50% house price falls

tr3mor wrote: »

You're confusing Gordon Brown with Ocean Finance!

You're right there boyo
:T :T

I've gotta go guys...got some valuations to do...sure you will all miss my valuable contributions to this thread this afternoon but will be back as soon as I can for some more topical discussions. Laters !!!

I go on holiday, worrying about the storm clouds gathering, at the start of August.
I came back at the end of August to a full scale crisis, it reminds me of the summer of the invasion of Kuwait.

In two days BBC Radio 4 has a Question of Money program; featuring these three experts:
· Jonathan Davis, spokesman for housepricecrash.co.uk
· Richard Hair, of the National Association of Estate Agents
· Ray Boulger, of mortgage brokers John Charcol
Then they follow it up with news of sub prime lending to self certified mortgagors, who are prepared to "inflate" their incomes by 100% together with BTL mortgages of over 100% on false declarations to the Land Registry of sale prices. (EG A sale of a 200K flat on a 85% BTL mortgage with a 30K kick back is really a 100% mortgage on a 170K flat; and let's do something Chavvy with the 30K if we ever had it.).

Roll on the repossessions - I am stalking a house, where the couple are splitting up and a modest 3GBP investment with the Land Registry tells me that they have a SECOND mortgage with an American sub prime lender.
[All strictly in the name of research you understand - I'll let you know the eventual sale price, the asking price is 250K].

Harry

http://news.bbc.co.uk/1/hi/business/7010415.stm
http://news.bbc.co.uk/1/hi/programmes/moneybox/6999374.stm
http://www.thisismoney.co.uk/mortgages/buy-to-let/article.html?in_article_id=424583&in_page_id=56&ito=1565

Getting a bit off topic but, I would recommend, especially in the present climate, accessing the Land Registry BEFORE going to view a potential purchase. For 3 GBP you get a plan showing the extent of the property and for another 3 GBP the register entries: A Property - B Proprietorship - C Charges. A confirms what you can already see in the plan BUT legally it is the writing not the plan that is more powerful. B tells you who really owns it. C tells you about their freedom of action over what they own. The dates against each piece of information help you understand the age of the property and how long the sellers have owned it (If nothing else alarm bells ring if the sellers appear to disagree with the Land Registry;))

So in the doctored example below:
1. The people who sold the land for building have put some restrictions ("burdens") on the proprietors' freedom (you sometimes have to pay a few more 3 GBP's to find the details - it can be anything, but something saying they can restrict further construction on the land is significant.)
2. The developer has added some more restrictions, possibly for the benefit of the estate as a whole.
3&4. The (well known) Plc, which provided the original mortgage, won't let the land be sold until it gets its money back.
5&6. The (notorious, according to Google, USA based) Ltd subsidiary, which provided the second mortgage, won't let the land be sold until it gets its money back.

So you now know that Mr & Mrs seller paid xxxxx GBP to buy the place in 2003 and used Plc, the well known UK mortgage provider, to finance their purchase, though you don't know their Loan to Value.
BUT
Three years later here they are getting a further mortgage. WHY are they getting it from Ltd and not from Plc.; are they over 100% LTV, stupid or desperate? Probably all three?

Mr & Mrs seller have set themselves up for "gazundering" in a falling market.

C: Charges Register
This register contains any charges and other matters
that affect the land.
1 The parts of the land affected thereby are subject to the rights
granted by a Deed dated...............said Deed also contains restrictive covenants.
NOTE: Copy filed under XXXXXXXX.
2 A Transfer of the land in this title dated ...............made between
(1) ................... Limited and (2) ........... and .............
................ contains restrictive covenants.

3 (dd.10.2003) REGISTERED CHARGE dated dd mmmmm 2003 to secure the moneys including the further advances therein mentioned.
4 (dd.mm.yyyy) Proprietor: aaaaaaa PLC (Co. Regn. No. 99999999) of ...........................................

5 (dd.07.2006) REGISTERED CHARGE dated dd mmmmm 2006.
6 (dd.07.2006) Proprietor: bbbbbbbbbbbbbb LIMITED (Co. Regn.
No. 8888888) of .........................................

End of register
Title number xxxxxxxx

Update:
You should be able to save the first 6 GBP because copies of the plan & register should be in the HIP. Ask for it!

tr3mor wrote: »

You're confusing Gordon Brown with Ocean Finance!

come the next general election thats the only place that he'll get a job with money

so much for a party that supports ''the common man'' because of skyrocketing house prices and buy to let investors replacing pensions with houses, the housing market is screwed and ''the common man'' can't afford a house