Radon is a radioactive gas, which comes from the minute particles of uranium naturally present in all rocks and soils. It is, and always has been, a part of the world we live in.
Although exposure to particularly high levels of radon may pose a health risk, particularly to smokers, the gas disperses quickly and easily in the open air, and as a result, background levels are barely detectable. In an enclosed space – like a house – levels tend to be higher, for the simple reason that the gas cannot escape so quickly into the atmosphere. Nevertheless, in most parts of the country, even indoor radon levels remain extremely low – detectable only by the most sensitive instruments.
Radon levels are measured in something called “becquerels per cubic metre.” Most homes in the UK register a score of around 20. However, geological conditions in certain parts of the country can lead to higher than average levels. In such areas, the Health Protection Agency (HPA), which conducts radon surveys for government departments and local councils as well as private householders, recommends that indoor radon levels above an “Action Level” of 200 should be reduced. This is normally tackled by installing a “radon sump,” which vents the gas harmlessly into the atmosphere with the aid of a small electric fan under the floor. In the case of older properties, these can usually be fitted from the outside, without any internal disruption. To conform with current building regulations, all new homes in these areas have to be equipped with them.
If you are buying a property in a high-radon area, then your survey or mortgage valuation will generally mention the fact. However, this is basically no more than a standard paragraph inserted as a matter of course. It does not necessarily mean that the property concerned is actually affected. Indeed, many homes in so-called high-radon areas display levels no higher than the national average.
However, if you are concerned, and would like to check things out, the HPA produces a free radon information pack which explains all you need to know – including how you can go about obtaining a radon measurement. To request a pack, go to the HPA’s website, www.UKradon.org
Friday 29 October 2010
Monday 25 October 2010
I am selling my home,and it has been suggested that I should get legal indemnity insurance. What is this ?
Legal indemnity insurance basically protects the purchaser of a property against the possibility of financial loss or third-party claim arising from any shortcoming in the conveyance. Since you have been recommended to take out this cover, it suggests that your solicitor has identified a potential problem.
What that problem might be, I obviously can’t say. However, one of the main areas where this type of insurance comes into its own is over issues of title or ownership – particularly in cases where so-called possessory title is involved. This sometimes crops up with older properties which haven’t changed hands for a long time. It means that although the current owners may have had use of a piece of land for many years, there is no official record of them having full legal title.
Another common application is in the case of properties which may have been improved or extended, but where the owner neglected for whatever reason to gain Building Regulations approval for the work.
These are precisely the sort of glitches that would normally set all the legal alarm bells ringing. Legal indemnity insurance doesn’t actually solve the underlying problem, of course – but by literally indemnifying the purchaser against the costs of any future legal challenges, it enables the sale to proceed in the normal way.
Other problems where it can be useful include lost or poorly-worded legal documents, issues of access, restrictive covenants, or even properties built on unmade roads (where it provides protection against any future demands from the local authority for contributions to the cost of having the road made up).
Since legal indemnity insurance is designed to help ensure that property transactions are not unduly delayed or even prevented from going through altogether, it obviously benefits the seller as well providing protection for the buyer – which is why it can be taken out by either party. A single premium payment provides cover in perpetuity – so, once arranged, it can be transferred from owner to owner.
For further information on buying,selling,renting or auctions go to wwww.tudorestates.co.uk
What that problem might be, I obviously can’t say. However, one of the main areas where this type of insurance comes into its own is over issues of title or ownership – particularly in cases where so-called possessory title is involved. This sometimes crops up with older properties which haven’t changed hands for a long time. It means that although the current owners may have had use of a piece of land for many years, there is no official record of them having full legal title.
Another common application is in the case of properties which may have been improved or extended, but where the owner neglected for whatever reason to gain Building Regulations approval for the work.
These are precisely the sort of glitches that would normally set all the legal alarm bells ringing. Legal indemnity insurance doesn’t actually solve the underlying problem, of course – but by literally indemnifying the purchaser against the costs of any future legal challenges, it enables the sale to proceed in the normal way.
Other problems where it can be useful include lost or poorly-worded legal documents, issues of access, restrictive covenants, or even properties built on unmade roads (where it provides protection against any future demands from the local authority for contributions to the cost of having the road made up).
Since legal indemnity insurance is designed to help ensure that property transactions are not unduly delayed or even prevented from going through altogether, it obviously benefits the seller as well providing protection for the buyer – which is why it can be taken out by either party. A single premium payment provides cover in perpetuity – so, once arranged, it can be transferred from owner to owner.
For further information on buying,selling,renting or auctions go to wwww.tudorestates.co.uk
Thursday 14 October 2010
Is there such a thing as an ideal time for a property to be viewed – and if so, when is it?
Like much else in the property market, this to a certain extent depends on whether you are looking at things from the viewpoint of a seller or a buyer.
As a seller, you basically just want your home to be seen in the best possible light. So, generally speaking, you will want to schedule all viewings for a bright, sunny day that offers the maximum amount of natural light. (Sunlight, of course, also has the added advantage of putting everyone in a good, positive mood!) As a buyer, on the other hand, it could be argued that you’d be much better off viewing a property on a miserable, rainy day – because if you like the place under those circumstances, you’ll positively love it when the sun finally shines! Besides, it’ll give you the perfect opportunity to see whether the gutters leak, or the garden has a unpleasantly high water table.
So far, so good – except of course for the fact that in this country we can’t actually guarantee the kind of weather we’re going to get from one moment to the next. And while sellers can to a certain extent compensate for a dull, overcast day by switching on all the lights, there’s not much that a buyer can acceptably do to make up for a lack of rain!
But is there really such a thing as the ideal time for a property to be viewed? That depends entirely on the individual circumstances of the property concerned. As the seller of a house close to a school, for example, you might want to try and avoid break times, which can be rather noisy.
Similarly, if your home happens to be on or near a major road, then it might be appropriate to schedule viewings for the middle of the day or the evening, when traffic volumes will be lower.
Incidentally, none of these are dastardly underhand tricks designed to hoodwink the simple trusting consumer. They are just plain common sense. So, if you are selling, it is well worth thinking about such issues and planning accordingly. Meanwhile, for buyers, it just underlines the need to consider everything very carefully before committing yourself.
For more information on buying, selling, renting or property auctions go to
www.trustintudor.co.uk
As a seller, you basically just want your home to be seen in the best possible light. So, generally speaking, you will want to schedule all viewings for a bright, sunny day that offers the maximum amount of natural light. (Sunlight, of course, also has the added advantage of putting everyone in a good, positive mood!) As a buyer, on the other hand, it could be argued that you’d be much better off viewing a property on a miserable, rainy day – because if you like the place under those circumstances, you’ll positively love it when the sun finally shines! Besides, it’ll give you the perfect opportunity to see whether the gutters leak, or the garden has a unpleasantly high water table.
So far, so good – except of course for the fact that in this country we can’t actually guarantee the kind of weather we’re going to get from one moment to the next. And while sellers can to a certain extent compensate for a dull, overcast day by switching on all the lights, there’s not much that a buyer can acceptably do to make up for a lack of rain!
But is there really such a thing as the ideal time for a property to be viewed? That depends entirely on the individual circumstances of the property concerned. As the seller of a house close to a school, for example, you might want to try and avoid break times, which can be rather noisy.
Similarly, if your home happens to be on or near a major road, then it might be appropriate to schedule viewings for the middle of the day or the evening, when traffic volumes will be lower.
Incidentally, none of these are dastardly underhand tricks designed to hoodwink the simple trusting consumer. They are just plain common sense. So, if you are selling, it is well worth thinking about such issues and planning accordingly. Meanwhile, for buyers, it just underlines the need to consider everything very carefully before committing yourself.
For more information on buying, selling, renting or property auctions go to
www.trustintudor.co.uk
Thursday 30 September 2010
September 2010 Southend property market up date
Sales
According to a recent report conducted by YouGov for the Council of Mortgage Lenders (CML), 85 per cent of those surveyed said they wanted to live in homes they own over the next ten years, in 2007, this figure was 84 per cent.
Homebuyers will also be pleased to hear that houses for sale in the UK are much more affordable now than they were two years ago. There has been a drop in the proportion of salary homeowners spend on mortgage repayments from 17 per cent of a homeowner's earnings to just 9.6 per cent.
National house prices showed little change in the latest figures released by the land registry, in August prices were down just 0.3% making the annual average house price increase across the UK 6.7%.
In Southend the last two months have shown small price decreases making the average detached house price now £319,755 with a semi detached at £200,271 and terrace houses £149,801. August prices became more affordable, reducing by -1.0% making the annual change + 8.2%.
Meanwhile, house sale volumes are currently running at about 60% of their peck activity of 103,180
Rental
Landlords are unlikely to reduce their rents in order to make room for the proposed housing benefit cuts. This is the opinion of the Residential Landlords Association (ARLA), which stated that the government's plans to reduce the local housing allowance (LHA) will prevent claimants from being able to live in 70 per cent of rental accommodation. Alan Ward, chairman of the RLA, revealed that 75 per cent of landlords with buy-to-let properties will "not be prepared to reduce their rental levels". He also stated that 54 per cent of landlords said the proposed cuts will make them stop letting to housing benefit claimants. The National Landlords Association recently reported that the reductions to the LHA could result in up to 90 per cent of landlords being less likely to take on claimants as tenants. More than one million people, who currently receive housing benefits, can expect to receive a reduction in LHA of £12 per week if the proposals go ahead.
Landlords could take up a new offer from The Mortgage Works. Yesterday (September 15th 2010), the mortgage provider announced it has made changes to some of its buy-to-let products. These include rate improvements of up to 0.6 per cent on some fixed-rate products, giving £1,000 in cash back for first-time landlords and providing a zero arrangement fee option. It has also introduced a new 75 per cent loan-to-value first-time landlord and let to buy product. Nationwide's director responsible for mortgages Andy McQueen said: "These new changes will further strengthen our product … We believe we're offering the increased clarity, variety and flexibility needed to ensure that intermediaries can satisfy the ever changing needs of their clients." Last week, the National Association of Estate Agents suggested there could be more people looking for buy-to-let properties after it said that the future for the market looks good.
Mortgages
There has been some positive news in the Mortgage Market recently, with Abbey, Alliance and Leicester and Nationwide all reducing the cost of mortgage funding across their product range on products from 60% LTV up to 90% LTV.
Last week also so the emergence of a brand new lender to the UK mortgage market, with the launch of Precise Mortgages, who have launched as an Intermediary only lender. Any new lenders entering the market can only be seen as a very positive sign of recovery for the UK mortgage market.
Further more, Paragon have also announced they will return to lending again with the launch of a new range of Buy to Let mortgage products. These will be the first new buy-to-let mortgages that Paragon has offered since February 2008 when it withdrew from the market due to conditions in the global financial markets.
All this is good news for the buy to let investor, but what is really needed now is an increase in availability of higher loan to value mortgage deals for First Time Buyers, as there are still only a small handful of lenders offering mortgages up to 90% loan to value and they are not currently priced in line with the current historically low bank base rate.
Tudor’s in house mortgage broker, Kit Thompson, of Amber Mortgage Solutions offers whole of market mortgage advice and no broker fees. Please contact him on 01702 346818 or 07896 981380. Email: kitthompson@ambermortgagesolutions.com
If you require any further information about the property market go to www.trustintudor.co.uk or call our property specialists on 01702 346818
Alan Kirkman Director Tudor Estates created 1st October 2010
According to a recent report conducted by YouGov for the Council of Mortgage Lenders (CML), 85 per cent of those surveyed said they wanted to live in homes they own over the next ten years, in 2007, this figure was 84 per cent.
Homebuyers will also be pleased to hear that houses for sale in the UK are much more affordable now than they were two years ago. There has been a drop in the proportion of salary homeowners spend on mortgage repayments from 17 per cent of a homeowner's earnings to just 9.6 per cent.
National house prices showed little change in the latest figures released by the land registry, in August prices were down just 0.3% making the annual average house price increase across the UK 6.7%.
In Southend the last two months have shown small price decreases making the average detached house price now £319,755 with a semi detached at £200,271 and terrace houses £149,801. August prices became more affordable, reducing by -1.0% making the annual change + 8.2%.
Meanwhile, house sale volumes are currently running at about 60% of their peck activity of 103,180
Rental
Landlords are unlikely to reduce their rents in order to make room for the proposed housing benefit cuts. This is the opinion of the Residential Landlords Association (ARLA), which stated that the government's plans to reduce the local housing allowance (LHA) will prevent claimants from being able to live in 70 per cent of rental accommodation. Alan Ward, chairman of the RLA, revealed that 75 per cent of landlords with buy-to-let properties will "not be prepared to reduce their rental levels". He also stated that 54 per cent of landlords said the proposed cuts will make them stop letting to housing benefit claimants. The National Landlords Association recently reported that the reductions to the LHA could result in up to 90 per cent of landlords being less likely to take on claimants as tenants. More than one million people, who currently receive housing benefits, can expect to receive a reduction in LHA of £12 per week if the proposals go ahead.
Landlords could take up a new offer from The Mortgage Works. Yesterday (September 15th 2010), the mortgage provider announced it has made changes to some of its buy-to-let products. These include rate improvements of up to 0.6 per cent on some fixed-rate products, giving £1,000 in cash back for first-time landlords and providing a zero arrangement fee option. It has also introduced a new 75 per cent loan-to-value first-time landlord and let to buy product. Nationwide's director responsible for mortgages Andy McQueen said: "These new changes will further strengthen our product … We believe we're offering the increased clarity, variety and flexibility needed to ensure that intermediaries can satisfy the ever changing needs of their clients." Last week, the National Association of Estate Agents suggested there could be more people looking for buy-to-let properties after it said that the future for the market looks good.
Mortgages
There has been some positive news in the Mortgage Market recently, with Abbey, Alliance and Leicester and Nationwide all reducing the cost of mortgage funding across their product range on products from 60% LTV up to 90% LTV.
Last week also so the emergence of a brand new lender to the UK mortgage market, with the launch of Precise Mortgages, who have launched as an Intermediary only lender. Any new lenders entering the market can only be seen as a very positive sign of recovery for the UK mortgage market.
Further more, Paragon have also announced they will return to lending again with the launch of a new range of Buy to Let mortgage products. These will be the first new buy-to-let mortgages that Paragon has offered since February 2008 when it withdrew from the market due to conditions in the global financial markets.
All this is good news for the buy to let investor, but what is really needed now is an increase in availability of higher loan to value mortgage deals for First Time Buyers, as there are still only a small handful of lenders offering mortgages up to 90% loan to value and they are not currently priced in line with the current historically low bank base rate.
Tudor’s in house mortgage broker, Kit Thompson, of Amber Mortgage Solutions offers whole of market mortgage advice and no broker fees. Please contact him on 01702 346818 or 07896 981380. Email: kitthompson@ambermortgagesolutions.com
If you require any further information about the property market go to www.trustintudor.co.uk or call our property specialists on 01702 346818
Alan Kirkman Director Tudor Estates created 1st October 2010
Monday 20 September 2010
A house in our road is practically falling down. It’s in a terrible state. Can anything be done?
That rather depends on whether there’s anyone still living there or not.
If the property is empty, and has been for more than 6 months, then your local authority may decide to make something called an Empty Dwelling Management Order.
Brought into being by the 2004 Housing Act, EDMOs basically entitle local authorities under certain circumstances to take possession of empty residential properties, do them up, and then rent them out.
An interim EDMO lasts for up to a year, during which time the council will make every effort to agree a plan with the owner to bring the property back into use. If no agreement is forthcoming, or if the owner simply cannot be traced, then a final EDMO can be made, effectively turning the property into local authority housing for up to 7 years.
In case anyone reading this is scared that they could suddenly find council tenants ensconced in their precious holiday home, I should emphasise that a EDMO can only be made with the approval of an independent property tribunal, which must first be satisfied that the property concerned has been unoccupied for at least 6 months, and that none of the various exceptions apply. Holiday homes, for example, are exempt. So too are properties that are subject to probate as a result of bereavement, and those that are genuinely on the market for sale or to let. In any case, EDMOs can always be terminated early if the owners decide they want to sell, or live there themselves.
If, on the other hand, the property you are concerned about is still occupied, then I’m afraid your only real option is to try and persuade the people living there to get things sorted. If he/she/they won’t co-operate, then there’s not really very much else you can do, unless the state of the property is so bad that it is actually dangerous to passers-by and neighbours, or if it is creating a serious nuisance or health hazard – for example, if it is infested with rats. Then, the local authority may be able to step in.
For further information on selling buying renting or auctions go to : www.trustintudor.co.uk
If the property is empty, and has been for more than 6 months, then your local authority may decide to make something called an Empty Dwelling Management Order.
Brought into being by the 2004 Housing Act, EDMOs basically entitle local authorities under certain circumstances to take possession of empty residential properties, do them up, and then rent them out.
An interim EDMO lasts for up to a year, during which time the council will make every effort to agree a plan with the owner to bring the property back into use. If no agreement is forthcoming, or if the owner simply cannot be traced, then a final EDMO can be made, effectively turning the property into local authority housing for up to 7 years.
In case anyone reading this is scared that they could suddenly find council tenants ensconced in their precious holiday home, I should emphasise that a EDMO can only be made with the approval of an independent property tribunal, which must first be satisfied that the property concerned has been unoccupied for at least 6 months, and that none of the various exceptions apply. Holiday homes, for example, are exempt. So too are properties that are subject to probate as a result of bereavement, and those that are genuinely on the market for sale or to let. In any case, EDMOs can always be terminated early if the owners decide they want to sell, or live there themselves.
If, on the other hand, the property you are concerned about is still occupied, then I’m afraid your only real option is to try and persuade the people living there to get things sorted. If he/she/they won’t co-operate, then there’s not really very much else you can do, unless the state of the property is so bad that it is actually dangerous to passers-by and neighbours, or if it is creating a serious nuisance or health hazard – for example, if it is infested with rats. Then, the local authority may be able to step in.
For further information on selling buying renting or auctions go to : www.trustintudor.co.uk
Wednesday 1 September 2010
What is a shared equity scheme ?
These days, it is frequently one of the conditions of planning permission being granted for new residential developments (under what is called a Section 106 Agreement) that they must include a certain percentage of units designated for social housing. While some of these will be set aside to meet general social needs, a proportion is usually earmarked for purchase on preferential terms – either specifically for the benefit of key workers such as nurses or policemen, or for those on low incomes and lacking the hefty deposits which lenders now generally demand. Shared equity is the preferred mechanism for helping the latter group – people who for one reason or another wouldn’t otherwise be able to afford home ownership.
As the name implies, shared equity basically allows someone to purchase a percentage share in a property, while paying rent on the remainder – usually to a housing association. In most cases only a very small deposit will be required, if any at all.
How does it work? Well, to keep the sums simple, let’s look at a property valued at £100,000. The buyer takes out, let us say, a £50,000 mortgage to purchase half of the equity, and pays rent on the remaining half. If this sounds more expensive than repaying a full £100,000 mortgage, it’s worth remembering that the rent payable in these cases is not based on normal market rates, but on the prevailing rate for social housing in the area concerned, which is naturally a lot lower.
But what happens if or when you want to move, and you only own half of your current home? Well, the answer is that you sell your half pretty much in the normal way – except for the fact that the purchaser must be acceptable to the housing association.
A variation on this basic model exists whereby you may be able to buy a bigger and bigger share of the property as your own income level increases. This is known as “stair-casing.”
As the name implies, shared equity basically allows someone to purchase a percentage share in a property, while paying rent on the remainder – usually to a housing association. In most cases only a very small deposit will be required, if any at all.
How does it work? Well, to keep the sums simple, let’s look at a property valued at £100,000. The buyer takes out, let us say, a £50,000 mortgage to purchase half of the equity, and pays rent on the remaining half. If this sounds more expensive than repaying a full £100,000 mortgage, it’s worth remembering that the rent payable in these cases is not based on normal market rates, but on the prevailing rate for social housing in the area concerned, which is naturally a lot lower.
But what happens if or when you want to move, and you only own half of your current home? Well, the answer is that you sell your half pretty much in the normal way – except for the fact that the purchaser must be acceptable to the housing association.
A variation on this basic model exists whereby you may be able to buy a bigger and bigger share of the property as your own income level increases. This is known as “stair-casing.”
Friday 20 August 2010
Help. I want to sell in order to buy a bigger place.
How can I do this when it appears prices might be falling?
Understandably, everyone wants to get the best possible price for their home - but the main reason why prices are falling is that people are still asking too much initially. Indeed, 30%of the properties listed on Rightmove have already had to cut prices.
What’s to be done? Well, at the end of the day what really matters is not the price you can get for your existing property, but the difference between that and what you want to buy. That might sound a bit harsh, but believe me, with prices falling, this is actually the ideal time to trade up to a larger property.
How so? Just to keep the sums easy, let’s say your current home is worth £200,000, while the place you want to buy is valued at £300,000, a difference of £100,000. Now, let’s assume that prices fall by 10%. Your current property is now worth £180,000, but the one you want to buy is only £270,000. The difference has shrunk to £90,000 – and you are potentially £10,000 better off. Voilà!
As for achieving a successful sale in the current market, the key thing you need to do is break the cycle of over-valuation. So, if you price your home realistically – which as we all know is agent-speak for slightly below current market value – you will very quickly get an offer that you can park while you go looking for a place to buy. (And before you protest that I’m just trying to persuade you to let your current property go for a song, let’s not forget that this is taking place against a background of falling prices anyway – so all you will be doing is putting yourself ahead of the game, and therefore in a stronger position!)
One highly effective way of breaking the cycle is to offer your home for sale on the basis of “offers in excess of” a minimum acceptable price. By effectively turning the market on its head, this approach not only helps generate higher levels of interest, but also tends to attract the more serious, committed buyers. Result: you could well find two or more bidding against each other - and end up with a very acceptable price indeed!
For more information on selling, buying,renting or property auctions go to : www.trustintudor.co.uk
Understandably, everyone wants to get the best possible price for their home - but the main reason why prices are falling is that people are still asking too much initially. Indeed, 30%of the properties listed on Rightmove have already had to cut prices.
What’s to be done? Well, at the end of the day what really matters is not the price you can get for your existing property, but the difference between that and what you want to buy. That might sound a bit harsh, but believe me, with prices falling, this is actually the ideal time to trade up to a larger property.
How so? Just to keep the sums easy, let’s say your current home is worth £200,000, while the place you want to buy is valued at £300,000, a difference of £100,000. Now, let’s assume that prices fall by 10%. Your current property is now worth £180,000, but the one you want to buy is only £270,000. The difference has shrunk to £90,000 – and you are potentially £10,000 better off. Voilà!
As for achieving a successful sale in the current market, the key thing you need to do is break the cycle of over-valuation. So, if you price your home realistically – which as we all know is agent-speak for slightly below current market value – you will very quickly get an offer that you can park while you go looking for a place to buy. (And before you protest that I’m just trying to persuade you to let your current property go for a song, let’s not forget that this is taking place against a background of falling prices anyway – so all you will be doing is putting yourself ahead of the game, and therefore in a stronger position!)
One highly effective way of breaking the cycle is to offer your home for sale on the basis of “offers in excess of” a minimum acceptable price. By effectively turning the market on its head, this approach not only helps generate higher levels of interest, but also tends to attract the more serious, committed buyers. Result: you could well find two or more bidding against each other - and end up with a very acceptable price indeed!
For more information on selling, buying,renting or property auctions go to : www.trustintudor.co.uk
Tuesday 17 August 2010
How useful are the energy performance and environmental impact charts carried in property details?
First, it’s worth bearing in mind that these bar charts, with their A-G ratings scored from 1 to 100, are only designed to give a quick at-a-glance summary of the full 6-page Energy Performance Certificate (EPC), which contains a lot more information, including detailed recommendations on how the ratings can be improved.
As for how useful they are, however, that is a rather complex issue. The official line, and the one supported by those at the greener end of the spectrum, is that anything which increases awareness of the energy efficiency and environmental impact of a property has got to be a good idea. You may be interested to know, for example, that the average home in Britain currently scores 46 out of a possible 100 (which equates to an E-rating) - so anything higher puts you on the side of the angels. And let’s face it, if you’re buying, and you have a choice between 2 more or less identical properties, - except that one costs £1000 to heat, and the other £500 – then this certainly ought to affect your purchase.
On the other hand, there is little evidence that this is actually happening in practice – at least, not yet. After all, there is a lot more to choosing a home than the cost of heating it. Very few buyers are going to reject a property that they like and can afford, simply because it has a “G” energy rating. Nor, in the real world, are there any guarantees that the proud new owners of such a property will immediately rush out and make the recommended improvements in order to reduce their carbon footprint.
There is also the argument that most of us already know all about the benefits of double glazing, cavity wall insulation and the like. Whether EPCs really add that much to the debate is therefore, at the very least, open to question.
All of this may of course may change in the future, as we all become (or are forced to become) more environmentally aware. But as things currently stand, it’s hard to argue that these ratings have much more than symbolic value.
For more information on buying selling renting or auctions go to : www.trustintudor.co.uk
As for how useful they are, however, that is a rather complex issue. The official line, and the one supported by those at the greener end of the spectrum, is that anything which increases awareness of the energy efficiency and environmental impact of a property has got to be a good idea. You may be interested to know, for example, that the average home in Britain currently scores 46 out of a possible 100 (which equates to an E-rating) - so anything higher puts you on the side of the angels. And let’s face it, if you’re buying, and you have a choice between 2 more or less identical properties, - except that one costs £1000 to heat, and the other £500 – then this certainly ought to affect your purchase.
On the other hand, there is little evidence that this is actually happening in practice – at least, not yet. After all, there is a lot more to choosing a home than the cost of heating it. Very few buyers are going to reject a property that they like and can afford, simply because it has a “G” energy rating. Nor, in the real world, are there any guarantees that the proud new owners of such a property will immediately rush out and make the recommended improvements in order to reduce their carbon footprint.
There is also the argument that most of us already know all about the benefits of double glazing, cavity wall insulation and the like. Whether EPCs really add that much to the debate is therefore, at the very least, open to question.
All of this may of course may change in the future, as we all become (or are forced to become) more environmentally aware. But as things currently stand, it’s hard to argue that these ratings have much more than symbolic value.
For more information on buying selling renting or auctions go to : www.trustintudor.co.uk
Saturday 14 August 2010
Demand more First Time Buyers mortgages campaign gathers pace
More and more people are joining the above campaign to get the Government to take note and change their thinking on how to revive the property market.
Everyone agrees first time buyers are needed for the housing market to revive and yet all the Governments attempts to get the banks lending have failed. Despite the banks stating they are trying, everyone involved in the property industry knows that the current mortgage deals offered are unrealistic. Either the interest rates are to high, the admin fees punitive or reference criteria is ridiculously hard.
Rather than the Government pouring in even more money into the banks in an attempt to get the FTB mortgage market going, they could circumvent them completely by re introducing local council mortgages.
There would be several advantages to this approach
1) Lending on sensible criteria if the mortgages were granted on sensible multiples of income, realistic levels of deposits and referencing criteria. Well placed first time buyers would be able to get on the property ladder without over inflating house prices. It would also mean mortgage decisions would be made away from commercial market pressures.
2) Long term fixed rate mortgages would help avoid the difficulties caused by the fluctuations in interest rates. These can result in problems with mortgage repayments and repossessions.
3) It could be introduced straight away no additional legislation would be needed as councils already have powers to do it. During the 1960’s local council mortgages were common place, for that to happen again the Government would need to relax the rules on how the council raised the money to lend by amending existing laws.
4) Reduce council housing benefit costs a more stable mortgage market would mean more first time buyers could provide housing for themselves. Less people would fall into difficulties and be made homeless or forced to rent
5) No added burden on council tax payers as the mortgage support would be serviced by the loan.
6) Banks would fall into line with mortgages being provided from another source outside their control the banks would soon change their attitude towards sensible lending.
Join the campaign by joining the group on Facebook or on LinkedIn together we can make the Government act
Everyone agrees first time buyers are needed for the housing market to revive and yet all the Governments attempts to get the banks lending have failed. Despite the banks stating they are trying, everyone involved in the property industry knows that the current mortgage deals offered are unrealistic. Either the interest rates are to high, the admin fees punitive or reference criteria is ridiculously hard.
Rather than the Government pouring in even more money into the banks in an attempt to get the FTB mortgage market going, they could circumvent them completely by re introducing local council mortgages.
There would be several advantages to this approach
1) Lending on sensible criteria if the mortgages were granted on sensible multiples of income, realistic levels of deposits and referencing criteria. Well placed first time buyers would be able to get on the property ladder without over inflating house prices. It would also mean mortgage decisions would be made away from commercial market pressures.
2) Long term fixed rate mortgages would help avoid the difficulties caused by the fluctuations in interest rates. These can result in problems with mortgage repayments and repossessions.
3) It could be introduced straight away no additional legislation would be needed as councils already have powers to do it. During the 1960’s local council mortgages were common place, for that to happen again the Government would need to relax the rules on how the council raised the money to lend by amending existing laws.
4) Reduce council housing benefit costs a more stable mortgage market would mean more first time buyers could provide housing for themselves. Less people would fall into difficulties and be made homeless or forced to rent
5) No added burden on council tax payers as the mortgage support would be serviced by the loan.
6) Banks would fall into line with mortgages being provided from another source outside their control the banks would soon change their attitude towards sensible lending.
Join the campaign by joining the group on Facebook or on LinkedIn together we can make the Government act
Saturday 31 July 2010
Southend property market up date for July
Sales
The land registry figures released yesterday show that house prices around the UK barely moved. The percentage changed for June was just 0.1%, making the national average house price £166,072. The annual rate of change across the country is now 8.4%.
Southend has faired rather better with house prices rising slightly more in June by 0.6% making the annual increase 14.1% the average house price in Southend is now £157,438. We can break the market down further and see the average figures for each sector.
Detached £329,714 semi £206,509 Terrace £154,467 Flats £109,746.
If we compare the figures to the top of the market in June 2008 the average of all property was £170,339 and the different sectors were
Detached £356,733 Semi £223,431 Terrace £167,125 Flats £118,739
To the lowest point in June 2009 where the average of all was £137,966 and
Detached £288,934 Semi £180,967 Terrace £135,362 Flats £96,172
You can see clearly the U shape recovery in Southend house prices and how much we are off the top of the market we still are in all sectors.
It is also useful to look at the average property price for 2010 which shows the acceleration in prices between March and May.
January £151,254 February £151, 572 March £153,752 April £154,403 May £156,525 June £157,438
So what is likely to happen to prices over the next few months? At Tudor we have seen the market slow in activity during July the same as in June, with fewer buyers viewing properties. Those that have been out looking are making decisions quicker but are making offers substantially below the asking prices. I would not be surprised that when the next sets of figures are released from the land registry they show a fall in prices across the Southend area. Couple this with the possible rise in repossessions during the remainder of the year, my advice to anyone selling is to seriously consider any offer from a well placed buyer, even if it is below the figure you were hoping for. The reason being is that once you have an interested party in your property you are in a much stronger position to go and negotiate on your next purchase. It is important to remember it is the difference in the two prices that matters not what price you obtain for your sale.
With this approach and coupled with an offer in excess strategy to the market Tudor’s sellers have been able to sell, move and at a lower cost.
The Office for National Statistics have just up dated their figures which now show to June 2009, Southend has a population of 164,200, the East of England has 5,766,600residents and the total UK population is 51,809,700.
Rental
Recent findings have shown that there has been an increase in the number of tenants looking for properties to rent.
According to a report released in July, 16 per cent more tenants signed up to rent accommodation during the second quarter of 2010.
Research also found that June saw the greatest rise in the number of tenants looking to rent properties, with more than 18,000 people registering an interest in rental accommodation in one month alone.
It appears demand will keep on increasing and supply is lagging behind it, so the pressure on rents will go up over time.
This is good news for landlords as an increase in demand for properties is likely to benefit their rental incomes which will help off set any future rises in interest rates.
FindaProperty's research supports this after it revealed that rents increased by 2.3 per cent in June, taking the average rental price to £839 across the UK.
Mortgages
People who bought houses for sale in May paid the lowest average proportion of income on their mortgage repayments in 35 years, it has been found.
According to research from the Council of Mortgage Lenders (CML), the proportion of income spent on mortgage repayments in May was 9.5 per cent, while in April it was 9.6 per cent.
Though this drop is small, in comparison with May 2009's figure of 11.4 per cent, it has fallen considerably over the last year.
The Bank of England's Credit Conditions Survey, which suggested that mortgage lenders are restricting how much money they let people take out, will not affect the demand among people who want loans.
Alan Kirkman FNAEA
Director
Tudor Estates
29th July 2010
The land registry figures released yesterday show that house prices around the UK barely moved. The percentage changed for June was just 0.1%, making the national average house price £166,072. The annual rate of change across the country is now 8.4%.
Southend has faired rather better with house prices rising slightly more in June by 0.6% making the annual increase 14.1% the average house price in Southend is now £157,438. We can break the market down further and see the average figures for each sector.
Detached £329,714 semi £206,509 Terrace £154,467 Flats £109,746.
If we compare the figures to the top of the market in June 2008 the average of all property was £170,339 and the different sectors were
Detached £356,733 Semi £223,431 Terrace £167,125 Flats £118,739
To the lowest point in June 2009 where the average of all was £137,966 and
Detached £288,934 Semi £180,967 Terrace £135,362 Flats £96,172
You can see clearly the U shape recovery in Southend house prices and how much we are off the top of the market we still are in all sectors.
It is also useful to look at the average property price for 2010 which shows the acceleration in prices between March and May.
January £151,254 February £151, 572 March £153,752 April £154,403 May £156,525 June £157,438
So what is likely to happen to prices over the next few months? At Tudor we have seen the market slow in activity during July the same as in June, with fewer buyers viewing properties. Those that have been out looking are making decisions quicker but are making offers substantially below the asking prices. I would not be surprised that when the next sets of figures are released from the land registry they show a fall in prices across the Southend area. Couple this with the possible rise in repossessions during the remainder of the year, my advice to anyone selling is to seriously consider any offer from a well placed buyer, even if it is below the figure you were hoping for. The reason being is that once you have an interested party in your property you are in a much stronger position to go and negotiate on your next purchase. It is important to remember it is the difference in the two prices that matters not what price you obtain for your sale.
With this approach and coupled with an offer in excess strategy to the market Tudor’s sellers have been able to sell, move and at a lower cost.
The Office for National Statistics have just up dated their figures which now show to June 2009, Southend has a population of 164,200, the East of England has 5,766,600residents and the total UK population is 51,809,700.
Rental
Recent findings have shown that there has been an increase in the number of tenants looking for properties to rent.
According to a report released in July, 16 per cent more tenants signed up to rent accommodation during the second quarter of 2010.
Research also found that June saw the greatest rise in the number of tenants looking to rent properties, with more than 18,000 people registering an interest in rental accommodation in one month alone.
It appears demand will keep on increasing and supply is lagging behind it, so the pressure on rents will go up over time.
This is good news for landlords as an increase in demand for properties is likely to benefit their rental incomes which will help off set any future rises in interest rates.
FindaProperty's research supports this after it revealed that rents increased by 2.3 per cent in June, taking the average rental price to £839 across the UK.
Mortgages
People who bought houses for sale in May paid the lowest average proportion of income on their mortgage repayments in 35 years, it has been found.
According to research from the Council of Mortgage Lenders (CML), the proportion of income spent on mortgage repayments in May was 9.5 per cent, while in April it was 9.6 per cent.
Though this drop is small, in comparison with May 2009's figure of 11.4 per cent, it has fallen considerably over the last year.
The Bank of England's Credit Conditions Survey, which suggested that mortgage lenders are restricting how much money they let people take out, will not affect the demand among people who want loans.
Alan Kirkman FNAEA
Director
Tudor Estates
29th July 2010
Wednesday 21 July 2010
We have found our ideal property but it seems to have a damp problem, should we avoid it ?
With the current increase in the amount of property on the market, relative to the number of buyers willing or able to take the plunge, it’s understandably tempting to walk away and look for something else.
On the other hand…if this property really is perfect for your needs, then I wouldn’t rule it out altogether. Obviously, I haven’t seen it for myself – and in any case, I’m no expert on these matters. Nevertheless, it sounds to me as though this could be nothing more than a simple condensation problem. This is actually quite common with older properties that have been comprehensively modernised, and ironically it’s often the double glazing that is to blame.
The thing you need to remember about older properties is that in their original state they were notoriously draughty. A combination of ill-fitting sash windows and doors, plus open fires in most rooms, ensured that these places basically leaked air like a sieve. This obviously made them difficult to heat – but it also meant that there was a plentiful supply of fresh air to stop the build-up of warm, moisture-laden air. Result: little or no condensation.
Contrast that with the situation today, when we try to make our homes as airtight as possible in order to minimise energy consumption and wastage. Which is not too bad in a cavity-walled property built to modern insulation standards (although even here, you can still get condensation and even mould on window frames in winter). In older, solid-walled properties, however, the combination of highly effective heating, cold outer walls and little or no natural ventilation is almost a guaranteed recipe for serious condensation problems – particularly in kitchens and bathrooms.
Hence, I suspect, the smell of damp in the property you recently viewed – in which case, it is easily cured by improving the ventilation. Obviously, you would need to get it thoroughly checked out by a surveyor, or even a damp proofing expert. Nevertheless, I’d be inclined to give the place the benefit of the doubt and make an offer. After all, even in times like these, ideal homes don’t turn up all that often!
On the other hand…if this property really is perfect for your needs, then I wouldn’t rule it out altogether. Obviously, I haven’t seen it for myself – and in any case, I’m no expert on these matters. Nevertheless, it sounds to me as though this could be nothing more than a simple condensation problem. This is actually quite common with older properties that have been comprehensively modernised, and ironically it’s often the double glazing that is to blame.
The thing you need to remember about older properties is that in their original state they were notoriously draughty. A combination of ill-fitting sash windows and doors, plus open fires in most rooms, ensured that these places basically leaked air like a sieve. This obviously made them difficult to heat – but it also meant that there was a plentiful supply of fresh air to stop the build-up of warm, moisture-laden air. Result: little or no condensation.
Contrast that with the situation today, when we try to make our homes as airtight as possible in order to minimise energy consumption and wastage. Which is not too bad in a cavity-walled property built to modern insulation standards (although even here, you can still get condensation and even mould on window frames in winter). In older, solid-walled properties, however, the combination of highly effective heating, cold outer walls and little or no natural ventilation is almost a guaranteed recipe for serious condensation problems – particularly in kitchens and bathrooms.
Hence, I suspect, the smell of damp in the property you recently viewed – in which case, it is easily cured by improving the ventilation. Obviously, you would need to get it thoroughly checked out by a surveyor, or even a damp proofing expert. Nevertheless, I’d be inclined to give the place the benefit of the doubt and make an offer. After all, even in times like these, ideal homes don’t turn up all that often!
Monday 5 July 2010
Why would an estate agent suggest I get a credit card ?
I’m rather surprised that the agent didn’t explain – but there we are! Anyway, this is all about credit rating, which is part and parcel of the process of getting a mortgage. When you apply for any kind of loan – be it a mortgage or anything else – the lender will immediately check your credit score. These scores obviously take a variety of different factors into account – for example, whether your name appears on the electoral role or not. Nevertheless, strange as it may seem, the fact that you are careful with money, and have never had any sort of credit agreements or credit cards before, can actually count against you. Why? Well, basically because credit ratings are calculated by computer, rather than by a human being capable of making common sense judgements - and as far as the computer is concerned, a good credit record is invariably better than no record at all.
So, that’s why it’s not a bad idea to get a credit card, to use it regularly – for all your groceries, for example – and to pay it off in full each month. That way, you get a good credit history (even though you don’t actually need it!), the computer’s happy, and you end up with a higher credit rating – which in turn means that a lender will look even more favourably on your mortgage application. Not that I’m suggesting that you would necessarily have problems in any case. But, particularly at the moment, when first-time buyer mortgages especially can be quite hard to come by, it makes sense to ensure that you tick every conceivable box!
Finally, I should emphasise that this is only good advice for someone like you, who clearly takes a highly responsible attitude towards money matters. It most definitely doesn’t apply to everyone. The last thing any responsible estate agent or mortgage advisor would do is to suggest that everyone who comes through their door looking for a mortgage should start racking up credit card bills!
For more information on buying, selling or renting go to :
www.trustintudor.co.uk
So, that’s why it’s not a bad idea to get a credit card, to use it regularly – for all your groceries, for example – and to pay it off in full each month. That way, you get a good credit history (even though you don’t actually need it!), the computer’s happy, and you end up with a higher credit rating – which in turn means that a lender will look even more favourably on your mortgage application. Not that I’m suggesting that you would necessarily have problems in any case. But, particularly at the moment, when first-time buyer mortgages especially can be quite hard to come by, it makes sense to ensure that you tick every conceivable box!
Finally, I should emphasise that this is only good advice for someone like you, who clearly takes a highly responsible attitude towards money matters. It most definitely doesn’t apply to everyone. The last thing any responsible estate agent or mortgage advisor would do is to suggest that everyone who comes through their door looking for a mortgage should start racking up credit card bills!
For more information on buying, selling or renting go to :
www.trustintudor.co.uk
Friday 2 July 2010
What is the difference between verticle and horizontal leases ?
These aren’t actual legal terms, but simply a convenient way of describing the two different ways in which responsibility for a property divided into flats is split amongst the lease-holders. Thus, horizontal leases are those in which the property concerned is divided from left to right, through the middle, while vertical leases, as the name implies, divide the property equally from top to bottom.
Taking the case of a two-story house split into two flats:
Where leases divide the property horizontally, the leaseholder on the first floor is responsible for maintaining everything above the line – for example, the roof - while the ground floor leaseholder is responsible for the drains.
Where the division is vertical, both leaseholders have an equal share in all such liabilities.
The overwhelming majority of new leases are of the vertical type. However, there are still some horizontal ones about, since they were quite popular in the 60s and 70s, when leases were often granted for 199 or even 999 years. Generally speaking, you should try to avoid them at all costs, since real difficulties can arise – for example, if you have a landlord or freeholder who cannot be traced, and the other leaseholder doesn’t want to do the work required on, say, the roof. In that case, you can encounter major problems in trying to get the work done at all.
Most vertical leases on the other hand will clearly state that the freeholder is responsible for arranging to have any remedial work done, while the leaseholders are responsible for paying for it. However, it is common practice for the leaseholders to get together and solve any problems between them.
Needless to say, leases don’t state whether they are horizontal or vertical - but you can easily figure out which type it is by studying the list of responsibilities.
For more information on buying, selling or letting a property go to : www.trustintudor.co.uk
Taking the case of a two-story house split into two flats:
Where leases divide the property horizontally, the leaseholder on the first floor is responsible for maintaining everything above the line – for example, the roof - while the ground floor leaseholder is responsible for the drains.
Where the division is vertical, both leaseholders have an equal share in all such liabilities.
The overwhelming majority of new leases are of the vertical type. However, there are still some horizontal ones about, since they were quite popular in the 60s and 70s, when leases were often granted for 199 or even 999 years. Generally speaking, you should try to avoid them at all costs, since real difficulties can arise – for example, if you have a landlord or freeholder who cannot be traced, and the other leaseholder doesn’t want to do the work required on, say, the roof. In that case, you can encounter major problems in trying to get the work done at all.
Most vertical leases on the other hand will clearly state that the freeholder is responsible for arranging to have any remedial work done, while the leaseholders are responsible for paying for it. However, it is common practice for the leaseholders to get together and solve any problems between them.
Needless to say, leases don’t state whether they are horizontal or vertical - but you can easily figure out which type it is by studying the list of responsibilities.
For more information on buying, selling or letting a property go to : www.trustintudor.co.uk
Thursday 24 June 2010
What effect if any will the Chancellor’s “Emergency Budget” have on the housing market?
Happily, very little – as far as one can tell. Of course, this wasn’t a normal budget in any sense of the word. However, as with any budget – emergency or not - no news is almost invariably good news!
As far as specifics are concerned, the increase in VAT to 20% from January next year admittedly does mean that fees and other costs associated with buying and selling property will rise slightly. Nevertheless, the really big worry - that Capital Gains Tax would be hiked to 40%, with the dramatic effect that might have had on the market – thankfully turned out to be groundless. Yes, higher-rate taxpayers will now have to pay CGT at 28%, but that isn’t so high as to trigger a wholesale stampede away from property as an investment. Meanwhile, of course, there will be no effect whatsoever on standard rate taxpayers, who will continue to pay CGT at 18%, as before.
Indeed – insofar as there was any good news for anyone - the Chancellor seemed positively determined to lavish most of it on the property sector, by reinstating the tax breaks on holiday lets scrapped by the previous Government. This means that one of the main tax reasons for owning a furnished holiday let remains the fact that owners can offset any losses against other income.
So, all in all, I believe the property sector got off pretty lightly indeed in the budget.
Moreover…when you bear in mind that these measures come hard on the heels of the Conservative’s pre-election commitment to raising the Stamp Duty threshold permanently to £250,000 for first time buyers – and, of course, the scrapping of Home Information Packs immediately they came into power – I actually think it’s been a pretty good couple of months for the property market. Add to that the fact that all the uncertainty surrounding both the election and the much-trumpeted emergency budget itself is now finally behind us, and I wouldn’t be at all surprised to see the market really start to take off.
As far as specifics are concerned, the increase in VAT to 20% from January next year admittedly does mean that fees and other costs associated with buying and selling property will rise slightly. Nevertheless, the really big worry - that Capital Gains Tax would be hiked to 40%, with the dramatic effect that might have had on the market – thankfully turned out to be groundless. Yes, higher-rate taxpayers will now have to pay CGT at 28%, but that isn’t so high as to trigger a wholesale stampede away from property as an investment. Meanwhile, of course, there will be no effect whatsoever on standard rate taxpayers, who will continue to pay CGT at 18%, as before.
Indeed – insofar as there was any good news for anyone - the Chancellor seemed positively determined to lavish most of it on the property sector, by reinstating the tax breaks on holiday lets scrapped by the previous Government. This means that one of the main tax reasons for owning a furnished holiday let remains the fact that owners can offset any losses against other income.
So, all in all, I believe the property sector got off pretty lightly indeed in the budget.
Moreover…when you bear in mind that these measures come hard on the heels of the Conservative’s pre-election commitment to raising the Stamp Duty threshold permanently to £250,000 for first time buyers – and, of course, the scrapping of Home Information Packs immediately they came into power – I actually think it’s been a pretty good couple of months for the property market. Add to that the fact that all the uncertainty surrounding both the election and the much-trumpeted emergency budget itself is now finally behind us, and I wouldn’t be at all surprised to see the market really start to take off.
Friday 18 June 2010
With all the technology that’s available today, why would anyone use an estate agent, instead of handling the sale themselves?
Of course, it’s not impossible to sell your own home without recourse to a conventional estate agent. Despite this, however, only a tiny fraction of people actually do so. Nor have sellers exactly rushed to patronise those so-called internet agents who offer a basic, fixed-fee package.
Why is this? Well, for the simple reason that that there is a whole lot more to selling your home than sticking a homemade board in your front garden and an ad in your local paper – or online, come to that. Even assuming that you actually succeed in generating some enquiries, how do you sort the wheat from the chaff, the serious applicants from the complete timewasters? Leaving aside the security implications of letting complete strangers into your home, do you really have the time or the knowledge to handle all the viewings yourself, answer any queries and present your home in the best possible light? How do you qualify would-be buyers, to ascertain their financial circumstances and their ability to proceed with the purchase? Where do you turn for the expert advice and support you need to deal with all the stressful situations that can arise – for example, when your buyers come back demanding a price reduction on the basis of a problem unearthed by their survey? How do you go about monitoring the progress of the sale, and how do you deal with delays with other transactions up and down the chain? How to you understand the legal process and deal with solicitors ?
In fact, the more you think about it, the more amazing it is that anyone should want to try and handle all this on their own.
For more information on selling preparing your property for sale go to : www.trustintudor.co.uk
Why is this? Well, for the simple reason that that there is a whole lot more to selling your home than sticking a homemade board in your front garden and an ad in your local paper – or online, come to that. Even assuming that you actually succeed in generating some enquiries, how do you sort the wheat from the chaff, the serious applicants from the complete timewasters? Leaving aside the security implications of letting complete strangers into your home, do you really have the time or the knowledge to handle all the viewings yourself, answer any queries and present your home in the best possible light? How do you qualify would-be buyers, to ascertain their financial circumstances and their ability to proceed with the purchase? Where do you turn for the expert advice and support you need to deal with all the stressful situations that can arise – for example, when your buyers come back demanding a price reduction on the basis of a problem unearthed by their survey? How do you go about monitoring the progress of the sale, and how do you deal with delays with other transactions up and down the chain? How to you understand the legal process and deal with solicitors ?
In fact, the more you think about it, the more amazing it is that anyone should want to try and handle all this on their own.
For more information on selling preparing your property for sale go to : www.trustintudor.co.uk
Friday 11 June 2010
Southend property market up date June 2010
Sales
The month of May saw record numbers of homes sold and new properties coming to the market in the Southend area and across Essex. At Tudor we saw significant rises in the level of activity; this was also seen by other agents in the wider area.
The Nationwide survey showed that house prices increased by 0.5 per cent during May. The rise may be due in part to the "honeymoon period" following the election of a new government as consumers begin to embrace a more stable economy. Plus the removal of HIPs has been a positive move in encouraging people to place their properties on the market
However prices are unlikely to keep rising as fast and at Tudor we expect them to even out over the coming year.
The Nationwide report also noted that the annual rate of house price inflation was 9.8 per cent. The report shows that the typical value of a dwelling stood at £169,162 last month, which was up from the £167,802 registered in April.
It is interesting to see following a drop of 19.3 per cent from their October 2007 peak, house prices have risen by 12.2 per cent and are now just 9.5 per cent below the October 2007 high.
Meanwhile, the Land Registry figures confirm that the average value of homes in England and Wales in March was up 9.7 per cent compared with the same period last year.
The new coalition government has also given positive endorsement of the housing market. Aspiration to home ownership will be encouraged, says housing minister Grant Shapps. In his first speech as housing minister, he said that “The age of aspiration was back,” and he underlined the importance of first-time buyers to the market .He said “It was not right to deny a new generation something his own generation had enjoyed, the chance of home ownership.”
Shapps went on to say, ”There are an estimated 1.4m households who aspire to own a home but are unable to do so because of house prices and mortgage availability. There are hundreds of thousands of people in rented accommodation, or living with parents, who yearn to be first-time buyers. It is now true that the average age of the first-time buyer is 37. He said “The new Government would promote shared ownership schemes, and wanted to see more house building.” The government will give planning powers to local people. “We understand that the transition to a more open, transparent and democratic planning system is not entirely anxiety-free for many involved. But we know that there is no future in this centrally planned system which has so dramatically failed, delivering fewer homes now than during any peacetime year since 1924.”
At Tudor we believe the local housing market will remain strong in the medium to long term due to the continued investment in the areas infrastructure and the lack of land to build new homes for the increasing demand.
Rental
Certainly the demand for well priced and presented properties remains as strong as ever.
However, with the government’s announcement over possible changes in capital gains tax some landlords have taken the decision to bring forward the sale of their rental portfolio’s and avoid the risk in paying higher tax. This has been very limited in our experience and the majority of our investment clients are looking to expand their rental portfolios.
One note of caution should be sounded, a recent survey of 500 private landlords has shown that rental arrears have reached their highest level since the research began in 2006.The survey, by market research agency BDRC Continental, found that in the last 12 months, 34% of landlords have had tenants who fell into rental arrears. This shows the importance of dealing promptly and effectively with a potential problems and the need for experience in handling rent arrears. At Tudor we are happy to report that the small amounts of tenant arrears have not increased.
Auctions
Our auction in May proved very successful with all our available lots selling, maintaining our 100% sales record. More importantly for our vendors the prices obtained were either very close to or in excess of the estimated open market value. This confirms that our approach that realistic guide prices and reserves deliver the right investors to the auction sale. This in turn produces excellent results for anyone wanting to sell rental portfolios, land, commercial investments or freeholds.
Mortgage Market Update by Kit Thompson, Director, Amber Mortgage Solutions
There is some positive news so far this month, with a number of lenders reducing the cost of mortgage funding on fixed rate products, including Nationwide, Abbey, Alliance and Leicester. Nationwide has also shaved up to 96 basis points of some of their fixed rate products.
Platform are set to launch a new "couples" mortgage for joint borrowers, with preferential rates and income multiples, on the basis of joint mortgages historically performing better than single mortgages. Rates to be announced tomorrow, but are expected to be as low as 3.19% fixed, at 70% LTV.
In the secured loan market, NEMO have re launched second charge lending up to 85% LTV, an extremely positive sign that they believe property values can only be on the up. Coupled with this, they will now lend to self-employed up to 75% LTV (they formerly only considered employed applicants) and they also lowered the credit score on their 80% products, to allow more cases through.
The Mortgage Works (specialist intermediary lender of Nationwide) has also launched a new 'prime' mortgage range, available exclusively via mortgage brokers. TMW’s new prime range includes free valuation on purchases, capped trackers, early repayment charge free trackers, a range of cash-back
options and a lifetime variable rate product. Other highlights to the range include a two year early redemption charge free tracker from 2.99% up to 75% LTV, and a range of two, three, four, five and seven-year fixed rate mortgages from 2.59%.
The month of May saw record numbers of homes sold and new properties coming to the market in the Southend area and across Essex. At Tudor we saw significant rises in the level of activity; this was also seen by other agents in the wider area.
The Nationwide survey showed that house prices increased by 0.5 per cent during May. The rise may be due in part to the "honeymoon period" following the election of a new government as consumers begin to embrace a more stable economy. Plus the removal of HIPs has been a positive move in encouraging people to place their properties on the market
However prices are unlikely to keep rising as fast and at Tudor we expect them to even out over the coming year.
The Nationwide report also noted that the annual rate of house price inflation was 9.8 per cent. The report shows that the typical value of a dwelling stood at £169,162 last month, which was up from the £167,802 registered in April.
It is interesting to see following a drop of 19.3 per cent from their October 2007 peak, house prices have risen by 12.2 per cent and are now just 9.5 per cent below the October 2007 high.
Meanwhile, the Land Registry figures confirm that the average value of homes in England and Wales in March was up 9.7 per cent compared with the same period last year.
The new coalition government has also given positive endorsement of the housing market. Aspiration to home ownership will be encouraged, says housing minister Grant Shapps. In his first speech as housing minister, he said that “The age of aspiration was back,” and he underlined the importance of first-time buyers to the market .He said “It was not right to deny a new generation something his own generation had enjoyed, the chance of home ownership.”
Shapps went on to say, ”There are an estimated 1.4m households who aspire to own a home but are unable to do so because of house prices and mortgage availability. There are hundreds of thousands of people in rented accommodation, or living with parents, who yearn to be first-time buyers. It is now true that the average age of the first-time buyer is 37. He said “The new Government would promote shared ownership schemes, and wanted to see more house building.” The government will give planning powers to local people. “We understand that the transition to a more open, transparent and democratic planning system is not entirely anxiety-free for many involved. But we know that there is no future in this centrally planned system which has so dramatically failed, delivering fewer homes now than during any peacetime year since 1924.”
At Tudor we believe the local housing market will remain strong in the medium to long term due to the continued investment in the areas infrastructure and the lack of land to build new homes for the increasing demand.
Rental
Certainly the demand for well priced and presented properties remains as strong as ever.
However, with the government’s announcement over possible changes in capital gains tax some landlords have taken the decision to bring forward the sale of their rental portfolio’s and avoid the risk in paying higher tax. This has been very limited in our experience and the majority of our investment clients are looking to expand their rental portfolios.
One note of caution should be sounded, a recent survey of 500 private landlords has shown that rental arrears have reached their highest level since the research began in 2006.The survey, by market research agency BDRC Continental, found that in the last 12 months, 34% of landlords have had tenants who fell into rental arrears. This shows the importance of dealing promptly and effectively with a potential problems and the need for experience in handling rent arrears. At Tudor we are happy to report that the small amounts of tenant arrears have not increased.
Auctions
Our auction in May proved very successful with all our available lots selling, maintaining our 100% sales record. More importantly for our vendors the prices obtained were either very close to or in excess of the estimated open market value. This confirms that our approach that realistic guide prices and reserves deliver the right investors to the auction sale. This in turn produces excellent results for anyone wanting to sell rental portfolios, land, commercial investments or freeholds.
Mortgage Market Update by Kit Thompson, Director, Amber Mortgage Solutions
There is some positive news so far this month, with a number of lenders reducing the cost of mortgage funding on fixed rate products, including Nationwide, Abbey, Alliance and Leicester. Nationwide has also shaved up to 96 basis points of some of their fixed rate products.
Platform are set to launch a new "couples" mortgage for joint borrowers, with preferential rates and income multiples, on the basis of joint mortgages historically performing better than single mortgages. Rates to be announced tomorrow, but are expected to be as low as 3.19% fixed, at 70% LTV.
In the secured loan market, NEMO have re launched second charge lending up to 85% LTV, an extremely positive sign that they believe property values can only be on the up. Coupled with this, they will now lend to self-employed up to 75% LTV (they formerly only considered employed applicants) and they also lowered the credit score on their 80% products, to allow more cases through.
The Mortgage Works (specialist intermediary lender of Nationwide) has also launched a new 'prime' mortgage range, available exclusively via mortgage brokers. TMW’s new prime range includes free valuation on purchases, capped trackers, early repayment charge free trackers, a range of cash-back
options and a lifetime variable rate product. Other highlights to the range include a two year early redemption charge free tracker from 2.99% up to 75% LTV, and a range of two, three, four, five and seven-year fixed rate mortgages from 2.59%.
Monday 7 June 2010
What exactly are covenants?
A covenant is a binding legal obligation that comes with ownership of a particular property. Generally imposed by the original owner, it applies to the property itself and is therefore automatically passed down from owner to owner with the deeds, each time the property changes hands.
Since they are essentially private arrangements between individuals, covenants are not policed by local planning authorities. Instead, they are enforceable through the courts by the granting of an injunction.
Basically, a covenant stipulates specific things that the property-owner either must or must not do. An example of a so-called positive covenant might be an obligation to maintain the boundaries. Examples of typical restrictive covenants, on the other hand, include not being a nuisance to your neighbours and not carrying on any trade or business from the property.
These days, many covenants are little more than historical curiosities, reflecting the concerns of the original owners - often the church - or a way of life that is long gone. An inspection of the original deeds to your own property, for example, may well reveal that you are not permitted to extract water from the land for public sale, or that you are banned from keeping a horse and cart on the premises!
Realistically, of course, there’s probably little if any chance that you’d ever fall foul of such restrictions. Nor would they be likely to cause any major legal complications when it comes to buying or selling. Not all covenants are quite so quaint, however. It is not uncommon for residential estates, for example, to have a range of covenants placed on them by the original developer. These are usually designed to protect the look and amenity of the estate as a whole – for example, by stipulating that all front gardens must be unfenced, or that the parking of caravans is not permitted. Such covenants can be enforced by any resident against any of the others - and they often are.
If you are in any doubt regarding covenants on your property, the best thing to do is check your original deeds and/or consult a solicitor.
For further information on buying selling or renting property go to :
www.trustintudor.co.uk
Since they are essentially private arrangements between individuals, covenants are not policed by local planning authorities. Instead, they are enforceable through the courts by the granting of an injunction.
Basically, a covenant stipulates specific things that the property-owner either must or must not do. An example of a so-called positive covenant might be an obligation to maintain the boundaries. Examples of typical restrictive covenants, on the other hand, include not being a nuisance to your neighbours and not carrying on any trade or business from the property.
These days, many covenants are little more than historical curiosities, reflecting the concerns of the original owners - often the church - or a way of life that is long gone. An inspection of the original deeds to your own property, for example, may well reveal that you are not permitted to extract water from the land for public sale, or that you are banned from keeping a horse and cart on the premises!
Realistically, of course, there’s probably little if any chance that you’d ever fall foul of such restrictions. Nor would they be likely to cause any major legal complications when it comes to buying or selling. Not all covenants are quite so quaint, however. It is not uncommon for residential estates, for example, to have a range of covenants placed on them by the original developer. These are usually designed to protect the look and amenity of the estate as a whole – for example, by stipulating that all front gardens must be unfenced, or that the parking of caravans is not permitted. Such covenants can be enforced by any resident against any of the others - and they often are.
If you are in any doubt regarding covenants on your property, the best thing to do is check your original deeds and/or consult a solicitor.
For further information on buying selling or renting property go to :
www.trustintudor.co.uk
Wednesday 2 June 2010
Who can I turn to if I have a complaint about an estate agent ?
Under the Consumer Estate Agents and Redress Act (2007), which came into force in October 2008, all practising estate agents are obliged to belong to a redress scheme approved by the Office of Fair Trading. Currently, there are two such schemes: the Surveyors Ombudsman Service – which, as its name suggests, was set up under the auspices of the Royal Institution of Chartered Surveyors specifically to deal with complaints against its own members – and The Property Ombudsman, formerly known as the Ombudsman for Estate Agents Scheme, which covers all other agents. Although you will need to check which of these two schemes the firm in question belongs to, both are designed to fulfil broadly the same function – ie. to provide sellers and buyers alike with access to a free, fair, and above all independent, complaints handling and redress system.
In practice, this means that if you have a dispute with your agent, which cannot be satisfactorily resolved through the firm’s own complaints handling procedures, then you can take the matter to the relevant Ombudsman, who will consider it and arrive at a judgement. Where appropriate, he can even award compensation – in the case of The Property Ombudsman, up to a figure of £25,000. What’s more, although the agent concerned is bound by the Ombudsman’s decision, the complainant isn’t – so, if you’re still not happy, you’re free to take the matter further; for example, to court.
Of course, despite the legal requirement, it’s always possible that there may still be one or two rogue agents out there who don’t belong to either of the two approved schemes. Fortunately, however, they’re reasonably easy to spot: they won’t display the relevant logos on their shop windows or stationery, and they will probably be rather evasive if you ask them about their membership. They may even try to convince you that they belong to another “similar” scheme! Whether or not you decide to report such firms to your local Trading Standards Office is up to you. But at least it means you have a clear choice – between those agents who abide by laws specifically designed to provide you with real peace of mind, and those that don’t!
In practice, this means that if you have a dispute with your agent, which cannot be satisfactorily resolved through the firm’s own complaints handling procedures, then you can take the matter to the relevant Ombudsman, who will consider it and arrive at a judgement. Where appropriate, he can even award compensation – in the case of The Property Ombudsman, up to a figure of £25,000. What’s more, although the agent concerned is bound by the Ombudsman’s decision, the complainant isn’t – so, if you’re still not happy, you’re free to take the matter further; for example, to court.
Of course, despite the legal requirement, it’s always possible that there may still be one or two rogue agents out there who don’t belong to either of the two approved schemes. Fortunately, however, they’re reasonably easy to spot: they won’t display the relevant logos on their shop windows or stationery, and they will probably be rather evasive if you ask them about their membership. They may even try to convince you that they belong to another “similar” scheme! Whether or not you decide to report such firms to your local Trading Standards Office is up to you. But at least it means you have a clear choice – between those agents who abide by laws specifically designed to provide you with real peace of mind, and those that don’t!
Monday 24 May 2010
HIP's have definitely gone, so what about EPC's ?
According to the announcement made jointly last week by Eric Pickles, the new Secretary of State for Communities and Local Government, and Housing Minister Grant Shapps, compulsory HIPs are now a thing of the past. Or, to be more exact, they have been suspended with immediate effect, pending the introduction in due course of new legislation to abolish them altogether.
So no more having to fork out hundreds of pounds upfront for a HIP. No more having to wait for anything up to 5 working days for the thing to be compiled before your agent can start marketing your home.
You will still have to have an Energy Performance Certificate, or EPC, since these are a requirement of EU law for both sales and rental properties. Provided you have proof that one has been commissioned your agent can go ahead and market your home straight away.
So ends arguably one of the most ill-conceived and poorly-executed episodes in the history of the housing market. And yet things might have been very different. After all, most people both inside and outside the property industry agree that some reform of the buying and selling process is badly needed in order to make the whole thing quicker, more transparent and more certain. Next time, however, let’s hope that the Government thinks things through rather better, and takes a little more notice of the opinions of those who actually know what they’re talking about!
Meanwhile is, of course, impossible to tell for sure how much of a dampening effect HIPs had on the property market during their brief existence,over and above the wider effects of the credit crunch. Nevertheless, by doing away with all the extra cost and hassle at a stroke, this Government’s prompt action should definitely help put the current property recovery on a sounder footing. And that has got to be good news for everyone.
For further information on selling a property go to www.trustintudor.co.uk
So no more having to fork out hundreds of pounds upfront for a HIP. No more having to wait for anything up to 5 working days for the thing to be compiled before your agent can start marketing your home.
You will still have to have an Energy Performance Certificate, or EPC, since these are a requirement of EU law for both sales and rental properties. Provided you have proof that one has been commissioned your agent can go ahead and market your home straight away.
So ends arguably one of the most ill-conceived and poorly-executed episodes in the history of the housing market. And yet things might have been very different. After all, most people both inside and outside the property industry agree that some reform of the buying and selling process is badly needed in order to make the whole thing quicker, more transparent and more certain. Next time, however, let’s hope that the Government thinks things through rather better, and takes a little more notice of the opinions of those who actually know what they’re talking about!
Meanwhile is, of course, impossible to tell for sure how much of a dampening effect HIPs had on the property market during their brief existence,over and above the wider effects of the credit crunch. Nevertheless, by doing away with all the extra cost and hassle at a stroke, this Government’s prompt action should definitely help put the current property recovery on a sounder footing. And that has got to be good news for everyone.
For further information on selling a property go to www.trustintudor.co.uk
Monday 17 May 2010
Tudor property market up date .. What effect will coalition Goverment have on the property market ?
Basically, everything depends on sentiment; on confidence, or the lack of it. And, as far as the broader economic situation is concerned, this is - as always - very much in the lap of the gods (although unfortunately, they happen to be Greek gods on this occasion…) Nevertheless, the initial reaction by the financial markets to the election of Britain’s first coalition Government since the last war has been broadly positive.
In the longer run, what will matter most is the way the new Government tackles the enormous public sector deficit. And here too they seem to be making the right noises. Mervyn King, Governor of the Bank of England, and the man ultimately responsible for setting interest rates, has already voiced his general approval of the plans that have so far been announced, although everyone concedes that there is a lot more to do.
As for those issues more specifically related to the housing market, such as the future of Home Information Packs and reform of the Stamp Duty regime, neither appears to be considered important enough to be slated for early implementation. Interestingly, at the time of writing, the former shadow housing spokesman, Grant Shapps, has just been confirmed in the role of Housing Minister. However – unlike his numerous Labour predecessors – he will not have a seat in the Cabinet.
Nevertheless, when all’s said and done, the fact remains that the UK property market has proved itself pretty resilient up to now, in the face of what was widely regarded as the worse recession since the 1930's. Only 18 months ago, there were predictions that prices could decline by anything up to 30% from their 2007 peak, whereas in fact they are currently rising at 10% year on year, and are already nearly back to where they were at their height.
In Britain, the property market has its own built-in dynamic, with death, divorce, and growing and contracting family sizes all having an impact. It’s not just about economics. Nor is a little thing like a coalition Government likely to have any impact on the long-term stability of the market. Just ask all the wealthy Greeks who are apparently flocking to London to buy property in order to safeguard their money
In the longer run, what will matter most is the way the new Government tackles the enormous public sector deficit. And here too they seem to be making the right noises. Mervyn King, Governor of the Bank of England, and the man ultimately responsible for setting interest rates, has already voiced his general approval of the plans that have so far been announced, although everyone concedes that there is a lot more to do.
As for those issues more specifically related to the housing market, such as the future of Home Information Packs and reform of the Stamp Duty regime, neither appears to be considered important enough to be slated for early implementation. Interestingly, at the time of writing, the former shadow housing spokesman, Grant Shapps, has just been confirmed in the role of Housing Minister. However – unlike his numerous Labour predecessors – he will not have a seat in the Cabinet.
Nevertheless, when all’s said and done, the fact remains that the UK property market has proved itself pretty resilient up to now, in the face of what was widely regarded as the worse recession since the 1930's. Only 18 months ago, there were predictions that prices could decline by anything up to 30% from their 2007 peak, whereas in fact they are currently rising at 10% year on year, and are already nearly back to where they were at their height.
In Britain, the property market has its own built-in dynamic, with death, divorce, and growing and contracting family sizes all having an impact. It’s not just about economics. Nor is a little thing like a coalition Government likely to have any impact on the long-term stability of the market. Just ask all the wealthy Greeks who are apparently flocking to London to buy property in order to safeguard their money
Monday 10 May 2010
Is it really worth paying extra for a survey on top of the building society’s own valuation?
I would always advise anyone contemplating buying a property to commission their own survey. Why? Well, primarily because buying a home is the single biggest investment most of us ever make – so surely it’s just common sense to want to be reassured that everything is OK before we commit ourselves. Otherwise, there’s always the risk of encountering some nasty and probably expensive surprises, when it’s too late.
But isn’t that the job of the lender’s valuation? Well, no it isn’t. Remember, this is not a survey. Its sole purpose is to satisfy the lender that the property in question represents sufficient security for the loan. You may not even be given a copy of it.
So, the only way you as a buyer can be truly confident about the investment you are making is to commission your own survey. And in all but a relatively few cases where a full building survey may be more appropriate – for example, where a property is very old, or requires major structural repairs or alterations – the new-style RICS HomeBuyers Report should be perfectly adequate.
In its new guise, which was introduced on 1st April this year, the Homebuyer’s Report has been substantially redesigned in order to provide more information in a clearer, more easily-understood format. Together with a full description of the property, when it was built, the type of construction, and confirmation of the details contained in the Energy Performance Certificate, the new reports use a simple “traffic light” system to rate the condition of various key elements of the property. So, green means that no repairs are currently needed, yellow signifies that non-urgent defects have been identified, and a red indicates the presence of serious defects which need to be addressed, or issues that require further investigation, as a matter of urgency.
As far as price is concerned, this varies - depending on factors like the size, age and value of the property in question. Nevertheless, a typical mid-range report should probably cost in the region of £350-£500. In view of the peace of mind that such a report represents, this is a small price to pay!
For more information on buying, selling or renting a property go to
www.tudorestates.co.uk
But isn’t that the job of the lender’s valuation? Well, no it isn’t. Remember, this is not a survey. Its sole purpose is to satisfy the lender that the property in question represents sufficient security for the loan. You may not even be given a copy of it.
So, the only way you as a buyer can be truly confident about the investment you are making is to commission your own survey. And in all but a relatively few cases where a full building survey may be more appropriate – for example, where a property is very old, or requires major structural repairs or alterations – the new-style RICS HomeBuyers Report should be perfectly adequate.
In its new guise, which was introduced on 1st April this year, the Homebuyer’s Report has been substantially redesigned in order to provide more information in a clearer, more easily-understood format. Together with a full description of the property, when it was built, the type of construction, and confirmation of the details contained in the Energy Performance Certificate, the new reports use a simple “traffic light” system to rate the condition of various key elements of the property. So, green means that no repairs are currently needed, yellow signifies that non-urgent defects have been identified, and a red indicates the presence of serious defects which need to be addressed, or issues that require further investigation, as a matter of urgency.
As far as price is concerned, this varies - depending on factors like the size, age and value of the property in question. Nevertheless, a typical mid-range report should probably cost in the region of £350-£500. In view of the peace of mind that such a report represents, this is a small price to pay!
For more information on buying, selling or renting a property go to
www.tudorestates.co.uk
Tuesday 4 May 2010
Lab, Lib, Con what would they do about housing ?
The general election and the housing market
With the Election fast approaching, it's interesting to consider how the property market could be affected. Many have argued that housing policy should not simply be a footnote during the forthcoming General Election. The property industry is of profound importance to the UK economy, and it's vital to remember how much a healthy housing market is worth to the economy as a whole.
What are the main political parties proposing for the housing sector?
Labour
• Two year Stamp Duty holiday for First Time Buyers on residential transactions up to £250,000
• From April 2011 a new Stamp Duty top rate of 5% for properties over £1 million
• An extra £1.5 billion of funding brought forward to help build 110,000 new affordable homes
• Agreements with banks to lend £105 billion to homeowners over the next year
• Pressure on lenders to stave off the threat of repossessions
• New homes to be zero carbon by 2016
Conservative
• Permanently increase the Stamp Duty threshold for First Time Buyers
• Abolish Home Information Packs
• Reward councils for building more homes and promoting local economic growth
• Making it easier for social tenants to own or part-own their home
Liberal Democrats
• Good, simple and cheap homes to rent for those unable to buy
• Action on repossessions so that banks explore other options
• Creation of "Safe Smart" mortgages that protect buyers from negative equity
• Warmer and energy efficient homes throughout the UK
House price increased in March according to the Nationwide
The latest house price index from the Nationwide Building Society has revealed a 0.7% rise for the month of March compared with February.
The latest house price rise takes the annual increase to 9% with the average UK home costing £164,519.
Meanwhile, the Nationwide said prices rose by 1.6% in the three months to the end of March, compared with a 1.8% increase in the previous three months.
Martin Gahbauer, the Nationwide’s chief economist, comments: “The last two months are consistent with a relatively flat profile for house prices, and in line with the recent drops seen in buyer enquiries and house sales.”
He added: “Preliminary figures show that the number of loans taken out for house purchases failed to recover from January’s large dip, suggesting that weakness in house sales at the start of the year may have been due to more than just the snowy weather.”
Southend housing market activity
Sales
March saw a steady increase in the amount of new property coming onto the market which has continued into April. This has resulted in more choice for would be purchasers and as a consequence they have been taking longer to decide which properties to offer on. Recently this trend has seemed to have worked through the system with far more offers being received within the last week.
Mortgage criteria still is a major issue with clients being turned down for the smallest of reasons, such as late payment of bills, despite many having large deposits and requiring only 75 / 80 % loan to value. So while mortgages are more freely available those being able to take advantage of them are still relatively small.
Property prices are not following the national average with the average price showing virtually no change during the month. Many agents and sellers are still over valuing their properties in the hope they will attract that “special buyer” However this often results in either the property not selling or being withdrawn from the market. In some instances the property is reduced in price which gives the wrong signals to potential purchasers and can result in sellers being disappointed because they lose the property they want to buy.
Auctions
Interest in buying at auction remains strong especially in land with or without planning permission and rental portfolio’s with tenants in situ. Prices have been very buoyant but it requires sellers with a strong nerve as it is essential that a “come and get me” guide price and reserve is placed on the property or land so it attracts the serious investor into sales room.
Rental
There is continued strong demand from good quality tenants for all types of well presented properties. Vacancy levels are low with the average time to let a property being 4 days. Those tenants that are leaving are either renting larger properties or returning to live at home with parents while they save for a deposit to buy.
For further information on the property market log onto www.trustintudor.co.uk
or e mail alan@tudorestates.co.uk
With the Election fast approaching, it's interesting to consider how the property market could be affected. Many have argued that housing policy should not simply be a footnote during the forthcoming General Election. The property industry is of profound importance to the UK economy, and it's vital to remember how much a healthy housing market is worth to the economy as a whole.
What are the main political parties proposing for the housing sector?
Labour
• Two year Stamp Duty holiday for First Time Buyers on residential transactions up to £250,000
• From April 2011 a new Stamp Duty top rate of 5% for properties over £1 million
• An extra £1.5 billion of funding brought forward to help build 110,000 new affordable homes
• Agreements with banks to lend £105 billion to homeowners over the next year
• Pressure on lenders to stave off the threat of repossessions
• New homes to be zero carbon by 2016
Conservative
• Permanently increase the Stamp Duty threshold for First Time Buyers
• Abolish Home Information Packs
• Reward councils for building more homes and promoting local economic growth
• Making it easier for social tenants to own or part-own their home
Liberal Democrats
• Good, simple and cheap homes to rent for those unable to buy
• Action on repossessions so that banks explore other options
• Creation of "Safe Smart" mortgages that protect buyers from negative equity
• Warmer and energy efficient homes throughout the UK
House price increased in March according to the Nationwide
The latest house price index from the Nationwide Building Society has revealed a 0.7% rise for the month of March compared with February.
The latest house price rise takes the annual increase to 9% with the average UK home costing £164,519.
Meanwhile, the Nationwide said prices rose by 1.6% in the three months to the end of March, compared with a 1.8% increase in the previous three months.
Martin Gahbauer, the Nationwide’s chief economist, comments: “The last two months are consistent with a relatively flat profile for house prices, and in line with the recent drops seen in buyer enquiries and house sales.”
He added: “Preliminary figures show that the number of loans taken out for house purchases failed to recover from January’s large dip, suggesting that weakness in house sales at the start of the year may have been due to more than just the snowy weather.”
Southend housing market activity
Sales
March saw a steady increase in the amount of new property coming onto the market which has continued into April. This has resulted in more choice for would be purchasers and as a consequence they have been taking longer to decide which properties to offer on. Recently this trend has seemed to have worked through the system with far more offers being received within the last week.
Mortgage criteria still is a major issue with clients being turned down for the smallest of reasons, such as late payment of bills, despite many having large deposits and requiring only 75 / 80 % loan to value. So while mortgages are more freely available those being able to take advantage of them are still relatively small.
Property prices are not following the national average with the average price showing virtually no change during the month. Many agents and sellers are still over valuing their properties in the hope they will attract that “special buyer” However this often results in either the property not selling or being withdrawn from the market. In some instances the property is reduced in price which gives the wrong signals to potential purchasers and can result in sellers being disappointed because they lose the property they want to buy.
Auctions
Interest in buying at auction remains strong especially in land with or without planning permission and rental portfolio’s with tenants in situ. Prices have been very buoyant but it requires sellers with a strong nerve as it is essential that a “come and get me” guide price and reserve is placed on the property or land so it attracts the serious investor into sales room.
Rental
There is continued strong demand from good quality tenants for all types of well presented properties. Vacancy levels are low with the average time to let a property being 4 days. Those tenants that are leaving are either renting larger properties or returning to live at home with parents while they save for a deposit to buy.
For further information on the property market log onto www.trustintudor.co.uk
or e mail alan@tudorestates.co.uk
Monday 26 April 2010
Am I legally entitled to plants out of the garden when I move ?
Broadly speaking the answer is yes – as long as you have your buyer’s agreement. However, the very fact that you’re asking the question suggests that you have not!
In this sense, garden plants are treated in very much the same way as any other fixtures and fittings associated with a property. In the preliminary enquiries sent to you by your solicitor at the start of the conveyancing process, you will have been given the opportunity to state exactly what you plan to take with you, and what you intend to leave behind – whether they be garden plants or carpets and curtains. Your answers to those enquiries form the basis of the contract of sale, so you can’t just go changing your mind about them afterwards. In fact, strictly speaking you would be in breach of the contract if you did. Moreover - although it is admittedly a bit of a grey area from a legal standpoint - the fact that garden plants may not be specifically mentioned in the preliminary enquiries does not absolve you of your contractual responsibilities. In other words, the basic rule is this: if you don’t actually state that you are taking something with you when you go, then the presumption will be that you are leaving it behind. If you subsequently change your mind, then you need to inform your solicitor as soon as possible.
This may sound like a lot of unnecessary fuss over a few plants, and in practice it is unlikely to cause a problem if you do take one or two. Your buyers may not even notice they’re gone – although they certainly will if you happen to take the one prize shrub that they particularly fell in love with, or if you leave your previously immaculate garden looking like the surface of the moon.
However, quite apart from any possible legal repercussions, it is simple politeness to get your buyers’ agreement before you remove a plant. Even if you previously gave formal notice of your intentions, it’s probably a good idea to mention it again nearer to exchange – just to avoid any unfortunate misunderstandings.
In this sense, garden plants are treated in very much the same way as any other fixtures and fittings associated with a property. In the preliminary enquiries sent to you by your solicitor at the start of the conveyancing process, you will have been given the opportunity to state exactly what you plan to take with you, and what you intend to leave behind – whether they be garden plants or carpets and curtains. Your answers to those enquiries form the basis of the contract of sale, so you can’t just go changing your mind about them afterwards. In fact, strictly speaking you would be in breach of the contract if you did. Moreover - although it is admittedly a bit of a grey area from a legal standpoint - the fact that garden plants may not be specifically mentioned in the preliminary enquiries does not absolve you of your contractual responsibilities. In other words, the basic rule is this: if you don’t actually state that you are taking something with you when you go, then the presumption will be that you are leaving it behind. If you subsequently change your mind, then you need to inform your solicitor as soon as possible.
This may sound like a lot of unnecessary fuss over a few plants, and in practice it is unlikely to cause a problem if you do take one or two. Your buyers may not even notice they’re gone – although they certainly will if you happen to take the one prize shrub that they particularly fell in love with, or if you leave your previously immaculate garden looking like the surface of the moon.
However, quite apart from any possible legal repercussions, it is simple politeness to get your buyers’ agreement before you remove a plant. Even if you previously gave formal notice of your intentions, it’s probably a good idea to mention it again nearer to exchange – just to avoid any unfortunate misunderstandings.
Monday 19 April 2010
Southend property market up date April 2010
The general election and the housing market
With the Election fast approaching, it's interesting to consider how the property market could be affected. Many have argued that housing policy should not simply be a footnote during the forthcoming General Election. The property industry is of profound importance to the UK economy, and it's vital to remember how much a healthy housing market is worth to the economy as a whole.
What are the main political parties proposing for the housing sector?
Labour
• Two year Stamp Duty holiday for First Time Buyers on residential transactions up to £250,000
• From April 2011 a new Stamp Duty top rate of 5% for properties over £1 million
• An extra £1.5 billion of funding brought forward to help build 110,000 new affordable homes
• Agreements with banks to lend £105 billion to homeowners over the next year
• Pressure on lenders to stave off the threat of repossessions
• New homes to be zero carbon by 2016
Conservative
• Permanently increase the Stamp Duty threshold for First Time Buyers
• Abolish Home Information Packs
• Reward councils for building more homes and promoting local economic growth
• Making it easier for social tenants to own or part-own their home
Liberal Democrats
• Good, simple and cheap homes to rent for those unable to buy
• Action on repossessions so that banks explore other options
• Creation of "Safe Smart" mortgages that protect buyers from negative equity
• Warmer and energy efficient homes throughout the UK
House price increased in March according to the Nationwide
The latest house price index from the Nationwide Building Society has revealed a 0.7% rise for the month of March compared with February.
The latest house price rise takes the annual increase to 9% with the average UK home costing £164,519.
Meanwhile, the Nationwide said prices rose by 1.6% in the three months to the end of March, compared with a 1.8% increase in the previous three months.
Martin Gahbauer, the Nationwide’s chief economist, comments: “The last two months are consistent with a relatively flat profile for house prices, and in line with the recent drops seen in buyer enquiries and house sales.”
He added: “Preliminary figures show that the number of loans taken out for house purchases failed to recover from January’s large dip, suggesting that weakness in house sales at the start of the year may have been due to more than just the snowy weather.”
Southend housing market activity
Sales
March saw a steady increase in the amount of new property coming onto the market which has continued into April. This has resulted in more choice for would be purchasers and as a consequence they have been taking longer to decide which properties to offer on. Recently this trend has seemed to have worked through the system with far more offers being received within the last week.
Mortgage criteria still is a major issue with clients being turned down for the smallest of reasons, such as late payment of bills, despite many having large deposits and requiring only 75 / 80 % loan to value. So while mortgages are more freely available those being able to take advantage of them are still relatively small.
Property prices are not following the national average with the average price showing virtually no change during the month. Many agents and sellers are still over valuing their properties in the hope they will attract that “special buyer” However this often results in either the property not selling or being withdrawn from the market. In some instances the property is reduced in price which gives the wrong signals to potential purchasers and can result in sellers being disappointed because they lose the property they want to buy.
Auctions
Interest in buying at auction remains strong especially in land with or without planning permission and rental portfolio’s with tenants in situ. Prices have been very buoyant but it requires sellers with a strong nerve as it is essential that a “come and get me” guide price and reserve is placed on the property or land so it attracts the serious investor into sales room.
Rental
There is continued strong demand from good quality tenants for all types of well presented properties. Vacancy levels are low with the average time to let a property being 4 days. Those tenants that are leaving are either renting larger properties or returning to live at home with parents while they save for a deposit to buy.
For further information on the property market log onto www.trustintudor.co.uk
or e mail alan@tudorestates.co.
With the Election fast approaching, it's interesting to consider how the property market could be affected. Many have argued that housing policy should not simply be a footnote during the forthcoming General Election. The property industry is of profound importance to the UK economy, and it's vital to remember how much a healthy housing market is worth to the economy as a whole.
What are the main political parties proposing for the housing sector?
Labour
• Two year Stamp Duty holiday for First Time Buyers on residential transactions up to £250,000
• From April 2011 a new Stamp Duty top rate of 5% for properties over £1 million
• An extra £1.5 billion of funding brought forward to help build 110,000 new affordable homes
• Agreements with banks to lend £105 billion to homeowners over the next year
• Pressure on lenders to stave off the threat of repossessions
• New homes to be zero carbon by 2016
Conservative
• Permanently increase the Stamp Duty threshold for First Time Buyers
• Abolish Home Information Packs
• Reward councils for building more homes and promoting local economic growth
• Making it easier for social tenants to own or part-own their home
Liberal Democrats
• Good, simple and cheap homes to rent for those unable to buy
• Action on repossessions so that banks explore other options
• Creation of "Safe Smart" mortgages that protect buyers from negative equity
• Warmer and energy efficient homes throughout the UK
House price increased in March according to the Nationwide
The latest house price index from the Nationwide Building Society has revealed a 0.7% rise for the month of March compared with February.
The latest house price rise takes the annual increase to 9% with the average UK home costing £164,519.
Meanwhile, the Nationwide said prices rose by 1.6% in the three months to the end of March, compared with a 1.8% increase in the previous three months.
Martin Gahbauer, the Nationwide’s chief economist, comments: “The last two months are consistent with a relatively flat profile for house prices, and in line with the recent drops seen in buyer enquiries and house sales.”
He added: “Preliminary figures show that the number of loans taken out for house purchases failed to recover from January’s large dip, suggesting that weakness in house sales at the start of the year may have been due to more than just the snowy weather.”
Southend housing market activity
Sales
March saw a steady increase in the amount of new property coming onto the market which has continued into April. This has resulted in more choice for would be purchasers and as a consequence they have been taking longer to decide which properties to offer on. Recently this trend has seemed to have worked through the system with far more offers being received within the last week.
Mortgage criteria still is a major issue with clients being turned down for the smallest of reasons, such as late payment of bills, despite many having large deposits and requiring only 75 / 80 % loan to value. So while mortgages are more freely available those being able to take advantage of them are still relatively small.
Property prices are not following the national average with the average price showing virtually no change during the month. Many agents and sellers are still over valuing their properties in the hope they will attract that “special buyer” However this often results in either the property not selling or being withdrawn from the market. In some instances the property is reduced in price which gives the wrong signals to potential purchasers and can result in sellers being disappointed because they lose the property they want to buy.
Auctions
Interest in buying at auction remains strong especially in land with or without planning permission and rental portfolio’s with tenants in situ. Prices have been very buoyant but it requires sellers with a strong nerve as it is essential that a “come and get me” guide price and reserve is placed on the property or land so it attracts the serious investor into sales room.
Rental
There is continued strong demand from good quality tenants for all types of well presented properties. Vacancy levels are low with the average time to let a property being 4 days. Those tenants that are leaving are either renting larger properties or returning to live at home with parents while they save for a deposit to buy.
For further information on the property market log onto www.trustintudor.co.uk
or e mail alan@tudorestates.co.
Tuesday 13 April 2010
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)
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)
Friday 9 April 2010
Is there any point in registering an unregistered title ?
If you currently own such a property, is it worth voluntarily registering it – particularly if a system already exists to ensure that this eventually happens in any case?
Broadly speaking, the answer is yes – for two main reasons:
Firstly, formal registration gives you far greater certainty and security regarding ownership of what is probably your single most valuable asset. Over the years, title deeds and other traditional proofs of ownership can all too easily go missing – and then you could be seriously stuck, particularly if there were to be any dispute over title, fraudulent or otherwise. Far safer and more reliable for your ownership to be a matter of official, central record.
Secondly, the simple fact is that it is considerably more complicated, time-consuming and expensive to sell a property that is unregistered, since the solicitors or conveyancers concerned first have to wade through mountains of old documents to establish legal title, rather than simply contacting the Land Registry for the relevant reference number. What’s more, the vast majority of buyers now expect a property to be registered. However irrational, they may be put off altogether by the prospect of buying something that somehow seems to have slipped through the official net!
On balance then, I would certainly recommend voluntary registration. You can handle the whole thing yourself – the Land Registry provides a useful pack including all the relevant forms, which you can get by ringing 0800 432 0432 or emailing registerland@landregistry.gsi.gov.uk. However, most people prefer to seek legal advice on what can be quite a complex process. Either way, there is a sliding scale of charges involved, depending on the value of the property.
For further information on selling go to www.trustintudor.co.uk
Broadly speaking, the answer is yes – for two main reasons:
Firstly, formal registration gives you far greater certainty and security regarding ownership of what is probably your single most valuable asset. Over the years, title deeds and other traditional proofs of ownership can all too easily go missing – and then you could be seriously stuck, particularly if there were to be any dispute over title, fraudulent or otherwise. Far safer and more reliable for your ownership to be a matter of official, central record.
Secondly, the simple fact is that it is considerably more complicated, time-consuming and expensive to sell a property that is unregistered, since the solicitors or conveyancers concerned first have to wade through mountains of old documents to establish legal title, rather than simply contacting the Land Registry for the relevant reference number. What’s more, the vast majority of buyers now expect a property to be registered. However irrational, they may be put off altogether by the prospect of buying something that somehow seems to have slipped through the official net!
On balance then, I would certainly recommend voluntary registration. You can handle the whole thing yourself – the Land Registry provides a useful pack including all the relevant forms, which you can get by ringing 0800 432 0432 or emailing registerland@landregistry.gsi.gov.uk. However, most people prefer to seek legal advice on what can be quite a complex process. Either way, there is a sliding scale of charges involved, depending on the value of the property.
For further information on selling go to www.trustintudor.co.uk
Thursday 1 April 2010
What is the difference between horizontal and vertical leases?
These aren’t actual legal terms, but simply a convenient way of describing the two different ways in which responsibility for a property divided into flats is split amongst the lease-holders. Thus, horizontal leases are those in which the property concerned is divided from left to right, through the middle, while vertical leases, as the name implies, divide the property equally from top to bottom.
Taking the case of a two-story house split into two flats:
• Where leases divide the property horizontally, the leaseholder on the first floor is responsible for maintaining everything above the line – for example, the roof - while the ground floor leaseholder is responsible for the drains.
• Where the division is vertical, both leaseholders have an equal share in all such liabilities.
The overwhelming majority of new leases are of the vertical type. However, there are still some horizontal ones about, since they were quite popular in the 60s and 70s, when leases were often granted for 199 or even 999 years. Generally speaking, you should try to avoid them at all costs, since real difficulties can arise – for example, if you have a landlord or freeholder who cannot be traced, and the other leaseholder doesn’t want to do the work required on, say, the roof. In that case, you can encounter major problems in trying to get the work done at all.
Most vertical leases on the other hand will clearly state that the freeholder is responsible for arranging to have any remedial work done, while the leaseholders are responsible for paying for it. However, it is common practice for the leaseholders to get together and solve any problems between them.
Needless to say, leases don’t state whether they are horizontal or vertical - but you can easily figure out which type it is by studying the list of responsibilities.
Taking the case of a two-story house split into two flats:
• Where leases divide the property horizontally, the leaseholder on the first floor is responsible for maintaining everything above the line – for example, the roof - while the ground floor leaseholder is responsible for the drains.
• Where the division is vertical, both leaseholders have an equal share in all such liabilities.
The overwhelming majority of new leases are of the vertical type. However, there are still some horizontal ones about, since they were quite popular in the 60s and 70s, when leases were often granted for 199 or even 999 years. Generally speaking, you should try to avoid them at all costs, since real difficulties can arise – for example, if you have a landlord or freeholder who cannot be traced, and the other leaseholder doesn’t want to do the work required on, say, the roof. In that case, you can encounter major problems in trying to get the work done at all.
Most vertical leases on the other hand will clearly state that the freeholder is responsible for arranging to have any remedial work done, while the leaseholders are responsible for paying for it. However, it is common practice for the leaseholders to get together and solve any problems between them.
Needless to say, leases don’t state whether they are horizontal or vertical - but you can easily figure out which type it is by studying the list of responsibilities.
Monday 22 March 2010
Southend property market up date March 2010
Auctions
Many consumers in the UK now see property as a good thing to invest in, people believe homes and buy-to-let residences will help to fund their retirement years.
Figures gathered by the National Association of Pension Funds, found that only 34 per cent of individuals polled were confident that their pensions will leave them with enough money for life after work. Flagging confidence in work savings means more Britons are being encouraged to put money into other things. Many people have switched to investments such as buy-to-lets.
This trend was certainly borne out at our March auction where a hundred percent of our lots sold at full prices. Competition between investors was strong as they bid to secure properties to either add to their rental portfolios or refurbish and sell on.
Sales market
People seeking to invest in real estate, can secure property at its most affordable price since 2003. This is according to new figures from Zoopla.co.uk, which show that the average worker can now afford 58 per cent of homes in the UK. This is an increase on the 34 per cent recorded in 2007. However it is our opinion that whichever government gets into power at the next election they will still need to do more to increase housing affordability for first-time buyers. Among the measures needed we think are sensible lending policies and the increase of new home building.
In Southend the supply of new properties slowed towards the end of February and into the first part of March. However this trend seems to be changing as over the last week considerably more properties came onto the market. As more choice becomes available it is inevitable that properties will take longer to sell. There is also currently a tendency to put homes on the market considerably higher than the current market value. This again is delaying the sale of property while either sales are negotiated or sellers are forced to reduce their prices if they are serious about moving. Another effect of this market is to see that those properties that have been on the market for longer are being sold as they represent better value.
With the launch of Tudor’ distinctive homes service we are seeing the upper end of the local market performing well.
Rental market
The rental market remains strong with supply and demand being more or less equal. Houses are in the highest demand especially larger properties and flats need to be competitively priced if they are going to be taken. Properties that are not presented well are seeing rents reduced so taking a little time to redecorate or clean a home after occupation can reap dividends.
Mortgages
The Financial Services Authority (FSA) has revealed that mortgage lending to those going through the conveyancing process to purchase homes is rising in the UK.
According to the organisation, finance for property buying "continues to represent an increasing share of new lending". It noted that such activity accounted for 62 per cent of new advances and 63 per cent of new commitments in the latest quarter.
There is also greater innovation being shown in the mortgage market by lenders such as Mortgage Works a subsidiary of Nationwide Building Society who have introduced a loan that could provide a useful way for first-time buyers to secure a property.
Unlike existing guarantor mortgages, it accepts that parents have "commitments of their own". The product was launched earlier this month and it operates on a 75 per cent loan-to-value basis on a two-year fixed-rate mortgage. It comes with a rate of 4.99 per cent and guarantors need to agree to cover 30 per cent of the loan.
The other good news is that the Bank of England figures, revealed the average cost of a two-year fixed-rate mortgage is at its lowest level since the summer of 2003.The typical deal had a rate of 3.88 per cent last month, which was a fall from 4.35 per cent during the same time last year, the organisation noted.
Summary
Public opinion for investing in housing appears to be growing but has not been fully seen in market activity yet. Property is more affordable now than any time since 2003and mortgage supply and rates have improved every month so far in 2010.
Alan Kirkman FNAEA
Director
Tudor Estates
18th March 2010
For further information on the property market go to www.trustintudor.co.uk
Many consumers in the UK now see property as a good thing to invest in, people believe homes and buy-to-let residences will help to fund their retirement years.
Figures gathered by the National Association of Pension Funds, found that only 34 per cent of individuals polled were confident that their pensions will leave them with enough money for life after work. Flagging confidence in work savings means more Britons are being encouraged to put money into other things. Many people have switched to investments such as buy-to-lets.
This trend was certainly borne out at our March auction where a hundred percent of our lots sold at full prices. Competition between investors was strong as they bid to secure properties to either add to their rental portfolios or refurbish and sell on.
Sales market
People seeking to invest in real estate, can secure property at its most affordable price since 2003. This is according to new figures from Zoopla.co.uk, which show that the average worker can now afford 58 per cent of homes in the UK. This is an increase on the 34 per cent recorded in 2007. However it is our opinion that whichever government gets into power at the next election they will still need to do more to increase housing affordability for first-time buyers. Among the measures needed we think are sensible lending policies and the increase of new home building.
In Southend the supply of new properties slowed towards the end of February and into the first part of March. However this trend seems to be changing as over the last week considerably more properties came onto the market. As more choice becomes available it is inevitable that properties will take longer to sell. There is also currently a tendency to put homes on the market considerably higher than the current market value. This again is delaying the sale of property while either sales are negotiated or sellers are forced to reduce their prices if they are serious about moving. Another effect of this market is to see that those properties that have been on the market for longer are being sold as they represent better value.
With the launch of Tudor’ distinctive homes service we are seeing the upper end of the local market performing well.
Rental market
The rental market remains strong with supply and demand being more or less equal. Houses are in the highest demand especially larger properties and flats need to be competitively priced if they are going to be taken. Properties that are not presented well are seeing rents reduced so taking a little time to redecorate or clean a home after occupation can reap dividends.
Mortgages
The Financial Services Authority (FSA) has revealed that mortgage lending to those going through the conveyancing process to purchase homes is rising in the UK.
According to the organisation, finance for property buying "continues to represent an increasing share of new lending". It noted that such activity accounted for 62 per cent of new advances and 63 per cent of new commitments in the latest quarter.
There is also greater innovation being shown in the mortgage market by lenders such as Mortgage Works a subsidiary of Nationwide Building Society who have introduced a loan that could provide a useful way for first-time buyers to secure a property.
Unlike existing guarantor mortgages, it accepts that parents have "commitments of their own". The product was launched earlier this month and it operates on a 75 per cent loan-to-value basis on a two-year fixed-rate mortgage. It comes with a rate of 4.99 per cent and guarantors need to agree to cover 30 per cent of the loan.
The other good news is that the Bank of England figures, revealed the average cost of a two-year fixed-rate mortgage is at its lowest level since the summer of 2003.The typical deal had a rate of 3.88 per cent last month, which was a fall from 4.35 per cent during the same time last year, the organisation noted.
Summary
Public opinion for investing in housing appears to be growing but has not been fully seen in market activity yet. Property is more affordable now than any time since 2003and mortgage supply and rates have improved every month so far in 2010.
Alan Kirkman FNAEA
Director
Tudor Estates
18th March 2010
For further information on the property market go to www.trustintudor.co.uk
Friday 19 March 2010
Can you tell me something about shared equity schemes, and how they work?
These days, it is frequently one of the conditions of planning permission being granted for new residential developments (under what is called a Section 106 Agreement) that they must include a certain percentage of units designated for social housing. While some of these will be set aside to meet general social needs, a proportion is usually earmarked for purchase on preferential terms – either specifically for the benefit of key workers such as nurses or policemen, or for those on low incomes and lacking the hefty deposits which lenders now generally demand. Shared equity is the preferred mechanism for helping the latter group – people who for one reason or another wouldn’t otherwise be able to afford home ownership.
As the name implies, shared equity basically allows someone to purchase a percentage share in a property, while paying rent on the remainder – usually to a housing association. In most cases only a very small deposit will be required, if any at all.
How does it work? Well, to keep the sums simple, let’s look at a property valued at £100,000. The buyer takes out, let us say, a £50,000 mortgage to purchase half of the equity, and pays rent on the remaining half. If this sounds more expensive than repaying a full £100,000 mortgage, it’s worth remembering that the rent payable in these cases is not based on normal market rates, but on the prevailing rate for social housing in the area concerned, which is naturally a lot lower.
But what happens if or when you want to move, and you only own half of your current home? Well, the answer is that you sell your half pretty much in the normal way – except for the fact that the purchaser must be acceptable to the housing association.
A variation on this basic model exists whereby you may be able to buy a bigger and bigger share of the property as your own income level increases. This is known as “stair-casing.”
As the name implies, shared equity basically allows someone to purchase a percentage share in a property, while paying rent on the remainder – usually to a housing association. In most cases only a very small deposit will be required, if any at all.
How does it work? Well, to keep the sums simple, let’s look at a property valued at £100,000. The buyer takes out, let us say, a £50,000 mortgage to purchase half of the equity, and pays rent on the remaining half. If this sounds more expensive than repaying a full £100,000 mortgage, it’s worth remembering that the rent payable in these cases is not based on normal market rates, but on the prevailing rate for social housing in the area concerned, which is naturally a lot lower.
But what happens if or when you want to move, and you only own half of your current home? Well, the answer is that you sell your half pretty much in the normal way – except for the fact that the purchaser must be acceptable to the housing association.
A variation on this basic model exists whereby you may be able to buy a bigger and bigger share of the property as your own income level increases. This is known as “stair-casing.”
Monday 15 March 2010
What is a flying freehold ?
A flying freehold applies where part of one property – for example an upper room or loft space – physically extends over another. This means that the owner of a flying freehold does not actually own the structure which supports that part of his or her property. They are therefore entirely dependent upon the goodwill of the owner of the adjoining property for its upkeep and structural integrity. A flying freehold can also exist where part of a property sits over a communal access area, like an archway.
Of course, this sort of thing happens all the time with houses that have been converted into separate flats, or purpose-built apartment blocks. The difference is that these are invariably leasehold, so there is always a freeholder somewhere who retains the power to compel each leaseholder to maintain their part of the communal fabric.
By contrast, no-one can compel a freeholder to do anything!
This may sound drastic, but in practice most flying freeholds have been around for donkeys’ years without causing anyone any trouble. However – precisely because they are a departure from the norm, and something of an anomaly - solicitors quite rightly tend to be rather wary of them. Banks and building societies even more so. Fortunately, they’re relatively rare in most parts of the country these days. Nevertheless, they do persist in some areas, particularly with older properties.
So…what happens if you’re a cash buyer, and the home of your dreams turns out to have a flying freehold? What then?
Well, while it’s undeniable that it can complicate matters, and your solicitor will certainly want to check it out very thoroughly indeed, the fact is that most of the difficulties associated with flying freeholds are easily surmountable – for example, by taking out indemnity insurance.
So, if you’re faced with a flying freehold on a property that you really can’t resist, my advice would be to grit your teeth and go for it.
Of course, this sort of thing happens all the time with houses that have been converted into separate flats, or purpose-built apartment blocks. The difference is that these are invariably leasehold, so there is always a freeholder somewhere who retains the power to compel each leaseholder to maintain their part of the communal fabric.
By contrast, no-one can compel a freeholder to do anything!
This may sound drastic, but in practice most flying freeholds have been around for donkeys’ years without causing anyone any trouble. However – precisely because they are a departure from the norm, and something of an anomaly - solicitors quite rightly tend to be rather wary of them. Banks and building societies even more so. Fortunately, they’re relatively rare in most parts of the country these days. Nevertheless, they do persist in some areas, particularly with older properties.
So…what happens if you’re a cash buyer, and the home of your dreams turns out to have a flying freehold? What then?
Well, while it’s undeniable that it can complicate matters, and your solicitor will certainly want to check it out very thoroughly indeed, the fact is that most of the difficulties associated with flying freeholds are easily surmountable – for example, by taking out indemnity insurance.
So, if you’re faced with a flying freehold on a property that you really can’t resist, my advice would be to grit your teeth and go for it.
Friday 12 March 2010
Do for sale boards fulfil any useful purpose?
Very much so. In fact, even in the internet age, agents’ boards are still generally acknowledged to be one of the most effective marketing tools in the estate agent’s locker. People really do notice them. What’s more, enquiries that result from someone seeing a board outside your home are often likely to be more valuable that those received via the internet, or from newspaper advertising, since they imply that the would-be buyers have already seen the property and like what they saw. By definition, it also means that they like the location. So, if the price is right, such enquiries will normally turn into viewings.
In the case of vacant properties, boards can also act as a useful deterrent to sneak thieves, squatters and the like, since they will never know when an agent might turn up for a viewing.
Ironically, the most common objection to having an agent’s board outside a property is that the homeowner doesn’t want his or her neighbours to know they are selling. Bizarre, when you think about it. For one thing, the neighbours would have to be pretty slow on the uptake not to notice agents turning up to value the place – often in branded vehicles – or walking around taking measurements and photographs. Then there’s the succession of complete strangers wandering about, very obviously checking the property out - as often as not while clutching copies of the particulars. Not forgetting, of course, the agent’s press ads and window cards…
All in all, trying to keep the sale a secret is something of a tall order. But in any case, why on earth would you want to? After all, you’re trying to sell the place, aren’t you? And particularly in this kind of market, you need all the exposure you can get. Indeed, your neighbours may well know someone who would love to move into the area!
So, in short, I would strongly advise you to have a board. Even if it’s not one of ours!
In the case of vacant properties, boards can also act as a useful deterrent to sneak thieves, squatters and the like, since they will never know when an agent might turn up for a viewing.
Ironically, the most common objection to having an agent’s board outside a property is that the homeowner doesn’t want his or her neighbours to know they are selling. Bizarre, when you think about it. For one thing, the neighbours would have to be pretty slow on the uptake not to notice agents turning up to value the place – often in branded vehicles – or walking around taking measurements and photographs. Then there’s the succession of complete strangers wandering about, very obviously checking the property out - as often as not while clutching copies of the particulars. Not forgetting, of course, the agent’s press ads and window cards…
All in all, trying to keep the sale a secret is something of a tall order. But in any case, why on earth would you want to? After all, you’re trying to sell the place, aren’t you? And particularly in this kind of market, you need all the exposure you can get. Indeed, your neighbours may well know someone who would love to move into the area!
So, in short, I would strongly advise you to have a board. Even if it’s not one of ours!
Monday 8 March 2010
Is it worth installing solar panels?
If you’re asking about value for money, then the short answer is probably “no” – particularly if you are planning to move any time soon.
If that sounds a bit blunt, let me explain. Of course, it can be argued that anything which helps cut fuel bills will enhance the saleability of a home, and all other things being equal that may well be true. However, as with any other expensive home improvement, you will never recoup the full cost of a solar installation - as much as £20,000 for an electricity-generating photovoltaic (pv) system - when you sell.
But what if you are planning to stay put for a while? On solar water-heating, opinion is pretty evenly split between those who swear by it, and claim that their systems will pay for themselves within as little as 4 or 5 years, and those who claim the opposite. The Royal Institution of Chartered Surveyors, for example, published an energy efficiency report in 2008 which maintained that it could take anything up to 100 years to recoup the initial outlay – with systems which only have a useful lifespan of 30 years in the first place! Although this report caused a great deal of controversy, I think it’s only fair to say that the jury is therefore still out as far as the economics of solar water heating is concerned.
Meanwhile, when it comes to pv systems, the economic case seems to be much weaker - even allowing for the generous unit price your local power company will be obliged to pay for any daytime surplus electricity you generate. After all, pv technology may work well in places like Southern California or Arizona, where they average 9 hours sun every day, but here in rainy Britain it’s a very different story.
Of course, many people believe that the importance of doing your bit to save the planet far outweighs any considerations of value for money. If you’re one of them, and if you can afford it, then by all means install solar panels. At the very least, they’ll make you feel good.
But, if you main concern is to find ways to reduce your dependence on increasingly expensive bought-in energy, then you’ll find that things like decent loft insulation will probably achieve far more, at much lower cost.
If that sounds a bit blunt, let me explain. Of course, it can be argued that anything which helps cut fuel bills will enhance the saleability of a home, and all other things being equal that may well be true. However, as with any other expensive home improvement, you will never recoup the full cost of a solar installation - as much as £20,000 for an electricity-generating photovoltaic (pv) system - when you sell.
But what if you are planning to stay put for a while? On solar water-heating, opinion is pretty evenly split between those who swear by it, and claim that their systems will pay for themselves within as little as 4 or 5 years, and those who claim the opposite. The Royal Institution of Chartered Surveyors, for example, published an energy efficiency report in 2008 which maintained that it could take anything up to 100 years to recoup the initial outlay – with systems which only have a useful lifespan of 30 years in the first place! Although this report caused a great deal of controversy, I think it’s only fair to say that the jury is therefore still out as far as the economics of solar water heating is concerned.
Meanwhile, when it comes to pv systems, the economic case seems to be much weaker - even allowing for the generous unit price your local power company will be obliged to pay for any daytime surplus electricity you generate. After all, pv technology may work well in places like Southern California or Arizona, where they average 9 hours sun every day, but here in rainy Britain it’s a very different story.
Of course, many people believe that the importance of doing your bit to save the planet far outweighs any considerations of value for money. If you’re one of them, and if you can afford it, then by all means install solar panels. At the very least, they’ll make you feel good.
But, if you main concern is to find ways to reduce your dependence on increasingly expensive bought-in energy, then you’ll find that things like decent loft insulation will probably achieve far more, at much lower cost.
Friday 26 February 2010
I am thinking of buying a thatched cottage. Is this a good idea ?
All thatched cottages require re-roofing from time to time, and this can be a fairly pricey exercise – so the main thing you need to consider when thinking about buying such a property is the current condition of the roof. What kind of thatching material is involved, when was it last replaced, (as a general rule, long straw needs replacing every 25 years or so, while Norfolk reed can last up to 60 years), and how much would it cost to have done today? It’s also worth knowing whether any repair work has been carried out recently, and whether any special fire-retardant coatings have been applied.
Another matter worth particular attention is the condition of the electrical wiring - when it was last surveyed, repaired or replaced. And, if there are open fires in use in the property, the chimneys really should be lined (and regularly swept, naturally).
All in all, for those prepared to face up to the additional responsibilities of ownership – and with the means of doing so - there is undoubtedly something uniquely rewarding about living in a thatched cottage. In a real sense, you are the custodian of a piece of living history, with all the very special pleasures that this can bring. Needless to say, the owners of thatched properties tend to be quite a supportive lot – so help and advice is never too hard to find.
Another matter worth particular attention is the condition of the electrical wiring - when it was last surveyed, repaired or replaced. And, if there are open fires in use in the property, the chimneys really should be lined (and regularly swept, naturally).
All in all, for those prepared to face up to the additional responsibilities of ownership – and with the means of doing so - there is undoubtedly something uniquely rewarding about living in a thatched cottage. In a real sense, you are the custodian of a piece of living history, with all the very special pleasures that this can bring. Needless to say, the owners of thatched properties tend to be quite a supportive lot – so help and advice is never too hard to find.
Monday 22 February 2010
I’m looking to buy a property and I wondered if you could give me any general advice on how to proceed ?
Broadly speaking, there are 5 steps involved in buying a property – 6, if you also have one to sell. Indeed, if this is the case, then
Step 1 is: put your existing home on the market first. Not only will this put you in a much stronger position than competing buyers, but it will also give you a clearer idea of your available budget.
Which brings me to Step 2, which is: establish your price ceiling. How big a deposit can you muster, and how large a mortgage can you afford? Have you taken into account things like solicitor’s fees, Stamp Duty, and the other costs associated with moving? And don’t forget utilities. Remember, the bigger the property, the bigger the bills!
Step 3: start your house-hunting. These days, most people conduct their initial searches online, before contacting the agents concerned. Others still prefer to do it the traditional way, by registering with one or more agents in the area of their choice. Either way, make sure you give the agent all the information you can regarding your situation and your requirements.
Step 4: viewing. When it comes to checking out individual properties, don’t rely on looking at printed details or the internet. Go and inspect them, preferably with the agent (and if you can’t keep an appointment, let him or her know in good time!). Draw up a list of all the questions you want to ask the seller, and make your own notes afterwards, so you can review them at your leisure.
Step 5: keep in touch. Let the agent know if your situation or requirements change.
And finally…Step 6: when you find a property you like, first confirm it is really what you’re looking for and then make a formal offer through the agent. Don’t go making offers on several properties at once. It just wastes everyone’s time – and when you do finally find something that you want, you may find that you’re not taken seriously!
Step 1 is: put your existing home on the market first. Not only will this put you in a much stronger position than competing buyers, but it will also give you a clearer idea of your available budget.
Which brings me to Step 2, which is: establish your price ceiling. How big a deposit can you muster, and how large a mortgage can you afford? Have you taken into account things like solicitor’s fees, Stamp Duty, and the other costs associated with moving? And don’t forget utilities. Remember, the bigger the property, the bigger the bills!
Step 3: start your house-hunting. These days, most people conduct their initial searches online, before contacting the agents concerned. Others still prefer to do it the traditional way, by registering with one or more agents in the area of their choice. Either way, make sure you give the agent all the information you can regarding your situation and your requirements.
Step 4: viewing. When it comes to checking out individual properties, don’t rely on looking at printed details or the internet. Go and inspect them, preferably with the agent (and if you can’t keep an appointment, let him or her know in good time!). Draw up a list of all the questions you want to ask the seller, and make your own notes afterwards, so you can review them at your leisure.
Step 5: keep in touch. Let the agent know if your situation or requirements change.
And finally…Step 6: when you find a property you like, first confirm it is really what you’re looking for and then make a formal offer through the agent. Don’t go making offers on several properties at once. It just wastes everyone’s time – and when you do finally find something that you want, you may find that you’re not taken seriously!
Tuesday 9 February 2010
February 2010 Southend property market up date.
Sales market
Two significant factors have had a positive influence on the housing market during January. The first, being the amount of new property coming onto the market for sale giving far greater choice to purchasers and investors. Secondly the number of mortgage products being made available which passed the 2,500 barrier for the first time since May 2009.
The New Year market got off to a patchy start with a certain amount of uncertainty but unusually as the snow fell the activity increased with several sales being negotiated at Tudor during the big freeze. As the snow melted the activity cooled as well until the last 10 days of January when someone turned on the lights to sellers. Since then anyone travelling around Southend will have noticed the increase in “for sale” boards as significantly more property comes onto the market. This has lead to far higher levels of sales being negotiated. House prices remain broadly the same during the month with average detached house selling for £311,839, semi detached £195,313, and terraced for £146,092. ( Land registry data)
The new homes market has recovered well over the past six months according to new data just revealed. The average price of a new home rose by 1.1 per cent in December last year, compared with the previous month. This is the seventh consecutive month that properties in the sector have increased their value, which the company described as "a remarkable recovery" since its low point in May 2009. (SmartNewHomes.com New homes index )
The rental market
Remains buoyant with good levels of activity with a healthy supply of well referenced tenants looking to rent at the moment.
This is a significant part of the Southend property market as the private rental housing stock accounts for a far higher proportion than the UK average.
Figures show that 43% of homes were owned by their residents in 1961 compared with 68% in 2008.
Privately rented homes fell from 33% to currently 14% this has increased slightly recently probably due to the market conditions and higher student numbers. Plus the growing trend of renting your first home for a few years before committing to buy.
The total number of properties in Southend borough is approximately 76,000 out of these the council and social landlords housing stock accounts for 8,500 and privately owned housing is nearly 67,000 of which approximately 11,000 are rented out.( 16.5% ) ( National office of statistics data )
Mortgages
As I mentioned earlier the supply of mortgages continues to increase. Products with loan to value’s of 75, 80 and 85 per cent are now available.
Santander has unveiled two new mortgage deals, offering borrowers loans of up to 70 per cent loan-to-value (LTV) on some of its fixed-rate and tracker deals.
House buyers could now take advantage of a two-year fixed-rate product at 3.44 per cent or a two-year tracker mortgage with an initial rate of 2.49 per cent.
The financial institution also announced that it is cutting the rate on its five-year fixed-rate deal to 5.44 per cent with an LTV of up to 75 per cent, making it a market leading rate in this category. This is just one example of the type of offering available according to Kit Thompson Tudor’s in house independent financial advisor. But he explains these offers are not around for long so anyone needing finance needs to act quickly and use an expert who can keep them up to date with the mortgage market.
Alan Kirkman FNAEA
Director
Tudor Estates
8th February 2010
For further information on the property market go to www.trustintudor.co.uk
Two significant factors have had a positive influence on the housing market during January. The first, being the amount of new property coming onto the market for sale giving far greater choice to purchasers and investors. Secondly the number of mortgage products being made available which passed the 2,500 barrier for the first time since May 2009.
The New Year market got off to a patchy start with a certain amount of uncertainty but unusually as the snow fell the activity increased with several sales being negotiated at Tudor during the big freeze. As the snow melted the activity cooled as well until the last 10 days of January when someone turned on the lights to sellers. Since then anyone travelling around Southend will have noticed the increase in “for sale” boards as significantly more property comes onto the market. This has lead to far higher levels of sales being negotiated. House prices remain broadly the same during the month with average detached house selling for £311,839, semi detached £195,313, and terraced for £146,092. ( Land registry data)
The new homes market has recovered well over the past six months according to new data just revealed. The average price of a new home rose by 1.1 per cent in December last year, compared with the previous month. This is the seventh consecutive month that properties in the sector have increased their value, which the company described as "a remarkable recovery" since its low point in May 2009. (SmartNewHomes.com New homes index )
The rental market
Remains buoyant with good levels of activity with a healthy supply of well referenced tenants looking to rent at the moment.
This is a significant part of the Southend property market as the private rental housing stock accounts for a far higher proportion than the UK average.
Figures show that 43% of homes were owned by their residents in 1961 compared with 68% in 2008.
Privately rented homes fell from 33% to currently 14% this has increased slightly recently probably due to the market conditions and higher student numbers. Plus the growing trend of renting your first home for a few years before committing to buy.
The total number of properties in Southend borough is approximately 76,000 out of these the council and social landlords housing stock accounts for 8,500 and privately owned housing is nearly 67,000 of which approximately 11,000 are rented out.( 16.5% ) ( National office of statistics data )
Mortgages
As I mentioned earlier the supply of mortgages continues to increase. Products with loan to value’s of 75, 80 and 85 per cent are now available.
Santander has unveiled two new mortgage deals, offering borrowers loans of up to 70 per cent loan-to-value (LTV) on some of its fixed-rate and tracker deals.
House buyers could now take advantage of a two-year fixed-rate product at 3.44 per cent or a two-year tracker mortgage with an initial rate of 2.49 per cent.
The financial institution also announced that it is cutting the rate on its five-year fixed-rate deal to 5.44 per cent with an LTV of up to 75 per cent, making it a market leading rate in this category. This is just one example of the type of offering available according to Kit Thompson Tudor’s in house independent financial advisor. But he explains these offers are not around for long so anyone needing finance needs to act quickly and use an expert who can keep them up to date with the mortgage market.
Alan Kirkman FNAEA
Director
Tudor Estates
8th February 2010
For further information on the property market go to www.trustintudor.co.uk
Friday 5 February 2010
What is a cob constructed house ?
Cob is basically a variation of the ancient method of building with mud and straw that has been used throughout the world for thousands of years. In the UK, this type of construction was used in several parts of the country including Hampshire, Wales, Dorset and Cornwall, but was particularly popular in Devon.
Traditionally, English cob was made by mixing clay-based subsoil with straw and water, which was then built up in layers (normally on a stone foundation), with each layer being given time to dry out first. Finally, the walls would be rendered with a mix of quicklime putty and coarse sand, followed by a lime wash. Unlike most modern coatings such as cement render, gypsum plaster and vinyl paints, this traditional finish is breathable, allowing any moisture to evaporate quickly - a fairly important consideration when your house is basically made out of mud.
But if all this all sounds like stepping back into some historical time-warp, don’t worry. Thousands of cob houses still survive today. Yes, many of them may date back hundreds of years, but living in them is really no different from most other types of older rural property.
What’s particularly interesting about cob, however, is the fact that it is currently undergoing something of a renaissance. The traditional skills, almost lost in the second half of the 20th century, are being revived, and there are specialist suppliers and builders to handle any necessary repairs or renovation work.
Perhaps even more remarkable is the fact that growing numbers of brand new and often strikingly-designed cob homes are now being built. Why? Well, for one thing, architects are increasingly being drawn to cob construction because, being basically moulded out of gloop, it lends itself to exciting new flowing shapes. More important in today’s world, it is very environmentally friendly. Cob homes are cool in summer and warm in winter. The construction process consumes virtually no energy and produces no pollution. Finally, the raw material of cob is not only infinitely recyclable, but can generally be excavated from the building site itself, thereby reducing transportation.
In fact, I suspect we may all be hearing rather more about cob-built housing in years to come.
For more information go to wwww.trustintudor.co.uk
Traditionally, English cob was made by mixing clay-based subsoil with straw and water, which was then built up in layers (normally on a stone foundation), with each layer being given time to dry out first. Finally, the walls would be rendered with a mix of quicklime putty and coarse sand, followed by a lime wash. Unlike most modern coatings such as cement render, gypsum plaster and vinyl paints, this traditional finish is breathable, allowing any moisture to evaporate quickly - a fairly important consideration when your house is basically made out of mud.
But if all this all sounds like stepping back into some historical time-warp, don’t worry. Thousands of cob houses still survive today. Yes, many of them may date back hundreds of years, but living in them is really no different from most other types of older rural property.
What’s particularly interesting about cob, however, is the fact that it is currently undergoing something of a renaissance. The traditional skills, almost lost in the second half of the 20th century, are being revived, and there are specialist suppliers and builders to handle any necessary repairs or renovation work.
Perhaps even more remarkable is the fact that growing numbers of brand new and often strikingly-designed cob homes are now being built. Why? Well, for one thing, architects are increasingly being drawn to cob construction because, being basically moulded out of gloop, it lends itself to exciting new flowing shapes. More important in today’s world, it is very environmentally friendly. Cob homes are cool in summer and warm in winter. The construction process consumes virtually no energy and produces no pollution. Finally, the raw material of cob is not only infinitely recyclable, but can generally be excavated from the building site itself, thereby reducing transportation.
In fact, I suspect we may all be hearing rather more about cob-built housing in years to come.
For more information go to wwww.trustintudor.co.uk
Wednesday 3 February 2010
Building societies report increase in lending.
The Building Societies Association (BSA) has revealed that gross mortgage lending among its members increased by 15 per cent in the final month of last year.
In December 2009, building societies provided funds for house purchases totalling £1.8 billion, compared with £1.6 billion in the previous month.
The BSA noted that this rise could most likely be attributed to the rush of buyers attempting to complete transactions before stamp duty increased at the end of December.
However, the organisation noted that the total level of lending in 2009 was significantly lower than in 2008.
Paul Broadhead, BSA head of mortgage policy, commented: "Despite this rise, total gross lending in 2009 was only half of that in 2008 and it is likely to remain at low levels until funding conditions improve."
Figures released by the Bank of England on February 1st revealed that lending from banks and building societies across all non-financial corporation sectors fell by £7.9 billion in December last year.
For further details go to www.tudorestates.co.uk
In December 2009, building societies provided funds for house purchases totalling £1.8 billion, compared with £1.6 billion in the previous month.
The BSA noted that this rise could most likely be attributed to the rush of buyers attempting to complete transactions before stamp duty increased at the end of December.
However, the organisation noted that the total level of lending in 2009 was significantly lower than in 2008.
Paul Broadhead, BSA head of mortgage policy, commented: "Despite this rise, total gross lending in 2009 was only half of that in 2008 and it is likely to remain at low levels until funding conditions improve."
Figures released by the Bank of England on February 1st revealed that lending from banks and building societies across all non-financial corporation sectors fell by £7.9 billion in December last year.
For further details go to www.tudorestates.co.uk
Monday 1 February 2010
If you own a property that is currently unregistered, is there any value in voluntarily registering it ?
If you currently own such a property, is it worth voluntarily registering it – particularly if a system already exists to ensure that this eventually happens in any case?
Broadly speaking, the answer is yes – for two main reasons:
Firstly, formal registration gives you far greater certainty and security regarding ownership of what is probably your single most valuable asset. Over the years, title deeds and other traditional proofs of ownership can all too easily go missing – and then you could be seriously stuck, particularly if there were to be any dispute over title, fraudulent or otherwise. Far safer and more reliable for your ownership to be a matter of official, central record.
Secondly, the simple fact is that it is considerably more complicated, time-consuming and expensive to sell a property that is unregistered, since the solicitors or conveyancers concerned first have to wade through mountains of old documents to establish legal title, rather than simply contacting the Land Registry for the relevant reference number. What’s more, the vast majority of buyers now expect a property to be registered. However irrational, they may be put off altogether by the prospect of buying something that somehow seems to have slipped through the official net!
On balance then, I would certainly recommend voluntary registration. You can handle the whole thing yourself – the Land Registry provides a useful pack including all the relevant forms, which you can get by ringing 0800 432 0432 or emailing registerland@landregistry.gsi.gov.uk. However, most people prefer to seek legal advice on what can be quite a complex process. Either way, there is a sliding scale of charges involved, depending on the value of the property.
For further information on selling go to www.trustintudor.co.uk
Broadly speaking, the answer is yes – for two main reasons:
Firstly, formal registration gives you far greater certainty and security regarding ownership of what is probably your single most valuable asset. Over the years, title deeds and other traditional proofs of ownership can all too easily go missing – and then you could be seriously stuck, particularly if there were to be any dispute over title, fraudulent or otherwise. Far safer and more reliable for your ownership to be a matter of official, central record.
Secondly, the simple fact is that it is considerably more complicated, time-consuming and expensive to sell a property that is unregistered, since the solicitors or conveyancers concerned first have to wade through mountains of old documents to establish legal title, rather than simply contacting the Land Registry for the relevant reference number. What’s more, the vast majority of buyers now expect a property to be registered. However irrational, they may be put off altogether by the prospect of buying something that somehow seems to have slipped through the official net!
On balance then, I would certainly recommend voluntary registration. You can handle the whole thing yourself – the Land Registry provides a useful pack including all the relevant forms, which you can get by ringing 0800 432 0432 or emailing registerland@landregistry.gsi.gov.uk. However, most people prefer to seek legal advice on what can be quite a complex process. Either way, there is a sliding scale of charges involved, depending on the value of the property.
For further information on selling go to www.trustintudor.co.uk
Friday 29 January 2010
Sentence predicts house prices will bounce back
Andrew Sentence, a member of the Monetary Policy Committee (MPC), has commented that he believes house prices will recover relative to inflation following the recession.
He made the comments at the British Property Federation Conference in London on January 26th, City Wire reported.
The news provider quoted Mr Sentance as saying: "In terms of the balance of demand and supply in residential property, most of the evidence suggests that the current position is closer to the early 1980s than the early 1990s."
He explained that this means the housing market is expected bounce back rather than fall further, noting that MPC fiscal policy had helped to restore confidence to the market and the wider economy.
He made the comments at the British Property Federation Conference in London on January 26th, City Wire reported.
The news provider quoted Mr Sentance as saying: "In terms of the balance of demand and supply in residential property, most of the evidence suggests that the current position is closer to the early 1980s than the early 1990s."
He explained that this means the housing market is expected bounce back rather than fall further, noting that MPC fiscal policy had helped to restore confidence to the market and the wider economy.
Wednesday 27 January 2010
Who can I turn to if I have a complaint against an estate agent?
Under the Consumer Estate Agents and Redress Act (2007), which came into force in October 2008, all practising estate agents are obliged to belong to a redress scheme approved by the Office of Fair Trading. Currently, there are two such schemes: the Surveyors Ombudsman Service – which, as its name suggests, was set up under the auspices of the Royal Institution of Chartered Surveyors specifically to deal with complaints against its own members – and The Property Ombudsman, formerly known as the Ombudsman for Estate Agents Scheme, which covers all other agents. Although you will need to check which of these two schemes the firm in question belongs to, both are designed to fulfil broadly the same function – ie. to provide sellers and buyers alike with access to a free, fair, and above all independent, complaints handling and redress system.
In practice, this means that if you have a dispute with your agent, which cannot be satisfactorily resolved through the firm’s own complaints handling procedures, then you can take the matter to the relevant Ombudsman, who will consider it and arrive at a judgement. Where appropriate, he can even award compensation – in the case of The Property Ombudsman, up to a figure of £25,000. What’s more, although the agent concerned is bound by the Ombudsman’s decision, the complainant isn’t – so, if you’re still not happy, you’re free to take the matter further; for example, to court.
Of course, despite the legal requirement, it’s always possible that there may still be one or two rogue agents out there who don’t belong to either of the two approved schemes. Fortunately, however, they’re reasonably easy to spot: they won’t display the relevant logos on their shop windows or stationery, and they will probably be rather evasive if you ask them about their membership. They may even try to convince you that they belong to another “similar” scheme! Whether or not you decide to report such firms to your local Trading Standards Office is up to you. But at least it means you have a clear choice – between those agents who abide by laws specifically designed to provide you with real peace of mind, and those that don’t!
In practice, this means that if you have a dispute with your agent, which cannot be satisfactorily resolved through the firm’s own complaints handling procedures, then you can take the matter to the relevant Ombudsman, who will consider it and arrive at a judgement. Where appropriate, he can even award compensation – in the case of The Property Ombudsman, up to a figure of £25,000. What’s more, although the agent concerned is bound by the Ombudsman’s decision, the complainant isn’t – so, if you’re still not happy, you’re free to take the matter further; for example, to court.
Of course, despite the legal requirement, it’s always possible that there may still be one or two rogue agents out there who don’t belong to either of the two approved schemes. Fortunately, however, they’re reasonably easy to spot: they won’t display the relevant logos on their shop windows or stationery, and they will probably be rather evasive if you ask them about their membership. They may even try to convince you that they belong to another “similar” scheme! Whether or not you decide to report such firms to your local Trading Standards Office is up to you. But at least it means you have a clear choice – between those agents who abide by laws specifically designed to provide you with real peace of mind, and those that don’t!
Monday 25 January 2010
53% of people surveyed thought house prices would continue to rise.
U.K. house prices will extend gains over the next 12 months as supplies remain constrained and the economy improves, Rightmove Plc said, citing a survey of consumers.
Fifty-three percent of respondents forecast that average house prices will increase over the year, the U.K.’s biggest property Web site said in a statement today in London. In a similar survey a year ago, just 10 percent of Britons expected prices to rise.
The U.K. property market is rebounding after its worst slump since the early 1990s, with reports from Rightmove and Nationwide showing prices are increasing. While the economy is showing signs of recovery from the recession, Prime Minister Gordon Brown and opposition Conservative leader David Cameron are battling to convince voters they are best placed to reduce a ballooning budget deficit and revive growth ahead of an election that must take place by June.
“Given the looming election and the talk of pending austerity packages ahead, this consumer survey highlights a surprisingly positive property price outlook,” Miles Shipside, commercial director of Rightmove, said in the statement. Consumers have the “impression that we are over the worst of the recent price falls and that there is likely to be upward pressure on prices.”
Rightmove surveyed 32,771 people from Jan. 4 to Jan. 18 for the survey.
Bank of England policy makers this month kept the benchmark interest rate at a record low of 0.5 percent. U.K. unemployment fell at the fastest pace since April 2007 last month.
“Employment seems to be holding up, and forced sales have been below forecasts,” Shipside said. “People hear these positive stories in the news and also directly feel the benefit of base rates being at record lows.”
For further information on the sales market go to www.trustintudor.co.uk
Fifty-three percent of respondents forecast that average house prices will increase over the year, the U.K.’s biggest property Web site said in a statement today in London. In a similar survey a year ago, just 10 percent of Britons expected prices to rise.
The U.K. property market is rebounding after its worst slump since the early 1990s, with reports from Rightmove and Nationwide showing prices are increasing. While the economy is showing signs of recovery from the recession, Prime Minister Gordon Brown and opposition Conservative leader David Cameron are battling to convince voters they are best placed to reduce a ballooning budget deficit and revive growth ahead of an election that must take place by June.
“Given the looming election and the talk of pending austerity packages ahead, this consumer survey highlights a surprisingly positive property price outlook,” Miles Shipside, commercial director of Rightmove, said in the statement. Consumers have the “impression that we are over the worst of the recent price falls and that there is likely to be upward pressure on prices.”
Rightmove surveyed 32,771 people from Jan. 4 to Jan. 18 for the survey.
Bank of England policy makers this month kept the benchmark interest rate at a record low of 0.5 percent. U.K. unemployment fell at the fastest pace since April 2007 last month.
“Employment seems to be holding up, and forced sales have been below forecasts,” Shipside said. “People hear these positive stories in the news and also directly feel the benefit of base rates being at record lows.”
For further information on the sales market go to www.trustintudor.co.uk
Friday 22 January 2010
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)
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)
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