Currently viewing the tag: "homeowner"
 Avoid Committing Mortgage Fraud

Avoid Committing Mortgage Fraud

How To Guard Against Mortgage Fraud

Following fresh warnings from the National Fraud Authority about the rising level of mortgage fraud in the UK, lenders want more done to protect their interests.

Mortgage fraud was a widespread problem before the financial meltdown and collapse of the property market back in 2007/8 due to the availability of self- certification mortgages with buyers, brokers and mortgage advisers able to ‘self-declare’ earnings with little, if any, proof required by an industry too busy to carry out proper rules and checks on applicants.

Mortgage fraud costs the industry around £1 Billion (GBP) a year, leading the Financial Conduct Authority to want to instruct mortgage lenders to better acquaint themselves with the solicitors they work with.

The new stricter mortgage rules introduced in the Mortgage Market Review in April 2014 are intended to reduce the number of people who attempt to make false claims and self-certification mortgages are now a thing of the past.

However, this won’t stop mortgage fraud or prevent homeowners and property investors from being a victim of identity or registration fraud.

Continue reading »

Local Authorities Urged To Build More Private Rental Sector Properties

Local Authorities Urged To Build More Private Rental Sector Properties

Local Authorities Urged To Promote Institutional Investment In Private Rented Sector Over Home Ownership

According to the report “Making Renting Viable“ commissioned by the British Property Foundation (BPF) and conducted by a leading London law firm; more UK local authorities should focus on building new residential properties for the private rented sector to encourage institutional investment instead of promoting local homeownership.

The British Property Foundation and Addleshaw Goddard who conducted the survey, reckon that UK local authorities should earmark land within their council boundaries for private rented sector (PRS) properties and set housing development targets to encourage pension funds and other institutions to invest more in the private rented sector.

Partner at Addleshaw Goddard, Marnix Elsenaar, said: “It’s vital councils recognise both the need for an institutional private rented sector that’s not the same as buy-to-let, while ministers should update planning guidance to make building for rent economically viable. Residential property was seen as more difficult than renting out a commercial office block, but the landscape has changed. Institutions want reliable, long-term returns and they should see a good degree of income growth in the private rented sector.

Continue reading »

Quick Property Sales Fraud Risk

The FSA has warned homeowners in financial difficulties who are looking to sell their home fast to beware of committing fraud.

FSA Warns of BMV Property Fraud

FSA Warns of BMV Property Fraud

The financial regulator says it has evidence that some below market value (BMV) or distressed property sales may involve fraud, where the buyer (a company or an individual), asks the selling homeowner to state that the property has been sold for its full open market value, rather than the agreed purchase price.

Continue reading »

How does the cost of living compare for tenants and mortgaged homeowners?

For much of the UK population buying their own residential property will be the biggest financial commitment anyone undertakes and for many, owning their own home is essential. In the UK renting has traditionally been seen as an option for students and young professionals who need flexibility and also the ability to save up for a deposit for that all-important mortgage, but which is better value?

To Rent or Buy?

The ultimate aim of previous generations has always been to buy property. The potential uncertainties of renting property in the UK private rented sector (PRS) don’t always appeal to families.

Continue reading »

More Opportunity At Property Auctions

More Opportunity At Property Auctions

Property Auctions Not Getting Hammered!

There may be more opportunity for more people to buy property at auction after new figures released this week showed there was a little less activity by professional investors at the property auctions held across the UK in July.

The property auctions market didn’t take the expected hammering, with the number of properties offered as auction lots down by 6.3% compared with July 2011. The amount of properties sold at auction was also down on July 2011’s figure by 6.8%.

Data from the Essential Information Group, which monitors all property auctions in the UK, revealed that there were 188 property auctions across the UK during July 2012. At those property auctions:

  • 3,762 properties were offered for auction
  • 2,621 properties sold at auction

Property buyers who were seeking to purchase at the auction had a success rate of 69.7%.

With a fall in professional property investor activity there could be more opportunity for novice investors and even struggling home buyers to purchase property at auction, if only they knew how?

MyPropertyPowerTeam.co.uk provide an information page on property auctions, including what to look for and what to watch out for, visit the page by clicking here

David Sandeman, Managing Director EIG said “Challenging conditions were continuing to affect the entire property market”.

 Novice property investors may not have set foot inside a property auction room before and may be unsure of what to expect. With this in mind we are happy to provide a video clip from inside the auction room provided by our friends at NetworkAuctions

The UK mortgage market is warning potential borrowers that there has been a sudden surge in the number of mortgage providers lowering how much they will lend for an interest-only mortgage deal.

Nationwide, Santander, and Coventry Building Society are among the mainstream mortgage lenders that have reduced their Loan-To-Value (LTV) ratios on their interest-only mortgages to just 50%.

The announcement comes as little surprise to seasoned property professional who have seen the pattern repeatedly. The reduced LTV values will immediately affect new borrowers, however, changes will come into effect if homeowners need to borrow additional money against the value of their property to fund home improvements, as they will be treated as new loans and the amount will be limited to approximately 50% of the property value

Moneyfacts spokesperson, Sylvia Waycot, said “The development applies to new borrowers only, so anyone with existing interest-only deals at higher LTVs need not worry. However, the end result is that many people who chose an interest-only mortgage because it was cheap, are at their maximum monthly outgoings and will find themselves unable to move should they need to, or borrow for improvements – which means they are in fact under a form of house arrest.”

More than 66% UK property owners believe the value of their home will stay the same in 2012.

New research from Clydesdale and Yorkshire Banks has found that the majority of the UK public believe the value of their home will stay the same over the next 12 months.

The study revealed 66% of homeowners do not expect UK residential property prices to change considerably in either direction.

Only 16% of respondents anticipate that the value of their property will fall again this year, with the remainder expecting the costs to rise.

Retail Director for Clydesdale Bank, Steve Reid stated: “It is encouraging that such a high percentage of people have confidence in the property market and the value of their home.”

The research also revealed property owners in London are the most positive about the prospects of their property prices this year, with 39% believing the value of property is likely to escalate.

Tagged with:
 

The Land Registry has waived its fees for landlords who want an extra security function in a bid to counteract increasing property fraud.

From 1st February 2012, UK landlords will no longer have to pay for restrictions to be entered on their residential rental properties deeds at the Land Registry.

The restriction is designed to help prevent property fraud by requiring that a competent solicitor or property conveyancer must certify that they are satisfied that the person selling or mortgaging the property is the rightful and true owner of the property.

Home owner occupiers will have to continue paying a small fee for the charge, but the new exemption extends to buy-to-let investors and others not living in the property they wish to protect, including elderly people in long-term care or people who have moved out of their home after a relationship breakdown.

Landlords are at a proven higher risk of property fraud than homeowner-occupiers, and there have been cases where tenants have passed themselves off as the owner of the property and attempted to sell it or raise money on it via a mortgage.

See additional “Spotlight” articles about Property Fraud

By law the Land Registry must compensate the rightful owners of a registered property if there is sufficient evidence of a property fraud.

In 2010, 30 of the 71 claims paid out by the Land Registry for fraud and forgery were by non-family members.

Of these, 23 involved properties with an absent owner and amounted to £2 Million (GBP) out of the total £7.3 Million (GBP) compensation paid.

Landlords are urged to take up the land registry safeguard and also to take extra action to prevent ID and property fraud:

  • Use the Post Office’s mail redirection service if you have lived in the property yourself and are now renting it out. Use the service for at least a year.
  • Be extremely careful about details you give out on social networking sites like Facebook. Do not give out personal information such as date of birth.
  • Ensure that all your properties are registered with the Land Registry.
  • Ensure that all your contact details are updated and correct, so that the Land Registry can get hold of you if it wants to query anything.
  • Utilise the Land Registry facility to have three addresses on the register. Email addresses, as well as physical addresses, can be included.
  • Finally, use the free facility described above to enter a restriction on your property, requiring your solicitor to certify that the person attempting to sell or mortgage the property is the owner.

Chief Land Registrar, Malcolm Dawson, said: “It is important to let home owners know what simple steps they can take to protect their property, one of which is now the ability for those at greatest risk to have a free restriction entered which might prevent their property from being targeted by fraudsters and stolen unawares. We have introduced a range of additional safeguards in the last four years and we also work closely with other organisations to do all we can to tackle fraud and identify and take corrective action when it has happened. But home owners must also be vigilant and play their own part in protecting their properties against fraud.”

Original source: LandlordToday.co.uk

Tagged with:
 

The wild winter storm that rocked most of the UK last week caused widespread damage but the Association of British Insurers (ABI), reassured all policyholders, including those with landlord insurance policies, that claims would be dealt with swiftly.
The torrential rain and gale force winds caused extensive disruption across the UK’s transport network, damaged properties and vehicles and toppled trees.

Now insurers are preparing themselves for the claims to come flooding in and could be left with a hefty bill to pay.
However, the association confirmed that any storm damage would most likely be covered by home, business and buy-to-let property insurance and that damaged vehicles would be covered by comprehensive motor insurance.

The ABI advised those making a claim, including landlords with buy-to-let insurance policies, to do so as soon as possible, indicating that insurance firms would react quickly to help policymakers affected by the storm.

Nick Starling, ABI’s director of general insurance said: “Insurers number-one priority is to ensure that anyone who suffers damage get their claim dealt with as quickly as possible.”

Landlords and property owners without adequate insurance in place face rising costs and a race against the elements, to repair the damage caused by the storm before the weather deteriorates further and the UK experiences the sub-zero temperatures, freezing conditions and associated chaos that a typical British Winter brings.

Tagged with:
 

BTL mortgage arrears feared by UK landlords as tenant rent arrears increase

PRS Rent Arrears Set To Rise Again in 2012

Rent Arrears are set to rise in the UK Private Rented Sector, (PRS), during 2012 as more landlords face dealing with tenants who cannot afford the rental payments on their residential property.

The UK media reported at the end of last year that the number of court orders to evict tenants had risen by 11% during 2011.

In fact, in the last quarter of 2011:
• 78,970 tenants had rent arrears, with 11,400 more tenants over 8 weeks in arrears than in the same period of 2010, a rise of 18%.
• 24,966 tenants were in the process of dealing with eviction notices, an increase of 11% (22,558 in 2010).

A growing number of tenants face deepening financial difficulties, with many tenants jobs and prospects affected by the UK’s economic malaise and with the implementation of the Government’s Welfare Reforms, the number of tenants facing severe arrears and eviction is set to rise further.

The growing level of tenant’s rent arrears has yet to filter through into Buy-To-Let mortgage payment problems for landlords, but this could change in 2012.

In the last quarter of 2011, the number of Buy-To-Let mortgages more than 3 months in arrears fell by 7% compared to the previous quarter, representing an annual decline of 17%.

However, at 26,300, there are still more than five times as many Buy-To-Let mortgages in severe arrears compared with the same quarter of 2006.

Record low, 0.5% Bank of England (BoE) interest rates have kept monthly payments low for those with BTL mortgages tracking the base rate, but there has also been a change in the behaviour of UK landlords. With a healthy rental income becoming the most important component of a property investor’s annual return. Rental income that is sufficient to not only cover the landlord’s mortgage but also provide the landlord with some cashflow.

Landlords are becoming less tolerant of tenants payment problems, and many are seeking eviction as soon as the tenant’s rent arrears reach 8 weeks, using court orders to replace tenants quickly in expectation of finding a financially sound substitute.
UK landlords anticipate that in 2012 due to a growing number of factors, both overall rent arrears and severe rent arrears will rise, leading to increased tenant evictions, hampering the landlords ability to meet their monthly mortgage costs.

This situation that could lead to many disgruntled landlords leaving the Private Rented Sector and a huge increase in Buy-To-Let repossessions.

Legal 4 Landlords offer UK landlords a number of solutions to help them manage their rental property business better.

As well as being the fastest growing UK eviction specialists, Legal 4 Landlords offer a wide range of landlord services including specialist insurance for landlords and Rent Guarantee Insurance.

There Will Never Be A Better Time To Invest In Property

MyPropertyPowerTeam.co.uk helps property investors and landlords build their own property power team to enable them to profit from property - Visit our main site now!