However, what I did notice is the amount of accounts where if I withdraw my money early, or I try and make several withdrawals within a year there are “penalties” to be paid.  What concerned me about some of the penalties was the fact the bank could charge me more interest than what I had received in the first place – thus (in their words) “reducing my capital balance”. So in other words, if I “saved” my money with the bank, but I wanted it all back, or I wanted it back in smaller amounts, then I could end up in the situation where I would have less money than what I had saved in the first place.

I was alarmed – how could me saving money end up costing money?

So I started reading the T&Cs.  I’ll confess – I usually just read the headlines and the interest rate the bank is paying – not the small print.

But, this penalty stuff and the fact I may end up with less money than what I had deposited in the first place worried me and so I started to read the small print.

The small print was scary.

The small print really made me wonder about the safety of your savings if you have borrowings with that bank.

The small print of the Aldermore savings account says:

13. Set-off

13.1 We may use any funds deposited with us to repay or reduce any debt which you may have with us (subject to any borrowing terms you agree with us) either in your own name or jointly with anyone else as borrower, guarantor or in any other way. We may do this without giving you prior notice, but you will be notified immediately after we have done this.

 

Now if you’ve borrowed money from the bank, it is usually best practice to pay it back – it was their money to start with.  But, in this current climate where banks can do what the hell they want, without any regard to anything, it just got me thinking…

This clause states – Aldermore can use any funds you have deposited with them to repay or reduce any debt you may have with them…either in your own name, or that you may have with anyone else…or in any other way.

To be honest, the clause may as well read: Aldermore can use any funds you are stupid enough to “save” with us for anything we feel like.

Because, quite frankly, that’s what the clause means. It means you give Aldermore your savings and they will pay you a paltry interest rate – but when they feel like it, they will rape your savings account for anything and anyone and don’t think they have to tell you before they do it. No. But Aldermore will notify you after they have taken your money. Immediately after they have taken your money.

Now maybe it’s just me, maybe it’s unfair to think that banks can do what the F**K they like, but given I have been shafted by Skipton, and Bank of Ireland, it’s little wonder I don’t trust the banks.

And this has really got me thinking: just how safe are my savings in the hands of the banks?

Now I have had my eye on this building for years, but the landlord (a big commercial owner based in London) had previously had the building with a big commercial agent and I know talks were ongoing with a potential client for the past year.  But now things have changed, the talks have reached an impasse and the landlord needs help for his empty town centre building.

As a letting agent, I know my place in the pecking order. Gorgeous Homes are not big commercial players in the sector, and we’ve only been acting in the commercial sector for just over a year.  However, in that year I feel we have proved ourselves and delivered results that show we will literally bend over backwards to get a commercial property tenanted.

I’m chuffed to say that our town now ranks among one of the highest in the country for attracting new businesses in – and given that we’re working in a tough economic climate that is quite an achievement!

The sense of satisfaction I feel bringing empty shops back into use is huge.  I love the fact that we are bringing new businesses in who will grow the local economy and who may add jobs and services to our area.  I adore that we are, in our own small way, playing our part to making the town, the local area and the community a better place to live and work.

Until now we have only had smaller shops to tenant – and we have loved it. And we have thrived on it.

And now we have our biggest commercial challenge yet – and it’s only come to us because of the small successes that we have shown we can achieve.

I have known for years who I have wanted to put in this building.  They are a major blue chip company.  Will they come?  I don’t know.

What I do know is that this major building deserves and warrants a major blue chip tenant.  If we get this right – the tenant will benefit massively – and we as the local town will get the “halo” effect.

Wish me luck in my new challenge. My town and this building need me to succeed in finding the right commercial tenant.

There may be moral indignation and hatred in the popular press – but these are banks – they don’t really give a rat’s arse about anything more than making money.

We are all grown ups, and following this banking crisis, we really should know better by now.

But we don’t.

Last week I shared with you how the 25 year mortgage contract I signed with Skipton which had a ‘rate guarantee’ meant nothing in the face of the “exceptional circumstances” clause, which is a catch all, for this-clause-means-we-will-do-what-the-F-we-want. Unfair contracts. Misleading guarantees. Outright liars – you would have thought Watchdog and all the other consumer action groups would have a field day – but they don’t, because they can’t do anything.

And so today I wake up to the news that my Bank Of Ireland mortgage rate which is currently on a Standard Variable Rate (SVR) is going to increase by 1.5%. It was a shock. Even for me.

Generally SVR’s, although independent of Bank Of England Base rate, do usually follow the pattern of base rate changes. Yes, the SVR is the mortgage lender’s own rate for lending, but usually it does have some sort of semblance to Base Rate.  But now we’re worlds apart. This is again a case of the banks doing what the F they like and screw anyone else.

So Halifax started the ball rolling last weekend with it’s 0.25% hike, then a few others started piling in – all with approximate 0.25% increases. Then Bank Of Ireland who saw the media furore which had started to erupt, just said “F*** IT” why not just get it over and done with and screw our customers royally.  Let’s jack it up by 1.5%.

Just to put that into a real world context for you, my mortgage with this new increase will rise by £196 per month…and that’s without the base rate moving…which we all know is going to happen at some point soon.

Of course, most banks would probably not act like Bank of Ireland, they don’t really want to lose all their customers.

However, that does not apply to Bank Of Ireland.

Having spoken with Bank of Ireland this morning to find out my options for other mortgage products (limited – I can fix for 3 years or 5 years at 5.99% or 6.25% respectively) I was politely informed:

“We do not make a secret of it; Bank Of Ireland do not want to be in the mortgage business any longer. We stopped taking on new customers 3 years ago. Now we are looking to offload our business.  In the nicest possible way, we are not looking to encourage our customers to stay with us. We want them to seek other options elsewhere which is why we have paired up with London & Country Mortgage Brokers and they will find you a more competitive rate with another lender”

There is truly no better way than saying Fuck Off.

Truly that is she told me.

So the banks have changed their minds. They no longer want to lend the money they offered to consumers.  I understand businesses change course. But really, is it fair for a bank to just change it’s mind when hundreds of thousands of people and their homes are involved?

Is it OK to just say – we don’t want you business – take it elsewhere.  Property is the most expensive purchase of your life and it takes years to pay back the debt.  It is not an overnight decision. Well not for me anyway, but then I am not a bank.

Again, I have limited choice. The mortgage market is screwed.  And on top of all this, there are the extortionate arrangement fees of the new mortgage which are typically in excess of £2,000.

Maybe I should know better. I wonder why I am so surprised. But do you know what? I am.

Property is a long term investment.  It would be nice to feel that we have that long term security with the banks we deal with.

It is true; I was warned. Banks can do what the F they like regardless of any contract that you sign. It means jack all if they decide they don’t want to honour it.

Fairness? Roll over. That doesn’t exist.

So what happened?

Well you may remember I wrote about it here – it was a letter I received out of the blue from Skipton which essentially would change the key borrowing terms of my 25 year mortgage I had taken on an investment property.

The nuts and bolts were – after the 5 year fixed period had elapsed, rather than a ceiling of 3% above base being applied (as my contract clearly stated) Skipton decided to change the terms due to “exceptional circumstances” and charge what they felt like/ how much they wanted/ how much they needed to fill their coffers.  The rate they decided to charge me was 4.95% – some 1.45% ABOVE the agreed contract rate.

I argued. I ranted. I raved. I sent long letters. I sought out case laws. I contacted a consumer pressure group for a legal class action (details kindly provided by Nick P in his comments on my original blog).

I tried every which way.

I got nowhere.

So I went to the Ombudsman.  This could not be fair. How can it be that a bank decides because market conditions no longer suit them they can just change a 25 year contract?

Well they can. And so the Ombudsman letter tells me – it’s also fair.

And apparently the FSA also agree that what Skipton has done is fair. How is it fair for Skipton to renege on a key contract clause?

Apparently it’s fair because Skipton:

a) Informed it’s customers of it’s decision to breach the mortgage contract

b) Gave customers the “choice” that if they didn’t like this breach then they could leave.

That’s it – you got it, apparently the Skipton’s response “which resulted in a fair outcome for consumers” was the reponse:

If you don’t like it, FUCK OFF

Well, that would be great if I had a choice; I would leave.

But, the mortgage market is a mess. Nobody wants to lend.

So I had no choice, I had to stay with Skipton. For the privilege I also got to pay another 2% arrangement fee for my remortgage (which they were generously allowing me to do).  It wouldn’t feel so big a deal if this was just one property…but there were several.

In “fairness”, Skipton has made a killing out of me – it’s just added £1000s of pounds to every mortgage in arrangement fees and added more to the amount I owe at the end.  Of course, why shouldn’t I feel that is “fair” as the Ombudsman, FSA and Skipton tell me.

But then I am just the muppet who thought that a mortgage contract was a legal document and meant something. More fool me.

But first – let’s do a spot of scene setting:

The property is a 6 bedroom, 3 storey property which has been rented to a single mother with 9 children.  Don’t ask me why I accepted this rental, the story is too long.  All you need to know is that; oh and that the tenant with her kids in tow have done a runner.

She has left me a garden full of rubbish – but even I don’t think the Vax will manage to vacuum up that lot

Second point to note: These are the results after me washing the carpets for just 5 mins.  The skip was waiting outside and I had to make a quick decision if the carpet would wash or had to be skipped!

Overall:

The machine was as easy to operate as a vacuum cleaner.  All you had to do was fill it up with water and washing liquid and then you just pushed it back and forth like you would when you vacuum.

But really, I believe the photo results will tell you all you need to know:

Top Floor Back Bedroom This top floor back bedroom has cheap green carpet.  The room measures approx 4.5m x 3.8m.  The carpet has a variety of ground in dirt, paint stains, unidentifiable stains and a general layer of muck.

BEFORE:

AFTER:

After one washing, a huge amount of dirt has been removed, there are still some stains to be seen, however with the use of the special Vax stain tool I reckon I may be winning with this.

Result: Carpet kept – saving approx £120

Top Floor Front Bedroom The top floor front bedroom has cheap cord-like grey carpet. The room measures approx 3.8m x 4m. It has a multitude of large stains, burn marks and unidentifiable sticky black stuff everywhere.

BEFORE:

AFTER:

Really, this was a pointless exercise due to the burn marks, unidentifiable black sticky stuff and the poor quality of the carpet. However, some of the large stains have been lifted.

Result: Carpet Skipped

Top Floor Front Small Bedroom This is a small bedroom measuring some 2.6m x 2.4m. The carpet has a thick layer of dirt, unidentifiable black sticky marks, blue gloss paint splashes and a large stain.

Due to the paint damage this carpet could not be salvaged. However, I did want to test the Vax on a large stain.  You can see the original stain circled in the top photo, in the photo below this stain has been removed. This took less than 2 minutes to achieve these results:

Middle Floor Front Bedroom: This is a large bedroom measuring some 6.6m x 4.2m. This carpet was badly worn and threadbare. The black marks you can see in the below photo show where the bed would have been located.

I already knew this carpet could not be saved, but was interested to see what results are possible even with a carpet as badly damaged as this.

The first photo shows the large stain circled, the second photo shows where and how the stains have really been lifted in less than 2 minutes.

Middle back bedroom: This room measures 4.5m x 3.8m and is laid with a purple/ maeve carpet. The carpet has a variety of ground in dirt marks, large stains and stinks to high heaven of wet dog.

BEFORE

AFTER:

To show the progress of the carpet washing I have just done half the carpet – that way you can see the before and after in one room.  After just one washing the ground in dirt and stains had started to lift and the smell was neutralised.  With another wash I believe this carpet can be saved

Result: Carpet kept – saving approx £120

Overall findings:

The Vax W90-RU-B Rapide Ultra Carpet Washer is a fantastic maintenance tool for any landlord to own.  In all honesty, most properties will not be like the property above – this is abnormal wear and tear and not really a fair test. However, the Vax Rapide has surpassed my expectations and already paid for itself – I have managed to keep 2 carpets at a cost saving of approx £240.  Without the Vax these carpets would have definitely been destined for the skip.

I envisage now using the Vax for all end of tenancy cleans. I firmly believe this will prolong the life of the carpets – meaning I have more money in my pocket!

I still find myself poring over the auction catalogues and oohing and ahhing…and occasionally (OK at least once per day) calling an estate agent – but at least its at a slower pace than previously.

This means I have more time to indulge in normal stuff that other people do – like watch Homes Under The Hammer! And while I watch these property auction goers, I can live vicariously through people buying and selling at auction without me even having to get in my car and see the property or get my cheque book out or find out my tools to renovate the places!

So it was with great interest when I watched Homes Under The Hammer on Iplayer which was broadcast on BBC One at 10:00AM Fri, 27 Jan 2012 which featured a flat in Catford, London.  Watch here

I was hugely interested because I had viewed the flat and had wanted to buy it in 2010.  It was a lovely one bed flat on the top floor of a handsome period building and in pretty good condition.  Here are the photos I took:

However, what put me off was the state of the communal areas and cracks in the walls. The whole building had a very uncared for feel and look and I was concerned what sort of bills may come in for the upkeep of the building.  I was also put off by the cars parked at the front of the building which had so many weeds growing under them I didn’t think they had moved for years.

So anyway, having viewed the flat and given my concerns about the communal areas of the building and the general fabric I decided against it – plus it was being sold at Savills who are well known for pricing low just to get you in. I didn’t really expect the flat to sell anywhere near it’s £80k guide.

So imagine my surprise as I was watching Homes Under the Hammer and it shows the buyer picking up the Catford flat at the Savills auction for a steal at just £91k.  He does a good job with a new kitchen and bathroom and when the estate agents come round they proclaim the new value to be £150k.

“What” I shout at the television “Not a chance!”

I remembered I had done research on the flat and the end value of £150k sounded way over the top to me.

Incensed that I had passed on this bargain I had to do more research to see if I had under-valued the flat.  Scouring the land registry figures I saw the guy did sell the flat, but not for £150k – he sold it for £132,500.  Which to be fair is a good price given what he paid for it and the cost of the renovations.

Obviously I over-estimated how much the poor condition of the communal areas and the cracking of the building may put people off – the guy did well on this flat.  It didn’t need much work and he pulled a good profit margin on a small project.

Am I tempted back to property on account of this? Well the same episode of Homes Under The Hammer did feature a couple of developers who pulled off a stunning chapel conversion in Chelmsford with a much more attractive £400k profit!

And so as luck would have it, while I surreptitiously got my fix on the iPhone in the kitchen I saw before me they had “70% off Jewellery”, “60% off books” and “50% off Home & Garden”.  Unfortunately, being a landlord means the conscience pricks in – and I always seem to find myself choosing the sensible option over the more interesting option. So while I was rather tempted by the pretty, glittering diamonds of the 70% cheaper necklaces, I found myself clicking through on the discounted vacuum cleaner icon.

I know it’s sad.

It gets worse.

I have to admit I got excited.

Like some kind of porn addict I find myself salivating over the carpet cleaners and the reviews of a Vax W90-RU-B Rapide Ultra Upright Carpet and Upholstery Washer which was half price on Amazon – just £114.99 with free delivery.

I scoured the reviews for any landlords who may have bought…children, pets and wine stains are one thing – but how about tenants?

But I was bowled over by “Reviewer Love”. I daydreamed about “as new” carpets, about not “skipping” carpets, about not keeping Carpet Right’s share price afloat in 2012.

And then before me – on eBay-  I saw my Christmas present sent from Landlord Heaven: a Vax W90-RU-B Rapide Ultra, used once, 6 months old, located down the road in Cambridge and with a starting price of just 99p!

But what to do – the eBay auction had 9 days left to run, but the Amazon half price deal had only 8 days left…with limited stock.

And, of course, every person on the planet would want to buy one of these Vax machines when they read the reviews. How could I be sure that I wouldn’t miss the deal of the century? If I didn’t buy now I may end up Vax-less! I knew if I didn’t buy it right at that moment my Christmas would be filled with regret and 2012 would be awash with purchasing new carpets.

Fuelled by Christmas spirit and my then decided New Year’s Resolution to “buy less carpet” I quickly emailed the eBay seller explaining my predicament with the Amazon sales and his auction end date and emphasizing my need to buy this miracle machine.  Obviously, the seller was equally bored of the Christmas day festivities and had replied within moments.  After a quick-fire text exchange I am soon-to-be the proud new owner of a Vax W90-RU-B Rapide Ultra!

And so I have collected the miracle machine aka Vax W90-RU-B Rapide Ultra and it is soon to be put through it’s paces with it’s first tenant house this weekend.  I feel it’s a fair test – a property which until recently housed a single mother with 9 children (no kidding!). And I am looking forward to the promised vision of “as new” carpets which will be as sparkling and as glossy as a raven haired beauty on a L’Oreal shampoo advert.  Of course, I know this carpet cleaner won’t change my life…but in it’s own way I am expecting my own little Christmas miracle.

To Be Continued.

Nope. My dilemma is very seasonal for this time of year – it is: Can you ever claim too many times on your buildings insurance?

Making an insurance claim,  in theory, should be pretty straight forward – I pay my insurance premiums and I am covered for the damage that has occurred. (I won’t bore you with the latest fiasco, this is the season to be jolly and hang tinsel on the tree). However, I feel I’m now on the cusp of being every insurance man’s nightmare – because “I-am-the-customer-who-always-claims-insurance”. And the fact is, insurance companies make their money from the “customers-who-never-claim-insurance”

So I didn’t mean to become the “customer-who-always-claims-insurance” it’s just I’ve had a run of bad luck in the last couple of years and tenants being the darlings that they are, have ensured that my properties have remained problem-free-only-in-my-dreams…

And so I spoke with my broker about what to do, and my concerns with being “the-customer-who-always-claims-insurance” and whether any company in their right mind would ever insure me again and he informed me it’s not about the amount of the claim that is the issue, but the frequency.  Which quelled one concern, as the claim would be for several thousands of pounds.  But, it opened another concern, because unfortunately, not only am I “the-customer-who-always-claims-insurance” I am, in fact, a regular. I am a frequent flyer. I am ”the-customer-who-regularly-claims-insurance”

I never wanted to be this person. I never wanted the loyalty card, bonus points and free desk top calendars that come with having my insurance broker’s telephone number on speed dial – I just somehow seem to have drifted into this territory.

And so my dilemma is – what is the probability if I claim again on my insurance, what is the likelihood that an insurance company will insure me again?  And if I find one that does, just what sort of mark up on the premiums am I going to have to end up paying? (bearing in mind I’ve already seen a 30% increase in the last 2 years due to my insurance incidents). And what choice am I actually going to have? Because the fact is, insurance companies insure those people who think something “may happen”, but it doesn’t. Insurance companies are not overly keen on people like me where something is “probably going to happen”.

So what to do? I have a valid claim.  But will the short term gain of claiming on the insurance for the damage be a long term pain?

Decisions. Decisions. Oh I would much rather be wondering what sort of mince pies to bake

Now there are many reasons why you should never trust an estate agent.  Consistently voted the least trustworthy professions I should know better…

So let’s begin.  It’s Wednesday 23rd November.  I see the below property going to auction with a guide of £65-70k and it’s being sold by Mortgagees Not In Possession.

I know it doesn’t look much. It’s described as an empty shop with one flat above in a place (South Ockenden) which sounds like the back end of nowhere.  However, let me enlighten you because I have done my research: it’s actually a popular commuter town, with pretty good property prices.  And in fact, the property comprises two flats, both of which have recently been refurbished and are let for a combined income of £1500 pcm.  Also, I can tell you the shop would rent for £800 pcm – so a combined rental of £2300 pcm against an auction guide of £65-70k.  That’s an incredible yield of over 40%!

In terms of value – you’re looking at c.£70k per flat and about £50k for the shop – so a combined value of £190k.  Plus, there is potential for additional income from the advertising board erected on the side of the property so we could say another £10k for that.  Plus, there is a rear yard/ storage area. All in, I would say we’re talking a total of £200k value.

So I’m used to tempting auction guide prices just to get you in – but this auction guide surprised me and I wondered if the guide was so low because they had only valued it as one flat rather than the two it had.  The catalogue entry stated that the auctioneers had not been able to gain access and the description was taken from the VOA website.

Doing my research I had discovered the building was on the market with a local estate agent with a price tag of £275k – far too top heavy so I reckoned that was the reason it hadn’t sold prior to being entered to auction.  I called the estate agent to find out what the issues are with the property, if they could get me in etc etc.  So imagine their surprise when they have no idea it’s going to auction and actually it was only put on the market a couple of days previously by the owner, who the estate agent I was speaking with, has known for a number of years, and who has bought and sold many properties with them.

Estate agent: “No, sorry you must be mistaken, that property is not going to auction”

Me: “OK, well this is the address I have – is that the same building you are selling?”

Estate agent: “Well, yes…but that can’t be it”

Me: “Well open this website to the auction page and tell me if this is the same building which they are selling which you are selling, it is a sale of Mortgagee Not In Possession perhaps that’s the issue?”

Estate agent takes web details and enters the site: “Well I never. Yes, this is the same building. Oh and it says it’s being sold by the mortgagees…hmmm that does sound odd. I know the owner and he hasn’t got any money problems and this property was only recently refurbished and let so I don’t understand this.  It really doesn’t make sense as we only took this on our books a couple of days ago”

Me: “Well, is it possible that perhaps the owner is having financial difficulties, but he didn’t want to tell you – and that is why he is trying to sell it – before if gets sold as a repossession?”

Estate Agent: “No, I really doubt that…but look I am going to call him now and find out more – give me your number and I’ll call you back”

*************Half an hour later***********

Estate agent: “I have spoken with the owner and he believes it’s a mistake, he has tried to call the auction house to find out, but they have closed at 5.30pm so he’s going to call them in the morning. He’s also going to speak to his business partner to find out what is going on, I’ll call you then when I know more – oh by the way I have said to him if he wants to sell quickly then I am more than happy to give him 70 grand cash – that’s a steal!”

Me: (feeling uncomfortable that I seem to have created a competitor) “OK that’s great thanks, speak then”

Now at this point my internal alarm bells should have been ringing.  If I owned a property, that unbeknownst to me was being entered for sale as a repossession in an auction, the first thing I would do is ring the bank to find out what on earth was going on!

Thursday 24th November – estate agent calls me and assures me it’s been a huge mistake, the property is not going to be sold at auction and the owner is now in talks with the bank and his business partner.  I call the auction house, as far as they know the property is still going to auction.  Hmm two very different opinions.

Friday 25th November – estate agent assures me the property is going to be withdrawn from auction, it’s all a big mistake and something to do with the business partner. Auction house still does not have any legal papers and so I am still none the wiser.

Saturday 26th November – Sam goes on holiday.

The following week I check online and still there are no legal papers available, the property is still showing as available in the upcoming auction, but at the same time is still showing on the estate agents site as for sale.  I think about what the estate agent has told me and figure that shortly the property will get withdrawn from the auction and that’s why there are no legal papers available. At the same time I also juggling the figures for an office block conversion we are proceeding on, so I withdraw my interest in the auction property so that I can properly focus on the office block – which is a receivership sale.

So now I am back from holiday and I am checking the auction results from the past few days…and you guessed it. It did go to auction. The estate agent was wrong.  I should not have listened to him. In fact, I bet he bid for it.  Whoever bought it, got a bargain. It sold for £80k. By my reckoning that’s over £100k profit when you split it and sell it on.  I should never have listened to the estate agent.  That just cost me a lost opportunity of over £100k.

That’s the question I find myself asking today…

As we enter the cold season, I am reminded of the horrible, horrible winter we had last year where we had a multitude of frozen pipes, broken boilers, upset tenants and my ever decreasing bank balance to pay the bills.  I remember at one point thinking to myself I would stop answering the phone. Every time I answered it, it seemed to cost me yet more money. Alas, ignorance was not an option…especially not when my tenants have me on speed dial and think nothing of bombarding me with their free annual text quota in a day.

And so with a heavy heart, I like many other landlords, are entering that wonderfully festive season which is traditionally known as Christmas to everyone else and T’is Season to be Jolly. Which in the landlord’s world – T’is the Season to Worry. Which in the plumbers world Ti’s Season To Plunder. Yes, for plumbers, winter is their peak season – this is the manual workers equivalent of City Boy Banker’s Bonus Month!

So when my kindly insurance broker called me to remind me it was that dreaded time of the year again – Insurance Renewal Time. I felt the sense of dread for the forthcoming cold season even more clammily around my neck…of course, it could have something to do with my annual premiums being the equivalent of a new car – or maybe I just need to get my boiler checked…

Anyhow as my broker is cheerfully telling me how this year I just have an 8% increase on my premiums (which I suspected I was meant to be grateful for) he then informs me of his new Christmas Selling Scam to fill his Santa Stockings. It’s Landlord Home Emergency Cover. I am aghast – am I not spending enough money with his company – and now he wants MORE!!! So I scoff and scorn about home emergency policies and bleet on about the cost and other such stuff. And then he stops me in my tracks when he tells me the price. It is a measly £59 including central heating cover per property. For the year. Yes, £59 for the year.

At such a tiny price there has got to be a catch. I mean this is £4.91 per month. So I ask him to send me over the policy details so I can check the small print. I then get onto the websites of Homeserve, AA, Swinton, LandlordCall, LandlordPlus and a million other sites which claim they offer Landlord Home Emergency Cover – there are a lot! And the price range varies – admittedly none of them as cheap as what’s he’s offered – but if I chose to I could spend 5 times more and go with Homeserve…for a pretty similar package.

So what do I get for £59? Well I get:

Plumbing and drainage: Sudden failure of, or damage to the plumbing and drainage system. This includes leaking pipes, blocked drains, water tanks and blockages in toilet waste pipes.

Gas & Electrical Supply: Sudden and complete failure or breakdown of the gas or electricity supply within your property

Pests: Professional extermination and control of pests in your home including cellars and outbuildings

Roofing: Damage to the roof of your home caused by storm or fallen trees or branches

Security & Glazing: Damage caused to external locks, doors and windows

Primary Heating: Complete failure or breakdown of either the heating and/or hot water supply provided by your primary heating system

3 Way Claim Helpline: A specific appointment time is agreed between the tenant and the tradesperson while on the phone to the claim helpline

Admittedly I can pull holes in the “emergency cover” and I can see limitations and exclusions where they will probably try and wriggle out of it.  But, you know I have had to shell out a lot for broken windows, burst pipes, broken boilers, smashed roof tiles from falling branches and a huge number of blocked toilet waste pipes over the last year!

And so I ummed and arrhed and asked lots of other landlords for their experiences. And I have to be honest I was undecided.  It sounded too cheap…and you know the saying “If it’s too good to be true…”

My broker usefully told me “It’s the sort of insurance that you don’t know you need it, until you need it”

Which, of course, I found extremely helpful (note sarcasm). And so I decided that for such a small amount of money I don’t expect much back. In fact, my expectations are so low that if anybody even answered the phone when an emergency happened I would think it was a minor miracle let alone anyone attending and even fixing the problem.

And so I have decided, it’s so cheap that I have to trial it. How can I not try it? At less than £5 per month it’s got to be worth a punt.  And so I am treating my experiment with Landlord Home Emergency Cover like a little test case – as if I worked at Which Consumer Research magazine or something.

Has it provided me with peace of mind for the 25% of my properties I’ve insured?  Well, at the very least, I have an emergency telephone number to give the tenant’s which is not mine…