Getting Funding For Houses With Sitting Tenants
Where has all the money gone? It wasn't that long ago that the banks were throwing money at us, not it seems that not only are they refusing to lend to us but they are actively trying to get all of their outstanding loans repaid.
If you are a landlord with short term finance on a house that you let you may have had your bank manager on your case asking you when the loan will be repaid! This would be funny if it weren't serious.
Many landlords have had some problems.
I know that when Northern Rock were trying to dig themselves out of the excrement they were contacting high loan to value clients to find out if there was any chance they could have their money back.
They were one of the many banks that were giving large mortgages to people who couldn't really afford them.
The government are telling us that they have some good news for us in that they have now sold Northern Rock for around seven hundred and fifty million pounds which means the tax payer has only lost around four hundred million pounds.
That is where our money has gone! Unfortunately the outlook from where I am sitting doesn't look very rosy.
With the current financial crisis it is going to be even harder for us to borrow money from the banks.
It feels like we are already in another credit crunch, the banks are now looking at the possibility of Italy defaulting on it's debts and the trouble and strife that this is going to bring with it.
The thing is that this problem whilst not of our making is already having a detrimental effect on us.
If you are a landlord that is looking to finance property investments like houses with sitting tenants, regulated tenancies or protected tenants you will find most of the banks are closed to you..
The problem is that the banks are not keen on lending against properties where they can't get possession of the property.
A sitting tenant has the right to stay in their home until they die or simply decide to move out.
The rent that they pay is very low so there is not much chance of them vacating.
Sitting tenants are a throwback to the old days when tenants moved into a house without any tenancy agreement and refused to move out when the landlord decided he wanted the house back.
These investments are popular amongst property investors but have lost their sparkle in the last few years because the banks will not lend against them.
If you are a landlord with short term finance on a house that you let you may have had your bank manager on your case asking you when the loan will be repaid! This would be funny if it weren't serious.
Many landlords have had some problems.
I know that when Northern Rock were trying to dig themselves out of the excrement they were contacting high loan to value clients to find out if there was any chance they could have their money back.
They were one of the many banks that were giving large mortgages to people who couldn't really afford them.
The government are telling us that they have some good news for us in that they have now sold Northern Rock for around seven hundred and fifty million pounds which means the tax payer has only lost around four hundred million pounds.
That is where our money has gone! Unfortunately the outlook from where I am sitting doesn't look very rosy.
With the current financial crisis it is going to be even harder for us to borrow money from the banks.
It feels like we are already in another credit crunch, the banks are now looking at the possibility of Italy defaulting on it's debts and the trouble and strife that this is going to bring with it.
The thing is that this problem whilst not of our making is already having a detrimental effect on us.
If you are a landlord that is looking to finance property investments like houses with sitting tenants, regulated tenancies or protected tenants you will find most of the banks are closed to you..
The problem is that the banks are not keen on lending against properties where they can't get possession of the property.
A sitting tenant has the right to stay in their home until they die or simply decide to move out.
The rent that they pay is very low so there is not much chance of them vacating.
Sitting tenants are a throwback to the old days when tenants moved into a house without any tenancy agreement and refused to move out when the landlord decided he wanted the house back.
These investments are popular amongst property investors but have lost their sparkle in the last few years because the banks will not lend against them.
Source...