Jump to content
House Price Crash Forum
tim123

Things Must Be Bad

Recommended Posts

how do you know they've gone bust ?

but yes, would agree, these would be great investments at these guide prices

It says 'On the instructions of the receivers'. That was his first clue....

Share this post


Link to post
Share on other sites

Am I being really silly here or is this a joke? £30 per annum rent??? It's late, forgive me

Share this post


Link to post
Share on other sites

the rent is only part of the potential income

LL can arrange insurance, management and maintenance and charge it on to leaseholders as service charge

with a bit on top natch

Share this post


Link to post
Share on other sites

the rent is only part of the potential income

LL can arrange insurance, management and maintenance and charge it on to leaseholders as service charge

with a bit on top natch

+ of course hefty fees for extending the lease which will have to be done at some point, i believe

the property becomes unmortgagable if the lease slips below 70 yrs i think.

Share this post


Link to post
Share on other sites

LL can arrange insurance, management and maintenance and charge it on to leaseholders as service charge

with a bit on top natch

Yeah, a bit on top.

I took over as managing agent on the development I own some houses in. The first insurance quote I got was for 50% less than the previous managing agent charged. That was £5k that he potentially received in hidden commission on top of his management fee.

The cost to the leaseholder to buy the freehold is AFAIK the marriage value of the freehold and leasehold. The value of the lease falls away towards its expiry, resulting in the value of the freehold increasing exponentially in the last few years. There is statutory protection for the leaseholder enabling them to buy an extension of the lease. This is where the freeholder gets the return on investment.

Running yields up to 20% are quite common from the "bit on top"; uplifts on maintenance charges, commissions and management fees.

Edited by sleepwello'nights

Share this post


Link to post
Share on other sites

the rent is only part of the potential income

LL can arrange insurance, management and maintenance and charge it on to leaseholders as service charge

with a bit on top natch

If you can get the owners of the flats to pay that is. Near where my mother lives is a bloke who hasn't paid his service charges or ground rent for 5 years. The solicitor / court charges are mounting up and the only way he can pay is to sell his flat, which is another problem all together.

If all the flats were used for housing benefit tenants, the freeholder may have been owed a lot of money.

Share this post


Link to post
Share on other sites

If you can get the owners of the flats to pay that is. Near where my mother lives is a bloke who hasn't paid his service charges or ground rent for 5 years. The solicitor / court charges are mounting up and the only way he can pay is to sell his flat, which is another problem all together.

If all the flats were used for housing benefit tenants, the freeholder may have been owed a lot of money.

In general you do (get a court order to) reposess the flat and sell it to pay the accumulated fees.

Not being able to sell at the moment is purely a little blip.

(and for a mortgaged flats, the threat of the reposession usually sees the bank paying the charges and adding it to the loan).

tim

Share this post


Link to post
Share on other sites

These idiotic debt junkies borrow to the hilt on any asset they have thinking that they will turn a profit by investing the borrowed money in something else.

i see you troll list has got very smaller than it used to be...what happened to them??? ;)

Share this post


Link to post
Share on other sites

In general you do (get a court order to) reposess the flat and sell it to pay the accumulated fees.

Not being able to sell at the moment is purely a little blip.

(and for a mortgaged flats, the threat of the reposession usually sees the bank paying the charges and adding it to the loan).

tim

Bang on. A mortgagee will usually pay any arrears to safeguard their rights. They add it to their loan together with hefty administration charges on top. The freeholder will also add administration charges to cover their time and costs in getting the mortgagee to settle the arrears. All in not a good position for the leaseholder who tries to avoid paying.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 153 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.