LATEST: Mortgage lender confidence in BTL market returns but with ‘green strings’ attached

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One of the UK’s largest providers of buy-to-let mortgage products TMW has returned to offering 80% loan-to-value (LTV) mortgage but added a green sting in the tail to the offering.

Until now it, like most other lenders, it had been requiring landlords to provide a 25% deposit via a 75% LTV.

The Mortgage Works (TMW) which is the intermediary platform run by the Nationwide, says the new 80% LTV loans will be for purchases, remortgages and further advances, and include buy-to-let, let-to-buy and limited company landlords.

But the lender has joined other smaller mortgage providers to insist that rental properties must have an EPC rating of C or above.

Until recently, only a clutch of smaller specialist mortgage lenders and building societies had stipulated a minimum EPC rating of C, instead following the current legal minimum of an E rating.

Lenders like TMW are essentially moving ahead of government policy. Ministers last year announced that they intend to bring in a minimum EPC ‘C’ rating for all rented properties by 2030.

Daniel Lee, Principal Broker at Total Landlord Mortgages, says TMW’s decision to begin once more offering 80% LTV mortgage is a significant vote of confidence in the buy-to-let market after a difficult period during which, for example, many lenders withdrew entirely from HMO mortgage lending.

“The requirement for an EPC C or above is also an indication that TMW is behind the government’s environmental policy agenda and that landlords need to take the green performance of their properties more seriously in the coming months and years,” says Lee.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LATEST: Mortgage lender confidence in BTL market returns but with ‘green strings’ attached | LandlordZONE.

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LATEST: Mortgage lender confidence in BTR market returns but with ‘green strings’ attached

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One of the UK’s largest providers of buy-to-let mortgage products TMW has returned to offering 80% loan-to-value (LTV) mortgage but added a green sting in the tail to the offering.

Until now it, like most other lenders, it had been requiring landlords to provide a 25% deposit via a 75% LTV.

The Mortgage Works (TMW) which is the intermediary platform run by the Nationwide, says the new 80% LTV loans will be for purchases, remortgages and further advances, and include buy-to-let, let-to-buy and limited company landlords.

But the lender has joined other smaller mortgage providers to insist that rental properties must have an EPC rating of C or above.

Until recently, only a clutch of smaller specialist mortgage lenders and building societies had stipulated a minimum EPC rating of C, instead following the current legal minimum of an E rating.

Lenders like TMW are essentially moving ahead of government policy. Ministers last year announced that they intend to bring in a minimum EPC ‘C’ rating for all rented properties by 2030.

Daniel Lee, Principal Broker at Total Landlord Mortgages, says TMW’s decision to begin once more offering 80% LTV mortgage is a significant vote of confidence in the buy-to-let market after a difficult period during which, for example, many lenders withdrew entirely from HMO mortgage lending.

“The requirement for an EPC C or above is also an indication that TMW is behind the government’s environmental policy agenda and that landlords need to take the green performance of their properties more seriously in the coming months and years,” says Lee.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LATEST: Mortgage lender confidence in BTR market returns but with ‘green strings’ attached | LandlordZONE.

View Full Article: LATEST: Mortgage lender confidence in BTR market returns but with ‘green strings’ attached

Clothes giant Gap is to close all its shops in UK and go online only

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The US retail fashion giant is closing all of its 81 stores by the end of September

Gap has confirmed it will close all of its stores in the UK and Ireland, and sell off its European outlets as the company moves to an online business model.

The long established chain will close all its 81 stores in the UK and Ireland on a phased plan over the month of September. The company had already decided not to renew leases on 19 UK stores in June, but has now embarked on a radical change of direction, abandoning the UK High Street for a solely on-line offer.

The decision is the result of a strategic review carried out by the San Francisco-based company’s Europe-wide operations that commenced last October. Gap said on Wednesday that its stores in Italy and France will also be sold off, to be run by different franchise operators.

Gap is not alone in its move to online, with Boohoo recently taking on several traditional UK High Street brands, including the Debenhams label and fashion sub-brands including Manta Ray and Principles, but closing all their bricks and mortar stores to take the business online.

Even John Lewis is closing several selected unprofitable stores as the famous retail partnership says it’s online sales now hover around 70%.

The move marks a total physical retreat from Europe by Gap to go virtual. The mass market fashion retailer once had the same UK market share as Primark. It is not yet clear how many employees will be affected by this radical change in strategy, though the company has said it will soon start a consultation process with all staff.

Gap’s home market in America still remains the company’s largest market for the brand and the parent company. It also owns brands including Old Navy and Banana Republic, though all of the Banana Republic stores were closed in the UK three years ago.

European moves

Gap has announced that it is in talks with the French real estate firm Financiaire Immobiliere Bordelaise to take over all company-operated stores in France by October. In Italy it is in negotiations to sell its locations to an undisclosed partner.

“In the United Kingdom and Europe, we are going to maintain our Gap online business,” a GAP spokesperson says.

“The e-commerce business continues to grow and we want to meet our customers where they are shopping. We’re becoming a digital-first business and we’re looking for a partner to help drive our online business.

“However, due to market dynamics in the United Kingdom and the Republic of Ireland, we shared with our team today that we are proposing to close all company-operated Gap Speciality and Gap Outlet stores in the United Kingdom and Republic of Ireland in a phased manner from the end of August through the end of September 2021.

“We are thoughtfully moving through the consultation process with our European team, and we will provide support and transition assistance for our colleagues as we look to wind down stores.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Clothes giant Gap is to close all its shops in UK and go online only | LandlordZONE.

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LATEST: Tenant demand for property ‘extremely strong’ says latest index

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The lettings market saw a 30% drop in voids last month alongside an 8% rise in average rents.  

Goodlord’s latest Rental Index for June reveals the average void period in England is now 16 days, down from 22 days, with month-on-month decreases seen in nearly all regions.

The South West and North East both saw a huge 50% drop while the South West moved from 18 days to just eight and the North East dropped from 30 days (May’s highest rate) to 13 days. 

The only region to see an increase in void periods was the West Midlands – from 18 days to 23 days – after the region experienced a particularly busy May. 

Double digits

Landlords in every region were also able to increase rents during June. The North East and the South West both recorded growth of 11% and 10% respectively, with all other English regions seeing a boost. 

The West Midlands recorded a very marginal 0.05% rise in rents. The average rent for a property in England is now £932, an 8% increase on May’s figure of £885. 

Tom Mundy, COO at Goodlord, says trade is brisk country-wide and tenant demand is extremely strong, with increasing numbers of people looking to move as the remaining restrictions are lifted.

“Rents are at levels we’d expect to see during the summer,” he adds.

“In fact, average rents were higher last month than June 2019, pre-pandemic, showing that the lettings market has continued to go from strength to strength despite the turbulence of the last 16 months.” 

Read advice on voids.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LATEST: Tenant demand for property ‘extremely strong’ says latest index | LandlordZONE.

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Property Market To Crash? – July 2021 Update

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Is the UK Property Market about to crash?!

In this video below, I go through my July update on the property market and my predictions of the future of property prices now that the stamp duty holiday is coming to an end.

The post Property Market To Crash? – July 2021 Update appeared first on Property118.

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Tenant rights at the end of an agricultural licence?

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Could anyone please offer advice or contacts for tenant rights at the end of a tenancy, which is an agricultural licence? This is a different area of letting to my own business.

I have multiple examples of tenants being outrageously overcharged for the outgoing condition of their property

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Letting agent’s charges reveal ‘reasonable costs’ loophole in tenant fees ban

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A tenant who was billed £411 for finding her replacement by LudlowThompson has challenged the lettings agency for making unreasonable demands.

Matt Quinton says after his partner disputed the charge and then complained to the Property Ombudsman, LudlowThompson first offered a refund of £333 but then asked them to sign a non-disclosure agreement, promising not to tell anyone about the deal and to inform the Ombudsman that it had resolved the complaint amicably.

Quinton told the Mail Online that his partner moved out of the two-bedroom flat in Tooting (pictured), but as she was part-way through her contract, needed to novate her tenancy — find someone to take over the remaining term in her place — which she did.

She was billed £411 by LudlowThompson, including a charge of £229 for the creation of a new tenancy agreement, as well as inspection and deposit registration fees.

A LudlowThompson spokesman told LandlordZONE: “It is only the landlord’s reasonable costs that we seek to recoup from the tenant, for example the cost of signing up a new tenancy agreement.

“These costs are only charged where the tenant seeks to end their tenancy contract early. Most people would agree that it would not be fair for the landlord to bear the costs created by an early end to the tenancy.”

Quinton said the Act, which went live in full last May, states that fees for a novation must be capped at £50 or cover reasonable costs. He added: “Before the fees crackdown, the firm charged £432 for a novation. Surely the landmark legislation should have achieved more than a £20 reduction?”

Since the law changed a year ago, the Property Ombudsman has registered 207 complaints over unlawful fees — and has so far supported 58 of them while 61 were resolved.

A spokeswoman tells LandlordZONE: “We would strongly urge tenants who find themselves in this position to think carefully about agreeing to anything and to consider raising a formal complaint with the agent, with a view to escalating the issue with the agent’s redress scheme and trading standards.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Letting agent’s charges reveal ‘reasonable costs’ loophole in tenant fees ban | LandlordZONE.

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