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2011 Property Law changes
2011 sees new laws affecting the buying, selling, letting and construction of property in England and Wales, detailed in our Letting Laws section.
Cleethorpes shop freehold £3,000
Interested in a small Cleethorpes shop, formerly Hairdresser ? 1-storey in 2-storey road so maybe build on top ? e-mail vincent@buy-to-let.me.uk
(and you may want to look into Mortgages)
Recent Buy To Let Gloom News
The property market generally has had some recent Buy To Let gloom news in the UK, USA and elsewhere, about buy-to-let landlords struggling to pay their loans or even having their properties repossessed.
This gloom news almost entirely related to more foolish speculative Buy To Let landlords who were mostly new entrants of recent years and paying high mortgage rates, and could not raise their rents in current tight economic conditions. This generally means that the Buy To Let that they took on was not a profitable investment to make, and they had not appraised it properly before taking it on - something that this website has always warned strongly about and always will warn strongly about.
Currently low property prices, and low interest rates, are good for first time buying in 2011. But with the current recession UK house prices are expected to fall further in 2011, when loan interest rates should at some point rise. Right now is a good time for buying property to let with cash or on a good fixed rate loan, especially as rent levels should also hold up well. And if you are after a new mortgage then now is a good time to go for a fixed rate mortgage rather than a variable rate mortgage.
Those with existing property portfolios may well have been accustomed to raising increased loans based on increasing property values. The fall in property values from 2008 make that a problem now and probably more so for 2011, and may require loans to be on rent incomes instead. And older home-owners with lower property values may delay intended moves till beyond 2011, so those catering for the elderly may face low demand for a time.
Also, in difficult times the best of tenants may lose their jobs and have to apply for housing benefit welfare to pay their rent and this may involve some rent delay. But once this is in place it should make rent more secure. (English local authorities will consider paying a landlord directly where there is evidence that the tenant is unlikely to pay their rent and 'making direct payments would be in the interests of the tenant.' Where arrears of benefit have reached 8 weeks, the local authority is more likely to agree to make payments direct to the landlord 'unless it is not in the tenant's overriding interests to do so.' However, landlords should not wait for the 8 week period to be reached before contacting the local authority.)
If you are thinking of renting out for the first time a house that has an existing mortgage and/or insurance, then you should tell the mortgage company and/or insurance company. If you do not then you risk the mortgage and/or the insurance. Some mortgage lenders and insurers will allow you to remain on the same rates, but others may want to switch you onto their buy-to-let rates (which may be somewhat higher).
If you appraise any Buy To Let investment proposal carefully before you commit to it, then any that you take on should be profitable.
If you do not appraise a Buy To Let investment proposal carefully before you commit to it, then you are always taking a gamble. And gamblers often lose.
This gloom news almost entirely related to more foolish speculative Buy To Let landlords who were mostly new entrants of recent years and paying high mortgage rates, and could not raise their rents in current tight economic conditions. This generally means that the Buy To Let that they took on was not a profitable investment to make, and they had not appraised it properly before taking it on - something that this website has always warned strongly about and always will warn strongly about.
Currently low property prices, and low interest rates, are good for first time buying in 2011. But with the current recession UK house prices are expected to fall further in 2011, when loan interest rates should at some point rise. Right now is a good time for buying property to let with cash or on a good fixed rate loan, especially as rent levels should also hold up well. And if you are after a new mortgage then now is a good time to go for a fixed rate mortgage rather than a variable rate mortgage.
Those with existing property portfolios may well have been accustomed to raising increased loans based on increasing property values. The fall in property values from 2008 make that a problem now and probably more so for 2011, and may require loans to be on rent incomes instead. And older home-owners with lower property values may delay intended moves till beyond 2011, so those catering for the elderly may face low demand for a time.
Also, in difficult times the best of tenants may lose their jobs and have to apply for housing benefit welfare to pay their rent and this may involve some rent delay. But once this is in place it should make rent more secure. (English local authorities will consider paying a landlord directly where there is evidence that the tenant is unlikely to pay their rent and 'making direct payments would be in the interests of the tenant.' Where arrears of benefit have reached 8 weeks, the local authority is more likely to agree to make payments direct to the landlord 'unless it is not in the tenant's overriding interests to do so.' However, landlords should not wait for the 8 week period to be reached before contacting the local authority.)
If you are thinking of renting out for the first time a house that has an existing mortgage and/or insurance, then you should tell the mortgage company and/or insurance company. If you do not then you risk the mortgage and/or the insurance. Some mortgage lenders and insurers will allow you to remain on the same rates, but others may want to switch you onto their buy-to-let rates (which may be somewhat higher).
If you appraise any Buy To Let investment proposal carefully before you commit to it, then any that you take on should be profitable.
If you do not appraise a Buy To Let investment proposal carefully before you commit to it, then you are always taking a gamble. And gamblers often lose.
Doing a Buy To Let property investment properly
You have come to the best website if you want to know exactly how does Buy To Let work, or want advice on UK Buy To Let laws or letting property advice. Visit our different sections from the menu at the top of each page.
Buy a UK house for £600,000 and let it at £600 per month will almost guarantee a LOSS, but buy a house for £60,000 and let it at £600 per month almost guarantees a PROFIT - however property values move. Being a landlord may be a very sound investment - especially if property values rise strongly - yet UK property investment can be risky and lenders will give you a loan for a bad scheme.
There are two main choices for starting as a landlord - buy a house to let when the maximum mortgage will be at most 85% of valuation but interest is tax-deductable, or let your own house and buy yourself a new house when you may get a 100% mortgage but interest is not tax-deductable. The house and its location, and your property management, will need to match the lifestyle of your target tenants. And certainly, before you buy any housing to let or decide to rent your own house and buy a replacement for yourself in England, you should get an expert estimate of your likely profit or likely loss, and also get an estimate of how big a rent and mortgage loan you should be able to get !
Just now is maybe a rather difficult time for doing new Buy To Let property investment, with most mortgage lenders wanting bigger deposits and mortgage rates somewhat high and most property prices somewhat high also. Unless you can find a real bargain property, you could face a first few years of loss-making though you certainly should still do well in the longer term. BUT interest rates in the UK peaked in late 2007 and property prices bottomed in 2009 - early 2011 also sees very low interest rates that should start to increase property prices strongly again. So 2011 should be a year to go for Fixed Rate mortgages rather than Variable or Tracker mortgages, and early-2011 should have the lowest prices and 2011 should give much cheaper mortgages. So if you can manage it, do not delay starting a new Buy To Let purchase now, just look more for a bargain. Recently mortgage rates have begun falling again with lenders regaining confidence.
Buy a UK house for £600,000 and let it at £600 per month will almost guarantee a LOSS, but buy a house for £60,000 and let it at £600 per month almost guarantees a PROFIT - however property values move. Being a landlord may be a very sound investment - especially if property values rise strongly - yet UK property investment can be risky and lenders will give you a loan for a bad scheme.
There are two main choices for starting as a landlord - buy a house to let when the maximum mortgage will be at most 85% of valuation but interest is tax-deductable, or let your own house and buy yourself a new house when you may get a 100% mortgage but interest is not tax-deductable. The house and its location, and your property management, will need to match the lifestyle of your target tenants. And certainly, before you buy any housing to let or decide to rent your own house and buy a replacement for yourself in England, you should get an expert estimate of your likely profit or likely loss, and also get an estimate of how big a rent and mortgage loan you should be able to get !
Just now is maybe a rather difficult time for doing new Buy To Let property investment, with most mortgage lenders wanting bigger deposits and mortgage rates somewhat high and most property prices somewhat high also. Unless you can find a real bargain property, you could face a first few years of loss-making though you certainly should still do well in the longer term. BUT interest rates in the UK peaked in late 2007 and property prices bottomed in 2009 - early 2011 also sees very low interest rates that should start to increase property prices strongly again. So 2011 should be a year to go for Fixed Rate mortgages rather than Variable or Tracker mortgages, and early-2011 should have the lowest prices and 2011 should give much cheaper mortgages. So if you can manage it, do not delay starting a new Buy To Let purchase now, just look more for a bargain. Recently mortgage rates have begun falling again with lenders regaining confidence.
BEFORE you consider making an offer or bid for a property, you may want to apply for a mortgage - lenders will often not need to know what property you want to buy but may want to know what rent you hope to get (which our report can advise). For your Buy to Let house purchase a 10% cheque will normally do for a deposit, but you will get at most an 85% mortgage so you will need another 5% at completion unless the seller is offering a cashback deal. If you want speed, you can get a surveyor to go with you when you view a property but if you need a mortgage then the lender may want their own survey done after also.
If you are considering a Buy To Let and have Microsoft Office Excel on your computer at home or at work, then we can supply a very helpful Buy To Let profit calculator to cost your ideas that also includes a separate mortgage calculator for only £9.99 - click Buy To Let Profit Calculator.
Or at the same £9.99 we will run our expert Buy To Let property investment report and email it to you - using the best UK property investment calculator. Even if your Buy to Let idea is at an early stage, with no actual property in mind yet, you can get a good report on your approximate estimated ballpark figures. You get the BEST overall Buy to Let advice on your proposed Buy to Let investment including rent advice and tax advice at Buy To Let Report.
Or at the same £9.99 we will run our expert Buy To Let property investment report and email it to you - using the best UK property investment calculator. Even if your Buy to Let idea is at an early stage, with no actual property in mind yet, you can get a good report on your approximate estimated ballpark figures. You get the BEST overall Buy to Let advice on your proposed Buy to Let investment including rent advice and tax advice at Buy To Let Report.
If you are now letting property, or thinking of renting out property that you now own, then we can also give you an expert report on how good a financial property investment that is. You are investing the value of your property. Your current property value estimates, and current mortgage loan amounts will allow this expert appraisal, and you will also get the BEST overall Rent Your House advice including rent level advice and taxation advice at Let Your House Report.
From a sister site we also do good Microsoft Office Excel mortgage calculators at £9.99 - click Mortgage Calculators.
From a sister site we also do good Microsoft Office Excel mortgage calculators at £9.99 - click Mortgage Calculators.
If you are wise then do NOT buy a property to rent out, until you get an expert estimate of your likely profit, or likely loss ! Even major UK lenders have said that they think ALL investors thinking of buying property to rent, should get an expert financial appraisal like this before seeking a Buy to Let investment mortgage - as does the Council of Mortgage Lenders guide "Buying to Let".
(Many lenders will NOT calculate your Buy to Let mortgage on your income, property price or value, but on your rent as does our Buy To Let calculator (unlike many others). Some lenders will use your income or part rent and part income, but lenders can give you a Buy to Let mortgage on a project likely to make a loss and which you cannot afford, and letting agencies can land you with a rent level that is too high or too low, so you do NEED our low cost expert investment advice FIRST ! )
Remember, many selling UK Buy To Let mortgages will give you dangerously poor advice !
(Many lenders will NOT calculate your Buy to Let mortgage on your income, property price or value, but on your rent as does our Buy To Let calculator (unlike many others). Some lenders will use your income or part rent and part income, but lenders can give you a Buy to Let mortgage on a project likely to make a loss and which you cannot afford, and letting agencies can land you with a rent level that is too high or too low, so you do NEED our low cost expert investment advice FIRST ! )
Remember, many selling UK Buy To Let mortgages will give you dangerously poor advice !
If your finances include some debt that you are thinking of refinancing or consolidating more cheaply, you could try visiting ; Secured Debt Consolidation or Unsecured Debt Consolidation.
Now with two for the price of one, for £9.99 get up to two Buy to Let, or Rent Your House, proposals assessed. Our reports will combine our use of a buy to let mortgage calculator and a net present value property investment calculator plus our years of experience in housing finance.
Simply send us your simple details :- 
or 
or
otherwise contact us, (e-mail vincent@buy-to-let.me.uk):- 
.. and I will get back to you asap.
.. and I will get back to you asap.
See a sample expert appraisal report.
- PS. you can have our Buy-To-Let expert report generator in Excel for your own private or business use for only £39.99 !
OR If you are considering a Buy To Let and have Excel on your computer at home or at work, then we can supply a very helpful Excel Buy To Let calculator to cost your ideas that also includes a separate mortgage calculator - click HERE.
Some other websites you may like to look at :-
. Council of Mortgage Lenders . Half a Percent
- PS. you can have our Buy-To-Let expert report generator in Excel for your own private or business use for only £39.99 !
OR If you are considering a Buy To Let and have Excel on your computer at home or at work, then we can supply a very helpful Excel Buy To Let calculator to cost your ideas that also includes a separate mortgage calculator - click HERE.
Some other websites you may like to look at :-
. Council of Mortgage Lenders . Half a Percent
You are welcome to link to this site's homepage, eg http://www.buy-to-let.me.uk/
You can do a good search of this website, or of the web, below ;
Contact :- e-mail vincent@buy-to-let.me.uk :-
or write :- Vincent Wilmot, 166 Freeman Street, Grimsby, DN327AT Lincs, UK
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