Flat lost 70% in 2 years (now includes margin call link in post #40)

IveSeenTheLight

Regarding margin calls: -

See how it was explained in the following: -

http://forums.moneysavingexpert.com/showpost.html?p=10709113&postcount=26


http://forums.moneysavingexpert.com/showpost.html?p=10713609&postcount=38

It was even explained to you here
http://forums.moneysavingexpert.com/showpost.html?p=10241047&postcount=2

In March
http://forums.moneysavingexpert.com/showpost.html?p=9567571&postcount=7

And in February
http://forums.moneysavingexpert.com/showpost.html?p=8655173&postcount=29

Fact is no-one has shown a clause that includes Margin calls.
Even if there were to be one or two somewhere. The lack of proof for so long makes you wonder if the percentage is negligable

m00m00

I would like to see someone provide some proof of these mystical margin calls in BTL contracts.

why do people need to invoke them to show the folly of buying new builds when there's enough empirical evidence around anyway to show it's somewhat akin to lemmings near a cliff behaviour (and yes I do know that the lemming thing is a myth too)

IveSeenTheLight

ianmr65 wrote: »

They're hardly going to have a big sign on the clause saying this is the LTV margin call bit!!.... but if your contract's 'debt' clause allows you to make voluntary overpayments, then i bet it allows them to demand mandatory overpayments, otherwise known as margin calls.

This ucb specific clause goes even further as it basically gives them the right to make margin calls at will!!

Note the sentence before the 5 clauses

"We may set and vary from time to time the monthly payments to reflect:

(i) the current interest rate applicable to the debt;

(ii) the debt;
(iii) the current payment method;
(iv) the term;
(v) your chosen monthly payment date.

They may set monthly payments. Again, nothing which states about asking for a margin call to make up the LTV shortage.

Ok, I'm finished now. It's been explained numerous times on here before

guppy

PasturesNew wrote: »

Research by the Essential Information Group and the auctioneers Allsop reveals the extent of the meltdown in new-build flat prices.

The study looked at new-build flats sold at auction between January 2005 and February 2008.

It found that the value of the average new-build flat had plunged by 26 per cent.

Only 20 of the 535 flats sold at auction, which are typically ‘distressed sales’ such as repossessions, were sold for a profit.

Cheers for posting that. Seen a few shockingly low auction results for repossessed new build flats in my area (South East) and had wondered how widespread this was.

On the other hand, given all the incentives which weren't shown on the original Land Registry price most of those places were never worth the initial price agreed anyway.

Given the downturn has only really started there's bound to be interesting times ahead.

guppy

SouthCoast wrote: »

PN. I can do £550k.

Been on and off the market for ages:

http://www.rightmove.co.uk/viewdetails-17874925.rsp?pa_n=1&tr_t=buy

IMO the most overpriced flat in all of Sussex.

This is surely a joke? Littlehampton?! :rotfl: !!!!!!???

No doubt the price is heavily influenced by the excellent transport links to Worthing and Bognor Regis?

obsessed_saver

If anybody spots any flats in Cambridge going for auction, let me know.

neverdespairgirl

IveSeenTheLight wrote: »

Regarding margin calls: -

Fact is no-one has shown a clause that includes Margin calls.
Even if there were to be one or two somewhere. The lack of proof for so long makes you wonder if the percentage is negligable

Even if there were such clauses, it would be hard to see how they could work. Someone would need to value the flat, who would pay for the surveyor, etc? Doesn't sound very likely to me.

As you've said, though, it does of course become very relevant if a fixed-term deal ends, and LTV is then assessed.

IveSeenTheLight

neverdespairgirl wrote: »

As you've said, though, it does of course become very relevant if a fixed-term deal ends, and LTV is then assessed.

I believe this term is called a SVR trap

PasturesNew

neverdespairgirl wrote: »

As you've said, though, it does of course become very relevant if a fixed-term deal ends, and LTV is then assessed.

Ah! Yes, that'd do it wouldn't it.

Even if you just counted in the fact that LTVs have dropped in many cases, even if the market stayed flat and didn't drop, this'd kick into play.

PayDay

We seem to be crossing into the anger stage now.