Podcast Summary
Seeking advice for property investment dilemmas: Consider all options carefully before making major decisions about property investments, seek advice to maximize potential returns and minimize losses.
Property investors like Pauline and Jeremy, who are facing challenges with selling or remortgaging their properties, can turn to resources like Ask Rob and Rob for advice. In today's episode, Pauline shared her dilemma about a property she owned in rural Scotland that wasn't selling and wasn't generating rental income. She was considering drastically reducing the price and taking a loss or holding onto the property and renting it out. Rob and Rob offered some suggestions for Pauline to consider. They emphasized the importance of understanding the fundamentals of the area where the property was located and considering the long-term potential of the market. They also suggested looking into creative financing options or even partnering with other investors to help offset the costs. Ultimately, the decision was up to Pauline, but the hosts encouraged her to weigh all her options carefully before making a move. They reminded listeners that every situation is unique and that there's no one-size-fits-all answer when it comes to property investing. So, in short, the takeaway is that property investors can benefit from seeking advice and considering all their options before making major decisions about their investments. Whether it's selling, remortgaging, or holding onto a property, taking a thoughtful and informed approach can help maximize potential returns and minimize losses.
Consider renting out your unsold property: If your property isn't selling, explore the rental market and repurpose marketing materials. Potential price reduction or location as holiday home may help.
If your property isn't selling, you might want to consider testing the rental market as a potential alternative. The marketing materials you've already created for selling your property can easily be repurposed for a rental listing. If there's no interest in the rental market, then you can revert back to trying to sell. However, you might be pleasantly surprised by the demand for renting your property. Another observation is that your property might be priced too high. Even if you paid a high price for it, the market conditions might have changed since then. If your property isn't selling, it's likely due to either being overpriced or poorly marketed. If you're confident in your agent's marketing efforts, then it's likely the issue is price. If you're able to afford a reduction, it could be worth considering. Additionally, consider the location of your property. If it's in a desirable area, it could be worth exploring the potential of renting it out as a holiday home. This might require some additional management, but if you can find an agent to help, it could be a viable option. Ultimately, there's no silver bullet solution to selling a property that isn't gaining interest. However, considering the rental market and re-evaluating your property's price and marketing could lead to new opportunities.
Challenges in remortgaging properties with cladding issues: Property owners with cladding issues may need an EWS1 form for remortgaging, but obtaining one is complicated due to a shortage of inspectors and reluctance from management companies to pay. Check if a form already exists, or engage a qualified inspector to obtain one.
For property owners like Jeremy in Hertfordshire, remortgaging or refinancing properties with cladding issues can be a challenge due to the requirement for an EWS1 form. These forms, which confirm the safety of the building, have become a necessary hurdle for lenders, even for buildings below the usual height threshold. However, the process of obtaining these forms is complicated due to a shortage of inspectors and reluctance from management companies to bear the cost. Therefore, property owners should first check if their buildings already have an EWS1 form. If so, they can present it to their lender to smooth the remortgaging process. If not, they may need to engage a qualified inspector and work with their management company to obtain one. This process can be costly and time-consuming, but it's essential for securing a mortgage or refinancing. Listeners interested in more details should refer to the most recent market update podcast.
Ask management about lift plans or take action with other leaseholders: If your block lacks a lift, pressure management or band together with leaseholders to install one to avoid refinancing delays
If your management company does not have plans to install a lift in your block, you may need to take action. You could ask the management company if they have any plans, as they might be planning to install one soon. If not, you may need to band together with other leaseholders to put pressure on them to make it happen. This issue is affecting thousands of blocks across the country and is likely to become more pressing as more people become aware of it. Your refinancing plans may need to be put on hold until a solution is found. Remember, you are not alone in this situation. Stay tuned for more information on this topic, and for more real estate insights, join us on The Property Podcast and Ask Rob and Rob.
