Why is the Founder of Property118 Selling His Best Property?

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It has nothing whatsoever to do with money!

Due to having no mortgage on this property, Mark wasn’t at all affected by the Section 24 restrictions on finance cost relief or rising interest rates.

As many Property118 Members will know

View Full Article: Why is the Founder of Property118 Selling His Best Property?

Can the Directors only invite ‘share of freeholders’ to the AGM, excluding leaseholders?

admin    Uncategorized     agents

Hello, I wonder if you could answer this query please? I live in a mixed 14 flat block where some are ‘share of freehold’ and some are ‘leasehold’. There is a maintenance/service company in place to whom both groups pay annual charges and two Directors of the company (of freeholders).

View Full Article: Can the Directors only invite ‘share of freeholders’ to the AGM, excluding leaseholders?

Councils’ frosty reception for HMOs sees number decline in key regions

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England’s HMO market has shrunk by more than 21,000 properties in the last two years as local councils ramp up planning rules and licensing schemes.

Numbers were down by -2.4% to 489,701 last year, having already seen a -1.7% drop in 2021, according to figures from Octane Capital.

The East Midlands has seen the largest reduction, with HMO stock levels down -26.1% in 2022, while in the North East stock fell by -15.8%.

The South East (-6.7%), London (-5.2%), and North West (-1.6%) have also recorded drops. Despite this, the capital remains home to the greatest proportion of HMOs, accounting for 29% of England’s total stock.

Some regions have seen an increase, however, with levels climbing across the West Midlands (+16.9%), Yorkshire and the Humber (+11.2%), the South West (+0.6%) and East of England (+0.6%).

Slide continues

Octane Capital CEO, Jonathan Samuels (pictured), says numbers have continued to slide since the introduction of tighter licensing rules at the end of 2018.

“While any attempts to raise living standards for the nation’s tenants should be welcomed, it’s imperative that we also incentivise investors to remain within the sector,” he says. 

“Failing to do so will only see the level of available rental properties continue to fall, driving the cost of renting ever higher in the process, at the expense of the nation’s renters.”

Along with more authorities introducing Article 4 conditions, the proliferation of landlord licensing schemes is also having an impact.

Record

A record 525 schemes are expected to be live in England and Wales by the summer, according to geospatial technology company Kamma which reports that councils launched 52 schemes and consultations last year. Councils have also stepped up their efforts to target the PRS by hitting errant landlords and agents with larger average fines.

Read more about HMOs.

View Full Article: Councils’ frosty reception for HMOs sees number decline in key regions

Thank you and Something for you!

admin    Uncategorized     agents

We have a very special gift for you this Sunday, but you need to claim it now.

Over the last two weeks, Simon Zutshi has been sharing what he thinks is the best strategy for the 2023 falling property market.

View Full Article: Thank you and Something for you!

Rumble with the Agents seeks property people to step into the ring for charity

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The property industry’s Rumble with the Agents charity event is to host its eighth evening of boxing and fund-raising in North London on Thursday 22^nd June, it has been announced.

Founder Paul Shamplina (pictured), Chief Commercial Officer for Hamilton Fraser, is looking for male and female agents, landlords, developers, property managers or suppliers ready to step into the ring.

“It’s early in the year and many people are looking to lose weight and get fit so this is a perfect opportunity to do that during the training and also raise cash for charity,” he says.

Held at the banqueting suite at the Holiday Inn Hotel in Finchley, the event will raise money for Gratitude, a Hertfordshire food charity based in Borehamwood, near to the HQ offices of Hamilton Fraser.

It takes food that’s good to eat but can’t be sold in shops because of packaging errors or overproduction and then redistributes the food to the local community through free meals projects, community pantries and a network of nearby charities.

On 22^nd June those attending will see five two-minute rounds of boxing between fighters with various levels of experience and all hailing from the property sector.

The event is a popular gathering of leading figures within the industry including corporate and private landlords, agents, developers and suppliers, says Shamplina, and features a complimentary drinks bar.

Training

“Every year we provide free structured training for the fighters at our training gym at JAB boxing in Bushey which will start later this month,” he says.

“We hope to raise as much money as possible and add to the £115,000 we’re already raised at the previous event; at last year’s event alone we had over £3 billion of property represented in the room and it’s a great event for network as well.”

Shamplina is also planning a second event this December in Manchester and is seeking agents from the North West of England keen to get involved and box.

For more information visit RumbleWithTheAgents.com or email the organisation or call 07790569501.

View Full Article: Rumble with the Agents seeks property people to step into the ring for charity

BoE base rate rise – Experts react on impact for landlords

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Property and finance experts have reacted to the news that the Bank of England has raised the base rate from 3.5% to 4%.

They highlight that the mortgage market has been preparing for the base rate increase by the Bank and have factored this into their product ranges.

View Full Article: BoE base rate rise – Experts react on impact for landlords

MORTGAGE SHOCK: Bank of England hikes base rate by 0.5% to 4%

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The Bank of England has raised interest rates for the 10th consecutive time as it battles inflation – a move likely to hit thousands of investors with variable rate mortgages and those forced to renew fixed-rate deals.

The base rate has gone up by half a percent to 4%, the highest since autumn 2008, as the Bank failed to apply a smaller increase in response to the weakening UK housing market.

Yesterday, Nationwide reported that house prices have fallen for the fifth month in a row, with the average property now worth £258,297, almost £4,000 less than in December.

Rates raised

The Bank has been raising rates successively for more than a year. In December 2021 the base rate stood at just 0.1% as policymakers tried to encourage consumer spending after Covid slowed the economy.

It is now hoped that the peak in interest rates is imminent. In its latest assessment of the economy, the Bank says the UK is set to enter recession this year but that this will be shorter than previously thought. It expects the economy to fall slightly in 2023 as energy costs and other prices continue to ease.

Landlords with interest-only loans face a restricted choice when refinancing because rental income, even with rent rises, might no longer meet the lender’s required interest coverage.

A recent survey of 1,001 landlords by bridging loan broker, Finbri, found that 52% of landlords are looking to increase rents if the base rate increases to 4.5%. 

Nathan Emerson, CEO of Propertymark, says despite the challenge of higher mortgage payments, due to the demand for homes continuing to outweigh the number of available properties, this is fuelling a more stable market. He adds: “With banks stress testing people’s finances for many years, arrears and repossessions aren’t drastically increasing and we are therefore seeing a levelling out of the market and a return to more normal levels of housing transactions.”

Reaction

Samuel Mather Holgate of Mathew and Murray Financial

“It’s no surprise the Bank of England pursued this ridiculous policy. They are inflicting pain on a population reeling from higher taxes, sky high inflation and already high rates,” he says.

“Inflation will fall off once the energy figures have been in the numbers for a year, so will be back to target in a few months. It’s absurd that they are hiking rates only to slash them again in a few months’ time.

“The consequences of this will be felt by the most vulnerable the hardest. A blinkered decision by the Bank.”

Simon Gammon, Managing Partner at Knight Frank Finance, he says:

“Today’s hike was baked into fixed rate mortgages, so we don’t expect much movement during the days ahead. Fixed rate mortgages are now as cheap as they are going to be for some time, or at the very least are close to bottoming out. While rates are significantly higher than they were twelve months ago, buyers are adjusting to the ‘new normal’ and activity levels have recovered during the relative stability of January. 

“Before Thursday’s decision, the best five year fixed products could be found as low as 4.19%, while the best trackers sat at around 3.94%.

“Tracker rates will now rise and we now expect many five year fixed rate products to be cheaper than tracker products for the first time since the mini-budget.

“Many buyers have been waiting on penalty-free tracker products for fixed rates to fall. This could be the moment that we see large numbers opt to switch to fixed products, because it’s unlikely that we’ll see rates fall much further.” 

View Full Article: MORTGAGE SHOCK: Bank of England hikes base rate by 0.5% to 4%

Estate Agent will not refund reservation deposit?

admin    Uncategorized     agents

Hello, I paid a reservation deposit of £1,000 for BTL property for it to be taken off the market.

I commenced all legal work and applied for a mortgage with the first lender and they down valued the property by about £10,000.

View Full Article: Estate Agent will not refund reservation deposit?

Yields remain stable, but rent rises highly likely

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More landlords will decide to raise rents in 2023 because profitability has taken a hit, according to a report.

Foundation Home Loans says that larger landlords are 20% more likely than smaller landlords to put up rents in the first six months of 2023 after profits fell between the third and final quarter of 2022.

View Full Article: Yields remain stable, but rent rises highly likely

Landlords are taking action as tax bills and refurb costs rise above rent yields

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The festive period is over, and as we enter the second month of 2023, the year has well and truly begun. For many landlords, 2022 was a mixture of tough decisions, calls to action, and the realisation of a potentially rocky road ahead. After years of profitable property portfolios, landlords started to feel the pinch.

The situation was exasperated by a hike in interest rates, an economic downturn, and in the last few months of the year many LandlordZONE landlords made the decision that the best course of action was to sell their portfolios and exit the market.

But for those that made it through to January, the questions remain: should I be thinking of selling? Is it too late? Is selling better than holding on to my buy-to-lets?

To answer this, it’s time to realistically take stock of what the current situation for many of us might be:

1. Tax bills haven’t gone away, and in January they need paying
2. Many landlords are still unable to get round to sorting out their empty properties and refurbs
3. There’s less cash in pot due to rate rises, so even if you don’t sell all your properties, selling some properties to raise funds is a sensible option
4. Tenants are in arrears and many are paying low rents with some skipping December rents to pay for Christmas, having a huge effect on landlords
5. There’s another rate rise due in February, so landlords need to act fast.

For many of the “golden era” landlords, it’s clear that we need to take action, but luckily there’s still time to exit completely or sell partially to raise the finance you need to weather the storm. In fact, it makes sense that so many landlords have decided to sell most of their portfolio but keep collecting rental income on just their top few profitable properties.

Whichever category you fall into, there’s no doubt that standard Estate Agents simply won’t cut it. By the time they sell, if they sell, the situation is likely to have got a lot worse and house prices will undoubtedly have dropped further. So if now is the best time to sell, where do you turn?

Landlord Sales Agency, a company created by landlords for landlords, are industry experts in selling tenanted properties – whether it’s with tenants in situ, or if you need help making sure they’re out.

Our database of over 30,000 private buyers and our extensive buyers network means we’re able to sell your properties in weeks rather than months. Most of our properties sell in less than 28 days.

No matter what condition, our “formula-one” team will work around the clock to solve every single issue your portfolio might have.

What’s more, for such a fast sale, landlords don’t have to worry about compromising on the sale price. We typically achieve 85% of the market value, and for that we cover all the costs, solve all your property and tenant issues and take away all the hassle that comes with selling the portfolio.

This makes complete financial sense when compared to estate agents who might get you 100% but with large fees on top, plus a much lower price if they’re only able to sell months down the line and therefore at a much lower price. It’s better to take 85% of a high price now, than 100% of a lower price with fees on top. We’re also completely transparent, so you know exactly what we’re making.

In fact, we’re so confident in our ability to sell your properties fast and for the highest price that in some cases we can even help with cash advances.

You simply have nothing to lose and everything to gain. It’s time to let go of the stress, let the experts take over, and get you set up in the strongest financial position possible for the year ahead.

Contact Landlord Sales Agency:

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View Full Article: Landlords are taking action as tax bills and refurb costs rise above rent yields