Review Category : London Property Investment

Transgressing the law or local regulations as a landlord could result in you ending up in serious trouble.

Don’t assume that this is just bureaucracy. The authorities will come down very hard on landlords who transgress the rules.

This brief article will highlight some of the main issues you need to be aware of but keep in mind that this is not qualified nor comprehensive advice. You should follow it up with some in-depth research of your own.

What is a landlord?

The first point to be aware of is that it might be easier than you think to become a landlord.

All you need to do is to start earning income through letting out all or part of your property and you’ve automatically joined the fraternity of landlords.  That means you need to quickly learn about your responsibilities and comply with various rules.

Note that this applies even if you’re letting out a single room in your own home or only letting a property for a short period each year.

Your taxation obligations

Any income you obtain must be declared as part of your overall income and associated taxation calculations.

What that means in terms of your tax liabilities will depend upon the nature of your overall financial position.

Insurance

This is a very important area and not one to overlook.

A critical first concept to grasp is that any owner-occupier insurance you might have on your property typically will become invalid the moment you start obtaining rental income from your property.  To ensure continuity of protection, you will need to purchase specific landlord’s insurance.

If you have used any form of loan to help you purchase the property, such as a buy-to-let mortgage, you’ll typically find that a condition of the loan agreement is that you maintain full buildings cover at all times.  If you fail to do so, including by trying to use invalid owner-occupier policies, you may find yourself in breach of contract.

Local authority regulations

This is one of the areas where it is difficult to be precise as where you live will have a big effect on what, if any, local authority regulations apply to you.

The regulations may be different between England, Scotland, Wales and Northern Ireland.  There may also be variations between the rules in different local authority areas within the countries themselves.

Perhaps the best advice is to contact your local council or equivalent before starting your business and check what their requirements are for landlord businesses including whether or not mandatory registration is required.

Although not limited to landlord properties, remember that if you’re planning to make significant changes to a property to support your business plans then you may need one of the many different forms of planning permission now required before changes are made.

That might particularly apply in situations where the property is listed or is located in a conservation area etc.

The law

The law of the land also makes certain demands of landlords.

Whilst it’s important to remember that there may be legal differences between Scotland, Northern Ireland and England & Wales, some of the following points may be broadly common:

  • you must provide a safe environment for your tenants.  This isn’t just a question of what you think is safe – some elements are laid down by law.  That includes regular gas safety inspections, electrical safety compliance and so on;
  • your property must be fit for human habitation. That includes achieving certain minimum levels of occupancy space per person, sanitation standards and similar;
  • the tenant’s deposit must be placed into the custodianship of an approved scheme. You cannot any longer just put it into your own bank account;
  • the way you conduct your business relationship with your tenants is also governed, in part, by the law.  For example, you can’t simply evict them based upon a whim – there is an established procedure laid down that must be complied with. Essentially the rights of your tenants are protected.

Cover4LetProperty have an excellent and more detailed summary of some of the above points. It might be well worth consulting.

It’s also worth noting that different types of landlord’s business and property might be governed by different regulations.

For example, if you have a property with multiple tenancies within it, you may find that you’re typically regarded as what’s called House in Multiple Occupancy (HMO).

You can find out more about HMOs from the government’s website.

Your mortgage lender

Your obligations to the lender in terms of insurance have been touched on above but you should also keep in mind one or two other potential complexities:

  • if the property you’re purchasing is leasehold, in some situations you may need the freeholder’s permission to use the property to generate rental income;
  • if you have an owner-occupier mortgage and start using the property for letting purposes, you will typically need to obtain the lender’s permission first.

Utility providers

The position here is slightly complicated by the multiplicity of potential combinations of different providers, contracts and who-pays-for-what arrangements.

However, broadly speaking it might be sensible to make sure that the providers of any utility services to your property are aware that it is tenanted.

The conduct of your business

This is an odd category as it technically covers many of the above domains but it also crosses them so it’s worth stating separately.

Ultimately, as a landlord you will be held accountable for conducting your business in a professional and reasonable fashion.

That might include things such as responding to tenant concerns in a timely and effective way – for example dealing with faults and repairs etc.  Although the specifics of this might not be laid down in the minutiae of the law, that doesn’t mean that a court or tribunal wouldn’t find against you in a dispute with your tenants.

So, make sure you manage and run your landlord business in an exemplary fashion at all times – providing a service to your tenants that you would expect to receive if you were one yourself.

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Actually, affiliate marketing in real estate presents a non-original model. The matter is that affiliate marketing which has been developing for over 10 years already, provides all the needed resources and tools for affiliate marketing in real estate. However, it is worthy mentioning some peculiarities.

The structure of the whole scheme is as following: merchant-affiliate (publisher)-consumer. The hierarchy is simple, so, the payouts and commissions system is simple, as well. A publisher (i.e. one who puts the merchant’s advertisement on the web site) is able to benefit from pay-per-click, pay-per-lead and pay-per-sale operations. As for affiliate marketing in real estate, the latest records claim that the merchants are able to get more profit from PPL system. In other words, the more potential clients register on the merchant’s web site, the more ventures the owner receives.

In order to make the affiliate cooperation more successful, a vast majority of the publishers find various ways to put the merchant’s links on as many web sites as it is possible. As a result, a powerful affiliate marketing network is arranged. All the merchants and their affiliates involved into the affiliate marketing program create the affiliate marketing network. Meanwhile, companies which provide aggressive advertisement policy are able to waste any good affiliate reputation.

Meanwhile, in this scheme there is one more party which provides techniques and tools for the affiliate marketing network. The intermediaries offer various services for easier and more effective affiliate marketing in real estate: scripts, tracking, affiliate search, reporting, arranging taxes forms, responding to the queries, etc.

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You may be wooed by its history and swept off your feet by its “character”, but there are a few things you should do before you commit to buying that old property. Old houses and buildings notoriously come with more structural problems than new properties, yet many buyers still flock to them because they believe that newer properties just aren’t built as sturdily.

If you’re truly set on buying a historic property, don’t give up on your goal at the first sign of structural issue. But here are some guidelines to make sure your investment doesn’t sink beneath your feet.

Get an inspection.

The first thing you should do when you find a property that catches your eye is make an appointment for an inspection. This will help you find problems that are typically difficult to catch by the unaided eye, such as old electrical wiring, mould, and radon. These can be life-threatening situations in some cases if not handled with caution. It is important to get the inspection before you make an offer because it could drastically change the amount of money you want to put on the table or whether you even want to make an offer at all. >>More >>

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Legal & General Property (“LGP”) announces that it has secured five new lettings on the office element of its Covent Garden Estate.  New office lettings include:

 

  • MG Promotions Ltd, a merchandising and events company, has taken an FRI lease on 473 sq ft on the 4th floor of 388 Strand, WC2, at a rent of £28.50psf
  • Plena Capital Ltd, an investment house, has taken an FRI lease on 1,037 sq ft on the 5th floor of Centric House, 390 Strand, WC2 at a rent of £40.50psf
  • Nick Lambeas Consulting Ltd, a recruitment consultancy, has taken an FRI lease on 1,018 sq ft on the 4th floor of Centric House, 390 Strand, WC2 at a rent of £41.50psf
  • Blow Inc, a fashion PR company, has taken an FRI lease on 2,073 sq ft on the ground and lower ground floor of 31-32 Bedford Street, WC2 on a short term lease to March 2013
  • Kea Consultants, the finance recruitment specialist, has taken an FRI lease on 1,396 sq ft over the 4th and 5th floors of Bedford House, 2-3 Bedford Street, WC2 at a rent of £33.50psf.

All four buildings form part of LGP’s 210,000 sq ft mixed-use Covent Garden Estate portfolio, which has undergone a programme of significant asset management to capitalise on growth opportunities since it was purchased from ING Covent Garden Limited Partnership in December 2009.

Additionally, the major redevelopment of 6 Agar Street, which forms part of the portfolio, is due for completion in October.   The delivery of this Grade A, 57,000 sq ft, six-storey development coincides with a particularly constrained supply of West End office space, and is one of the biggest development schemes in Covent Garden to complete this year.

 

Michael Barrie, Director of Fund Management at Legal & General Property, said:

“Reflecting our wider proactive approach to asset management, in order to drive values across the platform, we are extremely pleased with the continued progress that we have made across the Covent Garden Estate.  Identifying a number of value add strategies, we continue to invest in this high quality, well situated portfolio to take advantage of the strong occupier demand characteristics of the Covent Garden area.”

Simon Lee, Partner at EA Shaw, adds: “We are delighted to have completed these recent lettings. Covent Garden is a highly desirable area for occupiers looking to place themselves between the West End and City, with great facilities and amenities on the doorstep. Demand for space in the Covent Garden and Midtown area continues to hold up, and with a limited development pipeline ahead we expect to see rental growth for our landlord clients in the area over the next few years.”

EA Shaw and Hanover Green acted on behalf of Legal & General, Blow Inc was represented by Monmouth Dean, and MG Promotions, Plena Capital, Nick Lambeas Consulting and Kea Consultants were unrepresented.

More information on Legal & General Property’s Covent Garden holdings is available at www.coventgardenestate.com

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Shifting is always considered to be the hassle task. That is why; mostly, people hire the services of removal companies. There are many removal services in London. All of them are offering different types of services at different rates. You can select any of these companies and make your shifting hassle free.

If houses are big and equipped with plenty of stuff, it would become difficult to pack items. It will require weeks to pack all the items properly. You have to wrap these items in a manner that it would not break. Unpacking will also become hassle because you will need to open each item separately. Plenty of time will be required for re-arranging the items. For solving this problem, removal services adopt special strategy. They ask you to draw proper plan before start packing.

The first thing they ask you to do is to list down all the packing items. They advise you to list down the items of each bathroom, bedroom, kitchen, garage, dining room, store room and sitting room; separately. Once listing has been done, then they guide you to put label on each packing box. They ask you to properly tag the items and place them in properly labeled box. This will make rearranging easy and simple. You just have to open each box in mentioned room.

Removal Company knows that what roads must be selected for transporting the goods. It is necessary to select those roads which have less traffic over it. Roads must also be clean and do not have any obstacles. They know how to drive over the long routes with heavy stuffs. Driver must have to keep his eye open for each and everything that is coming over the road. They drive the vehicle at the side of the road rather than driving in the centre. They have special license to drive the big trucks and have experience to drive over the long routes. They ask you to travel in your cars behind them.

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London is a capital of England. It is the largest city arena in the United Kingdom. It is a prime global metropolis with power in the transport, tourism, services, arts, entertainment, commerce and many more. However, according to the current agents’ report, the number of Middle Easterners buying property in London has raised considerably. The demands for properties in prime locations in London like Hyde Park, Bays Water; Marylebone and Regent Park are souring. As compared to the previous year, the current marketplace insight report shows that applications from Middle East are up by 50%. The largest city zone London enticing property buyers from Middle East successfully.More inforation please click here

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There might be more rises in the energy prices and the climate changes starts to make the headlines, therefore why are new properties of home still are not being built to greatest energy efficiency standards? Most of the people know that it is possible to build or to create a house which uses only a part of the energy of the traditional buildings or house by incorporating new heating systems or solar heaters and the very modern technologies to supply all the pure and clean form of energy needed to run a home. For example, BedZed shining or Net zero energy building the value being not set in all new homes in London.

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The 2.6% increase in the property market at the beginning of the year will not affect by General Election according to the London Property dealers. The highest increase in properties after 2007 recorded this quarter of the year.

Many property dealers who were hesitating to do deals have exposed now publishing their properties to the market. What result would be on May 6th people think that there would not be much effect on Property Market. People who are in urgent need are still carrying on despite the reports of decrease in the London property market. Others have hold on for few days expecting some concessions after Elections.
Whatever government comes to power, it will take some time to implement the changes in any law and order. The Conservative Home Protection Scheme has promised payment of £8,000 as free permanent residential care for people of 65 yrs.

1% Mansion Tax is a proposal of Liberal Democratic for the properties worth over £2 million which will affect to limit their buying as not to have heavy tax burdens. Increase in stamp duty from 4% to 5% in £1 million plus properties is another proposal by Labour which would affect on demand of properties
more than £1 million.

However, only consolation from both Labour and Conservative which comes to power is that properties worth upto £250,000 will have a break of stamp duty for two years according to Labour, and Conservative promise to take away this stamp duty permanently.

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An interesting investment opportunity comprising six self contained apartments arranged over second and third floors and which can be offered with vacant possession upon completion. Below is a schedule of the accommodation. The ground and first floors (commercial) have been sold upon long leases. Tenanted Portfolios

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KNARESBOROUGH ROAD, HARROGATE, YORKSHIRE

20 flats (13 sold to Housing Association). Therefore 7 flats producing a total ground rent income of £1,750 per annum.  Leases : 125 years with ground rents doubling every 25 years. Freeholder has the benefit of management and insurance.
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Price: £30,650 subject to Section 5 Notices and subject to contract
For further information contact Daniel Lachs
E – mail: daniel.lachs@h-s-c.co.uk
tel: 020 7566 9444

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The basic raw material of your new business or the starting point of your portfolio. So – where do you start – what do you buy? In buying property for investment there are a number of rules that you should follow and it maybe considered a cliché but the first and most important rule is Location Location Location. The second is to identify the type of property you want to buy, having considered what will be easier to let. Next – identify the tenant you want to attract – corporate or otherwise and last but by no means least – what do you intend to spend

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An elegant and rare Grade II listed freehold residence built in circa 1825 by Charles Cubltt, discreetly located in one of Bloomsbury’s finest streets.

Full planning permission and listed building consent were granted on the 12th August 2009 for the property to be restored back to a substantial family home. The accomodation will provide 5,100 sq ft of living space.

The finished property would provide numerous notable features including a stunning open plan family room/kitchen and dining area on the lower ground floor leading out to the 60ft garden, a formal dining room and study on the ground floor, two intercommunicating Drawing Rooms on the first floor with floor to ceiling doors opening onto the balcony. A sumptuous master bedroom suite with two dressing rooms and en-suite bathroom, a further five bedrooms and three more bathrooms.

The finished product is a home that would offer a luxurious standard of living fused with period
grandeur, synonymous with this premier London address.Findout more property in clerkenwell

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FREEHOLD RESIDENTIAL GROUND RENT INVESTMENT FOR SALE –SOLD
Barton Vale, Bristol
A modern development comprising 20 flats producing a total ground rent income of £7,560 per annum
Leases: 999 years with the ground rent doubling every 20 years until the 100th year anniversary; thereafter fixed for the duration of the term.

Freeholder has the benefit of management and insurance
PRICE: £128,600 subject to contract

For further information contact Daniel Lachs
tel: 020 7566 9444

The statements contained in these particulars are believed to be correct but their accuracy is not guaranteed and they do not constitute any part of an offer. None of such statements are to be relied upon as a statement or representation of fact and intending purchasers/tenants must satisfy themselves as to their correctness by inspection or otherwise.

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Our busy City office are looking to recruit an efficient and organised Renewals Co-ordinator. Prior Lettings administration experience is preferred, but not essential. The ideal candidate we are looking for will have great attention to detail, an upbeat phone manner, and be well presented. The individual must be ready for a great opportunity to join a team of six busy professionals in our stand alone lettings department in the City & Clerkenwell office. Please send your cv in the first instance to Kari Trajer on kari.trajer@h-s-c.co.uk.

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comments on the 2009 Budget

Key Highlights:

* Stamp duty holiday for properties under £175,000 extended until the end of 2009
* Homeowner Mortgage Support Scheme widened to include those in negative equity
* £400m gap-equity funding to restart stalled developments
* Extension to HomeBuy Direct shared equity scheme by 10,000 properties
* Additional funding for social housing including £100m for local authority building

(1) Impact of the 2009 Budget on the UK housing market

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Location

The property is located on the West side of Grays Inn Road just north of Theobalds Road and Clerkenwell Road. Grays Inn Road is a well-known retail/commercial area in central London running from Kings Cross (Eurostar) to Holborn, Midtown. Chancery Lane Underground Station (Central Line) and numerous bus routes are within a few minutes walking distance.

Description

A substantial brick faced property planned on six floors, comprising a retail shop (A1/A2)) trading as a sandwich shop/snack bar at ground floor level and six apartments over the remaining floors currently rented out on residential tenancy agreements. The shop is let on a commercial lease for a term of 15 years from May 2004 at a passing rental of £20,500 per annum exclusive.

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Thinking of buying distressed property?

There ARE bargains out there – but here are a few words of warning; what seems like a great buy can easily turn out to be a complete lemon.

Why?

Because ALL property markets are currently dysfunctional. By that we mean that normal measurements of value simply don’t function. Sales volumes are so low normal comparable measurements of ‘good’ and ‘poor’ value have ceased to be meaningful.

This is why we have devised a completely new way of assessing whether a property is a great investment, an OK buy – or, indeed, an absolute lemon.

We think any sensible investor will want to take us up on our offer of a Property Investment Survey. And the reason is simple – it will save you money whatever way you look at it. In fact, it could very easily save you tens of thousands of pounds.

Here are three examples of what we mean – how a Property Investment Survey can save you A LOT of money right now – and in the future.

Let’s imagine you’re close to offering on a £200k property somewhere in the UK. You know it’s a bargain because you think you know the area and, well, you’ve done your homework. This property has been seriously marked down on its original asking price.

The £200k is your offer price based on a below market valuation and recommendation from the sales agent.

But what does below market value actually mean in a market where sales volumes are a fraction of what they were and where most sellers are distressed and most buyers only want to bag a fantastic bargain? It actually means close to zero. A market valuation, based on comparables, will not really give you any idea of what this property’s real, intrinsic, value is. This is what creates a dysfunctional market.

We need a new way to measure whether you are paying well above, slightly under or massively below the Intrinsic Value of this property over the long term.

This is where our analysis of the property’s long-term, intrinsic value, based on a wide range of economic and market research comes in. It can show you the property’s Intrinsic Value over the long term and you can then use this to compare with the price you are now able to buy the property at.

How our analysis of Intrinsic Property Value (IPV) works

But let’s explain how you can’t actually lose with our Investment Reports – in fact, you can only gain financially. Lets consider 3 scenario’s…

Scenario 1 – £200,000 property – Recommendation: “Red Light – Walk away”

We calculate that this property is at least 10% overpriced relative to its long-term IPV. We advise that you have two options – don’t buy or hammer down the price by more than 10% in order to buy below IPV.

You can use our research to create an iron-clad argument for your negotiations; or you can walk away.

If you renegotiate successfully, you’ve just saved yourself £20,000.

If you walk away, you’ve been saved from over-paying AND from paying out all the ancillary purchase costs.

By not purchasing you save*:

Buying costs
Stamp duty (1%) = £2,000
Legal fees (1%) = £2,000
10% overpriced = £20,000
*these figures are for illustrative purposes only

So that’s 12% in total, or £24,000.

And that’s before any potential negative/stagnant capital appreciation and possibly void rental periods.

Scenario 2 – £200,000 property – Recommendation: “Amber Light – Further Price Movement Required”

The Investment Survey and IPV research concludes that this price is reasonably close to being a sound investment and near long-term IPV, but further negotiation is needed to bring the price below the property’s IPV and therefore turn it into a bargain.

Any renegotiation of price in this category should result in a minimum 2% to 3% price reduction (remember, that’s our minimum expectation). So let’s say, 2.5% in this case, or £5,000.

Once again, the report gives you a powerful negotiating tool to save that extra £5,000, plus you know you have a great buy!

Scenario 3 – £120,000 property – “Green Light – A Sound Investment Considerably Below Long-Term IPV”

So now you have an independent, expert report to give you piece of mind in a market full of worthless marketing noise. AND, even with a property in this excellent Green Light category, we are entirely confident that you can still shave a further £1k off the price – and that will easily cover the expense of your Investment Report.

So, will you save money with an Investment Report?

Well, will an Investment Report cost far, far less than the £24,000 you save in scenario 1, and less than the £5,000 in scenario 2 and even the £1,000 in scenario 3?

The answer, of course, is “yes” – way, way less.

And that’s why you can’t lose – only gain ££££s.

Want to learn more?

Call us on +44 (0)1270 539576

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UK property market has seen a slow down since the property price in London felled rapidly in the late 1980’s and early 1990’s. This decline of the market is known to be after about a decade of boom in both the London property sales and prices. The London property market news shows the change in market trends in real estate property , full london property article

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When we say aggressive, we mean that they are offering to buy bulk units in Midtown, City and Docklands at up to 40% below the developer’s or vendor’s asking price.We expect vulture funds to have limited success in 2009 in Midtown and the City, instead they will turn their attention to Docklands bearing in mind the potential upside of the Olympics in 2012. With no sales or slow sales, for some hard-pressed developers and housebuilders outside of London unable to hold their assets for the rental market, bulk sales offer a solution to pay off debt rapidly, even if profit is foregone. In the regions, we have evidence that housebuilders are accepting 40-50% discounts for bulk sales, with 35-40% more typical of the Home Counties.

In Central London, including Midtown, City and Docklands Property, there is little evidence to date of bulk discounts being accepted. Some serious overseas investors with a long-term view are buying at more realistic rates of discount of between 10% and 15%. The movement of capital value and rents over the past 18 months has led to an increase in yields from 5.2% to 5.8%.

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