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. 

Real Interiors UK - New Year New Home

Whilst diets and promotions top many New Years’ resolution lists, January is also the perfect time to make the changes to your home that have been bugging you for months.

Shirley Goodgroves from Real Interiors is a ‘Home Staging’ expert with a sharp eye and a creative touch.  She uses her experience and vision to look beyond clutter and mess and turns tired homes into attractive options that appeal to potential buyers.

Whether you are looking for a haven in the chaos of family life or want top dollar in the estate agent’s window, Shirley’s fail-safe tips will make you a property guru in 2015.

• Your house is worth more when it’s tidy according to a recent survey by Big Yellow Self Storage and 22% of buyers won’t make an offer on a property if its too cluttered.  Have a big sort out in January and then try to keep on top of it a bit at a time.
• Be realistic! Your home was created over months and years so you won’t transform it in an hour.  If it’s all too daunting, spend 10 mins clearing out a kitchen drawer and once you start seeing results you’ll want to continue.
• If you’re thinking of putting your home on the market this Spring, assess what buyers might think of it.  Have an evaluation done by a property professional and consider staging to maximise your property value before you call the agent.
• Forget your personal taste, buyers are looking for neutral but not bland properties so its essential that this is what you offer.  You can introduce colour through accessories rather than paint.  A properly dressed bed, vase of flowers and well placed mirrors and pictures will transform your home into an attractive investment.
• Remember all those little jobs that you’ve been meaning to sort out but never got around to?  Now is the time to fix the dripping tap, change the cracked tile and rehang dropped doors on cupboards.
• Its true that wafts of baking bread and freshly brewed coffee create the perfect ambience for buyers but be warned – they are put off by smells of animals, damp and cigarette smoke.
• If you do nothing else, ensure your house is clean.  Sparkling windows and dust free skirting boards will show a buyer that this is a property which is well cared for and looked after.

For assistance on staging your home for sale, decluttering when it’s all become too much or simply to feel happy with the home you’re in, call Shirley at Real Interiors on 07866 566141 for a solution that’s perfect for you.

For more information go to www.realinteriorsuk.com

Before

 After

 Before

 After

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!

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

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