Stories of Accidental Landlords

This term 'accidental landlord' has really taken off in the news and surveys.

Here are a couple of case studies, including an ex BBC 'Changing Rooms' designer.

Read article

Love to landlords - your darling Margo.

Best buy-to-let lender?

I came across a recent article which claims that HSBC was the most competitive lender through 08. This got me to thinking who is the best buy-to-let lender. I like the Mortgage Business who are owned by the Nationwide. They have kept interest rates low but were not tempted by the excesses of lending shown by some lenders during the credit boom.

Who do you think is the best buy-to-let lender - post your views below.

Buy-to-let mortgage latest:

• Bank of Ireland Mortgages
• All buy-to-let MORTGAGE PRODUCTS withdrawn, w.e.f. c.o.b. 9.1.09....more
• 09 Jan 2009
• Bristol & West Mortgages
• All buy-to-let MORTGAGE PRODUCTS withdrawn, w.e.f. c.o.b. 9.1.09....more
• 09 Jan 2009
• Northern Bank (NI)
• Buy-to-let VARIABLE BASE RATE TRACKER MORTGAGE reduced by 0.50%. w.e.f. 9.1.09....more
• 09 Jan 2009
• Birmingham Midshires Solutions
• ALL buy-to-let VARIABLE BASE RATE TRACKERS reduced by 0.50% w.e.f. 8.1.09....more
• 09 Jan 2009
• Britannia BS
• Buy-to-let STANDARD VARIABLE MORTGAGE RATE reduced to 4.99%, w.e.f. 1.12.08. FIXED RATE MORTGAGES of 7.69% for 2 years & 7.39% for 5 years, now have fees of £599, w.e.f. 9.1.09....more
• 09 Jan 2009
• RBS IP NatWest
• END DATES on buy-to-let FIXED RATES extended to 31 March, w.e.f. 9.1.09....more
• 09 Jan 2009
• Bath BS
• NEW FIXED RATES of 5.75% & 5.99% for 2 years and NEW VARIABLE RATE MORTGAGE for holiday lets only of 5.74% for term launched, w.e.f. 8.1.09....more
• 09 Jan 2009
• Northern Rock
• END-DATES on buy-to-let MORTGAGES extended to 1.3.11, w.e.f. 8.1.09....more
• 08 Jan 2009
• Giraffe Money
• Buy-to-let FIXED RATE MORTGAGE of 7.99% to 31.3.14 withdrawn, w.e.f. 7.1.09....more
• 08 Jan 2009
• Lloyds TSB Scotland
• Buy-to-let VARIABLE TRACKER RATE MORTGAGES withdrawn, w.e.f. 7.1.09....more
• 08 Jan 2009
• NatWest Int Personal Banking
• Buy-to-let VARIABLE BASE RATE TRACKER MORTGAGES reduced by 0.50%, w.e.f. 8.1.09....more
• 08 Jan 2009
• Royal Bank of Scotland Int Ltd
• Buy-to-let VARIABLE BASE RATE TRACKER MORTGAGES reduced by 0.50%, w.e.f. 8.1.09....more
• 08 Jan 2009
• Cheltenham & Gloucester
• ALL Buy-to-let VARIABLE TRACKER RATE MORTGAGES withdrawn w.e.f. 8.1.09....more
• 08 Jan 2009
• Leeds BS
• Buy-to-let VARIABLE MORTGAGE RATE reduced by 0.45% to 5.79% w.e.f. 8.1.09....more
• 07 Jan 2009
• Bank of Scotland Int Ltd
• Buy-to-let VARIABLE TRACKER RATE MORTGAGE of 6.50% for term withdrawn....more
• 07 Jan 2009
• The Mortgage Works
• NEW Buy-to-let FIXED RATE MORTGAGE of 3.49% to 31.3.10 and VARIABLE TRACKER RATE MORTGAGE of 3.99% to 31.3.10, w.e.f. 6.1.09....more
• 06 Jan 2009
• Platform
• All buy-to-let MORTGAGE PRODUCTS re-launched as per previous range, w.e.f. 5.1.09....more
• 05 Jan 2009

Nottingham & Newcastle shows highest numbers of losses

Landlords we are fortunate. I know we probably don't feel like it at the moment: winging tenants, disappearing buy-to-let mortgages, rising amounts of regulation and off course the falling value of our investment property (to find out by how much check out Margo's post below).

A recent report in the FT over the rising numbers of homeowners and I dare say landlords experiencing a loss on the sale of their residential property.

Research compiled by UKValuation highlighted the areas in the UK where the largest number of houses were sold at a loss. Two areas led the way, Newcastle and Nottingham which registered sales generating a loss equaled 340 and 448 respectively. The average loss was around 10%. These two areas have both experienced high levels of speculative building of city centre apartment often sold at so called discount to unsuspecting buy-to-let investors. This may explain the figures.

Why should landlords feel lucky? Well the silver lining that unlike many owner occupiers we don't have to sell. I know at the moment it's a very small consulation but in the present climate taking any positive is quite an achievement.

How Much are your Properties Worth Now - Free Calculator for Landlords

The value of a landlords property is going down and down.

This calculator from the Nationwide BS enables landlords to get a rough idea of the value of their portfolio as it counts down.

Landlords can have fun and work out how much less they are worth than last year.

Your darling Margo
Bringing landlords sunshine through the rain.

Happy 1st birthday Belvoir Boston!

First year of trading a success for Belvoir Boston...

After opening the doors to Belvoir Boston just over one year ago proprietor Donna Burrell has met with great success – now, with three members of staff and more than 100 properties on her books Donna recalls her journey...


Question: Why did you want to run a lettings agency?

Answer: “I decided to open the business after returning from working abroad,” says Donna. “I could see a lot of potential in working for myself and knew I didn’t want to work for anyone else.
“I searched for months and months for the right business opportunity and finally decided on the lettings industry. I could see great potential in the lettings market - buy-to-lets have gone crazy over the last couple of years and it’s surprising how many people own two or more houses.
“In fact, the lettings market seemed the recession-proof option. In the current climate more and more people are offering their homes to rent rather than selling them at a loss – renting is really common in Europe and it seems to be taking off over here too.
“Added to this I’d always been interested in property - I’d been both a tenant and landlord myself – and, a bad experience with the agency which let my own house while I was working abroad made me think I could better. I wasn’t impressed with their service at all.”


Question: Why Belvoir?

Answer: “Belvoir seemed the perfect solution for me,” says Donna. “I already knew of the brand, plus the Grantham Central Office isn’t too far from Boston, so they’d be near by if I needed them. I couldn’t believe it when Belvoir Boston was still available and I applied straight away.”
Question: How did you feel when you opened the doors for the first time?

Answer: “Excited and apprehensive at the same time,” remembers Donna. “Strangely enough I was mopping the floor on the Sunday in preparation for Monday’s opening when my first tenant walked in looking for a property to rent. He was definitely the sign of things to come... and, when I did open the doors properly on the Monday I had more than 60 tenant enquires in just one day!
“The flood-gates had opened and tenant after tenant came in. I realised then that there was a massive demand for rental properties in Boston and this meant I could then go to the landlords and tell them that tenants were queuing up. It was a good feeling and a brilliant achievement.”


Question: What’s been your success in the first year?

Answer: “I’m really pleased with how things are going,” she says. “I took on my first employee last December and now have an additional full-time and part-time person too. And, as for properties, I have nearly a 100 fully-managed properties, plus others that are let only.”


Question: What’s the most satisfying thing about the job?

Answer: “I’m managing a lot of properties with a massive amount of responsibility,” says Donna. “After all, I am dealing with people’s biggest assets – their homes. Positive landlord and tenant feedback is very satisfying and it’s great to know you’re doing a good job. I never turn anyone away and always strive to find suitable properties for tenants who are struggling to find properties on their own – it certainly feels good seeing them settle into their new homes.”


Question: What are your hopes for the future?

Answer: “To keep doing more of the same and to keep growing,” she says. “Ideally, maybe in the next year or so, I’d like to take on another office and grow my territory but this will need some extensive research first.
“As for now, Belvoir Boston has grown faster than I ever thought it would,” she continues. “When I opened the doors on November 19, 2007, I didn’t realise what a fantastic journey I was about to embark on. It just goes to show that if you’ve got a dream you should hang on to it - sometimes they really can come true!”


• To find your nearest Belvoir office, visit their website at http://www.belvoirlettings.com/


Donna’s top tips for running a successful lettings agency

* Always remain exceptionally professional
* Always follow through on promises made
* Have an open and friendly attitude
* Try to get involved in community events
* Join the local Chamber of Commerce or Ladies’ Circle to get known on the local business circuit
* Good customer service skills are essential
* Listen to the needs of landlords and tenants and work out a solution together
* Ensure you’re accurate in what you say at all times
* Keep informed - try and find out as much as you can about industry laws and regulations so you can pass key information on to landlords and tenants
* Ask for feedback from landlords and tenants, plus get testimonials too
* Encourage potential landlords and tenants to feel relaxed by setting out your office in an approachable and friendly way
* Aim to be the number one lettings agent in your area

Going, going... gone!

The experts at Belvoir Lettings reveal the dos and don’ts of buying at auction

What mistakes do buyers often make at auction? How can you spot a bargain? And, how can you ensure that you’re investing in a money spinner NOT a money pit? Here, the experts at Belvoir Lettings reveal all...


“The main problems buyers seem to have at auction stem from lack of research beforehand, bidding excitement resulting in paying too much, not sticking to their budget, and not factoring in renovation costs, timescales and market forces,” says Gary Legge, proprietor of Belvoir Bourne. “Buyers need to ask themselves why the property’s up for auction too.”

Before hearing the gavel go down at auction it is essential to be fully prepared. Study the auction catalogue, visit the property you’re interested in if possible and set yourself a realistic budget… and stick to it! Remember, as well as the buying price you may also have to pay renovation and refurbishment costs, repairs and maintenance, running costs, service test costs, solicitor’s fees – plus, have some change left over for a contingency fund.

Proprietor of Belvoir Sheffield Rick Flay advises, “Don’t let emotion make you overbid. And, don’t enter the bidding process too early as all you are doing is helping push the price up – remember, it’s the last bid that counts not the first. Also, don’t be bullied into bidding in amounts that the auctioneer wants - if he says I need another £5000, you can bid higher than the previous amount by £1 if you want to!”

A clever buyer will also think about what they’re trying to achieve before bidding on a property at auction. An investment property needs to deliver what it promises.

“You can get fantastic bargains at auction but is it a bargain if it's going to sit empty for a few months every year or if it's going to cost a fortune to refurbish or convert before you can even let it?,” says Terry Lucking, proprietor of Belvoir Peterborough and Corby.

“As there is currently an acute oversupply of rental material you've got to look at the long-term investment and it's extremely important that the property works for you financially,” he continues.

“To do this it is paramount that you keep the property occupied. Because of the current rental oversupply, tenants are now buying with the eye. To keep your property occupied it must be in a good area, it must look pretty on the marketing material and, when a tenant walks in, they need to go wow!

Wayne Mearns, proprietor of Belvoir Southend-on-Sea adds, “Ensure you know the area and popularity of such a property so that you may ensure that re-letting is quick.”

So, is your auction property going to be a money spinner or a money pit?

“Don't get too excited about an auction property being cheaper than the open market,” continues Terry. “10 or 20k cheaper may sound attractive at first but this could soon get absorbed if the property is left empty for a few months each year or if extensive renovation is needed.

“If you're a builder, investor or can do the work yourself then you may be able to convert competitively and steal a deal. But if you need to spend a fortune employing contractors to modernise a property, buying at auction could be a false economy for you.

“Surely it's better to put deposits down on multiple already-refurbished properties than buying cheap and spending your capital on kitchens and bathrooms - you probably won't be able to release this capital for at least six months.”

Terry strongly advises that you don't get emotionally washed away with the deal either. “Question your own judgement,” he says. “And, be prepared for others to question your judgement too. Before bidding go and see your local letting agent and get their expert opinion on whether the property is going to be a financially-sound investment for you.”

Proprietor of Belvoir Southend-on-Sea Wayne Mearns adds, “Always inspect the property prior to the auction with a letting agent. We are not specialists at maintenance but we know what the most common faults are when buying an investment property and what will need to be done to bring the property up to a good letting standard.”

• To find your nearest Belvoir office, visit their website at http://www.belvoirlettings.com/

Top tips for buying at auction – 10 dos and don’ts to remember!

Don’t... overbid in the excitement of the sale

Don’t... push the price up by entering the bidding process too early
Don’t... be bullied into large bidding increments by the auctioneer
Don’t... be late. Ensure you arrive early enough to survey your surroundings, sum up the competition and get a good bidding spot
Don’t... be tempted to bid for a property you haven’t done your homework on because the one you originally wanted got snapped up by another bidder

Do... buy with your head not your heart
Do... do your research
Do... stick to your budget
Do... factor in renovation costs
Do... ask yourself why the property is up for auction