Patient London FTB

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Everything posted by Patient London FTB

  1. Buy To Let Finance Watch

    Skipton going balls deep into BTL lending, from its results out today. £824.1m, or 18.4%, of the Group's gross lending during the year was on buy-to-let mortgages (2016: £588.0m or 14.8%); The Group net interest margin reduced to 1.10% (2016: 1.18% (restated)), whilst net interest income increased to £220.6m (2016: £215.6m (restated)), an increase of £5.0m (or 2.3%) The Society drew down £1.1bn of funding under the Government's Term Funding Scheme (TFS) during the year (2016: £0.3bn) and at the end of the year had drawn a total of £1.4bn under the scheme (2016: £0.3bn). In addition the Society repaid the outstanding funding from the Government's Funding for Lending Scheme (FLS). The amount outstanding at the end of 2016 was £1.0bn;
  2. Seems the only forced/motivated sellers are London councils
  3. Any idea why lot 5 didn't sell? No undesirables outside 7rf/67703
  4. Highest bid £243k. Unsold. Looked like there were three bidders, staying cautious.
  5. Lot 56 coming up now should be interesting. £250k for rights to roof space in Bermondsey to build a one-bed flat.
  6. Is Prime London Crashing? - Merged Threads

    I like to spend winter dead in Chelsea but I always summer in Luton
  7. Seems to have started already in the off-plan investment market if you believe this EA's position. Story was doing the rounds on here a few weeks ago.
  8. AA fulfilling your prediction today @durhamborn Dividend slashed, shares down 30%
  9. Is Prime London Crashing? - Merged Threads

    Back in the summer there was a bit of excitement over a couple of houses in Elephant & Castle that seemed to be in a reductions arms race to sell. One on Gaywood Street went under offer at £1,100,000, but as @Frizzers said, let's see if it goes through ... ... and it hasn't yet. No trace of it on - perhaps stuck in chain limbo? However, the other one, on Gladstone Street, did go through it turns out. Originally marketed at £1,250,000 and sold for £998,000 in December. Probably zero profit for the seller, who bought it as a BTL in 2014 for £910,000, if you factor in stamp duty and their various other costs.
  10. Is Prime London Crashing? - Merged Threads

    Big difference between us is the plunge in number for rent here, something like -30%. I read that as a choice by landlords at the margins to (a) avoid tenants moving out where possible, and (b) when a tenant is moving out, to sell up rather than to re-let. Edit to add: If you include large-scale build-to-rent developments I reckon the number of properties to rent is actually up by between 15% and 30%, as opposed to down 30%.
  11. Is Prime London Crashing? - Merged Threads

    Yep, that sounds plausible. And sometimes they're trying to sell with tenants in situ which will also take longer.
  12. Or .... record numbers of HPCers trawl Rightmove to check on the latest reductions
  13. Is Prime London Crashing? - Merged Threads

    *blows dust off thread* Today's Rightmove report looking bearish for London if you look at its 'how long does it take to sell' measure. It's now taking an average of 83 days, the highest number in the four years' worth of data that I've tracked. The lowest number was 40 days, in June 2014, five months after this thread was started. In the days of the 'beat the stamp duty deadline' rush in early 2016 it was 43 days. Rightmove's London report includes a bit of boosterism for prices anyway, noting that new listings for zones 1-3 are down 4% year on year. However, it doesn't give any data on stock levels, which is frustrating when its national report does. My own tracking of Rightmove's stock levels around my area puts stock for sale up by 20% year on year. Anyone else seeing a similar increase?
  14. Buy To Let Finance Watch

    Knock-on effect is South-East England LLs buying in much cheaper areas than before
  15. The Ripple

    That's two consecutive months of annual falls in zone 1 now
  16. First-time buyers 'at 11-year high'

    Not in London, where numbers have been going downhill since 2014
  17. A Goodbye To All That Buy To Let

    Wonder how strong a link there is between the number of BTL sellers and the number of BTL remortgagors? Possible that more remortgaging = more equity extraction to be spent on funding further BTL purchases, while less remortgaging = more difficulty of refinancing current portfolio and increased likelihood of selling. Here's remortgage volume data from the CML:
  18. Also out today were ONS figures showing London rent growth has slipped again, to just 0.2% year on year.
  19. Buy To Let Finance Watch

    The latest UK Finance (formerly CML) lending volume figures are out and show a big dent in BTL lending, presumably due to the PRA changes. The numbers of both new BTL mortgages and BTL remortgages are at their lowest level since April 2015 (the month after the introduction of 3% additional stamp duty for second homes). I don't think UK Finance mentions the above, but they do say this: There were 5,300 new Buy to Let (BTL) house purchase mortgages completed in December, some 17.2 per cent fewer than in the same month a year earlier. By value this was £0.8bn of lending in the month, 11.1 per cent down year-on-year. There were 9,900 new BTL remortgages completed in December, some 11.6 per cent fewer than in the same month a year earlier. By value this was £1.6bn of lending in the month, 11.1 per cent down year-on-year. Commenting on the data, Paul Smee, Head of Mortgages at UK Finance, said: “2017 saw the number of first-time buyers reach its highest level in a decade, which is welcome news for those getting started on the housing ladder. “But although the market remains competitive there is no room for complacency, with weaker December figures consistent with our market forecast of subdued growth this year. “We are also seeing a less buoyant buy-to-let market, which continues to be impacted by recent tax and regulatory changes. This will continue to flatten gross lending volumes this year.” Link
  20. Is Prime London Crashing? - Merged Threads

    We don't know what the seller's real financial position is. We do know that if he completes the purchase he has to stump up stamp duty of £32,000 if it's replacing his main residence or £57,200 if it's an additional property, in addition to finding the £672,000 he owes to the developer. Seems like he prefers to wave goodbye to £105,000 of the £168,000 he's already forked out rather than go in any deeper. If he's lucky there'll be a bidding war and his loss won't be as big as that. If he doesn't find a buyer but doesn't have the money then the developer has to chase him through the courts for it, or let it go and try to resell the flat to someone else.
  21. Countdown to leveraged BTL going bust thread

    The IMLA report is here. And here's the chart behind their 80% assertion (it's on page 9 of the report): The question is what do they mean by 'new'? They don't spell it out, so I doubt they mean newly-built properties, just any property that has now been taken into the private rented sector. What surprised me given the sensationalist 80% claim is that the report's ask is pretty mild. All they they want is no more political and regulatory action against the buy-to-let sector. Sort of like someone who's been stabbed 50 times saying "Ok enough!". The only impact it's going to have is giving landlords another nudge to sell up, I reckon.
  22. Is Prime London Crashing? - Merged Threads

    Received this email earlier today, headlined 'Selling 32% under developer's pricing'. The development is near Wandsworth Town train station in zone 2. Prime London pain spreading into non-prime areas. We have been advised by the vendor of this apartment that he is willing to liquidate at a large loss in order to dispose of the asset before completion. There is a small window of opportunity to secure this property significantly below the original contract price as the completion is expected in March 2018. Development Website - Property Details - 2 Bedroom - 969 sq ft - 2 bathroom - 3rd Floor - Duel Aspect - 128 sq ft Balcony - Total sq ft = 1100 sq ft Asking Price = £735,000 Key Buying Points - £105,000 UNDER Original Purchase Price - Completion expected in March 2018 - Only Asking £758 per sq ft! - Current Developer asking price = £1100 per ft - Lease 999yrs - ONLY £60k due on exchange of contracts Payment Terms 1. A reservation fee of £3,000 payable. 2. A deposit of £168,000 (being 20% of the original purchase price of £840,000) less the loss of £105,000 (less the reservation fee) payable on completion of the assignment, 21 days from receipt of the contract by the buyers solicitor. Total therefore payable on completion of the assignment, to the vendor via their solicitor, is £60,000. 3. A final payment of £672,000 (being 80% of the original purchase price £840,000) payable on completion expected March 2018 This opportunity is for serious buyers only who are in a position to move quickly!
  23. A Goodbye To All That Buy To Let

    Worth a look at the comments on this article too:
  24. Mumsnet tax evading landlord thread

    Having a lovely teatime reading this thread, and h/t @Beary McBearface for unearthing these early cuts in the emerging karma-funk-BTL-meltdown sub-genre.
  25. Is Prime London Crashing? - Merged Threads

    Anyone recognise this from one of the Grand Designs or Sarah Beeny type shows? South London water tower on the market for £3.6m.