Thomas & Company (Northampton & Milton Keynes)

THOMAS AND COMPANY RENTALS

(Northampton & Milton Keynes)

We understand that the above company has ceased trading without informing its customers. We also know of a number of Landlords who have not received rent from the this company, despite their Tenants having paid the rent. 

It is possible that there are Landlords who have properties with Thomas & Company who do not realise this. It is also possible that some tenants are still paying rent to Thomas & Company, and that this rent will never reach the landlord. It is also possible that deposits held by Thomas & Company may not be registered, leaving Landlords open to legal action from tenants.

If you know a Landlord who has a property with Thomas & Company, or you know of a Tenant who lives in a Thomas and Company property, you need to make them aware of this situation. Belvoir is happy to offer advice to Landlords and Tenants who are unsure what to do next. For this they can contact:

richard.baker@belvoirlettings.com (for properties in Northampton)

steve.tunney@belvoirlettings.com (for properties in Milton Keynes)

INVESTMENT PROPERTIES (IF YOU CAN BUY CASH!)

OPTION 1

• 3 bed property in Thorplands
• Freehold
• 100% refurbished - new windows, kitchen, bathroom, flooring, decoration
• Property guaranteed by the contractor for 12 months.
• Rent of £575PCM guaranteed by Belvoir for the first 12 months.
• Available to purchase cash for £89,995 - vendor wants cash for a quick sale, but you could re-mortgage out after 6 months of ownership.

Suggested purchase price	£89,995
Estimated refurbishment spend	£NIL
Total spend	£89,995

Estimated monthly mortgage payment (2yr fixed)*	n/a
Estimated monthly mortgage payment (5yr fixed)*	n/a
Monthly rental figure**	£575.00
Annual yield	7.6%

*assumed borrowing 80% of purchase price on a buy-to-let basis.

**rental figures are conservative.

EMAIL richard.baker@belvoirlettings.com if you are interested.

11 properties acquired for landlords in 2011.

OPTION 2 - be REALLY quick if interested.

• 3 bed Victorian property in the Town Centre
• Freehold
• Purchase for £70k cash, spend £25k on a refurb = property then easily worth £105k, maybe more.
• Vendor wants a purchase within 7 days

Suggested purchase price	£70,000
Estimated refurbishment spend	£25,000
Total spend	£95,000

Estimated monthly mortgage payment (2yr fixed)*	n/a
Estimated monthly mortgage payment (5yr fixed)*	n/a
Monthly rental figure**	£575.00
Annual yield	7.2%

or sell for a profit!

EMAIL ME IF INTERESTED richard.baker@belvoirlettings.com 

Is Your Lettings Agent Not Paying You?

We've been contacted by a number of landlords in recent weeks who have stopped receiving money from their lettings agent, without reason. The agent in question is a relatively large one, but is not regulated by associations with as ARLA or NALS. The agent is also not returning phone calls, and their shop is shut. Clearly the agent  in question has stopped trading, or is very close to doing so, but where does that leave the landlord, and what should he do?

From a tenancy perspective, I'd recommend the landlord do the following:

1. Contact the tenant, and tell the tenant to stop paying the agent with immediate effect. This will stop any more money going missing.
2. Either appoint another agent and give the tenant the new agent's details, or give his own bank details and contact details - effectively managing the tenancy themselves.

What other problems could the landlord face?

1. Where is the tenancy deposit? If the agent has it, or rather doesn't have it, the landlord could have a problem, as he would be liable to his tenant for the full value of the deposit.
2. Where is the gas safety certificate for the property? This is really important. The landlord may have a copy, or there should be a copy in the property. If a copy can't be found, the landlord is better off instructing a new certificate himself - office@burges-house.co.uk would assist with this if required.
3. Where is the inventory? If the landlord wants to make a claim on the tenancy deposit, he'll need a copy of this.
4. Where is the tenancy agreement? The landlord or tenant may have a copy. Legally the tenancy can exist without it, as a tenancy agreement can be verbal. However to prevent disputes between landlord and tenant it's worth getting a new copy signed if one can't be found.
5. Does the agent have a set of keys? A landlord should try to recover these.

What can a landlord do to recover the money he's lost?

• Assuming the tenant has paid the agent, but the agent hasn't paid it on, the landlord needs to take some legal advice. I suspect the prognosis isn't good.

What can a landlord do to stop this happening again?

• Quite simply, use an agent who is a member of ARLA (www.arla.co.uk). All members must have their client accounts checked on a regular basis and also have to carry Client Money Protection Insurance - so if the agent is experiencing financial problems, any loss suffered by the landlord is insured.

We are running surgeries for landlords affected by this on a couple of occasions this week, as is the Belvoir office in Milton Keynes - please contact me if you're affected and would like to book an appointment.

Richard.

MULTIPLE INVESTMENTS IN RUGBY

Having seen little in the Rugby market that offers value in the last 12 months, I've now come across 2 (maybe 3) good value investments in the last 3 days! All are repossessions - perhaps this is the reason as there has been a scarcity of these in Rugby of late.

Property ONE : 3 Bed House in Frobisher Road, £89,995

• Freehold.
• Repossession - needs someone that can proceed quickly.
• Will rent for £550PCM on a bad day - this will be a private tenant.
• Advertised price of £89,995 - it may be possible to achieve a small discount on this. Other properties on the same road are currently advertised for in excess of £115k.
• It may be possible to 'flip' this property, or re-mortgage out of it.
• Is not in perfect condition, and requires a spend of just less than £10k.

Suggested purchase price	£87,000
Estimated refurbishment spend	£10,000
Total spend	£97,000

Estimated monthly mortgage payment (2yr fixed)*	£290.00
Estimated monthly mortgage payment (5yr fixed)*	£350.00
Monthly rental figure**	£550.00
Annual yield	6.8%

*assumed borrowing 80% of purchase price on a buy-to-let basis.

**rental figures are conservative.

Property TWO : 2 Bed Apartment in Grenville Close - £48,000 CASH PURCHASE ONLY

• Leasehold - current lease is under 60 years. Hence this property is not mortgageable. You would also need a new lease. I'm not an expert here, but am advised you should budget £5k.
• Repossession - going to auction with a guide price of £48k. You may be able to secure it for less at auction, or maybe prior to auction.
• Will rent for £425PCM on a bad day - this will be a private tenant.
• Requires upgrading - budget £8k + VAT.

Suggested purchase price	£48,000
Estimated refurbishment spend	£8,000
Total spend	£56,000

Estimated monthly mortgage payment (2yr fixed)*	n/a
Estimated monthly mortgage payment (5yr fixed)*	n/a
Monthly rental figure**	£425.00
Annual yield	9.1%

*assumed borrowing 80% of purchase price on a buy-to-let basis.

**rental figures are conservative.

Property THREE : 3 Bed House in Campbell Street, £75,000

• Freehold.
• Other properties locally seem to be selling for in excess of £100k. As such you may be able to re-mortgage for a higher figure.
• Repossession - going to auction with a guide price of £75k. You may be able to secure it for less at auction, or maybe prior to auction.
• Will rent for £550PCM on a bad day - this will be a private tenant.
• Requires upgrading - budget £11k + VAT.

Suggested purchase price	£75,000
Estimated refurbishment spend	£11,000
Total spend	£85,000

Estimated monthly mortgage payment (2yr fixed)*	£250.00
Estimated monthly mortgage payment (5yr fixed)*	£300.00
Monthly rental figure**	£550.00
Annual yield	7.5%

*assumed borrowing 80% of purchase price on a buy-to-let basis.

**rental figures are conservative.

please email richard.baker@belvoirlettings.com with any queries.