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The Wilsons are going under.
Comments
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Why would the bank want houses back? Being BTL landlords is not a bank's business.when nearly 100 of his properties, 13% of the total, were occupied by tenants who were not paying all or part of the rent. "We asked for a meeting with our lenders. I said, if you think you can run the show better than me, you can have them all back.
The banks have lent money at interest - they want money at interest back.
The fact that rental payments for 100 properties are not meeting the rent should mean the Wilsons find the money to cover the shortfall from elsewhere.
Beyond ridiculous he thinks he could just hand them back and their involvement settled. If I took a big loan and invested it in RBS shares, and they crashed in value, would the banks be happy if I said, take the RBS shares back?
They, after all, have repeatedly told the press how successful and smart they are - and supposedly wealthy. They borrowed all the money for hundreds of houses... pay money back as it is due.
Did they not factor in falling rents and voids in a recession when they carried on buying hundreds and hundreds and hundreds of houses? Sick beyond belief.
Flog the family home, their cars, the farms, anything of value in their horse racing operations, the other houses the own which have no mortgage on them or lots of equity.... to raise what they owe their lenders.0 -
Interesting. Those who wished them to go under look like being disappointed.
Very disappointed.He is now paying an average of just 2% interest. "I earn a yield from rents of around 5% and pay 2% in interest. The average mortgage cost is about £300 per month with £800 income. This gives about £300 per unit per month after paying agent and repairs etc. The renting game has never been better. I do not have one house available to rent in Ashford, Maidstone or Hawkinge."
He has also renegotiated payment terms so that, instead of paying at the start of the month, he now pays at the end of the month to help with cashflow. It means that, despite the credit crunch, falling property prices, falling rents (down 10%, he says) and jobless tenants, in 2009 the Wilsons earned more income – and paid more tax – than at any time in their lives.
Not only that, but it seems by selling all these houses to FTB's, they risk creating a massive shortage of rental houses in Ashford.But the Wilsons' decision to sell their properties has dismayed officials at Ashford borough council. They fear a flood of evicted tenants at a time when the waiting list for council houses is already lengthy. "Your business decision to sell your portfolio of properties in Ashford, Shepway and Maidstone obviously will have an effect on the stability of the housing market," Tracey Kerly, head of Ashford's housing department, said in a recent letter to the Wilsons, in which she begged for a "staggered serving of notices" on tenants "to give us some time to prepare options with future families that may become homeless".
Oh dear..... It seems landlords serve a useful purpose after all.....“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
For the first time there is enough info in this article to work out how large the Wilsons mortgage is.
He states the average mortgage payiment is 300 per month and the average interest rate is 2%
So 300 x 12 = 3600 per year mortgage repayment.
3600 / 2% = 180,000
This is exactly the asking price as stated in the article.0 -
Quelle surprise. In an above post I calcualted the value of the portfolio at 126 million.
Quelle surprise. You were wrong.
From the article......the difference between his borrowings and the value of his properties "is around £180m, although it was as high as £225m".
The average mortgage cost is about £300 per month with £800 income, but that only applies to houses with mortgages, presumably not all do, and it doesn't make it clear if some of those mortgages are repayment, or if all are interest only.
You also value the entire estate as being nothing but 180K 2 beds, he also has lots of larger 3 bed plus detached, currently selling around the 240K to 250K mark.Properties offered by Connells included a two-bed terrace, which the agents said belonged to the Wilsons, at £180,995 (Land Registry figures suggest it was bought by them for £105,000 in July 2002) and a three-bed detached house at £245,000 (acquired for £156,000 in October 2002).
If they achieve these sorts of prices, then it's likely the Wilsons will be making a considerable profit, and, thanks to the reduction in capital gains tax to 18% in 2007, will face only a small tax bill“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
HAMISH_MCTAVISH wrote: »Quelle surprise. You were wrong.
From the article......
The average mortgage cost is about £300 per month with £800 income, but that only applies to houses with mortgages, presumably not all do, and it doesn't make it clear if some of those mortgages are repayment, or if all are interest only.
You also value the entire estate as being nothing but 180K 2 beds, he also has lots of larger 3 bed plus detached, currently selling around the 240K to 250K mark.
I have just done a post where I worked out the average mortgage. What we need to know now is the actual selling prices that are being achieved for the type of house they invested in.0 -
Buy-to-let is "absolutely dead and will never return".
From the horses mouth.
Spin that Hamish.0 -
Spin that Hamish.
Sure........The renting game has never been better. I do not have one house available to rent in Ashford, Maidstone or Hawkinge."the Wilsons' decision to sell their properties has dismayed officials at Ashford borough council. They fear a flood of evicted tenants at a time when the waiting list for council houses is already lengthy.despite the credit crunch, falling property prices, falling rents (down 10%, he says) and jobless tenants, in 2009 the Wilsons earned more income – and paid more tax – than at any time in their lives.
Seems there's still some life left in the old dog yet......“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Damn your eyes Hamish.HAMISH_MCTAVISH wrote: »Sure........0 -
HAMISH_MCTAVISH wrote: »
The average mortgage cost is about £300 per month with £800 income, but that only applies to houses with mortgages, presumably not all do, and it doesn't make it clear if some of those mortgages are repayment, or if all are interest only.
.
And you believe Fergus Wilson.
:rotfl::rotfl::rotfl::rotfl:
Paying more tax than ever, £300 interest against £800 income, 2% interest rates - but had to negotiate to pay at the end of the month rather than the start.
Only 3 months ago to counteract arrears stories, Fergus was claiming "the cheque in the post"
Naive beyond belief.
The banks are forcing the sales. FACT.US housing: it's not a bubble
Moneyweek, December 20050 -
Interesting. Those who wished them to go under look like being disappointed.
I for one will be very dissapointed if this hideous couple are not selling the Big Issue by this time next year (and I won't buy a copy from them either).
The home rental market is no place for speculators but that is exactly what these two are. Hundreds of tenants now face severe disruption whilst the Wilson's unpick the mess they have created.
They are gamblers who were allowed to get in way out of their depth. They were still buying in 2007! They have been thrown a life jacket thanks to government bail outs and artifically low interest rates. Its the savers and tax payers however who are picking the tab for the folly of people like this.
Yes I would be dissapointed if the Wilson's empire fails to go tits up, very. As it is I have no fears. The 70% club economist reliably informs me that with 500 mortgages in tow, the Wilsons will be seeing cheap mortgage deals falling off the end of the conveyor every month. The interest rate bill will be ticking round like an accelerating petrol pump meter. And then there is the little matter of the £ and interest rates.
OFFICIAL MESSAGE FROM THE 70% CLUB TO ALL HOME BUYERS IN THE ASHFORD AND MAIDSTONE AREA
Try to be selective in your house hunting habits ..... if you now what I mean. Even better, could can you put off you buying plans for 12 months?0
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