Paragon set to return to landlord lending

Paragon are set to return to consumer lending after the BTL lender finished lending direct to landlords following the credit crunch.

Paragon's Chief Executive Nigel Terrington said: “The group is continuing to prepare for a return to new consumer finance lending, which is likely to be undertaken within a banking subsidiary. Further information on the progress of this business line will be provided in due course.

Read more in FT Advisor

Search the whole BTL mortgage market free

Email: info@propertyhawkbtlmortgages.co.uk 

Tel: 01494 894639

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.

NLA report landlords concerns over UC

Offensive stereotyping disclaimer

A recent poll by the NLA recorded 38 per cent of landlords are worried about the impact of Universal Credit, with  51percent indicating they would not to let to benefit claimants.

The NLA are concerned that monthly benefit payments under UNiversal Credit will lead to more tenants struggling to pay rents because of poor financial budgeting.

It reported that landlords with single properties or small portfolios were most concerned with six in ten ruling out ever letting to tenants receiving benefit.

The NLA chairman, Carolyn Uphill said: “Our research highlights how worried landlords are about the impact of Universal Credit and that they are choosing to withdraw from the local housing allowance market.

“This concern is understandable, particularly with the uncertainty that the changes to the benefit system bring. Quite simply, they are worried the rent won’t be paid and that they will not have the system of direct payment to fall back on. However, the Government relies on the private-rented sector to support the provision of housing for those in receipt of benefits so it needs to act quickly to restore landlords’ confidence, showing it grasps the practicalities of renting."

She added: “Renting is a business and landlords must balance their needs with an understanding of the pressures experienced by their tenants. It is essential that they work with tenants in receipt of housing support to ensure they are aware of the forthcoming changes and are seeking advice on budgeting for monthly payments.”

Landlords with tenants on LHA has fallen to 27pc last month, down from 34pc in March. 

Landlord insurance - professional rates

Meet the Landlords Programme

Landlords; not always the bad guys

Photo courtesy of The Rocketeer @creativecommons

BBC Meet The Landlords programme – a snapshot of landlord life at its worst

If you watched the BBC’s recent Meet The Landlords fly-on-the-wall documentary, you’ll either have been thinking yourself lucky that you’ve had a relatively easy run, or nodding your head in recognition at all the nightmare scenarios played out on screen.

The programme followed the stories of beleaguered landlords, homeowners refused access to their own homes by tenants, and down-on-their-luck tenants close to homelessness as landlords turn them away for being on housing benefit. Interestingly enough, it showed landlords as both good cop and bad cop, which is unusual given the predominantly bad press we get.

Nicki’s story

The story of single mother Nicki and her young son Josh was particularly hard to stomach. Being diagnosed with cancer in her early thirties meant Nicki couldn’t work and relied on benefits. While battling chemotherapy she was asked to leave one property in London to make way for the landlord’s preferred private tenant. After finding another property, she was promptly asked to leave so the landlord could convert the building into bedsits.

In five years of renting, Nicki hadn’t been in one property for  longer than eight months. With nowhere to go, she was advised by the council they could do nothing for her until the bailiffs showed up, leaving her terrified she would end up on the streets.

Tenants from hell

The show also highlighted ‘ASBO tenant’ Paul, being carefully ‘handled’ by the very patient lettings staff at The CastleDene Group. Paul had various addiction issues and had moved from house to house because of anti social behaviour, including his habit of phoning 999 for a lift!

One of the most extreme abuses of a landlord’s trust was at a house in the Midlands, which had been turned into a brothel and drug den. The coffee table was covered in weed, every door had been punched through and every window smashed. The defeated landlord offered the tenant a £10 note to leave voluntarily. Shockingly, she took it dejectedly and walked off down the street minutes later with her belongings in plastic bags. A sad snapshot of a very damaged way of life.

A homeowner’s nightmare

After renting out her family home, Caroline was in the dreaded situation of not being able to regain access to her house. After accruing £16k in unpaid rent, creating huge damage to the house by overrunning the bath and cracking the windows, the tenants were finally forced to leave after an 18 month ordeal. The relief and emotion was so moving when Caroline and her kids got to go home.

Young professional homeowner Anna was in the same boat. Her tenants owed her £7k and turned her into an emotional wreck after refusing to exit the property at the end of the tenancy. After finally getting them out, tearful Anna couldn’t face living there again. She sold the house and vowed her landlording days were over.

Unexpectedly inspiring

In the midst of all these shocking tales of landlord life, was a story of great inspiration. Jim Haliburton , otherwise known as ‘HMO Daddy’  told how after he growing up in an orphanage he went on to make his fortune by building a portfolio of HMOs.

With 75 HMOs and 500 tenants under his care, Jim is still hands on, and the programme saw him taking a tenant to court to gain occupancy, and taking it completely in his stride. Clearly, this is not his first rodeo, as they say. How wonderful to see someone who’s had a less than 
privileged start become such a  great success through BTL.

Read other reviews of Meet The Landlords here 

If you saw the programme, what did you think? 

Did you feel it was a fair reflection of landlording life? 

I’d love to read your comments.

Alison Doering is a north east landlord who caught the BTL bug three years ago and has never looked back. Going from zero to six properties in three years and juggling a high pressure job in marketing means every day is a school day; there’s always something new to lock away in that mental filing cabinet marked “Never do that again!” 

Landlord insurance - professional rates

New second charge BTL mortgage

We can now offer this innovative second charge buy-to-let product with Shawbrook Bank. It is aimed at landlords who are wanting to raise additional equity from an existing buy-to-let without having to remortgage.

Product details:

• market leading rate from 9.95%
• up to 65% LTV
• 110 rental calculation
• 3% early repayment charge
• £5,000 - £75,000

A secured loan enables you to leave your mortgage in place and raise funds for a wide range of purposes including:

• home improvements
• consolidation
• school fees
• payment of a tax bill
• transfer of equity
• fund a deposit for a new property

Search the whole BTL mortgage market free

Email: info@propertyhawkbtlmortgages.co.uk 

Tel: 01494 894639

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.

'Rent to rent' rip off!

The latest 'quick buck' scheme is 'rent to rent'.  Like moths to a light bulb loads of gullible, naive property investors head towards the investment nirvana.  Just like BMV and lease options before no series property investor makes money out of these weird and wonderful derivatives.  The only people that do are the dodgy shady intermediaries & websites who try and talk them up and make money out of you!

So wise up guys.  Property investing is a long term game.  Buy a good property at a reasonable rate of leverage and you will get your just desserts.  If you go for the fast buck you are gonna get burned!

Mortgage search - finance my investment

Free investment calculator - look @the figures

One of the things that we are always encouraging residential property investors old and new to do is look at the figures.  Buying a property as a buy-to-let or investment property is not the same as buying your home.  You buy your home because you love it.  It suits your needs and obviously you can afford it.

Buying an investment property

You buy an investment property because hopefully it will make you money.  Remember property investment is a long-term game!  If it makes you money in the short term you are very lucky.  For most property investors your need to be looking at a 10 - 15 year time frame.

Property investment calculator

One of the things that I found particularly useful when I was starting out as a fledgling property investor was my own property investment calculator which sort to take into account all the relevant factors that were going to impact on your investment returns and gives you a tool to compare the returns from different investments over time.  This way you could make your ultimate property investment decision based on your head not just your heart.

Free property investment calculator

The property investment calculator can be found here.  One of the things that running such as big website such as Property Hawk is that we sometimes struggle for room to fit everything in.  I think that the property investment calculator may now be hidden somewhere on the website.  Is it useful?  If so let us know and maybe we can put it somewhere a bit more prominent.  The main thing is do your sums before you put your hands in your pocket!

Mortgage search - finance my investment

Access Denies to PM3 Upload Files

Files uploaded to the PM3 storage can only be accessed from inside the software. The links to your files expire after a few minutes, so if you copy the link, send it to someone else, or even just walk away from your computer to have lunch, you will get an Access Denied message looking a bit like this:

[Error]

[Code]AccessDenied[/Code]

[Message]Request has expired[/Message]

[RequestId]21C9DC1581CD7A88[/RequestId]

[Expires]2013-07-26T11:39:45Z[/Expires]

[HostId]

PJS1FhsV0LEI5eDyStCTvTxHcXB8yLwEa2Qw2xdb07oqQak0ORvy0on9AzfxfHtg

[/HostId]

[ServerTime]2013-07-27T12:51:42Z[/ServerTime]

[/Error]

The solution is to log in to PM3 again, load the list of files and click on the one you want.

Bank of Mum and Dad

Bank of Mum and Dad are now reportedly paying out an average of £17,000 to help their children jump on to the first step of the property ladder according to Shelter's research.

Now although £17,000 is a lot of money, the figure is lower than I would of predicted and maybe just reflects the cost of living. There are plenty of other things that shock me more.

The price of beer at the pub, a sandwich as a motorway service station, the cost of my daughters school camp - I could go on.

Read more in This is Money

Landlord insurance - professional rates

Hounslow set to extend licensing

Hounslow council is set to extend mandatory landlord licensing to all HMO properties in the borough including flats.

If the plans are approved they will be set to begin in April 1st 2014.

Read more here

Landlord insurance - professional rates

Rent guarantees & legal protection

Alan Boswell have always been known for providing solid no nosense landlord building insurance.  On top of this landlords were able to add in additional cover such as legal protection and rent guarantee insurance to their cover.

However, until recently these additional levels of cover were not available to landlords who did not insure their properties with Alan Boswell.  This has now changed and both rent guarantee insurance and legal expenses can now be brought separately.

Don't forget though that you can still get a fair amount of free legal advice by signing up to use our free landlord forum.  Also if you are looking at capping your legal bills there is a fixed price legal service available to landlords with Fidler and Pepper Solicitors.

Don't say we don't give you a choice.  Pay ...don't pay ....it's pretty much up to you.

Landlord insurance - professional rates - trusted brokers

BTL or a pension?

Buy to let investing has increasingly become the prefer pension provision for many who have lost faith in traditional pensions.

This Independent article has some financial advisors arguing a more traditional pensions provision for one wannabe landlord.

Landlord insurance - professional rates

Most popular BTL mortgages

Max LTV	Initial Rate	Term	Completion fee	Booking fee	Incentives	Overall Cost for Comparison	Lender
85%	4.99% Fixed	2 Years	2.5%	£130.00	No	6.8% APR	Kent Reliance Semi Exclusive
85%	5.99% Discount	2 Years	2.5%	£130.00	No	7% APR	Kent Reliance Multi Let & Ltd Co. Semi Exclusive
80%	4.59% Discount	2 Years	2.5%	£130.00	No	6.7% APR	Kent Reliance Semi Exclusive
80%	4.99% Fixed	Aug 31 2015	£1800	£199.00	Free valuation up to £335 for purchases and remortgages and free legals on remortgages only.	6.1% APR	Leeds Exclusive
75%	4.19% Discount	2 Years	£1250	£250.00	No	5.5% APR	Hinckley & Rugby
75%	4.39% Discount	2 Years	1.5%	£130.00	No	6.5% APR	Kent Reliance large loan
75%	2.88% Tracker	2 Years	2.5%	£150.00	Free valuation for purchases and remortgages & free legals on remortgages	5.3% APR	Mortgage Trust ltd Edition Exclusive
75%	4.49% Discount	2 Years	2%	£130.00	No	6.6% APR	Kent Reliance Ex-pat
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	Leeds Exclusive
60%	2.45% Discount	2 Years	£1950	£250.00	One free Valuation on properties valued up to £1,000,000	5% APR	Hinckley & Rugby Exclusive

Search the whole BTL mortgage market free

Email: info@propertyhawkbtlmortgages.co.uk 

Tel: 01494 894639

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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FTB forecast to struggle

The National Housing Federation are forecasting the shortfall in building will bring a 42 percent increase in property prices by 2020 and predict a worsening of affordability for first time buyers.

But they would, wouldn't they?

Read more in This is Money

Landlord insurance - professional rates

Lender offers mortgages for long-term lets

One buy-to-let lender the Nationwide BS is now allowing landlords to offer their tenants longer-term rental contracts of up to 3 years.

Most lenders restrict buy-to-let borrowers to a tenancy with a maximum of contract of 1 year.

Their new buy-to-let mortgage products offer mortgages to landlords that offer longer term tenancies of up to 3 years.  Divisional Director of Mortgages at Nationwide Group, said: ‘The private rental sector has grown and changed phenomenally over the last few years, with rising numbers of families looking to rent in particular. We want our buy-to-let borrowers to be in a position to be able to meet the changing needs of the market.”

Their is currently no maximum term for an Assured Shorthold Tenancy but if it is created for more than 3 years is has to be be created as a deed.

Mortgage Search - whole of the market

From Bond to buy-to-let baroness

One of the great things about buy-to-let is that it is equally appealing to both men and women.  There are many women that have made substantial fortunes out of building a buy-to-let portfolio. Whilst commercial property is often a bit of a male preserve with much of the deals done on the golf course. Residential property investment plays to the strengths of many women who are skilled and interested in interior design and home making as well as being savvy business women.  These women are then able to deploy these interests and skills in creating premium buy-to-lets.

Bond girl to buy-to-let baroness

One example of this is Fiona Fullerton who was originally a model and actress and subsequently got into residential property investment by accident and has subsequently built up a portfolio of residential property properties in London and Oxford. She now has a portfolio of approaching 20 properties and given that she is selling her current home for £2.75 million to finance her next project then she clearly still has the property bug.
 
Landlord insurance - expert brokers - professional rates

Double digit yields still available

For those market watchers who think that double digit yields have gone for ever following on from tentative signs of economic recovery will be cheered by the latest auction results from Allsop most property auction held in London last week.

The auction pulled in £51 million of sales.

AST rental yields

Most interestingly the figures showed that the average property sold with the benefit of an Assured Shorthold Tenancy (AST) went for £156,375 with a jaw dropping yield was of 11.36%.

The message is that whilst the prime London market maybe booming with cupboards in Kensington going for a million quid as Russian oligarchs try and find somewhere safe to hide their wealth and some where safe to live.  It's still possible buy at auction for those in the know and with the cash to pick up flats in the regions for £30k

My personal favourite is the school in Barnsley still available at £130k...surely a snip for somebody with an eye for development and given the lapsed permission to turn it into 24 apartments.  See the image above for a flavour to the Grove Primary School. 

Mortgage Search - finance my investment

The Landlord’s Guide to Rent Arrears

The issue of rent arrears has always been there for landlords, but against the backdrop of economic recession and austerity cuts, there is much evidence that the problem is now more prevalent than ever.

Only this month, a report by the Resolution Foundation revealed that more and more lower-income families were unable to afford the rents on two-bedroom homes, with large swathes of the country now off limits to many.

The inevitable knock-on effect is an increased number of tenants who cannot meet their rent commitments, and as such it’s imperative that landlords understand the options open to them. Below is a six-point guide:

1. Conduct a thorough vetting process

It may be too late in the day for current tenants, but the problem of rent arrears does help to reinforce the importance of a thorough vetting process before a tenant has even moved in. Leave no stone unturned - seek references, check credit history and employment details, speak to the prospective tenant directly, and even ask for a guarantor. 

2. Start with a gentle reminder

Most tenants don't set out to miss payments, and in many cases the explanation is a perfectly innocent one. Avoid charging in with all guns blazing, and instead make a polite enquiry as to the whereabouts of the missed rent payment. 

3. Put together a repayment plan

The phrase 'financial difficulties' can be viewed as a convenient excuse by some landlords, but as the explosion in pay-day loans has demonstrated, it is also a genuine and growing problem. Try to approach the tenant's problems helpfully - propose a repayment plan that is flexible and manageable, perhaps involving several smaller payments.

4. Send a final demand letter

If a tenant's non-payment persists, it is time to up the ante. Draft a formal letter outlining to the tenant that they are in arrears and that legal action will follow without payment by a certain deadline. If there is a guarantor, contact them. 

5. Take legal action

The final demand letter will often prompt the tenant into action, but if it doesn't have the desired effect, the landlord enters territory where a thorough knowledge of the law is essential. The Housing Act 1988 provides two routes: Section 8, which applies when a landlord wishes to regain possession during the fixed term of a tenancy, and Section 21, which can only be used at the end of an agreement. 

6. Choose a possession procedure

There are two procedures for regaining possession of a property through the courts. For landlords seeking a quick solution without the need for a hearing, the best option is the Accelerated Possession Procedure. There are certain conditions attached to taking this option, and it's not possible to claim for outstanding rent this way. If a landlord does wish to claim for at least two months' rent, apply for "fixed date" proceedings using forms N5 and N119.

Calls for five year mandatory electrical checks

The Communities and Local Government (CLG) Select Committee’s have recommended that private

sector landlords be undertake a mandatory five-yearly check of electrical installations in their rental properties.

The CLG Select Committee report  called on government to introduce a requirement to review electrical installations every five years, with a visual check being undertaken on change of tenancy. To achieve this, it asks government to liaise with the electrical industry to establish suitable certification.

Phil Buckle of the Electrical Safety Council commented “We are delighted that the Committee has made this recommendation. We have, for some time now, been lobbying hard for such mandatory regulation in the PRS. The Government’s own data shows that 21% of England’s PRS contains category 1 hazards - the most dangerous risk to health and safety under the Housing, Health and Safety Rating System."

Landlord insurance - professional rates

Delays to Universal Credit roll out

Delays in the roll out of the Universal Credit mean that many landlords won't see a change in their Local Housing Allowance payments until 2017.

The delays have been blamed on inadequate IT provision.

The Government has said that a better IT system could “potentially be built”. 

What's with Governments and IT? 

Landlord insurance - professional rates

Committee call for regulation of letting agents

The Communities and Local Government Committee have made another strong call for the mandatory regulation of letting agents. Insisting that letting agents should face the same levels of regulations as the estate agency industry.

They have accused lettings agents of placing hidden charges on tenants during the letting process. The committee want the full costs to be made more transparent from the outset, so tenants can make a better judgement as to which agent to use before embarking on the letting process.

The committee have also called for - 

• The introduction of a standard "plain language" tenancy agreement for general use, including an easy-to-read fact sheet setting out landlords' and tenants' rights and responsibilities.
• To give the Office of Fair Trading (OFT)  powers to ban agents who act improperly.

Read more on letting regulation in the Telegraph

Read more on letting regulation in the Guardian

Read more on letting regulation in the Financial Times

Read more on ending rip off letting agent fees on Sky

Landlord insurance - professional rates

New 2.45% 2 year discount BTL

Property Hawk Mortgages can now offer a 2.45% 2 year discount from Hinckley & Rugby Building Society with a free valuation and no early repayment charges, available up to 60% LTV.

Search the whole BTL mortgage market free

Email: info@propertyhawkbtlmortgages.co.uk 

Tel: 01494 894639

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.

Mixed use investment

Northern landlords looking to broaden their investments to include some retail property could have a look at this property in Leeds.  Offers sought are for near a million quid.  I would say that looks a bit 'toppy' for my mind but I'm no expert on the Leeds market. If it was me I'd be looking at a rental yield north of 8.5%.

Property details:

64-76 Aberford Road, Oulton, LEEDS, LS26 8HP

A purpose built detached freehold investment property situated over ground and first floors. The ground floor comprises three fully let lock-up shops.  The rent passing is currently £50,000 per annum and is subject to future uplift.  The first floor comprises five self-contained apartments (3 x 2 bed and 2 x 1 bed).  The flats are also fully let and produce an income of £32,700 per annum.  The total current rent passing is £82,700 per annum. are seeking offers in the region of £995,000 (Nine Hundred and Ninety Five Thousand Pounds), which reflects a net initial yield of 7.85% after costs calculated at 5.8%.

The sale of this property is subject to contract and existing tenancies.

 James Wilson
+44 (0)113 236 6679
james.wilson@allsop.co.uk

Mortgage Search - finance my investment

ONS figures show increase in property prices

The Office for National Statistics has reported that the average house price is now £239,000. The figures are from May 2013 and the comparative May 2012 figures recorded a £229,000 value.

This indicates a 2.9 per cent growth over the 12 months. 

Much of the growth was from England at  3.1 per cent. Northern Ireland saw 1.9 per cent, Scotland 0.8 per cent and Wales the smallest increase at just 0.6 per cent.

Read the full ONS report on May housing market here

Landlord insurance - professional rates

Student rental sector report

The growth of the student sector has acerbated the crisis in housing supply. With our university crammed with foreign students we have seen our higher eduction provision grow by 540,000 from 1999 to 2012, an increase of 46%.

Student areas.

Although universities have developed more halls of residence rooms, as well as the advent of some large private sector student accommodation operators, largely this increase in demand has been met by the private rented sector.

Much of the provision to meet the increased demand for student housing from PRS has come in the form of shared housing / HMO's.

Savills have produced research on the impact of student HMO ghettos, in certain university towns on local homebuyers and property values, and goes on to evaluate the future investment potential for landlords across the UK.

Read more on the report at Savills here

Read the PDF of the student investment report here

Landlord insurance - professional rates

Most popular BTL mortgage

Max LTV	Initial Rate	Term	Completion fee	Booking fee	Incentives	Overall Cost for Comparison	Lender
85%	4.99% Fixed	2 Years	2.5%	£130.00	No	6.8% APR	Kent Reliance Semi Exclusive
85%	5.99% Discount	2 Years	2.5%	£130.00	No	7% APR	Kent Reliance Multi Let & Ltd Co. Semi Exclusive
80%	4.99% Fixed	Aug 31 2015	£1800	£199.00	Free valuation up to £335 for purchases and remortgages and free legals on remortgages only.	6.1% APR	Leeds Exclusive
80%	4.99% Fixed	Aug 31 2015	£995	£0.00	No		The Mortgage Works
75%	4.19% Discount	2 Years	£1250	£250.00	No	5.5% APR	Hinckley & Rugby
75%	2.88% Tracker	2 Years	2.5%	£150.00	Free valuation for purchases and remortgages & free legals on remortgages	5.3% APR	Mortgage Trust ltd Edition Exclusive
75%	4.19% Fixed	Dec 31 2015	£995	£0.00	£500 cashback on completion		BM Solutions
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	Leeds Exclusive
65%	4.2% Tracker	2 Years	3%	£150.00	No	5.4% APR	Paragon
60%	2.49% Fixed	Aug 31 2015	2.5% (min £595)	£0.00	No		The Mortgage Works
60%	2.45% Discount	2 Years	£1950	£250.00	One free Valuation on properties valued up to £1,000,000	5% APR	Hinckley & Rugby Exclusive

 

Search the whole BTL mortgage market free

Email: info@propertyhawkbtlmortgages.co.uk 

Tel: 01494 894639

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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