Wednesday, May 23, 2007
Category:
Home Improvements
According to Alliance & Leicester Mortgages, one in ten landlords have sold a letting property in the last two years and a quarter have made over 30% returns on their letting property.
It seems that first time buyers have been taking advantage of landlords who have sold property in the last two years. Alliance & Leicester’s research has shown that although there is the ongoing concern that the increase in buying-to-let is pushing first time buyers out of the market, 42% of new homeowners bought landlord-owner properties. Nearly a third of these properties have been sold to existing or new landlords.
Alliance & Leicester Mortgages research shows that overall, one in ten (10%) landlords sold a letting property in the last two years.
Jeremy Claridge, Head of Specialist Mortgages at Alliance & Leicester comments: “It is heartening to see that first time buyers are benefiting the most from the sale of buy-to-let properties with nearly half having bought from a landlord. With many believing the boom in buy-to-let has priced first time buyers out of the property market, the research highlights it is not all ‘doom and gloom’ for first time buyers. Instead, they are the group gaining the most. The research paints an optimistic view of the buy-to-let market with all but two per cent of landlords, reporting they have achieved capital growth on their properties when sold in the last two years. While this upbeat picture might be true of times now, recent figures have shown that house prices are slowing so landlords would do well to ensure they plan carefully for all eventualities.”
The average ownership tenure of the landlords, who sold in the last two years, was three and a half years. A quarter of landlords made a return of more than 30% on their letting property in this time. Only two per cent of these landlords reported a loss on their property.
............................................................................................................................................................
Those first time buyers taking advantage of landlords selling on their properties, might find that it is in need of home improvements or repairs. With property value potentially increasing from day one, first time buyers could consider a secured loan to finance vital improvements. Decorating or painting a room could add instant character and make new homeowners feel right at home in their new property. New furniture or a large project such as an extension for a growing family could be financed with a secured loan. A
home improvement loan can be made payable over a term to suit the borrower from 5 to 25 years. Secured home improvement loans may also be used for more adventurous projects such as extending, loft conversions or adding a conservatory.
