Archive for the ‘Repossessed Properties’ Category

We have the UK’s TAX EXPERT at our ALL DAY 4TH BIRTHDAY EVENT at Hilton London Metropole on Sunday 27th June 9am-5pm and he will tell you how to set your business up so paying tax is VOLUNTARY!!!

All the speakers at our FULL DAY educational event are the BEST SPEAKERS in the business and you WILL NOT FIND THEM SPEAKING AT ANY OTHER EVENTS!

A FULL DAY EDUCTIONAL EVENT MEETING THE UK`s TOP PROPERTY EXPERTS

Including EVERYTHING you ever wanted to know about buying property without using ANY of your own money.

SPEAKERS INCLUDE :-

Mr Tax Man SIMON GOODY
•PAYING TAX IS VOLUNTARY! Yes that’s correct, find out how to pay little or no TAX. Simon unravels the taxmans secrets, to MINIMISE your tax liability, including ten little known tips to pay hardly any tax, also CGT changes & how it effects you, & how to plan for it.

HBFi & Homes Bought Fast (Owner) DAVID COUGHLIN
•In the space of a few years David has amassed 160+ properties cashflowing at well over £20,000 pm plus commercial properties incl hotels & public houses.

Property Millionaire & TV Pundit RAJ SHASTRI
•As seen on BBC’s morning news, money programme, the truth about property, virgin 1 money envy plus numerous radio shows in the UK & abroad ++ many more.

Mr Planning Permission JOHN CORDWELL
•John is surrey councils town planning expert & has spoken to 10`s of thousands investors nationwide. Learn why the UK’s crazy planning laws mean that there will NEVER be enough properties in this counrty to keep up with demand. EVERY landlords dream!

UK`S Top Master Mortgage Broker BARRY MICHELLE
•Barry’s easy style & knowledge explains the way around the mortgage market, & shows you how to save £1,000`s on little know techniques.

BUY PROPERTY ON THE DAY FOR JUST £995!!!

ALL for £49 FOR A TICKET INCL FREE GUEST + FREE LUNCH plus £500 VOUCHER – Book NOW -

HBF Investment properties UK

With property you can make HUGE financial steps that any ‘man in the street’ can follow and that would be completely unattainable to the ‘average Joe’ by any other means.

For example (type of deal we can do for you at HBF Investments):

*Buy £100K house for £75K with £80K mortgage giving you £5K cash back on completion.
*Pay £5995 for the deal
*On completion you are refunded £5K
*Effectively you pay just £995 for £25K equity and £200pcm (average cash flow)
*By 2015 expected value to be £120K
*So in 5 years £995 has generated you £40K equity and £12K cash flow

How else can ANYBODY turn £995 into £52K in just 5 years!!

OK so then decide this is great and buy 5 of these (5X£995 = £4975 – who cannot afford that??). So £5K generates you £260K in 5 years! Is it really so good to be true? YES!

Remortgage 2 houses in 5 years from now at 85% of £120K = £102K mortgage less £80K owed = £22Kx2 = £44K cash release TAX FREE + £1K/month rental cash flow

Consider giving up your day job by simply remortgaging one house every year!!!!!

What do I specialise in? Exactly this!!

I use my cash to buy pubs, hotels and to build one of the best/biggest property sourcing companies in the UK – AND I gave up my day job in 2005 (after doing this alongside my day job for 2 years)

And Guess what? – ITS SIMPLE STUFF that ANYBODY can do . Thats the great thing about it!

If you want to know more about how to do this and generate HUGE WEALTH EASILY then simply sign up for one of our seminars – we also do personal 1-2-1 wealth consultations with our investors: HBF Investment properties UK

Also look out for my posts in the Events section. We will be in London on 10th and 27th June and Leeds on 17th June – we will have lots of Repossessed Propery deals available at these events..

Would you like a FREE personal 1-2-1 wealth consultation with the leading UK property experts and property buyers? These are the guys WHO MAKE LOTS OF MONEY and can show you how to do exactly the same!

Would you like to hear how from the real experts how, from a standing start, you will be able to give up your job and have £500/week cash flow for life, with as few as just 5 properties?

If you do, please come and meet Property Millionaires David Coughlin from HBF Investments, and Raj Shastri as seen on the BBC’s “The Money Programme”:

http://www.myshowreel.co.uk/rajshastri/

on Thursday 10th June 2010 at London Hilton Metropole Hotel, 225 Edgware Road, London, W2 1JU

The event starts at 7pm with your personal 1-2′-1 consultations starting at 3pm. PLEASE BOOK EARLY for your personal 1-2-1 consultation with one of our property experts and to get access to the best properties that we have for sale on the day.

http://www.hbfinvestor.com/event.aspx

At this must go to FREE Networking Event, Raj Shastri in conjunction with David Coughlin of HBF Investments, will show you:

* How from a standing start and with little money they bought over £20M worth of property generating cash flow over £40K/month.

* How anybody from a Beginner to an Experienced Investor can do the same!

* How you can make money from ALL properties at ANY TIME in the market – including dreaded refurbs which make the BEST deals!!

* How you can buy the very best discounted property deals from HBF with CASH BACKS and NO DEPOSIT!!

* how you can become financially free and give up your day job in just 3 years

We have the leading experts who are ACTUALLY doing the BEST deals and financing the BEST deals and making the MOST money coming along to share their amazing knowledge and tips with you.

We will also have fantastic discount deals with CASH BACKS and NO DEPOSITS available for you to purchase on the night. These will be sold on a first come first served basis so please come prepared with cheque books and credit cards at the ready! Better still, book your 1-2-1 wealth consultation and lets us start building a profitable portfolio that suits you!

To confirm your place for you and your guests NOW for Thursday 10th June 2010, please register at:

http://www.hbfinvestor.com/event.aspx

Registration will be at 7pm and presentation to commence at 7.30pm and personal 1-2-1 consultations begin at 3pm.

I personally look forward to meeting you at our event.

Extra rules to regulate “sale and rent back” property deals are going to be brought in by the Financial Services Authority (FSA) next year.

The FSA will ban “exploitative advertising and high-pressure sales techniques”, it said.

It wants to protect financially troubled home owners who consider selling their homes and becoming tenants in them instead.

The FSA started regulating “sale and rent back” firms in July 2009.

An enquiry by the Office of Fair Trading (OFT) last year found that some firms offering these deals were devious and dishonest, luring people into selling their homes at a discount, only to evict the former owners within months so their homes could then be sold at a large profit.

“Many of the people typically targeted are financially vulnerable and have been badly hit by the experience,” said Ed Harley, the FSA’s head of mortgage policy.

“We want to prevent high-pressure and inappropriate sales, and help consumers understand sale and rent back products, so they only enter into sale and rent back where it is an appropriate and sustainable solution for them.”

New rules

Firms offering these sorts of arrangements, typically aimed at people under threat of repossession, are required to be authorised by the FSA and to be run by people who are “fit and proper”.

The extra regulations, which will come into force on 30 June 2010, will:

• bring in a cooling-off period to give consumers more time to make decisions

• ban cold calling and prohibit firms from dropping promotional leaflets through letter boxes

• prohibit the use of emotive terms like “fast sale”, “mortgage rescue” and “cash quickly” in promotional literature

• ensure consumers have security of tenure; and

• require that in every sale, firms check that the consumer can afford the deal and it is right for them.

So far, just 80 firms have applied for FSA authorisation, even though the OFT found there were more than 1,000 companies selling these deals last year.

Firms or individuals that break the rules can be fined or prosecuted, with individuals facing possible imprisonment.

Source: news.bbc.co.uk

In the first court ruling of its kind, the judge branded the sale and rent back company Repossessions Stopped ‘dishonest’ for promising the family they could stay in their home for life.

Paul and Amanda Jackson were terrified of losing the home they had occupied since 1984 after falling into arrears with their mortgage, and in desperation answered a newspaper advertisement by a company called Repossessions Stopped.

The company told the couple it would buy their home, pay off their mortgage and let them rent it back indefinitely.

But within two years the Jacksons were threatened with eviction after the property’s new owner defaulted on her mortgage and was herself repossessed.

In a landmark decision, His Honour Judge Worster ruled that the family can either revert to being owner-occupiers, or rent the property for the rest of their lives, with their daughter inheriting the tenancy.

Shelter’s principal solicitor John Gallagher said:

‘This is a huge and important victory for not only the Jackson family but everyone who is tempted by these sale and rent back schemes.

‘I would urge anyone having mortgage difficulties to seek independent advice from Shelter, a Citizens Advice Bureau or other debt counselling organisations before contacting these kind of companies.’

Source: Shelter

Diary of a UK Property Investor – www.hbfinvestments.co.uk

The business world of LPA Receivers and their repossession of investment properties is booming thanks to the credit crunch!   Please see LPA Receivers – Back with a Vengeance!  Source: DWF LLP

This is a red hot topic currently and is one which provides both massive opportunities for bargain hunters with the right LPA contacts  but also serious risks to property investors who are struggling with their mortgage payments!

Many property investors are having their investment property portfolios effectively repossessed immediately even if they miss just one mortgage payment.  Simply 10,000’s of Buy to Let properties will be repossessed during the credit crunch by LPA Receivers in this way!

Until recently, lenders would apply to the courts for possession of properties but this process can take months.  Lenders short cut this process instantly by utilising the Land and Property Act 1925 to appoint LPA Receivers to effectively repossess a property or property portfolio.  By instructing the LPA Receiver, the lender effectively redirects & collects rents and is able sell a property almost at will and at any price they want to accept and as quickly as possible.

There are many investors who have been caught in this trap and they appear to have no recourse to challenge the LPA Receivers actions:  please see forums: Consumer Action Group and Money Saving Expert. It appears that if landlords get into short term trouble they can lose all their equity and cash flow from their rents and there is little if anything they can do about it.

On the flip side, LPA Receivers need to find buyers for all these properties and this presents a massive opportunity for property investors with the right contacts.

HBF Investments is a company working with LPA Receivers to source properties and trade them with property investors.  Most of the properties come tenanted and at 25% discounts. 

I personally see this environment and opportunity persisting for 24 months as when interest rates rise from 0.5% far more investors are going to have their portfolios repossessed.

Source: David Coughlin. HBF Investments

FSA to protect sale and rent back customers  – 03 June 2009 

The Financial Services Authority (FSA) has today published the details of the regime that it aims to introduce on 1 July to tackle immediate problems for customers in the sale and rent back (SRB) market.

This follows HM Treasury’s announcement yesterday that it is extending the scope of FSA regulation to include SRB, as it considers this to be the most appropriate way of ensuring consumer protection in this market.

This supports the recommendation made last year by the Office of Fair Trading (OFT), following a market study which found that sale and rent back deals had the potential to cause serious harm to homeowners who are often already in a vulnerable position.

A recent FSA survey of 2,006 adults aged 18 and over interviewed across Great Britain found that: 

• only 42% of those surveyed knew that SRB is currently unregulated (meaning that people who currently take part in these schemes do not benefit from the protection afforded by the Financial Ombudsman Service if needed);
• the majority thought they would be entitled to stay in their home for more than five years (whereas the typical contract is six to 12 months); and
• the majority (58%) surveyed thought SRB should be regulated.
• The FSA is taking a two stage approach to regulating the SRB market.  An interim regime will be brought in as soon as any statutory changes come into force (expected on 1 July) in order to address the most immediate problems for consumers, followed by a more comprehensive regime which will start on 30 June 2010.

 Ed Harley, FSA head of mortgage policy, said:

“We know that some consumers enter into sale and rent back arrangements without understanding the costs and risks involved.  This can be a source of real distress for people in already difficult circumstances.  Firms entering our regime will need to run their business in a way that means customers are treated fairly.  This includes making clear to customers important details, such as the length of time they can stay in the property, before they enter into the arrangement.”

Under the interim regime firms will need to meet FSA threshold conditions including the requirement to have adequate resources and to be run by fit and proper people.  Firms will also have to comply with the Principles for Businesses and meet a number of systems and controls and conduct of business rules. 

Firms that are currently unauthorised and that intend to carry on any of the new SRB regulated activities after the commencement of the interim regime will need to apply for interim permission.  Similarly, firms that are currently authorised for other activities will need to apply for interim variation of permission.  Firms are encouraged to start preparing now for authorisation and to apply as soon as the interim regime starts.  

Notes for editors

The policy statement ‘Regulating sale and rent back: an interim regime’ is available on the FSA website.

• SRB schemes involve individuals selling their home, usually at a discount, and obtaining an agreement to remain in the property for a set period – typically through an assured shorthold tenancy of six to 12 months.
• On 2 June HM Treasury published a response to its consultation document, ‘Regulating the sale and rent back market: a consultation’ (published in February). This can be found on its website www.hm-treasury.gov.uk
• The consumer research quoted was conducted by TNS with a representative sample of 2,006 adults aged 18+ interviewed across Great Britain between 1 and 5 April 2009.
• The FSA has published some information on its website to help firms prepare for interim authorisation and shall shortly publish sample application forms on its website to give firms additional help.  The key dates for the regulation of sale and rent back are as follows:
• 1 July 2009: interim regulation expected to begin and firms can start to submit applications for interim permission or interim variation of permission;
• 1 August 2009: the closing date for interim permission applications;
• September 2009: expected publication of Consultation Paper on full regime for sale and rent back; and
• 30 June 2010: SRB regulation under the full regime will begin.
• The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; securing the appropriate degree of protection for consumers; and fighting financial crime.
• The FSA aims to promote efficient, orderly and fair markets, help retail consumers achieve a fair deal and improve its business capability and effectiveness.

Source: Financial Services Authority

UK property investment market still challenging

Conditions in the UK residential property and mortgage markets will continue to be challenging throughout 2009 although existing borrowers are gaining from the low level of interest rates, it is claimed.

An update from the Council of Mortgage Lenders, whose members account for around 98% of residential property lending in the UK, says that it now expects a lower level of repossessions.

It had predicted that there would be 75,000 repossessions this year but it has now revised that figure down to 65,000. It also expects some 360,000 mortgages to be in arrears, that’s 2.5%, by the end of the year.

The revised outlook is due to significant levels of forbearance being shown by lenders and the government’s interventions to improve support for some struggling property owners.

The CML’s forecasts for housing transactions and gross lending remains unchanged at 700,000 transactions and £145 billion of gross lending. However, the outlook for net lending appears less negative than previously forecast, and the CML now expects net lending to fall by only around £5 billion, compared with the £25 billion contraction previously anticipated.

‘The raft of measures taken by the authorities have stabilised the economy and will sow the seeds for a recovery over time, including in the housing market. But the improvement is likely to be slow and drawn out, especially as the extensive fiscal, monetary and credit support measures are gradually unwound,’ said a spokesman.

The CML forecast does not go beyond the end of the year although one leading economist has recently warned that repossessions could surge in 2011 due to rising unemployment. Ian Shepherdson told the Chartered Institute of Housing’s Annual Conference that repossessions will reach between 100,000 and 120,000 per year by 2011. Repossession levels in 2008 stood at 40,000.

Source: Property Wire