Thinking about buying, renting or letting a property in London? Book now calendly.com/danny_valencia/schedule-call?month=2023-08 Recommended Videos: Short-Term Rental Crisis: Must-Know for Landlords! - ua-cam.com/video/_bHV9O1qdDo/v-deo.htmlsi=lz7Fi6Ga6IA_Igbk
0.7% of the housing stock is rather a lot. Bear in mind 2 things: (1) That short-term rentals are concentrated in certain areas. It's not representative to take an aggregate of the whole country; (2) Price is determined at the margin. What percentage of all housing stock changes occupant over a given year? Housing occupancy is generally very stable and most houses are long-term owner occupied. If you want to see the effect of Airbnb, you have to consider short-term rentals as a proportion of the available, or liquid, housing stock only, since someone sitting in the same house for 20 years has no effect on the market.
There is no end of Airbnb in the UK. Decisions to exit also depend on returns from other forms of investment not just regulations. They aren’t great either especially after increased taxation. I have to say l completely agree with taxing income from non productive investment. We have had too much wealth from rent taking rather than productive investment.
So one presumes he must have changed mortgage product!? If not he would be committing mortgage fraud. A standard BTL mortgage normally requires an AST. Any variation of this a request has to be made to the lender. The lender is under no obligation to convert the mortgage product. Some lenders may give short-term permission to use Airbnb.
@tundeuk Mortgage fraud is endemic among LL. It enables them to conduct fraudulent letting activity. If the lender finds out theg could xall in the loan Ultimately, it could bankrupt the LL
@ Depends, the LL may have enough cash to pay of the loan entirely if the Mortgage company has any complaints. So it’s on the interest in the Mortgage company to keep ssshhh and turn a blind eye.
@tundeuk Oh! I'd totally agree that most lenders prefer to let let the proverbial sleeping dogs lie! However mortgage fraud is still fraud The new LL portal should stop it as mortgage details will be available etc.
Thinking about buying, renting or letting a property in London? Book now calendly.com/danny_valencia/schedule-call?month=2023-08
Recommended Videos:
Short-Term Rental Crisis: Must-Know for Landlords! - ua-cam.com/video/_bHV9O1qdDo/v-deo.htmlsi=lz7Fi6Ga6IA_Igbk
The UK government is doing the right thing by not letting landlords deduct mortgage as expense from short term rentals.
Oh no, short term rental landlords will make £30k a year instead of £50k. Poor them....
0.7% of the housing stock is rather a lot. Bear in mind 2 things: (1) That short-term rentals are concentrated in certain areas. It's not representative to take an aggregate of the whole country; (2) Price is determined at the margin. What percentage of all housing stock changes occupant over a given year? Housing occupancy is generally very stable and most houses are long-term owner occupied. If you want to see the effect of Airbnb, you have to consider short-term rentals as a proportion of the available, or liquid, housing stock only, since someone sitting in the same house for 20 years has no effect on the market.
There is no end of Airbnb in the UK. Decisions to exit also depend on returns from other forms of investment not just regulations. They aren’t great either especially after increased taxation. I have to say l completely agree with taxing income from non productive investment. We have had too much wealth from rent taking rather than productive investment.
So one presumes he must have changed mortgage product!?
If not he would be committing mortgage fraud.
A standard BTL mortgage normally requires an AST.
Any variation of this a request has to be made to the lender.
The lender is under no obligation to convert the mortgage product.
Some lenders may give short-term permission to use Airbnb.
I doubt anyone follows that rule.
@tundeuk Mortgage fraud is endemic among LL.
It enables them to conduct fraudulent letting activity.
If the lender finds out theg could xall in the loan
Ultimately, it could bankrupt the LL
@ Depends, the LL may have enough cash to pay of the loan entirely if the Mortgage company has any complaints.
So it’s on the interest in the Mortgage company to keep ssshhh and turn a blind eye.
@tundeuk Oh! I'd totally agree that most lenders prefer to let let the proverbial sleeping dogs lie!
However mortgage fraud is still fraud
The new LL portal should stop it as mortgage details will be available etc.
@@paulgbar666They will likely find a loop hole, I.e let to one person who then sublets as a HMO.
What's "formally rented"? Meaning that those people are selling their houses with a sitting tenant with a contract?