I live near my local church. Does that mean I’m liable for chancel repairs?

If you had asked me this question a few years ago, I would probably have told you not to worry. Recently, however, a widely-publicised test case has seen a Warwickshire couple forced to auction their home to meet a chancel repair bill of almost £190,000.

So, what’s all the fuss about? Basically, chancel repair liability is a hangover from medieval times, and relates to the fact that the ownership of certain lands in certain parishes still carries with it a legal obligation to pay for repairs to the local church.

Until recently, this remained something of an historical curiosity, and cases were a rarity. Now, however, chancel repair liability looks set to become quite a hot topic. Why? Well, firstly because the Land Registration Act of 2002 gave the church authorities a deadline of 2013 to formally register all such interests, or lose them altogether. Secondly, the test case I mentioned earlier has clearly demonstrated just how much those interests could be worth to a cash-strapped Church of England facing a backlog of repairs totalling almost £1billion.

Not surprisingly, therefore, parochial church councils up and down the land are busily dusting off their records…

Actually, you may not be liable for chancel repairs at all. Not all parishes are “at risk,” and in any case, closeness to the actual church is not necessarily the deciding factor. If, on the other hand, you are liable, then I’m afraid you’re stuck with it – although insurance cover may be available, at a price.

The problem is finding out. There has never been a central register of such historic obligations, and title deeds rarely mention them. Solicitors and conveyancing professionals can access an automated service which will identify at-risk parishes – in which case, it may be advisable to take out specialist chancel repair insurance, just in case. However, to establish for certain whether your particular property is liable will require a full chancel repair search.

Meanwhile, it goes without saying that the last thing you or your solicitor should do is contact the church directly about your concerns. Much better to let sleeping dogs lie!

What advice would you give to anyone wanting to buy a property ?

Here are 6 simple steps to follow

1) Find out how much you can afford.
Visit an independent mortgage advisor and confirm how much mortgage you can afford ?
Work out how much deposit you can raise and what the costs will be including solicitor fees and stamp duty.
Remember that there will be utility bills to pay so build those into your calculations.

2) Make contact with an estate agent.
There is only so much you can do on the internet and a good agent can help you sort "The wood from the trees" and help you find you your perfect home a lot quicker.
Let them have all the information you can. What price bracket you are looking in,how much deposit you have and just as importantly what type of property you are looking for.
Make a list of how many rooms you want, the preferred areas, local amenities and anything else that is important to you.
The more you tell the agent the easier it will be for them to find the best property for you.

3) Arrange to view.
Make appointments to view your chosen properties and keep them, if you cannot make an appointment let the agent know.
Take a list of questions with you, such as, what is the area like, how is the property heated ? How much is the Council tax and what are the neighbours like ?
It is important to find out as much as possible so you can make the right decisions.
Make notes after viewing and review them later.

4) Keep in touch.
Let the agent know if your requirements change, you may decide after seeing some properties that you need an extra bedroom or a bigger kitchen.
Your agent may have a more suitable property but not shown you it yet, as they think it is not what you want.

5) Sell your property first.
The best way to cut out disappointment is to place your property on the market and get interest before you find the home of your dreams.

6) Make an offer.
When you have found the property you want make a formal offer through the agent.
Let them know how much deposit you have and the details of your mortgage.
Before you offer make sure you have carefully considered everything, does it meet all your criteria ?
Is it large enough for you now and in the future, is it in the right location ?
If you want to be considered as a serious buyer, the last thing you want to be doing, is making offers and then withdrawing them because you have changed your mind.
When the offer is excepted you will need to chose and instruct a solicitor to deal with the transaction.

Is this a good time to consider a buy to let purchase ?

According to the Retail price index ,there would have been a 2.4% return on any property investment over last 12 months,taking into account rental income and a slight drop in house prices over that period.
The last time residential property achieved such a return was in the period from July 2007 to July 2008.
Returns have improved significantly since the low in February 2008 when losses were estimated at over 11%.
April 2009 was the best time for buy to let investors with an expected return of 7.4%already and a projected annual return by April 2010 of 15%.
There was also news from the CML recently of an increase in buy to let lending in the third quarter which is the first increase in more than two years.
So now might be the right time to consider entering the rental market, so as not to miss the boat.

Is stamp duty changing again ?

The key issue at the moment is that the so-called Stamp Duty Holiday - which the Government brought in just over a year ago as a temporary measure to help boost activity levels in the property market – is due to come to an end on December 31st. Precisely what impact this will have on the market as a whole is, of course, something only time will tell. Nevertheless, for first-time buyers and investors, it could be very significant indeed.

Back in the autumn of 2008, the Government temporarily raised the base level for Stamp Duty from £125,000 to £175,000. By taking around half of all transactions out of the net altogether, this measure was designed to breathe some much-needed life into the crucially important bottom end of the market. Originally, it was due to lapse last Spring, but in April the Government extended it to the end of the year.

What does this measure actually mean to you and me? Well, if you’re looking to buy a property for, say, £150,000, it means that you won’t pay a penny in Stamp Duty – as long as you actually complete before December 31st. Any later, and you’ll be liable to pay the Government a whopping £1,500.

Of course, it’s always possible that the Government will relent, and decide to extend this concession still further. After all, with things just starting to look up again in the housing market, many would consider it foolhardy in the extreme to risk jeopardizing that recovery. On the other hand, it has been calculated that the Stamp Duty Holiday has already cost the Government some £200million in lost revenues - and considering how cash-strapped they are, I wouldn’t bank on any last-minute reprieve.

Longer term, of course, what is really needed is a complete overhaul of the entire Stamp Duty regime. But since it has been a nice little earner for Governments of every hue down the years, I wouldn’t hold my breath on that one either – whatever happens at the next election!

When will the housing market recover ?

It depends what you mean by recover.Many would take that to mean strongly rising house prices, which may be a little way off still.
However there are strong indications that first time buyers and buy to let sales are growing.
First-time buyers increased their share in the mortgage market in October, compared with the previous month.
In October first-time buyer activity rose to 15.3 per cent as a proportion of total purchases last month, compared with just 10.4 per cent in September.
Research released by the Council of Mortgage Lenders earlier this month demonstrated that first-time buyers were rushing to take advantage of the stamp duty holiday.
Almost one-third (32 per cent) of all loans issued to first-time buyers in September were for properties valued at between £125,000 and £175,000.
The number of buy-to-let mortgage packages available on the market is slowly rising as well.
Statistics released last week by the Council of Mortgage Lenders revealed that the buy-to-let market had grown for the first time in two years during the third quarter of 2009.
For any market to recover it needs a firm starting point and the above activity shows, that the property market is heading in the right direction.

When will there be the right mortgages available ?

One of the main problems with the property market still, is the availability of mortgages for well positioned purchasers. Despite all the quantitative easing by the government, banks and building societies are still reluctant to lend.
If first time buyers with sensible deposits of 5% or 10% and 3 times income, could more readily obtain funding, on sensible terms the property market would come back to life in an orderly way.
This would encourage more homeowners to place their properties on the market, so the supply and demand balance would be restored.
When is this likely to happen,?
One clue is in interest rates. No not the rate mortgages are offered at but the relationship between the Bank of England base rate and the LIBOR rate ( London inter bank offer rate ) The more these two rates move apart the less likely lenders are to have the funds to lend those realistic mortgages. This is because it is costing them more to borrow the money on the wholesale market, so they have to find ways of making profits from expensive funds.
Once banks start trusting each other again, so the strong banks with funds start lending to the others, money will start to flow again.
This confidence between the banks is reflected in base and LIBOR rates moving closer. So a simple way to monitor potential property market activity is to track these two rates.
As they converge you will see more sensible mortgages being offered to well placed first time buyers something that needs to happen to enable the buying and selling process to start .
While they remain further apart and if you have funds available now is a good time to invest in property.
I must stress this is just one factor to take into account and others need to be weighed up when considering purchasing.
If you have a question on property buying in this market please feel free to contact me by posting a comment.

Over valuaing your property ..do not let it happen !

Some agents are currently over valuing properties by as much as £20,000 to £30,000 in my area. They are doing this because they are desperate to get properties on the market.

The problem is, it unrealistically raises the seller’s expectations of what price they may achieve. Which means the client might start looking for properties in the wrong price bracket or worse still lose the property they have set their heart on.

Also this approach can be very frustrating, as the best placed purchasers will not be interested in viewing the property. This is because most buyers become expert in the price range they are looking to buy in, so an over priced property stands out like a sore thumb to them.

Another problem is, the only way interest is going to be created is by reducing the price. This disappoints the seller and does not look good to the buying public, especially if it is done too many times.

So how can you avoid falling into this trap? Firstly only use an agent that backs up their valuations with comparable sales data, so they prove to you what is selling, at what price and what has happened to the market since that sale. Secondly try a sales technique we have used for years,“Offers in excess “this works well and often achieves a higher sale price.
It also shows the best price achievable in any market.

It is always tempting to place your property on the market at a high price and see what happens but the agent that does that is doing you no favours.

What do I need to do before renting my property out ?

Here is a useful checklist I give to my clients
CONTACT:
Mortgage lender for permission to let.
Freeholder if property is leasehold, for permission.
Buildings/Contents insurers inform them of change of circumstances.
( i.e. property now empty, you are going abroad, going to let )
Utilities and service companies
Local authority (council tax)
Mail redirection service.
Inform them all of the date you are moving.
Energy Performance Inspector for an Energy performance certificate.

MAINTENANCE:
Complete any outstanding repairs and Health & Safety modifications.
Arrange Gas safe inspection - obtain Landlord safety certificate.
Electrical inspection - obtain a portable appliance test, and (if the property has not been inspected within the last 5 years) a wiring certificate.
Smoke alarms (if fitted). Test and ensure they are working correctly.

SUPPLY YOUR AGENT WITH:
Your new contact details (address, phone, fax, email).
2 sets of keys to the rented property.
Any service agreements and signed tenancy agreements prepared by Tudor.

GOING ABROAD?
Inform your Accountant.
Apply to your Tax Office for an Exemption Certificate.
Ask your Solicitor to draw up a Power of Attorney
(for signing agreements and insurance claims)

Here is the good news.Base rate stays at 0.5 % and more FTB mortgages are available.

On November 5th 2009, the Monetary Policy Committee decided to maintain its base rate at 0.5 per cent for the eighth consecutive month.
Lenders are becoming more lenient with their deposit requirements, according to Moneyfacts.
Since the Bank of England first cut interest rates to a historic low of, 0.5 per cent in March 2009. Financial institutions have started to increase the number of high loan-to-value (LTV) products on their books.
The number of products requiring a 15 per cent deposit had increased from 169 to 231 while the number of mortgages requiring ten per cent of the property value in advance had risen by 16, to 105.Source Moneyfacts
Lenders seem to be getting a bit more comfortable now that property values are levelling out and are prepared to advance to a higher value.
This should allow a greater number of first-time buyers to access the property market.

Swan hall, available for charities to fund raise, free of charge.

Any registered charity can apply to use our historic head office for a fund raising event free of charge. Past events have included,cheese and wine evening,fun auctions,musical concert and wine tastings.
Below is a short history of the builing.
Tudor Estates are proud to be the owners and latest custodians of Swan Hall, the oldest privately owned property in Southend on sea, Essex. Dating from 1407 Swan Hall was originally built as a merchants house and over the years has been used as the medieval market hall, the Swan Inn public house and since the 19th century a bakery.
The building was damaged by a fire in 1998 and has been painstakingly restored using the original methods and materials. It was decided that as a part of the restoration the building would be returned as near as possible, to the way it looked during the medieval period. Using traditional techniques the timber frame was rebuilt incorporating as much of the original timbers as possible. Where there was fire damaged or rotten wood, new green oak timbers have been used to replace them.

The property was first recorded on 8th March 1574 as "a shop in the market place with land" owned by Richard Welkes who had bought it from John Cocar. By the 2nd August 1619 it had been inherited by John Welkes, and was then described as: “The Swan” with an orchard. The list of publicans in Prittlewell states Mr Littlebury held the Swan in 1702, with an orchard at the side, later 3 cottages were built in the orchard which became our original offices. By 1841 it was a bakery owned by Samuel Tabor and William Rankin, they also acquired the windmill that stood at the back in Roots Hall Avenue. Today fully restored Swan Hall is a piece of living history and Tudor Estates are keen for it to be seen by the wider community we would like to hear from any local charity, groups or schools, interested in visiting.

Should I sell at auction ?

That rather depends on what you are selling. For instance, the auction system of competitive face-to-face bidding can often be used to advantage in the case of unusual or “non-standard” properties, where their very uniqueness makes it much more difficult to arrive at an accurate market valuation in the usual way.

Auctions tend to be where investors and those with pre-arranged finance go to buy, for example, repossessions, or short-lease properties, commercial investments, land or homes requiring a lot of remedial work.

Since completion normally follows in 20 working days, auctions are also particularly suitable where a quick sale is required. May be because you are moving abroad, face repossession, or are committed to using the monies elsewhere.

What a roomful of canny investors and assorted bargain-hunters probably will not get you, however, is the best possible price for your typical, well-maintained three-bed semi. After all, that’s not what they’re there for.

If you genuinely want to look at the auction option, then ask the advice of a reputable agent who specialises in auctions. If they feel you would be better off going down the traditional route, then they will tell you – after all, it certainly is not in their professional interest to be left with a lot of unsold properties which failed to reach their reserve price.

Generally, guide prices are set at about 20 / 25 % below the open market value to attract the right buyers to the room. Then the competitive bidding process takes over and very often properties sell significantly higher than their reserves.

Both sellers and buyers will incur fees and a 10 % deposit is payable on the day, for those that are successfully bidders

To re cap, auctions can provide a fast, certain and exciting way to sell for the right type of residential and commercial properties but as always seek professional advice before committing.

For further information go to www.trustintudor.co.uk

Am I legally entitled to extend the lease of my flat – and if so, at what point would it be most beneficial to do so?

Under the Leasehold Reform, Housing and Urban Development Act 1993 (as subsequently amended), you are entitled to a 90-year extension on your lease – as long as you have already held it for more than 2 years. However, this comes at a price, since the legislation entitles the freeholder to a degree of monetary compensation for having to wait an extra 90 years before getting their property back.

When is the best time to apply? Basically, the sooner the better. The really critical moment is when the unexpired term falls to 80 years. At this point, as well as the afore-mentioned compensation, you also become liable to pay so-called “Marriage Value” – i.e. 50% of the increase in the flat’s market value due to the lease extension.

Needless to say, this is a highly complex and time-sensitive process, with all sorts of pitfalls along the way. For instance, formal notice must first be served under Section 42 of the Act. Get any part of this wrong, and the whole application could be thrown out – and you could find yourself paying the freeholder’s abortive costs. You would also then have to wait at least another year before being able to reapply, and a year’s delay could mean a significant increase in both compensation and Marriage Value.

So, the essential first step is to seek proper professional advice – and not from just any solicitor or surveyor, but from one that belongs to the Association of Leasehold Enfranchisement Practitioners (ALEP). They are the real specialists in this area, and will therefore be fully up to speed on all the most recent legal precedents.

Finally, is it all worthwhile? In a word, yes - particularly if you are going to be selling at some point in the future, since you will benefit from the resulting increase in your flat’s market value. If you are selling sooner rather than later, i.e. after formal notice has been served, but before the extension you are seeking has actually been granted, then you can even assign that notice to your purchaser - so you don’t have to sell at the shorter lease value.

Why sell property at auction ?

It’s fast – exchange contracts on the fall of the gavel, with completion in 20 working days
It’s certain – no chains, no negotiation, no gazumping or gazundering
It’s efficient – serious buyers with cash and finance: no time wasters
It’s transparent – all interested parties have the opportunity to bid
It’s the place to sell property – residential, commercial and land. Properties that failed to sell on the open market. Properties likely to attract competition from buyers. Probate or executor sales and properties in need of modernisation or repair
It’s exciting! – go along and see for yourself. Competitive bidding in the room works to the seller’s advantage

for further information go to www.trustintudor.co.uk