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Homebuyers warned not to attempt their own conveyancing

Trying to save money by doing your own conveyancing is likely to land you in deep water, legal experts have suggested.

With house prices continuing to rise, buyers are increasingly looking for ways to minimise the financial outlay, including through so-called ‘DIY’ conveyancing.

Research reveals the average ‘upfront cost’ of purchasing a home in the UK exceeds £38,000 — this refers to the fees that a purchaser must pay for the sale to go through. Costs include stamp duty, deposit and valuation fee.

However, while the DIY route may help to save £300 to £600 — a fraction of overall purchase costs — it also opens buyers up to huge risks.

Caroline Murray, partner and head of the property department at Graysons Solicitors in Sheffield, said: “Although doing your own conveyancing is legal, and possible in theory, you can only act for yourself in very few situations — either a transfer of equity, a cash purchase (so no mortgage) or a sale with no existing mortgage to redeem. Even then, it can cause a number of problems.

All the paperwork involved requires a huge commitment of time and effort, not to mention a strong understanding of property law.

But perhaps the biggest obstacle is that individual homebuyers do not have negligence insurance — this is only available to qualified legal professionals — which means that if you make a mistake in the conveyancing process you’ll be personally liable and the cost would end up being considerably higher.”

In addition, a small number of mortgage lenders appoint their own solicitor to look after their interests before agreeing to lend money — a service which is charged to the buyers, meaning they will still be paying for conveyancing without any of the legal protection for themselves.

HM Land Registry also points out that ‘depending on the type of transaction, there can be quite a lot of legal and financial aspects that will need to be covered in the preparation of the documents. These may not be part of the standard forms’.

According to research from TotallyMoney, it is the unforeseen and hidden aspects of buying a home that ramp up the overall cost, rather than typical outlays such as deposits, estate agent and solicitors’ fees.

The study says that commissioning surveys, fixing cracks and replacing the boiler — among other potential costs — can represent up to 40% of the total upfront cost.

Caroline concluded: “There’s no doubt that purchasing a property is one of the biggest financial commitments people can make. But for that reason it’s not advisable to cut corners for the sake of attempting to save a relative fraction of the overall costs.

Alongside the risk of bearing full responsibility for any possible mistakes, such buyers also face the difficulty of liaising with the sellers’ solicitor without having a conveyancing licence or extensive knowledge and experience of property law. For this reason we strongly advise against DIY conveyancing, and advocate using the services of a reputable conveyancing solicitor.”

Original source: Property Reporter

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Atom announces its entry into Portfolio BTL market with new products

Digital Mortgages by Atom bank has announced new products for professional landlords confirming that they are entering the Buy to Let mortgage market.

According to the lender, the range will include 2 and 5-year tracker Portfolio Buy to Let remortgage products for landlords who have between 4 and 25 properties in their portfolio. Competitive interest rates will be offered with a 1% product fee and maximum loan term of 25 years.

Rates at launch include a 2-year base rate tracker, 75% LTV Remortgage at 3.70% (tracking at 2.95% above base rate); and a 5-year base rate tracker, 75% LTV Remortgage at 3.80% (tracking at 3.05% above base rate).

Selected brokers and their customers will also have access to no Early Repayment Charges and automated valuations will be used wherever possible to speed up the process and keep costs low.

Maria Harris, Director of Intermediary Lending at Atom bank said: “We are delighted to announce our launch into the portfolio buy to let market. As our mortgage proposition grows, we want to transform this market, making mortgages easy and transparent to buy and offering landlords a great all-round deal.

The initial pilot with a select number of intermediaries will help us make real time improvements before we roll-out to a wider audience. We’re also already working on extending the range to include fixed rate products.“

Original source: Property Reporter

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New report shows where the cheapest streets are in Britain?

With properties at only £15k, there are certainly some bargains still to be found in the UK. But where are they?

Due to fluctuations in the property market during the past couple of years it can be hard to know which property locations are within your price range.

MoneySuperMarket has created an interactive tool to reveal and virtually explore the cheapest locations to buy a property across the UK.

The cheapest streets in London

The UK’s capital is perhaps unsurprisingly home to the most expensive streets, with prices significantly higher than anywhere else in the country. The most expensive is Grafton Street in Westminster at £69,189,235, which is 30,788 per cent more than the national median of £224,000.

Cheapest locations in London Cheapest street Average property price in London % difference
1.     Railway Approach, Harrow, Greater London £103,500 £624,072 -83
2.     Abbey Close, Hayes, Hillingdon, Greater London £103,954 £624,072 -83
3.     Armada Way, London, Newham, Greater London £114,743 £624,072 -82
4.     Aitken Close, Ruislip, Hillingdon, Greater London £120,000 £624,072 -81
5.     Arthur Street, Erith, Bexley, Greater London £125,775 £624,072 -80

The most affordable UK streets

For those looking to get out of the capital, County Durham has 10 of the top 20 most affordable streets in the country. However, the cheapest overall options are in Sunderland, Liverpool, or Lancashire:

Cheapest locations in the UK Cheapest street Average property price per region % difference
1.     Davison Terrace, Sunderland, Sunderland, Tyne And Wear £15,000 £158,858 -91
2.     Imrie Street, Liverpool, Liverpool, Merseyside £15,000 £157,828 -88
3.     Hurtley Street, Burnley, Burnley, Lancashire £15,500 £165,923 -91
4.     Kingsland Grove, Burnley, Burnley, Lancashire £16,000 £165,923 -90
5.     Thornley Road, Durham, County Durham £17,000 £123,826 -86

Sally Francis-Miles, money spokesperson at MoneySuperMarket, commented: “Getting on the property ladder is an aspiration for many, but can seem like a pipe dream when you factor in how much you need to do it, especially in the UK’s most expensive areas.

The property market has fluctuated in recent years, with escalating prices in some areas and decreases in others. Research also suggests that fewer people are taking out a mortgage, possibly driven by the potential impact of Brexit on prices. However, whether you’re buying your first property or making an investment, the starting point is always reviewing all the potential costs, in addition to what you have saved, before looking at what you can afford to borrow.

Then you can look at areas and types of property you can afford. Choosing a mortgage in itself can be daunting, but there are many tools to help you select the right option for you, whether that’s a fixed deal for two to five years giving you certainty of payments, or a tracker that rises and falls in line with the Bank of England base rate.”

Original source: Property Reporter

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Leeds Building Society announce launch of new sub-1% mortgages

Leeds Building Society has announced that it has added a number of discounted variable rate mortgage products to its residential range starting from 0.99%.

According to the lender, the two-year discount products are available at 0.99% up to 65% LTV with a £1,999 fee and 1.47% fee-free, and from 1.79% at 85% LTV with no fee.

After the end of the two year term, each has a 1% discount for a further three years.

Matt Bartle, Leeds Building Society’s head of product and pricing, had this to say: “We’ve added a new tier of two year products to our discount mortgage range to offer borrowers more choice. Fixed rate remains the most popular type of mortgage by some margin, both among our customers and in the UK generally, but there’s a trade-off. The interest rate and monthly repayments may be a little higher than if the borrower had chosen a variable rate but they have the security of fixed repayments which can help them to budget.

However, borrowers who aren’t expecting rate increases in the near future could choose a variable rate product with lower repayments, which is why we’re introducing these shorter-term discount mortgages.While we’re now in a rising rate environment, the indication from the Bank of England is that Base Rate increases will continue to be small and gradual, in recognition that rates have been at historically low levels for the past decade.

We’ve included some fee-free products which are likely to appeal to homeowners seeking to minimise the costs of remortgaging to a new deal while rates remain low.”

Original source: Property Reporter

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Self-builders and home renovators remain unfazed by Brexit uncertainty

For Britain’s growing army of self-builders and home renovators, adopting a ‘Keep Calm and Carry On’ mindset is proving to be a hit.

As a result, industry sectors including doors and windows; drainage; roofing and cladding; security; lighting; plumbing and heating; kitchens, bedrooms and bathrooms; planning permission; renewable technologies; energy efficiency, and home insurance can expect to reap the benefits of this buoyant and burgeoning market.

According to a recent survey of around 2,400 homeowners, carried out by the market-leading Homebuilding & Renovating Shows, 86% said they are continuing with their project.

78% of respondents said that there would be no change in their level of project spend. Additionally, there was no indication that homeowners had changed their minds on product choice or scale of project.

The majority of survey respondents from the recent London Homebuilding & Renovating Show at ExCeL stated that they remained determined to continue with their projects including self-build/custom build, first time conversions, single and two-storey extensions, remodelling rooms and layouts, and creating new kitchens. This means the shows continue to remain relevant to these committed, serious visitors who conduct research, seek advice and generate resources at the events, providing a valuable data source for exhibitors in the light of GDPR.

Jason Orme, property expert for The Homebuilding & Renovating Show, said: “Self-builders and home renovators are stoic by their nature, spending £10,000s and even £100,000s creating their dream homes, often for the first time.

The economic and socio-political outlook is impossible to control or predict, but life for those looking to take control of their living spaces carries on regardless. We will always need to build and renovate our homes, as existing stock deteriorates and our needs change. People are not going to pass on that once-in-a-lifetime dream building plot because of a political issue the outcome of which they cannot predict.

They have jobs, and they earn money, and house prices remain stable in almost all areas – that’s what affects building activity for individual homeowners looking to commit to a life-changing project. The Homebuilding & Renovating Shows remain the events where these serious, committed and engaged consumers research and engage with those trades that can help them achieve their goals.”

When it comes to confidence in house prices, almost three quarters of respondents expect values to stay the same or increase, with one in 20 of the respondents claiming that Brexit has inspired them to spend more on their upcoming project.

Nick Noble, head of events for Future Home Interest, says: “We certainly wouldn’t have been surprised if our audience were following the rest of the economy in exercising caution when committing to major spending decisions.

However, this survey goes to show what we had always suspected – that this group of people, already going out of the mainstream to create these amazing homes and extension projects, are incredibly determined and serious about making a start on the new life their home will give them. As a result, trade exhibitors at our shows can be confident that they are being exposed to committed consumers, who attend our events with very specific objectives in mind.”

Original source: Property Reporter http://www.propertyreporter.co.uk/property/self-builders-and-home-renovators-remain-unfazed-by-brexit-uncertainty.html

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What is stopping more homes in the UK from going green?

According to a new survey and research by AXA, just 2% said they don’t believe homes contribute to our carbon footprint, while 13% said the amount is negligible.

Out of the 3,000 people surveyed, the figures revealed that 18-24 year olds are almost two thirds more likely to ignore advice on how to make homes eco-friendly compared to over 55’s.

Over the years, both the government and environmental groups have promoted eco-friendly ideas such as washing clothes at 30 degrees and making the switch to energy saving lightbulbs. However, AXA’s research has shown that factors such as age, location, work situation and the number of people living with you can play a huge part in how eco-friendly you are.

Younger doesn’t mean greener

Despite millennials’ reputation for being eco-conscious, it’s the older generations that are more eco-savvy. In fact, 18-24 year old’s are two thirds more likely to ignore advice on how to make homes eco-friendly compared to over 55’s.

What’s more, 18-24 year old’s are 15% less likely to worry about how much power they are using at home compared to those over 55. Only 32% of 18-24 year old’s are aware of the recycling rules in their area compared to 68% of over 55’s.

Location, location, location: the UK’s greenest cities

Where you live can also play a part in how eco-friendly you are. For example, residents in Birmingham (84%), Newcastle (82%) and Norwich (82%) are the most likely to wash their clothes at 30 degrees, while those in Portsmouth (72%), Liverpool (71%) and Brighton & Hove (68%) are the least likely.
Residents of Chelmsford and Cardiff are particularly eco-friendly, with Chelmsford residents the most likely to turn the heating down (96%), hang-dry clothes (95%) and turn off the lights when they leave a room (95%). Meanwhile, those living in Cardiff are most likely to use their food waste bins (84%), walk short journeys instead of using their cars (85%) and avoid using non-recyclable materials (79%).

Entrepreneurs are eco-savvier

AXA’s research also shows the self-employed are advocates for putting measures in place to protect the environment. For example, 47% of self-employed people think turn the heating down when it’s not needed is important, compared to just 30% of people who work full time.
The self-employed are also more likely to see the benefits of walking or using public transport than their full-time counterparts. Forty-two per cent said that walking a short distance instead of using a car is a good way to save the environment, compared to just 29% of those who work full time and 31% of people who work part time (8 – 29 hours per week).

Smaller households are greener households

Finally, the size of your household may affect how eco-friendly you are. For example, those living with four people are twice as likely to be confused by advice on how to be more eco-friendly in the home than those that live alone.

Homes with four people living in them are also a quarter more likely to say they find waste disposal rules (e.g. how to dispose of recycling, food waste, general waste, refuse centres etc.) confusing compared to those living alone. What’s more, those living alone are 20% more likely to install eco-friendly materials in their homes if they were made more affordable compared to those living with four people.

Gareth Howell, Executive Managing Director, AXA Insurance, said: “Despite the considerable amount of information publically available on how to be environmentally friendly at home, some people are still more willing – or able – than others to put these measures in place. Factors such as location, age, working situation or household size can hamper even the best intentions, and we need to understand this so we can become more eco-friendly.

Hopefully, this research will make people realise that even small things, such as turning the heating down or installing insulation into their homes, can make a huge difference.”

Original source: Property Reporter