Removal of squatters - who pays?

I recently came across a question by a landlord in one of the advice sections of the FT. Apparently this poor chap had problems with squatters in his large flat in Kensington.
The squatters have very thoughtfully erected a sign announcing that they "now live in the property, intend to stay and it's a criminal offence to enter without their permission"

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How nice to be kept in the picture. Micheal Buckpitt a barrister at Tanfield Chambers explains that the squatters do not have any 'rights' as such to stay. However, the correct procedures are required to remove them. He recommends that the safest course of action is to issue court proceedings. However, only the person with an immediate right to possession - the tenant can bring such proceedings. although they could authorise you the landlord to bring the claim on their behalf.

Once the court order is obtained, it must be enforced by the County Court Baliff or the High Court Sheriff. Interestingly, the landlord is not liable for damage or costs incurred. Removal of the squatters and remedying any damage are the responsibility of the tenants. Well theres a relief your honour!

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Free Tickets for Grand Designs Live

The Evening Standard is giving away 20,000 free tickets for the Grand Designs Live exhibition on 25 April to 1 May 2009 at Excel in Docklands.

This is for anyone who wants to swan around ogling designer kitchens and bathrooms or just wants to sit on a sofa with Kevin McCloud.

To apply for the free tickets, you need to register for an ‘Eros’ card that can give you a discount on buying the paper and other offers. Registration and application for the tickets is free but read the details about this here to make sure it’s what you want.

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The Turner Review may impact Buy to Let warns Lord Turner

The Tumer Report covers a broad range of sectors but has reserved its judgement on Buy To Let and second charge mortgages until September. If some of the commmentary on how they might restrict Loan to Income multiples might be applied in future goes ahead in its current form (such as 3.5 x Multiple applied whether interest rates  are 12% or 4% rather trhan expressed as a%age of disposable income with in a minimum notional rate to cater for articially low rates like now !!!), then the Buy To Let lenders will be facing an uphill struggle.

There is an essential principle at stake which is being overlooked. Buy To Let is a business activity whether you own one or 350 properties. You are in it for profit and drawing a line between the owner with a single Buy To Let to enhance their overall retirement provision  to the active landlord refurbishing property , extending others, perhaps even selling some to use up CGT gains would require the judgement of Solomon which has been remarkably lacking in the FSA to-date.

In its effort to regulate Buy To Let it is likely that the FSA will create a regulatory monster so as to embrace all the complexities of a Buy To Let property and the business aspirations of the borrower......this might add such a burden to the time and "real" cost of the process that borrowers will approach lenders on a commercial mortgage basis to avoid the FSA paper trail. After all, this is where Buy To Let came form and many professional landlords keep Buy To Let property in "pot" facilities at banks.... or do we think that the FSA proposes to move further up the lending scale to include all aspects of business lending ???

There is also a tendency for some commentators to suggest that the lender and broker to a transaction are giving investment advice to the borrower at point of purchase which is false. Quite correctly the Buy to Let mortgage or loan needs to suit the borrower's needs but whether the investment or is appropriate or will perform over time is the commercial decision of the borrower.

Read the Turner Report here.

Landlords missing an opportunity?

With all the talk of low interest rates, increases in rental income from lower mortgage repayments (ahh the joy of tracker mortgages), rental increases / decreases, falling house prices and a host of other topics - it does seem that landlords are missing one heck of an opportunity in the current climate.

Yes, the economy is bad!

Yes, obtaining decent leveraged finance is harder than pulling teeth with a blunt spoon!

Yes, opportunities abound - with people in financial difficulty willing to 'give' their properties away for virtually nothing (some even do give it back to their banks for nothing) however this usually involves a lengthy purchase process and some degree of increased debt through obtaining a mortgage - at what ever rate lenders wish to offer. Then there is the additional time to consider in managing any new properties acquired.

However, anyone with a mortgage is really going to be kicking themselves when 6-12 months down the line they look back and say...if only I had considered it!

No need to increase your mortgage balance through new purchases.
No need to pay solicitors fees.
No need to devote more time to tenants.

It's often the case that the simplest solution (or in this case opportunity) is often the last considered.

Click Here to read more







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Cashflow is king & heres how

A recent post by Margo talks about the ticking time bomb awaiting many buy-to-let investors when interest rates start climbing from their historically low levels to something resembling normality.

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When base rates return to 'normal', then because of the banks increasing their lending margins to reflect their greater perceived risk on lending against property, landlords will get it in the financial neck. Imagine a base rate of even a relatively low 4% but then on top being charged a 3% margin by your buy-to-let lender. That means a buy-to-let mortgage rate of 7%. Ouch, thats going to hurt after the rates some of us have been used to of practically zero.

Cashflow is king & heres how to calculate it for free.

This is why landlords should keep a track of their cashflow. Remember cashfow, particularly in the current climate is king. To do this go to the Property Manager and enter in your loan costs, tenancy details and any regular expenses such as insurance for example. You then should be able to calculate your free cash each month. Then, be disciplined. Put that money aside each month. Probably best not in a bank hey. Perhaps under your pillow. Then when a landlord is confronted with buy-to-let mortgage rates of 7-8% on their buy-to-let mortgage in a couple of years time. You will have a little stashed away for these rainy days!

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Advice for landlords or 'un-planned-lords' or 'accidental landlords'.

Sarah Beany gives 'accidental landlords' or as she calls them 'unplanned-lords' a pep talk on letting property.

For those landlords who are often asking us where the 'accidental landlords' go to once they have further flooded the rental market, the answer for the 'accidental landlord' in this clip is moving in with relatives. Well that clears that up, anyway...

The clip sponsors are obviously Gumtree, the Free adverts letting site.


Renting A Property:How To Rent Out Your Property

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