August Content Property

An introduction to joint mortgages

A joint mortgage is a common method for groups of buyers who are looking to share the costs of buying a home. Whether you are a couple looking to buy a home, family members, friends or business partners, a joint mortgage can assist you with dividing up the share of the property and spreading out the monthly mortgage repayment.

You don’t even need to be living with the other party. For example, children and parents will often take out a joint mortgage so that the parents can assist with the cost of buying a first home.

How do I go about getting a joint mortgage?

The process is the same as applying for a regular mortgage. Both parties will be required to attend the mortgage interview and you will both need to provide all the same relevant documents should a lender request them.

The only limitation you may face is if you are applying for a mortgage with more than three people.

How much can you borrow with a joint mortgage?

One benefit of taking out a joint mortgage is because it increases the amount that a lender will be prepared to advance.

Lenders will take both parties income and outgoings into account in an affordability assessment, with most lenders offer a calculator on their website for figuring out the cost.

So how is the mortgage split between the parties?

There are two ways that a joint mortgage can be split:

Tenants in common
Tenants in common allows each party to own a different share of the property. Each party is also allowed to decide who they leave their share to when they die. All parties are required to consent to a sale, with this type of policy typically suiting friends or family buying property.

Joint tenants
Joint tenants is better suited to couples looking to purchase a property. Each person has a 100% stake in the value of the property, but again, both parties must consent before the property can be sold. If one of the parties dies, the share of the property passes to the other owner.

What happens if one person stops paying?
Whilst both parties are jointly liable for a joint ownership, the lender won’t care whether the repayment is split evenly down the middle. The other party not paying their share won’t be accepted as an excuse for failure to repay.

It’s worth warning anyone considering the option of a Joint Mortgage that lenders aren’t interested in which of you has contributed more, they will just expect the payment.

A joint mortgage is a perfect solution for those looking to buy with a second party. Your rights as a co-owner are enshrined within the terms of the mortgage, meaning you won’t need to worry about the security of your share, you can get a bigger advance due to your combined income, and you have assistance with the costs of your mortgage.

Does the new Prime Minister's appointment affect the property market?

The United Kingdom now has a new Prime Minister which moves us on swiftly from Theresa May’s reign as our second-ever female leader. Love him or loathe him, Boris Johnson is now leading the country into a historic era in terms of relations with Europe and the rest of the world. With the appointment of Johnson comes a step change in political policy, but what does his appointment mean for the property market, if anything?

During the midst of his campaign to become Prime Minister, Johnson made some proposals which could have far-reaching consequences for the property market – many of which could be extremely positive.

One of the key proposals that the man dubbed Bojo has put forwards revolves around stamp duty; for properties that cost less than half a million pounds stamp duty would be completely cut, and at the other end of the scale properties valued at over £1.5m would see rates cut from 12% to 7%. This latter proposal, in particular, could have a welcome impact to housing in the capital city due to the higher values of property prevalent throughout London.

These changes would be welcome to all in the property sector and could potentially signal an upsurge in property transaction levels, should they come into place. For the lettings market also, which has been subject to many legal changes in the past few months, this incentive could lead to growth.

The new Housing Minister, Robert Jenrick, has decried his modus operandi for property as “We will focus relentlessly on boosting supply and home ownership,” adding that “As the Prime Minister has made clear, we’re determined to close the opportunity gap and give millions of young people the chance to own their own homes.”

As well as appointing a comparatively youthful Housing Minister (Jenrick is the first cabinet minister to have been born in the 1980s), Boris Johnson has also appointed Sir Edward Lister as Chief of Staff. With Lister’s former employment being as chairman of Homes England, he brings with him a wealth of property insight to one of the top cabinet positions, which may benefit the industry in the long-term.

It seems that the sentiment amongst estate agents is positive with regards to Johnson’s appointment with Iain McKenzie, the Chief Executive of The Guild of Property Professionals, affirming that: “I am in favour of anyone who is going to improve sentiment or confidence in the housing market. Current economic data is strong, but the uncertainty of Brexit has caused stagnation in the market. Mr Johnson’s commitment to ‘deliver Brexit’ on 31st October with a new ‘can do’ spirit is therefore very much welcomed.”

House prices forecast to increase 1.2% over next three months

 A new study from reallymoving.com has found that current market conditions are indicating a 1.2% increase in property prices over the next three months of summer, which bodes well for a strong summer. To that end, the average price for a property in the UK now stands at £237,110.

These figures are supported by analysis by the Halifax looking at house prices over the last quarter. The latest Halifax house price index showed that property values actually increased by 2.4% over the last quarter, with Russell Galley, Managing Director of Halifax, explaining: “Generally the housing market is displaying a reasonable degree of resilience in the face of political and economic uncertainty. Recent figures show demand looking slightly more stable, with mortgage approvals ticking along just above the long-term average.”

With regional markets also showing resilience in the face of the potential instability that can be attributed to the ongoing Brexit uncertainty, property is set for another strong quarter. Eight of the twelve regions of the United Kingdom are set to see prices rise in the period to September 2019, with Northern Ireland and Wales all showing extremely positive growth.

Rob Houghton, CEO of reallymoving.com noted: “The chance of us leaving the EU without a deal seems increasingly likely and people are realising that the window between now and the end of October may present their best opportunity to sell. The market has proved itself to be surprisingly stable over the last twelve months.”

How much does disrepair put off homebuyers?

 When viewing a property, we’re all on the lookout for anything and everything that needs fixing or could use a bit of work.

While we’d all love to find a home that requires no work at all, chances are whenever you buy a property, it will come with its fair share of needed repairs.

But what type of damage to a home is most commonly a deal breaker for prospective buyers? Well, GoCompare has sought to find this out.

New research from the comparison site has quizzed people on which types of disrepair would lessen their enthusiasm for a home and what would completely kill their interest in a property all together.

It was found that damp was the biggest hurdle for buyers, with a huge 69% of survey participants stating that signs of damp on the walls and ceiling would force them to withdraw their interest in a home. This is understandable as damp left unchecked can lead to some very serious structural issues.

Not too far behind in the survey results was bad odours at 63% said that smells such as damp, food, cigarettes or pets would be a deal breaker.

Rotten windows and peeling paintwork took 3rd place in the results, with 59% saying that they would not put in an offer if they spotted these blemishes on a home.

As expected, not having a space to park your car is a big issue for 56% of buyers and it is no surprise that in today’s always online world that 53% desire a high-speed internet connection. The same percentage of participants would be put off a home if there was any work on the property that was uncompleted.

Some of the other negatives that made the list were neighbours with a messy garden (48%), a dirty interior (46%), outdated electrics (46%) and poor natural lighting (43%).

GoCompare Insurance spokesman – Ben Wilson – offered his comments on the findings of their research, stating: “Buying a home is a major investment and most people are put off by outdated properties or those in a poor state of repair. While dated décor can be remedied easily and relatively cheaply, major flaws from poor maintenance or badly botched DIY can be expensive to put right,

“A grubby home and untidy garden may suggest the current home owners are not only bad at housework, but may have neglected essential maintenance to the property,”

Landlords: How to avoid the dreaded void periods

All landlords at some point will experience the unfortunate situation of having void periods, hopefully not for any protracted periods. Read a few our tips which could help you to avoid these situations, or at least reduce them to a minimum.

Do your research

One of the easiest ways to avoid long void periods for your property is to ensure that you have the right tenant in your property in the first place. Having a tenant in your property who is suitable and can afford the requisite rent will, of course, reduce any headaches for you later down the line. Ensure that you agent has properly referenced tenants, and if at all possible, try to meet prospective tenants to establish a good relationship from the outset.

Short term vs. long term

As well as researching your tenants, investigating the area that you are letting your property within to ensure that you are asking for a fair price will also help you to side-step any void periods. A keenly priced property will attract more applicants, giving you a greater choice of tenants. It is important to keep in mind here that offering a more competitive rental price could lead to longer tenancies, therefore finding the balance is imperative for any landlord.

Property inspections

Regularly inspecting your property can be a good way to build up further rapport with the tenant if you are managing a property yourself, and allows you to ensure that it is in a good condition. This can benefit you in multiple ways; firstly, it helps to ensure that your property is of a nice standard for the current tenant, as well as meaning you don’t have to waste any time should your tenant move out and you want to bring your property to market immediately.

Find the right agent

With the raft of new legislation which has come into place in the lettings industry, having a well-informed and proactive estate agent has never been more important. Employing an agent on a fully-managed service will take many of the responsibilities out of your hands as a landlord and with the superior marketing available, as well as pools of applicants who are tried and tested, the most straightforward way to reduce your void periods could be to choose your agent wisely.

Mortgage lenders predicting more approvals

With mortgage approvals at record levels, the outlook for those looking to purchase a property is extremely positive and with even more approvals being predicted to be approved in the run-up to Brexit, now could be a perfect opportunity to gain that all-important mortgage.

According to data from UK Finance, the number of mortgage approvals in June rose to 42,653 which is an increase from May, and nearly at the same level as April’s two-year zenith of 42,792. With such consistently high levels of approvals being seen in the marketplace at the moment, even when compared to the same time last year, the sentiment in the market is clearly positive.

Commenting on the figures, Andrew Montlake, managing director of mortgage broker Coreco, said: “Passing the March 29 Brexit deadline was a symbolic moment for the UK property market.
“Sentiment among prospective buyers shifted very quickly from apprehension to a more positive mindset.

“The sharp strengthening in demand for house purchases during the second quarter reflects this shift in sentiment, and the broader Brexit pragmatism that took root. Looking forward, lenders are clearly more optimistic than some about the trajectory of demand in the third quarter.

“If demand for house purchases remains unchanged given the potentially turbulent months ahead, then that will be a considerable achievement. We are at a pivotal point in the Brexit endgame and a no-deal Brexit is now looking far more likely.

“As we enter uncharted waters, the impact of a no-deal Brexit on demand for property is anyone’s guess.”

Most popular day and month to move home revealed

The Summer months typically offer up a steady stream of house movers and shakers when it comes to the property market, with new research suggesting that August is the most popular month of the year when it comes to moving to a new abode.

HomeOwners Alliance has released the findings of a study that used data from 625,000 owner-occupier moves in 2016/17, and discovered that the eighth month of the year sees the most action, with Friday August 30th the most popular day to do so. Whilst letting data wasn’t present in the study, these findings are in line with the private rental market.

So, what’s behind this spike in activity during August, with 75,000 moves attributed to the month itself? Paula Higgins, chief executive of the HomeOwners Alliance puts it down to the Summer holidays, stating: “Many homeowners like to move during the school summer holidays so their children can settle into their new place in time for the new academic year, which is the start of September across most of the UK.

“It may appear sensible to move on a Friday, so you have time to unpack and settle in over the weekend before heading back to work. But we advise people to be exceptionally careful if they move on a Friday. On this particular Friday, 30th August, with even more moves expected to be happening than usual, it's paramount that people are as organised as possible.”

HomeOwners Alliance also pointed to Friday as being the most popular day of the week to move, which from a practical perspective likely stems from a desire to couple a time-consuming relocation with the weekend, saving movers having to take too much annual leave. Higgins has sounded a warning for those planning on a Friday move, however; “Of course delays can occur at any time, but issues with transfers of funds are more likely to happen on a Friday when banks, conveyancers and removal firms are stretched to the limit as it’s the time when most housing deals tend to complete.

“On the last Friday of the month bank money transfers can get overloaded and it’s peak time for conveyancing fraud. If there are delays in transferring funds, you may have to spend the weekend in a hotel or on friends’ and families’ sofa.”

New regulations proposed for Estate Agents set to transform industry

The government has published far-reaching proposals which, if put into place, will truly transform the practise of estate agency into a more regulated and rigorous profession. The proposals should give confidence to buyers and sellers, and for agents themselves there is the opportunity to be recognised for their expertise.

The report from the Ministry for Housing, Communities and Local Government (MHCLG) is based upon recommendations from the Regulation of Property Agents (RoPA) working group, established a year ago by the ministry. In it, the report focuses heavily on the regulation of the industry, training of those that work in the industry and the process of licensing in order to keep on raising professional standards in such a key industry.

Mark Hayward, the Chief Executive of the National Association of Estate Agents, welcomed the news from the RoPA, stating: "This is a significant moment for those in the property industry and a huge leap forward in stamping out bad practice. We have long called for Government intervention to ensure everyone in the industry is licensed, adheres to a strict code of practice and holds at least a Level 3 qualification (A-level). Following the extensive considerations by the working group, it is now for Government to create the structures for a properly regulated industry, whose professional knowledge and skills are trusted and respected by all.”

Key Recommendations;

• All agencies operating a residential property business should be licensed
• All customer-facing staff employed within such residential agencies should be licensed and agree to adhere to a Code of Practice
• For specific activities, mandated by the government, a Level 3 or above qualification will be necessary
• A regulator will be appointed to oversee compliance
• Whilst recommendations from a working group may not seem immediately relevant, the report which has been produced will form the basis of fresh government legislation on the subject, with the working party’s Chairman, Lord Best, stating that some of the key proposals will be realised in the next two years.

 

Click here to read the full RoPA report

Our top tips for designing a home office

With businesses offering a greater level of autonomy and flexibility to their workers than ever before, as well as millions who are registered as self-employed, many of us will have office spaces in our homes. These spaces are vital to our productivity, and we have therefore put some of our favourite design ideas together in order to make your home office a hotbed of efficiency.

Nail the basics
When designing a home office, it can be easy to get caught up in the design aesthetic first and foremost, but the basics of a suitable desk and comfortable chair are not to be overlooked. These two pieces of equipment could make your working-from-home bleak or blissful, so take the time to choose wisely. When choosing your seat, ensure that the height and lumbar can be fully adjusted; your thighs should be at a right angle to the floor and your feet totally flat to provide the most ergonomic seating position.

Don’t neglect storage
The old adage of ‘tidy space, tidy mind’ is prevalent for a reason – we tend to work best when we’re in comfortable, organised spaces. It’s easy to forget that a home office will need to have masses of storage in order to store your working documents, as well as any accoutrements you need on a day-to-day basis. When planning your home office, incorporate space for storage which includes shelving, cupboards and filing cabinets.

Plan for success
When redesigning any room, making a floorplan and laying out how the area to be renovated will be utilised is key, and this remains true for home offices. Consider how the space will be used; for example, will you be having customers or business partners visit your home office? If this is the case, you will have to consider extra seating, from a separate area to simply having chairs in the office which can be pulled up to your desk.

Create an oasis
Your home office should be a space that you want to visit; therefore, creating a pleasant and attractive room should be high on your priorities to encourage you to use it. Recent studies have suggested that using greenery in our workspaces can make us happier and improve cognitive functions, so adding plants or herbs in your office space are an easy method to incorporate some natural elements. In line with the greenery, keep the general feel of your home office light and airy by keeping walls and décor neutral, perhaps with one simple accent wall in a colour such as navy blue, which is supposed to help with concentration.

The five top considerations when choosing a new place to live

For many of us, when we decide to move to a new home there will be many factors to consider, which can range from new work commitments, to growing family needs or simply the need for better quality of life. A new survey from Broadband Choices has discovered the five key reasons as to why people select a location for their new home, which could form a useful list for current house-hunters.

1) Safety First
Whether you’re staying put or moving home, crime will always remain a key concern for the majority of us and with 84% of respondents to the Broadband Choices poll listing crime as a crucial factor this still rings true. Knowing that your home and possessions are in an area with low crime rates is obviously very attractive, with low crime rates correlating to strong house prices and the converse also true.

2) Commuting Commotion
Getting to and from work, as well as freely being able to see friends and family, is of course extremely important when deciding where we would like to live. Amongst correspondents, nearly three-quarters mentioned transport links as one of their decision points for a location to live within. Living within close proximity to a tube station, for example, can add £42,000 to the price of a home, according to research from Nationwide.

3) A Quality Connection
Unsurprisingly in these modern times, a strong internet connection which will allow broadband and television streaming services such as Netflix and Amazon Prime stands at third in the list of buyer priorities when searching for a new home. With 69% of people mentioning a strong internet connection in the poll, many of whom stating that they would pay over-the-odds for a property with guaranteed superfast broadband connection, it would seem that for home-sellers updating your broadband could actually help in the process of finding a buyer.

4) Top Of The Class
For those with families, schools are an extremely important consideration; with catchment areas and the competition around catchments for the best schools being an important factor for both families, and those planning on families in the long term. Just over half of correspondents listed schools as a deliberation in their home buying decision, with recent studies showing that homes in catchments for schools with Ofsted ratings of 1 can cost almost £40,000 more than those with Ofsted rating 2.

5) Shop Local
As well as transport links ranking highly in the list of priorities for buyers, local shops and amenities also place highly with just over a third of people stating that living close to shops and amenities is a significant factor in their property search.

The ideal home temperatures for our pets

With an estimated 51 million pets around UK homes, it’s clear that we’re a country that loves its animals. Of course, part of being a responsible owner/opener of cans of food is making sure that we take care of our pets, furry or otherwise. Given the increasingly hot temperatures experienced during June and July this year, it’s extra important to take care of them to make sure that they remain healthy.

To that end, one of the UK’s leading provider and installer of boilers, Boiler Plan has carried out a study into the ideal temperatures for a selection of animals, during Summer and Winter.

Cats
With 11.1 domesticated felines in the UK, cats are the country’s second most popular pet and whilst they may be infamous for showing a degree of ambivalence to their owners, they’ll certainly make their feelings known if they’re unhappy with their living arrangements!

Cats benefit from a temperature of close to 30°C at night time during the Summer, with a slightly lower temperature of between 25.5°C and 26.6°C ideal during Winter to allow them to grow their natural seasonal coat.

Dogs
It’s unlikely to surprise you that our canine friends are the UK’s most popular animal companion, with a dog in almost a third of the country’s households. Dogs the temperature at home to be a little cooler, during both the Summer and Winter, with temperatures around 25.5°C and 20.5°C ideal to keep them comfortable, whilst also encouraging their natural moulting process.

Fish
More than perhaps any of the other popular pets on this list, it’s of vital importance for you to research the temperatures that fish require for their tanks, especially when it comes to tropical or coldwater types.

For example, common goldfish will be comfortable in a tank of 21°C whereas tropical varieties of fish need their water to be a little warmer with a temperature of between 24°C and 27°C. Don’t forget to check which conditions your fish will need before you purchase them, as a heated tank may be necessary.

Guinea Pigs
Our furry friends need an equal amount of preparation when it comes to providing an ideal habitat. For example, did you know that guinea pigs don’t sweat? Their hutch must be kept away from any direct sources of both heat or cold, with an ideal temperature sitting between 18°C and 23.8°C.

Rabbits
Most of the three million domesticated rabbits in the UK are kept in outside hutches, which offers something of a challenge when it comes to keeping their temperature comfortable and consistent. You’ll be looking to keep things between 15.5°C and 29°C, meaning that you could need to move their hutch to a garage or shed should temperatures drop or rise below or beyond those guidelines.

Upsurge in tenant demand

Since the introduction of the Tenant Fees Act in June this year, tenant demand has increased to some seven times higher than at the same point last year. Perhaps somewhat unsurprisingly, many prospective tenants seem to have waited until the new legislation came into place on 1st June before committing to a property, leading to a huge upsurge in demand.

Between May and June, tenant demand is usually fairly static at around 1% over the past few years; however, this year’s increase stands at 7%. With such a rise in the number of potential renters in the marketplace, the number of property viewings also increased in July, as did the number of property transactions in turn.

Rightmove’s commercial director and housing market analyst Miles Shipside has said: “A spike in tenants looking for a new place to live indicates some unsurprisingly held out until fees to start a new tenancy were removed by the government at the start of June. The ongoing shortage of quality stock could end up being exacerbated further by landlords whose tenants are now giving their notice so they can move on without paying fees, and some of those landlords then choosing to sell up rather than let it out again.”

It would appear that the introduction of the Tenant Fees Act has led to a summer peak for the lettings market, with landlords benefitting from a saturated marketplace and rental properties being let more quickly. In the short-term, this is of course excellent for landlords looking to let their properties currently, and in the long term this may suggest that the introduction of the Tenant Fee Ban will lead to more tenants in the marketplace due to it being much cheaper to move into a rental property than previously.