Homeowners are covering all bases!

There are homeowners amongst us who are thinking outside the box by fixing part of their mortgage and leaving the rest on a variable rate.

They have the perk of incredibly low interest rates plus the added security should rates suddenly rise of being part fixed.

The majority of banks have allowed these mixed these deals, but some may charge two arrangement fees. An example of this is may be,

a Halifax customer with a £150,000 mortgage and 40% equity in their home could have £75,000 fixed for two years at 2.99%, giving monthly repayments of £355.

The other £75,000 could be on a two year tracker rate pegged at 2.04% above base, giving a current rate of 2.54% and monthly repayments of £338. They would pay the fixed-rate fee at £1,895, but not the tracker fee at £995.

If there is a a sudden rise in the base rate, the customer would be a little more protected, if it remains the same they will benefit from the tracker rate.

 

Be wary this Christmas!

An interesting article caught my eye this lunch time, (not just randomly reading ‘Grazia', a proper informative work article) "Christmas time for burglars" stated the heading. It started me thinking. Is my own property vulnerable? Have I left the ten foot tree bedecked with baubles and twinkling lights, surrounded by mounds of enticing gifts, all to the mercy of the overworked Christmas burglar?

Granted the ‘sweater' from Gran could go, but how devastating to find it all gone, and that feeling of having uninvited pillagers in your domain.

We all at some point over Yuletide leave our properties  empty, shopping trips, social events and visits, while with the elongated break, some of us even take holidays in the sun, (If only). Add this to the fact that the prospective booty is fantastically easy to target- conveniently left either in the hall or sitting room, well its like heaven for the potential thief!

The statistics tell us; burglaries peak not in the holiday month of August, but in the November to January period. One poor lady told of how she was visited on Christmas day!

"We had gone to visit my parents in Wales, and spent a lovely Christmas day with the family," she says. "We were enjoying the break from London - in fact, we were in the middle of a country walk when we got the phone call. It seems the burglars had got in on Christmas morning. Our holiday came to an abrupt end and we went back to face a ransacked flat. Everything had gone - cameras, video recorders, jewellery and my brand new computer."

It seems that the burglars had come through a communal front door that should have been secure, but the security lock had been left undone.

What can we do? Well, apparently most burglars are essentially opportunist, zoning in on the weakest link in a property's security. There are a few things that can be done to strengthen a property's defense-

Strong, secure doors with adequate locks are the first line of defense. Over half of all burglaries involve the thief gaining access from the back, so back doors and windows need at least as much attention as the front entrance. Security awareness and co-operation is equally vital - however advanced the specifications of the locking system a nifty thief can rapidly burgle several flats in one property given just one communal entrance carelessly left undone.

Well, I am going to check all our locks. While away at the outlaws I will ask our nosy neighbour to check on our house (she has been dying to do that) I will leave lights on. Not a problem in our house, as no one turns them off! So with a bit of care and attention, we won't be visited by the ghost of burglaries past this Christmas!

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This is a test to add a blog entry!

 

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Creative selling

Literally anyone that is remotely related to the property market will tell you that it is really going through a rough old time. The recession, government changes and a general downturn in spending has meant that houses on the market aren’t going anywhere, or at least not quickly enough.

There are those that have had their homes up for sale for so long that they feel they will never move, perhaps they have even only had one viewing!

 

Whilst people will suggest they lower the price of the house, this is not always possible for the homeowner. Those that can afford to do this have found that online property sites have been useful.

The auction format means that more often than not the house is sold for less than the market may offer but it will provide a quick property sale which for many, is highly desirable.

 

If there is absolutely no interest what so ever, it may be time to get creative. An owner in Cardiff decided to offer £15,000 cash reward for anyone that can locate a purchaser for them. It is all about maximising your property’s profile.

Another enterprising seller from The Gower decided that the purchaser of his large beach fronted property will also get his brand new boat free.

 If the going gets really tough, consider what else you could offer alongside your property to make your home even more appealing to a potential purchaser.

 

How do you check out a potential tenant?

Taking a tenant at face value is obviously not the best judge as to whether they are trustworthy, reliable and prompt payers! The question is how do you really check them out? Even references are not foolproof, that is why you need to check out what measures your reference provider is taking to ensure that the information provided to you really is of value.

 

The first part in the letting procedure is obtaining proper references. Your insurance company will insist upon this, especially if you are taking out cover for legal expenses and rent guarantee (a sensible option.) Many agents outsource this service to specialist reference providers, these may differ in quality of service, so check them out! Being a landlord can be quite lucrative, but it can also bring its own issues, from fraud and identity theft to having the tenants from hell.

 

These periods of economic uncertainty are breeding grounds for fraud. Nothing should be taken at face value, it is vital to do the relevant checks. To verify income, gather the relevant references from the tenants' employer and any previous landlords.

 

The next step would be to verify their suitability to actually rent a property. This should be carried out by an unprejudiced , expert third party and must include county court and bankruptcy searches, identification checks and validation of bank sort codes. If utilising a reference checking firm, make sure that they carry out the necessary checks in detail. It is not enough to just have a basic credit check, full identity and fraud checks need to be carried out.

 

The following should be supplied by your provider:

 

 Authentication

 

This literally means ensuring that your tenant is who they say they are. Previous addresses this will throw up if there are any CCJs. Data searches should look for detrimental information at undisclosed and linked addresses, if the tenant has failed to disclose a particular address it could mean that they may have something to hide.

 

Employer’s references

 

It is incredibly important that your client has the means to financially keep up with the rent, so to have their employer's details is vital. The employer's details should also be authenticated as they could be fictitious.

 

Guarantors

 

If a guarantor is getting involved they too need to be verified, and should be as carefully referenced as the tenant themselves.

 

Tenant history

 

Any previous landlord references should include all details of the tenancy even if they were model tenants, did they leave in arrears, leaving all kinds of property damage behind them? Obtain a three year address history with a reference from the most current landlord.

 

Most landlords want things to progress as quickly as possible, but it is crucial to note that you can't substitute quality for speed. All the necessary checks must be carried out properly; it really is pointless trying to rush proceedings only to find that you now have the tenant from hell. It's all about protecting your property and making sure that the rent is covered each month, this is why a full check on your potential tenant is vital.

 

 

Moving checklist

Firstly decide on a day to move (usually completion day) Fridays and bank holidays should be avoided, as removal firms will be in high demand for these days.

Listen to recommendations, or check with the BAR (British Association of Removers)

They will be able to give details of registered firms in your area.

 

Preparation is vital

 

Possessions need to be insured before they are moved. Most removal companies provide insurance. It should be noted that any packing done by you may not be covered by your removals insurance. If planning to transport things yourself, make sure they are insured in transit.

In advance of moving have a good clear out, there is no point in moving all unwanted belongings from one home to another. Have a Car boot sale, or donate unwanted things to charity.

 

Compile a dossier of useful addresses for your buyers, instructions on how to use heating/alarm system etc, this will prove invaluable to them. It is also handy to leave details of milk deliveries and rubbish collection days. Notify all relevant parties of your new address, telephone and internet providers, TV licenses, banks/credit cards, local council and inland revenue to name a few.

 

Gather together all keys, including those from friends, neighbours and family. Make a plan for the removers detailing which room and where your furniture will go.

Colour coding boxes and cases will ensure that they end up in the appropriate room.

Ensure that your mail will be re routed to your new address, cancel all deliveries that you may have and register with your new GP.

 

Hire a removal company as soon as contracts are exchanged and a completion date set. As with most things it is good to have at least three quotes for this, the cheapest is not always the best, make sure that you are comparing like for like (are packing, boxes etc and VAT included.) Always request your quote in writing, and ensure that it includes everything you have requested, including a time scale.

A representative should come and visit you at least three weeks prior to the move; they need to establish exactly what the move will entail. It is a good time to establish any objects that will need special care, for example computers, antiques, pictures etc. You can flag up any pieces of furniture that may require specialist handling, for example a piano.

Inform the removal company as to the parking situation at the new property, access is very important, if difficult it can add to the overall cost of moving.

 

Storage may be required; most companies will accept anything as long as it is not perishable, flammable, illegal or indeed even alive.

You will be charged for packing, transporting to and from your home, the amount of space required and length of time your belongings are stored.

Make a list of all belongings being stored in case anything is missing when delivered.

 

Removal day

 

When the day actually arrives it is literally all hands on deck, if you have small children and pets it is advisable to have someone look after them while the move takes place.

Ensure that the removal foreman has a plan of the rooms for the new house, parking is organised, and that you have all contact numbers required for the move on you.

Upon arrival at your new property check that all amenities are working and take a reading from the meter.

If you have carpets curtains etc included in your purchase, check that they are all present and correct.

 

At the end of what will seem like the longest day of your life, all that is left to do is collapse, get some rest and perhaps enjoy a glass or two of bubbly!

 

 

 

Creative Selling

Literally anyone that is remotely related to the property market will tell you that it is really going through a rough old time. The recession, government changes and a general downturn in spending has meant that houses on the market aren’t going anywhere, or at least not quickly enough.

There are those that have had their homes up for sale for so long that they feel they will never move, perhaps they have even only had one viewing!

 

Whilst people will suggest they lower the price of the house, this is not always possible for the homeowner. Those that can afford to do this have found that online property sites have been useful.

The auction format means that more often than not the house is sold for less than the market may offer but it will provide a quick property sale which for many, is highly desirable.

 

If there is absolutely no interest what so ever, it may be time to get creative. An owner in Cardiff decided to offer £15,000 cash reward for anyone that can locate a purchaser for them. It is all about maximising your property’s profile.

Another enterprising seller from The Gower decided that the purchaser of his large beach fronted property will also get his brand new boat free.

 If the going gets really tough, consider what else you could offer alongside your property to make your home even more appealing to a potential purchaser.

 

The only way to sell your home is by online video

Broadband is now faster than the speed of light and video marketing is now affordable to all. So to generate as many viewings as possible, why not use online video to sell your home.

Recent years have seen many changes within the market, marketing has become big business. It is now not enough to advertise in your agent’s high street window, the internet has opened up a whole new world, most estate agents now have an online viewing facility, and the next logical step would be a ‘movie’ of your home.

Unfortunately there are only a handful of forward thinking agents offering this service although it has been used across the world with great success for quite a while now. One of the leading UK internet based agencies look set to start their video home showcase service in the next couple of months.

Well aside from the main benefits of a lot of viewers being able to walk through your door twenty four hours a day, and the convenience of time saved by wasted viewings, the video’s main duty is to tell a story, in your case, welcome to my house, it is for sale, and it is worth viewing. Camera movement opens space and creates perspective, this is virtually impossible with a static 2 dimensional image. If you can open up space and show depth and perspective, along with a music soundtrack it is easy to evoke an emotional response in the viewer.

As a seller that’s exactly what you’re hoping for, and with video this moment of emotional attachment can happen way before they even step through your door for the first ‘real’ look around.

Perhaps the biggest benefit to those of you selling at the moment is that video home showcasing is in its infancy here in the UK. In a market place as big as the property market you need all the help you can to jump off that well stocked property website and stand out from the crowd.

Well you will certainly have that opportunity at the moment by introducing video to your selling tools now, and if you manage to sell your house without the agent’s intervention, you could also be saving between 3-5% of the value of your property, which well and truly covers any marketing costs.

An actual video home showcase will run anywhere from around 1’30 seconds to 3’30 seconds, this is a well researched time in response to viewers threshold for boredom. When you’re house hunting how many properties are you going to end up looking through before narrowing it down to the chosen few you actually want to arrange an appointment for?

It can be uploaded to a host of video friendly sites including Facebook and YouTube; you can then link to your friends and colleagues and have them send links to their friends and colleagues, which is the start to your ‘viral’ campaign.

With Google investing billions into YouTube and video recently you can be sure it is the future, and it will be found. By the time estate agents use video online as part of their normal service, which they will eventually, you could look forward to High Definition Blu Ray Viewings, Property Channels on Television showcasing videos, Mobile Phone Video Marketing, the list is potentially endless.

The Facts on Fixtures and Fittings

The legal bit

What exactly are fixtures and fittings? We are constantly being asked to clarify this topic.What should people take or leave behind, and what should they hope to find in their new property? This can cause some confusion and may even become quite contentious. There is not a definitive law to express exactly which items should be taken or left behind during the sale or purchase of a property.

There are always different expectations with regards to this issue. It is prudent to clarify exactly what will be included at the start of the sale proceedings. Legally speaking the seller is not obliged to leave any fixtures or fittings behind, but the onus is upon them to state exactly what they are prepared to leave. A good way to avoid any misunderstandings is to create an inventory which is then attached to the sales contract. This lets all parties know in black and white exactly what the score is.

If this inventory is not formed, it can lead to assumptions and misunderstandings, if you have removed something that was thought to be remaining, you could actually find yourself in a small claims court!

What is a Fixture/Fitting?

A fixture is understood to be any item that is bolted to the floor or walls, a fitting is any item that is freestanding or hung by a hook or nail.

Below is a list of items that usually fall into these categories.

Fixtures

Light fitments

Central-heating boilers and radiators

Built in wardrobes/cupboards (e.g. if they use a wall to form one of their sides and would thus be incomplete if they were removed)

Bathroom suites (sinks/baths/toilets)

Plugs

Kitchen units

Wall paintings

Fittings

Fittings

Paintings or mirrors that are not bolted but hung or screwed to a wall.

Carpets

Curtains and curtain rails

Free-standing ovens, refrigerators and washing machines

Beds/sofas and other free standing items of furniture

Lampshades

Television aerials and satellite dishes

How to Negotiate

Ascertain from the outset which items are fixtures and which are fittings, this will avoid confusion at a later date.State coolly and calmly which fixtures and fittings you would like to remain in the property, many a sale falls through due to a disagreement over the finer details.

Having a friendly demeanour when discussing these matters will certainly make the opposite side more accommodating.

Consider which fixtures and fittings you really want to take with you, it is quite pointless insisting on keeping the shower door if you are going to get rid of it as soon as you move house.

Don’t make unreasonable demands, it could strain the relationship that you have, and make any further negotiations difficult to say the least.

As soon as firm decisions have been made with regards to the fixtures and fittings, it should be logged down to avoid any confusion or contentions further down the line.

The issue of fixtures and fittings is not a small one, these items can add up to thousands of pounds and may make a big difference to the monetary worth of a property.

To replace all fitted and freestanding furniture, central heating fixtures, telephones, curtains, curtain poles, satellite dishes, fireplaces and external dustbins would probably cost the buyer somewhere in the region of £15,000.

It is definitely worth taking the time to clarify these details. It will most certainly be well worth your while. It will avoid any unnecessary disagreements and possibly legal trouble further down the track, not to mention saving you money!

How Can I Check Out A Potential Tenant?

The initial step is to acquire suitable references, your insurance provider will certainly require these if you propose to secure cover for legal expenses and a rent guarantee.

There can be risks associated with letting property which includes habitual fraudsters, identity theft, unreliable tenants along with other possible issues. Growth in scams means that any information a potential tenant provides should not be taken at face value and should always be investigated by experts in referencing.

Obtaining employer references for income validation and past landlord references is merely the first stage in the process of safe-guarding a successful tenancy. The next is verification by way of an expert and unbiased third party assessment of the suitability of a person to rent property. To be effective, this is carried out utilizing the most advanced technology and analytical techniques to obtain and match data from the widest possible sources of records available. Included in this are county court and bankruptcy information, identification checks and validation of bank sort codes - all of which can be carried out on-line.It is vital that the follwing are checked out by your provider:

Authentication: tenant screening should contain details to ensure that the tenant is who they say they are and that they haven’t either stolen an identity or developed one.

Linked addresses: any search for issues such as CCJs should not just be restricted to checking current addresses. Data searches should look for detrimental information at undisclosed and linked addresses, particularly as failure to disclose an address could well signify that the tenant has something they wish to hide.

Employer’s references: it is necessary to establish whether the tenant is employed with sufficient income to meet rental obligations – but it is equally important to be sure of the source of that information. Employers using personal email addresses, such as Hotmail, or mobile telephone numbers should only be accepted if they have been verified and authenticated with a full audit trail to support. In fact, any employer’s reference should be checked out to make sure that it is authentic.

Tenant history: previous landlord references should include the total history of the tenancy. Even if the tenancy ended with the rent paid up, had there been arrears or any other relevant problems, such as damage to property or complaints from neighbours? A standard three year address history should be obtained and a reference taken from the most recent landlord to ensure that tenants who have, for example, been living with parents for the last year have nothing to hide.

Guarantors: ensure that the verification extends to any guarantor involved. In fact, a guarantor should be as carefully referenced as the tenant themselves – after all, they will be the party that needs to be pursued if the tenant defaults. For this reason, guarantors based overseas should be avoided. If problems arise they will be harder to trace and the laws of the country in which they reside may make it hard or impossible to pursue them or to obtain a recovery.

 

Conveyancing Advice

The majority of client’s main concern is how long the conveyancing process will take.
Conveyancing solicitors should always do their best to work to your particular time frame, but this is dependant on the particular circumstances of your conveyancing transaction.

Industry statistics would suggest that a standard sale or purchase will take between six to twelve weeks to complete. This may, however, vary.
A remortgage or transfer of equity transaction should take less time but this is not always the case. Please be aware that where other parties such as mortgage lenders are required to execute documentation, then delays are inevitable in most instances.

It is of course possible to complete conveyancing in a shorter timescale. However, all parties must but be committed to these timescales, and in working hard to achieve them.
Complications, such as mortgage finance being arranged, can delay progress and can affect the desired timescale from being achieved.

If your conveyancing is of an extremely urgent nature, you should discuss time saving options with your conveyancing solicitor who should provide you with the appropriate legal advice if you decide to proceed in this way.

Please note that if additional work is required to achieve your expectations your property lawyer may need to charge you extra conveyancing fees. Your solicitor should inform you of such increased legal fees and disbursements.

At Convey Law , we will never be in a position to guarantee that your required timescales will be achieved, no matter how much extra work is undertaken by us. We do however promise to do our utmost to bring matters to a speedy conclusion. Please advise your conveyancing solicitor in writing at the beginning of your sale or purchase if timescales are an issue to you.

Advice On Conveyancing

The majority of client’s main concern is how long the conveyancing process will take.
Conveyancing solicitors should always do their best to work to your particular time frame, but this is dependant on the particular circumstances of your conveyancing transaction.

Industry statistics would suggest that a standard sale or purchase will take between six to twelve weeks to complete. This may, however, vary.
A remortgage or transfer of equity transaction should take less time but this is not always the case. Please be aware that where other parties such as mortgage lenders are required to execute documentation, then delays are inevitable in most instances.

It is of course possible to complete conveyancing in a shorter timescale. However, all parties must but be committed to these timescales, and in working hard to achieve them.
Complications, such as mortgage finance being arranged, can delay progress and can affect the desired timescale from being achieved.

If your conveyancing is of an extremely urgent nature, you should discuss time saving options with your conveyancing solicitor who should provide you with the appropriate legal advice if you decide to proceed in this way.

Please note that if additional work is required to achieve your expectations your property lawyer may need to charge you extra conveyancing fees. Your solicitor should inform you of such increased legal fees and disbursements.

At Convey Law , we will never be in a position to guarantee that your required timescales will be achieved, no matter how much extra work is undertaken by us. We do however promise to do our utmost to bring matters to a speedy conclusion. Please advise your conveyancing solicitor in writing at the beginning of your sale or purchase if timescales are an issue to you.

Just how much of the asking price are people paying out?

On the list of trickiest chores for anybody searching for a house is working out how much of an asking price the vendor is actually seeking to receive.Take a look at your regional property market and there will clearly be some homes which are heavily overpriced and several which have been placed on at a price which should make sure they sell quickly.In many cases and certainly right now, the latter is far rarer than the former.

When it concerns selling and buying,you don’t wish to accept less than the maximum for your home, nevertheless, you would like those people selling the properties you are considering, to wake up and lower their absurdly high prices.The problem is an investor who may have turned a large profit, will need a lower price than an owner occupier who needs as much as is possible to maneuver up the ladder.

An individual wanting to desperately be free from a mortgage they're not able to afford will typically take an offer that basically clears the debt.On the other hand homeowners who wish to trade up, but don't have any pressing need to and like where they live, are a lot more unlikely to take a low offer.

That makes it a good idea when seriously thinking of buying somewhere to find out as much with regards to the sellers and their motivation as possible and be ready to accept that although some will take a cheeky offer, others will sit tight.Homeowners looking to move in the same popular area, need as much as possible to bridge the gap upwards.Low interest rates are keeping many out of the forced sellers bracket.

But things are changing according to the latest Hometrack report. It says sale prices as a percentage of asking prices are falling and properties are remaining on the market for longer.

Conveyancing Advice

The majority of client’s main concern is how long the conveyancing process will take.
Conveyancing solicitors should always do their best to work to your particular time frame, but this is dependant on the particular circumstances of your conveyancing transaction.

Industry statistics would suggest that a standard sale or purchase will take between six to twelve weeks to complete. This may, however, vary.
A remortgage or transfer of equity transaction should take less time but this is not always the case. Please be aware that where other parties such as mortgage lenders are required to execute documentation, then delays are inevitable in most instances.

It is of course possible to complete conveyancing in a shorter timescale. However, all parties must but be committed to these timescales, and in working hard to achieve them.
Complications, such as mortgage finance being arranged, can delay progress and can affect the desired timescale from being achieved.

If your conveyancing is of an extremely urgent nature, you should discuss time saving options with your conveyancing solicitor who should provide you with the appropriate legal advice if you decide to proceed in this way.

Please note that if additional work is required to achieve your expectations your property lawyer may need to charge you extra conveyancing fees. Your solicitor should inform you of such increased legal fees and disbursements.

At Convey Law , we will never be in a position to guarantee that your required timescales will be achieved, no matter how much extra work is undertaken by us. We do however promise to do our utmost to bring matters to a speedy conclusion. Please advise your conveyancing solicitor in writing at the beginning of your sale or purchase if timescales are an issue to you.

Online Conveyancing can be quick and hassle-free

Online Conveyancing can be quick and hassle-free

Every day, thousands of property transactions take place in the UK but not a single one is legally completed without the proper conveyancing process. Whether one is buying, selling, re-mortgaging or leasing commercial or residential property, conveyancing is crucial to ensure that the property is legally transferred from the seller to the buyer. Conveyancing is a legal process and worth while for both buyer and seller. DIY conveyancing can be difficult and time consuming. Therefore, there are several advantages to using conveyancing services. Instead of wasting time with paperwork, fees’, filling out forms and document searches yourself; it is always convenient to approach a professional Conveyancer to handle everything on your behalf. Property conveyancers are the people who can help you with your conveyancing process by thoroughly guiding you throughout the property transaction. Online Conveyancing With the increasing demand for conveyancing, various online conveyancing firms have sprung up to help those who lack legal expertise to complete the legal process of conveyancing. By preparing legal documents, getting them signed by parties involved in transactions, submitting those documents to court and paying necessary taxes and duties on time, online conveyancers help people to avoid the legal hassles and also speed up the conveyancing process. Whether you want to sell, purchase, mortgage/re-mortgage, lease, enfranchise, or transfer residential or commercial property; they help by saving you time and money. Being a professional, conveyancing solicitor, they follow a streamlined process and work with great diligence and proficiency, which ultimately saves you time and money and also speeds up the conveyancing system. Getting help from online conveyancing firms is a good idea to save additional money and time, for the reason that online conveyancing is faster than conventional conveyancing. The best part about online conveyancing is that it provides you conveyancing services at highly competitive prices. Approaching an online firm is fairly easy, but it is advised that you choose the one that is most experienced and offers services that meets your individual conveyancing needs and budget. Although an online conveyancing quote is a quick and simple way of getting several conveyancing quotes, never forget to ask the online conveyancing firm about the hidden costs or additional fees. If you are also involved in any form of commercial or residential property dealing, try to employee the services of any online conveyancing lawyer or firm to take care of the entire conveyancing services from the beginning till the very end. By carrying out good research, you can get cheap conveyancing services with peace of mind.

 

 

 

Sellers drop prices to lure buyers

New sellers have dropped their asking prices by 1.1% to create a national average asking price of £229,767 in a bid to help lure buyers.

It means prices have been reduced by 3.4% in the last three months, according to Rightmove’s house price index for September.

On a regional basis, asking prices declined the furthest in the East Midlands, down 4.4% to £161,603. On an annual basis, prices in the North and the South East saw the sharpest increases, up 4.6% to £151,795 and £298,903 respectively.

Miles Shipside, commercial director for the portal, says: "The double-dippers will be able to point to a clear downward trend, with new sellers dropping their asking prices for three months on the bounce. They can cite tough competition amongst sellers and agents struggling to find proceedable buyers for their record levels of unsold stock."

The number of new properties to have been listed on the portal this month has declined to 26,000 – the lowest volume since April.

The average number of properties for sale per estate agent is now at 79.

The survey follows a poll undertaken by national opinion pollster YouGov on behalf of the Council of Mortgage Lenders, which suggests that 76% of individuals polled have aspirations of owning their own home in the next two years, which is down from the 78% the last time the survey was undertaken in 2007.

The CML attributes the slide to a substantially lower short-term appetite (42%) for home ownership among adults aged 18 to 24, due to their desire for greater flexibility and mobility in their living arrangements and a lack of affordability.

 

Sellers drop prices to lure buyers

New sellers have dropped their asking prices by 1.1% to create a national average asking price of £229,767 in a bid to help lure buyers.

It means prices have been reduced by 3.4% in the last three months, according to Rightmove’s house price index for September.

On a regional basis, asking prices declined the furthest in the East Midlands, down 4.4% to £161,603. On an annual basis, prices in the North and the South East saw the sharpest increases, up 4.6% to £151,795 and £298,903 respectively.

Miles Shipside, commercial director for the portal, says: "The double-dippers will be able to point to a clear downward trend, with new sellers dropping their asking prices for three months on the bounce. They can cite tough competition amongst sellers and agents struggling to find proceedable buyers for their record levels of unsold stock."

The number of new properties to have been listed on the portal this month has declined to 26,000 – the lowest volume since April.

The average number of properties for sale per estate agent is now at 79.

The survey follows a poll undertaken by national opinion pollster YouGov on behalf of the Council of Mortgage Lenders, which suggests that 76% of individuals polled have aspirations of owning their own home in the next two years, which is down from the 78% the last time the survey was undertaken in 2007.

The CML attributes the slide to a substantially lower short-term appetite (42%) for home ownership among adults aged 18 to 24, due to their desire for greater flexibility and mobility in their living arrangements and a lack of affordability.

 

Tenants warned of rogue landlords

My sister is heading off to Swansea University this month, so any information on this topic is of use. The Guardian has a very informative article on 'rogue landlords' and the various scams that they use to extract money from vulnerable students. I have passed this information on to my sister so that she can be aware of the problems facing students looking for accomodation.

Students are being warned to beware of scams involving privately rented house following research by Shelter showing that up to 1 million people could have fallen victim to "landlord scams" in the past three years.

Shelter found that 2% of those questioned for its survey had fallen victim to a scam involving a private tenancy or landlord, equating to around 1 million people in Great Britain, while 4% knew someone who had either lost money or had problems retrieving their deposit

The survey – published as hundreds of thousands of university students prepare to move into rented accommodation for the autumn term, and based on 2,234 people representative of all British adults – is part of a campaign launched by Shelter this week to raise awareness of the dangers of rogue landlords and con artists.

The charity wants prospective tenants to be aware of the most common rent scams they have uncovered during its investigation. These include:

1. Let and Run:

Con artists break into empty properties and then rent them out as their own to unsuspecting tenants, who hand over large sums of money as a deposit and rent. At that point, the con artists disappear.

2. Duped into Debt:

Extortionate amounts of money are taken for hidden costs without the tenant knowing, such as fees for a tenancy inspection which the landlords "forget" to tell tenants about, immediately putting people into arrears.

3. Receipt Rip Off:

A con artist will ask for funds to be wired to a money transfer service, such as Western Union, as a sign of good faith that a tenant is committed to renting a property. The landlord will ask for proof of receipt and then withdraw the funds using the transfer details.

4. No need for a Deposit:

Rather than asking for a deposit, the landlord will request tenants to provide guarantors. At the end of their tenancy these guarantors can become liable for unnecessary and extremely costly "repairs".

5. Unprotected Deposits:

Some rogue landlords still avoid putting tenants' deposits in a tenancy deposit scheme, withholding it at the end for unfair reasons. Although the tenancy deposit protection scheme was introduced by the government in April 2007, Shelter says withheld deposits are a major issue for tenants, with one in four landlords and one in five tenants admitting they were not aware of the scheme.

Suking Chek, a Chinese student starting university in London, ended up more than £400 out of pocket when her landlord failed to carry out promised repairs to the flat she was renting, making it uninhabitable.

Even though environmental health officers deemed the property unfit to live in and issued a prohibition order on the landlord preventing the flat from being re-let, the landlord stalled for months before returning Chek's deposit and advance rent. They eventually paid but even then withheld over £400.

It is shocking that so many people have fallen victim to these kind of scams but even more astonishing is the fact that these rogue landlords are seemingly able to get away with it scot-free.

With over a million people victims to date clearly there could be scammers in every city up and down the country. They knowingly let people hand over their hard-earned cash in good faith, with the sole intent of stealing it. It is simply not acceptable that people who just trying to secure the basic human need of a roof over their head should end up ripped off.

Many tenants have also fallen foul of non-refundable booking fees. While this is not technically a scam, the money involved can be considerable for those losing out.

The private rented sector has increased more rapidly than any other tenure, with 3m households renting privately and predictions that one in five people will be living in the sector by 2020. Increasing property prices and small – or no – salary rises mean that many aspiring homebuyers have been priced out of the market for the forseeable future.

Not only is it vital that people who are renting watch out for these kinds of tricks, but the government must also clamp down on rogue operators who are exploiting the system and taking advantage of people who simply need a home.

 

Is is a good time to go for a tracker mortgage?

"Will they? Won't they?" is a refrain that has recently been resonating in homes nationwide: whether the Monetary Policy Committee at the Bank of England will raise base rate or not.

The bargain base rate – left unchanged again at 0.5 per cent in August's meeting, the 17th month in a row – has made mortgages more affordable for many.

In particular, trackers that follow base rate have become more attractive given the historically low rate.

For example, for those borrowing 80 per cent of their property's value, Nationwide offers a two-year tracker, priced at 3.88 per cent (base rate plus 3.38 per cent). Elsewhere, the Post Office has a lifetime tracker priced at 3.89 per cent (3.39 per cent over base rate).

However, the longer base rate has stayed at 0.5 per cent, the more jittery those seeking trackers have become.

After all, signing up to either of these deals may look good today but, if base rate were to climb to 4 per cent over a period of five months, say, a 7.38 per cent mortgage rate would cause serious financial harm.

On the face of it, tracker-rate products look incredible value at present, In more normal times, we would recommend a tracker rate is still affordable with a 1 per cent rise factored in, but now we recommend a 2 per cent rise is planned for.

Last week, the Policy Exchange went as far as to warn base rate could hit 8 per cent by 2012 because of inflation. However, says Melanie Bien at Private Finance, the consensus is for a slower increase in base rate: "Interest rates are at all-time lows so there is only one direction for rates to go."

One alternative, is to consider a tracker with a "switch to fix" option on offer at lenders including Woolwich, Nationwide and RBS. This allows you to jump ship into one of the fixed rates without incurring a penalty.

 

What does your property lawyer do?

Conveyancing literally means transfering a property title from one person to another. In essence it is the legal process of buying and selling property. Who does the conveyancing? Property conveyancing by law must be done by a property solicitor or licensed Conveyancer. One lawyer cannot act for both parties, as this would cause a conflict of interest so therefore both the buyer and seller will have their own representation.

 

What is the distinction between a Licensed Conveyancer and a Solicitor?

 

Solicitors are regulated by the Law Society and normally practice all areas of law, including conveyancing.

Licensed Conveyancers are regulated by the Council for Licensed Conveyancers and specialise only in conveyancing. Most Licensed Conveyancers are Solicitors who have converted to Licensed Conveyancer status. The processes and consumer protection standards are the same for either type of firm.

 

 What do they actually do?

 

Basically the Conveyancer is purely acting in your best interest in the property sale or purchase. They make sure that all the terms and conditions of the sale contract are reasonable and that the financial information is all as it should be. The process for what they actually do differs as to whether they are acting for the buyer or the seller

 

What is the process?

 

The seller's Conveyancer will first request a copy of the land registry entry for the property being sold. These are called office copies. A contract will then be prepared for the sale by your solicitor, incorporating the land registry plan and details, before forwarding it to the buyer’s solicitor. The buyer’s solicitor will send for the searches from a range of bodies, one being the local authority, and will assess the contract for sale which has been received from the seller's lawyer.

 

Additionally, if the buyer is borrowing money on a mortgage then the solicitor will need to receive a copy of the formal mortgage offer and be satisfied that the buyer has sufficient funds available to complete the transaction. If there are items in the contract for sale that the buyers solicitor is not happy with, then they will raise a query with the other seller's solicitor.

 

Once all of the queries have been resolved, the searches have been received, and proof of funds achieved, then both parties will be in a position to exchange contracts. Exchange of contracts is the point of no return for both parties and is a legally binding agreement for that Seller to sell and the Buyer to buy the property. At any time up to this point, either party can withdraw from the process without any penalty other than any monies they have spent on surveys, mortgage application fees etc. At exchange of contracts a completion date is normally agreed when the transfer will be finalised. On the day of completion the monies are transferred between the parties and ultimately, the keys are handed over.

Rental Property Checklist

Renting a property should not be jumped into lightly; there are many factors to be considered. Even though you are renting, the property will be your home for a period of time. The checklist below will help you ascertain whether it is right for you, balance out the location, condition and cost of living in the desired property.

 

The outside

Does the outside of the property appear to be in good condition?

Does the property seem secure? Are external doors secured? Is there an entry-phone system and burglar alarm?

Is there a garden? Who is responsible for the maintenance of the garden?

What is the area like? Are your preferred amenities and transport links within easy reach?

Are there any potential nuisances?

What are the neighbours like?

Has the property ever been burgled or damaged?

Are the locks of good quality and secure?

 

The inside

Is it in good condition? Are there signs of damp, flaking paint or infestations of any kind?

Do repairs need to be carried out? Are there any broken items of furniture?

Is there central heating? Do all the radiators function properly?

Is it properly insulated? Is there double glazing?

Is there enough storage space for your belongings?

Is there any sign of dodgy wiring, loose wires or faulty plugs or lights?

Do kitchen appliances such as washing machines/dishwashers work?

Are there enough kitchen cupboards and work surfaces?

Are pots, pans and kitchen equipment in good enough condition to use?

Are the bedrooms adequately heated? Are there curtains?

Check the bathroom(s) and make sure taps are not leaking. Does the shower work properly?

Are the sealants around the bath and shower intact?

Are you allowed to change the decoration in the property?

Are there enough electrical and telephone points and are they in the right places for your needs?

Does it have broadband or wi-fi?

 

Safety measures

Have all appliances had safety checks (PAT tested)? Is the paperwork available to view?

Do the downstairs windows (if any) have locks?

Is there a burglar alarm?

Is there a safety blanket and fire extinguisher in the kitchen (required by law)?

Is there a Landlord's Gas Safety Record available to view?

Do the furnishings comply with the latest fire safety regulations (1989 Fire and Furniture Regulations)?

Are there carbon monoxide detectors present?

Are there enough smoke alarms? Do they work?

Is there an easy means of escape in the event of a fire?

 

Financial concerns

How much is the rent and what is included?

What other bills are there and what are you liable to pay for?

How much of a deposit is required? What are the conditions for the landlord deducting money from the deposit?

What are the estimated running costs of the property?

Can you comfortably afford the rent on top of the deposit and running costs?

 

General considerations

If anything needs to be repaired, you will have to ask the landlord in writing

If the landlord agrees to make repairs, get it in writing

Double-check the inventory before you move in

Get a copy of the tenancy agreement and make sure you fully understand it

Get (and keep) your own signed copy of the tenancy agreement

Can you ask previous tenants about their experience of the landlord and the property?

Check and note all meter readings on the day you move in.