Help to Buy ISA

The Help to buy ISA will be introduced by Autumn this year, available at bank and building societies. Each provider will be able to apply there own ISA stipulations e.i interest rate and withdrawal rules but normal transfer rules will be in place to ensure savers have the flexibility to transfer to accounts with better rates. 

There will be a maximum monthly saving limit of £200 for every £200 paid in the Government will contribute £50, the top up will be capped at £3000 and tax free meaning the maximum about of savings from the buyer is £12,000. The ISA is available 4 years from the initial scheme starting, once the account is open there is no time limitation on how long a person can use the ISA or when they claim the contribution. 

To ensure the Governments contribution is used correctly the funds will be released when the property has been purchased. The great thing is the ISA is available one per person not one per household and up to £1000 can be deposited into the account as the first payment. The property purchase cannot be for buy-to-let purposes, only for first time buyers who will be living in the property and their only residence. In London the the purchase value can be up to £450,000 other areas in the UK price must not exceed £250,000. The top up can be claimed at any time as long as there has been a minimum of £400 government contribution.

So first time buyers.....what are you waiting for!

Beth Alexandra Property Specialists 

Energy Performance Certificate

Energy Performance Certificates (EPC) were originally introduced as part of the Home Information Pack (HIP) required to market your property, since the HIP was suspended in May 2010 the EPC was to remain a mandatory requirement. When putting your property up for sale or rent you must have an up to date Energy Performance Certificate and it is required for any property with a tenancy commencing on or after 1st October 2008.

Visually the EPC is the colour coded chart you see on property details listed by estate agents, it is usual practice for your estate agent to make the arrangements for the EPC to be carried out with your instruction. The chart is split into 'Energy Performance Rating' and 'Environmental (CO2) Impact Rating' both rated A (most efficient) to G (least efficient). Also included in the certificate document is information on the property's energy use and typical cost along with recommendations on how reduce energy use and save money. It is valid for 10 years unless any changes are made that can effect the rating i.e insulation, double glazing or a new boiler.

Having this information readily available is all well and good, providing that extra bit of information for potential buyers and tenants on the energy efficiency of a property. But I have often wondered why there has never been a requirement in place for what rating the property should be at or above, especially for rental property. Then what was released a couple of weeks ago....

As of 1st April 2018 all rental property must have a minimum rating of at least an E. This new stipulation means that any property rented out with a rating of F or G is illegal. This could be a costly rule to adherer to for most landlords so my advice is to put a plan in place now to budget for any work that needs carrying out to bump up the EPC rating to an E or above. Don't leave it too late or it will cost you more in the long run!

If you need an Energy Performance Certificate please contact us Beth Alexandra Property Specialists 01344 771278 or email property@bethalexandra.com

Choosing The Right Conveyancer

Do you already have a conveyancer in place? It is surprising how many vendors and buyers don't, when an offer is accepted both parties should be ready to hit the ground running. It can be a negative start to spend the first 1 - 2 weeks on researching and retrieving quotes from solicitors. This eats away at precious time in which the selling process should be well under way, no one likes to be kept waiting. The key to choosing a solicitor is knowing they are going to be proactive, efficient and keep in touch with you every step of the way. A common occurrence between a conveyancer and their client is lack of communication. My motto is, make sure your file is top of the pile! 

If you have the benefit of knowing a solicitor and had recent experience with which was it was a positive one then I strongly advise you go back to them. Most likely they helped you to buy the property you are now selling! If you find yourself in a position with no solicitor then the first port of call is your estate agent. They should always have a panel of conveyancers who will take on your case. The benefit of using a firm the agent has recommended is not only for the reassurance but they will have a fantastic professional relationship with one another. Both agent and conveyancer are aware of each others processes and routine and will work as a team to get you moving. 

An easy mistake to make is opting for the cheapest quote, the price maybe great but will the service mirror it? Understandably moving house is a costly process but what you are dealing with is the most expensive asset you own, you cannot afford costly mistakes. Don't be afraid when looking into different firms searching outside your area. A number of soliciting firms now use online portals which you the client can log into and view the progress. This can actually be less time consuming than waiting for a meeting or a phone call with your conveyancer. 

Whichever route you take be one step ahead and begin the research early, leaving it too late can lead into a rushed decision so be prepared.

At Beth Alexandra Property Specialists we will guide you every step of the way. 

What The Stamp Duty Reform Will Mean To You

The stamp duty reform revealed and put into place last week, should we see as good news or bad news? The initial positive is buyers purchasing property under £937,500 will save on their stamp duty bill but the projected outcome will be that property prices will rise again. So actually will the new structure benefit us at all? Previously many house prices were determined by stamp duty thresholds, for example going over £250,000 tripled the percentage of stamp duty to 3%
Did the old formation keep property prices in relatively good order? Here is the old structure for you to take a look at for residential property:

Purchase Price               Stamp Duty Percentage

£0 - £125,000                                0%
£125,001 - £250,000                     1%
£250,001 - £500,000                     3%
£500,001 - 1million                      4%
1million  - 2million                      5%
over 2million                                7%

As of 4th Decmeber 2014 this is what the reform looks like for residential property:

Purchase Price               Stamp Duty Percentage

£0 - £125,000                               0%
£125,001 - £250,000                    2%
£250,001 - £925,000                    5%
£925,001 - 1.5million                10%
over 1.5million                          12%

Instant reaction is 'the percentages are higher!' yes this is true but the difference is you no longer pay stamp duty on the whole purchase price. You will only pay a portion of the total value that falls between each bracket. This is an example if you were purchasing a property with the old & new rates at the current average asking price of £273,000

OLD Rates

Purchase Price               Stamp Duty Percentage                   Stamp Duty Paid     

£273,000                                       3%                                                  £8,190


NEW Rates

Purchase Price               Stamp Duty Percentage                   Stamp Duty Paid   

£273,000                                       2%                                                  £2,500

(£125,000 of the purchase price falls within the second bracket £125,001 - £250,000)

                                                      5%                                                  £1,150

(£23,000 of the purchase price falls within the third bracket £250,001 - £925,000)


                                                                                     TOTAL           £3,650

So this means a total saving of £4,540! Lets see what the near future holds for the property market.....


Beth Alexandra Property Specialists

List Your Property For Sale In Time For The Christmas Rush!

Christmas is fast approaching and you are beginning to think....we need more space! Or you have too much space and need to downsize. So your thoughts creep towards the subject of, should we move in the new year? If this is you, then my best advice would be to list your property now!
Property search portals have their highest volume of web traffic over Christmas Day and Boxing Day. It sounds crazy but if you are thinking of moving then no doubt you will be part of that browsing traffic too. The important factor of this is to make sure your property is available for all potential buyers to see within this surge of activity over the Christmas period.

I know what you are thinking, you have too much to do and busy Christmas shopping but why leave this opportunity to pass by. Ok so another reason is, you already put your Christmas decorations up. See this as a positive, does your home look warm and inviting with a spruced Christmas tree draped in twinkling lights and shiny baubles? Of course it does, it is the time of year when home is where you want to be and buyers will be in the same mindset. But you want their new home to be your old home.

There are many aspects of selling a property and you don't want to leave any to chance. Sometimes the smallest of additions can make a difference and it only takes a quick visit from your agent to take new photographs once all the festive cheer is put away.

Beth Alexandra Property Specialists 

Avoid An Empty Property Over Christmas

So, have your tenants recently given notice to leave your rental property? Panic sets in because its getting closer to Christmas and the last thing you want is the thought of an empty property while tucking into your Christmas roast, fear not! Here are some hints and tips to effectively find a tenant sooner than you may think...

Confirm an exact date of when your current tenants will be vacating the property, ideally in writing and signed by both parties so a specific date is agreed.

Inspect the property before the tenants move out, make a snag list of all the odd jobs i.e fixing a leaky tap or lose door handle that can be done while the property is still tenanted. Bigger plans like painting or new carpets you can have scheduled to be carried out the minute your current tenants leave.

Instruct an agent (ahem, Beth Alexandra Property Specialists) to list the property and activate it 'live' at least one week before the end of the tenancy. Give your current tenants plenty of notice so the property can be prepared for the photographs.

Arrange an open day for potential tenants to view, preferably before your present tenants leave. It is usual practice that current tenants must co-operate with access for viewings during the last month of their tenancy.

The sooner viewings commence the sooner a new tenancy can be secured and less time the property is left empty.

It all seems easy when put into 5 simple steps, the key is knowing your plan, being organised and carrying it forward. So get started!

Mortgage Rule Changes and Decrease in Lending

As released last week mortgage rules have changed, making it tougher for buyers to secure a mortgage. Lenders now take into account all outgoings of each applicant from how much you spend on a regular food shop to asking if you gamble. The interviews carried out by the lenders such as Santander, Nationwide, Natwest, Halifax, Yorkshire Building Society and Lloyds Bank, can range between one and a half to two and a half hours long. You may say this is a step too far but 1 in 5 first-time buyers regret not purchasing a cheaper property because they underestimated the costs involved in owning a property on top of all other spends. 

Prices are increasing throughout the UK, some areas more rapidly than others but now mortgage lenders have become more stringent, means it is less likely the hiking property prices will create a bubble and the system is more controlled. 

In the last 2 months mortgage approvals have fallen by 11.9%, it is too soon to say whether this is because of the new rules but it will certainly in the near future make an impact. Other factors could be the absence in property on the market so people are resistant to move. Howard Archer, the chief UK economist at IHS Global Insight has said ''it is likely that the further easing back in mortgage activity in March from January's peak level reflected some banks raising their mortgage lending standards before the new regulations''.
Whatever the reason may be it is a measurement we could be thanking in time to come.

Beth Alexandra Property Specialists

Online Estate Agents Survey Results - Be Part Of It!

What is a theory without the facts? After carrying out my own survey to analyse the trends on how you search for property and what choices you would make when selling your home reveals the online estate agency model is the way forward. After all there are a few big names in business who realise the change and making huge investments in the online property industry.
Sir Stelios Haji-Ioannou of EasyJet
Steve Smith of Poundland
Paul Pindar former Capita chairman
James Caan the Ex-Dragon

If you are still unsure on the concept or future of online estate agents, these results should help you.

1. When searching for property do you start by looking online?
Yes   100%
No    0%


2. When searching for property do you;
Go to estate agents websites individually   5.56%
Go to property portals such as Zoopla & Rightmove   94.44%


3. When searching for property do you visit the estate agents shop?
Yes   11.11%
No    88.89%


4. When arranging a viewing at a property, what are you most likely to do?
Call the agent   66.67%
Email the agent   33.33%
Visit the agents shop   0%


5. Online estate agents are known for offering lower fees so when selling your property would you use an online agent or high street agent at a higher fee?
Online agent   76.47%
High street agent   23.53%


6. When selling your property which payment method would you prefer?
Pay a low upfront fee and no fee on completion   52.94%
Pay no upfront fee and be charged a percentage of your sale price on completion   47.06%

Do you see the pattern emerge? 

From a business model point of view for Beth Alexandra Property I not only save you money by offering Flexi-Fees (pay upfront or pay percentage on completion) but provide a high quality service, continue to change the face of estate agency and deliver what you want!

7. Would you be more likely to use an estate agent on recommendation?
Yes   94.44%
No    5.56%

8. Please rate your previous experience with estate agents;
Poor   33.33%
Fair    16.67%
Average   33.33%
Good   16.67%
Excellent   0%

If you would like to take part in this survey please click the link
https://www.surveymonkey.com/s/95HL32P

Property Price Divide Between North & South

Well, after a successful blog last week about Gazumping which got me on a BBC Radio Breakfast Show! I'm going to branch out from this topic and discuss the property price divide between North & South. As the property market continues to move forward all over the country it causes property prices to increase but there is still a major difference in the increases and the pace of the market across the country.

Property prices are increasing all over the UK but some areas at higher rates than others, an average home in the South is 74% more expensive than in the North before we even start! Southern regions have risen by 6.1% year on year whereas this figure only reaches 3.1% in the North of the country.

Once a property hits the open market in the Capital it already has at least 25 buyers inline ready to purchase it whereas in comparison to the rest of the country only having 12.

There will always be a divide between the North & South property market but it is good to see that is it the whole of the UK to is benefiting in some way from the move in the market. This advance will not stop here, especially since the help to buy scheme was made available to new or existing homes up to £600,000 at the beginning of the year, 2014 is said to be the ‘Big Year’ and showing no signs of cooling down.

Are you looking to sell or rent your home? Look no further than Beth Alexandra Property Specialists