Richlist Posted November 30, 2020 Report Share Posted November 30, 2020 There seems to be rather a lot of first time buyers around in my part of lockdown England. I've had half a dozen in 10 days. Problem is because they are FTB's and they have their mortgage 'approved' they think they are in a position to offer a ridiculously low price.....below the range the agent has set. The reality is they hold NO bargaining chips of any kind. Their total inability to ask any worthwhile questions beggars belief........they don't ask about ground rent, service charges, council tax, lease length or anything else. It's even worse when they drag their parents along for advice.......and there is none forthcoming. Unfortunately for them they don't seem to understand that on a scale of best buyer to worst buyer, they are 1 notch up from worst buyer. Best buyers are investors with cash. I'm still going to church on Sundays where I pray for help and redemption. Quote Link to comment Share on other sites More sharing options...
Melboy Posted December 1, 2020 Report Share Posted December 1, 2020 One of my long term tenants moves out in January and he has bought a property on mortgage. He too had his mortgage approved in principle by a major bank since last August but the harsh reality has set in now he is deep into buying his property and the hold up to completion right now and has been for nearly 4 weeks now is the release of previously approved mortgage funds to his solicitor. So yes "mortgage in principle" may sound like you are home and dry and in a strong position to purchase you may be not as strong as you think you are. Mortgage in Principle can be obtained in 48 hours from any bank or building society and of course the main requirements are: How much deposit you have, Your annual (collective) salaries, Your ability to repay that mortgage. Quote Link to comment Share on other sites More sharing options...
Carryon Regardless Posted December 1, 2020 Report Share Posted December 1, 2020 Tbh I've no experience of the this' mortgagee n principle', but it sounds like lenders offering little of value while effectively reserving the naive as a customer while the lender decides. I expect the lending sources will 'approve' on the info of earnings and employment longevity provided, but will be needing support evidence when the real application comes in. Surveys and further surveys can be expensive and time consuming. A potential purchaser saying "I have a mortgage" must, surely be met with "how they 'aint seen the property yet". Quote Link to comment Share on other sites More sharing options...
Richlist Posted December 1, 2020 Author Report Share Posted December 1, 2020 Let's look at an example. Let's take a property on the market for £160-£170K. The buyer is looking for say £165K * An investor comes along paying cash. Cash has to be worth something cos there are no mortgage delays....I might knock off £2K for the advantage. An investor is going to have a £6K SDLT bill which I would normally meet half way. So the investor gets the property for £160K. * A first time buyer with a mortgage and ZERO SDLT is gonna have to pay at least £165K. Unfortunately FTB's just don't get it ! Quote Link to comment Share on other sites More sharing options...
Carryon Regardless Posted December 1, 2020 Report Share Posted December 1, 2020 RL I can see why a cash buyer is of value, bird in the hand sort of thing. But there was a time where these 'investors' would agree an offer to hold the seller as reserved. They would then bide their time and see where the market went. If down they renegotiate, if up then quids in they buy. If the market is buoyant then the investor will get on with it for fear of losing to another. The first time buyer may yet cause hold ups, not within their control. Aside from how it may affect the sale I don't see that it's your concern how much a first time buyer, or anyone, will have to pay out to achieve ownership. If there is no or additional tax it's their concern. The seller only needs consider his final revenue and if it is deliverable. Your saying to a buyer that as they are saving £6K tax means you want any of that isn't logical. Quote Link to comment Share on other sites More sharing options...
Richlist Posted December 1, 2020 Author Report Share Posted December 1, 2020 I know that it's very likely a buyer who is an investor is going to get on with the job ie. there are going to be minimal delays. The buyer will have some experience of what & where any hold ups are likely to be and we can work together to get to completion asap. If they are also cash buyers there will be no hold ups with lenders. The whole process is quicker and cheaper for me......my solicitors bill will be less, my monthly costs for running an empty house...circa £200 will end quicker, the sale proceeds will be in my bank faster etc. That opportunity is worth a (big) discount which I wouldnt offer to a FTB who would very likely provide the exact opposite of almost every benefit the investor can offer. Most investors know they offer advantages and will use SDLT costs (amongst others) as a bargaining tool. It's the sellers choice wether to pay some of the buyers SDLT costs in exchange for accepting a more attractive buyer. I enjoy negotiation, some people dont. Property sales offer many, many opportunities. An FTB is just not in a strong position to offer a low price as they are unable to offer anything in exchange other than a willingness to buy. Quote Link to comment Share on other sites More sharing options...
bil8999 Posted December 1, 2020 Report Share Posted December 1, 2020 Im with Rishlist on this, give the discount get the money Quote Link to comment Share on other sites More sharing options...
buddychapp Posted March 9, 2022 Report Share Posted March 9, 2022 Hello, I am happy for you. Investing money in real estate isn't a bad idea at all. But it would be best if you were careful and searched for a good property to invest your money in. Also, if you don't have enough money to pay when you buy your house, you can search more about hecm lending limits and how it helps you take a loan at a good rate. Search for it on the internet. I am sure you won't be disappointed. Quote Link to comment Share on other sites More sharing options...
kerbut Posted March 19, 2022 Report Share Posted March 19, 2022 Yes but in the UK we use £ not $ Quote Link to comment Share on other sites More sharing options...
Azazin Posted May 15, 2022 Report Share Posted May 15, 2022 Investing money in real estate is a popular thing nowadays. It brings a lot of profit and helps you make a lot of money if you do it right. If you are a first-time buyer, you should not rush into making investments you could regret later. You have to inform yourself and find a company you can trust to help you. When I first started, I had no idea what I was doing until I ran into some experts from https://onstage-online.com. They were glad to help and give me advice about beneficial properties, loans, etc. Now I can say that I manage what I am doing, and I have started to be really good at it as I have made some good investments that turned out to be very beneficial. Quote Link to comment Share on other sites More sharing options...
Richlist Posted May 15, 2022 Author Report Share Posted May 15, 2022 Beginners luck ? Quote Link to comment Share on other sites More sharing options...
Melboy Posted May 16, 2022 Report Share Posted May 16, 2022 For some unknown reason I have always had a fear of "Experts" 😅 Quote Link to comment Share on other sites More sharing options...
kanrent Posted May 16, 2022 Report Share Posted May 16, 2022 I had buyer's interested in one of my properties they had no interest in the ECP rating which has got me thinking if people are interested in buying to live in they have no worries about the EPC's unless they are BTL buyers Quote Link to comment Share on other sites More sharing options...
Grampa Posted May 16, 2022 Report Share Posted May 16, 2022 1 hour ago, kanrent said: I had buyer's interested in one of my properties they had no interest in the ECP rating which has got me thinking if people are interested in buying to live in they have no worries about the EPC's unless they are BTL buyers Maybe there will be a glut of landlords with poor EPC rating properties shortly selling up because they they don't have the will, knowledge or funds to bring them up to the required EPC standard come 2025/28. This may mean a reduction in the uk PRS and and opportunity for some landlords to pick up some more properties at a good price for their portfolios. However, they may need to be cash purchasers as lenders don't appear to like lending even at present unless the EPC rating is at least a E/F so that criteria may rise even higher for BTL lending in the near future. Quote Link to comment Share on other sites More sharing options...
kanrent Posted May 16, 2022 Report Share Posted May 16, 2022 5 hours ago, Grampa said: Maybe there will be a glut of landlords with poor EPC rating properties shortly selling up because they they don't have the will, knowledge or funds to bring them up to the required EPC standard come 2025/28. This may mean a reduction in the uk PRS and and opportunity for some landlords to pick up some more properties at a good price for their portfolios. However, they may need to be cash purchasers as lenders don't appear to like lending even at present unless the EPC rating is at least a E/F so that criteria may rise even higher for BTL lending in the near future. Grampa do you think the EPC will affect non BTL I have a 4 bedroom high maintenance with a large garden that I rent out, might want to sell it in about 5 years time only just makes a D Quote Link to comment Share on other sites More sharing options...
Grampa Posted May 17, 2022 Report Share Posted May 17, 2022 Well the EPC and its rating appears to be a element within the lending criteria of obtaining funding more and more. Whether it is better mortgage rates for "good" ratings or not meeting the criteria for funding at all with certain lenders. I can only see this as getting worst. If a property doesn't reach the minimum rating for BTL lending you are restricted to cash purchasers or owner occupiers. In my experience the normal BTL lenders wont lend even if you are planning to renovate. If you can squeeze the rating up to a C now it will at least increase market of potential buyers when it comes to selling. The cheaper end of increasing a EPC rating if you dont already have them is fitting: 300mm loft insulation TRV to all radiator's Room thermostat Separate Central heating Programmer (some boiler installs dont have them fitted) Draft extruder for wooden front/rear doors Programable heater for communal hallways leading to flats LED lighting throughout Programable heating in all living spaces ie: lounge, bedrooms, dining rooms etc If only part DG consider doing the remaining windows. Make sure the inspector has access to the meter cupboard if duel fuel (off-peak supply) Water tank jacket Provide proof of cavity wall insulation if you have it otherwise it will be assume not. Quote Link to comment Share on other sites More sharing options...
Carryon Regardless Posted May 17, 2022 Report Share Posted May 17, 2022 As Grampa, I recently experienced that a lender wouldn't lend with retention as was the norm. Now they seem to want minimum spec at purchase or no loan. It may be that they set the minimum EPC rating as such. Quote Link to comment Share on other sites More sharing options...
Richlist Posted May 17, 2022 Author Report Share Posted May 17, 2022 * I'm guessing/hoping that a photo showing cavity wall insulation being installed during construction will provide sufficient evidence ? May I make a few additions to Grandpa's list....I have no idea wether they will factor EPC improvements but they should. * Reflective foil behind all radiators on external walls. * Draw curtains with linings. * Baloon fitted to seal off unused chimneys. * High current draw appliances set to run on low rate timers. Quote Link to comment Share on other sites More sharing options...
Grampa Posted May 17, 2022 Report Share Posted May 17, 2022 6 hours ago, Richlist said: * I'm guessing/hoping that a photo showing cavity wall insulation being installed during construction will provide sufficient evidence ? May I make a few additions to Grandpa's list....I have no idea wether they will factor EPC improvements but they should. * Reflective foil behind all radiators on external walls. * Draw curtains with linings. * Baloon fitted to seal off unused chimneys. * High current draw appliances set to run on low rate timers. My EPC assessor would accept photographic evidence provided he can keep a copy for his records in case he get audited. He also says he is not expected to test appliances to make sure they work or are connected. 😉 Quote Link to comment Share on other sites More sharing options...
Melboy Posted May 18, 2022 Report Share Posted May 18, 2022 Cavity wall insulation should have a certificate of installation given to the property owner as indeed I have one. Quote Link to comment Share on other sites More sharing options...
Richlist Posted May 18, 2022 Author Report Share Posted May 18, 2022 4 hours ago, Melboy said: Cavity wall insulation should have a certificate of installation given to the property owner as indeed I have one. Yes, if a finished house has insulation pumped into the cavities you will get a certificate but......not in 1989 when you build a property yourself and the cavity wall batts are fitted as the brick & blockwork goes up. We had specifications, drawings, a surveyor, a main builder for the structural stuff, NHBC certification and a file over 4 inches thick of documents relating to banking, taxation & construction. Oh.....and I was consciencious enough to take lots of photos as it went up. That's all they will get. Quote Link to comment Share on other sites More sharing options...
Richlist Posted May 18, 2022 Author Report Share Posted May 18, 2022 15 hours ago, Grampa said: My EPC assessor would accept photographic evidence provided he can keep a copy for his records in case he get audited. He also says he is not expected to test appliances to make sure they work or are connected. 😉 * A copy of a photograph is easily obtained......so looks like I'm ok. * I guess your epc assessor doesn't check the central heating, wall stat or controls are working either but places a tick in the box if he sees all that stuff fitted to the wall. All he needs to see are appliances attached to timer controls.......I could even show him where they are and open the cupboard doors for him if it would help. Quote Link to comment Share on other sites More sharing options...
Oskarosh Posted June 13, 2022 Report Share Posted June 13, 2022 This is the main reason I don’t want to get any mortgages: there are too many difficulties and “hidden pitfalls.” For some reason, bank officials cannot clarify the contract to everyone, and I always fear they will fool me somewhere. I know that there are companies like Mortgage Advisor Birmingham that can help me get a good contract. However, I still want to understand the whole process myself. Now I just want to make enough money to buy my own house without any loans. That is why I want to have my own business in the future—something with jewelry. Quote Link to comment Share on other sites More sharing options...
kemobetter Posted August 11, 2022 Report Share Posted August 11, 2022 There are not so many cash buyers these days because of the economical situation Quote Link to comment Share on other sites More sharing options...
douggieohare Posted August 11, 2022 Report Share Posted August 11, 2022 I can understand first-time buyers because the prices are too high now, and they want to save money where they can Quote Link to comment Share on other sites More sharing options...
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