Launch At Seminar – London Property 15% Below Current RICS Valuation
Dear Investor,
During the past 6 months we have seen the general mortgage market open up with new lenders and products coming to the table as competition slowly returns. Increasing loan-to-values, lower fees and more competitive rates have enticed new buyers, investors and those wishing to remortgage on better terms. This is welcome and as the economy unwinds from the credit crunch and confidence returns, the availability of credit, albeit on tighter terms, will return.
Markets have memories, but the longer the timeframe the less strong those memories are. In the middle of an economic crisis, banks and financial institutions are no different from other businesses; survival and cost cutting are the only games in town. But once over the immediate hurdle of business survival, shareholders pressurise boards to increase value, dividends and growth in earnings. Banks make money by lending and charging interest. They have done since time in memorial and this will not change due to an economic blip in the first decade of the 21stCentury. The World has not changed, but is only going through a temporary readjustment. In terms of “market memory” evidence suggests that we repeat the same mistakes on a 14-16 years cycle!
Returning to the investment market, MoneyFacts reported that buy-to-let (BTL) is moving forward as the number of mortgages available continues to grow.
This time last year there were 45 active lenders in the sector, today there are 54. Lenders returning to the BTL sector include Paragon and Darlington Building Society. MoneyFacts also reported the number of mortgages for landlords with a 20% deposit have increased threefold in the last year, after dwindling away to virtually nothing the year before.
A recent report from the Council of Mortgage Lenders supports this view:
“While buy-to-let lending still remains very subdued and ongoing challenges remain, in the second quarter of 2010 the number of buy-to-let mortgages taken out was 24,900. This was 13% up on the 22,000 in the first quarter, and 15% higher than the 21,600 in the second quarter of 2009.”
The time to invest in property is when finance is more difficult to obtain, sentiment in market is negative and developers and banks want cash today, not tomorrow.
Tomorrow night at our seminar in London, we will be showcasing a distressed development in the North of England. The key features are:
- Prices discounted at 25% below a current and realistic RICS valuation.
- 7.4% yield.
- Properties are below £100,000 each.
- It’s a high quality conversion of a period building.
Further details about this scheme will be available tomorrow.
15% Discounted London Property
Additionally, Bold Spirit Distressed Assets division will be launching a small number of strongly discounted, high yielding apartments within striking distance of Liverpool St Station, London. Quality stock at a genuine discount in London is difficult to obtain and we are excited to be able to offer this to our clients.
Obtaining Finance
Bold Spirit Financial Services has extensive experience in obtaining finance for property investors. We will be presenting on options for raising finance from existing equity and also explaining the very latest buy-to-let mortgage products. You will have the opportunity to speak with an expert advisor concerning your own personal circumstances.
I look forward to meeting you tomorrow night for the seminar and then more informally in the bar afterwards.
To reserve a place at this free Distressed Assets seminar, please click here.
Best wishes,
Dominic Farrell
