Musings of a London Property Finder

The news that some homeowners will be able to defer interest payments on their mortgages if they lose their jobs or suffer a temporary loss of income should be music to the ears of the masses, as it won’t just help those affected by redundancy but the repossessions this measure prevents will help to decelerate falls in house prices. 

Payments can now be deferred on home loans up to £400,000 if a member of the household loses their job or even if they suffer a loss of income for example if they lose a bonus, commission or overtime payments. 

The scheme only covers interest payments but the first step for troubled homeowners is already to convert to an interest only mortgage and most lenders will allow borrowers to do this.  The proportion of the interest to be paid and the exact terms will be negotiated between the borrower and the lender.

48,000 homes are predicted to have entered the market this year as a result of repossession and the figure is set to rise to 75,000 next year according to The Council of Mortgage Lenders.  Clearly those with loans and other debts secured on their homes could still be repossessed and those struggling to pay morgages on second homes or buy-to-lets will not be bailed out by this plan.  But the measures should stem the flow of properties to market. 

Those with property to sell will often contact Property Finders and Relocation Agents like ourselves to offer their homes to our Clients directly so we have been aware of the middle income families who suddenly find themselves struggling.  On the face of it, this is a very good move on the government’s part.  For those sitting on mortgages of £400,000 and bonus stock worth very little, negotiating with your lender is the best move.  If you are a buyer give this London Property Finder a call.

Technorati Tags: Income Support For Mortgage Interest, London Property Finder, Mortgage Guarantee Plan, Mortgage Interest

Tags: Income Support For Mortgage Interest, London Property Finder, Mortgage Guarantee Plan, Mortgage Interest

Musings of a Property Finder

An article appeared in Sunday’s Observer criticising the Land Registry for not including property sold at auction or repossessions in their figures for the House Price Index on the grounds that so many properties are being sold this way that these houses are reflective of the market.  The Land Registry have naturally defended their position saying:

 ”Repossessions are excluded as they are “commercial” sales and do not represent full market value.”

“Other surveys are based on sample sizes or mortgages or asking prices and so will reflect these differences in their results. The [Land Registry] House Price Index uses a sample size that is larger than all other statistical measures available.”

The issue is that the indices produced by commercial sources such as Halifax and Nationwide usually show greater house price drops than the Land Registry figures.   but the Bank of England and property anoraks like ourselves use it to value property.  However we also look at the results of all relevant auctions and check the prices of homes on a street by street basis so that we have a full picture.

In our view, the Land Registry data works very well as it is.  It is different to the data supplied by Nationwide and the Halifax prinicpally because it is based on sold prices not offer prices or mortgage valuations.  Given the number of sales that which fall through in any market post-offer, sold prices would seem  to be by far the most robust. 

On his webiste the pundit in question praises his excellent PR firm – we rather suspect the article in the Observer was a good example of their work.  THis London Property Finder keeps abreast of house prices in all searches; call us now.

Technorati Tags: House Prices, land registry house price index, London Property Finder

Tags: House Prices, land registry house price index, London Property Finder

Musings of a London Property Finder

Most London Property Finders steer clear of auction houses but in our quest for value, we have always kept a close eye on them, as they provide rich pickings, particularly for intrepid first-time buyers, investors and those with several houses, who are prepared to call in the builders or hone those DIY skills.

Allsops have just released their December catalogue and once again, we weren’t disappointed.  

The first lot to catch our eye was a pair of artists workshops in Cloudesley Road in Barnsbury for £325,000 to £350,000.  It’s definitely not the most desirable road in Barnsbury – there are a great deal of housing association properties in need of work but it is close to the Angel and walking distance to Kings Cross, which bodes well for future valuations.  Those wanting  to create one or two family houses should be aware that planning permission may not be forthcoming.

Staying in Islington, for those who are happy to compromise on attractive buildings for space and location there is a 3 bedroom flat in sought after Canonbury, 10 minutes walk from Highbury & Islington tube and Upper Street.  These flats often have odd-shaped rooms but offer value for money.  This flat is up for £225,000 but should reach £250,000 at least, regardless of the amount of work required.  Number 19 was sold for £377,500 in July.

Zone one afficionados might like the 2 bedroom Peabody Trust flat in a period block on Vauxhall Bridge Road for £300K -£320K, although this should go for alot less in our opinion – more like £250 – £275.  Another good buy can be found in Burton Street, Bloomsbury.  There is a 2 bedroom flat in a period conversion for £200,000 – £220,000 although flats here usually start at £300,000.

The same amount would buy a 2 bedroom period cottage on the popular Shaftesbury Estate, 10 minutes walk from Clapham Junction station and the shops and amenities of Northcote Road. 

Bargain hunters who want space could head to Plumstead where a 4 bedroom 3 storey house is at auction for £120K plus.  It needs gutting and similar houses in the road have sold for upwards of £200,000, presumably in a much better state.

There is also a 3 bedroom Victorian house in Woolwich just down the road for £95,000.  This is likely to make closer to the £250K normally asked for these houses but it begs the question why anyone would think shared ownership is a good idea (apparently available to people earning up to £72K a year!!!!) when with a bit of , or maybe a lot of elbow grease or a bit extra for builders, you can have a freehold house.  And not have to worry about service charges.  Or ground rents.  Or the doubling of the above!

Lot 252 is also of interest  – it is a 2 bedroom first floor flat in Maida Vale, 10 minutes walk from the tube and with 122 years on the lease.  It needs to be gutted but it sold for £415,000 in June 2005 and is now on sale for £170,000 – £180,000.

All property sold prices are from house price website www.ourproperty.co.uk.

http://www.auction.co.uk/residential/onlinecatalogue.asp?A=0&S=C&O=A&P=3

The London Property Finder is just waiting for your call

Technorati Tags: Auction property, bargain flats, bargain London property, bargain property, First Time Buyer Bargains, First Time Buyer properties, London Auction bargains, london auction property, London Property Finder

Tags: Auction property, bargain flats, bargain London property, bargain property, First Time Buyer Bargains, First Time Buyer properties, London Auction bargains, london auction property, London Property Finder