The Accidental Landlords

August 5th 2014
By: Jon

In an interview in the Financial Times, landlords Fergus and Judith Wilson explained that they became landlords almost by accident.

During the 1990s, buy-to-let mortgages provided easy access to money for the Wilsons who acquired high loan-to-value, interest only mortgages.  As house prices began to rise, they were able to increase their portfolio by purchasing two and three bedroom houses, remortgaging time after time, using the equity to buy more properties.
Mr Wilson said his maths and science background helped and clearly has enabled them to benefit from a rising market.  “The market has not peaked, it will continue to rise,” he believes, “although Carney’s efforts will slow it down, I don’t expect it to fall.”

The loans now amount to just under 60% of the value of the properties – the rental income for this year is in the region of £12m. 
The investment has not been without difficulties and whilst the Wilsons had factored in 10% for late payments in their cash flow planning, in late 2008 there were nearly 40% of tenants who could not pay their rent. 

Mr Wilson explained that it is the rise of prices in the last five years that has enabled them to sell at this favourable time of the market.  He plans to continue his writing of children’s books and look after the lawn of his house in Maidstone once the portfolio has sold.