven and unless you have prior information, to this picture, it is not possible to say if this is through damage or due to age and fair wear and tear.

 

This oven is clean but through age and use, it is marked and even rusted at the sides.

Then we have the oven that is clean to a high domestic standard that is to say it is grease free but there are still baked on marks.

 

You should also watch out for chemical residue, many of the excellent oven cleaning products on the market leave residue marks on surfaces if you don’t wash off the product fully, which technically means the oven is still partially dirty, need a finish clean.

There are several very good cleaning products on the market. But there is one that I prefer to use it gets the job done and is fairly easy to use and normally takes a clean to domestic standard to a professional clean level. It is a strong chemical so you have to be careful and follow the manufactures instructions it is “Oven Pride”. Please note that I don’t have shares in the company and I am not getting any benefit for mentioning this product my motivation for mentioning it is to   help anyone who reads this article in particular Landlords and Tenants.

About the author of this Post

Sydney Lewis A+ Inventories

Syd Lewis has been a private landlord for over 20 years, he is an accredited member of the National Landlords Association (NLA), Residential Landlords Association (RLA), Sponsor of the Good Landlords Campaign, a full member of the Association of Professional Inventory Providers (APIP) and a Certified Electrical Portable Appliance Tester (NIPIT). He is passionate about what he does which is providing residential inventory services, PAT testing and marketing floor plans for Agents, Landlords and Tenants. Inventories start from £56.00 to find out more see:-


43.06% Below Market Value – Instant Equity! Cautionary Tales, Landlord News, Latest Articles, Property News, Property Sales & Sourcing, Property Sourcing

Below Market Value Instant EquityCan you believe these were real headlines in an email that landed in my inbox this weekend? Well my spam folder actually! ….. soon to be renamed my scam folder HAHAHA

How can people be so stupid to fall for scams like this?

OK, so I’m on another one of my rants, feel free to join in by posting a comment below. Continue reading 43.06% Below Market Value – Instant Equity!


Landlords lose deposits as lenders pull out on completion day Buy to Let News, Landlord News, Latest Articles, Property News

Landlords lose deposits as lenders pull out on completion dayI have heard lots of stories about mortgage lenders withdrawing their mortgage offers on completion day in the last 6 months or so. There is also lots of speculation as to why this might be happening.

One conspiracy theory is that CIFAS departments of mortgage lenders are scouring the internet to build a comprehensive database of unregistered property sourcers, BMV agents etc. including personal names and business names which they then cross reference with mortgage applications. Continue reading Landlords lose deposits as lenders pull out on completion day


Sourcing BMV Properties – Landlords Question Landlord News, Latest Articles, Property News

Hi Mark (and all Property118 readers who may wish to chip in with an answer too)

I am reading lots of really good articles on your website. Great information! Your article on Richard Baker inspired me to target Northampton, thank you for that.

I actually live in London and really only have Saturdays to travel to Northampton and view properties. I was considering locating a local sourcing agent to help me (I am keeping up with Richard’s recommendations). I read your article on sourcing agents and how some mortgage brokers don’t want to lend to people where the property has been sourced through an agent. Continue reading Sourcing BMV Properties – Landlords Question


BMV property deal gone wrong – what would you do? Buy to Let News, Landlord News, Latest Articles, Property News

BMV Property Deal Gone WrongAlex has written in to ask other landlords what they would do if faced with a similar scenario of a BMV deal gone wrong. BMV means “Below Market value” by the way, just in case you didn’t know.

“I purchased a 2 bed flat (67 years left on the Lease) which was repossessed. I purchased for £80,000 but knew they sold for £125,000 so thought I was buying a bargain.

Continue reading BMV property deal gone wrong – what would you do?


Property Tribes trending topics of the week Landlord News, Latest Articles, Property News, UK Property Forum for Buy to Let Landlords

Property TribesThe founders of Property Tribes and Property118 are very much believers in collaboration as opposed to competition. With this in mind both forums have agreed to share with each others readers the trending topics from this week:

The Property Tribes landlord and investor forum is always buzzing with the discussions on Landlordism and property investment.

Here is a round up of the trending topics from Property Tribes this week: Continue reading Property Tribes trending topics of the week


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