First Time Buyers

Planning to move to London? Relocating is hard, and London is not the easiest city to adapt to.

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Getting yourself mentally prepared is the first step and we found a good article about things to consider before moving to London on Property Division. We dived them into ‘pluses’ vs. ‘minuses’ so you can do the math:

– higher rents

+ more available jobs and different types of careers to choose from

+/ – housemates (it’s a + or a – considering the type of person you are)

+ meeting interesting people

– high costs for transportation

– pricey pubs

+ lots of new things to see

+++ everything’s open late!

Things Northerners Should Consider When Relocating to London

Now what do you choose? Being a tourist or a Londoner?

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Understanding the difference…

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When searching for the ideal property to buy, aspiring homeowners may be faced with a choice: leasehold vs. freehold. What are the differences?

 

 

Leasehold vs. freehold: the basics

The main difference between leasehold and freehold is that if you buy a leasehold property, you own the property but not the land it stands on. With a freehold property, you own both the building and the land.

In England and Wales, the majority of flats are leasehold, while houses are usually sold as freehold properties.

 

Buying a leasehold property

With leasehold properties, the land the building stands on is owned by a landlord, also known as the freeholder.

You will own the property for the length of a lease agreement with the freeholder. After the lease expires, ownership of the property will revert back to the freeholder.

You’ll pay ground rent to the freeholder, although this usually won’t be very much. The freeholder will also be responsible for maintaining and running the building, so you can expect to pay a service charge to contribute to the cost of this.

 

 

Buying a freehold property

When you buy a freehold property, you’ll own the dwelling and the land it stands on outright.

There will be no time limit on your ownership, so you won’t have to worry about a lease running out.

You’ll be responsible for maintaining the building and any related costs, but this will mean you’ll be free to do whatever you like to the property (subject to planning permission).

 

Leasehold vs. freehold: a summary

Buying a home is an exciting step, but it is very important to understand any impending issues surrounding property ownership.

When it comes to leasehold vs. freehold, the main difference is that as a freeholder you’ll own your property outright from the get go, while as a leaseholder your ownership will be limited to a set length of time.

If you want to know more about buying a home, get in touch with our team today; we are more than happy to help!

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Landlords have been the target of some serious new taxes and regulations. Although these are worrying for some, these measurements are not an end of the rope for most.

For those of you considering investing in properties, keep in mind this:

long-term investments will surely bring you a good profit. New research showed that investing in buy-to-let, but not on an amateur level, will bring the landlord a stable and consistent source of revenue.

More details and a good case analysis in this article on Property Reporter:

How much could an average long term property investment earn you?

If you’re thinking about investing in a buy-to-let here are our property recommendations from the Victor Michael website:

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Unlike most other student based cities London is the exception in the fact that students are not locked into their contracts early. Take the University of Southampton for example, Southampton being the student-dominated city it is; the search for a property for the next academic year starts in November and most of the good properties go by February. This forces students and Fresher’s especially, to seek a property and housemates right as the start of the academic year, whilst Fresher’s are establishing who their friends are. Also, it forces students to pay full summer rent although they are not in the property during the break due to the high demand for properties.  But London being the bustling city it is this problem doesn’t occur.

Below are our 5 top tips for students at London universities seeking tenancies.

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  1. Do not rush to enquire.

Our policy, like most other agencies, is not to advertise properties until a month before the current tenancy is about to end. If you want to move in September, start enquiring in August. This ensures you do not waste your own time or the time of the agency. It also ensures that you aren’t made to pay rent over the summer unnecessarily if you are not staying in London during the holidays; this will save you untold amounts of money.

 

  1. Know your requirements.

How long do you want the property for? When are you looking to move? What is your preferred location? What is your maximum budget per calendar month? Are you willing to share facilities with other tenants? Make sure you know your requirements before you enquire so that the agent is best able to help you.

 

  1. Know what the agency requires.

For full time students, except those completing a PHD, agency and landlords require you to have a guarantor. A guarantor is someone, often a family member or loved one, who is willing to agree to pay your rent if you default payment and your rent becomes in arrears. Your guarantor can be international, though some countries are harder to reference.

 

  1. Be prompt with your referencing.

Referencing students for the property is a little more complicated as we have to verify your guarantor too. Make sure you promptly fill out your referencing forms, send over all necessary documentation and that of your Guarantors, especially if you have a holiday planned just before you move-in.

 

  1. What to know when you move-in. 

 

An inventory check-in is often mandatory on the day of your move-in. You are required to attend and the inventory clerk will go through and note any damages to the property left by the previous tenant, this is for your benefit so you are not unfairly charged at the end of your tenancy. We would advise you to take your own pictures as evidence and store this one a backed up memory drive.

 

Your Deposit. All landlords and estate agents are legally required to register your deposits 30 days after receiving it. Make sure you are provided with evidence of its registration. If your landlord fails to register your deposit he may be liable to pay you 3 times the deposit amount and is prohibited to issuing a section 21, an eviction notice.

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Renting will cut your monthly income by a almost a quarter. Taking that into consideration, it is only natural to choose wisely when it comes to places to rent. However, a recent study found that there are some common interests between London renters.

Major concerns and interests for renters:

-> saving money: discounts and offers that help saving money daily.

-> the rising cost of living.

-> saving money on transport costs.

Despite all the eagerness to save money, 74% of renters questioned would pay a higher rent if this means saving money on daily necessities (groceries, household bills, and transport).

For more insights, read the entire article on Property Reporter.

Where do you find yourself? A big spender or a cautious cost planner?

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Are you looking forward to investing more in your future home? Extra budget should mean you have to be more careful at the property you are prospecting.

We found a useful guide when searching for a luxury property on Property Division.

-> Location is key. Check out the neighborhoods’ houses!

-> Carefully analyze space layout, design and architecture.

-> Extra-large kitchen should equal luxury.

-> High-end finishes must be genuine!

What do people look for when buying a luxury home?

Check out our recommendations for a great luxury home! You’ll know they’re exactly what you are looking for!

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Saving up to buy your first home is a challenge that can at times, feel impossible. If you’re a future first time buyer looking for tips on saving for your first home, read some of our advice below:

Correct preparation

It’s important to think about what you need to do before you even start looking at properties, such as saving for a deposit. The general rule of thumb is to save at least 5-20% of the value of the property you want to buy.

So if you’re looking to purchase a home that costs £200,000, you’ll need to save at least £10,000 (5%). But saving more than that will grant you access to a larger range of more affordable mortgages.

But keep in mind that deposits and monthly mortgage payments won’t be your only outgoings, you’ll also need to invest in surveys, removal costs, building insurance, stamp duties, and solicitor fees.

It might go without saying, considering what we outlined above, but saving a little extra per month goes a long way in speeding up the process. Perhaps give up a gym membership and exercise at home, or skip your daily coffee; it’s not easy, but in the end it will certainly be worth it.

Taking care of your money also helps you build a better credit rating, which will open you up to a wider range of mortgages later down the line.

Explore your options

The government has several schemes that assist first time buyers onto the property ladder, including:

Shared Ownership – this is where you purchase a share of your property from the landlord (usually a housing association or the council) and rent the remaining share.

Help to Buy – this is where the government makes a 25% contribution to what you have saved. If you save money into a Help to Buy: ISA, for every £200 you save, you will receive a government bonus of £50. However keep in mind that this scheme is only applicable for New Build properties.

Rent to Buy – this is a government scheme which aims to ease the transition from renting to buying, providing subsidized rent for a certain number of years in rent to buy homes. After the time has passed, you have the option to buy the property, or enter a part rent/part buy shared ownership scheme.

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Are you thinking of adding some extra-luxury to your home? Are you just thinking because you do not have the budget to have high-end looks in your house?

Well, we think this could help:

Best of High End Looks

13 clever ways to fake high-end looks in your home.

Posted by Hometalk on Sunday, 8 April 2018

We are sure you can apply at least two of these ideas in your home. Maybe make the letting place look nicer before a viewing…

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You have probably heard that first impressions are vital but did you know that within 15 seconds a buyer has already developed an opinion of your property? This is why creating the right first impression is critical to achieving a successful sale.

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FROM YOUR DRIVEWAY…

Ensure the front garden looks its best – mowed lawns, weed-free flowerbeds and an uncluttered access to the front door. Make sure your house number or name is clearly visible from the road. Leave plenty of room for potential buyers to park.

A WARM WELCOME…

Be ready, turn the heating on and light fires in winter. Open curtains and turn on lights because people react favorably to brighter properties. Appeal to the senses with fragrant flowers, there are many ways to create an exciting interior with surprisingly little money.

FAMILY PETS…

Its preferable for your pets to remain outside during viewing. Where possible make sure your carpets and furniture are hair free.

THE CHEF’S PRIDE OF PLACE

Your kitchen can have a major impact on the sale of your house. It should be well organised with tidy cupboards and worktops. Make sure its is virtually spotless and smells fresh. And keep your tea towels in the drawer not over the hob.

SPACIOUS BATHROOMS

It’s imperative this room looks bright, clean and tidy. Dripping taps, discolored carpet, dirty tiles or evidence of a leaking shower unit should be addressed. Make sure the toilet seats stays down.

TIDY BEDROOMS

Clean and tidy bed linen gives the impression you care about the presentation of yourself and the property you live in. Remove any evidence of washing or ironing to allow your room to look larger and more spacious. Clear the toys and make the beds.

D.I.Y.

Don’t allow your property to let you down, ensure any loose tiles, missing handles or broken windows are mended or replaced. If you are unable to do the task simply ask us to recommend an expert. Bad D.I.Y stands out more than you think to a buyer.

PRESENTATION

The positioning of furniture in each room can give the impression of either clutter or space. If necessary, remove some furniture from your main rooms. living, dining, and master bedrooms to allow ease of viewing. Touching up paint and re-sealing wallpaper can improve the quality of presentation. First impressions are vital.

YOUR BUYER LOOKS INTERESTED?

Buying a new home is a big decision and expense. By understanding the buyer’s need to visualize themselves living in your home you can dramatically increase its sale-ability.

Let buyers look around at their own leisure.

Have all essential guarantees on hand and be prepared to answer any questions that arise.

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Buying a property for the first time can be a daunting process, but so long as you have the right knowledge and know the rules you have to follow, it’s a straightforward process. Below, we’ve consolidated the main things you need to prepare and consider, to make sure your home-buying journey goes as smoothly as possible.

1. Things to consider before the hunt begins

It’s definitely wise to find out how much mortgage lenders are willing to give to you before you start home hunting, so you know what price range you can be aiming for. Visit a few and they will give you a rough estimate, based on deposit size, income and other variables.

Explore a variety of different areas – not just with online research, such as crime rate, transport links and amenities, but by physically having a walk around local areas and getting a feel for them before you decide which works for you.

It’s also worth spending some time improving your credit report before you get to the home-hunting stage, as this will influence how much lenders are willing to give to you. Being on the electoral roll, having a credit card with safe spend amounts on it and steady, regular bill payments over the years will all improve your rating. The rating will also tell you what’s counting against you, so you can improve this before you get to buy your property.

2. Get your finances in order

Have you got all your finances in order? Costs you’ll need to consider are:

  • Deposit – this is usually 5% – 20% of the property price and the more you pay upfront, the better mortgage deal you can get.
  • Stamp duty – if you’re a first-time buyer, you will only pay stamp duty after the first £300,000 of your property on a property up to the value of £500,000.
  • Legal fees – ask friends or family for a trusted solicitor.
  • Service charges – if you’re moving into a leasehold development, make sure you can afford the annual service charges for maintenance of shared areas.
  • Survey cost – once you’ve picked a home and made an offer, you’ll pay for a survey to check there are no underlying issues you missed.
  • Removal costs – look into the level of removal help you need. If you have a lot of furniture and you need manpower, this can be quite expensive and something you haven’t accounted for in your budgeting.
  • Extras – it’s worth putting aside some funds for the cost of redecoration or furnishings you need immediately after moving into your new home.

3. Property particulars

Explore this blog of questions it’s important to ask when you’re viewing the property, but the most important one when you’re buying, is to ask how much lease is left on the property if it’s a leasehold. If it’s less than 75 years, you may struggle to get a mortgage. Other important questions to ask would be around the age of appliances, what work has been done on the property in recent years and what spaces are shared in a leasehold property and what the service charges are for these.

 

4. Mortgage time

You’ll need to get your paperwork in order next, so first stop is an approval in principle from your mortgage provider which lasts for 30 days. In this time, you must decide on a mortgage provider and can make an offer on a property.

When submitting paperwork for a mortgage, you’ll have to provide evidence of your income, and information about your outgoings, such as any debt, household bills and other costs, so that the mortgage provider can assess your situation and make sure you’re reliable before they agree to lend to you.

 

5. Offer, Exchange, Completion

Within a couple of days of submitting your claim for a mortgage, you will receive an offer which outlines the rules of your mortgage. You will then exchange paperwork with the home seller through your solicitor. Then, on the completion date you will officially take ownership of the property after you have made the payment to the seller.

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