Meet the Wilsons Part2 - Fergus goes mad on Radio 5

fatpig_2

Are they not dead yet?

sarkin

Generali pointed me in the direction of these guys the last time I debated the Wilsons

http://en.wikipedia.org/wiki/Hunt_brothers

stevetodd

PasturesNew wrote: »

Has anybody calculated their potential CGT bill?

I thought they were in trouble, are you sure they are going to sell showing a profit? Does anyome know?

novazombie

Buy to Let landlords face extra Margin Call payments
With the news today that Abby National is invoking Margin Calls (extra payments when LTVs fall below a certain value) on some of there mortgages buy to let is at far greater risk. In October MoneyWeeks Editor-in-chief Merryn Somerset Webb who has long predicted the crash predicted the demise of buy to let through these Margin calls.

Quote:
Could this be the ruin of the buy-to-letters?


I appeared on BBC Breakfast last week with a buy to let investor who was convinced he was very rich. He had, he said, made £8m out of the buy to let boom. Further chat revealed that he had properties valued at £8m but £5.5m worth of debt. So he is on paper ‘worth’ £2.5m. You might think that sounds like a reasonable margin of error but I’m not sure its enough: property can turn nasty fast. Many of the reasons not to invest now (the main one being the fact that yields are lower than interest rates) have been widely discussed but here’s one more reason to steer clear. Buy to let mortgages deals tend to contain little read covenants regarding the loan-to-value ratio of the mortgage. In a rising market this isn’t the kind of thing borrowers take notice of but in a falling market they may find that it is the ruin of them.

It works like this. The loans allow lenders to periodically revalue properties (at the borrowers expense naturally). If the value has fallen and the loan to value ratio has, as a result, risen above the level required by the mortgage (say from 80% to 85%) the lender can then ask the borrower to come up with more cash to get it back down. The result, says my lawyer friend, will be that as capital values drop, buy-to-let investors will start to receive letters from the lenders along the lines of 'Dear Mr Bloggs, I should be grateful if you would restore your loan to value ratio by sending us a cheque for £25,000'.

This, most mortgaged-up-to-hilt investors will be utterly unable to do. The result? Panic selling and not just from the market’s new entrants. People who have been in the market for more than a few years are keen to suggest that they will be immune from any drop in prices thanks to the equity they have built up. But most of them – the man I met on the BBC sofa included - have also bought new properties in the last year. If margin calls – for this is what they are - start coming in on these how are they going to come up with the cash? No one’s immune.

http://www.moneyweek.com/investments...o-letters.aspx
:eek:


Any up to date info on the Wilsons and the situation now?

MissMoneypenny

It looks like SquatNow was right.

macaque_2

Kenny4315 wrote: »

BTL isn't really dead those with any sense have it on hold, with cash in bank waiting, and next year will be taking full advantage of the market turbulence, when the BTL market becomes somewhat less competitive.

Traditional BTL landlords look for rents of 12%+. Currently the return is under 4% but rising. If you are saying the traditional landlords will be back in the buying business next year you are suggesting that this correction will take place over the next 12 months.

Whilst I am pleased to welcome you to the 70% club, I don't think it will happen as quickly as you are implying.

dopester

Kenny4315 wrote: »

:beer: Suppose I could rent them a flat but I'd charge them triple the going rate !!! :beer:

BTL isn't really dead those with any sense have it on hold, with cash in bank waiting, and next year will be taking full advantage of the market turbulence, when the BTL market becomes somewhat less competitive.

Pretty amusing. Economies all over the world are buckling the strain of the most powerful forces.

It is quite possible it could lead to much darker, even a new reign of terror in many countries... and yet BTL scummers who expect BTL to be their ticket to wealth in the next year or so.

For all that I know history and abhor such actions, BTLers might be lucky not to be rounded up and put in a detention camps if economic forces bring about delusional politics with recriminations. All for the love of HPI.

Actually though, history often shows the worst excesses of recriminations comes not in the decent in to economic depression, nor during the time/years at the bottom, but as economies show some slight improvement and get a little stronger. Like with the French Revolution. Off with their heads.

Greece has been in turmoil for 11 days. The mood seems to have turned "pre-insurrectionary" in parts of Athens - to borrow from the Marxist handbook. This is a foretaste of what the world may face as the "crisis of capitalism" - another Marxist phase making a comeback - starts to turn two hundred million lives upside down.

We are advancing to the political stage of this global train wreck. Regimes are being tested. Those relying on perma-boom to mask a lack of democratic or ancestral legitimacy may try to gain time by the usual methods: trade barriers, sabre-rattling, and barbed wire.

Dominique Strauss-Kahn, the head of the International Monetary Fund, is worried enough to ditch a half-century of IMF orthodoxy, calling for a fiscal boost worth 2pc of world GDP to "prevent global depression".

"If we are not able to do that, then social unrest may happen in many countries, including advanced economies. We are facing an unprecedented decline in output. All around the planet, the people have reacted with feelings going from surprise to anger, and from anger to fear," he said.

http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/3870089/Protectionist-dominoes-are-beginning-to-tumble-across-the-world.html

dopester

Last night I re-familiarised myself with The European Convention on Human Rights/

Greece has been in turmoil for 11 days. The mood seems to have turned "pre-insurrectionary" in parts of Athens - to borrow from the Marxist handbook. This is a foretaste of what the world may face as the "crisis of capitalism" - another Marxist phase making a comeback - starts to turn two hundred million lives upside down.

SECTION I
ARTICLE 2

1. Everyone's right to life shall be protected by law. No one shall be deprived of his life intentionally save in the execution of a sentence of a court following his conviction of a crime for which this penalty is provided by law.

2. Deprivation of life shall not be regarded as inflicted in contravention of this article when it results from the use of force which is no more than absolutely necessary:
* (a) in defence of any person from unlawful violence;
* (b) in order to effect a lawful arrest or to prevent escape of a person lawfully detained;
* (c) in action lawfully taken for the purpose of quelling a riot or insurrection.

Max_Headroom_3

dopester wrote: »

Pretty amusing. Economies all over the world are buckling the strain of the most powerful forces.

It is quite possible it could lead to much darker, even a new reign of terror in many countries... and yet BTL scummers who expect BTL to be their ticket to wealth in the next year or so.

For all that I know history and abhor such actions, BTLers might be lucky not to be rounded up and put in a detention camps if economic forces bring about delusional politics with recriminations. All for the love of HPI.

Oh dear!! :rotfl:

novazombie

Any updates on the Wilsons?

Have they got to make margin calls on the depreciation of their 900 houses?

Have they started trying to sell any yet?

I think we should all club together and put in offers of less than 50% asking price.