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Monthly Archives: November 2014

Some Landlords Finding It Difficult To Raise Finance

According to the National Landlords Association (NLA), 67% of landlords will arrange a buy-to-let mortgage towards the funding of an investment property that they are then going to let out. Presumably the rest will source the funds from the likes of savings or borrow the money from other sources such as family. However, it is concerning to read that about 300,000 landlords (approximately 20%) who had wanted to buy more properties to rent out in the past 12 months were unable to do so as they were struggling to raise finance. Apparently, over the following 3 months, 31% of landlords intend to seek borrowing by way of a buy-to-let mortgage or re-mortgaging. Interestingly, 56% of landlords taking part in the survey felt that the criteria for buy-to-let mortgages was shall we say rather conservative. Also, 59% of landlords expressed their concern in this survey that providers of such finance do not take into account their personal circumstances. This will concern many landlords, both existing and those wanting to venture into this sector for the first time. One would have thought that lenders would be more supportive of landlords in view of the fact that we appear to have an inadequate…

What Impact Do Excesses Have?

When you arrange landlord insurance, one of the features that you need to be aware of is the amount of excess that may be payable in certain situations. However, before looking at the impact that an excess may have on your cover it may be a good idea to explain what an excess is. Quite simply, an excess is the amount that you may be expected to pay towards the amount of a claim. For instance, if your investment property that you are letting out was to suffer subsidence and it cost £50,000 to carry out the repair costs, you may be expected to pay an excess of, let’s say £1,000. Therefore, the insurance company would pay the remaining £49,000. The amount of excess and when an excess may be payable may vary between different providers of landlords insurance so you may wish to look into this before deciding which company to arrange cover with. Typically, you may find that no excess is payable for damage to the buildings or contents caused by things like fire, earthquake and explosion. Any other insured damage where an excess is payable may incur an excess of in the region of say £200 with…

Damaged Tenanted Property Statistics Give Cause For Concern

It was only last week that we extolled the benefits of having periodic checks made to your investment property. Those visits could be made by yourself or someone from the letting agent that is responsible for managing the property. We felt that such inspections would help ensure the tenants are complying with the terms of the rental agreement and are maintaining the property, fixtures, fittings and its contents in a satisfactory condition. If it was discovered that they were not then action could be taken to protect your investment. Therefore, we are sure that you will find the following statistics produced by the National Landlords Association (NLA) interesting and, in our opinion, merely support our views expressed in last week’s blog post. The research revealed that over a period of one year, 28% of landlords had a property damaged by their tenants. When you consider that there are estimated to be in the region of 1.5 million landlords located in the UK that is a considerable number of properties. Interestingly, it is in the North East of England that landlords are more likely going to encounter damage to their investment properties. The research showed that around 46% of such properties…

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