Marlborough News October 2013
A second hand to get on the housing ladder The second phase of the government’s
Help To Buy scheme, which aims to help more people in England get on to the property ladder, has been launched this week - one of an array of tools to get people on the first or even second rung of the ladder. The initial phase helped first-time buyers for new build homes, but this scheme is open to anyone wanting to buy a home worth up to £600,000. It cannot be used for a second home, nor can it be used with any other public funding scheme or an income only mortgage. This scheme is for owner occupiers who will not be able to sub-let their home. What it does do is enable potential homeowners who have saved a 5% deposit to buy earlier than might otherwise be the case. Treasury Minister Sajid Javid said the Help to Buy scheme, which aims to get people on the housing ladder was “for everyone” and not just young people. He said most people aspire to own their own home and added: “We want to help them with that aspiration.” The Conservative MP said around £10,000
What to look for in your estate agent!
Are all estate agents the same? Are all
medical practitioners the same? Would you ask a dentist to remove a gall bladder? Pick an agent who will work hard for YOU. What does this mean?
• •
A good agent doesn’t wait for buyers to come to him, they go out and find them A good agent gets the best proceed able price for their client, not the first offer from a buyer in a poor
Energy Bills Heating Up
An 8.2% average increase in electricity
prices has just been announced by one of the top energy suppliers, with the market expecting the other big players such as British Gas to make a move. Some commentators felt a rise in prices might be a response to Labour leader Ed
was needed 10 to 15 years ago for an average mortgage deposit, but that could be up to £40,000 today, taking potential homebuyers 25 years to save. There are actually four separate government schemes running: a Help to Buy equity loan (new build only), shared ownership through housing associations, NewBuy (new builds only) and Help to Buy mortgage guarantees (new build or existing homes). To qualify for a Help to Buy mortgage guarantee, the home you want to buy must: • • • •
Sell for £600,000 or less Not be a shared ownership or shared equity purchase Not be a second home Not rent the property out
Example: Help to Buy Equity Loan For a new build property worth £200,000 Amount Percentage Cash deposit
£10,000
5%
Equity loan
£40,000
20%
Your mortgage
£150,000
75%
Your local planning department… surely not!
But the plans were on display…”
“On display? I eventually had to go down to the cellar to find them.” “That’s the display department.” “With a flashlight.” “Ah, well, the lights had probably gone.” “So had the stairs.” “But look, you found the notice, didn’t you?” “Yes,” said Arthur, “yes I did. It was on display in the bottom of a locked filing cabinet stuck in a disused lavatory with a sign on the door saying ‘Beware of the Leopard’.” Douglas Adams, The Hitchhiker's Guide to the Galaxy
If the home in the table above sold for £210,000, you’d get £168,000 (80%, from your mortgage and the cash deposit) and pay back £42,000 on the loan (20%). You’d need to pay off your mortgage with your share of the money. Click here to read more buying position • A good agent sees the obstacles in the sale and overcomes them. For example, alerting solicitors to private water supply arrangements and bringing the parties together to resolve the unknowns. • A good agent communicates • Do you wonder what is going on? You shouldn’t have to – you should know! • Do you know how many viewings there have been and what was their outcome? • Are you able to speak to your agent when you call? • Does your agent speak to your solicitor/ mortgage broker/relevant other parties? Milliband's threat to freeze energy costs should Labour win the next election, but SSE who introduced the rise, blame the wholesale price increases over the last year. The Energy Saving Trust suggest that homeowners should check the insulation in their loft and hot water tanks, consider turning down their thermostat by only 1 degree and remember to turn off appliances lying in standby mode. All these measures could compensate to some extent for the increased costs faced by consumers this winter. Click here to read more
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Number of million pound homes increase
Lloyds TSB say the total number of sales of properties costing at least £1 million increased by 2% in 2012.
Lending up
The number of mortgage approvals
rose to a five-and-a-half year high in August, according to the Bank of England. However, analysts noted that lending volumes were still down on both pre-crisis and long-term averages by as much as 40%. Mortgage approvals rose to 62,226 in August from 60,914 the month before.
Editorial
Property of the month:
Challenging times. By all measures, the
Evening property forum Downsizing Venue 42 High Street, Marlborough, SN8 1HQ
31 High Street, Ramsbury
Period charm with quintessential old English country garden appeal U O ND FF E R ER
ingredients of recovery are there but we are not out of the woods and pain remains as earnings grow less than the rate of inflation, so we are all 1.5% poorer. In this issue of Marlborough News we look at the Help to Buy scheme. Will it encourage house building, and if not can we force the developers to do so - it's a wait and see question. A joky note on planning departments – but seriously, they must take responsibility and not always say NO. We need to help the elderly downsize out of large homes, and into purpose built communities, built with new technologies and materials, that are cheaper to keep and easier to manage. Our forum last month and the one coming up on 24th October covers these issues. Our Property of the Month is in Ramsbury – a village of choice for some. Finally – it's the Editor's view that we need to build better houses and lots of them, and difficult decisions do not get easier by delays in making them.
sold quickly. This delightful, spacious brick and flint townhouse has a pleasant, open outlook towards Holy Cross Church and offers a taste of waterside living with a 164 ft garden meandering down to the River Kennet. The spacious reception
True cost of buying a home
Please RSVP to shona.ford@smithsgore.co.uk soonest as the places are limited
Downsizing – what does it mean?
R
esearch suggests that 1 in 5 over 55’s aim to downsize over the course of the next five years. There are a variety of reasons including health, money and lifestyle. Downsizing does not mean downgrading and it can be “liberating” experience for those that choose to do so. Nor does it necessarily mean looking at retirement housing, but that is one option. The recent Demos report shows a chronic undersupply of appropriate housing for older people, who are often trapped in homes that are too big and unmanageable. A move might free up money, time and lower stress levels. Apart from these gains, specialist retirement housing often has a very beneficial effect on older people’s health, wellbeing and social networks. However the traditional view of retirement housing is that of “sheltered housing”, and public sector provision has been of a poor standard. The industry is changing this and the modern alternatives more akin to the US model are gaining traction. Changes
31 High Street is conveniently situated in the heart of this delightful downland village with the doctor’s surgery, local shop and post office a short walk away and two public houses on the doorstep. Edward Hall said: “We get things done – there are more buyers than sellers for good villages like Ramsbury”.
An excellent property, expertly priced,
Date and time Thursday 24th October 2013, 5-7 pm
Space is limited, so don’t miss this opportunity to ask your questions and get answers.
hallway with wc off, provides flexibility of use with an elegant staircase rising to the upper floor. Downstairs, the sitting room is a good size with feature wood beams across the door lintel and open fireplace. A few steps down is the snug/living room with french doors to the patio, which in turn leads to the kitchen with a range of attractive painted wooden units. Upstairs are three excellent double bedrooms and the splendid gardens with mature trees and shrubs, frame the back of the property.
Upfront costs: • • • • • • • • • • • • • • •
Deposit Mortgage set-up fees Mortgage arrangement fee Valuation fee Mortgage account fee Higher lending charge Searches Legal costs Stamp Duty Registration of title (Scotland) Survey Moving costs Estate agent fees Telegraphic transfer fee Buildings insurance fee
to planning regulations should also change to make the development of these retirement villages easier, coupled with the design of the homes themselves – parking and storage as key requirements, and the sustainable nature of the homes, making them easier and cheaper to run. Many more would downsize but there is a lack of understanding as to what a “retirement house” is and the lifestyle that it offers. Therefore the Smiths Gore Downsizing seminar aims to cover many of these points, with some examples of modern retirement options, and relocation services to make the move easier.
smithsgore.co.uk
On going Costs: • • • • • • • • • •
Mortgage Home insurance Life insurance Mortgage payment protection insurance Ground rent Service charge Council Tax Water Utilities Repair and maintenance
Phew! (Note: Not all of the above apply to all sales/purchases and the lists are not exhaustive)
And finally…
Planning for a future move of any kind,
requires a clear understanding of the current value of your house. For an up-to-date valuation or any other property-related questions, call Edward Hall on 01672 529056 or email edward.hall@smithsgore.co.uk.
We are more than just the largest rur al property managers
Click here to request a free market appraisal