Musings of a London Property Finder

Allsops have announced an additonal auction to their published schedule, in view of the high number of lots they have been asked to sell this month.  The new sale will be held on the 12th and 13th of November and we have added a link to the bottom of the blog.  Most entries are repossessions and so there are a number of bargains available for buyers who don’t want to do the renovation work normally associated with properties offered at auction.

Property bargains include lot 702, a 2 bedroom flat currently on sale through Hamptons with a list price of £325,000 which appears to be neutrally decorated with wooden floors and It would suit someone looking for a buy-to-let or a noise-tolerant owner occupier as it is situated on busy Finborough Road, which is one of the main routes out of West London to the M4.

Other London property bargains are likely to include Appartment 42, 2 Point Wharf Lane in Brentford, although the guide wasn’t published as we went to press.  Convenient for anyone working in West London, this 1 bedroom new-build 2nd floor appartment is 10-15 minutes walk from Brentford or Kew overland stations and was sold in 2004 for £249,999 according to Our Property.co.uk.  There is 117 years remaining on the lease and the ground rent is £175 per annum.  Prospective buyers should definitely check out the service charge prior to purchase, as these can add a few thousand pounds to your annual living costs.

For buyers without deep pockets, one of the lowest price lots is a 1 bedroom flat with a guide between £10,000 and £20,000 in Port Glasgow, 20 minutes max from Glasgow Airport.  Clearly, we haven’t viewed it, but a flat was sold there in April for £45,000 and a rough guide for 1 beds in the area is £30,000 to £55,000, so as a first step on the investment ladder, it might turn out to be a good investment.  We think this particular flat may have sold for £19,500 in 2004, hence the guide.  Interested parties should download the deeds from the land registry which would resolve the matter once and for all.  It was offered for rental at £325 pcm but even allowing for 6 weeks void each year and having to lower rental expectations, within 10 years an investor would have paid off the flat and it would become a nice little earner.  The London Property Finder casts a wide net and has lanf standing connections  with the Scottish Property Market

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Tags: bargain flats, Glasgow respossessions, greenock investment property, london auction property, London investment property, london property bargains, London Property Finder, London repossessions, low price investment property, low priced investment property, low-priced London property, property auctions, Repossessions, Scotland property bargains, Scottish auction property, Scottish investment property, Scottish repossessions, West London bargain properties

Musings of a London Property Finder

The Treasury have announced new rules to help protect homeowners in mortgage arrears avoid repossession today.  Lenders will now be expected to demonstrate that they have tried to discuss and agree alternatives with the mortgagee and if a case reaches court, to explain precisely what they have done to comply with the new protocols to ensure that repossession is a last resort.

The government will also publish a consultation paper in response to the OFT’s recommendations to regulate the Sale and Lease Back sector of the property market, which should remove the Rachman-esque reputation of the sector. 

In our opinion this is long-overdue and the government’s reaction to the increased media headlines about repossession should console homeowners, however as we reported last week, the number of repossessions forecast for this year remains low according to the Council of Mortgage Lenders (CML).  The CML have also published new guidance today for lenders dealing with mortgage arrears and repossessions, which unlike the government’s planned protocols is a reference point for lenders on what they ’should’ do rather than a rule book.

 CML director general Michael Coogan commented:

€œDespite the fact that the rate of repossession is modest, we recognise that there is significant public concern about this subject.  The new guidance should help to reassure consumers that lenders are genuinely committed to seeing repossession as a last resort, and that the checks and balances that protect consumers are in place.”

Chief Secretary to the Treasury, Yvette Cooper said:

€œWe need to make sure we help those who might be hardest hit in the tougher times ahead, ensuring repossession is the last resort not the first.  We also want to make sure that vulnerable homeowners are protected from exploitation and dodgy deals.€  There will be no dodgy deals if you instruct this London Property Finder

http://www.hm-treasury.gov.uk/press_108_08.htm

http://www.cml.org.uk/cml/media/press/1965

Technorati Tags: CML, council of mortgage lenders, Court Protocols, HM Treasury, London Property Finder, Mortgage arrears, Repossessions, Sale and Lease-back, Sale and rent-back

Tags: CML, council of mortgage lenders, Court Protocols, HM Treasury, London Property Finder, Mortgage arrears, Repossessions, Sale and Lease-back, Sale and rent-back

London Property Finder

Several newspapers have published figures from a report by Standard & Poor, apparently stating that 60,000 people a month are falling into negative equity and 2 million people face repossession.  But on Friday, the Council of Mortgage Lenders (CML) who control 98% of UK mortgage lending, issued a clarification note that their projections for repossessions remains 45,000 this year (0.38% of all mortgages) and that 98% of homeowners continue to pay their mortgages in full and on time.  Even we thought repossessions would rise to nearer 60,000 this year, so although extremely distressing for anyone directly affected, the number of repossessions this year is unlikely to have much impact on the property market as a whole, being as it is, such a small proportion of the market.

As for negative equity, we’ve said it before and we’ll say it again - it’s all in the buying.  But for those who find themselves owing more than their home is worth, remember that if you don’t need to sell it’s not a disaster.  Make yourself feel better by working out how much it would have cost you to rent your home and deduct that from any perceived loss.  Alteratively think about how you could recoup some of the loss, perhaps by adding value through extending your home.  You don’t actually have to carry out the work: merely getting planning permission in place might help your house price. 

Lastly, you bought your home because you liked it.  Sit back and enjoy it and wait for the market to improve (and next time instruct this London property Finder to help you buy)!

Technorati Tags: council of mortgage lenders, House Prices, London House Prices, London Property Finder, mortgage arears, Negative Equity, Repossessions

Tags: council of mortgage lenders, House Prices, London House Prices, London Property Finder, mortgage arears, Negative Equity, Repossessions