Author: anna

With a dramatic shortage of homes to buy, national and local government are under increasing pressure to build more homes and we are certainly seeing more developments popping up.

There are many benefits to buying a new build home in that no one has ever lived in it, meaning all fixtures and fittings are brand new and never used. Some developers give buyers who commit early enough the choice as to where things go and what extras they want including.

However, there are certain precautions that buyers should take to avoid the dream home turning into a new build nightmare.

New Build or ‘Off-plan’

There is a big difference here. A new build will be completed, and whilst there may be other phases on the same development still underway, the actual property you intend to buy is built and available for you to view. However, remember if work on the rest of the development is still underway you will want to find out an estimated completion date otherwise you could find yourself living in a building site for a long time!

Off-plan means that the property has not been built or is not yet completed. In this instance always seek legal advice so you know exactly what you are purchasing and when it will be delivered.

New Build Premium

Because you are purchasing everything brand new, you are likely to pay 10-15 per cent more than the current market value but the equivalent property second-hand. Whilst some developers may be open to some negotiation, it really depends on how strong the local market is, how many properties are available in the development, the quality of the fixture, fittings and finish. Until a scheme becomes established in its market (unless it’s a, be prepared for the fact that your home may not be as easy to sell as it was to buy.

Leasehold properties

Leasehold is one of the great property scandals of our era which continues to blight homeowners if they are not aware of the conditions they are signed up to. Sometimes a well-maintained leasehold scheme can add value by providing common land, service maintenance, and shared facilities such as a gym, pool or security. Often, though, this ends up being an additional cost for ground rent which can increase year on year.

Even if the property is freehold, it’s useful to check who will have responsibility for any common spaces on the new build housing estate such as parks or greens.

Read the small print

Always ensure you understand what’s included and not included in the purchase price agreed and the guarantees. New build homes come with the NHBC warranty covering

structural defects, but you need to understand the detail in the developer’s own warranty that cover more detailed aspects of your home.

Also remember, housebuilders and developers are not currently under any legal obligation to be signed up to a redress scheme, such as The Property Ombudsman (TPO) or Property Redress Scheme (PRS). This means if you have an issue with the service provided by the developer and they are unwilling to address it, you are unlikely to be compensated. Many developers sign up to redress schemes voluntarily and it would be wise to find out if the one you are looking at is covered by TPO or PRS.

Just be aware that you are buying an asset whose value will likely depreciate rather and appreciate over the next few years so do your research on the developer to avoid issues that all too often arise with buying a brand new house.

If you have purchased a new build property in the last few years and now need to move but are having trouble selling, WeBuyProperty will be happy to discuss your situation and give you a no-obligation valuation to purchase your property for cash.

Phone number: 0207 938 3007 or 0207 449 9797
Email: info@webuyproperty.com

Having spent so much more time at home over the last 18 months, many people, who in the past rarely heard or had much to do with their neighbours, are suddenly more aware of their presence, irritating habits and noise!

Churchill Home Insurance revealed there has been a 28 per cent increase in noise complaints over the past year with around 1,000 cases forwarded to councils across the country every day.

The increase in the number of people getting dogs whilst at home has likely contributed to the issue, with many now returning to work and leaving their previously pampered pooches barking all day.

Being unable to socialise as much in public settings and spending more time in the garden has also led to a surge of people installing garden bars, hot-tubs and social seating areas, leading to more garden parties and ultimately more noise for neighbours.

For most people, these will be minor irritations which can most likely be resolved.  But here are some simple steps to follow if you have a nightmare neighbour:-

1) Remain calm. It is important to approach any situation in a reasonable manner.  Pop over and explain the impact their noise or change in behaviour is having on you, as they may not even realise. Remember, they have a right to enjoy their own home too, so ensure what you are asking is reasonable.

2) Consider your own behaviour. If you complain to them on a regular basis, it is important they cannot bring up any similar arguments against you in response, so consider if your behaviour and use of outdoor space has also changed before you criticise them. Keep your own household noise levels to a minimum.

3) Keep records. If your neighbours are not listening to your concerns, document the times and ways they are being disruptive. It is important in case you need to complain to your local authority.

4) Consider soundproofing. Simple sound-proofing can often make a bad situation more bearable. From using rugs, carpets and soft furnishings to absorb sound to installing specialist tiles in ceilings and party walls, there are lots of affordable options available.

5) Never retaliate. Never let frustration get the better of you. It may feel as though the only way to solve the issue is to retaliate and be disruptive yourself. But this is only going to escalate the issue and will count against you further down the line.

6) Contact your local authority. If you cannot resolve a situation yourself, make a complaint to your local authority first and follow the steps they advise.

7) Seek legal help. If this does not work, seek legal help.

8) Consider a move. Whilst a situation with neighbours should never have to force someone out of their home, for some people who have already been thinking about it, a change may just be the best solution.

If you have difficult neighbours or perhaps have become increasingly frustrated with where you live since the pandemic (more cars parked outside your house with people home working, more dogs barking in gardens, your property no longer suits your lifestyle), then WeBuyProperty can offer no-obligation valuation to buy your home for cash and transact in a matter of weeks.

 

If you would like to discuss any issues you are having with selling your home contact us on:

Phone number: 0207 938 3007 or 0207 449 9797
Email: info@webuyproperty.com

 

 

Boris Johnson will today reveal his long-awaited proposal for solving the social care crisis, which has been twinned with plans to bring down soaring NHS waiting lists. To fund the moves, an increase in national insurance has been proposed.

However, experts are also warning families that a hike in inheritance tax (IHT) and capital gains (CGT) could also be on the horizon as Prime Minister Boris Johnson and Chancellor Rishi Sunak hunt for ways to fund social care, the NHS and Covid bailouts. Tax charges could double in some cases and families could be forced to sell homes as a result.

As we have discussed in numerous blogs over the last year, property prices are rising at an extraordinary rate, and these rising property prices are dragging more people into the inheritance tax net.  This means even more will get caught if IHT is increased.

The nil-rate threshold has been frozen at £325,000 since 2009, and that will continue until at least April 2026.  HM Revenue & Customs (HMRC) pocketed a whopping £5.4 billion from IHT in the 2020 to 2021 tax year, and will be looking for ways to raise yet more revenue from this hated levy.

Personal taxes, including IHT and CGT, could be in for a massive overhaul given the amount they raise for the Treasury.  Anyone who thinks a rise could affect them should start planning to reduce any potential bill now by making the most of current allowances and passing assets onto loved ones before any new reforms are introduced.

Anyone who sell assets at a profit is at risk of an CGT bill if sold at a profit, including property other than your main home, shares and other investments held outside of a Tax-Free ISA, as well as paintings, antiques and jewellery.

Currently, basic rate taxpayers pay capital gains tax at 10 percent, rising to 20 percent for higher-rate taxpayers. These rise to 10 percent and 28 percent respectively when selling an investment property or second home.

Many suspect CGT will be synchronised with income tax which would mean everyone would face at least a 100 percent increase in the rate payable.  According to some expects, there are some people who may need to go as far as selling family homes to pay their IHT bills,

HMRC generated a record £9.8 billion a year from capital gains tax in the 2019/20 tax year, the latest figures available. That is up fourfold from just £2.5 billion a decade earlier.

If you are looking to sell a second property quickly for cash, WeBuyProperty can offer a no obligation valuation and transact within a matter of weeks.

 

Millions of homeowners approaching retirement are living in houses which they themselves consider too large for their requirements (25 percent of over 60s) and yet only a dearth (14 percent) have considered downsizing as an option to free up cash, according to a survey commissioned by Churchill Retirement Living.

Downsizing can have wider social benefits as it is estimated that every downsize move frees up two or three more houses down the property chain. This is important when we consider how many first-time buyers and families struggle to buy an appropriate home.

However, in response to the pandemic, fewer people approaching retirement age are looking to sell, exacerbating the UK’s unprecedented housing supply crunch, and contributing to spiralling house prices over the past 12 months.  According to Legal & General Financial Advice, these proposed moves would free up roughly 2.9m homes.

What is interesting, is it is thought that on average people believe they could make £150,000 if they were to downsize, with 1 in 10 people surveyed by Churchill saying this figure would be between £250,000 and £500,000.

Aside from the potential financial benefits, there are also other advantages to considering a smaller home. Many people are aware that their homes are too large to suit their daily needs and as they get older, properties become harder to clean and maintain, particularly if they become less able to manoeuvre through as many rooms and stairs.

Many people have spare rooms which are seldom used, and often become storage rooms. Downsizing, whilst it can seem a daunting prospect, especially when years of family memories are often engrained in the walls of a home, can also bring about greater freedom and a more enjoyable retirement.

Here are our top 5 benefits to downsizing:

1. Increased cash flow

Downsizing enables homeowners to free up equity, particularly if you move within the same location or perhaps even somewhere with lower house prices which would enable you to still buy a property with plenty of room…but not too much. If you are approaching retirement age and haven’t yet paid off your mortgage this could be a good way to do so.

2. Eliminate clutter

Moving to a smaller home provides an opportunity to declutter. As we age, we accumulate pieces of furniture and sentimental belongings. By moving to a home that will not be able to accommodate these possessions, homeowners are stricter with filtering out what they really want to keep.

3. More time

A smaller home means less time spent on maintenance and chores and more time taking days out and doing activities for pleasure.

4. Lower bills

One of the main benefits of downsizing is the fact that a smaller home will incur lower monthly costs. Not only will the mortgage be cheaper (if you have one) but homeowners won’t be heating up and powering a 4-bedroom home with multiple living zones when only 25 percent of the space is being utilised.

This results in noticeable reductions in everything from energy bills to maintenance costs. In terms of monetary savings, it is also worth noting that a smaller home will also reduce insurance costs.

5. Lifestyle changes

Another one of the great benefits of downsizing is the lifestyle changes that such a move triggers. As previously mentioned, downsizing gives more time and freedom to enjoy hobbies, activities and weekends away.

Of course, it is a difficult decision and homeowners must weigh up these benefits against the practical and sentimental reasons which may prevent them from downsizing.

If you have considered downsizing but would prefer not to go down putting your home on the open market and would prefer a quick sale, for whatever reasons, WeBuyProperty is available to talk through your options and provide you with a no-obligation valuation.

We could help you transact and free up retirement cash in a matter of weeks.

Phone number: 0207 938 3007   Email: info@webuyproperty.com

 

 

 

You may be tentatively looking at moving or may have inherited a property and be looking at the current market and the best way to go about selling the property. One thing you may not have considered yet is the cost. There is no doubt about it, selling a house can be an expensive business, with the average cost of selling a house valued at £250,000 sitting at approximately £5000-£6000.

Of course, the total cost of selling will vary significantly depending on the price of the house, your choice of solicitor, whether you use a traditional or online estate agent (or even sell privately yourself) and whether you are liable for any other fees such as those for re-mortgaging, if your house requires a new EPC and if you require removal or house clearance services.

In this blog, we have broken down some of the main costs of selling a house to help you budget and consider where you might be able to make savings.

Estate Agent Fees
An estate agent will typically charge a homeowner a commission fee of between 0.5% and 3% (+ VAT) of the final sale price.  As of June 2021, the average house price in the UK, according to Land Registry UK House Price Index, was £265,668. That means selling a property at this value would cost anything between £1,328 and £7,970.  We should point out that paying a fee at 0.5% is pretty rare and most agents land somewhere in the middle around £1.2% which would equate to £3,188 + VAT.

Selling via an online agent may offer a cheaper commission fee, with many offering a fixed price rather than a percentage of the sale. However, it is important to note that you are usually required to pay this up front which means if you pull the property off the market, or the sale falls through and you decide to go with a different agent, you will already have paid the commission.

Conveyancing Solicitor Fees
All homeowners must instruct a solicitor or licenced conveyancer to manage the sale of their property. An approximate fee for selling a property based on the above value would be £1000. This amount will increase with the value of a property, reaching closer to £2,000 for a property priced at £1 million.

In addition to this fee, there will be several administrative costs to cover, including a fee to send the title deeds to the buyer (around £6), the cost of money-laundering checks (£8 per person) and a fee for transferring the final sale funds (around £40).

Re-mortgaging Fees
If you choose to end your current mortgage and move to a new provider, there may be exit fees to pay. These vary but are typically between £50 and £300. You can port your existing mortgage to a new property but that too is likely to come with fees depending on whether you are borrowing the same amount, increasing or decreasing the amount you borrow. Early repayment charges may also apply and these range from 1-5% of the total loan amount.

The Cost of an Energy Performance Certificate (EPC)
You must have an EPC by law when selling your home. These are valid for 10 years, so if you haven’t moved in a while there is a good chance that this will be out of date. The certificate provides a good indication on the property’s energy usage and where areas could be improved, either by you or future owners. An EPC will cost between £60 and £120.

Removal Costs
These can vary wildly depending on the size of your property, how far you need to transport your belongings and what level of service you require, such as if you require the company to pack and unpack your belongings for you. Some companies will charge a fixed fee for the entire job; others will set an hourly rate. Giving an accurate cost is very difficult for the above reasons but as a guide, the average cost for moving from a three-bedroom house is around £800 for 50 miles to around £900 up to 150 miles.

A house buying service such as WeBuyProperty can not only help homeowners to avoid some of the higher fees listed above which are associated with selling, such as estate agent commission, and avoid the stress and cost with a failed sale.

Contact us today for a no-obligation valuation of your property.

 

 

It is one of the most common but frustrating parts about trying to buy or sell a home, and according to reports it’s on the rise…property chains are falling through.

As we know, record property sales and skyrocketing house prices have dominated the headlines, however, data released from Quick Move Now indicates that the high-pressure property market is leading to an increase in the number of property sales falling through.

Their figures suggest that more than one in five property sales fell through between April and June this year because of buyers trying to lower their initial offer after a sale had been agreed, or because they got cold feet and decided to pull out of the sale entirely.

 

In the first quarter of 2021, 12 % of failed sales were attributed to the buyer trying to lower their offer or getting cold feet. In the second quarter of the year, that figure almost doubled to 22 %. Quick Move Now says over the last quester they have also seen the race to beat the final stamp duty holiday deadline, with 11 % of sales falling through because the buyer or seller felt the sale was not progressing quickly enough to meet this deadline.

In another report, Propertymark says that agents are seeing property chains falling through due to the additional 2% stamp duty charge applicable to non-UK residents.

From 1 April 2021, homes bought in England and Northern Ireland by non-UK residents attract an additional 2% stamp duty charge on top of the rate that applies to purchases made by UK residents and this seems to be causing much confusion and having an impact on sales.

 

Overseas buyers are now being treated as non-UK residents if they were not present in the UK for at least 183 days during the 12-months before their purchase.

Many foreign buyers will fall into this category due to travel bans and, as such, are now subject to the additional 2% stamp duty charge. Case studies show many are unaware of the charge until they have progressed through a transaction.

Reports from agents, predominantly in London, say they have seen a dramatic drop in the number of overseas property buyers.

Finally, it would seem as the demand for property outpaces supply, gazumping, the term used to describe the process of a seller accepting an offer to later reject it for a higher offer from another buyer, has also returned. Meaning the original buyer has to start all over again and this can in turn impact the sale of their own property.

So to re-cap, it would seem there are a number of factors all at play which are causing property chains to collapse:-

• Buyings lowering their offer after an offer is agreed
• Buyers getting cold feet and pulling out
• Sales not progressing quickly enough to meet the stamp duty deadline
• The return of Gazumping
• Additional 2% Stamp Duty for non-UK residents

If you think your chain could be at risk because a buyer wishes to pull out, WeBuyProperty buys properties for cash and can transact in a matter of weeks. To talk through your personal circumstances and get some no-obligation advice, please contact us on:

Phone number: 0207 449 9797   Email: info@webuyproperty.com

The weather in recent months has been unpredictable to say the least. In July, the mini heatwave, which saw temperatures in many parts of the county hit 32C, was shortly followed by torrential rail causing flash floods. UK flooding and extreme weather shows that our homes need to change to withstand climate change.

It was when the water started coursing through Covent Garden and Pudding Mill’s Docklands Light Railway Stations on July 25 that people began recording the somewhat biblical scenes on their phones – torrents of water tearing down steps and submerging ticket barriers.
In total, nine stations on the London Underground had to close due to flash flooding caused by heavy rain showers, homes were evacuated, and the London Fire Brigade said they had received over 1,000 calls.

Extreme weather – from flooding to unseasonably high temperatures – is the reality of climate change. Despite successive governments kicking both the crisis in housing and the climate emergency into the long grass for years, this is no longer a distant problem for future generations. It is here right now on the doorsteps of our homes and experts warn that those homes are fatally unfit for purpose.

According to the Climate Change Committee (CCC), the Government’s official advisors, one in five UK homes already overheats. Last year, summer heatwaves caused 2,556 deaths in England. In 2015, government ministers rejected CCC’s advice to implement new heat-proofing regulations for buildings. In 2017, the CCC warned that the number of people dying from heat could triple by 2040 if nothing is done to climate-proof housing.

The Environment Agency predicts that the UK will experience a 59 per cent increase in rainfall and a rise in summer temperatures by 7.4°C by 2050, which is likely to lead to more floods, heat and subsidence issues.  According to reports, in England alone, over 570,000 homes have been built since 2016 that will not withstand future high temperatures.

 

In June this year, the CCC condemned the Government’s inaction as “absolutely illogical”.

Yet the measures that need to be taken to ensure homes are future-proofed for climate change would also improve housing standards. Simpler measures include installing thick blinds, curtains, double glazing and insulation. More complex changes would cut to the heart of how we build homes in the first place: thoughtful design which maximises shade, airflow and proper ventilation, and incorporating sustainable drainage systems and water harvesting.

 Do you have a property which overheats, floods or is just uncomfortable in extreme temperatures? Such properties can often be difficult to sell.  WeBuyProperty considers all types of properties and will provide a no obligation valuation to purchase for cash.

If you would like to find out more, contact 0207 449 9797 or info@webuyproperty.com