Wilsons - The buy-to-let gurus' empire crumbles

MissMoneypenny

GDB2222 wrote: »

It was always obvious that the one thing the lenders weren't going to do was dump 700 properties on the market as repos all at the same time. They may have been stupid lending, but they have wised up.

We have no idea just what the deal is that's been struck, but the Wilsons are putting the best spin on it that they can.

It appears that the lenders are now taking over the running of the properties.

"the properties were being clustered together in 'management arrangements', formed with the agreement of lenders, or even managed by lenders"

"It is likely that lenders have 'encouraged' the couple towards a solution that avoids repossession or wholesale receivership."

"Such action is 'unheard of', according to Lee Grandin, a mortgage broker for landlords and an authority on mortgage lending to the private rented sector. 'If there is no problem with cash flow, it is hard to see why landlords would want to enter into management arrangements,' he says.

'In cases like this, you would expect lenders to want to work closely with landlords, as it would be difficult to shift so many properties in a small area.'"

phil_b_2

I think these 'The death of the Wilsons' threads are going to run and run on here until people realise they arent actually going down and get bored (or embarrassed).

Spartacus_Mills

HAMISH_MCTAVISH wrote: »

Not any more......

In April 2009, B&B, to whom the couple paid a staggering £350,000 in monthly mortgage interest, allowed them to swap a fixed mortgage rate of 5.24 per cent, maturing in 2012, for a variable rate of 2.25 per cent. Ordinary borrowers in difficulty could only dream of similar assistance.

Graham, top tip.....:money:

Debate is always more satisfying when you bother to read the article.;)

What's the old saying, or a derivation of it, if you owe the bank a thousand pounds its your problem. If you owe the bank a million pounds its their problem.

Interesting that they are still struggling on this variable rate.

Spartacus_Mills

HAMISH_MCTAVISH wrote: »

Not any more......

In April 2009, B&B, to whom the couple paid a staggering £350,000 in monthly mortgage interest, allowed them to swap a fixed mortgage rate of 5.24 per cent, maturing in 2012, for a variable rate of 2.25 per cent. Ordinary borrowers in difficulty could only dream of similar assistance.

Graham, top tip.....:money:

Debate is always more satisfying when you bother to read the article.;)

Hamish

p/k/b mate :beer:

MissMoneypenny

What's interesting is that the Wilsons did realise they were in trouble as least 12 months ago and have managed to offload 200 of their 900 houses in that time - while doing their bit to talk up the market and hoping for an "investor" to buy the rest of their 700.

Fergus once said in an interview that the exit strategy of their business plan was to sell to first time buyers. At least he realised they needed an exit plan, even if it was deeply flawed.

Charterhouse

Thing is, interest rates are as low as they will ever be. They really have staved off a disaster now for a bigger one when rates start to rise. It's going to be an absolute car crash.

PayDay

Charterhouse wrote: »

Thing is, interest rates are as low as they will ever be. They really have staved off a disaster now for a bigger one when rates start to rise. It's going to be an absolute car crash.

Ssssssssshhhhhhhhh....don't tell people that. The "It's me penzion, innit" brigade just think they will be able to raise their rents to meet their mortgage payments and all the LHA benefits will not only continue to be generous, but will rise.

baby_boomer

Incredible that the taxpayer (via the B&B re-mortgage deal at 2.25%) is going to keep these two arrogant people afloat .

Here's one taxpayer that objects.

We should have negotiated a deal by which we, the taxpayers, got 90% of any future profits in the event of a market up-turn.

SmartPricePrincess

wow! In theory what would happen if all the properties were repossessed?

Maybe the banks should offer the tenants who are servicing the loans the option to buy at a reduced price?

Thrugelmir

chucky wrote: »

if you bought those properties as part of their Ltd company - you would avoid paying stamp duty on the properties...
just a thought for you property wannabes out there...

Tip 2. Make sure you can obtain the finance first as a Limited Company before committing to a purchase.