17% of BTL LLs have missed a mortgage payment in the last year....

WTF?_2

MissMoneypenny wrote: »

I wonder if the law will be changed, to allow a tenant to claim against a LA if they have failed to ensure that the LL doesn't have mortgage arrears when they rent out the property?

There is a bit on BTL repossessions on this blog:-
http://landlordlaw.blogspot.com/

That would be sensible.

Whilst I'm counting on forced ex-BTL sales to drive volume as the market goes down (and maybe provide me with an affordable house to buy) it's not so good for innocent tenants who find themselves out of a place to live because their amateur BTL LL was an innumerate numpty.

JonnyBravo

!!!!!!? wrote: »

That would be sensible.

Whilst I'm counting on forced ex-BTL sales to drive volume as the market goes down (and maybe provide me with an affordable house to buy) it's not so good for innocent tenants who find themselves out of a place to live because their amateur BTL LL was an innumerate numpty.

Doesn't that mean you'll have to buy a "shoebox" new build flat?

After all, that's what all the BTLers bought? :rolleyes:

WTF?_2

JonnyBravo wrote: »

Doesn't that mean you'll have to buy a "shoebox" new build flat?

After all, that's what all the BTLers bought? :rolleyes:

Around my way they were snapping up typical family houses in numbers. As well as the fantastic luxury apartments of course, with tremendous investment potential.

silvercar

All BTLers did was move a property that was available to be bought to one that is available to rent. Same number of homes for same number of people.

Second home owners actually removed a home from the available stock.

IveSeenTheLight

Trollfever wrote: »

And on last night's Location, Location, Location how many times was the word investment used in relation to property?

Didn't watch the programme but surely any home which is bought is an investment.
The investment being that at the end fo the mortgage, you are no longer having to pay a monthly outgoing for residency in a property

IveSeenTheLight

!!!!!!? wrote: »

Slightly old news, but worth highlighting:

http://firstrung.co.uk/articles.asp?pageid=NEWS&articlekey=9822&cat=44-0-0

Buy to let landlords are 'feeling the pinch', according to new research from market research agency BDRC. More than 50 per cent of landlords admitted having experienced a void, (a time when their property did not generate rent), according to the survey; which comprised more than 500 30-minute online interviews with residential property landlords...
As a result of these voids, 17 per cent of landlords missed a mortgage payment in the past 12 months, up from 9 per cent in quarter four 2007 and the highest level since the research began.


Oh dear, not much sign of those green shoots, is there?

Interesting how you chose not to quote the last part of the article

Six per cent of landlords said they had already bought a repossessed property and a further 65 per cent said they were interested in buying one.



Commenting on the results, Mark Long, client services director of the BDRC:

"While there is currently pessimism among British landlords about the state of UK financial markets, the majority have faith in property as a long-term investment and many are taking advantage of the opportunities presented by the credit crunch to expand their lettings business."

It's good to highlight issues, even better if you make it a balanced post

P.S.

Whenever there are reports, it's good to look at the source info to understand the figures behind the headlines. Interestingly there are no details available for the BDRC report that I can see.
Even more interestingly that the CML state that only 0.9% of BTL's were 3+ months in arrears at the end of q1 2008
http://www.cml.org.uk/cml/statistics

John_Pierpoint

MissMoneypenny wrote: »

I wonder if the law will be changed, to allow a tenant to claim against a LA if they have failed to ensure that the LL doesn't have mortgage arrears when they rent out the property?

There is a bit on BTL repossessions on this blog:-
http://landlordlaw.blogspot.com/

Nothing to stop the intending renter doing the same as any buyer with half a brain cell would do:

Invest 3GBP on the land registry/house price site and find out which mortgage company and when bought for how much (less fraudulent gifted deposit).:rolleyes:

Move into a property with a sub prime second MEWed mortgage and you deserve to be chucked out on the street.
Whose capital do you think you are renting?

(I would make simple capitalist economics a required GCSE for all 16 year olds).

pickles110564

!!!!!!? wrote: »

That would be sensible.

Whilst I'm counting on forced ex-BTL sales to drive volume as the market goes down (and maybe provide me with an affordable house to buy) it's not so good for innocent tenants who find themselves out of a place to live because their amateur BTL LL was an innumerate numpty.

But it is not good for LL's who have amateur Tenants that dont pay their rent and trash the place.

Captain_Mainwaring_2

!!!!!!? wrote: »

That would be sensible.

Whilst I'm counting on forced ex-BTL sales to drive volume as the market goes down (and maybe provide me with an affordable house to buy) it's not so good for innocent tenants who find themselves out of a place to live because their amateur BTL LL was an innumerate numpty.

Just as likely to be forced sales of family houses, so be aware that you may have to clear the kids toys off the lawn.

If BTL's are defaulting then I dread to think what state the rest of the UK's finances are in.

WTF?_2

IveSeenTheLight wrote: »

Interesting how you chose not to quote the last part of the article



It's good to highlight issues, even better if you make it a balanced post

P.S.

Whenever there are reports, it's good to look at the source info to understand the figures behind the headlines. Interestingly there are no details available for the BDRC report that I can see.
Even more interestingly that the CML state that only 0.9% of BTL's were 3+ months in arrears at the end of q1 2008
http://www.cml.org.uk/cml/statistics

Goodness knows why firstrung chose to tack the last bit on as it had absolutely nothing to do with the story which was that 17% of BTL LLs had missed payments.

I would guess it was put in as a sort of a sweetener to try to add a bit of feel-good to the story.

Sure, some competent LLs - NOT the amateur ones missing the payments because they didn't do their sums right - will be looking to capitalise on falling prices. Absolutely zilch to do with the rest of the story.