Tag Archives: Gas Check

Safety laws should be applied to ALL property owners Landlord News, Latest Articles, Property Investment News, Property Maintenance

Safety laws should be applied to ALL property owners

I am in favour of new regulations which could help to save lives but I don’t understand why only the lives of tenants seem to matter in the eyes of the law.

I don’t have gas at home but I do have electricity (yes even in mid Norfolk LOL) and I also have an electrical safety certificate dated just a few months ago for my own home. Safety laws should be applied to ALL property owners

If proposed new regulations for electrical testing in residential properties comes about then I hope they are imposed on all property owners and not just landlords.

Laws need to be applied equally.

If the lawmakers don’t care about the safety of children living with irresponsible parents who don’t get their homes checked for gas and now electricity then why do they care so much about tenants living in rental properties?

How many homeowners get an annual gas safety check?

Why shouldn’t owner occupiers be made legally responsible for protecting the lives of their children, neighbours, emergency services who try to rescue them when their house explodes in a ball of flames and of course their own lives?

What’s good for the goose ….

What are your thoughts?


12.5% return on cash invested on a newly refurbished Manchester based development Commercial Finance, Latest Articles, Property For Sale

Last week I was presented with a Manchester based buy-to let investment opportunity which looks particularly attractive. The gross yield is just over 11% but with the benefit of gearing, and having allowed for all costs, the cash on cash returns are coming out at 12.5%. Manchester Buy to Let

I have done some due diligence (you should always do your own though, please don’t rely on mine) and part of that was checking out the availability of finance on these properties.

The only possible drawbacks I can see thus far is that the maximum mortgage is 65% of value plus a lender fee of £995 added to each loan. This is due to the properties being priced at £42,500 and being sold as a new development. The issue with this is that BM Solutions are the only lender offering terms. As BM Solutions are part of the Lloyds Banking Group that can sometimes cause problems due to the group having a rule not to provide more than three mortgages to any one client. The Lloyds Banking Group includes Lloyds Bank, BM Solution, The Mortgage Business, Halifax and C&G.

If you can live with that, and especially if you are married or have a partner, and you and your partner have no mortgages with any of these companies, you could, theoretically at least, buy six of these properties, i.e. 3 each.

The alternative, of course, is to buy the properties for cash and then look to refinance them based on market value after say 6 months.

In the meantime, these are the numbers that came out when I analysed the deal using the Property118 Landlords Calculator:-

Property valued at £50,000 each (15 available, 18 already sold at full price)

Discount offered to Property118 to sell the remaining units 15%

Net price £42,500 each

Monthly rent £400 (based on comparables provided by local agents)

Gross rental yield 11.29%

Mortgage £28,620 based on 65% borrowing plus £995 lender fee added to advance

LTV 67.34%.

Deposit required for each property £13,880.

Interest rate 4.84% (Loan via BM Solutions – IFA to advise best product, this one was selected at random for illustrative purposes)

Mortgage interest £115.34 per month

I have estimated that 35% of rental income will be required to fund the costs of; advertising/letting, management, Gas checks, maintenance, ground rents, service charges and void periods This equates to a monthly averaged cost of £140.

Therefore, cashflow based on the current interest rate is £144.57 per month

Based on these figures the return on equity is 12.5% on cashflow alone. This is net annual cashflow expressed as a percentage of the equity in the property. This calculation is also referred to as; return on cash, cash on cash return, return on capital employed/invested, ROC and ROCI. A 12.5% return on equity is far better than you would get in a bank account and far greater than you can borrow money for too. Over the long term you may also wish to factor capital appreciation into the equation too.

This deal breaks even when interest rates hit 10.9%

If this is of interest and you would like to download details of the development with a view to arranging a viewing and/or making an offer please complete the form below.


What do you do when a tenant leaves and does not give you the keys? Guest Articles, Guest Columns, Landlord News, Latest Articles, Property News

tenant leaves and does not give you the keysYou may get tenants who from time to time leave without giving you the keys. You know the ones… They have some arrears, have left the house, shall we say “lived in” (by prehistoric savages) and don’t want to be accountable for their actions, so they “done one”.

Being a lawyer you’re then faced with the most used legal principle, that being “Sod’s Law” – ie this being the house that you did not keep a spare set of keys! So now you have delays and a locksmith to worry about to get in. Continue reading What do you do when a tenant leaves and does not give you the keys?


How to get your property portfolio off “death row” Cautionary Tales, Guest Articles, Latest Articles, Lettings & Management

Glen Ackroyd of National Property GroupWith interest rates at a historic low, guest article writer Glen Ackroyd from National Property Group explains the steps he’s taking to protect his buy to let property portfolio from inevitable interest rate rises and taking his portfolio off “death row”.

In September 2008 I was having what was supposed to be my dream holiday. Like many others, I had ridden the wave of the credit boom and had acquired a large property portfolio. At the height of my success I was staying in a private villa in an island in the Bahamas, fronting onto the harbour, with millionaires’ yachts and Hollywood film stars for neighbours. Surely, life just couldn’t get any better?

Continue reading How to get your property portfolio off “death row”


Gas watchdog hots up on safety checks Latest Articles, Lettings & Management

Landlords are urged to check out gas safety at their properties and to make sure properly qualified fitters are carrying out work on boilers, heating and cookers.

Student landlords should carry out safety checks before the start of the new academic year, says the Health and Safety Executive (HSE), the organisation responsible for enforcing gas safety rules. Continue reading Gas watchdog hots up on safety checks


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