Tag Archives: CCJ

Buy to Let Mortgage products and market update – essential reading Buy to Let News, Landlord News, Latest Articles

Having just updated the Buy to Let mortgage products on our own in house Buy to Let Mortgage sourcing system and calculator I thought I would give you a summary of what’s Hot or Not in the current market.

Virgin Money have been added to the system because of their helpful attitude and criteria which includes:

  • Day one remortgages – So no need to wait 6 months to remortgage for cash purchases, refurbs, Auction purchases etc
  • First Time Buyers
  • Regulated Buy to Let

However Maximum LTV is 70%. Stand out different product is a 5 year fixed at 4.09% with £750 Cash Back and 2.5% product fee (better for smaller loan sizes where looking to fix costs long term is important.

The Mortgage Works (TMW) always been and old favorite of mine going back to 2003 have a selection of 80% LTV products and no income requirement for existing landlords.

Interestingly they have no longer term products currently above an initial 2 year deal. This will either be because they have purchased no long term funds or are uncertain of market direction at the moment. Example products range from:

  • 2.49% two year fixed with 2.5% arrangement fee at 60% LTV (really only a headline grabber) to
  • 4.14% 2 year fixed 2.5% fee at 80% LTV (one of the lower interest rate high LTV products)

BM Solutions were the old industry go to lender until introducing a maximum exposure of 3 mortgages, but still have one of the most comprehensive range of products up to 75% LTV.  They are also often helpful for flats above or adjacent to commercial premises.

  • 3.19% 2 year tracker £1295 fee 60% LTV
  • 3.89% 2 year tracker 0.5% fee 75% LTV
  • 4.34% 3 year fixed 1% fee 75% LTV
  • 4.99% 5 year fixed 1.25% fee 75% LTV

BM Solutions have NO customer service staff so any mortgages or further advances even must be done by a broker.

Kent Reliance are really mostly famous for being THE 85% LTV lender.

However minimum property value £75,000, proof of £25,000 income required stress tested at 192 times monthly rental income.

  • 4.99% 2 year fixed 2.5% fee 85% LTV reversion rate 6.58%
  • 4.89% 2 year discount 2.5% fee 85% LTV reversion rate 6.58%

Aldermore have a good range of 80% LTV products at 4.98% including 2, 3 and 5 year fixed and a varibale rate for the term. They will do day 1 remortgages for properties bought with a bridging loan on a like for like basis and inherited properties.

They will also consider customer with light adverse credit which very few lenders will allow including:

  • 1 or 2 missed mortgage payments over 12 months
  • CCJs and Defaults registered over 3 years ago
  • Missed unsecured credit payments such as credit cards, mobile phone, loans et

Principality have a penalty free no tie in 2 year discount product at 3.39% with only a 1% + £99 fee at 60% LTV.

Also interestingly they will consider Holiday Homes on their BTL range!

Godiva owned by the Coventry building society are the “Does what it says on the tin lender” I liken them to the Yorkshire tea, or a sliced white loaf of a the buy to let product market. Nothing spectacular just a good solid no frills value for money products.

  • 3.49% variable penalty free for the term of the loan, £999 fee max 65% LTV (very good value with flexibility)
  • 3.79% 2 year fixed, £500 fee max 65% LTV
  • 4.74% Standard variable penalty free no fee max 65% LTV

Cost and product wise the market has been reasonably stable with small improvements adding up each month giving a healthier range of options available especially in niche areas such as:

Terms beyond retirement age, Bridge to Let, Remortgages inside 6 months, Ltd company applications, Higher LTV, Lower fees, Light adverse, Holiday let and more.

All of the above products, lenders and many more can be found by using our Buy to Let calculator and quote engine Please Click Here

If you need any assistance with a Buy to Let mortgage you can also:

Email: info@property118.com or

Telephone: 01603 489 1182013


Section 8 notice procedure Latest Articles, UK Property Forum for Buy to Let Landlords

I have served section 8 notice to my tenant because she was over 2 months behind with rent, I gave her another 1 months notice which ends on 12th Oct. She claims housing benefit and I e-mailed them last week to tell them shoe owes over £1,200 they said they will look into it?

I have been told that she has been to Egypt twice in the last couple of months, and she is planning on moving out there permanently to marry someone just after Christmas, but she doesn’t know that I know this.

She has told me she will see if council will find her another house but I know the council will tell her not to move until I get a court order. I was planning on applying for a court order which will cost me another £100 and then will probably have to get bailiffs in to evict her maybe sometime before Christmas, I was then planning on putting a small claim against her through the court which will cost me again and might be granted £5 a week or something similar? I will be lucky to get this done before she goes and I don’t think a CCJ will matter in Egypt. Section 8 notice procedure

Is there anything else I can do to get her out of the property? will council pay her rent and arrears? any advice would be greatly appreciated.

Thanks

Andy


Aldermore offer Buy to Let for customers with light adverse credit Buy to Let News, Latest Articles

Since the credit crunch it has been extremely difficult for anyone without a perfect credit history to obtain a Buy to Let mortgage. Mainstream lenders have not been interested in entertaining any mortgage arrears, CCJs or defaults until now.

Aldermore have changed their Buy to Let criteria  allowing a mortgage to be considered for customers who have had:

  • 1 or 2 missed mortgage payments over 12 months
  • CCJs and Defaults registered over 3 years ago
  • Missed unsecured credit payments such as credit cards, mobile phone, loans etc

In recent years most options open to Buy to Let customers with any adverse credit would have cost 8-10% and even up to 15% for more serious cases.

This is obviously a very clever attempt to capture market share in a niche area, but really does help a lot of investors who have had a blip and are still a good risk

The Aldermore Product range starts from:

  • 3.98% for a 2 year fixed fee 2.5% at max 75% LTV
  • up to 4.98% with £1,999 fees for their 80% LTV products.

Aldermore Criteria includes:

  • No minimum income for experienced Landlords or £25,000 min for First time Landlords
  • Min Value of a property £75,000
  • No DSS tenants
  • Max 5 properties with Aldermore

You can get a full quote on our Buy to Let mortgage sourcing Calculator if you wish (CLICK HERE)

Or if you need any help with a Buy to Let application

Email: info@property118.com

Tel: 01603 489118Aldermore


Another Foxtons case from 2010 – reader requests help Latest Articles

Sorry to have to re-visit the issue of Foxtons again! I’m afraid it is the same story of unfair renewal fees. The “good “ thing is that mine is not a new case, just unresolved since 2010.

I had used Foxtons to let a flat in 2009 – at that point I was made to sign all the pages of their Terms and Conditions. We, in any case managed the property ourselves and there were no issues with renewal of tenancy.

I used them again in 2010, and asked them, this time around to manage the property. This time around, I was sent a document to sign, which somewhere read that “I have read and understood……Foxtons’ Lettings and Conditions”. I was however not provided with the actual Terms and Conditions this time around and had no idea about the kind of money they charge for tenancy renewal…….fast forward to Foxtons approaching me to request renewal fees. They took the matter to County court when I said I did not know what they were talking about. Hearing is early next month.

Part of the documents they have put forward is their T&C with “date and time Accepted”, my name and email address, their user ID and IP address, at the bottom of all the pages of the same T&C. They claim this to be proof that I agreed to their T&C, since (according to them) this has the same weight as me physically signing the document. I do not know how true this is.

I believe my options to be:

A) Pay the money they are demanding (£1762.44), especially as I really do not have the time to pursue this and would want to avoid losing a day of work to be in court (as I assume I would have to be physically present?)

B) Hand the matter to one of these “no win no fee” set ups, who specifically target Foxtons cases – I have nothing to loose

C) Look for a more ”standard” firm of solicitors to deal with this.

The other concern I have is that of CCJ. Assuming I were to go all the way and loose the case, at what point does the issue of CCJ come up, especially it is something I can naturally not afford to have on my name?

Any other advice would be greatly appreciated.

Michaelfoxtons


Landlords Revenge Latest Articles, Tenant Eviction, UK Property Forum for Buy to Let Landlords

A landlord who came out and told BBC’s The One Show of her troublesome tenant has now had further problems. 

Broadcast on 2nd May, the landlord Mrs Trivedy was featured on the show in an item about rent-arrears and the difficulties landlords are having with tenants on benefit who are not passing on the rent.

Mrs Trivedy was shown getting the help of Landlord Action when her social tenants stopped passing on their housing benefit yet refused to vacate the property, leaving her £4400 in rental arrears. After the case was broadcast on the BBC, the tenants moved on which may have been a good result.

But the tenants left with much of the landlord’s furniture. And they have wrecked the home. Mrs Trivedy says “Wear and tear in a rental property is inevitable but what I was faced with, even given the tenants previous behaviour, was completely unnecessary. Not only is there damage to every room, they have stolen two sofas, a wardrobe, a chest of draws, a fridge-freezer, curtain poles as well as numerous smaller items. What remains was a complete mess and totally unliveable.”

The Condition of Schedule following the tenants’ departure describes the property as in poor condition with damage, missing items and a lack of cleanliness reported in every room, in addition to the garden being littered with dog mess.  Mrs Trivedy says she has made a statement to the police in regards to the missing items but was advised that it was unlikely to be taken much further as there are varying degrees of theft and it is her word against the tenants.

Mrs Trivedy says “I am obviously thrilled to have regained possession following the notice served by Landlord Action which has avoided further rent arrears and additional court fees, but I still face being thousands of pounds out of pocket.  I will have to make-over the entire property and replace furniture in order to let it again. I think the tenants should be made to pay.”

Paul Shamplina, Founder of Landlord Action says this is not an uncommon scenario. Tenants can feel aggrieved after being asked to leave. But he adds, “In this case it seems the TV exposure may have made these people more upset”. Even though the house in Bracknell was shown on screen, the tenant was interviewed and the landlord is very shocked at their behaviour.

Shamplina also advised that in these cases landlords have to be careful not to throw good money after bad. The potential outcome of further action has to be weighed up against the costs and time involved. Firstly, is it possible to track down the tenants to recover the rent arrears and if so what is their financial position? Secondly, when you regain possession, what state is the property in and how much will it cost to put right? An inventory is paramount to proving this.”

Landlord Action has a busy rent recovery department for landlords who will act on behalf of Sandra Trivedy in helping her locate her ex tenants for a fixed fee. However Mr Shamplina says “in a case such as this, we must take a view as to whether the landlord really wants to spend money and enforce a money judgement if the tenants do not have a job or any assets. Obtaining a CCJ and trying to get a court order for monthly payments off such tenants is likely to take years to clear. Many landlords wish to do so out of principle but we advise landlords to weigh up their options before going down this route.”

Contact Landlord Action

Specialists in tenant eviction and debt collection. Regulated by The Law Society.

Landlords Revenge


Precise Mortgages launch Bridge to Let product Buy to Let News, Commercial Finance, Landlord News, Latest Articles, Property News

Precise mortgagesThe intermediary only lender Precise Mortgages has today launched the Uk’s only true Bridge to Let Product for development and refurbishment BuytoLet projects.

If  you take out a Bridging loan with Precise Mortgages you will now be able to switch it into one of their Bridge to Let products (effectively a Buy to Let loan) from month four onwards with no additional valuation or legal fees. Customers will be allowed to take the BTL loan out up to 75% of the property’s post works valuation so, if you have enhanced the value of the property, you will be able to withdraw some or all of your working capital.

The lender has combined its Bridging products with its traditional BTL products. The BTL element offers terms of up to 30 years, on an interest only basis, with no valuation or legal fees, and no need to change lender.

This offers a one stop shop for Development or Refurbishment projects where the plan is to keep the property upon completion of works and let out on a Buy to Let basis.

Standard Bridging rates apply starting at 0.85% per month with the Bridge to Let element starting at 4.39% and the 2% Arrangement Fee can be added to the loan.

Prime Bridge to Let product and Criteria details:

  • Rates from 4.39% reverting to Libor (currently 0.51%) plus 4.98%
  • Maximum LTV 75% of the post works valuation
  • Product fee 2% on all products and can be added to the loan
  • Max Loan size £500,000 for 75% LTV or £1,000,000 for 70% LTV
  • No Minimum income requirements, but must be employed/self employed and supply last 3 months bank statements
  • Rental income must cover 125% of the interest payment or reversion rate which ever is the higher
  • Age range 25 to 75
  • Maximum 1 property with Precise mortgages, but unlimited portfolio size with other lenders

Near Prime Bridge to Let Product and Criteria details:

  • Allowable adverse Credit
  • Defaults – none in last 12 months with max 1 default in the last 24 months (max £1500)
  • CCJs – none in last 12 months with max 1 default in the last 24 months (max £1500)
  • Arrears – none in last 12 months and maximum 1 month in the last 36
  • Rates from 5.39%
  • Maximum 1 property with Precise mortgages, but unlimited portfolio size with other lenders

 

If you would like our preferred broker to help raise finance for the above type of project please complete the form below and provide a short overview of the deal and your requirements or call us on 01603 489118 and we will do our very best to help.

[si-contact-form form=’5′]


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:-


How landlords can defend against cannabis farming by @MarkTrenfield Buy to Let News, Cautionary Tales, Guest Articles, Landlord News, Latest Articles, Lettings & Management, Property Investment Strategies, Property News

Cases of residential cannabis farming are still rising across the UK and, only this week, another Swindon rental property – in Durham Street – was found to have £160,000 worth of cannabis growing in it (see Swindon Advertiser lead story, 10th July 2012).

With drug crime sometimes causing property damage running into tens of thousands of pounds – how can the private landlord weed out these drug growing criminals? Continue reading How landlords can defend against cannabis farming by @MarkTrenfield


Ombudsman boots out rent row letting agent Buy to Let News, Cautionary Tales, Latest Articles, Lettings & Management

Letting agent Helen Gregory has been expelled from The Property Ombudsman scheme after a rent row with a buy to let landlord client.

Her firm Beechwood Property Portfolio, in Bakewell, Derbyshire, was dumped from the scheme after failing to resolve a dispute with the landlord over persistent late rent payments. Continue reading Ombudsman boots out rent row letting agent


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