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Finance News
Keith Wood - August 09
Business - Don't Talk
yourself out of it!!
We’re in a recession and that
makes people frightened. It is however exactly the time when you most need
to be brave in business. Perception and confidence are key to the image
projected by your business, and your clients and customers will be looking
to you for cues that all is well. Yet when business is slow most small
businesses will conclude that they have no budget for advertising, and that
money spent on marketing is a luxury. In fact the opposite is true. It may
be that for the first time ever, you now really need to advertise, and
consider too that if other people are thinking as you have been, then there
will be less competing advertisers in your market place, and a clearer path
for your message. Money spent on promotion will in fact go further now than
it did before and you are more likely to be rewarded for your courage.
Whatever you do, you mustn’t share any anxieties you may have about money
with your clients. Many small businesses make the mistake of discussing
openly how difficult things are. Your customers will waste no time in
spreading the word, that’s just what people do. And why shouldn’t they? They
are following your example. People have an appetite for drama, and your
misfortunes will feed it very nicely, but people are also attracted to
success, so ‘confide in them’ how well you are doing and let them tell
everyone about that instead. Focus on the positives, play down the
negatives, stand tall, and you’re more likely to stay standing. Sharing your
bad news is just putting the nails in your own coffin. Ask yourself whether
you would be more likely to use a growing business or a dying one?
Keith Wood of Kingswood
Law is a Gold
Member of RH123 contact
details
Mortgage
news
Keith Wood - Feb 09
Mortgage interest rates hit
all time low – What the rate cut means to you!
Kingswood Law comments on the
Bank of England’s decision to decrease the base rate to 1.5%.
The recent cut in interest
rates to 1.5% is the lowest in 315 years. This half percentage point
reduction brings the rate to below 2% for the first time since the Bank of
England was founded in 1694.
This is now the fourth
reduction by the Bank since October’s 5% level.
What the rate cut means to
you?
Whilst falling rates mean some
savers lose out borrowers on tracker deals may reap the benefit.
For those borrowers on fixed
rates circa 5% + they could find they are better off financially by paying
any early repayment charge to end their current mortgage and move lender for
a better rate and cheaper monthly payments.
For borrowers on their lenders
Standard Variable Rate the recent cut may encourage them to move to a
tracker deal where again they may benefit from a better rate and cheaper
monthly payments.
It is important to remember
that whilst rates can come down they can also rise, so anyone wanting to see
how this recent rate cut affects them should seek advice from an independent
broker. Kingswood Law has access to the entire mortgage market and is well
placed to scrutinise the choice available on the customer’s behalf to make a
recommendation based on their circumstances.
Public perception seems to be
that lenders don’t have funds but brokers still have access to thousands of
products including exclusive deals, many of which are not available directly
from lenders. Despite current market conditions, houses are still being
bought and sold and mortgages are still being sourced and arranged for
purchasers and for those that need to remortgage.
Above extract is from the news
section
www.kingswoodlaw.co.uk/keith
Your home may be repossessed
if you do not keep up repayments on your mortgage.
Keith Wood of Kingswood Law is a Gold Member of RH123
contact details
Local Property
from Jeff Travis
July 2008
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Earn
£400 per month – let your spare room!
Are you feeling the
squeeze and do you need another £400 + per month ?
You may not like the idea
of a stranger in your home, but it can be a great way to solve a financial
crisis.
Of course you need a
spare bedroom, and if you are occupying the bedroom with en-suite bathroom
consider giving that to the Tenant to charge more and maintain privacy.
You do have to get
permission from your mortgage company, sort your insurance, ensure you meet
gas, electricity, fire and smoke, and health and safety regulations.
You do need to advertise
for tenants and interview interested people and choose the one you feel
comfortable with and obtain good references.
You do need to agree
clear ground rules for the tenancy and have a formal written signed
Agreement that sets out everything you and your Tenant must – and must not-
do.
You do need to agree the
monthly rent and take a deposit and comply with Government regulation on
deposit taking.
If it seems too risky and
too much hassle let an agency do it for you. The prices and services
vary of course but by way of example we can do it all for you for a single
fee of £250 (VAT free). I will appraise your property and suggest what you
need to prepare for a tenant. Then I will organise all steps of the process
with your agreement at each stage, until you have the right Tenant.
Call me for a chat – it
could be the beginning of light at the end of your black financial tunnel !
Jeff Travis of Prestige Letting Services is a Gold Member of RH123
contact details
Local Property
from Keith Wood
May 2008
It may
seem strange that problems arising in the USA from individuals with a poor
credit history, struggling with unaffordable mortgages, should affect us,
but
this is
because many of these so-called 'sub-prime' mortgages were sold onto other
banks world-wide, including many based in the UK.
This has caused banks to
be cautious about the established practice of lending to eachother, and it
is this trend which led to the problems at Northern Rock, who relied on this
facility, over investors' deposits, to fund their mortgages.
The upshot
across the board is that lenders are being more selective in who they lend
to and applying more stringent criteria to them.
It is not
a time for panic, but it is a time to get your house in order and seek
proper advice where financial lending is concerned, in order to make
yourself as viable a prospect as possible. One positive step you can take is
to ensure your credit rating files are correct and up-to-date. Contact the
following agencies, and for a small fee, you can request a copy of your file
and amend any inaccuracies. Experian 0844 481 8000, Equifax 0870 0100 583
and Callcredit 0113 244 1555.
It is
unlikely that most homeowners will suffer severely from the anticipated drop
in property values over the coming year, since values have increased so
dramatically (almost threefold over 10 years), those who have bought
recently on 100% mortgages are most likely to experience difficulties,
however, keep in mind that even where negative equity arises ie. where the
value of the property falls below the amount of the mortgage, this is only a
problem if you need to move. Seek advice on renegotiating your current loans
to get the best deal possible, and reprioritise your finances if necessary, making
sure your mortgage is at the top of the list.
*Your home
may be repossessed if you do not keep up repayments on a mortgage. *You may
have to pay an early repayment charge to your lender if you remortgage.
Above extract from the mortgage bulletin from Kingswood Law. Copyright:
Bluestone Publishing Ltd 2008
Keith Wood of Kingswood Law is a Gold Member of RH123
contact details
Local Property
from Keith Wood
March 2008
Springtime
decisions - Should I stay or should I go? Moving home can be such a hassle,
it’s sometimes preferable to just stay put and do up your existing home.
Creating more living space not only makes your home more pleasant to live
in, but can increase its value for when you do decide to move.
Beneficial
changes often recommended by estate agents include loft conversions,
extensions, conservatories and garage conversions.
Ballpark
figures from the Royal Institution of Chartered Surveyors in December 2007
suggest the following approximate costs:
* Garage
Conversion: 6x3m space £9000
* Loft
Extension: 6x5m £28,000
* Rear
Extension: 3x3m single storey £15,500 two storey; £25,500
*
Conservatory: 3x3m £11000
*Always
get quotations from reputable builders and remember to contact your local
authority regarding planning and building regulations consent. You will also
need to check if your property is listed or if you live in a conservation
area.
If you are
looking to remortgage to fund home improvements, move, or buy for investment
you should be aware that due to the credit crunch, lenders are imposing more
stringent criteria. It makes sense to speak to an Independent Mortgage
Broker who has up to date information, access to the whole of the market,
and often has deals not readily available on the high street.
*Your home
may be repossessed if you do not keep up repayments on a mortgage. *You may
have to pay an early repayment charge to your lender if you remortgage.
Above extract from the mortgage bulletin from Kingswood Law. Copyright:
Bluestone Publishing Ltd 2008
Keith Wood of Kingswood Law is a Gold Member of RH123
contact details
Local Property
from Jeff Travis
January 2008
Are you
thinking of letting a flat or house or even a room and doing it all yourself
to avoid paying a Letting Agent? Beware – because D.I.Y. letting can be
very, very expensive!
Did you know for example that if your property is leasehold or
mortgaged, you need permission to let it. After that there are many crucial
aspects to learn about, all of which an agent can deal with for you:
-
Advising on Health and safety
laws – including gas, electricity and fire – these impose severe
penalties if you get it wrong.
-
Conducting a tenant assessment
including credit checks and employer/landlord references.
-
Advising on deposit handling,
because it is now illegal to hold deposits.
-
Ensuring inventory and schedule
of condition, making it easy to prove damage and breakage at the end of
the tenancy.
-
Preparing a Tenancy Agreement
that safeguards you. If you are letting a room you need specialist
advice to help prepare a Licence setting out terms and conditions for
your lodger.
-
Answering your pre-let decoration
and furnishing questions, saving you time and money.
And perhaps most importantly, your Agent will probably
find a suitable tenant more quickly than you can, and maintain a higher
overall occupancy level – every month unlet, costs you one month’s rent.
Agency fees of course vary, but the fee you pay your Agent can
certainly be much less than the cost of making a D.I.Y. mistake, at Prestige
Letting for example we charge just 8% (No VAT).
Jeff Travis of Prestige Property Letting Services is a Gold Member of RH123
contact details
Local Property
from Jeff Travis
November 2007
Landlords – could you
be held responsible for the death of a Tenant this winter? Tenants –
please be careful in there!
It’s not hard to get peace of
mind for Tenants and their Landlords this winter. This winter will be cold
and wet. It’s a time to stay indoors – but are we safe? And who is
responsible for our safety – us as Homeowners or Tenants, or our Landlords?
Every winter newspapers carry
more tragic stories of people overcome by fumes, housefires, electrocution
and accidents. Many of these situations affected Tenants…and then inevitably
their Landlords. The law is pretty clear about Landlords’ responsibilities
and failure to comply can result in severe penalties.
So, Landlords and Tenants what
are the ‘must do’ things to protect yourselves?
-
All gas fittings and flues
must be checked at least annually by a Corgi engineer and a certificate
issued to Tenants. Penalties can be a fine up to £5000 and prison.
-
Smoke alarms should be
fitted at key points and should have new batteries at the beginning of
Tenancies, although it is then Tenants’ responsibility to renew
batteries. Test them to prove they work before they are needed!
-
An NICEIC electrician
should carry out a 5 yearly periodic inspection on all fittings and
appliances and issue a safety HP certificate (copy to Tenants).
Once all that is done you can
settle down in front of the telly – you have peace of mind.
Jeff Travis of Prestige Property Letting Services is a Gold Member of RH123
contact details
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