Landlord Investor MARCH 2015

BY

INDUSTRY

EXPERTS

COVERING

ALL

ASPECTS

OF

BUY-TO-LET

MARCH 2015

WRITTEN

LANDLORD | PROPERTY | INVESTMENT

GREEN DEAL CASH BACK: INCENTIVES FOR PROPERTY EFFICIENCY

- Tom Entwistle

RIGHT HOUSE, RIGHT AREA: ESSEX BUY TO LET ANALYSIS

- Kate Faulkner

PUTTING YOUR PROPERTY ON THE MARKET

- Susannah Cole

CASH BACK TO COINCIDE

WITH GREEN DEAL

ALL ABOARD THE PROPERTY TRAIN! SEMINARS DELIVERED BY INDUSTRY EXPERTS GAIN VALUABLE KNOWLEDGE MEET INDUSTRY LEADERS

KEEP UP TO DATE WITH THE LATEST LEGISLATION NETWORK WITH PROPERTY PROFESSIONALS INVESTMENT OPPORTUNITIES

2015 LOCATIONS 5th MARCH COLCHESTER ESSEX 22nd APRIL READING BERKSHIRE 14th MAY CROYDON SURREY 4th JUNE LONDON OLYMPIA 24th SEPTEMBER NORTH LONDON / HERTS 1st OCTOBER MANCHESTER LANCASHIRE 22nd OCTOBER MAIDSTONE KENT 19th NOVEMBER LONDON OLYMPIA BOOK YOUR FREE SHOW TICKETS TO FAST-TRACK YOUR ENTRY BY VISITING:

WWW.LANDLORDINVESTMENTSHOW.CO.UK // 0208 656 5075

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WELCOME TO THE MARCH ISSUE OF LANDLORD INVESTOR! Editorial Editor Tracey Hanbury editor@landlordinvestmentshow.co.uk Editorial Contributors

Alex Greenslade Angus Elphinstone Charli Alderton David Humphreys Karen Bennett Kate Faulkner Marie Parris Peter Davis Peter Littlewood Randall Contracting Susannah Cole Tom Entwistle

Firstly, I would like to take this opportunity to wish everyone a happy St. Patrick's day on March 17th. As I am from the hills of Donegal, I shall certainly be raising a glass or two in traditional Irish style.

Here in the March issue of our Landlord Investor magazine, St. Patrick's Day is not the only day to celebrate being green as Tom Entwistle fills us in on the very latest on cash back incentives to coincide with the green deal for landlords.

In this issue, we cover buy-to-let hotspots within Essex, as Kate Faulkner analyses investment opportunities.

CONTENTS Buy-to-Let Analysis Green Deal Your Property Partner Great Property Tips Landlord Associations Industry Spotlight Lease Extensions Commercial Financial Expert Advice

06 10 16 22 26 32 34 38 42 44

We also have part two of a joint venture project, where Susannah Cole tells us how to put your property on the market.

I hope you enjoy this month's issue, Happy reading!

Art Dept.

Design Craig Edmonds

Tracey Hanbury | Editor Landlord Investor

Tracey Hanbury

Contact 0208 656 5075 landlordinvestmentshow.co.uk /LandlordInvestmentShow @LandlordInShow

Tenants History Southbridge House Southbridge Place Croydon CR0 4HA Statements and opinions expressed in articles, reviews and other materials herein are those of the authors; the editors and publishers. While every care has been taken in the compilation of this information and every attempt made to present up-to-date and accurate information, we cannot guarantee that inaccuracies will not occur. Tenants History Limited and our contributors will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through the promoted links.

LANDLORD INVESTOR March 2015

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MEET THE TEAM TRACEY HANBURY EDITOR & SALES DIRECTOR T: 0208 656 5075 M: 07931 308 875 tracey@landlordinvestmentshow.co.uk

STEVE HANBURY DIRECTOR T: 0208 656 5075 M: 07429 683 046 steve@landlordinvestmentshow.co.uk

LES HANBURY DIRECTOR

FRAN ROBINS SALES & EVENTS MANAGER T: 0208 656 5075 M: 07950 284 615 fran@landlordinvestmentshow.co.uk

RYAN DENNINGTON SALES & EVENTS MANAGER T: 0208 656 5075 ryan@landlordinvestmentshow.co.uk

CRAIG EDMONDS CREATIVE DESIGNER T: 0208 656 5075 craig@landlordinvestmentshow.co.uk

SARAH-JANE CORDINGLEY SALES EXECUTIVE

T: 0208 656 5075 sj@landlordinvestmentshow.co.uk

March 2015

LANDLORD INVESTOR

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OUR 2015 ROADSHOW

MARCH 5TH - COLCHESTER - ESSEX COLCHESTER FOOTBALL CLUB

APRIL 22ND - READING - BERKSHIRE CROWNE PLAZA HOTEL

MAY 14TH - CROYDON - SURREY FAIRFIELD HALLS

JUNE 4TH - LONDON - OLYMPIA

SEPTEMBER 24TH - NORTH LONDON / HERTS

OCTOBER 1ST - MANCHESTER MANCHESTER UNITED FOOTBALL CLUB

ELSTREE HOLIDAY INN

OCTOBER 22ND - MAIDSTONE - KENT MERCURE GREAT DANES HOTEL

NOVEMBER 19TH - LONDON - OLYMPIA

IF YOU WOULD LIKE ANY INFORMATION ABOUT OUR 2015 SHOWS, PLEASE GET IN CONTACT WITH A MEMBER OF THE TEAM ON THE OPPOSITE PAGE OR ALTERNATIVELY, VISIT OUR WEBSITE AT: WWW.LANDLORDINVESTMENTSHOW.CO.UK

LANDLORD INVESTOR March 2015

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BUY TO LET ANALYSIS

IS COLCHESTER A CRACKING PLACE TO INVEST IN PROPERTY? Kate Faulkner - Propertychecklists.co.uk

ACCORDING TO MANY SOURCES, COLCHESTER IS ONE OF, IF NOT THE OLDEST TOWN TO BE RECORDED IN BRITAIN. Fortunately for those looking to invest or already letting property in the area, there have been few more homes built since Roman times and with trains to London taking just an hour, it’s great for commuters.

This is important as Londoners tend to have better salaries and job opportunities which can help drive property prices and rents upward.

March 2015

LANDLORD INVESTOR

So is Colchester and Essex a successful area for investors to date? Well currently, the average price for a property in Essex is £212,000 – 16% higher than the national average of £178,000 and prices increasing nearly 10% just in the last 12 months (Land Registry).

From a rental perspective, rents vary in the area from £750 to £1,000 and according to the LSL Property Services (Your Move and Reeds Rains) rents are up 8.8% year on year in the East of England, with yields on a par with 2014 at an average of 4.3%.

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BUY TO LET ANALYSIS

The latest stats certainly suggest that things are looking good for investors at the moment - but what returns have been achieved over the long term? Nationally, property prices tend to rise each year by around 6%. For Essex the growth is slightly higher – 6.3% - which is likely to be due to this ‘commuter’ status which attracts higher earners, supporting higher than average price growth.

From a risk perspective, at the previous market height in 2007/8, prices in Essex were £192,500. During the recession (this is your risk of property ownership) they fell to a low of £172,500, a fall of 18%. This is about on a par with the falls seen on a national basis so no better, but no worse either.

Since then though, prices have recovered quicker than many areas across the UK. Now prices ‘on average’ are pretty much back to the heights seen in 2007/8 and 10% of the increase came in just one year (2014), but properties can be considered ‘good value’ as they are still at the same level as they were seven years ago.

So overall, Colchester and Essex appear to be pretty good areas both currently and in the long term and this goes for rental and property price growth.

However, a successful property market can make getting a deal to stack up tough as properties can be quickly snapped up, making it difficult to get properties at the required discount and not all properties on all roads are seeing great price growth or yields.

A two bed, standard terrace in the City Centre would cost around £150,000 to £160,000 and rent for £650 per month. Taking into account three weeks of voids, this would give an annual income of £7,350, giving a yield of under 5%. And looking at these properties, some have seen no price growth in the last 10 years – especially bad news if investors have bought with cash.

LANDLORD INVESTOR March 2015

BUY TO LET ANALYSIS

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Having said that, Colchester is not a bad market for investors as long as you take care and seek specialist local advice. It may well be worth heading to the auctions to see what bargains you can pick up, but one of the best parts of the town is that there is such a wide range of property choice. Whether you want to get into university accommodation, let a new build to young, commuting professionals or those working in Colchester itself, there is lots available and houses and flats can achieve a good 6-7% yield while the ‘right house’ in the ‘right area’ can deliver even more.

For more analysis and information on latest market reports, plus the ‘low down’ of the forecasts for the future of investing in Colchester and Essex, visit www. propertychecklists.co.uk and come to my seminar at the Weston Homes Community Stadium on March 5th at 2:30PM. ⌂

MEET KATE, WHO WILL BE HOLDING SEMINARS AT ALL OF THE LANDLORD INVESTMENT SHOWS THIS YEAR INCLUDING: READING - APRIL LONDON OLYMPIA - JUNE NORTH LONDON/HERTS - SEPT MANCHESTER - OCTOBER LONDON OLYMPIA - NOVEMBER www.landlordinvestmentshow.co.uk

March 2015

LANDLORD INVESTOR

Download all the FREE checklists a Buy to Let Investor will need Independent expert advice on: • Property prices, rents, returns and forecasts • Analysing your buy to let • How to buy property below market value • How to choose the right buy to-let services

SEE OUR CHECKLISTS FOR ALL THE BUY TO LET HELP YOU WILL NEED www.propertychecklists.co.uk

T: 01652 641 722

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GREEN DEAL

WARMING TO ENERGY EFFICIENCY Tom Entwistle - LandlordZONE

THE COALITION GOVERNMENT HAS SET OUT PLANS TO MAKE THE UK A WORLD LEADER IN ENERGY EFFICIENCY. They have set out an ambitious agenda in a comprehensive national strategy which details government policy direction for the coming years.

There’s no doubt that using energy more efficiently will reduce pressure on resources and help keep prices down. By ensuring that tenanted properties are insulated to modern standards and use their energy efficiently, tenants will save money on bills, cut emissions, and live in a healthy and safe environment.

March 2015

LANDLORD INVESTOR

The government’s intentions are clear and legislation has been put in place to ensure that this happens over the coming years. Private landlords will have to “bite the bullet” and accept that in some cases they will need to spend money upgrading their properties to modern energy efficiency standards, or be forced into doing it before they can re-let.

Particularly where properties are of the older type housing stock, which is a big proportion of UK rentals, older terraces and stone-built properties without insulated cavity walls, landlords will face challenges in bringing them up to standard economically.

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Part of the solution, as the Government sees it, is a radical programme aimed at connecting consumers with finance, allowing – in theory - energy efficiency home improvements to be paid for through the savings in energy bills of the property concerned.

Known as the “Green Deal”, the programme aims to overcome the ‘split incentive’ barrier in rented property by putting the onus of paying for energy efficiency improvements on the bill payer. Landlords should benefit long-term from improvements to their properties and tenants will enjoy a more energy efficient home, paid for through the savings in their energy bills.

Last week the Government kicked this off with the Private Rented Sector Energy Efficiency Regulations being laid before Parliament. Once confirmed and made into law, these regulations* will fulfil a duty in the Energy Act 2011, and will mean that:

1. From April 2016, residential private landlords

will not be able to unreasonably refuse consent to a tenant’s request for energy efficiency improvements where Green Deal finance or subsidies are available to pay for them.

2. From April 2018, private domestic and nondomestic landlords will need to ensure that their properties reach at least an E - EPC rating, or have installed those improvements that could be funded using available Green Deal finance or subsidies available to pay for them, before granting a tenancy to new or existing tenants.

Investing in their properties will benefit landlords as they will own more energy efficient properties that should be warmer and more attractive to tenants. But, the Government have made it clear there should be no upfront costs for Landlords to do this, and the regulations provide safeguards to ensure this is the case.

From 2016 new measures will be brought in to ensure private rental homes are improved but with incentives for early uptake, like a Cash-back Scheme to coincide with the launch of the Green Deal, so as to ensure private rentals are making energy efficiency savings well in advance.

LANDLORD INVESTOR March 2015

GREEN DEAL

The government claims that around 10 per cent of privately rented homes in England and Wales (4.2m) currently fall below the E rating. From April 1 next year, 2016, just 14 months away, tenants living in F and G rated homes will be able to request energy efficiency improvements, such as more insulation, and then over the next two years landlords will be legally bound to bring their properties up to an E-rating.

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GREEN DEAL

Although private landlords who fail to upgrade those to-let properties currently rated F and G to a minimum of E by 1 April 2018 will face being unable to re-let them, it appears that Houses in Multiple Occupation (HMOs) may be exempt.

Labour MP Alan Whitehead has told 24dash.com that “the failure to bring HMOs within the scope of this legislation will leave a substantial amount of the private rented sector unprotected against leaky, cold properties. I’ve recently been trying to amend the primary legislation to cover HMOs with a Private Members’ Bill but it’s a problem that will need urgently addressing by the next government.”

One energy supplier, Spark Utility, has calculated that around 380,000 non-HMO rental units currently fall into the F or G energy ratings, and these may cost an average of £9,000 to upgrade to at least an E. Commenting on the Department of Energy and Climate Change's announcement on the results of the consultation on minimum energy efficiency standards in the private rented sector, Richard Lambert, Chief Executive Officer at the National Landlords Association (NLA), said: "The Government has struck a delicate balance between making clear what is expected and ensuring that there is a realistic prospect of landlords being able to comply.

“Setting the standard at a sensible rather than aspirational level, allowing time to achieve it and granting exemptions if the necessary improvements cannot be funded through the Green Deal or other government subsidies means that these new regulations will not impose an unreasonable burden. Indeed, where a landlord is in a position to undertake improvements, there will be no good reason not to.

March 2015

LANDLORD INVESTOR

“The NLA actively encourages landlords to improve the energy efficiency of their properties because it's good business practice: a warm tenant is a happy tenant."

Landlords and tenants can find out if they are already eligible for Government support schemes, such as the Ofgem Energy Companies Obligation (ECO), an energy efficiency programme that was introduced into Britain at the beginning of 2013, by contacting the Energy Saving Advice Service (ESAS) today on 0300 123 1234 or visiting www.gov.uk/ greendeal. ⌂ *The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 http://goo. gl/0iZZrq Tom Entwistle is Editor of LandlordZONE.co.uk and an experienced landlord himself.

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GREEN DEAL

NEW ENERGY EFFICIENCY LEGISLATION FOR RENTED PROPERTIES: WHAT DOES THIS MEAN FOR LANDLORDS?

Charli Alderton - Thameswey Group

HAVING FOCUSSED IN RECENT YEARS ON IMPROVING THE ENERGY EFFICIENCY OF PRIVATELY OWNED HOMES, THE UK GOVERNMENT IS ADDRESSING THE NEED TO DRIVE FORWARD IMPROVEMENTS IN THE PRIVATE RENTED SECTOR - ALMOST 5 MILLION PROPERTIES. March 2015

LANDLORD INVESTOR

Following a recent consultation The Department of Energy and Climate Change (DECC) has provided details to the planned introduction of new legislation which gives tenants the power to request reasonable energy efficiency improvements and also puts in place minimum efficiency standards.

TENANT'S ENERGY EFFICIENCY IMPROVEMENT REGULATIONS In force by 1st April 2016, this will empower private domestic tenants to request consent for improvements that may not unreasonably be refused by landlords.

MINIMUM ENERGY EFFICIENCY STANDARD REGULATIONS In force by 1st April 2018, this will require eligible properties to be improved to a minimum E rating, however certain exemptions will apply.

The minimum standard may be increased over time.

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The energy market can be a minefield and often leaves individuals tearing their hair out trying to gain access to grants and finance. Therefore unlike any national funding project you will find, Action Surrey’s ‘Streets Ahead’ project, funded

by DECC, is offering substantial financial assistance in Surrey. Plus the team work closely with landlords and tenants, tailoring advice to help guide them through complicated processes and facilitate communications with Green Deal professionals until improvements are installed.

With a grant of £3,500, now is the time for Surrey’s landlords to prepare for the changes in legislation and avoid fines up to £5,000. If you are a landlord, why not get in touch and make the most of our team’s knowledge and expertise to make sure you are ready.

Action Surrey is leading the way and developing strong links with estate agents across the county. If you are a business in Surrey or elsewhere across the country, contact us to see how you can help to improve the energy efficiency of privately rented homes in your area.

For more information on Action Surrey and the Streets Ahead project please contact: Jess Putt on 01483 617760 or email jess.putt@thamesweygroup.co.uk or visit www.actionsurrey.org Action Surrey is operated by Thameswey (wholly owned by Woking Borough Council and partly funded by Surrey’s Local authorities) ⌂

Further information contact: Jess Putt, Project Manager, 01483 617 760 or email jess.putt@ thamesweygroup.co.uk

Mr Dunster a proactive landlord from Guildford was assisted by Action Surrey as he was keen to improve the energy efficiency, appearance and living conditions of the property and has since commented that “The house looks amazing and has completely transformed the property from a grotty end of terrace to almost resembling a new build home. Just by looking at the changes I can tell that the house will be warmer and combat the penetrating damp which plagues properties in the area.”

The transformation of Mr Dunster's property

BEFORE

AFTER

LANDLORD INVESTOR March 2015

GREEN DEAL

These changes in legislation will affect some private rented properties in Surrey; therefore Surrey’s Local Authorities are gearing themselves up through the services currently being offered

by Action Surrey. Action Surrey is Surrey’s free, impartial energy efficiency advice service supporting the private housing sector, on everything from insulation, to renewable technology.

Partly funded by Surrey’s local authorities, Action Surrey advises on local and national grants and manages a network of local, government accredited installers who, since April 2013 have installed over 1,000 energy efficiency improvements.

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YOUR PROPERTY PARTNER

HOW TO REPRESENT YOUR BUSINESS AT AN EXHIBITION Marie Parris George Ellis Property Services

POINTS TO CONSIDER BEFORE, DURING AND AFTER. 1.

Knowing where to spend your marketing budget is important. First you need to decide whether this exhibition is going to be right for your company, product/services and attract your targeted audience. Get the organisers to send you their exhibitors’ pack, list of attendee figures and other companies that are exhibiting or previously exhibited. Do your own due diligence, call a couple of the exhibitors (beware of competitor envy – so avoid them) hear their feedback, but also check out independent reviews on the internet.

March 2015

LANDLORD INVESTOR

2.

Once you have made a decision to commit start to organise. If this is your first time you may benefit from compiling your own exhibition pack only for staff use. This could contain information such as your charges, terms of business, benefits and features of products and services, a list of frequently asked questions and other things. It would be easy to update and could also have a dual purpose of training new staff attending the exhibitions as well as taking it with you on the day for quick/re-fresher reference. Make a list of your objectives and choose & match staff (2-3 maximum depending on size of the stand), that know the product and services well, but also have an understanding of the industry you are in, as well as having the necessary skills to interact with others in a friendly but professional manner.

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7.

Make sure in advance that you have a list of all items you need to take. This could include some of the following but not limited to; pens and pen holders/ writing pads/company brochures and perspex holders/business cards/enquiry form/ pop up banners/ laptop or IPad/promotional marketing products/ electrical extension lead/charger/sweets (great magnet for getting people near your table)/flat shoes for the ladies (a must have behind any exhibition table)/ flowers or something different. As a company when we are exhibiting, we always bring our trademark orchids they are a natural extension of our offices and our table stands out for the right reasons. What is the something different you could bring to the table?

Your modus operandi to all prospective clients initially should be with a smile! Do not do the “shop approach”. “Can I help you?” or (in the case of property exhibitions) “Are you a landlord” “How many properties do you have?” Or the awkward party guest approach and bombard with numerous questions.

Exhibitions are about interaction with people. Allow them to browse your merchandise, ask how their day is. Where possible encourage prospective clients to leave their details with you for follow up information.

This form should be well designed and ensure their details are not hanging around for others to see. I find it useful to add some personal notes after they have left the stand to the enquiry form, just to remind me of the person/what was discussed to assist when back in the office. The ethos of your company needs to be reflected. Be of service, genuinely help, share a tip, and give useful advice.

4.

Plan to leave in time to allow for unexpected delays on route, if you are going to be late inform the organisers (ensure you have their number handy). On the day, arrive in sufficient time to set up your stand.

You want to do so at least 20 minutes before the start of the show or as the organiser’s terms and conditions. Make sure all boxes and others things you do not need are put out of sight. Acknowledge your neighbouring exhibitors – as you never know if you may need their help to keep their eye on your stand for a few minutes. Be cautious of any paid items or valuables at all times.

8.

Enjoy the exhibition, have fun on the stand and make time where possible to introduce yourself and your services to one or two new exhibitors. You never know what joint ventures/reciprocal business you could do in the future.

“Exhibitions are long days and results are not always instantaneous – this does not mean they do not work”

5.

DO NOT: use your mobile phone at the stand or eat and avoid sitting down, (especially when prospects are in view). This non-verbal communication sends the wrong impression of you and the business and must be avoided at all times.

6.

Be proactive, attentive and professional.

LANDLORD INVESTOR March 2015

YOUR PROPERTY PARTNER

3.

YOUR PROPERTY PARTNER

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9.

Pack up in an organised way, ensure your valuable prospective client details are put somewhere safe.

Thank the organisers and where necessary give some constructive feedback – if they ask.

10.

After the exhibition follow up on all leads. Input their details onto your database, observe data protection rules and customer requests. Send any information requested - your time frame to do this should be the next day or within 3 days. How you communicate with your prospective client subsequently is all down to you.

All exhibitors have the same amount of exposure to all prospective clients – it is what you do with that data after that matters. ⌂

George Ellis Property Services can be contacted on:

WEST END 26 Dover Street Mayfair London W1S 4LY Telephone: 0207 763 7200

SOUTH LONDON 261 Beckenham Road Beckenham Kent BR3 4RP Telephone: 0208 778 9686 Email: info@georgeellis.london Web: www.georgeellis.london Twitter: @geproperty

March 2015

LANDLORD INVESTOR

Meet the team who make it happen.

W

ithout wishing to make everyone sound older than their years – our staff between them have many many years of experience and knowledge in the property industry.

We consider ourselves a family and everyone pictured here not only cares about their business but they are passionate and committed to growing and strengthening Jackson and Co. Our success and professionalism comes quite simply, from Team Work.

“The team that is going to win is the one that does its homework the best by studying its opponents.” - Imran Khan We have all done our homework, we have studied our markets and we know our competition, we work as a team and our service is second to none.

Hear what our customers are saying about us.

Having dealt with a number of previous letting agents we must say Jackson & Co have been a breath of fresh air. Finally, an agent who does what they promise, on time, at a reasonable price and to the highest quality. Jackson & Co managed our property as an “end to end” service using their large network of contacts to finish and furnish our flat to a high standard. They completely removed the usual headaches and stresses of buying a property to let. They had all our apartments ready to let before we had even completed! We would not hesitate to recommend their management service to anyone.

Simon and Alison

We have lots to look forward to this year and that is not just the prospect of working with many of you over the coming weeks and months or, helping you to secure a bright financial future through letting, there is of course much more:There are now thousands of students entering the UK to study each year and compared to levels recorded in 2004, the increase has been phenomenal. The sale of Social Housing will only enhance the need to rent and with First Time Buyers struggling to meet the

constraints of lending and the initial deposit required, this can only encourage the letting industry into a f avo u r a b l e p o s i t i o n .

Jackson and Co. offer a 'face to face' advisory service and are more than happy to provide a full insight into the successes of many of their landlords.

They will take you on a trip of the area, view a

spectrum of properties, meet tenants and sample how they conduct their day to day business. A light lunch or spot of dinner may also be on the agenda!

Gordon Ramsay Quote: “We are as good as our last meal.�

Suite 41, Weston Business Centre, Hawkins Road, Colchester CO2 8JX t // 01206 266 714

t // 01206 266 716

e // info@jackson-ps.co.uk

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GREAT PROPERTY TIPS

JOINT VENTURE PROJECTS PART II Susannah Cole The Good Property Company Welcome to the second of my articles on how to practically run a Joint Venture Project.

Last month, we covered prepping the team, pre deal, sourcing the deal, refurbishing and dressing the property, ready for sale. In this month’s article, we will cover the Sales Process, Managing Offers and Conveyancing and the all-important wash up and project analysis with your JV partner.

FOR PART TWO, WE START AT THE POINT OF PUTTING THE PROPERTY ON THE MARKET, EXCITING TIMES! To recap from last month, one way to move ahead with your property business is to work with Investors. They bring the cash, whilst you bring hard graft and expertise. I started by pulling money out of my personal home mortgage and investing that into my first two buy to keep projects. After that I would have been stuck if people had not taken an interest in working with me.

March 2015

LANDLORD INVESTOR

There are 7 important stages for you to consider when running a Buy to Sell project with a JV partner, last week we covered:

1.

2.

3.

4.

PRE DEAL DEAL PURCHASE PROPERTY REFURB POST REFURB AND DRESSING PROPERTY

This week, we are covering:

5.

6.

7.

SALES PROCESS OFFER IN & CONVEYANCING PROCESS POST SALE ANALYSIS

Remember that when entering into a partnership with another investor, the position you want to be taking is one of team mentality. You are working shoulder to shoulder; it should not be an ‘us and them’ situation.

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SALES PROCESS GREAT PROPERTY TIPS

I love meeting with the agents selling my house; I learn so much about the market place from them; they are the coal face, speaking to retail buyers daily and have great knowledge of the changing requirements of buyers, so I learn shed loads in this way. In an ideal world, I suggest you organise a fortnightly meeting with the estate agent in their office. It will help focus the estate agent’s delivery of viewings for your property – I found that when I had Tuesdays at 10am booked with my selling agent, they tended to call out my property over the weekend so they could give me great viewing numbers in our meeting – I guess they looked at their next week’s diary, thought, ‘sugar, she’s coming in’ and got on the phone so they had something to show me. I used to take one of my JV partners with me, and we naturally asked different questions; two heads are better than one!

In this fast moving market you’re unlikely to have many fortnightly meetings with your agent, as you should sell very quickly, so use them wisely as fantastic opportunities to learn what you did well/ badly. In addition to subtly encouraging call outs to book viewings, you also will gain great feedback on the viewings.

With any specific feedback you do get, use it to adapt your approach; for example having the heating on in winter helps to create a warm and homely feel; another area not to overlook is clearing the mail daily, this will help your property look and feel well looked after.

Fully prep yourself by exploring market stats such as £ sale per square foot, viewing numbers, and offers to viewing ratios generally in the area (swim with the tide). If your agent is professional, they will have industry specific programmes to track their progress in those areas, and likely their competitors’ progress too. For the geeks among us, it is superb data. That way you can learn what is happening right now in your market place, statistically, and also understand how your product (house for sale) is performing against the others on the market, and tweak to improve.

OFFER IN & CONVEYANCING Congratulations! You get an offer.

Once you’ve had an offer have a discussion with your JV partner of offers received and agree how to proceed together.

Remember your stats – 1 in 3 sales falls out of bed.

This is an opportune moment to remind your partner of this so they’re not disappointed if it does happen.

Be aware of last minute buyer shenanigans, such as not exchanging on time or them trying to drop the price. Prepare for them; discuss all this with your JV partner, what you would do in advance of these things happening, so you already have a plan of action.

Employ a cleaner to come into the property fortnightly – dead flies are not a sexy look for a property about to make you thousands of pounds in profit! Even though your buyers have agreed to the purchase of the property, they can be prone to getting buyer’s

LANDLORD INVESTOR March 2015

GREAT PROPERTY TIPS

24

remorse and often want to come back and see their house again; you need it to be as beautiful as when they first stepped through the door.

Just some practical tips here:

1. Use the same solicitor to sell your property that you used to buy it – they are up to speed on the property; they will have the legal paperwork, along with any energy certificates you are required to have.

2. Don’t expect anyone to push the deal through

except yourself so conveyance every day to help the process move swiftly. Have a Work In Progress folder so you know what your next steps are and continue to report to your JV partner frequently, and to support them deliver any admin needed.

POST SALE PROCESS You may think the stages finish after 6; you’ve sold it… but it’s not over yet! Your best investor is your current investor and it’s a great excuse for a cup of tea and a slice of cake. Here at TGPC we don’t need much of an excuse to bring out cake…

Review the project together; look at what went well and what could improve for next time. Review the principles of your Joint Venture agreement going forward and change anything that didn’t feel quite right for either of you. Set out your timeframe and budget for your next deals so you both know where you are. Remember once you have proven you can work well together your smartest step is to rinse and repeat.

Good luck, I hope you have great success!

March 2015

LANDLORD INVESTOR

MEET SUSANNAH, WHO WILL BE HOLDING SEMINARS VARIOUS LANDLORD INVESTMENT SHOWS THIS YEAR INCLUDING: READING - APRIL LONDON OLYMPIA - JUNE NORTH LONDON/HERTS - SEPT LONDON OLYMPIA - NOVEMBER

www.landlordinvestmentshow.co.uk If you want to contact us…..

Email: info@thegoodpropertycompany.co.uk Facebook: facebook.com/SusannahColeTGPC Enjoy our Free Property Videos on YouTube: www.youtube.com/user/goodpropertycompany Telephone: 0117 907 8793

Residential Sales

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Covering the Essex area with branches in Braintree, Chelmsford, Clacton on Sea, Dovercourt and Colchester, we offer sales, lettings, mortgages and property management solutions at a competitive fee.

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26

LANDLORD ASSOCIATIONS

THE TIMES THEY ARE A CHANGIN' Peter Littlewood Southern Landlords Association

WELL I HAVE TO START BY APOLOGISING TO BOB DYLAN FOR STEALING HIS 1964 LYRICS, BUT THINGS ARE CHANGING. March 2015

LANDLORD INVESTOR

ANTI SOCIAL BEHAVIOUR In my last piece I mentioned the recent (last Oct) changes against Anti-Social Behaviour (ASB) brought about by the Anti-social Behaviour, Crime and Policing Act 2014. This gives the ability to many people, including some social landlords (but not private landlords) to impose sanctions to control ASB. There has been a knock on for private landlords, in that there is new mandatory ground for the Section 8 notice. Ground 7a will be allowed if one of the following five conditions are met, a member of the tenants’ household or a person visiting the property has been:

1.

Convicted of a ‘Serious’ Housing-Related Offence;

2. Breach of a section 1 injunction in the new ASB Act;

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3.

• the initial case;

4. Dwelling-House is subject to a Closure Order;

It has now gone to the Supreme Court, and was heard on January 13th this year before 5 Lords.

They are yet to rule, but Westminster has already said they will take it to Brussels if they lose.

5. Convicted of Breach of a Noise Abatement Notice/Order.

This is a much distilled summary, and full reading of the grounds should take place if you intend to use it.

There are also new discretionary grounds:

14 AA: The tenant or a person residing in or visiting the dwelling-house has been guilty of conduct causing or likely to cause a nuisance or annoyance to the landlord of the dwelling-house, or a person employed (whether or not by the landlord) in connection with the exercise of the landlord’s housing management functions, and that is directly or indirectly related to or affects those functions

• a subsequent court of appeal.

The significance of this strange bed fellow?

If found for Hemmings, Westminster would have to repay the extra incorrect charge back to 2004.

This would almost certainly lead to claims for the repayment made for any Council License deemed to have been overcharged – including Additional and Selective Licensing - back to 2004.

It could cost Councils a lot of money!

In theory this could be used if the tenant refuses entry to the gas engineer to carry out an annual gas inspection.

14 ZA: The tenant or an adult residing in the dwelling-house has been convicted of an indictable offence which took place during, and at the scene of, a riot in the United Kingdom.

A potential significance of this is that it reinforces the SLA’s view that private landlords cannot be responsible for the ASB of their tenants, and the best they can do is to evict them. This makes a mockery of the principal reasons many Councils use as justification to bring in Additional and Selective Licensing –they claim it is to force private landlords to control the ASB of their tenants; but landlords aren’t allowed to.

LICENSING FEES And on the subject of licensing, there is a very important case going through our legal system at the moment – Hemming vs Westminster City Council.

Hemming own a licensable sex shop in Westminster, and has objected to the level of the license (£29k per year), particularly the way it is being used to enforce breaches. Hemming has so far won:-

LANDLORD INVESTOR March 2015

LANDLORD ASSOCIATIONS

Convicted of Breach of a Criminal Behaviour Order;

LANDLORD ASSOCIATIONS

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RETALIATORY EVICTIONS

SO FAR, SO GOOD.

Sarah Teather, a Lib Dem MP launched a private members bill July last year.

But it’s not gone away. The Lib Dems have managed to get support to re-introduce this, and at the beginning of February tabled an amendment to the De-Regulation Bill currently going through Parliament. And were successful.

The general reason for this bill was to stop a landlord evicting a tenant if they complained about a serious fault requiring repair. In theory this is very laudable; we none of us want sub-standard property in the Private Rented Sector (PRS), especially any with a Category 1 hazard, as defined in the Housing Health and Rating System (HHSRS). Additionally, no-one want landlords who not carry out their duty of care to rectify serious problems.

The problem – this Bill was badly drafted, and would have allowed a tenant to object to any Section 21 (S21) on the grounds of dis-repair, no matter how small; even if reported after the S21. This would have to be verified by the local Environmental Health Officer (EHO) to determine whether the claim was justified, and whether the fault had been rectified satisfactorily. The tenant then could make another claim, and the whole thing would start again – thus completely nullifying the use of a S21.

Additionally, all EHO’s are massively stretched, and inspections could take some time.

The problem is that it had official Government support, even though it followed a recommendation of the Communities and Local Government Select Committee that ‘changing the law to limit the issuing of section 21 notices might be counter-productive and stunt the market’. In his response to that Committee report, Eric Pickles said that ‘the government accepts the committee’s recommendation about retaliatory eviction, and agrees that legislation is not the preferred approach’.

It went to the House of Commons on Friday November 28th and was ‘talked out’ by two MP’s, i.e. they were able to continue debating so long that the debate exceeded the time allocated to it. Additionally it was a Friday, and most MP’s were not present, thus Sarah Teather could not muster 100 MP’s to vote to re-schedule.

March 2015

LANDLORD INVESTOR

There have been some concessions in light of the opposition to Sarah Teathers bill, and in the next issue of the Landlord Investment Magazine I will take you through what this might mean for you.

Oh, and did I mention that there is also a clause in the Deregulation Bill to reverse the need to re-issue Prescribed Information when a fixed term AST goes Statutory Periodic.

There’s a lot going on, and landlords need to stay on top of all the changes.

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30

LANDLORD ASSOCIATION

KEEPING IT LOCAL Peter Davis Eastern Landlords Association

AS WE DRAW EVER CLOSER TO THE GENERAL ELECTION ON 7TH MAY, WHAT WILL BE THE LEGACIES OF THIS CURRENT GOVERNMENT? One of the words that has now entered into almost everyday use is 'localism'. The Localism Act of 2011 has been a major piece of legislation, and like so many laws passed by our lords and masters has been met with a mixed response. Moving some of the decision making away from Westminster to be decided locally has merits, but has also caused more than a little confusion.

March 2015

LANDLORD INVESTOR

One such example of this for landlords is the change in discounts in Council Tax for empty properties.

Across England and Wales this had been six months, 100% discount for unfurnished properties. In almost every local authority area this figure has been reduced, and in some cases, including Colchester, the council has moved to no discount from the first day a property is empty.

No landlord I am sure, wishes to keep a property empty for longer than is necessary. The rent received is the income for their business, and with the best will in the world there will often a period between rents. This is often to ensure the property is up to standard, and if the outgoing tenant had been resident for some time, to redecorate and maybe refurbish. Penalising a landlord for this does not make sense. How can it possibly be economic for councils to send bills for ÂŁ3.53, as has been known for one day unoccupied?

One thing that we as The Eastern Landlords Association do our best to achieve is to provide information to all our members, not only on changes that effect all landlords, regardless of location, such as the possible Immigration Act, and Universal Credit, but also on local issues, such as how much it will cost them to have a property empty, and the continuing moves of councils to licence private sector landlords.

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As a much needed rest from electioneering, all landlords are invited to our free to attend Conference and Expo to be held the day after the election, Friday 8 May in Norwich, with a wide variety of exhibitors, and a conference in the afternoon, with an array of speakers, including a representative from the Department of Welfare and Pensions talking on welfare reform. Details to reserve a place can be obtained from the office. ⌂

We are a membership organisation, offering support and guidance to residential landlords on all matters relating to being a landlord. The annual cost for membership is only £70.00, and a one off joining fee of £15.00. HMRC have very kindly agreed that this is an allowable expense. As a special offer to all attending the Colchester Show, or reader of this issue of Landlord Investor, we shall waive the normal joining fee, and also offer to all new members a free entry onto Rightmove for a tenant find using our agent's facility – normal cost £49.00 for members.

Expanding your portfolio?

Looking to invest?

You simply cannot afford to miss out on the free and impartial advice Priory Estates have to offer when investing in the North of Essex. Our fully trained staff can guide you as we often have landlords looking to sell, with their tenants in residence. With houses from £120,000. We can then offer a fully managed service to ensure your investment keeps paying off.

Call Priory Estates today to find out more

LANDLORD INVESTOR March 2015

LANDLORD ASSOCIATION

In the Suffolk and north Essex area we have many members, and hold regular meetings for members and other landlords. In Colchester we meet at The George Hotel, High Street, Colchester, in Ipswich at the Novotel, Grey Friars, Ipswich, and in Bury St Edmunds at The Farmers Club, Nortgate Street, Bury. All are welcome at these meetings, and for more details please contact our office – info@ easternlandlords.org.uk, or 01603 767101.

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INDUSTRY SPOTLIGHT

THE FUTURE OF MOVING...NOW Angus Elphinstone - AnyVan With the average Briton moving house eight times in their lives and an increasing amount of private landlords springing up all over the UK, there is an undoubted need for an efficient and reliable service to facilitate moving. Step forward, AnyVan.

MOVING HAS OFTEN BEEN THOUGHT OF AS A LONG, LABORIOUS AND SOMEWHAT TEDIOUS PROCESS...

Calling numerous removal companies, spending hours looking for affordable quotes, packing etc. We all know the drill. What if there was another way? A way to make the whole thing easier.

Established in 2009, AnyVan was seen as the answer to this, by its founder and CEO Angus Elphinstone.

Angus, who previously ran and managed his own delivery and removals company, identified the gap in the market and sought to give customers the service they long desired.

March 2015

LANDLORD INVESTOR

The premise of the website is simple:

1. Customers list their delivery or removal require-

ments, whether this be the contents of a full house move or simply an old sofa they’ve brought from eBay, on AnyVan.com.

2. Transport providers bid to complete the custom-

er’s request, in an auction format, similar to eBay, but in reverse.

3. Customers are contacted as quotes come in, and

can view them as well as transport provider profiles, and choose who completes their job based on their preference of price and previous customer feedback.

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Due to its simplicity and the high-demand for a more refined moving process, it wasn’t long before AnyVan took off. By 2011, 5000 transport providers had registered and 100,000 jobs had been listed. AnyVan’s meteoric rise in popularity continued and in 2013 it expanded operations into France, Germany, Spain and Ireland. The following year, the one-millionth user had registered on the transportation exchange.

IS ANYVAN RIGHT FOR ME? From a landlord’s point of view, AnyVan is definitely an attractive proposition. If your tenants need a new sofa or mattress, you can easily list the pick up and drop off locations, and arrange delivery for a time, which is convenient for your tenants. All of this can be done from the comfort of your home, or even on the move, via the app, at little physical or monetary expense.

AnyVan also offers access to clearance professionals, an easy and affordable solution to get rid of a broken bed frame or fridge, for example.

Similarly, AnyVan could be a service, you as a landlord, chooses to recommend to your tenants. This may particularly be the case in student properties, as the low quotes available are an attractive proposition come the end of their 52-week tenancy.

AnyVan doesn’t only focus on the property market.

The website is also equally useful for businesses and exhibitors, especially those attending shows up and down the country. Collecting and carrying stands and props from destination to destination can be a chore, as many of you are well aware.

WHY SHOULD I USE ANYVAN? The main aspect that often puts people off using websites, is the fact that they believe they are just that, a website. This is where AnyVan differs. The company boasts a 20+ strong team of customer service representatives, on hand to provide over the phone assistance, 6 days a week and until 10pm on weekdays. This personal touch is what sets AnyVan apart from its competitors and allows you as the customer to get any additional information you need, or just peace of mind that your belongings are in good hands.

By using this service, you aren’t just saving money, but you’re also helping to combat rising Co2 levels. Presently, the transport industry accounts for between 20% and 25% of world energy consumption. By supporting and encouraging collaborative consumption, AnyVan, its customers and transport providers alike have been able to help save over 1 million KGs of Co2 each month, and in 2014 saved a record 28 million KGs of Co2.

Put simply, the benefits of using AnyVan far outweigh those associated with traditional delivery and removal companies. Everything you need is in one easy to use portal. Affordable quotes, access to thousands of reliable transport companies, exceptional customer service and support, the list goes on.

If you still have doubts about AnyVan, a visit to the company’s Trustpilot page, should put any lingering fears to rest. The company sits first in the relocation services category, with a ‘Trustscore’ of 9.7 out of 10.

AnyVan.com is the future of moving, and it’s here now. As the saying goes “Out with the old, in with the new…”

Using AnyVan, you could simply get your items picked up and dropped off, where and when you need. Additionally, due to the high volume of exhibitors at these events, who require essentially the exact same service, transport providers will be available for minimal costs, as you will be able to share loads.

LANDLORD INVESTOR March 2015

INDUSTRY SPOTLIGHT

Additionally, customers also benefit from reduced costs as many transport providers are travelling along a route, which passes their required destination. Essentially, this method of moving is beneficial for the customer and the transporter, as well as the environment.

34

LEASE EXTENTIONS

THINKING ABOUT

INVESTING IN

LEASEHOLD PROPERTY? Alex Greenslade - ALEP

Alex Greenslade is founder and Honorary Secretary of the Association of Leasehold Enfranchisement Practitioners (ALEP) and Chairman of Leasehold Solutions. Here, he outlines the basics every investor should know.

IF YOU ALREADY OWN, OR ARE CONSIDERING ADDING RESIDENTIAL LEASEHOLD PROPERTIES TO YOUR PORTFOLIO, IT IS IMPORTANT FOR YOU TO UNDERSTAND THE COMMON ISSUES THAT ARISE. Firstly, it is important to establish what a lease is.

The lease of a residential leasehold property is of a predetermined length (new build flats nowadays are usually sold with leases of 125 years) and these leases will eventually expire. The closer a lease gets to zero years unexpired, the more it reduces the value of the property. In a rising market, this is usually more than outweighed by the appreciation in the value of the property, whilst in a static market, a diminishing lease will gradually reduce the value of the property (all other things remaining equal).

March 2015

LANDLORD INVESTOR

80 years is also an important consideration. If the lease length is getting to around 80 years, this may need addressing immediately. A freeholder is suddenly entitled to more money the day a lease dips below 80 years, but this can be avoided if the right steps are taken. An extension needs to be obtained and this can be done in broadly two ways. You can either extend your lease individually, or you and the other leaseholders in the building can look to buy the freehold collectively or extend your individual leases on a group basis.

In recent years legislation has made it progressively easier for leaseholders to buy out the freeholders collectively (whereby each leaseholder has a lease and also owns a share of the freehold), extend their leases or replace the managing agents, among other things.

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HOW CAN I EXTEND MY LEASE?

On occasion it is possible to negotiate informally with the freeholder to extend a lease. They may agree to a smaller lump sum and an increase in the ground rent, but to shorter extension terms in return.

However, do be careful if you negotiate informally.

You should be careful about making sure the agreed terms represent good long-term value compared with the standard benefits of the Section 42 Notice and that onerous clauses are not inserted during any redrafting of the lease.

In addition, freehold acquisition means creating a new company to buy the freehold and in many instances it can be difficult to find owners willing to be directors of that company and to run its affairs.

There is considerable work, diplomacy and effort required to run the freehold company, and this is often underestimated.

HOW MUCH DOES EXTENDING MY LEASE OR ACQUIRING THE FREEHOLD COST? The valuation to calculate the cost of a lease extension or freehold acquisition (premium) is the total of three factors, which are worked out by a complex set of calculations:

1. Ground Rent: For most leasehold flats, ground

rent is payable to the freeholder. When the lease is extended or the freehold is purchased, this ground rent is cancelled. The freeholder must be compensated for this loss of income. Typically, the amount payable is 15-20 times the current annual ground rent figure, as a lump sum.

2. Reversion: After a lease has expired, the flat WHAT ABOUT IF I WANT TO BUY THE FREEHOLD OUTRIGHT? Many owners of leasehold properties prefer the option of outright freehold purchase in principle because it does not need to cost a huge amount more than an individual lease extension, depending on how many properties in the building take part.

There is also a romantic attachment to "owning" the property outright. This process involves serving a Section 13 Notice on the freeholder. Unlike a Section 42 Notice for extending a lease, leaseholders can participate in a collective freehold purchase from day one of ownership.

In practice, however, it is not always possible to complete the freehold purchase for a number of reasons. The main hurdle to surmount is that 50% or more of the owners in a separate building must agree

usually returns to the vacant possession of the freeholder. When the leases are extended or the freehold is sold, the freeholder either has to wait longer to get the property back or will never get it back and again must be compensated for this loss of capital.

3. Marriage Value: When a flat lease is extended

or the freehold is purchased, the market value of the flat increases. When a lease length falls below 80 years, the freeholder is entitled to 50% of this increase in value (less 1. and 2. above), to be paid up front as part of the premium. This is only payable on flats where the lease has fallen below 80 years.

Your professional fees are payable in addition to the lease extension or freehold acquisition premium and by law leaseholders must also pay for the freeholder’s legal and valuation fees.

LANDLORD INVESTOR March 2015

LEASE EXTENTIONS

If you have owned your property for two years you can extend your lease by serving a Section 42 Notice.

If successful, you will have the right to an extension of 90 years to the current term and your ground rent will be effectively reduced to zero. If you are interested in buying a leasehold property, you can negotiate a lease extension as a condition of the purchase, whereby the vendor will assign their twoyear ownership right to you.

to participate in the freehold purchase, in order for them to compel the freeholder to sell. However, not all of the other owners will necessarily have either the money or inclination to undertake the process.

LEASE EXTENTIONS

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ARE THERE ANY OTHER IMPORTANT FACTORS TO CONSIDER? Other issues can also have a further bearing on the value and marketability of a leasehold property, even if lease length is not an issue. It is important to do your research before buying a leasehold property to ensure you understand the extent of your commitment. ⌂

THESE ARE SOME OF THE QUESTIONS TO ASK WHEN RESEARCHING POTENTIAL LEASEHOLD PROPERTIES: • What is the freeholder like?

• Who is responsible for the maintenance?

• If a managing agent looks after the property, what are their fees?

• What is the annual service charge and what does it include?

• What is the shortest lease your mortgage lender will allow? - This can be 75-80 years, so if the current lease length of the property you are considering is close to this limit, you can probably use this as a point of negotiation with the vendor.

You should talk to an ALEP member, who will be happy to explain the options available to you during an initial telephone conversation.

ALEP, the Association of Leasehold Enfranchisement Practitioners, represents trusted and vetted professionals experienced in the residential leasehold sector.

To locate a vetted professional visit:

www.alep.org.uk Find ALEP on Twitter at: twitter.com/alepofficial

March 2015

LANDLORD INVESTOR

The UK’s leading regional land & property auctioneers with regular auctions throughout the year

Vacant residential

NOW COVERING ESSEX AND NORTH & EAST LONDON Residential investments

Entries continuously invited throughout the year Our next 5-day auction will be held on:23rd March - Kent & SE London 24th March - Essex and North & East London 25th March - Hampshire & Isle of Wight 26th March - West Country 27th March - Sussex & Surrey Catalogue available: Tuesday, 3rd March

Land - all types

Our early Summer auctions will be held on:5th May - 11th May (entries close 7th April) 15th June - 19th June (entries close 18th May)

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Tel: 0345 8500333 Email: auctions@ cliveemson.co.uk

Garages & Unique Lots

If you require professional friendly advice regarding any aspect of the auction process please contact us

cliveemson.co.uk

38

COMMERCIAL

SAVING MONEY THROUGH ENABLING WORKS PACKAGES Alan Knight - Randall Contracting Randall Contracting are a specialist Enabling Works company who work with property companies, developers and facilities managers in London and the South East.

ANYONE INVESTING IN LAND OR PROPERTY FOR REDEVELOPMENT WILL SAVE THEMSELVES SUBSTANTIAL AMOUNTS OF MONEY IF THEY EMPLOY THE SERVICES OF A COMPANY LIKE OURS TO CARRY OUT A SEPARATE ENABLING WORKS PACKAGE. March 2015

LANDLORD INVESTOR

39

DEMOLITION IN URBAN AREAS

the work required to get a building or a piece of land ready for the construction phase of a project.

Many local authorities are redeveloping a lot of deprived inner city sites to construct new housing.

These sites are typically old community halls, residential garage developments, tower blocks and disused Council offices. Randall Contracting work with a number of local authorities on this sort of project and working with the local community is essential to ensure that these projects run smoothly. For this purpose we employ a community liaison officer to establish contact with all members of the community and alleviate any fears that they will have living near a demolition site especially if they have children.

THIS INCLUDES FULL OR PARTIAL DEMOLITION OF BUILDINGS AND STRUCTURES • Façade retention • Stripping out of fixtures, fittings, internal walls and machinery • Investigation and trial holes • Removal of staircases and lift shafts • Clearance of underground obstructions and hazardous waste • Disconnection and provision of services • Signage and provision of hoardings and security fencing • Basement excavation and construction

WORKING IN OCCUPIED BUILDINGS We specialise in partial demolition of occupied office buildings where it is important that the tenants in the building are able to continue with their work without major disturbance. We do this by using specialist equipment, unique working methods and devising strict work programmes which include noisy and quiet work periods.

Liaison with tenants is very important to ensure that clear communication channels are in place and that if we are causing them any inconvenience we are aware straight away.

ENVIRONMENTAL IMPACT OF DEMOLITION Re -cycling of materials is very important in the demolition industry and Randall Contracting target and regularly achieve 96% of materials from one of our demolition sites for recycling. As a company we are constantly reviewing our working practices and procedures to ensure that with any project we reduce our environmental impact. We have invested in Screeners and Crushers to allow materials to stay on site for the redevelopment phase. This dramatically reduces the amount of lorry movements to and from site which is only beneficial for the local community and environment.

We also collect rainwater for use with our dust suppression sprays and cleaning of vehicles.

ACCREDITATIONS Before anyone lets a company demolish a building or make major structural alterations they need to know that the company they are using has the right credentials. Randall Contracting are an accredited member of the ‘National federation of Demolition Contractors’. This means that we are audited regularly on Health and Safety and working methods. All our staff have to be trained by the NFDC to maintain our accreditation. ⌂

LANDLORD INVESTOR March 2015

COMMERCIAL

The term ‘Enabling Works’ is not always understood.

It means in the simplest term that we carry out all

42

FINANCIAL

INVESTOR OPTIONS MULTI LETS & HMOS Karen Bennett Sales and Marketing Director, Commercial Mortgages Shawbrook Bank

THERE ARE MANY TYPES OF PROPERTY INVESTORS HOLDING DIFFERENT AMBITIONS AND EXPECTATIONS ACROSS THE CURRENT UK MARKETPLACE.

For investors seeking greater returns by investing in more properties, you will invariably reach a point where the loan rates charged increase at a pace to match the growth of the portfolio – this is often at a point where mainstream lenders stop feeling comfortable and price credit accordingly, or disengage from lending altogether. With higher rates comes an appetite to look at and acquire property that can provide greater returns on the investment than the more traditional residential BTL. This leads to different property types being considered - perhaps multi let units such as HMOs or student accommodation which give better yields, albeit often at the expense of more legal and set up fees as well as on-going management time and maintenance costs.

At one end of the spectrum lies the single residential property which remains an attractive opportunity for investors seeking to diversify their retirement planning and move away from more traditional savings. The purchase of individual single units can be funded through a variety of main stream lenders who offer very competitive loan rates given the current low bank base rate. If the client has relatively limited property investment ambitions then such applications tend to fly through with no significant roadblocks and a good return on investment can subsequently be made. These investors often view such activities as a part time strategy to be run alongside an alternative (and primary) source of income and employment.

However specialist shared properties such as these are not always the answer. They are subject to stringent licensing from local authorities which would only seem set to increase, after all, regulation rarely lessens. With increased regulation comes increased cost and it doesn't take too vivid an imagination to see local authorities finding an increased source of revenue via multi-unit landlords.

March 2015

LANDLORD INVESTOR

Today's property investors have found an alternative which has the benefit of versatility and should be given due consideration in the form of the multiunit property on one title. These types of property are becoming a viable alternative investment for experienced landlords and come in many shapes and sizes, fitting various types of property investors.

43

Speculative investors & developers often look for suitable property that has the benefit of sufficient additional land where either the property can be extended to form additional space such as a ”granny annex” or even an entire new dwelling/s. With sufficient vision, the investor may choose to purchase the property prior to obtaining planning permission to give more chance of realising an uplift in both value and rental yield. This style of project where the property is bought to unlock its potential will require the investor to have previous experience of similar projects and if this can be shown then we really enter the domain of the specialist lender.

Shawbrook being one such lender will have finance options to suit most situations and would not shy away from multi units held on one title. So in a situation where the investor is looking to take advantage of a favourable site, Shawbrook would advance short term funding while the client seeks planning permission. When granted, the client may then seek development funding depending on the situation – providing the desired exit for the lender.

Once the works are complete, Shawbrook could take out the development funding with either a short term or a term loan depending on the owners plans.

Either way Shawbrook would support the investor through the project and facilitate either the onward

If not then the landlord who initially took the time and made the investment to convert a large house into several self-contained units rather than an HMO would reap the rewards of having a more versatile property for maturing families, and could ultimately split the units from the main title for individual sale as required. Similarly the provision of a separate annex to an established property would facilitate additional rental yield and the property becomes more desirable as families look to purchase property which can provide separate accommodation for the generations e.g. an elderly relative or a younger member looking to find independence close to home There are more options than ever for property investors at present with single units, HMOs, Student Lets and multi units held on one title. The one title option has excellent versatility, it benefits from lower regulation requirements and the ability to sell piecemeal should the need arise. It is ideal for those investors with long term vision for a property and the commitment to execute this with the help of the necessary specialist. The higher conversion costs are to be considered but overall this is a profitable option for many and we are starting to see this more and more across the lending spectrum. ⌂

Please contact us for further information: T: 01277 751 112 E: pi@shawbrook.co.uk “THE OVERALL COST FOR COMPARISON IS 6.2% APR. THE ACTUAL RATE AVAILABLE WILL DEPEND UPON YOUR CIRCUMSTANCES. ASK FOR A PERSONALISED ILLUSTRATION. ANY PROPERTY USED AS SECURITY, INCLUDING YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. A BROKER FEE MAY APPLY.”

LANDLORD INVESTOR March 2015

FINANCIAL

sale with the splitting of titles or retention through long term loans. The key here is adaptability and versatility. For instance the HMO is very much a popular choice nowadays as the demographics in the UK regarding home ownership continue to shift. Young individuals unable to afford to purchase are seeking this style of accommodation more than ever before, but would they look at this as a long term solution that would accommodate a family of their own?

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EXPERT ADVICE

PROPERTY INVESTMENT EDUCATION & TRAINING: FREE - LOW COST - HIGH COST HIGH VALUE - YOUR CHOICE! David Humphreys - Property Investor Online

LAST MONTH I WROTE ABOUT, THE GREAT DEBATE, WHETHER YOU SHOULD, OR, DO YOU NEED TO, BUY PROPERTY INVESTOR TRAINING WHEN THERE IS SO MUCH INFORMATION ON THIS SUBJECT ON THE NET... ...plus there is a plethora of companies who will send you free knowledge on almost any topic that comes under the heading of Property Investor Training.

I thought that I had made a mistake in possibly "resurrecting" a debate that had taken place some years ago and was now probably old hat, but a February thread on a Facebook Forum, “UK Property Traders” clearly indicated that the debate continues, in fact continues with some passion.

March 2015

LANDLORD INVESTOR

A Property Traders member, Chris Grennan, posted.

"I am starting out in property and am wondering if anyone has been on the Martin Roberts (HUH) 3-day course”, that he had been to a free 2-hour introduction seminar and was wondering whether it was a good idea to spend £997 on the Martin Roberts 3-day. He also said that he presumed, erroneously, that they wouldn't try and sell him further courses at the end of the 3 days. It became apparent that Chris was not aware that “Martin Roberts” is one of Tigrent's stable of brands A simple question from a novice investor looking for help and advice on one of the more popular & informed FB property investment forums, which is why these forums are such good value in providing free help, advice & knowledge for all investors whether "thinking about it" through to "very experienced".

The only problem with this help, advice & knowledge is that very different opinions, even "facts" are expressed and referred to, some of which are contradictory, so novices will have difficulty sorting the right from wrong, good from bad & expert from wannabe.

Unfortunately, getting property investment “wrong” can prove very expensive on a number of fronts, variable interest rates & sales/rental values, property & tenant legal issues plus your credit rating at risk over reductions in budgeted cash flow.

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EXPERT ADVICE

Assuming that my "great debate" was now old hat, I expected to see maybe 20 or 30 posts possibly 50 with a following wind. So the reaction of UK Property Traders members was totally unexpected. The thread started on February 8, ended on February 13, and between those dates, there was 414 posts, most of which had remained on, or close to, topic with little of the bitching which unfortunately so often occurs on these open forum debates.

If you want to read through some or all of the posts, and I would recommend doing so, simply go to UK Property Traders on Facebook and search "Chris Grennan". You can also search on my name as I made numerous posts in this debate, so the thread is in my list of FB Property Traders’ appearances.

Through the Property Traders thread a number of trainers were mentioned as being alternatives to Martin Roberts, as I've said a Tigrent brand. Mention of Tigrent triggered off a number of other, competitive, training companies who joined the debate.

Because trainers were mentioned throughout this 414 post thread, I decided to run a poll on who was the most popular trainer and started on February 11 listing the 7 trainers, already mentioned in Chris' thread.

Subsequently, the list of trainers was increased to 18 by other forum members and included two surprise options, "Self Education" & "Facebook Forums", which are effectively one and the same, as both come under the "Free" or DIY heading. In any event they were both left in the list with the following results.

My poll thread attracted 76 posts, even though it was running concurrently with Chris Grennan's thread, and when I finally closed the poll on February 15, 1st was "Self Education" with 62 votes, 4th was “Facebook Forums” with 29 votes, overall total for the DIY brigade 91 votes.

Number 2 in the poll with only 41 votes, 21 votes behind first-place and less than half the combined DIY brigade total, was the well-known trainer & investor Glenn Armstrong.

So it would appear that the arguments put forward by the DIY brigade had been sufficiently persuasive/ deeply embedded to take the day.

As this article is about education & training, you should take the time and go through the poll posts, along with the posts in Chris Grennan’s thread, because you will be able to read the voluntary views, as against testimonials, of a number of investors ranging from "thinking about it", which I think applies to Chris Grennan, through experienced investor not involved in training and who probably would not appreciate being mentioned, to experienced investors who are involved in training such as Rob Moore (Progressive), Mark I'Anson, (Himself & Progressive), Mark Lloyd, Susannah Cole & Paul Ribbons.

I mention these trainers in poll order, only because they teach a variety of different strategies and all were in the top 10. For example, whilst Progressive’s Training is multi-topic, Mark I'Anson concentrates on "Dominating Your Ground", the title of his book, Paul Ribbons’ niche is buying distressed property on the street and selling/flipping through the auction rooms, completely avoiding buy to let. Paul's book on his niche is "Hustle Your Way To Property Success", both are good reads.

LANDLORD INVESTOR March 2015

EXPERT ADVICE

46

Now I must stress that my poll is neither a guide to "good" trainers or "good" strategies and I think it's fair to say that there are as many, if not more, good trainers outside the list than in, which brings me to the advertorial part of this article.

SO HOW DO YOU FIND YOUR WAY THROUGH THIS MINEFIELD?

My view is that all investors, regardless of their experience, should take advantage of the education & training that is available in all 3 sectors, Free, Lowcost, High-cost + All High-value.

1. Go online with PIO, view the media and decide

My aim, with Property Investor Online (PIO) is to achieve that objective, whilst placing the emphasis on Free & Low-cost, and always High-value.

course should include the basics of a number of different strategies and ideally be completed before you finally decide on your strategy.

There are literally hundreds of Free High-value Property Investment Videos & Reports on the net with greater than 65% educational content (PIO Listing Criteria). We have now uploaded over 150 selected videos (70 hrs) in 12 main categories on Property Investor Online.com, all have been Reviewed, including time spent on intro, bio, content, promo, QA’s, then Categorised, Scored & Tagged.

The majority of these videos have been produced by the trainer/company for promo purposes, which is your gateway into Low-cost/High-value education and training.

Multi-topic trainers mostly sell their training in packages of courses covering “N” different topics and it is these packages, which are generally "High-cost", partly because of the number of courses and high associated (selling & marketing) costs + variable (promo) ticket prices.

By comparison single-topic niche trainers with practical niche experience & lower overheads are less expensive (Low-cost), making their training both high quality & high value.

March 2015

LANDLORD INVESTOR

Through Property Investor Online.

on Your Strategy.

2. Buy A “Foundation” or “Basics” Course. This

A) PIO offers a high quality, in depth “Foundation

Course”, completed by 1,000’s of students since 2002, and now available online so you can – Learn What You Need, At Home, At Your Own Speed, To Your Own Timetable and with Online Mentoring/ Support.

3. Buy one, possibly two complimentary niche

trainings, “fit for your purpose” (your strategy), that you understand, identify with, will enjoy and will deliver your aims & objectives. PIO can even assist you in making this choice because we know the expert niche trainers. ⌂

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advertising • branding • brochures • design for print flyers • leaflets • pop-up stands • roller banners stationery • web design

for all enquiries about design work, print or digital email craig@landlordinvestmentshow.co.uk

LANDLORD INVESTOR March 2015

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