Dreaming about moving into your new home only to discover you have noisy neighbours, non-stop traffic whizzing past, or next-to-no wi-fi signal? Here’s how to do your research… Whether you are looking for a new home to buy or rent, you’ll want to be sure that it’s a relaxing and enjoyable place to live. But what if you move in only to discover that you’re living next to the neighbours from hell? Or the incessant noise from the road drives you crazy? Or that there’s planning permission for an industrial project right on your doorstep? Here we look at the information that a seller or landlord is legally required to give you – as well as the stuff that it is ‘good manners’ for them to pass on to you. So firstly lets look at Sellers are legally required to declare certain information If you are buying your new home, the seller is required to disclose certain pieces of information to you – and if they fail to do so, they could end up in court. For example, a seller must tell you about a ‘defective title’ if there is no way you could reasonably find out before exchanging contracts. This might, for example, include a right of way across the property that isn’t on the title deeds. What about the Seller’s Property Information Form? Sellers are also required to fill in a Property Information Form (or TA6) which gives the buyer lots of information that they would otherwise be unable to find out through surveys or the standard searches. This includes:       Information on boundaries – including those between you and your neighbours       Details of any disputes or complaints with neighbours       Notices of development or planning permission of properties nearby       Alterations and building work ever done on the property (including details of planning permissions and building regulations approvals – or the absence of)       Information about guarantees and warranties       Buildings insurance details       Information about environmental matters, such as flooding, energy efficiency and Japanese Knotweed.       Details of rights and informal arrangements, such as access or shared use.       Information about parking – including whether the property is in a controlled parking zone or local authority parking scheme. This form is part of the pre-contract documents, so it’s legally binding. This means that you, as the buyer, can make a claim for compensation if the seller deliberately tries to conceal something – even after the sale has gone through. Other information may be provided by the seller As part of the conveyancing process, the seller’s solicitor should provide certain additional information to your solicitor. This includes details such as where the gas and electricity meters and stopcock are located, and what fixtures and fittings will be left as part of the sale. However, there is certain information the seller’s solicitor is unlikely to provide, such as the strength of the phone signal and what day the bins are emptied. On these matters, the key is to collect the information yourself and don’t be afraid to ask those questions while you can. Landlords also have some legal obligations If you are renting, there are certain legal obligations on the landlord that can’t be ignored. This includes the safety of the electricity and gas supplies, fire safety throughout the property, protection of deposit funds, and the landlord’s responsibilities for maintenance and repair. In addition, there are certain issues which fall under the ‘Consumer Protection Regulations’. These include:       Planning activity       Off-road parking       What furniture and other...

Ask the Estate Agent

What information must a seller legally declare?

Making sure to ask estate agents the right questions before signing up to their services is vital when you’re selling your home. It will mean you’ll avoid any nasty surprises, such as unexpected fees or lengthy tie-in periods, and give you confidence that you’ll be able to sell as quickly as possible and for the best possible price. So here are the questions that every home seller should ask the estate agent: What are your fees? Typically, you’ll find estate agents charge a percentage of the sale price and they should state these inclusive of VAT and provide an example breakdown of the fee. For example, if you sell a property for £300,000, the fee may be 1% plus VAT, amounting to £3,600 (1.2%), including VAT. But you may find that percentage fees are far greater than this, depending on the agent, and can be as much or more than 2.5%. Check this is the only fee payable to the agent and that you won’t face paying this unless they successfully sell the property for you. What about other costs?  Will you pay for a ‘For Sale’ board, for example, or professional photographs and floorplans? Find out any extras and any costs associated. Remember that you’ll need an Energy Performance Certificate (EPC) before putting your house on the market and these are normally charged at around £60 – £120 pounds but check for your area and property size with your agent or local EPC surveyor as you can easily have these done yourself by a local EPC registered surveyor. What kind of contract do you use? Estate agents offer several different types of contract and it’s important to be aware of which you’re signing up to. Sole selling rights  This is a fairly rigid form of contract, meaning that the particular estate agent you’re signing up to is the only one allowed to sell your home during the contract period. Even if you find your own buyer, you’ll have to pay the agency fees. Sole agency  If you find your own buyer, you don’t fork out anything to the agent. But if you decide this agent is not working out and turn to another who then sells the property in the contract period, you are still tied into paying the first agent. Multiple agency  These contracts allow you to market the property with several agents, but typically demand a higher fee. This was traditionally as a result of you having more exposure to potential buyers. Now with most buyers using a website such as Zoopla, the higher fee reflects the risk that Agent B might sell the property, so Agent A’s marketing goes unrewarded. What’s your tie-in period? An agent’s contract will often include a tie-in period, depending on the type of agreement you’re entering into. Typically, this spans around 12 weeks, with a 14-day notice period. If another agent sells the house during this time, you’ll have to stump up fees to two sets of agents. Tie-in periods can vary dramatically between agents, from zero weeks to 20, in some cases.  How will you market my property? The most important thing is that the Estate Agent takes the time to listen to what you are looking to achieve and then discuss a marketing strategy that will achieve that goal. You also want to make sure the estate agent’s descriptions are honest and help point out the great features of the properties they are selling. The photographs are even more important. Prospective buyers are drawn in visually, so having high quality pictures is a must. Ask to see specific examples, or search online yourself for a better idea. For those reducing numbers not searching online, check how the...

What questions should I ask an estate agent when selling my home?

No matter what we buy, we all want to find the best price and clearly when buying a property this is one of the most important factors. Buying a home is the most expensive purchase you will ever make in your life, not to mention the most important, so it is essential that you find the best value for money deal. Given that there are two (at least) parties involved in a property deal, the buyer and seller, there is an opportunity to negotiate and arrange for a better deal. The seller is also likely to want to negotiate and obtain the best deal for themselves, but there are ways in which you can strengthen your negotiation position as a buyer. Research the market One of the strongest tools you have at your disposal when it comes to negotiating the best price is market knowledge and data. You need to make an informed offer, and this means you need to review the market and ensure that you are offering a suitable bid for the property. If you bid below the expected value, your offer will be dismissed quickly If you bid more than the expected value, your offer may be accepted quickly but you will pay over the odds If you bid at the expected level, you will remain in the running, but the seller may not be in any great rush to accept your offer. The more you know about the market, the better placed you will be to make an attractive offer, and this can stand you out from any other interested parties. Know what the average is – not just price but condition When it comes to researching the market, don’t just find out average property prices and values and stop there. You need to know what the average type of property is like in a local area. i.e specification, age, general condition. Once you know what the average property is like and why the average price has been comprised, you can make an informed judgement on how the property you are interested in compares to the average property. Does it deserve a premium for instance because its been renovated or extended. Ensure that you are in a stable financial place Before you make an offer for a home, make sure that you are in a position to do so. Some interested parties will make an offer more out of hope than expectation. Therefore, arrange for pre-approval on a mortgage and make sure that your finances are robust enough to allow you to make the best possible offer. When you are confident that your finances are stable, you enter negotiations with greater confidence and more leverage. A position of confidence will appeal to property owners, which can only be of benefit to you, if you’re looking to negotiate the best price. Make sure that you are ready to move If you can show that you are ready to move quickly, you will strengthen your negotiating position. Many prospective buyers have caveats attached to their offer or there may be potential delays attached to the deal. If you have sold your home, you don’t own a home, or you are in a position where you can move home without too much notice, a seller is more likely to take your bid seriously. Appoint a solicitor Being able to move quickly is a very appealing trait to have when buying property. You can show that you are serious about the deal and that you are keen to process the offer by having professional assistance lined up. When you appoint a solicitor, you indicate you are ready to progress the deal and for a vendor looking to sell, this is a highly attractive feature that will stand you out from other interested parties. Are there aspects of your offer that you can use to leverage a better deal? It may be that aspects other than the price you bid for a...

How to negotiate the best price when buying a property

An accepted offer on a home is cause for celebration. But, in many cases, the journey to completion can be longer than you bargained for. Watch out for these 5 most common delays. 1. Management companies being slow in returning information on leasehold properties If you’re buying a leasehold property (many flats and apartments and even some houses are leasehold), the transaction may be more complicated than buying a freehold property. This is because you are effectively leasing the property from the freeholder for a specific period, rather than owning it. With this type of purchase, your solicitor will need to obtain information from the freeholder/ and or management company. This includes costs (such as ground rent and monthly service charges), proof of buildings insurance and previous years’ accounts. There could also be additional checks that need to be carried out. What can you do?: Make it clear to your solicitor from the outset that you are buying a leasehold home. Give the freeholder or management company prior warning it will need to provide this information. 2. Buyers failing to disclose their mortgage deposit has been gifted Whether it’s 5%, 50% or any other amount, a mortgage lender will want to know where your deposit is coming from. If all, or even part of it, is a gift – from your parents, say – your solicitor must declare this to the bank or building society. And this means you need to declare it to your solicitor. Most lenders will require a signature from the source of the deposit, confirming the money does not need to be repaid. What can you do? Make sure you give your solicitor clear and accurate information about your deposit at the very start of the conveyancing process. Warn the gifting party they’ll need to sign a letter and potentially provide ID.  3. Delays from third parties in providing answers to outstanding enquiries Your solicitor will go through all the paperwork from the sellers, and raise a number of queries with their solicitor. These could be anything from how to resolve a problem exposed by the survey to a discrepancy on the property deeds. Hold-ups can occur if the third parties required to provide this information are operating on different time-scales. And, even if they are moving fast, particularly complex issues can take weeks to resolve. What can you do?: Keep in regular contact with your solicitor and be patient – they are required to follow a code of conduct and getting these checks done thoroughly is crucial. 4. Local authorities dragging their feet in returning searches Local authority searches are carried out to uncover potential issues that could affect the home you are purchasing, such as nearby planned development or tree preservation orders. Separate Environmental and Water searches, which flag problems like risk of flooding, will also be carried out. Some local authorities will return these searches within a few days, but others could take several weeks. What can you do?: Lodge funds for the searches with your solicitor straight away and request they are carried out as early as possible to reduce risk of delays. 5. Slow or under-resourced solicitors  Even if you have an efficient and dedicated solicitor working on your property purchase, this is unlikely to be the case for every other party in the chain. They can often be busy with other transactions or, especially during the summer or Christmas holidays, could simply be under-staffed. This can cause hold-ups which can significantly slow down the time it takes to completion. The fact is, you can only ever move as quickly as the slowest party in the chain....

Top 5 causes of delay in the conveyancing process

If you are named as an executor in someone’s will, you have a lot of duties and responsibilities placed upon you. It will fall to you to gather in and value the assets of the estate, pay off any debts and liabilities, calculate and pay any inheritance tax (IHT) that is due – and distribute the estate in accordance with the will. In addition, unless the beneficiaries named in the will wish to have the deceased’s property transferred into their names, you as the executor will need to sell it. Selling property as an executor is slightly different from the usual process, so how should you go about it to ensure things run as smoothly as possible? 1. Obtain a Grant of Probate If the deceased owned property in the sole name, when selling property as an executor, you will need to get what is known as a ‘Grant of Probate’. This is a legal document issued by the court which confirms the validity of the will and names the executor who has the legal authority to deal with the deceased’s assets. This includes the legal authority to enter into and sign contracts on behalf of the estate, such as the contract to sell a house. As an executor, you need to be aware that obtaining a Grant of Probate can take potentially 12 weeks or more, so bear this in mind when looking to sell a property. 2. Get the property valued  As part of the process of applying for the Grant of Probate, you will need to get a valuation for the deceased’s property – or properties. This should reflect the value of the property at the date the owner died, rather than the actual selling price. You can do this via a surveyor, or via an estate agent. 3. Check the title and deeds At this stage, you should also check the property’s title. You should be able to do this with the Land Registry. You should then get a solicitor to check the title entries to see if there are any restrictions affecting the property – or defects in the title – which may need addressing before the property can be sold. For example, there could be an outstanding mortgage you were not initially aware of even someone else owning a share in the property.  4. Can the executor sell property without all beneficiaries approving? Unless the will states something to the contrary, there are no special provisions made for the beneficiaries to sign-off on a property sale. However, it is always advisable to have open and clear communication from the outset, and a written agreement if necessary. If the home is sold for less than a reasonable market value then disgruntled beneficiaries do have the option to sue to executor, adding additional stress to an already tricky situation. 5. What are your options for selling property as an executor? Put it on the market with a traditional estate agent When you get the property valued as part of the applying for Grant of Probate, you can talk to the estate agent about putting the property on the market. Pros You should be able to get a fair price for the property, and especially if you’re not in a hurry to sell. Cons You will have to deal with the property-selling process, including the to-ing and fro-ing between solicitors and estate agents, yourself. This can be stressful and time-consuming. Use a quick house sale company In recent years, there’s been an influx of so-called ‘quick house sale’ companies which claim to sell your home fast. They do this by buying the property directly or finding a third party buyer very quickly. Pros – The property being sold

A guide to selling a property as an executor

Once you’ve decided to sell your home, choosing the right estate agent to help you is a top priority. But one of the big choices you need to make is whether to opt for sole agency, where one firm has the exclusive right to market your home for a fixed period, or multi agency, where you get more than one firm to help you sell. The choice you make will affect the amount you pay in fees and could also potentially have an impact on the amount you receive for your home. Sole agency is the most common type of estate agent contract, and most people start with this arrangement, but here we take a look at the pros and cons of both… Sole agency What does it mean? Just one agent acts for you for a certain period. They receive all the commission on a sale, but if the property hasn’t sold at the end of this period, you’re free to use other estate agents. Pros The charge is usually between 1.5% and 2%, which is cheaper than multi agency. Agents will agree to lower commission with sole agency, as there is a higher chance they will make the sale. If you find a buyer yourself privately, there is no commission to pay unless you have agreed sole selling rights with the agent. It’s an increasingly rare arrangement, but if this is the case, you must pay commission regardless of who finds the buyer. Cons Historically you’d receive less exposure than you would with more than one agency. However, with most buyers using sites like Zoopla, this is now less of an issue. You may end up with lower offers than you would with multiple agents. You will sign up to a ‘lock-in’ period, usually 12 weeks, meaning it will be hard to switch agents if you’re unhappy. If you do sell through another agent while still under contract, you could find yourself having to pay commission not only to the agent who sold the property, but also to the original sole agent. Multi agency What does it mean? You can instruct as many agents as you like. They will all act for you at the same time and the one who finds the buyer earns the commission. Pros More agents pushing your property historically used to mean more exposure, but thanks to buyers predominantly using sites such as Rightmove and Zoopla, this is less pronounced. You may receive higher offers. As agents will be competing against each other, this can speed up a sale.  Cons The fee may be closer to 3%. All agents will be competing against each other, potentially making the process quite chaotic. An inherent risk agents may try and get you to accept a lower offer so they secure the commission. As several agents will have keys to your home, the viewing process could be more disruptive. If buyers see multiple listings for your home with different agents they may be put off. Top tips Most people start with sole agency and only move to multiple agents if their property doesn’t sell quickly. While the normal lock-in period with a sole agent is 12 weeks, shorter periods of six to eight weeks can often be negotiated. Multi agency may be the better option if the importance of a fast sale outweighs increased commission. Joint agency is another option. This is where you instruct two agents, who will come to an agreement over commission. ie. It may be shared irrespective of who finds the buyer. It’s a more common option for selling overseas property when you want to appoint a specialist national agent as well as a generalist local agent. The fee for joint agency tends to be around 2%. So that concludes this episode of Ask the Estate Agent...

What is the difference between sole agency and multi agency?

While investing to go green can work, it may not be possible for everyone immediately. However, there are some habits you can change that will add up to saving both time and energy. Here are the top 11. 1. Switch off the lights One of the most obvious ways to cut your electricity bill is to switch off the lights as you leave a room. The Energy Saving Trust (EST) estimates you can save £15 a year with this one small action, so why not make it a habit? Estimated saving: £15 2. Cover floors and plug gaps Lack of insulation will only maintain cold temperatures, leading to a corresponding surge in heating bills. If you don’t have fitted carpets, use thick rugs on wooden floors to lock in warmth. While you’re at it, draught-proof your home with old towels under the doors and some sealant or tape on windows and skirting boards. The result will be a discount of around £85 on your energy bills. Estimated saving: £85 3. Nudge down your thermostat Turning down your thermostat by just a single degree can save up to £90 on your annual energy bill, according to the Energy Saving Trust. You’ll hardly notice the difference and it’s all money back in your wallet. Estimated saving: £90 4. Avoid using standby mode   When your household appliances aren’t in use, most automatically revert to standby, but this quietly drains energy. You can turn most electrical appliances off directly at the mains, saving yourself around £30 a year in the process. (Note however that digital TV or satellite recorders may need to be kept in standby to properly function.) Estimated saving: £30 5. Time your shower There’s nothing like a long, hot shower in winter. But, do you know how long you actually spend in there? Many of us even let the shower run for a minute or two before we hop under it. Cutting down your shower running time by just one minute will shave an easy £10 off your annual energy bill. And you can save a further £20 just by swapping one bath a week with a shower. Estimated saving: £30 6. Don’t leave the tap running when washing up Washing the dishes can be costly if you leave hot water running. So get into the habit of filling up the sink with hot suds instead. And if you have a dishwasher, don’t press go until it’s full. Estimated saving £15 7. Fill the kettle with what you need How many times a day do you fill up your kettle for tea? And do you fill it all the way every time? It’s estimated that three-quarters of all British households are in the habit of overfilling the kettle. By heating up just the right amount of water you need, you could knock another £7 off your annual energy bill. Estimated saving: £7 8. Switch to a cheaper energy supplier Your current energy provider may not be the cheapest, which means it could pay to switch. It’s important to do your research first, though. Read the fine print on your existing contract to find out if there’s a cancellation penalty. When you are free to leave, use a comparison service to find the best deal for your circumstances. Estimated saving: £403 9. Slide silver foil behind your radiator Putting silver foil down the back of radiators reflects heat back into the room and prevents its escape through the walls. Get the best fit by wrapping foil around pieces of cardboard and simply sliding it behind the radiator. (Note you won’t need to turn this trick if you already have cavity wall insulation.) Estimated saving: £15 10. Leave your oven door open after...

Free ways to cut the cost of your energy bills

Buying a home can be a stressful experience – but it doesn’t have to be. Here are a few handy tips to make it as smooth-sailing as possible. You need to jump through a few hoops when buying a home and even if both you and the seller are keen to exchange contracts promptly, there can be delays. So here are eight top tips for a smooth property transaction. 1. Understand the jargon First of all, get to know the lingo. Arrangement fee? Standard Variable Rate? Mortgage Indemnity Guarantee? There’s a fair share of industry terminology involved when it comes to buying a home, so make sure you understand the key terms before you kickstart your property search. Utilise google and search any terms you come across and aren’t sure about. 2. Consider selling before buying If you’re already a homeowner, think about selling your property before you start looking for a new one. It is easier to buy a home chain-free, but you need to consider where you will live – and storage costs – in the interim. If you’re eyeing a new-build home, then a part exchange scheme may be the answer. It allows you to effectively trade in your existing home as part-payment for a new one purchased from a developer or house builder. This can make the whole process a lot easier and simplier dealing with the developer directly for both your purchase and sale providing the part exchange deal they offer works for you. 3. Get organised Get your ducks in a row. Speak to a mortgage advisor to confirm your budget and get an agreement in principle. Then work out what you can and can’t afford before you arrange any property viewings. Also, have all the relevant paperwork ready before you formally apply for a mortgage. Requirements will vary between lenders but they typically include proof of your income and outgoings as well as proof of your identity and address. Remember that a formal mortgage offer has a shelf life and if you fail to complete the purchase before it expires, you’ll have to start the process again. This is typically between 3-6 months so check this with your chosen lender. 4. Ask the seller to take the property off the market Found your dream home? Make sure one of the conditions of your offer is that the property is taken off the market. It will help prevent another buyer from making an offer the seller can’t refuse. 5. Pick professionals Work with people you trust. You will rely on a raft of different firms, or individuals, during the home buying process. They will typically include a surveyor, solicitor, and removals company. Ask friends and family for recommendations and hire carefully. Listen back to Podcast episode 13 where we discuss in more detail who you should have in what we call your property power team and how to select these professionals. 6. Respond promptly Be ready to review, fill out, sign and return all documents quickly and efficiently. Your solicitor will no doubt send through a lot of information about your property, including local authority searches. There’s no need to rush things. But sitting on the paperwork will only hold up the process. 7. Communication is king Stay in regular contact with both your solicitor and the estate agent to ensure that you are up to speed with the purchase and that it’s on track. It’s a good idea to agree a weekly update between all parties to cut the chances of miscommunication. 8. Be realistic Finally, set a realistic target for exchanging contracts so that everyone in the process has the same deadline to work towards. You can always amend the timescale between exchange and completion if you and/or the seller need to delay moving. So that concludes this

How to keep your property purchase on track

Think you’ve found the solicitor to get you through the trials of the homebuying process? Here are some simple and quick checks you can make before committing. 1. Who exactly will be handling your case? Clarify who’ll be put in charge of your case. And ask whether you will be dealing with just that ‘case-handler’ – or a team of people. If you are assigned just one solicitor, find out what happens if they are sick or on holiday. 2. Does the solicitor pick up the phone? There’s nothing more frustrating than every phone call you make going straight to voicemail, so consider doing a ‘mystery shop’ to ensure your solicitor is on the end of the phone – or at least returns your call within a reasonable timeframe. 3. Do they reply to emails? Ask your conveyancer to provide a rough – but realistic – idea of how quickly they’re able to respond to emails on a typical day. 4. Where are they based? While many aspects of the conveyancing process can now be carried out remotely, it can still be useful for your solicitor’s offices to be local – for example if you need to hand-deliver photo ID or crucial last-minute documents. 5. Can you get hold of them outside of office hours? Find out if your solicitor can be contacted in the evening or at weekends. It might not be necessary but it’s good to manage expectations. 6. What is it likely to cost? Conveyancing is no different to any other service. And, as a paying customer, you have a right to see a full breakdown of the cost – including any VAT. It will only be an estimate but a line in the sand is infinitely better than nothing. 7. What exactly will they will do? You may be totally new to the conveyancing process, or have simply just forgotten from last time, so don’t be afraid of asking questions. It’s imperative you understand exactly what your solicitor will – and won’t – do for their quoted fee. 8. Can they meet your timeline? Ask upfront the estimated length of conveyancing time for the purchase (on the proviso it runs smoothly) – especially if you have a deadline goal in mind, such as Christmas. 9. Do they have the right expertise? Especially if you have an unusual or more complicated house purchase, check the solicitor has the relevant experience to manage your case. So that concludes this episode of Ask the Estate Agent Podcast. You can contact us anytime using the links below: Facebook: www.facebook.com/asktheestateagent Instagram: www.instagram.com/asktheestateagent Twitter: www.twitter.com/asktheEA Website: www.asktheestateagent.co.uk So don’t forget to contact us with any subjects you would like us to cover or questions you would like answering in the coming episodes and until next time I would like to thank you for listening and goodbye for now. This podcast is brought to you by Liberty Gate www.libertygate.co.uk Nottingham’s multi award winning Estate Agency Source: Zoopla

9 points to consider when picking a Solicitor

If you’re buying a home, you’ll want a survey to ensure its bricks and mortar are sturdy and not concealing any nasty defects – but which type should you go for? Buying a new home is a major financial commitment – probably the biggest you’ll ever make. But how can you determine exactly what it is you are paying for? The answer is by commissioning a home buyers survey, also known as a property survey. What is a property survey? In simple terms, a home buyers survey is a health check on a property. And if it reveals any problems, it puts you in a position to ask the seller to fix them before you proceed with the purchase. Alternatively, you may choose to renegotiate the final sale price to account for the cost of fixing them yourself – or you may opt to pull out entirely. Do I need to get a home buyers survey? It’s not a legal requirement to have a home buyers survey on a property you are buying. And, at a time when your bank account feels like a bucket with a hole in the bottom, it may seem like an unnecessary expense. However, a home buyers survey could actually save you money – not to mention a lot of stress – in the long run. It’s a good idea to have a home buyers survey on most types of property, but it’s especially important if you’re looking to buy a home that’s unusual in structure, has a thatched roof or timber frame, is listed, or just very old. You probably won’t need a home buyers survey if you are buying a new-build home, which typically comes with a 10-year NHBC guarantee. However, you may still want to get a snagging survey done, which checks the property for defects and poor finishings such as wonky guttering and bad paintwork. Important note! If you are getting a mortgage to buy your home, the lender will carry out a valuation of the property. But this is not a home buyers survey and shouldn’t be treated as one. The sole purpose of the mortgage valuation is to demonstrate to the lender that the property is worth the sale price before it gives you the green light for the mortgage. Who does the home buyers survey? It’s important to use a surveyor who is a member of a recognised governing body, such as RICS or RPSA, to carry out your home buyers survey. Bear in mind that home buyers survey quotes vary between surveyors as well as properties, so it’s best to source a number of different ones first. What types of property survey are there? Professional industry body, RICS offers three types of home buyers survey, which vary in depth of inspection. The CONDITION REPORT What is it? A Condition Report is the most basic survey and usually therefore the cheapest. It will typically take around one to two hours to complete, and a day to return. What will the property survey do? Check the basic condition of the building, services – such as gas and water supply – garage and any other outbuildings. It uses a simple traffic light system which will flag any problems that require attention Provide a summary of issues and risks for your solicitor or property lawyer to look in to. For example, bad electrics, ownership of boundaries and planning permission for extensions or other building work. How much does it cost? Fees are normally based on the purchase price, and start from £300. When should I get one? A Condition Report is suitable for newer properties and homes that are in a general good state of repair. Get one if you will be happy with just a broad-brush overview of the property’s condition. The HOMEBUYER...

What survey do I need for my new home?

Buying and selling homes in Scotland is slightly different to England and Wales. Here are the main differences and how they work in practice. 1. Gazumping is almost unheard of In Scotland, once a seller has agreed an offer price on a property, it is taken off the market. In fact, solicitors in Scotland must decline to act for the seller if they later accept an offer from another party – that is, unless the original offer has fallen through. This means the practice of ‘gazumping’ – where a seller goes back on an agreement in favour of a higher bidder – is very rare in Scotland, although it’s not theoretically illegal. 2. Property is usually marketed at ‘over’ a specified price In Scotland, solicitor firms are often responsible for marketing properties, rather than estate agents. This is because most residential conveyancing firms in Scotland also have an estate agency department. Homes in Scotland are either marketed as offers ‘over’ a specified price, or at a fixed price. If it’s at ‘over’ a given price, interested parties will be asked to give sealed bids and timescales of purchase. The highest bidder will win and will be informed on the same day. If it’s at a fixed price (most common when market conditions are challenging or the seller wants a quick sale), the first person to offer the required amount becomes the successful party. In England and Wales, homes are marketed by estate agents at an ‘advertised price’ which is negotiable and are only financially tied in after contracts have been exchanged. 3. Sellers must provide information upfront In Scotland, almost all residential properties are required to have a ‘Home Report’ before they can be marketed for sale. The only exceptions to this are new-build homes and buildings that have been recently converted into residential accommodation. A Home Report contains a survey, a report on the home’s energy efficiency, and a detailed property questionnaire completed by the seller. By contrast, the only upfront information required in England and Wales to market a home is an energy performance certificate. Once an offer has been accepted the buyer can then choose to organise a survey of the property. Back in 2007, the Government attempted to replicate the Scottish system with the introduction of Home Information Packs. But, after a disastrous roll-out, the packs were finally scrapped in 2010. 4. There is no stamp duty Stamp duty in Scotland was replaced in 2012 by Land and Buildings Transaction Tax (LBTT). It applies to homes worth more than £145,000, compared to the £125,000 first stamp duty threshold in England. In Wales, Land Transaction Tax (LTT) applies to properties of £180,000 or more. First-time buyers in Scotland will only start paying LBTT on homes worth £175,000 or more, whereas in England relief is available on the first £300,000 of the value of all properties up to £500,000. 5. The ‘missives’ are legally binding When a bid has been successful, which is reported on the same day it was made, the buyer’s solicitor will confirm their mortgage with the lender, agree an entry date and deal with legal enquiries about the property. But instead of a single contract, a buyer’s solicitor in Scotland will exchange a series of formal letters, known as the missives with the seller’s solicitor. Once the missives are concluded, the deal becomes legally binding and the seller must convey the legal title of the property to the buyer. Failure to do so gives the buyer the right to be released from the contract and claim damages against the seller. In England and Wales, no legally binding agreement exists until...

5 differences between buying a property in Scotland and England

With half the nation worried about a lack of money in retirement, we consider whether equity release presents a viable option. With almost half of those set to retire this year worried they’ll run out of money in retirement, it’s no wonder people are looking for more ways to increase their income – and sooner rather than later. It’s a genuine concern. It’s predicted that one in 10 men and one in six women in the UK will be living on less than the recommended minimum income when they retire. Despite these troubling statistics, it’s thought that the over 50s are sitting on an enormous £2.8 trillion worth of property in the UK. With this in mind, it’s unsurprising that so many retirees want to unlock some of the cash in their family home to make up for their shortfalls. Equity release is a popular route, though it’s not right for everyone and there are significant risks involved. Equity release schemes have a chequered past and still struggle with their reputation. However modern schemes which follow the guidelines of the Equity Release Council have considerable protections including ‘no negative equity’ guarantees. So What is equity release, and how does it work? If you’re over 55, there are a range of products available for you to release money tied up in your home. The two most common are lifetime mortgages and home reversion plans. 1. Lifetime mortgage The most common option, and essentially where you borrow a percentage of your property’s value. There will be interest on this loan, but instead of having to pay it each month, it’s usually rolled up (added back on to the amount you have borrowed), and then paid off when the property’s sold. This means that the amount you owe would increase every month. 2. Home reversion plan This is where you sell off a chunk of your home to a home reversion company but continue to live there. This can be expensive, because you’ll only usually get a fraction of the value of the chunk you’re selling, and when the property is sold, the home reversion company takes a percentage of the sale. If, for example, your house was worth £200,000, and you sold half of it, you might get just £50,000. If the property value then rose to £250,000 when you came to sell it, the home reversion company would take £125,000. When you could consider equity release 1. If you don’t want to downsize If you can’t bring yourself to downsize, or you’re unwilling to sever the emotional ties with the family home, these schemes could help you free up some cash. 2. There could be tax benefits When your inheritance tax bill is eventually calculated, the mortgage and any interest is subtracted from the value of your property. If you’ve spent the equity or given it away at least seven years before you die, it won’t be counted. So there may be less tax to pay. But remember that tax rules can change and the benefits will depend on your individual circumstances. Where equity release isn’t the right decision In the right circumstances, equity release can work. But for most people, the additional costs outweigh the benefits of your other options, such as downsizing. 1. Interest on interest The interest being added to a lifetime mortgage can have a big effect on the sum you owe to the equity release company. Even at an interest rate of 3.5%, over 20 years, your debt will double. This might not be a problem if the value of your house rises faster than the rate your equity release mortgage increases by, but there are never any guarantees. These costs will impact the value of the inheritance you leave to your loved ones, so talk to those affected

Equity release is it right for you?

This guide will help you be a model landlord – and stay on the right side of the law. There’s an ever-growing labyrinth of dos and don’ts in the private rented sector. So if you’re a landlord – or considering becoming one – it’s important to stay on top of your legal obligations. So to help you get started in the right way here are nine top tips for landlords. 1. Find out if you need a landlord licence First things first. Check with your local council to see if you need a landlord licence to rent out your property. Legislation was introduced in 2006 and some areas have implemented selective licensing to clamp down on rogue landlords. 2. Stay on top of tenant checks That means rigorously referencing new tenants to make sure they are reliable. This includes checking their credit eligibility, getting references from their previous landlords and ensuring they have the right to lawfully live and rent in the UK. You risk a fine or even a jail sentence if you fail to carry out Right to Rent checks in England under the Immigration Acton 2014. However, this may change as Right to Rent has been challenged in the High Court as a breach of human rights so watch this space but remain compliant in the meantime. 3. Protect your tenant’s deposits You must protect tenants’ deposits safely in a government-accredited scheme within 30 days of receiving it. And once you’ve done that, you’ll need to give your tenant the Deposit Protection certificate and Prescribed Information. You’ve got a choice of three schemes: Deposit Protection Service (DPS), MyDeposits or the Tenancy Deposit Scheme (TDS). Since the June 1, 2019 when Tenant Fees Bill landed, the amount of deposit you can take from a tenant is capped at five weeks’ rent or six weeks’ if the rental costs are more than £50,000 a year. 4. Provide a valid EPC Make sure your property is up to scratch in terms of its energy performance – and hand a copy of the Energy Performance Certificate (EPC) to your tenant. As of April 1, 2018, your property must be rated at least ‘E’ in the EPC. If you’re rumbled arranging a new letting without ensuring your property is up to this standard, you may be fined. In addition, since April 6, 2018, you risk being banned from managing your property. That would mean your local council would take control of your property and collect the rent. But you would still be liable for the mortgage and any other costs, such as maintenance. 5. Do your safety checks You are legally required to have all gas appliances in the property checked by a Gas Safe-registered engineer every year – and provide tenants with a Gas Safety Certificate within 28 days of the annual check. But that’s not all. Fire alarms should be fitted on every floor of the property from the start, and carbon monoxide detectors must be in any room where solid fuel, such as wood or charcoal, is used. Test both alarms on the first day of the tenancy. You must make sure that your rental property in England is fit for human habitation. If you fail to comply with standards set out under the Housing Health and Safety Rating System, your tenants can take legal action against you. 6. Draw up a tenancy agreement It’s not a legal requirement but getting a tenancy agreement drawn up and signed by both you and your tenants is really crucial. Make sure it’s an Assured Shorthold Tenancy Agreement as that’s the type of contracts that renting rules and legislation applies to. 7. Carry out regular inspections – with permission It’s a good idea to regularly check the state of your property. But you are legally forbidden from entering without the tenant’s permission. It’s best practice to...

9 top tips to being a good landlord

The Tenant Fee Act is now in force from the 1st June 2019. The Tenant Fees Act sets out the Government’s approach to banning letting fees for tenants. The key measures of the Act include: Tenancy Deposits must not exceed the equivalent of five weeks’ rent (unless the annual rent exceeds £50,000 in which case deposits are capped at six weeks’ rent). Holding Deposits will be capped at no more than one week’s rent. The amount that can be charged for a change to a tenancy will be capped at £50 unless the landlord demonstrates that greater costs were incurred. The Consumer Rights Act 2015 is amended to specify that the letting agent transparency requirements should apply to third-party websites. Alongside rent and deposits, agents and landlords will only be permitted to charge tenants fees associated with: A change or early termination of a tenancy when requested by the tenant. Utilities, communication services and Council Tax. Payments arising from a default by the tenant where they have had to replace keys or a respective security device, or a charge for late rent payment (not exceeding 3% above the bank of England base rate). A breach of the fees ban will be a civil offence with a financial penalty of up to £5,000. You can see all the government guidance on the Tenant Fee Act by clicking here. New How to Rent Guide and Section 21 Form It’s also worth noting that the government released a new updated version of the Right to Rent Guide as well as a new Section 21 Form to factor in changes from the Tenant Fee Act. Please see links to the updated documents here: How to Rent Guide Section 21 Form So that concludes this episode of Ask the Estate Agent Podcast. You can contact us anytime using the links below: Facebook: www.facebook.com/asktheestateagent Instagram: www.instagram.com/asktheestateagent Twitter: www.twitter.com/asktheEA Website: www.asktheestateagent.co.uk So don’t forget to contact us with any subjects you would like us to cover or questions you would like answering in the coming episodes and until next time I would like to thank you for listening and goodbye for now. This podcast is brought to you by Liberty Gate www.libertygate.co.uk Nottingham’s multi award winning Estate Agency

The Tenant Fee Act 2019 and what you need to know

Considering gifting a property to your loved ones? Make sure you understand the financial implications first. Before giving a property to your children, make sure you understand the rules, and any costs involved. Otherwise, what could be a wonderful gesture can leave a bitter financial taste. There may be a number of reasons you want to hand over your property. You may have another home to live in or be moving into care, or you might want to help your children on to the property ladder. It may also form part of your estate planning, with the aim of slashing the amount of inheritance tax (IHT) you’re liable for over the long-term. The good news is that rules state that you can give your property to your children – even if you’re currently living in it. But there are potential costs, and it’s important to understand what these are.  1. The impact on inheritance tax (IHT) If you gift a property to your child to cut the value of your estate for IHT purposes, this is a so-called ‘potentially exempt transfer’. If you die within seven years of making the transfer, then the property will be considered as part of your estate value for IHT purposes. But if you live for seven years or longer, there will be no IHT to pay on the value of the property, and you’ll have managed to reduce the overall value of your estate. 2. If you remain living in the property In this case, gifting a property is considered a ‘gift with reservation of benefit’. This means that you keep the right to benefit from the property, ie. live in it, and it will form part of your estate on death. That’s even if you live for more than seven years after gifting the property to your children. You may be able to get around this particular rule by paying rent to your children, if you want to take your property out of your estate for IHT purposes. But it’s important to seek professional advice, as the rules can be complicated. 3. Falling foul of other rules If you give a property to your children, the council may consider this a “deliberate deprivation of assets” – or, in other words, a way of avoiding paying for potential care home fees. The council may think you are trying to hide wealth tied up in your property to avoid paying for care later down the line because whether you are liable to pay for care, depends on the value of your assets. In this case, the transfer of ownership may be reversed, and you find the property is back in your name. 4. And remember… You will no longer be the legal owner of the property if you sign it over to your children. There may be issues further down the line, if you regret the decision, or there’s a family dispute. In theory, you could be asked to leave your own home by your own children, if they want to rent or sell the property. Though, of course, you’d hope this wouldn’t happen. Also, if your child is married, and you sign over your home, and they then divorce, bear in mind that their ex could have a rightful claim over the property. There are plenty of scenarios you may want to factor into your decision-making, before giving a property away. Seek professional advice before gifting a property to children, or anyone else, including on tax and other financial issues that may arise as a result of this. So that concludes this episode of Ask the Estate Agent Podcast. You can contact us anytime using the links below: Facebook: www.facebook.com/asktheestateagent Instagram: www.instagram.com/asktheestateagent Twitter: www.twitter.com/asktheEA Website: 

Can I give my property to my children?

Knowledge and inspiration to take the next steps on the property ladder

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