What is a survey?

For a sale or purchase to occur you need to organise a surveyor to come and survey the property you wish to purchase. This will give you a detailed account of the condition of the property and whether it will be a sound investment.

There are three types of survey-

Valuation Report

Your Mortgage provider will insist in a valuation report before they will agree to lend you any money. This lets them know that the property is sufficient security to cover the loan .If the property is unfinished; they will carry out checks on the builder and the development. They usually release the money in stages until the building is complete, and can then be valued. The cost of this is usually about £100.

Homebuyers Report

This is a report that gives details of the basic fabric of the property. This tells us the faults and failings of the property that could well affect the overall value. This may cost around £250.

Full Structural Survey

This is a far more in depth report than the homebuyer’s report it really goes into the construction and condition of the property and as such may cost twice as much. This is very informative, giving details of how it was constructed, materials used and the condition of the roof walls etc. This report is usually for old, expensive and properties in need of repair.

Once you have decided which survey is the most appropriate for you, contact needs to be made with a recommended surveyor. They will need details of the property. New builds often come with a guarantee, that ensure against major faults that may be the result of builders negligence. If you new home doesn’t come with a warranty, a homebuyers report could be for you. When going for the pricey end of the market, it would be well worth having a full structural survey.

Time and cost of survey

This will depend upon the type of survey commissioned. Also taken into account will be size, condition and location of property. As with most things it is always sensible to have a couple of quotes from different surveyors.

 

We all want to be mortgage free at fifty

We all have a dream that as we approach our ‘autumn’ years, we will no longer be a slave to our mortgage. We want to have the disposable income to spend as we wish, travelling, hobbies or simply having the luxury to choose.

 

The co-operative bank has found in its research that 62% of UK consumers aim to become mortgage free by the time they reach the age of fifty.

With the mortgage paid off, the main objective of 52% of those surveyed was to enjoy more holidays.

 

Nearly a third (31%) said that the extra cash would be saved for their retirement, a quarter (27%) said that they would work fewer hours, or even work part-time.

Overpayments are being made with the goal in site of clearing the mortgage. Many are taking advantage of the current low interest rates.

Tips for getting a mortgage

Before you start the application process, you'll need a thorough understanding of the mortgage market.

1. Do your research

Reading up on key mortgage terms might not sound like much fun but you're unlikely to get the best if you don't know the difference between a fixed rate mortgage and a tracker. If you're a first-time buyer, you might want to get informal advice from friends and family who have bought their own homes. Bear in mind, however, these people are unlikely to be qualified financial advisers and you shouldn't rely too heavily on their advice.

2. Consult an independent mortgage broker

A specialist broker can answer any questions about the mortgage process, help you hunt down the best deal and warn you about hidden loopholes.

3. Put money in the bank

The credit crunch brought an end to the carefree days of 100% mortgages when people didn't even need to put down a deposit to buy their property. These days, potential homeowners will need a sizeable lump sum before they can buy.
It is vital that you scrimp and save as much as you can to build a deposit nest egg. You could set up a direct debit to make sure that a portion of your salary goes into a separate savings account each month. Remember to choose an account with a competitive interest rate to make the most of your money.

4. Raid the Bank of Mum and Dad

Despite their best efforts, plenty of people are only able to get onto the property ladder by accepting help from their parents. If you are having trouble getting your deposit together, discuss your options with any family members who might be willing to help. However, you should always consider the impact this arrangement will have on your relationship.

5. Find the right property at the right price

Tennis courts and acres of land might be features of your dream house but most of us need to make compromises to find a property that suits our bank balance. You're unlikely to get a mortgage on a home worth £500,000 if you're earning £20,000 a year!
You should also think carefully about any other factors that affect property value. For example, being within the catchment area of a good school causes house prices to rocket. Even if you're not planning to start a family, it's a good idea to visit the Ofsted website to research local schools.
Alternatively, high crime rates can cause prices to plummet. To find more information on crime in your area, you should check out the Neighbourhood Statistics website.

6. Check your credit rating

Before you approach a potential lender, you will need a clear understanding of any factors that could damage your chances of getting a mortgage.
The best way to do this is by checking your credit rating with one of the UK's three credit referencing agencies .If your credit score is low, don't panic. There are a number of steps you can take to improve your result. You can increase your score just by registering on the electoral roll and making sure you pay your bills by the due date each month.

7. Look out for loopholes

It's an old chestnut but if something looks too good to be true, it probably is. When applying for a mortgage deal, you need to go through the details with a fine tooth comb and make sure you're aware of the terms and conditions.
Just imagine you take out a deal with an initial low rate of interest. It might seem like a bargain at first but what happens when the introductory rate expires? You could end up with an uncompetitive rate or having to pay a hefty penalty if you leave your lender.
Again, seeking advice from an independent mortgage broker should help you avoid these pitfalls.

8. Boost your equity

If you already have a mortgage, now could be the right time to remortgage as competition heats up on the mortgage market.
If you are considering remortgaging your property, you'll get a more competitive deal if you have a high amount of equity in your home (the difference between the market value of your property and how much is left to pay on the mortgage).
There are simple steps you can take to build up your equity such as overpaying your mortgage each month. However, remember to make sure your lender won't penalise you for this. Alternatively, you could increase the value of your property with home improvements.

9. Shop around

As with any financial product, you should never accept the first deal you're offered. You're much more likely to find a mortgage that suits you by approaching a range of lenders. One of the easiest ways to compare available deals is by using an online price comparison site.
Yet again, don't forget to speak to an independent mortgage broker before taking any drastic action.

January freeze hinders property market

 The Arctic weather conditions put a freeze on the housing market during January as buyers and sellers put their moving plans on pause.

Overall, 20% more surveyors reported a drop in new house hunters than those who saw a rise, down from 18% more who reported a rise in inquiries in December.

At the same time, a balance of 5% of surveyors said the number of people putting their home on the market fell, down from 15% who had seen an increase in sellers during December.

Bad weather had had a negative effect on the level of new sales agreed. Despite the slowdown in activity, house prices continued to rise with 32% more surveyors reporting price increases in January than those who saw falls, up from 30% more in December.

Surveyors remain confident that the dip in activity is temporary, with the proportion who expect prices to continue rising doubling during the month from a balance of 12% to 24%.

Things are likely to pick up in the forthcoming months as we step into spring. The housing market recovery continues to be strongest in London, the south-east and the south-west.

Halifax's chief economist, Martin Ellis, said he expected to see more homes coming on to the market in the coming months, and this would curb further price rises in 2010.

 

Time for lease extensions

If you own a flat built during the 1960’6 up to the 80’s with a 99 year lease, you may well find that selling or mortgaging is quite difficult. Leases under 70 years can be hard to sell, especially in today’s unsettled economic times.Mortgage lenders are reluctant to lend on flats with short leases, as they do not return enough security. Several lenders have increased their minimum lease term requirements; the unexpired term is now 80 years or less, the premium payable may be much higher. It is now advisable for leasehold owners of flats with short leases to exercise their right to extend it. This will make selling the flat easier.The law states that 50% of the amount by which the property increases following the lease extension, needs to be paid as part of the compensation to the freeholder. An example of this is, a lease extension of £250,000 flat, with 81 years remaining on the lease, may pay a premium between £3,000 and £6,000, but to extend a lease for a property with 65 years unexpired, the premium could leap to between £19,000 and £24,000.