Resident Broker - latest news

BM Solutions reduce buy to let rates

Something of a rarity these days is news that a lender has reduced their rates. And at the weekend BM Solutions did just that (What, didn’t you see our rate alert?).

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The actual reason for this rate reduction is a little confusing - well it is for me anyway. BM are one of the few 75% buy to let lenders around and therefore do not need to try for market share at the moment. Dropping their rates will hardly affect their volumes (their credit scoring will make sure of that); however, it is a good sign that they are still committed to the buy to let market.


Mortgage Lending still increasing

Even more good news from the Council of Mortgage Lenders that gross lending was 26% higher in July than in June. Keep it coming.


New lenders? Rumours emerge

Over the last couple of weeks there have been rumours in the mortgage trade press of 3 big lenders considering a return to the UK mortgage market. Kensington is one of the names being written about. Let’s hope its sooner rather than later, as we definitely need some competition in the market – although I wouldn’t expect a Kensington 90% buy to let mortgage returning quite yet! The significance of any new mainstream lender would have very positive effect on the confidence of both buyers and sellers, and crucially it could lead the way for others. Watch this space.





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Landlord attacked by tenant with a drill

A tenant drilled into his landlords head after the landlord had asked him to move out of his property.

The tenant, Raymond Douglas, 44, allegedly attacked his landlord Lee Woodford's with the power tool fracturing his skull and drilling into his chest.

The landlord, Lee Woodford recounted how his former tenant literally flipped out.

Raymond Douglas has denied trying to murder Mr Woodford in Herne Hill, South London.

The case is currently been heard at the Old Bailey.

Read more on the horrific attack on a landlord

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Landlord Action warns investors about rogue property sourcing companies

Landlord Action warns investors about rogue property sourcing companies

Landlord Action, a company specialising in tenant eviction and troubleshooting throughout the UK, has recently reported that their debt recovery department has never been busier due to pursuing rogue property sourcing and investment companies. Worryingly there are an increasing number of companies who have been asking for upfront fees to source below market value deals and marketing property deals that, once surveyed for mortgage purposes, are figures far short of the original claim. Companies then refuse to refund fees so investors employ the services of Landlord Action to help recover their monies.

Paul Shamplina, Director of Landlord Action comments: “As the market climate has changed some companies are struggling financially and are using investor deposits to fund their business operations rather than holding funds on deposits to be returned if deals do not happen. Therefore, we are seeing an increase in the number of instructions for individuals and companies who it seems have been ripping off investors by supplying ‘bogus discount deals’. The industry needs to be governed to include a code of conduct in regards to these companies, working closely with the FSA.”

One such company, one that Landlord Action have issued a number of legal proceedings against, the Ahuja Group, are certainly one of these firms where clients have discovered that many of the deals they promoted were an illusion. One private investor found herself the victim of the Ahuja Group when she brought a deal at £3,000 that she thought fitted her investment criteria. The value of the property was supposed to be £100,000 with a monthly rental income of £1,541. Once the survey had been completed the valuation came in at £72,000 and the rental figure at just £375, a figure far off what had been originally claimed. Landlord Action was instructed and a claim for £4,816 including legal costs was proceeded with via the Small Claims Court. This was ignored so, eventually, the court appointed sheriffs to place ‘notice to remove’ on three cars at the directors home address. With no payment still received they returned and seized one of the cars. The investor in question has now received payment in full.

Shamplina says: “These rogue sourcing companies are often unwilling to release many details on the property so investors need to research themselves into the property values, rental prices and the level of demand in the area. As well as this I would highly recommend that investors research the sourcing company itself via its trading record and look at its auditing history. Also, although not guaranteed, listen to other investor’s recommendations. There is a good chance the company is reputable if others have received a good level of service. My final advice, when going through with a deal, is to double check the terms and conditions and keep in regular contact with the company in question.”

Landlord Action

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Property Dreams Collapse for North West Landlords

The glittering dream of property investment continues to tarnish for many of the hopeful 'dream catchers' who were blinded by the never ending upward surge of the property market.

Guaranteed rental income lured hundreds of wannabe property investors into new developments in the North West that have never been built.

One such dream provider, Dylan Harvey Residential Ltd (DHR), which is part of the Dylan Harvey Group, went into administration two weeks ago with debts of £100 million.

This has left 500 property investors without a property and without their cash deposits, of up to £20,000. Nightmare!

Many are uncertain as to whether they will be refunded any money after the collapse.

Dreams can come true, but often they don't..... Life hurts,.. I'm off for a snooze.

Read the full article in the Times

Buying off-plan development tips

Tips of the week - Resident broker

Here's a couple of tips from our Resident Broker. He's more than a pretty face....I particularly like Tip 2, relevant for any landlord looking at selling at the moment.

Tip of the week 1: Estate Agents overcharging for HIPs

BBC’s Watchdog has revealed that many vendors are being charged excessive amounts for Home Information Packs. In some instances up to £500 when a competitive cost would have been nearer to £200. So, the moral of the story is - don’t use an estate agents HIP, but go to low cost providers like http://www.hips4u.com/ and save yourself some money. There are many others if you would like us to point you in the right direction.

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Tip of the week 2: Selling a property? Then consider this a gift

Many investors are still buying and then selling in this current environment, so here’s a tip for them. If your target market are primarily first time buyers, then consider offering them a 5% gifted deposit as part of the sale. Most of the major lenders are happy with this, and it means the first time buyer doesn’t have to save as much deposit – which is certainly one of the big issues for them at the moment. Consider this, a £100,000 property being offered at £100,000 with a 5% gifted deposit is much more favourable that just reducing the price to £95,000 as they can effectively buy the house for half the initial outlay.






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Property Price Twitter - more tweet on the street.

Rightmove data shows national drop of 2.2%
Post on levels of property repossessions
Sellers drop asking prices

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