5 Reasons to Hire an RICS Chartered Surveyor

5 Reasons to Hire an RICS Chartered Surveyor

A guest blog from surveybooker.com

Buying a property is one of the largest financial commitments many people may make in their life. Much as you would hire a Conveyancing Solicitor to ensure there are no legal issues with a property, an RICS Chartered Surveyor will look for any physical issues with the property.

In 2014, the average repair bill for homebuyers who did not commission an independent survey was £5,750! If that is not reason enough to book a survey, here are 5 more benefits of doing so:

1. Highlight potential defects

Unlike even the most thorough inspection you make when viewing a property, a Surveyor will inspect all areas of the property that are safe and accessible, including the loft space, basement and roof. Surveyors also have specialist equipment, allowing them to produce in-depth reports even when access is restricted. This allows them to spot potential defects you may have missed with a naked eye.

2. Market valuation of property

Unlike a mortgage valuation an independent market valuation is far more credible and takes into consideration large, significant defects. The report is longer and includes comparable properties and brief information to substantiate the Surveyors valuation. This allows it to be used as an effective negotiation tool and prevents acquiring your investment at too high a premium.

A Surveyor can provide an accurate reinstatement value for your building insurance, to ensure you have adequate cover. This is crucial so your property is neither under nor over insured. In the event of a claim, if you are underinsured your settlement may be reduced proportionally to the gap in insurance or in extreme cases your claim may rejected. If you are over insured, you may be wasting money overpaying on your insurance premium.

3.  An RICS Surveyor is unbiased and regulated

Chartered Surveyors are regulated by the RICS and are held to a strict code of conduct. These rules clearly define the professional standards, which are expected of the Surveyor and require firms to have a complaints handling procedure. This helps to ensure that estate agents, mortgage companies or any other parties with an interest in the transaction, do not have any influence over the Surveyor.

What happens if a Surveyor makes a mistake and misses a defect, which could later cost you money to repair? Chartered Surveyors are required to have professional indemnity insurance cover for such an occasion. If you suffer a loss as a result of an error made your Surveyor, this will be covered by their PII policy and their insurer will cover these costs for you. Effectively, it acts as a safety net for both you and the Surveyor.

4. A survey is not a mortgage valuation

A mortgage valuation is for the benefit of the mortgage lender and in some cases the homebuyer may not even receive a copy of the report. It is to help the mortgage provider make an informed decision before agreeing to lend funds. The Surveyor will briefly inspect the property (usually lasting less than 20 minutes) and will collate their findings with information about local, comparable properties. The report is concise and will only highlight major, obvious defects, which could have a significant effect of the property value which could therefore affect it as security for the proposed loan.

5. Grow your investment

Even after your initial purchase, a Surveyor can help maximise your investment. They can offer professional advice about the scope and suitability of potential extensions to your property. This can help avoid unforeseen delays and expenses, as well as providing you with information about how such investments will affect the overall property value.

About the author

Surveybooker.com is a brokerage for RICS Chartered Surveyors. You can get free, fixed quotes from local RICS Chartered Surveyors by either visiting our website or calling us on 0333 011 6683.

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 

Smoke & Carbon Monoxide Alarms

Landlords will soon be required by law to install working smoke and carbon monoxide alarms in all their tenanted properties, this is expected to be in place from October 2015. The smoke alarms will need to be installed on every floor of the property and tested at the start of a tenancy. The carbon monoxide alarms will be required in high risk rooms, for example where a solid fuel heating system is installed. During the tenancy period it will be the responsibility of the tenant to maintain and test the alarms and to report any faults. 

The fire service are on hand to support private landlords on meeting the requirements and new responsibilities. Grant funding from the government will enable landlords to claim free smoke and carbon monoxide alarms, the allocation of funding will be announced in due course. 

Landlords who fail to comply are at risk of facing sanctions and be landed with a bill of up to £5,000 civil penalty. 

The new compliance will bring property up to standard on current building regulations, new builds are required to have hard-wired smoke alarms installed. 

It is a simple safety procedure that will save lives and a simple understanding for both landlord and tenant as to where their obligations lie on installing, testing and maintaining.

Make sure your property is up to standard!

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!

Is Your Tenancy Deposit Secure?

If you are a tenant renting a property who signed an Assured Shorthold Tenancy agreement and paid a deposit under this agreement, have you made sure that your deposit is secure? All deposits paid under an AST from 6th April 2012 in England and Wales must be secured in a Government funding protection scheme. The funds have to be registered with 30 days of of receipt of the landlord and confirmation should be forwarded to the tenant so they are aware where the deposit is being held. The information should also include: 

• The full address of the property being rented
• How much deposit has been paid
• Details on how the deposit it being protected
• The contact details of the tenancy deposit scheme and its dispute resolution service
• The landlords contact details
• The letting agents details (if applicable)
• Contact details of any third party who has paid the deposit
• Instruction on how to claim the deposit back
• What to do if there is ever a dispute

The protection scheme is in place to ensure the deposit is returned to the tenant at the end of the tenancy in full or in case of a dispute the negotiation is dealt with professionally.

At the end of the tenancy the deposit should be transferred back to the tenant within 10 days of agreeing the amount. In the likelihood of a dispute the tenancy deposit scheme will continue to be protect the funds until the negotiation has been settled.

Beth Alexandra Property Specialists

Landlord and Tenant Responsibilities

Landlord and tenant responsibilities are always made clear in a standard Assured Shorthold Tenancy agreement but why do we still hear of bad experiences?

The foundation of a good relationship between landlord and tenant is respect on both sides and understanding what your responsibilities are.

For a landlord this involves making sure the property is free of any health hazards and safe for tenants to live in. The following checks must be carried out prior to tenants moving in:

Gas safety check - must be carried out by a Gas Safe registered engineer and provide the tenants with a copy of the certificate for proof.

Electrical safety - the electrical system and any appliances should all be checked and safe to use.

Fire safety - making sure the tenants have access to escape routes and all furnishings supplied are fire safe.

Landlords are always responsible for repairs on the structure and exterior of the property. Any type of sanitary fittings i.e sinks/baths/WC. Heating and hot water should always be in full working order. Bear in mind, any repairs needed due to the tenants own fault, there will need to be some compromise. This takes me onto the tenants responsibilities:

Pay the agreed rent on time.

Pay any utility bills that are not included in the rental amount i.e council tax, water, electricity & gas.

Take good care of the property, repair any damage caused by you, family or friends.

How easy does all that sound? In practice it should be and it makes sense!

These are just the basics and the obvious points but the responsibilities need to be clear and understood. Its the grounds of a good landlord and tenant relationship, start as you mean to go on.

Beth Alexandra Property Specialists

3D Printing a Full Sized House!

Believe it or not 3D printing of a full sized house is currently being worked on by Architects in Amsterdam taking property construction to another level! Could this be the next step to creating an Eco-friendly home? 

The material used is a plastic containing plant oil which contributes to 75% of the mixture. The structure itself is printed in sections inside a shipping container, one room can require six to ten blocks. Once all the pieces are ready they will be fitted together to form a detached house with an estimated construction time of 3 years. A company in China is also putting the idea into practice taking it a step further by using recycled materials to build each structure, they claim to print bungalows for less than £3000.

So if we look at this realistically this is not a project that will make any changes in the way property is built but if you want a space which you can claim to be Eco-friendly then this is for you. After all it is important to take care of our planet and recycling is an important contribution. Creative people out there have already assembled or are creating their own Eco-living space from converting shipping containers to making the most of used vehicle tires, the possibilities are endless! We would all love to have our own little space to escape.

Beth Alexandra Property Specialists 

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

How the Help-to-Buy Scheme Has Helped

By the end of January 2014 there had been 17,395 property sales completed through the Help to Buy Scheme since its launch in April 2013. 82% of the equity loans went to first-time buyers and 85% to buyers outside of London and the South East.

The scheme had mixed reactions in the beginning and concerns it would create a housing bubble but as I mentioned in last weeks blog figures show that mortgage lending activity still remains lower than the previous record. The Help to Buy was designed to allow first-time buyers to get on the property ladder resulting in movement along the chain which is exactly what the market needed.

It has been released that Santander and NatWest are the first lenders to increase the interest rates on their Help to Buy mortgages, the increases ranging from 0.1% to 0.4%. Vince Cable, the Business Secretary has stated that interest rates should be raised to avoid a situation where house prices are out of control. 

If you are unsure how the Help to Buy Scheme works here is an outline for you.

• It helps you to get onto the property ladder or move up it, to purchase new builds or existing homes up to the value of £600,000
• You will need to contribute at least 5% of the property price for the deposit.
• The Government will give you a loan for up to 20% of the price, the loan is interest free for the first 5 years.
• You will need a mortgage of up to 75% to cover the rest of the property price.
• Following the purchase you can choose at any time to make voluntary part repayments of the equity loan. The minimum voluntary repayment is 10% of the market value at the time of repayment. 

Who can't utilise the Help to Buy Scheme?

• The property purchase must be your only residence. Help to Buy is not available to assist buy-to-let investors or those who will own any property other than their Help to Buy property after completing their purchase. 
• You cannot rent out your existing home and buy a second homes through Help to Buy. 

What happens when you decide to sell?

• The equity loan is re-payed upon completion of the property sale unless you have already chosen to repay the Agency's equity loan prior to selling.
• If you sell your property for more than the prevailing market value then the amount dye to the Agency under the equity loan will be their percentage value of the actual sale price.
• The Agency will not agree to release its charge over the property for sales less than market value.

The scheme has now been extended until 2020 to continue to make a difference and keep our property market moving.

Beth Alexandra Property Specialists

UK Property Prices Continue to Rise

So, my blog last week I discussed the price divide between the North and South property markets but let us have a quick look about the UK as a whole. As official figures are released from the Office for National Statistics prices across the UK rose by 9.1% in the year to February 2014, this is 3.6% higher than the last property boom in 2008.

The Nations individually grew by the following amounts;
England   9.7%
Northern Ireland   2.8%
Scotland   2.4%
Wales   5.3%

But is the property 'bubble' being exaggerated? Lets face it, property prices can easily increase but will the sales keep up with the pace. Property prices in London alone have increased by 17.7% in the last year to February 2014 but is 75% of the turnover in property sales in the UK. 

Mortgage lending activity still remains lower than previous record but the Help to Buy scheme has been a huge success and contribution to moving the market forward. By the end of January 2014 the Help to Buy scheme sales had reached 17,395 and may this continue as the equity loan was last month extended to run to 2020.

Next week I will go into more detail about the Help to Buy scheme, after all it has really helped!

Beth Alexandra Property Specialists