New year ..new investment

Anybody who thinks that all the fall out from the financial crisis has gone is wrong.  We spotted this new investment on the Allsop website available through administrators (not quite as desperate as liquidators).  The property details are:

Zero 4, 24-26 The Crescent, PLYMOUTH, PL1 3AD

Freehold residential and part commercial investment:

    •    Comprising 122 flats and 821 sqm (8,842 sqft) of A3 retail accommodation ('shell' condition)
    •    93 flats subject to ASTs, 7 vacant flats and 18 flats sold on long leases
    •    4 part complete penthouse flats
    •    42 car parking spaces (6 subject to long leases)
    •    Total current rent reserved:  £645,820 per annum (inclusive of £1,900 ground rent income)
    •    Estimated rental value (fully let) £705,108 per annum
    •    Located within the heart of Plymouth benefitting from good local amenities and excellent transport links
    •    Offer deadline 7 February 2014

Offers in excess of £7,000,000

For more details:

Anthony Dixon
+44 (0)20 7344 2625
anthony.dixon@allsop.co.ukJames Hood
+44 (0) 207 344 2637
james.hood@allsop.co.uk
 
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Landlord gives notice to 200 HB tenants

The 'King of BTL', ( not my title), aka landlord Fergus Wilson has sent out eviction notices to all his existing housing benefit tenants. A landlord  of a portfolio of nearly a thousand BTL properties in Kent he has joined the increasing trend away from renting to tenants on housing benefit, particularly in more affluent areas or areas with a restricted supply.

HB payments are simply not keeping pace with rents in the open market and landlords are increasingly finding that benefit tenants are both paying less rent and carrying a greater risk of default.

Fergus Wilson predicted that many of the 200 BTL tenants he has sent notices to would be replaced by working Eastern Europeans tenants, that he felt to be a better financial risk.

He is not alone, recent NLA data reported the number of landlords ready to rent to a HB tenants had fallen to just 1 out of five of us.

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London still top with foreign property investors

Predictions that London might see a cooling in demand from foreign property investors in 2014 after the tightening on CGT have been contradicted by it coming out as the top location to invest by the Association of Foreign Investors (Afire).

London beat last years winner, New York to come out top. Third place went to San Francisco, fourth Houston and fifth Los Angeles.

It appears the dollar or the pound is where foreign investors want to be.

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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%	4.95% Discount	2 Years	0%	£0.00	One free standard valuation for properties up to £250,000. If the property is worth more than £250,000 then there will be a £240 contribution towards the valuation	5.3% APR	Hanley Economic Exclusive
75%	3.75% Discount	2 Years	0%	£0.00	One free standard valuation for properties up to £250,000. If the property is worth more than £250,000 then there will be a £240 contribution towards the valuation	5.1% APR	Hanley Economic Exclusive
75%	5.39% Variable	0 Years	2.5%	£0.00	No		Saffron Light Refurbishment
75%	4.69% Discount	3 Years	2%	£0.00	No		Saffron BS Semi Exclusive
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 Exclusive
65%	5.39% Variable	0 Years	2.5%	£0.00	No		Saffron BS Ex-Pat Semi 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: 029 2069 5446

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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Get sent to Coventry for yields

In the old days people would get sent to Coventry if they misbehaved.  Now landlords are deliberately targeting towns like Coventry for their high gross rental yields and relatively low property prices.  If you are looking for a highly cash income generating investment or 'cashcow' landlords should look to provincial towns according to research complied by Zoopla.

The research featured in the FT highlights the top 5 yielding towns all with gross rental yields of over 8% with their respective rental yields as follows:

1. Coventry 8.9%
2. Southampton 8.4%
3. Liverpool 8.3%
4. Manchester 8.2%
5. Sheffield 8.1%

A word of caution when looking at the figures.  The rental figures use the average rent for the City with the average in Southampton of £1359 per month being much higher than other comparable towns and cities would suggest that the figures use an average for all properties not just the type of property a landlord is likely to buy as an investment.  Taking into this account the asking rents for Coventry, Liverpool and Sheffield look much more achievable and believable.

Free property management software, Free tenancy agreements

Croydon landlord conference

Croydon Council are inviting local landlords to attend a free conference promoting the advantages of working with the council when renting out properties.

"The conference is a great opportunity for landlords to find out about the benefits of working with the council to rent their properties. We can find suitable tenants and ensure that the renting process is smooth and hassle-free." commented Councillor Dudley Mead, the cabinet member for housing.

"The council needs more homes, which is why we have some great schemes available with a range of fantastic benefits."

The conference is set to take place from 3.15pm to 6.30pm on Wednesday, 15 January, at the Community Space in Bernard Weatherill House, Mint Walk, Croydon and any landlords interested can email - landlords@croydon.gov.uk to book a place.

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