Warning to all landlords
A Nottingham landlord who admitted failing to install a fire alarm, smoke detection system and self-closing devices on the doors at his flats has been fined £6,000.
Firefighters were called to a blaze in a ground floor flat belonging to Simon Fields in June 2008 and had to lead a second floor resident to safety. An inspection revealed there were no fire precautions in the flats or the common areas and inspectors banned the use of the first and second floors.
Fields, of Trowell Road, Wollaton, pleaded guilty to four fire safety charges at Nottingham Magistrates’ Court. He was fined £1,500 for each offence and ordered to pay £3,772 in costs.
UK's leading website with FREE resources for property investors, go to www.rhettlewis.com
Wednesday, April 29, 2009
Landlords feeling the credit crunch
According to a Council of Mortgage Lenders (CML) report, there were 4,000 repossessed buy-to-let properties last year, up from 2,000 in 2007 and should this continue at the same rate as the last quarter of 2008 it is suggested that there will be almost 7,000 buy-to-let properties repossessed in 2009.
With unemployment anticipated to reach three million by 2010 this figure could increase significantly. Graham Kinnear of Landlord Assist, a nationwide tenant eviction and rent collection company said “Many landlords are really feeling the brunt of economic contraction. Tenants have less money to pay the rent and some cannot pay at all. Previously good tenants are losing their jobs and the landlord is then losing their income.”
“The eviction process can take up to five months and accordingly landlords can have sustained significant arrears of rent by the time the tenant leaves which puts incredible pressures on them to meet mortgage payments in the interim.”
UK's leading website with FREE resources for property investors, go to www.rhettlewis.com
According to a Council of Mortgage Lenders (CML) report, there were 4,000 repossessed buy-to-let properties last year, up from 2,000 in 2007 and should this continue at the same rate as the last quarter of 2008 it is suggested that there will be almost 7,000 buy-to-let properties repossessed in 2009.
With unemployment anticipated to reach three million by 2010 this figure could increase significantly. Graham Kinnear of Landlord Assist, a nationwide tenant eviction and rent collection company said “Many landlords are really feeling the brunt of economic contraction. Tenants have less money to pay the rent and some cannot pay at all. Previously good tenants are losing their jobs and the landlord is then losing their income.”
“The eviction process can take up to five months and accordingly landlords can have sustained significant arrears of rent by the time the tenant leaves which puts incredible pressures on them to meet mortgage payments in the interim.”
UK's leading website with FREE resources for property investors, go to www.rhettlewis.com
Property viewings rose across the UK
The latest figures from Hamptons International revealed that property viewings across the UK rose sharply in the last few weeks, with a +50% increase when comparing this year to the previous year.
The findings showed how many potential buyers are being enticed back into the sales market thanks to falling house prices and strong investment opportunities. In London, prime areas such a Knightsbridge and Begravia/Pimlico witnessed a rise in viewings of +77% and +78% respectively. This increase can certainly be understood when comparing current property prices in these prestigious areas, a London property requiring the equivalent on £1m in capital in Dec 2007 could be acquired for approximately £750,000 in December 2008.
Across the rest of the country, the upswing in activity was also apparent, particularly in the commuter belt countries of Berkshire, Buckinghamshire and Hertfordshire.
This is certainly echoed with buyer registration figures too, with Hamptons’ data revealing that the number of buyers registering in January has jumped to the highest level for 9 months.
The latest figures from Hamptons International revealed that property viewings across the UK rose sharply in the last few weeks, with a +50% increase when comparing this year to the previous year.
The findings showed how many potential buyers are being enticed back into the sales market thanks to falling house prices and strong investment opportunities. In London, prime areas such a Knightsbridge and Begravia/Pimlico witnessed a rise in viewings of +77% and +78% respectively. This increase can certainly be understood when comparing current property prices in these prestigious areas, a London property requiring the equivalent on £1m in capital in Dec 2007 could be acquired for approximately £750,000 in December 2008.
Across the rest of the country, the upswing in activity was also apparent, particularly in the commuter belt countries of Berkshire, Buckinghamshire and Hertfordshire.
This is certainly echoed with buyer registration figures too, with Hamptons’ data revealing that the number of buyers registering in January has jumped to the highest level for 9 months.
Many tenancy deposit disputes involve cleaning
The Tenancy Deposit Scheme has published a series of case studies, selected at random, into disputes between landlords and tenants over deposit monies due.
These studies have been undertaken to underline the dual role of tenancy deposit protection that has been a legal requirement since April 2007. It involves both the safeguarding of money and dispute resolution at no cost to the tenants.
More than half of all disputes, 52%, sent to the Tenancy Deposit Scheme involve cleaning. Over a third, 45% are occasioned by damage and in over 25% of all cases by the need for redecoration. Problems over gardening arise in 13% of all disputes, the amount involved tends to be a little more than half the total deposit. The average amount of a deposit covered by the Scheme is £1,079 and the average disputed amount is £601. Using these averages, typically the landlord was awarded £252 and the tenant £256.
This is a very clear indication of impartiality. It also demonstrates how very important it is that all parties understand from the outset what is meant by clean, and by cleaning.
UK's leading website with FREE resources for property investors, go to www.rhettlewis.com
The Tenancy Deposit Scheme has published a series of case studies, selected at random, into disputes between landlords and tenants over deposit monies due.
These studies have been undertaken to underline the dual role of tenancy deposit protection that has been a legal requirement since April 2007. It involves both the safeguarding of money and dispute resolution at no cost to the tenants.
More than half of all disputes, 52%, sent to the Tenancy Deposit Scheme involve cleaning. Over a third, 45% are occasioned by damage and in over 25% of all cases by the need for redecoration. Problems over gardening arise in 13% of all disputes, the amount involved tends to be a little more than half the total deposit. The average amount of a deposit covered by the Scheme is £1,079 and the average disputed amount is £601. Using these averages, typically the landlord was awarded £252 and the tenant £256.
This is a very clear indication of impartiality. It also demonstrates how very important it is that all parties understand from the outset what is meant by clean, and by cleaning.
UK's leading website with FREE resources for property investors, go to www.rhettlewis.com
Tuesday, April 28, 2009
Loan-to-value rates are at a two year low according to recent research.
Figures from the financial website moneyextra.com have shown that banks are still being particularly prudent with regards to their lending criteria; a move which could lead to further low prices in the UK.
The research shows that in the first quarter of 2009, the average loan-to-value rate for first-time buyers was just 71.1 per cent. For those hoping to remortgage, that figure reached just 68.8 per cent.
Such low lending figures are likely to put further pressure on homeowners attempting to sell their property, as with buyers unable to secure a mortgage it is unlikely that the number of property transactions will rise in the near future.
A statement from moneyextra.com pointed to a slight rise in mortgage loan rates, but avoided the suggestion that such a rise may be the beginning of the end.
"At the beginning of March the Moneyextra.com housing index shows all mortgage lending was at a two year low but by the end of the month there was a 13 per cent increase," it said.
"Whilst it is positive to see lending figures slightly increase, the rise might not last."
UK's leading website with FREE resources for property investors, go to www.rhettlewis.com
Figures from the financial website moneyextra.com have shown that banks are still being particularly prudent with regards to their lending criteria; a move which could lead to further low prices in the UK.
The research shows that in the first quarter of 2009, the average loan-to-value rate for first-time buyers was just 71.1 per cent. For those hoping to remortgage, that figure reached just 68.8 per cent.
Such low lending figures are likely to put further pressure on homeowners attempting to sell their property, as with buyers unable to secure a mortgage it is unlikely that the number of property transactions will rise in the near future.
A statement from moneyextra.com pointed to a slight rise in mortgage loan rates, but avoided the suggestion that such a rise may be the beginning of the end.
"At the beginning of March the Moneyextra.com housing index shows all mortgage lending was at a two year low but by the end of the month there was a 13 per cent increase," it said.
"Whilst it is positive to see lending figures slightly increase, the rise might not last."
UK's leading website with FREE resources for property investors, go to www.rhettlewis.com
A new monthly report from the Bank of England (BoE) suggests that mortgage lending will not increase significantly in the coming months. Instead, the first Trends in Lending survey has found that the recent green shoots will remain just shoots for the immediate future.
For homeowners trying to sell their property such news could mean a longer wait or lower house prices, so selling a home online could prove to be one step towards finding a buyer faster.
The Council of Mortgage Lenders (CML) said that the BoE report aligned itself very much with the outlook shared by the CML.
A statement from the Council said: "The report confirms the CML's view that there has been a modest pick-up in housing market activity recently, but that it remains at an extremely low level.
UK's leading website with FREE resources for property investors, go to www.rhettlewis.com
"Despite this small improvement, the CML does not foresee a lasting, significant increase in lending volumes until funding conditions improve."
The new Trends in Lending report will be published monthly, but in the mean time, homeowners may find that advertising a property online could lead to it being seen by a greater number of potential buyers.
UK's leading website with FREE resources for property investors, go to www.rhettlewis.com
For homeowners trying to sell their property such news could mean a longer wait or lower house prices, so selling a home online could prove to be one step towards finding a buyer faster.
The Council of Mortgage Lenders (CML) said that the BoE report aligned itself very much with the outlook shared by the CML.
A statement from the Council said: "The report confirms the CML's view that there has been a modest pick-up in housing market activity recently, but that it remains at an extremely low level.
UK's leading website with FREE resources for property investors, go to www.rhettlewis.com
"Despite this small improvement, the CML does not foresee a lasting, significant increase in lending volumes until funding conditions improve."
The new Trends in Lending report will be published monthly, but in the mean time, homeowners may find that advertising a property online could lead to it being seen by a greater number of potential buyers.
UK's leading website with FREE resources for property investors, go to www.rhettlewis.com
Friday, April 10, 2009
Mistake 52 – Not having back-up strategies in place
The previous section referred to planning your response in the face of certain ‘business threatening’ events. One very important part of this planning should be to have solid strategies in place to deal with some of these events.
Some of the things that you should seriously consider doing are the following:
Cover yourself against possible loss of income during times of illness: There are some very good insurance policies available that can protect your income during times of serious illness. Speak to a financial advisor about setting up such a policy. You will certainly sleep a little bit better at night if you do!
Cover yourself against the financial implications of losing your job: Many insurance companies will, at a premium of course, insure you against the possible loss of your main source of income. You can normally choose different levels of cover and for how long you would like benefits to be paid.
Clarify your legal position: It is very important that you have a solid understanding of what your position would be in the case of a marriage break-up. A solicitor should be able to help you and your partner to assess this and also to draw up contracts in such a way that that it gives you and your spouse the maximum tax benefits as well as the best possible individual protection. This is obviously quite a complicated area and you would be well advised to appoint a solicitor with a great deal of experience in these kinds of matters.
Set up a contingency fund: The best way to deal with sudden demands for large amounts of cash would be to have funds available that were set aside specifically for this purposes. The setting up and management of contingency funds are discussed in more detail elsewhere in the book, but allow me to here just emphasise their immense importance to the long term survival of your business.
Have a clear ‘exit strategy’: Drawing a ‘line in the sand’ in terms of how much loss you are willing to sustain is not enough. You will also have to set out very clearly what you will do should you ever reach that line. Planning for this and putting it in writing could help you a great deal should this ever happen.
Get your will in order: Make very sure that your will goes way beyond your personal effects and circumstances. You should ideally also have some kind of ‘business will’ in place. A solicitor can help you to attach or combine this with your general will. Such a document should spell out in great detail what should happen with different parts of your business. Having this in place can save your family from a great deal of head scratching and even from serious hardship.
None of us would obviously like to see any of the events described above happening to us. But to pretend that such events do not happen or that, if they do, they will not have a serious impact on your business, is to be like an ostrich with its head in the sand!
To learn more about the other 76 mistakes that amateur property investors make, go to www.rhettlewis.com/77mistakes
UK's leading website with FREE resources for property investors, go to www.rhettlewis.com
The previous section referred to planning your response in the face of certain ‘business threatening’ events. One very important part of this planning should be to have solid strategies in place to deal with some of these events.
Some of the things that you should seriously consider doing are the following:
Cover yourself against possible loss of income during times of illness: There are some very good insurance policies available that can protect your income during times of serious illness. Speak to a financial advisor about setting up such a policy. You will certainly sleep a little bit better at night if you do!
Cover yourself against the financial implications of losing your job: Many insurance companies will, at a premium of course, insure you against the possible loss of your main source of income. You can normally choose different levels of cover and for how long you would like benefits to be paid.
Clarify your legal position: It is very important that you have a solid understanding of what your position would be in the case of a marriage break-up. A solicitor should be able to help you and your partner to assess this and also to draw up contracts in such a way that that it gives you and your spouse the maximum tax benefits as well as the best possible individual protection. This is obviously quite a complicated area and you would be well advised to appoint a solicitor with a great deal of experience in these kinds of matters.
Set up a contingency fund: The best way to deal with sudden demands for large amounts of cash would be to have funds available that were set aside specifically for this purposes. The setting up and management of contingency funds are discussed in more detail elsewhere in the book, but allow me to here just emphasise their immense importance to the long term survival of your business.
Have a clear ‘exit strategy’: Drawing a ‘line in the sand’ in terms of how much loss you are willing to sustain is not enough. You will also have to set out very clearly what you will do should you ever reach that line. Planning for this and putting it in writing could help you a great deal should this ever happen.
Get your will in order: Make very sure that your will goes way beyond your personal effects and circumstances. You should ideally also have some kind of ‘business will’ in place. A solicitor can help you to attach or combine this with your general will. Such a document should spell out in great detail what should happen with different parts of your business. Having this in place can save your family from a great deal of head scratching and even from serious hardship.
None of us would obviously like to see any of the events described above happening to us. But to pretend that such events do not happen or that, if they do, they will not have a serious impact on your business, is to be like an ostrich with its head in the sand!
To learn more about the other 76 mistakes that amateur property investors make, go to www.rhettlewis.com/77mistakes
UK's leading website with FREE resources for property investors, go to www.rhettlewis.com
Wednesday, April 01, 2009
Is this a April fools joke? I have received 6 letters from Mortgage Express to inform me that 6 of my monthly mortgage payments are between .08 and .18 pence per month. Lets hope I dont receive a letter tomorrow telling that it was a joke!
UK's leading website with FREE resources for property investors, go to www.rhettlewis.com
UK's leading website with FREE resources for property investors, go to www.rhettlewis.com
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