Local Property
from Keith Wood
May 2008
Alarmed by
the recent housing market developments? Don't panic.
more info
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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