bobed Posted June 16, 2009 Share Posted June 16, 2009 http://www.lovemoney.com/news/the-property...?source=1000020 Buy-to-let landlords aren't greedy, money-grabbing villians - they're victims of an unfair system and they deserve our help, argues John Fitzsimons.Is there a bigger pantomime villain than a buy-to-let landlord? The mere sight of such an investor is liable to prompt boos and hisses from a British public currently enjoying a large dollop of schadenfreude at landlords' current troubles. There may be trouble ahead And they certainly do have a lot of troubles. Just last week, research from the BBC suggested the repossession situation with buy-to-let properties is far worse than it seems, as the official figures do not include certain cases. Rather than go through the official channels, a lender can instead appoint a receiver of rent, who replaces the landlord in taking the rent and passing it on to the lender. When you take those into account, there have actually been 4,100 buy-to-let repossessions in the first quarter, more than double the official figure of 1,700. And now the Council of Mortgage Lenders has published guidance for buy-to-let lenders when their borrowers fall behind on payments, emphasising lenders must act fairly and take individual circumstances into account before repossessing. It described Government plans to legislate the repossession of rental properties as "sketchy", and with that legislation unlikely to be in place before 2010, the Council is clearly a little worried that certain lenders will take advantage. We need a strong rental sector! Our blasé attitude towards the plight of landlords is not a good thing. Too often we overlook the fact that a strong rental sector is essential. Home-ownership is not a right, nor is it right for everyone. And while the social rental sector does a good job, I think it is vitally important to have an equally strong private rented sector, to help take the pressure off the state. The private rented sector has also been a great success in improving the standards of rental properties. Landlords are getting a rough deal Whenever the topic of an owner-occupier being repossessed is raised, there is always a lot of handwringing, and calls for that person's individual circumstances to be recognised. Perhaps they have lost their job, or their partner has upped and left, and that's why they have fallen behind on their mortgage payments. However, landlords are never afforded the same luxury. If they fall into arrears, it is automatically because they over-extended themselves financially, they were greedy or they took too big a mortgage. Yet research from the National Landlords Association in March found that 37% of landlords currently have tenants behind on their payments. Indeed, over the past six months, around 44% of landlords have at some point had tenants in arrears. That's not the fault of the landlord, and yet because of those missed rental payments, they may fall behind on their own mortgage payments, putting them at the mercy of the lenders. What's more, the lenders know that they even have the law on their side. I fought the law and the law won Back in November, a ruling at the High Court affirmed the right of lenders to take advantage of the Law of Property Act (1925), which allows them to take possession of a property without explicit permission of a judge after just two missed payments. A Private Members Bill has been introduced in Parliament to try to amend this law, but we are still at the reading stage, so it will be a while before it can come into law. And while lenders are unlikely to risk the inevitable public backlash that would follow utilising the law on an owner occupier, there is no such hesitancy with a buy-to-let mortgage. Indeed the case that prompted the ruling was the repossession of a buy-to-let property! A Landlord Mortgage Support Scheme? So what should be done? Personally, I like the idea of a buy-to-let version of the Homeowner Mortgage Support Scheme. Under the current scheme, mortgage owners are able to defer interest payments on their mortgages for up to two years. Why not extend this to buy-to-let landlords? It would mean that they could afford similar breathing space to their tenants, if they are also struggling with their payments. And it's not like such an extension will somehow damage the scheme - so far, the scheme has only helped two owner occupiers! Landlords on the whole do a great and invaluable job, and our property market needs them - there are currently more than one million buy-to-let mortgages in place. That's a lot of landlords at the mercy of circumstances beyond their control, just like normal homeowners. Yes, they might make a bit of money out of it - and good luck to them if they do - but right now I think they also need our help. Quote Link to comment Share on other sites More sharing options...
Executive Sadman Posted June 16, 2009 Share Posted June 16, 2009 They get our help dont they? Billions in housing benefit for starters. Quote Link to comment Share on other sites More sharing options...
yellerkat Posted June 16, 2009 Share Posted June 16, 2009 Quote Link to comment Share on other sites More sharing options...
PotNoodle Posted June 16, 2009 Share Posted June 16, 2009 Poor landlords. I cried so much I couldn't finish the article. (Or perhaps it's hayfever and I just don't give a t*ss.) Quote Link to comment Share on other sites More sharing options...
PotNoodle Posted June 16, 2009 Share Posted June 16, 2009 Hey !! My computer doesn't have one of those. (It has now.) Quote Link to comment Share on other sites More sharing options...
Executive Sadman Posted June 16, 2009 Share Posted June 16, 2009 However, landlords are never afforded the same luxury. If they fall into arrears, it is automatically because they over-extended themselves financially, they were greedy or they took too big a mortgage. Yet research from the National Landlords Association in March found that 37% of landlords currently have tenants behind on their payments. Indeed, over the past six months, around 44% of landlords have at some point had tenants in arrears. That's not the fault of the landlord, and yet because of those missed rental payments, they may fall behind on their own mortgage payments, putting them at the mercy of the lenders. Isnt it totally the fault of the landlords? Thats why most mortgage lenders now insist on rental incomes covering and exceeding payments by a considerable margin? If its not the landlords duty to cover for voids and late payments, then whose is it? Theyre not just greedy, theyre stupid as well. Late and non-existent payments is just a part of business. Ask anyone who has dealt with Grant Bovey and theyll tell you that. Quote Link to comment Share on other sites More sharing options...
Flat Bear Posted June 16, 2009 Share Posted June 16, 2009 LOL Quote Link to comment Share on other sites More sharing options...
pete.hpc Posted June 16, 2009 Share Posted June 16, 2009 Buy-to-let landlords aren't greedy, money-grabbing villians Maybe not, but they are in business, and businesses sometimes fail Trouble is, most of them couldn't get out of the mindset that it was a cutesy extension of their family home (hence all the no-pets, no-kids, don't mess up my carpets !!!!), and will now be incredulous when treated ruthlessly by lenders Never mind, eh Quote Link to comment Share on other sites More sharing options...
GrillsBears Posted June 16, 2009 Share Posted June 16, 2009 However, landlords are never afforded the same luxury. If they fall into arrears, it is automatically because they over-extended themselves financially, they were greedy or they took too big a mortgage.Yet research from the National Landlords Association in March found that 37% of landlords currently have tenants behind on their payments. Indeed, over the past six months, around 44% of landlords have at some point had tenants in arrears. That's not the fault of the landlord, and yet because of those missed rental payments, they may fall behind on their own mortgage payments, putting them at the mercy of the lenders. Isnt it totally the fault of the landlords? Thats why most mortgage lenders now insist on rental incomes covering and exceeding payments by a considerable margin? If its not the landlords duty to cover for voids and late payments, then whose is it? Theyre not just greedy, theyre stupid as well. Late and non-existent payments is just a part of business. Ask anyone who has dealt with Grant Bovey and theyll tell you that. Yeah that made me laugh too. It's not the fault of British Airways that not everyone wants to fly first class at several grand a pop. Lets bail em out. Any BTL idiot that based their profit model on 0 voids or 0 arrears deserves everything they get. Though in reality that will be loads because their sums went like this Capital appreciation - Mortage + rent = BMW X5 + free holidays forever what could possibly go wrong. Quote Link to comment Share on other sites More sharing options...
Si1 Posted June 16, 2009 Share Posted June 16, 2009 BUSINESS/INVESTMENT RISK = TOUGH SH*T Quote Link to comment Share on other sites More sharing options...
huw Posted June 16, 2009 Share Posted June 16, 2009 That's not the fault of the landlord, and yet because of those missed rental payments, they may fall behind on their own mortgage payments, putting them at the mercy of the lenders.Isnt it totally the fault of the landlords? Thats why most mortgage lenders now insist on rental incomes covering and exceeding payments by a considerable margin? Quite so. Landlords are no different from any other business ... an unpaid/late invoice is their problem and shows that their business model isn't as viable as they hoped. Quote Link to comment Share on other sites More sharing options...
Lone_Twin Posted June 16, 2009 Share Posted June 16, 2009 I just vomited into my mouth. Quote Link to comment Share on other sites More sharing options...
SarahBell Posted June 16, 2009 Share Posted June 16, 2009 (*Y9upb2P97go*"g(("&$&g$B&dgbd(p&vb is what I think. Expletives replaced with random letters. Cheeky monkey vested interest moron. More council housing. More affordable housing. Quote Link to comment Share on other sites More sharing options...
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