Rental payments & due dates

Any landlord who collects there own rents can very easily get themselves in a pickle when it come to the date that the rent is due.  Take for example this recent example on our legal forum where a landlord who has attempted to simplify things buy taking an odd few days of rent has in fact made life probably far more complicated.

The reality is that when it comes to rental payments it's very easy to get confused.  A classic one is when landlords try to calculate the final rental payment.  In essence the tenancy agreement is the starting point of when rent is due.  But as this example confirms.  We are all victims of the asymetrical Roman calender invented thousands of years ago.  Therefore if you try and be clever with your rental due dates.  It might be worth stopping to think first.

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BTL Mortgage Rates

Max LTV	Initial Rate	Term	Completion fee	Booking fee	Incentives	Overall Cost for Comparison
85%	5.49% Discount	2 Years	2.5%	£130.00	No	6.9% APR
85%	5.79% Discount	2 Years	3%	£130.00	No	7% APR
80%	4.79% Discount	2 Years	£2999	£130.00	No	8.2% APR
80%	6.09% Fixed	2 Years	3%	£130.00	No	7.1% APR
75%	3.85% Discount	2 Years	£2450	£250.00	No	5.4% APR
75%	4.89% Fixed	Aug 31 2014	£995	£0.00	No	5.1% APR
70%	4.25% Discount	2 Years	0%	£199.00	Free valuation up to £335 for purchases and remortgages and free legals on remortgages only.	6% APR
70%	3.74% Discount	Jul 31 2014	£899	£0.00	No	5.9% APR
60%	3.25% Discount	2 Years	£1750	£250.00	No	5.3% APR
60%	5.49% Fixed	2 Years	2.5%	£130.00	No	6.9% APR

Search the whole BTL mortgage market free
 
Email: info@propertyhawkbtlmortgages.co.uk

Tel: 029 2069 5446

IMPORTANT! Due to current market conditions, lenders are withdrawing and replacing products with little or no notice. Please check our website regularly to see the most up-to-date products available.

Your home may be repossessed if you do not keep up repayments on your mortgages.The Financial Services Authority does not regulate some forms of mortgage.

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Rental yields on the up!

Rental yields for landlords are on the up again according to PRS Trends Survey.

They reveal that landlords achieved a gross rental yield of 6.5% in the 2nd Quarter of 2012 as a result of continuing increasing rents and stagnant property values.  This compares to a rental yield of 6.2% at the back end of Q1.  Professional landlords are achieving a higher rental yield averaging a rental yield of 6.9%.

Landlords are also feeling quite positive about prospects with 44% of landlords expecting tenant demand to increase over the next 12 months.

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Adding a Section 8 Form in PM3

We wish the PM3 landlord software was as simple as 1-2-3. But there's always a balance between many functions and ease-of-use. When a landlord told us he couldn't find the Section 8 Form, I'd have liked to make it easier. Here are the five steps involved.

1. From the front screen click Tenancies
2. Pick the tenancy you want the form for
3. Click "Create new form for this tenancy"
4. Choose "Section 8 Notice with Schedule" from the drop down list and click Save Form
5. The form will appear on the list of forms for the tenancy - click it

Rents continue to rise

Rents continue to rise according to the Rentindex with the latest figures indicating the average buy-to-let rent has reached just shy of £612 up 2.5% over the last 3 months. The average buy-to-let rent now equals the record level achieved during the early Autumn of last year.  The latest Rentindex rental figures indicate that average rents are rising at an annualised rate of just over 4%.  This is at a faster rate than that announced recently by LSL Property Services who's backward looking figures recorded an annualised rise of  just 2.3% in April.  The LSL figures indicate that the North West is the area where rents are rising fastest with an increase of 1.7% in May.

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Tenancy Renewal in PM3

We've added a Renew Tenancy button in our PM3 software.

When you want to renew a tenancy, simply click the button. The system looks at the last rent request, and whether it's charged monthly, weekly etc. That gives you the end date for this tenancy. If you're happy with it, go ahead and renew the tenancy.

The current tenancy gets its start date set. The new tenancy starts from the next day, with the same rent and tenants.

Accidental landlords face new criteria

Accidental landlords are facing the threat of increased finance costs according to Paragon as well as harsher treatment from lenders who discover that residential property has been let out without first informing of the change of circumstance.


The FT looks at lenders treatment of accidental landlord

Deposit disputes & the propoganda

I was reading the Guardian usual landlord bashing piece today when I started to think about what was the thrust of the piece.  It seems to me to collect a number of pieces of dubious and unrelated facts together to come to the conclusion that:

"we don't like landlords because they are all capitalist crooks"

 My main point regarding the situation of landlords returning their tenants deposit is that the way the system has been set up it pushes both landlord and tenant (sensibly in my opinion) to resolve any disagreement over the deposit by agreement rather than automatically have to resort to arbitration or a long and expensive legal dispute.  The result of this is that agreeing the exact amount of rental deposit to be returned can take time as both tenant and landlord have to reflect and often research their exact legal position on various matters relating to the tenancy.  To simply label this as landlords "dragging their feet" is naive and slightly provocative.

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Rents push up say LSL

Average rents have gone up in May. LSL property Service data records a rise of 0.4 % across England and Wales, with private tenant paying an average of £712 a month. This is the second increase in a row and returns rents to January levels following falls in Feb and March.

It means rents are now 2.3% higher than a year ago.

David Newnes of LSL commented that "Rents have returned to the level seen before the impact of the stamp duty deadline rush by first-time buyers. Historically high rents and rock-bottom savings rates are hampering attempts to save for the larger deposits banks now require.In turn, fewer tenants are able to leave the sector, and the strong tenant competition is pushing up rents as a result, making saving for a deposit harder still,"

BTL mortgage best products

Max LTV	Initial Rate	Term	Completion fee	Booking fee	Incentives	Overall Cost for Comparison
85%	5.49% Discount	2 Years	2.5%	£130.00	No	6.9% APR
80%	4.79% Discount	2 Years	£2999	£130.00	No	8.2% APR
80%	4.99% Fixed	Aug 31 2014	3.5% (min £595)	£0.00	No	5.6% APR
75%	4.89% Fixed	Aug 31 2014	£995	£0.00	No	5.1% APR
75%	3.85% Discount	2 Years	£2450	£250.00	No	5.4% APR
70%	3.74% Discount	Jul 31 2014	£899	£0.00	No	5.9% APR
70%	4.25% Discount	2 Years	0%	£199.00	Free valuation up to £335 for purchases and remortgages and free legals on remortgages only.	6% APR
65%	3.99% Fixed	Jul 31 2014	£749	£250.00	Free valuation up to £700 for purchases and remortgages and free legals on remortgages only.	4.8% APR
65%	3.99% Tracker	May 31 2014	£1550	£195.00	Free Valuation & Legal Fee Assist (maximum £495)	5.9% APR
60%	3.25% Discount	2 Years	£1750	£250.00	No	5.3% APR
60%	3.89% Discount	May 31 2014	£999	£0.00	Free valuation for purchases and remortgages and free legals on remortgages only.	5% APR

Search the whole BTL mortgage market free
 
Email: info@propertyhawkbtlmortgages.co.uk

Tel: 029 2069 5446

IMPORTANT! Due to current market conditions, lenders are withdrawing and replacing products with little or no notice. Please check our website regularly to see the most up-to-date products available.

Your home may be repossessed if you do not keep up repayments on your mortgages.The Financial Services Authority does not regulate some forms of mortgage.

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Multiple Accounts in PM3

Our software allows you to have more than one account with the same email user name and password. This may have been a mistake - certainly it confuses users.

We're working towards fixing this. The first step has been to add a Multiple Accounts button on the My Details page, though this only displays if you do have duplicate accounts. You can then Switch to one of the other accounts.

We will see how users want us to extend this. That might be to delete old accounts or transfer data between accounts.

UK property prices flat-line

During the 12 months leading up to  April 2012, UK property prices pretty much flat-lined according to data just published by the Office of National Statistics shows, which showed growth of just 1.4 % over the year.

England's tiny growth  of 1.7% was canceled out by declines in Scotland, Wales and Northern Ireland of  0.3%, 1.1%, and 8.1%.

The majority of England's increase was driven by the were driven by a 4.9% rise in London, and other lesser increases across the rest of the South of England. The Midlands and the North saw small declines.

Let's hope the English team fares a little better in tonights final euro group game.

Read more in This is Money
 

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Property at auction cheap shocker

Auctions properties stills seem to be  selling  below average house prices.
Of the 2,034 properties sold at auction in May the average price was just £128,466, according to stats from the EI Group.

Twenty percent less than the 20%  average house price of £160,417 in England and Wales.
 
EI Group managing director David Sandeman commented that  “Lots offered and sold in the month were both up on last year (by 7.3% and 8% respectively), whilst larger increases are evident in the rolling quarter and year,”

Interesting stats but what does it tell us that we don't already know, ie, it tends to be the duff property that cant sell that ends up at the property auctions. So expect to pay less for property at auction, but also don't be surprised by subsidence, finding your property is directly under a flight path, rowdy neighbours, rising damp, seventies decoration ( that's pretty much a cert, dog smells, sitting tenants, infestations, Homes under the Hammer TV crew... I'm sure you can think of a few more.

But don't let me put you off, there are true bargains to be had, but be cautious.


Join our landlord legal forum for free expert advice.

Arbitrage opportunity Durham

Landlords looking to engage in a little bit of arbitrage by splitting up an investment block of 19 apartments and houses in Durham and selling them off individually should check out Paxton Court.  The rental yield on the projected asking price is 8.5%.  Not fantastically high for the north but given the potential capital raising opportunities potentially high enough to tempt some interest who wants to actively trade their investments.

Paxton Court, Pity Me, Durham DH1 5DE
Freehold Investment Sale of 19 properties
Excellent break up opportunity 8 x 2 bedroom apartments, 5 x 4 bedroom townhouses and 2 x 5 bedroom townhouses 4 x apartments sold off on long leases.  Total income £119,900 (to include ground rent income)
Fully Let

For sale £1,400,000

For further information, please contact:

Anthony Hart
Email: anthony.hart@allsop.co.uk
Tel: 0113 243 7950

James Wilson
Email: james.wilson@allsop.co.uk
Tel: 0113 236 6679


Mortgage Search  - best rates

Building a property empire

Many landlords harbour dreams of building a vast property empire.  Well it's perfectly possible.

We have covered in the past an interview with Fergus Wilson the King of buy-to-let giving his tips on  how to turn a few buy-to-lets into a vast lettings empire.

Paragon Mortgages reported recently in their quarterly survey that 21% of landlords were planning to buy more buy-to-let properties indicating a decided appetite for landlords to increase their portfolio size.

So you still want to build a buy-to-let empire.  What are the secrets?  Firstly have a look at the 3 pillars of buy-to-let.  You need to get organised if you are looking at scaling up your lettings business so have a look at our FREE property management software. But above everything else in the current climate it's access to finance that is going to enable you to expand and grow your property empire. Without the finance landlords can't do the deals to make their lettings business grow.  Property Hawk Mortgages has been set up especially to target the needs of landlords and buy-to-let landlords.  So why not register to day and start talking to real buy-to-let finance experts to make your buy-to-let empire become a reality.

Finally one other thing.  To build a portfolio you will need patience.  Rome wasn't built in a day and neither will your buy-to-let empire be.  Good luck and happy investing.

Property Hawk Mortgages - investing expertise

Landlords need tax cuts

I've mentioned before that real improvements in the conditions in the private rental sector are going to need changes in the tax system to incentivise investment in their buy-to-let by landlords.  It seems that I'm not the only one that thinks this way.  The Rowntree Foundation have just issued their report Housing Options and Solutions for Young People in 2020.  It concludes that young people are the ones that are suffering from the current high cost of housing and lack of mortgages.

One of their suggestions to solve the emerging problem is smarter incentives for landlords including tax breaks.

Kathleen Kelly of the Rowntree Foundation comments:

“Our badly functioning housing system will see those on the lowest incomes really struggling to compete in the competitive rental market of 2020.
“Renting is likely to be the only game in town and young people are facing fierce competition to secure a home in what is an already diminished supply of housing.
“With 400,000 vulnerable young people, including families, on the bottom rung of a three-tier private renting system we need to avoid turning a housing crisis into a homelessness disaster.”

There is no doubt that it's 'tough times' if you are young and this especially applies to securing housing.  It is nice to see that the Foundation are talking about landlords and buy-to-let as being part of the solution not just the problem.

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3.85% 2 year discount 75% LTV

A new buy-to-let mortgage product is available through PropertyHawk Mortgages -  a 3.85% 2 year discount up to 75% LTV with a flat fee and no early repayment charge!

This excellent buy-to-let mortgage is with Hinckley & Rugby Building Society. This 3.85% 2 year discount with a flat fee is highly competitive in the 75% LTV bracket and could be a great choice for landlords.

Andy Young at Property Hawk Mortgages says: “We are continually looking to develop our range of exclusive buy-to-let products with lenders and have written a substantial level of business with Hinckley & Rugby during the last 12 months. This specially designed exclusive is very competitive in the 75% LTV bracket and should attract a high level of interest from brokers and their landlord clients.”

Gill Vernau at Hinckley & Rugby Building Society says: “There is currently strong demand from landlords in the UK looking for buy-to-let finance. We are looking to attract good quality applications for loans up to 75% LTV and this product should deliver our target levels of new business.”
Search the whole BTL mortgage market free

Email: info@propertyhawkbtlmortgages.co.uk

Tel: 029 2069 5446

IMPORTANT! Due to current market conditions, lenders are withdrawing and replacing products with little or no notice. Please check our website regularly to see the most up-to-date products available.

Your home may be repossessed if you do not keep up repayments on your mortgages.The Financial Services Authority does not regulate some forms of mortgage.

BTL mortgage current rates

Max LTV	Initial Rate	Term	Completion fee	Booking fee	Incentives	Overall Cost for Comparison
85%	5.49% Discount	2 Years	2.5%	£130.00	No	6.9% APR
85%	5.79% Discount	2 Years	3%	£130.00	No	7% APR
80%	4.79% Discount	2 Years	£2999	£130.00	No	8.2% APR
80%	6.09% Fixed	2 Years	3%	£130.00	No	7.1% APR
75%	3.85% Discount	2 Years	£2450	£250.00	No	5.4% APR
75%	4.89% Fixed	Aug 31 2014	£995	£0.00	No	5.1% APR
70%	4.25% Discount	2 Years	0%	£199.00	Free valuation up to £335 for purchases and remortgages and free legals on remortgages only.	6% APR
70%	3.74% Discount	Jul 31 2014	£899	£0.00	No	5.9% APR
60%	3.25% Discount	2 Years	£1750	£250.00	No	5.3% APR
60%	5.49% Fixed	2 Years	2.5%	£130.00	No	6.9% APR

Search the whole BTL mortgage market free
 
Email: info@propertyhawkbtlmortgages.co.uk

Tel: 029 2069 5446

IMPORTANT! Due to current market conditions, lenders are withdrawing and replacing products with little or no notice. Please check our website regularly to see the most up-to-date products available.

Your home may be repossessed if you do not keep up repayments on your mortgages.The Financial Services Authority does not regulate some forms of mortgage.

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Buy-to-let doesn't add up?!

I read with interest a recent piece on msn about buy-to-let.  The poor unfortunate landlord claims that after 5 years of being a landlord he was actually out of pocket by £3500.  Was he an inept landlord or is it just impossible to make buy-to-let work these days?  I have sympathy with his travails.  It ain't easy being a first time landlord and it's a steep learning curve.  Inevitably you make mistakes and sometimes these can be costly.  However, the key message that comes out from his experience is that your pay back for being a landlord isn't likely in the short and even medium term.  The reality is that you should work on a at least a 15 year time frame.  If he stuck at it for another 10 years then he would have been able to answer the question more accurately and possibly come up with a different conclusion.  Have a read and see whether you agree.

Mortgage Search - best online rates

Problems with squatters?

Are you a landlord with squatters or have you had a recent problem with squatters in your buy-to-let property?  If so this could be your chance to voice your views on the subject.

A company making a documentary for TV are looking for landlords to give their side of the story.  As landlords should be aware.  The government is bring in a new law relating to squatting this September making it a criminal offence.  Is this law long overdue or just down right draconian?

To air your views on TV send details of your experience to : squattersproject@gmail.com

I look forward to seeing some Property Hawk landlords putting in their 'penneth worth'.

Landlord insurance - 5 star landlord insurance

Sandwell landlord fined

A landlord has been fine £5,723 for not maintaining a rental property in Smethwick.
Sukraj Singh Barham pleaded guilty to failing to comply with an improvement notice served by Sandwell Council after the discovery of dangerous electrics, an inconsistant supply of hot water or heating, damp and mould growth and loose and uneven paving.

The council brought the case following complaints about the  disrepair of the rental property.

Come on landlords we can do better than this.

For free legal advice join our Landlord Legal Forum

Rental sector predicted to grow to 2025

Renting is set to increase according a study from Cambridge University, that predicts that
home ownership will fall to 27% by 2025, compared with 43% in 1993-94 and 35% now.

The prediction is that more families will be forced to remain in rented accommodation because home ownership will be increasingly unaffordable.

The report predicts that more than a third (36%) of British households will be renting by 2025.

Scots propose changes to stamp duty

The Scottish Government are on the march, bag pipes are blaring and the pants are off ( underneath kilts anyway).

Read through their full proposals for the changes to the Scottish Building and Transactions Tax

The Scots are set to take control of their taxation in 2016.

Get expert legal advice on our landlord legal forum

Buy-to-let mortgage gets reprieve

Landlords concerned about the prospect of the EU killing off the Great British buy-to-let mortgage have been granted a reprieve after a committee scrutinising the European Commission's mortgage credit directive voted to allow the UK to exclude buy-to-let mortgages from the new rules.  Property Hawk has been campaigning against the new rules and with over 3000 landlords signing our petition to date we know that you feel the same.

We have always been clear in our opposition arguing that it would prejudice investment in the private rented sector and particularly prevent newbie landlords investing in property for the first time as the judged affordability by lenders would have to be based on an individuals income as a posed to the relationship between the rent and cost of borrowing (an initiative which heralded the arrival of buy-to-let in the the late 90s).

Landlords cannot breath a complete sigh of relief yet though.  The amendments to the original proposal must now be voted through the European Parliament.   The European Council will then decide its position and then the three bodies, the council, parliament and commission will then enter negotiations over the final text.

The saga looks set to continue although the outcome looks more promising.  We'll keep you posted!

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Stamp duty holiday ending

Effects of the Stamp Duty Holiday Ending
As we all know the stamp duty holiday ended earlier on in the year. Before it came to an end there was a sudden rush to purchasing a home but since then, the property market has become a little dormant, this is according to new figures from Halifax.

The value of properties have declined by 0.1 per cent annually and currently prices seem to be making little change and on average are around £160,941.

However, when considering what happened in May, house prices have risen by 0.5 per cent which means the continued rise and fall of property prices remains erratic and unpredictable. This 0.5 per cent increase when compared to April was actually a 2.3 per cent decline.

Most property market reports have been significantly influenced by the stamp duty holiday coming to an end. The break meant that first time buyers didn’t have to pay stamp duty for properties that were valued under £250,000 before the end of March.

The amount of buyers that were seen in March meant that in April, when the stamp duty had to be paid again, the amount of sales declined by 18 per cent. Halifax predicts that without any support in a similar way to the holiday, this may mean that property prices will remain stagnant.

Martin Ellis, who is the chief economist at Halifax said, “We expect this situation to continue with prices likely to still be around today’s levels at the end of 2012 as the ongoing tough economic environment constrains the housing demand.

“Recent monthly house sales figures have clearly been affected by the ending of the stamp duty holiday for first time buyers in late March.”

Whilst this is bad news for first time buyers it is great for landlords who are still seeing an increased rate of people looking to rent and for the landlord industry as a whole, including landlords insurance companies who are seeing an increase in people renting out properties and purchasing cover. 

BTL mortgages best products

Max LTV	Initial Rate	Term	Completion fee	Booking fee	Incentives	Overall Cost for Comparison
80%	4.79% Discount	2 Years	£2999	£130.00	No	8.2% APR
80%	5.99% Fixed	Jul 31 2014	£1100	£199.00	No	6.5% APR
75%	4.98% Fixed	2 Years	£1999	£0.00	Free legal fees for remortgage	5.7% APR
75%	4.89% Fixed	Aug 31 2014	£995	£0.00	No	5.1% APR
75%	5.35% Fixed	Jun 30 2014	3%	£150.00	No	6.1% APR
70%	4.25% Discount	2 Years	0%	£199.00	Free valuation up to £335 for purchases and remortgages and free legals on remortgages only.	6% APR
70%	3.74% Discount	Jul 31 2014	£899	£0.00	No	5.9% APR
65%	3.99% Tracker	Jun 30 2014	0%	£250.00	Free valuation up to £700 for purchases and remortgages and free legals on remortgages only.	4.7% APR
65%	3.49% Tracker	Aug 31 2014	3.5% (min £595)	£0.00	No	5.2% APR
60%	3.89% Discount	May 31 2014	£999	£0.00	Free valuation for purchases and remortgages and free legals on remortgages only.	5% APR
60%	3.25% Discount	2 Years	£1750	£250.00	No	5.3% APR

Search the whole BTL mortgage market free

Email: info@propertyhawkbtlmortgages.co.uk

Tel: 029 2069 5446

IMPORTANT! Due to current market conditions, lenders are withdrawing and replacing products with little or no notice. Please check our website regularly to see the most up-to-date products available.

Your home may be repossessed if you do not keep up repayments on your mortgages.The Financial Services Authority does not regulate some forms of mortgage.

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Auction Yields Results

Property Hawk is constantly reminding property investors to pay attention to the rental yields of any potential property investment.  The latest yield analysis from Allsop's regular auction on the 29th 31st of May reveal that it's still possible to get healthy yields from residential property bought at auction let with an Assured Shorthold Tenancy.  Of the 265 lots that were sold 79 were residential properties sold with an AST.  The average yield on these properties was 8.7%

The next residential auction takes place on the 17th & 18th July.

Mortgage Search - get me the best rate

66% of landlords not increased rents

A recent survey of landlords by the NLA reveals that two thirds of landlords have not increased rents in the last 12 months. 

Despite rents being on an upward trajectory many landlords seem to be content to be fully let rather than go for 'top dollar'.  If you are interested in increasing your rent then check out my recent article on Increasing the rent.

 Landlord Insurance - the professional solution

Do landlords need letting agents?

Landlords have an uneasy relationship with letting agents.  Many of us get tired of paying large fees out for no real apparent service.  I'm talking in particularly about management fees paid to letting agents employed on a managed service where letting agents are allegedly responsible for managing all aspects of the tenancy including dealing with maintenance and non payment issues.

A recent survey carried out by the NLA suggests that over a half (55%) of landlords engage the services of a letting agent, with 66% are either very or quite satisfied with their agency.  Are you satisfied with your letting agent or do you feel you are being over charged and under served?

My experience to date is that I found letting agents very useful for the letting of my properties.  They seem to be able to do it more quickly than using some of the free and paid for advertising property portals. This could just be that my letting agent is pretty good or maybe it's a function of the current market where there is a shortage of reasonable quality property to let.  I've tried a full management service by letting agents but found that I was shelling out hundreds of pounds for not much.

Do landlords really need letting agents?  It would be interested to here from both sides of the debate...

Landlord Insurance - professional rates