INVESTMENT PROPERTY WITH RENTAL YIELD OF 7.5%

• 2 Bed Freehold House, Semilong
• Freehold
• Reposession - needs someone that can proceed quickly.
• Will rent for £495PCM on a bad day - this will be a private tenant. £525PCM to a Local Authority Tenant.
• Purchase price of £80,000 - it may be possible to achieve a small discount on this.
• Is not in perfect condition, but is rentable, and will be for a number of years. Longer term it will need some investment, as would any other property of this age.
• A full structural survey is recommended on this property. Whilst there are no visible signs of movement, we would always recommend on a property of this age. 

Suggested purchase price	£80,000
Estimated refurbishment spend	£3,000
Total spend	£83,000

Estimated monthly mortgage payment (2yr fixed)*	£266.00
Estimated monthly mortgage payment (5yr fixed)*	£320.00
Monthly rental figure**	£495.00
Annual yield	7.5%

*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.
9 properties acquired for landlords in 2011.

Landlady Loses Home As Lettings Agent Messes Up!

This story caught my eye this week. Incredible that this sort of thing can happen - why don't they introduce compulsory regulation for estate agents?
LANDLADY LOSES HER PROPERTY WHEN LETTINGS AGENT MESSES UP REFERENCING (click to see story).
To stop this happening to you, you should

1. use an ARLA or NALS agent who subscribe to a code of practice meaning that referencing actually does get done!
2. take rental insurance on your tenancy so if your tenant doesn't pay the rent, your insurer will. 
3. check your agent has professional indemnity insurance, so that if they do get something wrong (and in a high volume business it can happen!), they are covered for any liability to yourself.

Richard.

POTENTIAL INVESTMENT WITH 9%+ YIELD

• 1 bed ground floor flat in Thorplands, Northampton. 
• Leasehold with over 100 years left on lease.
• Reposession - needs someone that can proceed quickly. Cash would be ideal, or it may get nicked off you at this price.
• Will rent for £375PCM on a bad day - this will be a local authority tenant.
• Negotiated purchase price of £41,000 includes a finders fee of £1,000+VAT for Belvoir Northampton.

Suggested purchase price	£41,000
Estimated refurbishment spend	£6,000
Total spend	£47,000

Estimated monthly mortgage payment (2yr fixed)*	£135.00
Estimated monthly mortgage payment (5yr fixed)*	£160.00
Monthly rental figure**	£375.00
Annual yield	9.5%

*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.
8 properties acquired for landlords in 2011.

Thinking of Letting? Careful about your mortgage company!

Increasingly, people are letting out their own property because they can't sell it for a price they are happy with. When they do this, they have to decide if they are going to tell their mortgage company what they are up to! 

Strictly speaking they should - there's likely to be a clause in their mortgage agreement that says they should. In reality I suspect a fair number of landlords don't, and I've never known anyone get 'caught' unless the mortgage isn't paid - and in that case the owner is in trouble anyway. However if you do tell your mortgage company, you need to understand that there could be financial consequences:

• Some mortgage companies will say yes, get on with it - great if that's you!
• Some mortgage companies will simply say no, you can't do it. A friend of mine has had his property sat empty for 18 months now because he moved in with his partner, can't afford to sell it, and his mortgage company refused permission to let.
• Some mortgage companies will allow it, but will make an administration charge - on a property I let out, my mortgage company charges me £300 for the first year, and £200 per year thereafter for 'permission to let'.
• Some mortgage companies will insist you move onto a different product, which may add to the interest rate you pay and cost you more on a monthly basis.

This subject is covered in an independent article - see http://bit.ly/hJFTcE.