the Ultimate Guide to... GETTING ON THE LADDER, THE PROPERTY MARKET AND HELP TO BUY August/ September 2018 £3.95 firsttimebuyermag.com
WIN!
STUNNING DENBY TABLEWARE WORTH £180 EVERYTHING YOU NEED TO KNOW ABOUT HELP TO BUY
WAYS TO GET ON THE LADDER
• BANK OF MUM & DAD • RENT A ROOM • BUY WITH A FRIEND
EXPERT TIPS ON HOW TO VIEW A SHOW HOME
“If you want to take advantage of Help to Buy or shared ownership – go for it!” Laura Hamilton
08>
TV presenter and property expert 9 771758 973014
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EDITOR’S LETTER
E D I T O R I A L – 020 7258 0036
Editor-in-Chief SARAH GARRETT sarahg@spmgroup.co.uk Editor LYNDA CLARK lynda@firsttimebuyermag.co.uk Editorial Assistant DAWN HARKER Creative Director RYAN BEAL Sub Editor KAY HILL Social Media DAWN HARKER Contributors DAVID BLAKE, CHLOE CAIN, RACHEL COLGAN, NANCY CONROY, KAY HILL, STEPHEN MAUNDER, LAURA DEANOSGOOD, DONNA PILCHER, KATHRYN REUCROFT, GINETTA VEDRICKAS A D V E RT I S I N G – 020 7258 0036
Director of Advertising/Exhibition Sales LYNDA CLARK
lynda@firsttimebuyermag.co.uk Special Events EILIDH MACLEOD – First Time Buyer Home Show – First Time Buyer Readers’ Awards boom@squarepegmedia.com Accounts DAVID SELF david.self@ultimateguidecompany.com Managing Director SARAH GARRETT sarahg@spmgroup.co.uk Public Relations RACHEL COLGAN
Welcome What an incredibly hot summer this is turning out to be! I know how hard it is to save for a deposit, but on pages 23-29 we have highlighted some other ways to help get on the property ladder. Buying with friends for example, as long as there is a proper legal agreement drawn up, is just one way that can help and improve your financial situation. Of course, buying with shared ownership or with Help to Buy means you only need a 5% deposit, and on pages 32-34 we have outlined exactly how the Help to Buy scheme works and also the Help to Buy: ISA which is a really positive way to save for your first home. It is always very daunting when you embark on buying your first property as there are so many different aspects to think about. On pages 66-67 there is a very useful feature on the key steps to preparing that all-important mortgage application with some excellent top tips too. For anyone looking to buy in the North West we have another Home Show on 15 September at the Lancashire County Cricket Club so do go to ftbhomeshow.com for more details and to register. It is the perfect one-stop shop to find out everything you need to know to get a foot on the property ladder. I hope you find this issue packed full of useful information that will help you buy your first home. Until next time, happy house hunting
PS As a keen football fan I have been watching the World Cup with great interest and it was amazing that England got through to the semi-finals. A massive congratulations to Gareth Southgate and the team – you did us proud! It was also wonderful to see everyone pull together and unite over “the beautiful game”.
rachel@building-relations.co.uk SUBSCRIPTIONS 020 7258 0036 SWITCHBOARD 020 7258 1777 FAX: 020 7258 1787
firsttimebuyeronline EDITOR’S PICKS…
THE ULTIMATE GUIDE COMPANY LTD, 37 IVOR PLACE, LONDON NW1 6EA All advertising copy for October/November 2018 must be received before 7 September 2018. Send all copy to: lynda@ firsttimebuyermag.co.uk The content of this publication, either in whole or in part, may not be reproduced, stored in a data retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying or otherwise, without prior permission from the publishers. Opinions expressed in First Time Buyer magazine are not necessarily those of the publishers. © The Ultimate Guide Company Ltd 2008-2018. The Ultimate Guide Company Ltd t/a First Time Buyer magazine will take no responsibility for any loss/ claim resulting from a transaction with one of our advertisers/media partners.
@firsttimebuyer
City living comes at a premium price so a more suburban setting could be a better place to look for a long-term home. Melissa Malone, Developer’s Doctor, Page 16
I don’t have a garden but I like the apartment and it has lovely views.
Danny Clarke, At home with, Page 12
Don’t be afraid to view more than once and cover all the angles as part of your decision. Sarah Butler, Spotlight on... Page 106
We’ll certainly bring our parents to view the properties as their advice is always spot on.
Tenure refers to the type of financial arrangement that the property is being sold under. Ana Elia, The Hottest Time to Buy a House, Page 52
Vanessa Ilano, House Hunter, Page 14
First Time Buyer August/September 2018
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CONTENTS
AUGUST/SEPTEMBER 2018 / ISSUE 72 / FIRSTTIMEBUYERMAG.CO.UK
What’s in… 71
For sale
74
Chelsea Bailey-Reardon and Hannah Bailey-Reardon had almost given up on the idea of buying their own property, until Chelsea had a gift of £20,000 from the Bank of Mum and they discovered they qualified for the Government’s Help to Buy scheme, which enabled them to buy a new three bedroom townhouse in Dartford, Kent.
HOMEPAGE
9 FTB Loves... A round up of our favourite hot buys.
10 Living Celebrate the summer sunshine with these bright and colourful accessories for both your home and garden.
12 At home with… Danny Clarke Gardener Danny Clarke always loved the outdoors and was a keen gardener from a very early age. He
10
co-presented The Instant Gardener on BBC1 and is now a garden landscaper and designer. He tells Lynda Clark about his fascinating life and gives some tips for first time buyer gardeners.
14 House Hunter We try and find a new home for Vanessa Ilano and Jackson Knight who are looking for somewhere near Manchester or Liverpool.
16 Developer’s doctor Melissa Malone, part of the Sales & New Business team at Riverside Home Ownership answers your property question.
FEATURED
18 The View: Laura Hamilton Laura is a well-known presenter on A Place in the Sun – Home or Away for Channel 4 and has bought and saved an old Post Office which was being closed and created Lord
4
Roberts on the Green, a coffee shop and deli. Lynda Clark discovers how it all came about.
23 Ways to get on the ladder
Group gives some great tips to follow when looking at potential properties and preparing to visit a show home or marketing suite.
Struggling to buy your first home? We highlight some ways to help those all-important finances whether it’s with the Bank of Mum & Dad, renting a room or buying with a friend – we explain how they work.
32 Demystifying Help to Buy Everything you need to know about the Help to Buy scheme and the tax-free Help to Buy: ISA.
23
52 The hottest time to buy a house Ana Elia, Senior Sales Manager at SiteSales Property
First Time Buyer August/September 2018
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CONTENTS LAURA HAMILTON, PAGE 18
I WANTED TO BECOME A SUB-POSTMISTRESS AND OPEN A DELI AND COFFEE SHOP, PLUS DEVELOP THE HOUSE AND FLAT
18 Laura Hamilton REGULARS
to get a foot on the ladder. Kay Hill looks at the relative costs and asks if it is still possible to have it all!
86 Market Ginetta Vedrickas discovers if Build to Rent is the answer to the housing shortage and the difficulties of buying your first home.
FOR SALE
42 Hotspot
91 Buyer’s Guide
We look at Southall as a fascinating place to live.
Check out FTB’s Buyer’s Guide, which walks you through the property process.
96 The lease extension process explained Bill Dhariwal, Managing Director and Maxwell Green, solicitor, at Lawcomm Solicitors explain the lease extension process.
73 The best FTB properties.
79
Competition Win a stunning range of Denby Elements tableware worth £180.
66 How to prepare your first mortgage application Which? mortgages expert Stephen Maunder explains the key steps you will need to take when preparing your first mortgage application.
80 First home, first meal Head chef John Doyle, at The Lost & Found Leeds Club, creates a delicious recipe for charred tuna steak with pickled vegetables, sweet chilli and soy dressing and lime. We test out the best BBQ food from the UK’s leading supermarkets.
99 Directory Where and how to contact your Help to Buy Agents or providers.
106 Spotlight on... We talk to some of the key players in the property world to get their views and ideas of how to get on the ladder. In this issue we speak to Sarah Butler, Sales and Marketing Director, Notting Hill Genesis.
82 Mortgage Clinic David Blake of Which? Mortgage Advisers answers your mortgage related questions.
84 Finance Many ftbs are putting marriage and having a family on hold as they try
First Time Buyer August/September 2018
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LETTERS
Mailbox ENERGY EFFICIENCY I am a first time buyer and I have started searching for my dream home. I have been told about the Energy Performance Certificate but I am not entirely sure what it is. Is this something I should know more about? Dale Lyster FTB: An Energy Performance Certificate (EPC) is very important when buying a home as it gives a property an energy efficiency rating from A (most efficient) to G (least efficient) and is valid for 10 years. A higher EPC rating shows that the property has good insulation and glazing, which will help to keep the property cool in the summer and warm in the winter. In fact, some mortgage providers are already offering mortgages specifically for properties with high EPC ratings. So, it is very important that you look at the EPC carefully as it will give you all the information you need about the home’s energy use and typical energy costs and will also give you recommendations about how to reduce energy use and save money. For more information go to epcregister.com This issue’s star letter wins a set of Judge double walled glasses worth £15. The collection has a thermally insulated air pocket to keep hot drinks hotter for longer while the outside of the glass remains cool to the touch. The outer glass will stay condensation-free and is made from superior scratch-resistant borosilicate glass. Each piece is individually mouth-blown by skilled artisan glass makers, making every glass unique. judgecookware.co.uk 0117 940 0000
DEALING WITH ESTATE AGENTS I am about to start looking for my first property, and as well as looking on the internet I intend to visit some estate agents in the local area. Apart from giving me details of suitable homes, is there anything else they should be helping me with? Maddie Baker FTB: It is always advisable to visit as many estate agents as you can. Visit them in their offices and try to get to know them, as it will ultimately help you if they are on your side. Show them you are not
wasting their time by telling them you have a clear idea of what sort of home you are looking for. When you go on viewings, always ask direct questions, in particular, about whether the property has had any major works done to it. The agent won’t always point out any defects, as he is trying to make a sale, but he will be obliged to answer your questions. Only deal with estate agents who belong to the Ombudsman Scheme, National Association of Estate Agents (NAEA) or the Royal Institution of Chartered Surveyors (RICS).
WRITE TO US! Please send us your questions, comments and suggestions concerning property, or the articles in First Time Buyer magazine. First Time Buyer Letters, 37 Ivor Place, London, NW1 6EA lynda@firsttimebuyermag.co.uk
THE RIGHT SOLICITOR I will have to find a solicitor to help me with the conveyancing of my first property. However, I have heard several horror stories from friends and family that solicitors in general don’t have a good reputation, so I am a little nervous. Do you have any advice about how to go about finding a good, reliable solicitor? Do I need one at all? Marcia Browne FTB: Finding a good solicitor is important, particularly as a first time buyer. You can choose to do the conveyancing yourself, but without the legal expertise this can be risky. The first step in finding a solicitor is word of mouth. Ask those who know you have bought properties if they can recommend a firm. You can also check the Law Society’s regional directory for local solicitors. If you have used a solicitor before, you can contact them and see if they have a conveyancing solicitors or know of a good firm. Alternatively, you can hire a licenced conveyancer rather than a solicitor, although check that they are registered with the Council for Licenced Conveyancers.
FIXED-RATE I am about to buy a small terraced house, which is exactly what I have been looking for. As a first time buyer, I’m not sure of what type of mortgage to go for. My parents have advised that a fixed-rate mortgage would be the best option for me, but I wondered if you had any further thoughts. I am single and in a secure job with a regular salary, but I will have to buy furniture for my new home, which all adds up! Ben Knight
FTB: A fixed-rate mortgage means that the rate will stay at the same rate for a set time, which is usually between two and five years, whatever happens to the base rate, which is set by the Bank of England. After that time, the rate reverts to the lender’s standard variable rate. You can usually renegotiate the rate with your lender. If the variable rate falls below what you are paying during that set period, you can lose out, but if it rises above the fixed rate then it works in your favour. A fixed-rate is probably the best option for you as you will know exactly how much your mortgage will cost for a set time, and you can then budget accordingly in order to furnish your home.
VISIT OUR WEBSITE For everything you need to know about buying for the first time, go to firsttimebuyermag.com
First Time Buyer August/September 2018
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FTB LOVES
What’s hot in the shops? Always on the lookout for exciting and innovative new ideas and accessories that will help create the perfect space, here are our favourites this issue
F S U M M ER O S Y A D Y Z A L It’s time to kick back and make the most of the lovely summer days and long evenings. This Curacao sunlounge r from B&Q is ideal for relaxing in the gard en or on the patio and at just £12 it won’t break the bank either. Foldable for easy storage, the chair is light to carry, making it perfect for camping or taking to the beach. It fully reclines too, so just the thing for taking an afternoon snooze! Curacao sun lounger, £12, B&Q diy.com
privacy.. f o h c u o At
.
Barbecuin made easy!g
perties being built for Most of the new pro apartments in new first time buyers are ity have beautiful jor ma the d builds an een balcony privacy scr A balconies. This IKE e, tsid ou sit to g se wantin is perfect for all tho them. at k loo rld wo the relax and not have cy screen though, it It’s not only a priva ry sun and wind – eve also shields from the one! balcony should have een, £9; IKEA Balcony privacy scr ikea.com
Mirror Mirror or... This unit is so versatile and a guaranteed space saver as it is actually three things in one! A mirror, clothes stand and a holder for all those last-minute things you forget as you’re dashing out the door. Subtly hiding your jackets or coats, this is a very stylish addition to any hallway or bedroom for those last-minute outfit checks! Valet stand with mirror, £85, IKEA ikea.com
A revolution in ba rbecue technology, this Co bb creation has a fantastic sy stem where you can roast, co ok and smoke food wherever an d whenever you want. All you need is 8-10 charcoal br iquettes for three hours of co oking time. Alternatively, there’ s a fastheating cobble sto ne that will give you up to tw o hours of cooking time, an d it heats up in a quick seven minutes. It’s faster than your co nventional barbecue, keeping maximum flavour with no ch arring or fat dripping flare-ups . The base stays cool, and at 3.8kg it’s light enough to transpo rt to wherever you want. As a bo nus, it’s also dishwasher safe. A great bit of kit to bring out ye ar after year. Cobb BBQ grill & carry bag, £109.99, Lakeland lakeland.co.uk
First Time Buyer August/September 2018
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Homepage LIVING
A taste of the tropics Bring the summer sun into your new home with colourful accessories! Sunny yellows, hot pinks and vibrant oranges add warmth and brightness – perfect for indoors and out Set of three fruit bowls, £15, Debenhams
benhams
£1r53
12,
fo
Yellow planter, £14, Sainsbury’s
Poolside pineapple stopper, £9.75, John Lewis
tas
Set of three Havana printed tins, £10, Sainsbury’s
e fies Fantastic for outsid
Large ceramic vase, £12.50, Sainsbury’s C ONTACTS » Debenhams debenhams.com » George Home george.com » Homesense homesense.com » JD Williams jdwilliams.co.uk » John Lewis johnlewis.com » Primark primark.com » Sainsbury’s sainsburys.com
10
Green, yellow and pink cushions, £6 each; Fiesta cushion, £20; wire table, £35; Fiesta family cooler, £8; set of eight ice cream bowls, £5; cactus tealight holder, £5, Sainbury’s
First Time Buyer August/September 2018
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Homepage LIVING
£10
Soak up the sunshine
den
gar Relax in the
Flamingo neon light, £10, George Home
Reusable ice cubes, £1.50, Primark
Porto Bistro mint garden table and chairs, £229; palm print cushions, £25; lemon poolside rug, £50, John Lewis
Fiesta platter, £4, Sainsbury’s
Tea light holder, £16, Debenhams
£10 Set of four Poolside Vibes plates, £14, John Lewis
Parrot cushion, £10, JD Williams
Lemon clock, £5.99, Homesense
First Time Buyer August/September 2018
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Homepage LIVING
At home with:
Danny Clarke
Gardener Danny is the Oxford-born son of a British Army officer who spent his formative years moving around the world. As a keen sportsman, Danny had always loved the outdoors and was a keen gardener. He co-presented The Instant Gardener on BBC1 and is now in great demand as a garden landscaper and designer. He talks to Lynda Clark about how it all began and gives some top tips for first time buyer gardeners
“I HAD NO FORMAL TRAINING SO I DECIDED TO GO TO HORTICULTURAL COLLEGE. IT CHANGED MY LIFE AND NOW I DESIGN AND BUILD GARDENS AND IT’S HONESTLY NOT A JOB BUT A WAY OF LIFE!” 12
FTB: How did your career begin? DC: My father was in the army so we were constantly travelling around the world. I went to 13 different secondary schools and we would stay in one place between three months and two years and then move on again. It was a different sort of life, but it was great and it certainly broadened my mind and encouraged me to make friendships quickly. After I left school I lived at home and I became a filing clerk at a shipping company in London and also worked at Sainsbury’s, but it was incredibly boring. I always loved being outside and had a huge interest in gardens from a very early age. I remember as a boy being sent out to the garden to tidy it up and I really enjoyed it as gardens were my passion. I played a lot of sport so I was never in, but being out and near to nature was perfect for me. I have
First Time Buyer August/September 2018
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Homepage LIVING
memories of loving roses and was once told to find a four-leaf clover which would bring me luck – sadly I’m still looking! FTB: What happened next? DC: I then got into sales and started a sales company. The business originally went very well but then we started to struggle. A friend told me that somebody they knew was looking for a gardener to work one day a week and would I like to meet them. I ended up working for her for three years and she was incredible and a fountain of knowledge about anything to do with gardens. During the time I worked with her I was asked to do other people’s gardens too, but I had no formal training so I decided to go to Horticultural College. It changed my life and now I design and build gardens and it’s honestly not a job but a way of life! FTB: What about your own garden? DC: When I had my first garden I became completely obsessed and I really wanted to have the perfect lawn. I mowed it every morning and then again in the evening and it was pretty spectacular, but I eventually decided there was more to life than mowing a lawn! If you want to keep the grass green and the weeds at bay then mow your lawn regularly and I promise it will look perfect! I now live in a rented apartment as my relationship broke up and we had to sell the house and the show garden which went with it! I don’t have a garden at the moment but I like the apartment and it has lovely views and I am near Greenwich park as well. I have been here for over three years but I intend to buy another place of my own soon. FTB: What are your favourite plants and flowers? DC: I love tree ferns as they are very architectural and when they are unfurling
“BEFORE YOU BUY A PLACE LOOK AT THE GARDEN AND SEE IF THERE ARE ANY PERNICIOUS WEEDS WHICH BELIEVE ME YOU WILL NEVER BE ABLE TO GET RID OF – THERE ARE SO MANY POTENTIAL PROBLEMS WITH IT” they look just like gorilla knuckles! I also love Agapanthus, Geub and bamboo and grasses as they give the space movement and sound which creates a very restful and soothing atmosphere. FTB: How did you get into television? DC: I decided to call myself The Black Gardener as there are not many black gardeners. I got the idea from somebody who called themselves The Black Farmer. Anyway, I had the name on the back of my Land Rover and it caused quite a stir and I got a lot of work. Then one day I got a random email from a production company who said they had an idea for a gardening show but had no presenter and would I be interested in going for a screen test? I nearly deleted the email as I thought it was a hoax or a scam. But I did get in touch and they were looking for a black gardener and had Googled it and my website had popped up. They started by asking if I would do a promo film which they sent to the BBC which liked it, and then they asked if I could do a pilot film, but a couple of days later they decided to forget the pilot and go straight to filming the series. I presented The Instant Gardener alongside Helen Skelton and we went up and down the country helping people and their gardens which were in desperate need of some TLC! We transformed the spaces
and gave the viewers some really useful tips on how they too could revamp their gardens. We did 25 programmes over two series and it was great fun. FTB: What are your plans for the future? DC: I have been on quite a few different programmes like Celebrity Mastermind and have presented the RHS Chelsea Flower Show and the RHS Flower Show at Tatton Park. I have quite a few ideas in the pipeline but at the moment it is just a question of watch this space! FTB: What advice do you have for first time gardeners? DC: Before you buy a place look at the garden and see if there are any pernicious weeds which believe me you will never be able to get rid of – there are so many potential problems with it, so look for Horsetail, Bindweed and Ground Elder. I think it is a great idea to get a professional gardener in for a couple of hours who will spot any potential problems. Also look at the neighbour’s garden and see what impact that might have on your space – is it a scruffy garden? Is it maintained? What flowers, shrubs and plants are growing there? Thinking ahead will definitely help in the long-run. theblackgardener.co.uk
First Time Buyer August/September 2018
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Homepage FIRST RUNG
The
HOUSE HUNTER
What we found… WELL CONNECTED
GREAT AMENITIES FROM £56,000*
Park View, Manchester
Bakewell Gardens, Liverpool
FROM £ TBC*
This month FTB goes on the hunt with Vanessa and Jackson who are after a home with at least two bedrooms within a 50-minute drive of Manchester or Liverpool city centres
PROFILE
Names Vanessa Ilano, 32, Jackson Knight, 34 Occupations Product designer, freelance medical writer Maximum budget £250,000 Requirements A house with at least two bedrooms and a garden in a quiet residential area, with parking and close to shops and amenities
What they wanted… Vanessa and I are looking to buy our first property together and find a place we can truly call home. We have been living together for almost five years and are planning to start a family in the next year or so. We live in a rental property in a lovely area, but it really needs doing up and there’s no garden, and we’re really keen to move. We’ve been looking at Manchester, as that is where Vanessa works. However, her company has said that she would be able to transfer to its Liverpool offices if she needs to, which completely opens up our search area. We’d like at least two bedrooms as well as a garden or a terrace area, as we miss having outdoor space. We’d also ideally prefer to be in a quiet residential area that’s a short drive or walk from shops. We both drive, so having parking spaces or a garage would be ideal. We have a budget of £250,000.”
There are 44 two and three bedroom homes available at this new development in Gorton, just three miles east of Manchester city centre. This up-and-coming part of town has great amenities and transport links into the city, as well as easy access to the beautiful Peak District. The homes here are perfect for growing families and feature fully fitted kitchens with integrated appliances, spacious living spaces, utility rooms and private gardens. Gorton station, which offers services to Manchester in eight minutes, is a short walk away.
The 16 new homes at Bakewell Gardens are located on a quiet residential street in Belle Vale, within moments of a shopping centre and great facilities. There are plenty of green spaces that can be reached in just minutes by foot, while Liverpool city centre is around 30 minutes away by public transport. The single storey, two bedroom homes are bright and spacious, with wellthought-out living areas, and en suite bathrooms from the master bedrooms. All of the homes have front and rear gardens, as well as off-street parking.
geckohomes.co.uk
riversidehomeownership.org.uk
*Based on a 40% share of the full
*Available for private sale and shared ownership
market value of £140,000
What they thought… Gorton isn’t too far from where we live now, and we’ve driven through it many times. It seems like a really nice area and getting into Manchester from here would take no time at all. The properties are nicely designed, and we would be able to afford a three bedroom house, which is exciting. We like that it’s so close to lots of parks, which would be good for us as we love getting out and about, and really handy if we do have children.”
This looks like a really great location – it’s close to Liverpool, but far enough away to make sure we can retreat from city life. The homes here look lovely, and are quite unusual. We love that there’s a front and back garden – gardening is something that we’ve always wanted to get into, and I just know we’d make the most of the space. It’s also so close to things like supermarkets, which would make it super easy for everyday life.”
14 First Time Buyer August/September 2018
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Homepage FIRST RUNG
WILD CARD Westminster Place, Chester
HISTORIC LOCATION FROM £279,995
Orleans House, Liverpool
FROM £163,000
First choice! FAMILY LIFE ester Arkwright Place, Manch on the doorstep nd kla par of es acr 40 With
Just a few homes remain available at this popular new development that lies three miles south east of Chester, surrounded by open countryside. The remaining properties include a three bedroom detached house and four bedroom terrace house. The homes are bright and spacious, with separate kitchen and living rooms, with doors opening to a rear garden. All of the homes have private parking, with garages to some of the properties. Thriving Chester can be reached in 10 minutes by car, with Liverpool around a 40-minute drive.
An historic Grade II*-listed building in the heart of Liverpool’s bustling commercial district has been transformed into 71 new studio, one, two and three bedroom homes. They have been thoughtfully designed, with bright, spacious living areas, fitted kitchens with integrated appliances, tiled bathrooms and design features that acknowledge its former warehouse past. Bars, shops and restaurants are nearby, while several rail stations are a short walk away. The developer, Forty/8, is offering to cover the first year’s mortgage.
elan-homes.co.uk
orleanshouseliverpool.com
I have quite a bit of family in Chester and have always enjoyed visiting – it’s a great city, with really beautiful countryside. This looks like a lovely location and we really like the design inside and out. I especially like the idea of having a garage – I’m sure Vanessa would like to park her beloved Mini in it, but I’d really like to have space for a workshop or DIY projects. It is over our budget, but it’s great to see what’s out there.”
Liverpool is a cool city, and we do like the idea of moving there. Though it’s a great location and close to all the action, I think we’d still be able to get some peace and quiet, too. There are so many local amenities, we’d never be short of things to do, and there’s plenty of interesting coastline to explore on days out. The three bedroom apartments look lovely and spacious, but I think we would miss having some outdoor space.”
FROM £159,950
ester’s pment just outside Manch This popular new develo , three two new 1 13 to e hom be thriving centre will soon beautifully . The homes have been and four bedroom houses the on m roo g kitchen and livin designed, with separate wellthe and , WC irs h a downsta ground floor, along wit access their can nts ide Res . oor fl first sized bedrooms on the Gorton the spacious living areas. private rear gardens from fect for per is and tre into the city cen is well located for travel rs. doo out at the gre families looking to explore plumlife.co.uk
THE NEXT STEP
“We like the area, and love the homes, so we’ve registered our interest with the developer, and just need to get a mortgage offer sorted. I think the next stage will be getting our families along to take a look at the area and we’ll certainly bring our parents to view the properties as their advice is always spot on.”
We absolutely love the look of these homes. Not only are they in a great location and really well designed, but we could also afford a three bedroom house here. Having that extra bedroom means that we know we could settle here for the foreseeable future, as I think if we had two bedrooms we know we’d eventually run out of space quicker when we start a family. It’s also so great that there’s an en suite from the master bedroom as well as a family bathroom. We do love those French doors opening to the garden, too, and can picture throwing the doors open in the summer and letting the sunshine flood in.”
First Time Buyer August/September 2018
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ADVICE
Melissa Malone is part of the Sales & New Business team at Riverside Home Ownership, the specialist affordable home ownership and leasehold management division of The Riverside Group. Celebrating its 90th birthday this year, Riverside manages more than 52,000 homes across England and Scotland, making it one of the UK’s largest providers of affordable housing and care and support services. Riverside Home Ownership manages over 4,500 shared ownership and leasehold properties and builds hundreds of new affordable homes for sale each year. Melissa has specialised in housing for five years, and as a shared ownership expert she helps homebuyers through the whole process of finding, financing and purchasing a new, affordable home
Q
I moved from London to Liverpool for university and have been here since graduating a few years ago. I rent a flat with my partner in the city centre and have a full time job with a national company. I travel a lot to visit clients and work from home a few days each week. We’re keen to set down some roots, but only have £5,000 saved up for a deposit so far. We are both able to relocate but we love it here. With several options, where should we start?
A
I can understand why love blossomed in Liverpool! The whole region has such a rich history and cosmopolitan culture, it’s no wonder you and your partner are thinking twice before moving elsewhere. You’ll often hear “location, location, location” so that really should be your first decision, particularly if you’re looking to settle down. City living comes at a premium price, so a more suburban setting could be a better place to look for a long term home. You still wouldn’t be far from town, you’re sure to have more space to work in, and your travel could be easier too. As you have some flexibility but budget is a big factor, have you considered shared ownership? Housing associations such as Riverside are developing thousands of new build homes each year around the country, specifically to help people get on
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to the property ladder. You buy the share you can afford, 50% for example, and pay a discounted rent each month on the part you don’t own. It’s cheaper per month than purchasing outright and you can buy more shares as and when you want, eventually owning your house outright in the future. Most major lenders offer shared ownership mortgages, and some go up to 95% of the share. Depending on your circumstances, your £5,000 deposit could be enough to secure borrowing on a share up to £100,000. With property prices in the North West among the most affordable in the country, you could be able to buy sooner than you think! The quality of shared ownership homes is often even higher than regular properties, which most people don’t realise, and “extras” such as carpets and garden turf are sometimes included as standard. Shared ownership is backed by the Government and has been around even longer than the Help to Buy schemes you have probably heard of. Look at helptobuy.gov.uk and visit the agent for the North West, or any other area of England. There you’ll find details of shared ownership homes from all the housing associations building new, affordable properties, plus a whole range of useful supporting information.
Melissa Malone, Sales & New Business team
Copper Bro Helsby, Chesok hire
Riverside Home Ownership has started work on a development of 69 affordable two, three and four bedroom homes in the beautiful Cheshire village of Helsby. Copper Brook will offer a selection of high specification family homes to help first time buyers on to the property ladder through shared ownership. Prices will start in the region of £40,000 for a 25% share (based on a market value of £160,000), plus a discounted monthly rent. Set in picturesque, semi-rural surroundings, Helsby has excellent local shopping and leisure facilities on the doorstep. The nearby M56 motorway also offers easy access to Liverpool, Chester and Manchester which are all within an hour by car. The wider area includes the opportunity to pick up some bargains at the Cheshire Oaks Outlet Village in Ellesmere Port, and just a short hop across the border is the stunning scenery of North Wales. Life in the village itself and nearby Frodsham is buzzing with contemporary eateries, cosy bars, and a vast range of social societies from choirs to cake clubs. Riverside will be opening the doors of the Copper Brook show home in January next year, with properties ready to move into from Spring 2019. For more information or to register for updates, call 0345 112 8800 or visit riversidehomeownership.org.uk
First Time Buyer August/September June/July 2018 2018
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THE VIEW
Girl of many talents
It has been quite a year for Laura Hamilton. She has been very busy filming A Place in the Sun – Home or Away? for Channel 4 and bought and saved an old Post Office which was being closed and created Lord Roberts on the Green, a coffee shop and deli. Lynda Clark caught up with her to hear all about it
Photos © Andy Newbold Laura Hamilton is super-busy, but seems to thrive on juggling her frantic lifestyle – rushing around the world filming A Place in the Sun – Home or Away?, running her thriving coffee shop, renovating some properties and looking after Rocco and Tahlia her two gorgeous children. Most people couldn’t even imagine fitting all of this in, but Laura is pretty special and has packed so much into her life. She is a real property developer and she was only 19 when she bought her first house and has bought and sold many places ever since. Her career has seen her working both in front of and behind the cameras and she has set herself some gruelling challenges. Originally from Kent, Laura’s mother worked in a school and her father for BT. “I was always into something when I was a child. I loved dancing and I had a lot of hobbies, which kept me very busy. In fact, I did so many activities at school my teachers told me I was going to burn myself out, but I’m still very determined and life is too short to sit still.” She moved to Dartford Grammar school to take her A levels and said, “The school was far more academic than my previous one and they expected everyone to do well and go on to university. The work didn’t worry me, but I was unsure whether I really wanted to go to university, as I just didn’t feel it was for me. I knew I wanted to go into television, so I wrote to loads of TV channels and was eventually offered a job as a runner on Channel 4, before I actually took my exams. I decided to defer my university course and take the job, which turned out to be the best decision I could have ever made. After a year, I was promoted to assistant floor manager and it was a great experience.” While Laura was still at school, she had always taken on part-time work. “As soon as I was 16 and could take a job, I went to work at Peter Jones in Sloane Square and then, when Bluewater opened, I moved to John Lewis as it was a lot nearer to home. I always saved my money with the intention of buying a car and, when I got the job at Channel 4, I still saved as much as I could. I had a wonderful life at home with my parents but I had a real desire to buy somewhere of my own. My friends were all living the typical student life: in debt, going out every night, drinking and having fun. So, it was a scary decision to make.” Laura had left Channel 4 at this time and was working for a shopping channel. “I only had three months of pay slips but I managed to get a mortgage and bought my first apartment for £100,000. My deposit was £5,500 and I had saved for my legal fees. My mum gave me a washing machine and my dad bought me the carpets, but otherwise I did it entirely on my own! It was in a great location, less than two minutes from the station and had a lovely garden, but it was a real 1970s grannies flat. Even so, it was mine!”
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THE VIEW
"I KNOW A LOT OF PEOPLE BUY WITH FRIENDS OR FAMILY BUT IT IS VERY IMPORTANT TO GET A PROPER LEGAL CONTRACT DRAWN UP FIRST SO EVERYONE IS PROTECTED"
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"I ALWAYS SAVED MY MONEY WITH THE INTENTION OF BUYING A CAR AND, WHEN I GOT THE JOB AT CHANNEL 4, I STILL SAVED AS MUCH AS I COULD. I HAD A WONDERFUL LIFE AT HOME WITH MY PARENTS BUT I HAD A REAL DESIRE TO BUY SOMEWHERE OF MY OWN" 20
Then the worst happened – the shopping channel that Laura was working for went bust and she lost her job. “There I was with no job, a mortgage and a flat to maintain. My only option was to rent it out and move back in with my parents. I kept it for three years and eventually sold it to my brother for quite a discounted price.” Laura then decided to go freelance and, during this time, she bought a house in Forest Hill in south east London. “It was a three bedroom, end-terrace Victorian house and I bought it for £270,000, before spending another £30,000 on it. Unfortunately, when I came to sell it, it was at the time of the property crash but, even though I only got £365,000, I still made a profit.” She then bought a three bedroom semi for £250,000, opposite her parents’ home, renovated it and sold it less than a year later for £385,000. It was at this point that Laura met her future husband, Alex, and eventually moved in with him. They bought a home together, which they loved, but they had always wanted to buy a home either on the Webb Estate or Woodcote Park Estate, in Purley. “My husband grew up in Purley and he always wanted to buy a home on either of these estates, as they are in a premier location. We had to make a decision whether we would buy an in-between home until we could find our dream one, but we had to weight this up with the cost of Stamp Duty. We started to look around, but as I was heavily pregnant it wasn't the best time. Then, out of the blue, a local agent called up to say there was a house which he thought we would like, but they wanted a quick sale. The house hadn’t been lived in for a year and there was another couple and two developers looking at it. It was crazy, as we loved the house, even though it needed a lot of work, plus I was two days past my due date so we were cutting it really fine. We obviously wanted to get a full structural survey before we went ahead! In the end, we completed in three weeks, but couldn’t move in as we needed to get so much work done. We then put our furniture in storage and got in the builders.” Laura project managed the work, even though she had just had her new baby son and was still working hard. “We created a fourth bedroom and reconfigured the landing, and created a sitting room and games room in what was originally the garage. This is our forever home, as it is everything we ever dreamed of. I travel so much it has been hard to project manage everything but we got there in the end.” Having finished the house, Laura discovered that the local Post Office that she often used was going to close. “The tenants who ran the Post Office told me that the owners were going to sell the
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"GETTING A DEPOSIT TOGETHER IS TOUGH, SO IF YOUR PARENTS ARE WILLING FOR YOU TO LIVE WITH THEM WHILE YOU SAVE THEN DON’T BE TOO PROUD TO ACCEPT THE OFFER AS RENTING IS DEAD MONEY!" building and they would be homeless. They had decided their best option was to move abroad and asked if I could help them find a home in Portugal. It never crossed my mind what the outcome to the story might be – I just thought I was helping them and eventually negotiated a good deal on a property for them. Then there was a meeting to announce to the local community that the Post Office was closing and everyone was shocked. They all wanted to keep it open and even tried to club together and buy it. The problem was it wasn’t just the Post Office for sale, there was also the potential to create a two bedroom apartment and a three bedroom semi-detached house – it was a big project! I was so upset that I went home from the meeting and told Alex, my husband, that I wanted to sit the exams to become a sub-postmistress and open a deli and coffee shop plus develop the house and flat. He thought I was completely mad and as this was a commercial renovation I knew I was really out of my comfort zone. “The owners knew who I was from A Place in the Sun and when I showed them my proposals they loved it. After speedy negotiations it was ours in just three weeks and then the hard work began. There are so many rules and regulations when you open a shop selling food, especially with health and safety, so that was a big learning curve. Eventually we opened and called it Lord Roberts on the Green. It has been a huge success and we now have 27 part-time staff and are open seven days a week. We have such a variety to offer and we do a lot of vegan and gluten-free food as well. We also raise money for both The Children’s Trust Tadworth and Pink Ribbon Breast Cancer Care. I am really proud of what Alex and I have been able to do for the community. I project managed the renovations of the house and flat and those properties are both on the market at the moment.” “I have now completed 16 renovations in all. Each one has been a challenge but great fun at the same time. Sadly, the Post Office isn’t making a profit so we are probably going to have to close in September. It’s a shame but we had to make a decision based on the business – it doesn’t break even. The
coffee shop and deli has been financially supporting the Post Office for a long time and now we can expand and move forward. We are very much at the heart of the community which is lovely.” Laura is still flying around the world filming A Place in the Sun and until now her two children have always accompanied her. “Rocco starts school in September and Tahlia will be going to nursery, so it will be a whole new routine. They will still travel with me in the school holidays though.” When it comes to advice for first time buyers, Laura is a true expert. “I know a lot of people buy with friends or family but it is very important to get a proper legal contract drawn up first so everyone is protected. Getting a deposit together is tough, so if your parents are willing for you to live with them while you save then don’t be too proud to accept the offer as renting is dead money! If you want to live in a particular area and it is too expensive then think again and look in a different location where there are cheaper options. You can buy a place and rent it out until you can afford to buy in the place you really want. Look in an up-and-coming area or a university town where there are a lot of people who want to rent. It still means you have a foot on the ladder and it makes a lot of sense. Finally, if you need to take advantage of one of the Government schemes like Help to Buy or shared ownership then go for it. Laura Hamilton presents A Place in The Sun on Channel 4, alongside running her local coffee shop, deli and Post Office, Lord Roberts on The Green. lordrobertsonthegreen.com laurahamiltonofficial.com
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BUYING WITH FRIENDS
RENT A ROOM
BANK OF MUM AND DAD
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Many first time buyers find it impossible to raise a deposit or get a mortgage on their own, so more and more people are choosing to team up with friends and buy a property together. We look at the pros and cons “I will have to live with my parents or rent for years and years as I can’t possibly save enough for a deposit on my own.” Sound familiar? This is the plight of many first time buyers who feel stuck in a trap where they can’t save enough for a deposit or, if they do, they find getting a mortgage very difficult. For this reason, buying with a friend is an option that many ftbs are turning to. But it’s not something that can be decided over a quick drink in the pub after work – it’s a big step and there are a lot of questions to be asked and legal advice to be got before signing on the dotted line. If you buy with a friend, it’s obviously very important that you are both sure you are happy to live together and feel confident that you both have the same ideas on the practicalities of living under the same roof. Once you have established this, the first step before going any further is to take legal advice and make sure you have all the correct legal documents drawn up.
GETTING THE LEGALS IN PLACE You can own a property as tenants in common, which means that each person owns a set share of the property. This could be equal shares or, if one person is contributing more than the other, they will own more. This will also cover any problems
arising from the death of one of the owners as their share will be passed on to whoever they choose to specify in their will. A solicitor should also draw up a deed of trust, which sets out the equity that each owner is entitled to if the property is eventually sold. The share will depend on how much money each person has put in to the property, either as a deposit or in the form of mortgage payments. A cohabitation agreement should also be drawn up and should include all the eventualities that could arise: for instance, if one person wants to move out and sell up, wants their boyfriend or girlfriend to move in, wants to rent their room out, or if one person is unable to pay their share of the mortgage and bills.
SORTING OUT THE FINANCES When two friends buy together, there is more financial clout and you can share the amount needed for a deposit, the mortgage
TOGETHER YOU WILL BE SHARING THE COST OF:
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The deposit The transaction costs (legal fees, survey costs, Stamp Duty if applicable) Mortgage payments and arrangement fees Household bills Maintenance, repairs and decoration expenses
payments and bills. Many mortgage lenders will consider lending to friends, but they will differ in how they work out how much you can borrow, so it is always advisable to shop around and get advice from a mortgage broker. If more than one person is offered a mortgage, it will be on the basis that the applicants are ‘jointly and severally liable’ which simply means that each person is liable to repay the entire mortgage if the others are unable or unwilling to pay. Do ensure that you are happy with this before going ahead. Set up a joint bank account to pay the mortgage and shared household bills. It will help you to keep track of expenses. Make an inventory of shared and individually owned items, keep it up to date in case of a change in circumstances and ensure that you both agree with what is listed in it.
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CASE STUDY
EXPERT COMMENT Buying a property with a friend is a popular option for many taking their first step on the property ladder. If you are considering buying with a friend then there are legal aspects you should consider before deciding if this is right for you, such as: What deposit and initial contributions are you both making? Will the mortgage/outgoings be split equally? What happens when you wish to sell the property or if only one of you wishes to sell? What happens if someone dies (morbid yes, but it must be considered)? What happens if you fall out? How are future price increases shared? When you buy a property with
University friends Amrit and Kim bought their first home together through L&Q’s shared ownership scheme and bought a 55% share in a two bedroom apartment in Bermondsey. Having looked at buying a shared ownership home separately they soon realised they would be able to afford more together. Both 26, marketing executive Amrit and Kim who is an office manager met at university and were in the same dorm rooms. Amrit said, ”If you think about when you are younger, and you think about moving to a big city, you imagine a time in your life when you will live with a friend, and this is exactly what we’ve been doing. Kim came to London about 10 years ago and I followed a couple of years later.” They fell in love with the apartment when they saw it and just couldn’t believe their luck. Amrit continued, “We were like 'wow this is so nice' and it was brand new. We never thought we would ever be able to buy something like it. We booked an appointment just to have a look around and then we suddenly started to realise that we could actually afford it. Our friends joke that we are like a couple! It’s just about having an open dialogue.” Kim added, “If anything made us want to sell, we have options as one of us could rent out the room, or we could sell our share through L&Q. It’s a real money saver to split bills, house insurance, boiler cover – all these things that when you are renting you don’t really have to think about. For us, it was quite a personal achievement as we do actually own it!” lqpricedin.co.uk
another person you hold the property as either "joint tenants" or "tenants in common" and it is important you take advice from a specialist conveyancing lawyer who will be able to explain the difference to you and the options available to you. In most cases of buying with a friend your lawyer will advise you to hold the property as tenants in common (where you can own different shares and the property does not pass to the survivor in the event of death) and may recommend you enter into a Declaration of Trust to reflect your ownership wishes and to address the questions above. I would strongly recommend you discuss these points with your cobuyer friend, and instruct your lawyer accordingly, before you actually make the final commitment of buying together, as while this may seem like
THINGS TO CONSIDER It is very important to lay down some simple house rules from the start. Decide what the rules are regarding boyfriends and girlfriends staying over. Think about pets, smoking, and the consequences of undesirable behaviour. It is even worth making a rota for doing household chores on a weekly or monthly basis. Talking about finances can often be difficult, especially if you are on significantly different incomes.
If you are buying together then you have to be prepared to be honest about all aspects of your finances. Be aware that once you link together on a mortgage you are also linking your credit profiles. So, if there are any negative points on either of your credit scores they will also reflect on the other person too. If there are any disputes, it is far better to discuss the problems and try to come to a compromise. But do make sure that you know all your rights and obligations in the partnership.
a good idea (and often proves to be) the reality can often be very different, and it is best to be prepared for such an eventuality. Adam Crawford Partner and Head of New Build Homes, Prince Evans Solicitors LLP
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The Government is keen to help the housing crisis and assist those with mortgages by offering generous tax breaks to those who rent a spare room to a lodger According to house share site SpareRoom, if just 3% of the 19 million empty bedrooms in England’s owneroccupied properties were let out, a new city the size of Liverpool would be created, giving 570,000 people a bedroom without laying a single brick. Greater availability of house and flat shares would benefit both those who are saving for a first home and those who have just moved in and are struggling with a hefty mortgage. For savers, choosing to rent a room rather than a flat has massive financial advantages – the average double room in London costs £751 a month, according to EasyRoommate, compared with £1,878 for a whole property (Landbay’s Rental Index Report). While in other parts of the country such as Liverpool, Sheffield, Dundee, Leeds and Glasgow, renting a double room comes in at under £400 a month, compared with the average £762 a month for renting an entire flat. For those who have just bought a home; you can earn an amazing £625 a month tax free by taking in a lodger under the Rent a Room Scheme – that’s an additional £7,500 a year towards your mortgage payments. You might even find yourself a new friend in the process; as 70% of sharers are young people aged between 18 and 34, you could easily find a kindred spirit. While it is a great way to help pay your mortgage and help someone else to get
closer to buying a home, there are a few important things you need to remember:
MORTGAGE In general, most mortgage companies will not penalise you for taking in a lodger, providing that you continue to live in the property yourself. Most will, however, expect you to ask for consent before you advertise your room, or to let them know if a casual guest is planning to move in on a more permanent, paying basis.
HOME INSURANCE This can be more of an issue, as your insurance will generally only cover your
TA X B R E A K S F O R TA K I N G A L O D G E R
The Government’s Rent a Room Scheme allows you to earn up to £7,500 a year tax-free (£3,750 if you’re letting jointly) when you let a room in your own home. The room must be furnished, used for someone to actually sleep in, and you must share some facilities. If the income from your lodger is more than that, you must declare it on your tax return and either take off the £7,500 annual allowance, or, in the unlikely event that your expenses for renting the room that year were higher than that (perhaps you put a swanky new bathroom in the lodger’s room) then you can deduct your expenses. If you don’t qualify for the Rent a Room Scheme (eg if you are renting a room for study or for storage, or hiring out your driveway for parking), the new £1,000 trading allowance enables you to earn up to £1,000 (£1,000 each for jointly owned property) without needing to declare it or pay any tax on it. If you earn more than £1,000 you must declare it, but can take off the £1,000 allowance.
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immediate family and nonpaying guests. You will need to contact the company and pay an additional premium to ensure that you are covered for any damage that might be caused by the lodger, and, if you wish, to cover the lodger’s possessions against fire and theft while in your home. If your lodger has a criminal record you might find it difficult to find insurance cover. You can choose to make the lodger responsible for ensuring his or her own possessions (although you will still have to tell your own insurance company). You also need to make sure that your home insurance includes public liability cover as you will have a nonrelative living there.
LEASEHOLDERS/SHARED OWNERS If your property is on a leasehold basis, then you would normally have to seek the leaseholder’s permission to rent out a room, and you could find there is an administration charge for getting consent. Likewise, if you have a shared ownership property where you are still paying rent on a portion of the home, you will normally have to seek the permission of the landlord who owns the remaining part, although this will normally be granted as long as you continue to live there yourself. You may have to pay an admin fee.
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Claire Woodhouse, a 37-year-old property manager from Bath, knew that on her own there was no way she could afford to borrow the size of mortgage she needed for the mid-terrace 1950s home that she loved, but Bath Building Society came to the rescue with its Rent a Room Mortgage. While most mortgage lenders won’t consider the potential income from a lodger when working out how much to lend, Bath Building Society has a special mortgage deal for those who want to make good use of the Government’s tax efficient Rent a Room Scheme. “I had always planned to rent a room to help me out financially, and Bath Building Society was prepared to lend me a bit more than other lenders I’d spoken to,” she says. “Whether taking on a lodger is a good idea does depend on your type of personality – I’m gregarious and love being around people, so I preferred it to being on my own. My lodger Chris has been an ideal tenant; we hit it off like a house on fire and now we spend lots of time together socially and she has become one of my best friends. It is important for people to be aware of all the legalities of it though, like having a safety certificate for your gas boiler and letting your insurer know.”
HELP TO BUY Help to Buy schemes do not allow you to move out of your home and rent it out, but the prohibition on ‘sub-letting’ does not include lodgers. As long as you remain living in the home yourself, you can still take in a lodger if you bought with any of the Help to Buy initiatives.
COUNCIL TAX If you are living alone and getting a council tax reduction, make sure you inform your council that you have someone else living there or you could find yourself facing a fine and backdated charges. If your lodger is a full-time student you may be able to keep your reduction.
SAFETY REGULATIONS People who are renting a room are subject to some of the same regulations as private landlords: furniture must have fire safety labels, gas appliances must be checked annually by a qualified engineer and electrical equipment must be safe. There should not be any obvious hazards like mould or mice!
IMMIGRATION CHECKS You might be surprised to know that before you can rent a room you have a legal duty to check the lodger’s immigration status
(even if you are positive they are British). If you fail to check every single lodger there’s a £3,000 fine, and if you knowingly rent to someone who is an illegal immigrant it could be five years in prison. You must see the lodger’s original documents (while they are present, so you can compare the photo with the reality), check they are genuine and keep copies. This would normally be a British, Swiss or EU passport, but there’s a 39-page guidance document of exactly what is considered adequate proof at gov.uk/ check-tenant-right-to-rent-documents.
LODGER AGREEMENT There is no formal tenancy agreement needed with a lodger, but it is wise to use a lodger agreement that sets out in writing some basic rules for shared living – eg which areas does the lodger have for themselves, which areas are for common use and which areas are off limits; whether utility bills are included or how they are calculated; and what chores the lodger should fulfil (eg clean their own room, put their rubbish out etc). You don’t have to set a notice period by law, you only need to give “reasonable notice” if you want them to leave, but you might want to agree on what both parties feel is reasonable.
DISCRIMINATION Lodgers come under the "small premises" exemption to the Equality Act 2010 which
means you can legitimately specify the gender or religion of your lodger if you are sharing a bathroom or kitchen with them, and you do not have to make the usual "reasonable adjustments" for a disabled person. You cannot, however, discriminate on the grounds of race.
PERSONAL SAFETY Provided you get the would-be lodger’s permission, it is legitimate to ask, at the very least, for references from their work or previous accommodation. It is also a sensible precaution to pay for a more thorough tenant check through an agency. Remember that social media can be very revealing – your tenant may present as a clean-living professional, but if all the pictures on Facebook are of them fallingdown drunk you might want to reconsider! In conclusion, taking in a lodger can bring financial rewards, but needs to be carefully thought through. Ben Wilson from Gocompare.com sums it up, “For many people, making extra cash from their home is an attractive proposition and can provide some much needed income. However, people need to be careful they are not breaking any rules, otherwise their ‘earn from home’ scheme could end up leaving them seriously out of pocket. This makes it important to always check with your mortgage lender or landlord and your insurer to make sure you stay legal and have the cover you need.”
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The Bank of Mum and Dad helps fund more than a quarter of all house purchases – but there are many different ways to help The latest statistics on the Bank of Mum and Dad make interesting reading. According to new research by financial services group Legal & General, 27% of all buyers receive help from family or friends (up from 25% last year), while among the under 35 age group – most likely to be first time buyers – that figure rises to 60% of all purchasers. Yorkshire Building Society’s First Time Buyer Report shows even higher figures; with 70% of those who have bought in the past year saying that they had help from family, friends or an inheritance. What Legal & General’s figures also show, however, is that the amount that parents are willing (or able) to offer is dropping – quite dramatically in some parts of the country. In total, the Bank of Mum and Dad now provides £5.7 billion in funds to help 316,000 loved ones buy a home. But since last year, the average amount that parents provide has dropped from £21,600
in 2017 to £18,000 in 2018. The figure varies dramatically from region to region – while London buyers have seen the parental contribution increase in the year from £29,400 to an unprecedented £30,600, and buyers in the South East have only seen a modest drop from £21,800 to £21,700, buyers in the North West have seen their help slashed from £23,100 to £12,900 and in the North West from £23,100 to £12,900. Nigel Wilson, Group Chief Executive at Legal & General, said, “The Bank of Mum and Dad remains a prime mover in the UK housing market, but this year the supply of funds is
GIFTING MONEY
If your parents are in a position to simply give you money as a gift, there are some points to consider. In order to stop people from just giving away all their money at the end of their lives to avoid Inheritance Tax, the Government rules that gifts given in the seven years before a person’s death will usually be part of their estate for Inheritance Tax purposes, which is paid at 40% of the value of their estate over £325,000 (with some complex exemptions). The tax is paid by the executor, not directly by the recipient of the gift (unless they have received more than £325,000 themselves), but it will potentially reduce the amount of inheritance considerably. To avoid this possibility, parents can give various gifts with no fear of tax at all – £3,000 a year to anyone they like, £5,000 for a wedding present to a child, or regular gifts from their income that don’t affect their standard of living. So if a parent has promised you money towards a first home, it might be preferable for them to give you £3,000 each year for a couple of years while you are saving rather than a lump sum (and if you didn't use the previous year's allowance it can be brought forward for one year, meaning that in two days each parent could potentially give you £9,000 without any risk of tax at all – £6,000 paid on April 5, 2019 covering the 2018-19 and 2017-18 tax years and £3,000 on April 6 2019 for the 2019-20 tax year).
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being squeezed. It’s clear that households are feeling the pinch, as Bank of Mum and Dad contributions have reduced by an average of 17% from nearly £22,000 to a still very generous £18,000. The fact that in 2018, one in four housing transactions in the UK will be dependent on the Bank of Mum and Dad, while hard-pressed parents are finding it more difficult to provide the funds to help their family with deposits, will further exacerbate the UK’s housing crisis.” Research from Prudential suggests that parents and grandparents have already been endangering their own financial stability to help the younger generation. A survey of 1,000 parents revealed that every single one had either already loaned money to their children to cover major financial commitments or planned to do so. But nearly one in five (19%) admitted that they had taken money out of their pension fund
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CASE STUDY
Karyn Brown fell in love with a two bedroom flat in Glasgow, close to where she was living with her mum and dad. But when the medical secretary, now 32, went to her bank in the hopes of getting a 95% mortgage to buy the £60,000 property she was turned down, and told she had to save at least 10%. “I had saved up 5%, but 10% would take a lot more saving and I was so disappointed as I was really quite desperate for my own space,” she said. Her dad Joseph, a postal officer, came to the rescue. “A colleague mentioned Barclays Family Springboard Mortgage and it only took two minutes on the computer and they said yes.” In fact, Karyn was one of the first customers to take out the mortgage, just weeks after it was first launched. “The mortgage needed a 5% deposit from me, and dad had to put 10% of the money into a bank account with Barclays and lock it away for three years, after which he would get some interest on it. He wanted to help me, he’s that sort of a person, but I didn’t want him to physically give me money. He had money already saved in an account, so it didn’t make any difference whatsoever to him to invest it somewhere else. It helped me so much to be able to move and it didn’t put any strain at all on our relationship.” Barclays Family Springboard, 95% LTV, 2.55% or 100% LTV, 2.75% both fixed for three years. barclays.co.uk
or sacrificed saving into their pension in order to help their children, and a similar percentage said they had cut back on their own spending to help out. One in 10 even admitted that they had been left short of money for emergencies since giving a loan to a family member. Part of the problem seems to be the casual nature of many family transactions. Prudential found that three quarters of the parents hadn’t set clear repayment conditions on their loans at all, with the result that 59% ended up writing off some or all of the loan, despite the fact that 77% had expected to be repaid in full. Kirsty Anderson, a retirement income expert at Prudential, said, “The Bank of Mum and Dad plays a vital role in the finances of younger people. However, it is important that parents remember to consider their own futures when making loans to their families – money taken now from savings and investments intended to provide for retirement could make a real dent in their income when the time comes to give up work, especially if they eventually have to write off all or some of the loan.”
Fortunately there are plenty of ways in which parents can help that don’t involve them getting themselves into financial difficulty. In the past, many parents used helping a child on to the property ladder as a financial investment by becoming a co-owner. The changes in Stamp Duty have made this far less attractive. If the parent already owns a home, the property would be subject to the Additional Stamp Duty charge of 3%, and the whole transaction would lose the First Time Buyer Stamp Duty relief. In cash terms, a first time buyer purchasing a £250,000 property would pay no Stamp Duty, and would only pay £5,000 on a £400,000 home. Buying jointly with a property-owning parent, the Stamp Duty payable would be £10,000 on the £250,000 home and £22,000 on the £400,000 property. With that option now off the table, how else can parents help? FAMILY DEPOSIT MORTGAGES – parents lock money away in a deposit account with the company that the child is taking their mortgage with, enabling the child to take out a 95% or even a 100% mortgage
with a relatively low interest rate, since the parent’s money would be forfeit if the child defaulted. After either a fixed term or when a sufficient amount of the mortgage has been paid, the parent is allowed to withdraw their money, sometimes with some interest added. Pros: the parent’s money is not lost and they can gain interest on it. Cons: money is locked away and is at risk if the buyer defaults. The parent might get a better interest rate elsewhere. Most of these products won’t loan on new build homes. Examples: Barclays Family Springboard, The Family Building Society Family Mortgage. PARENT PROVIDES SECURITY – part of the loan is secured on the parent’s own home rather than the buyer’s home, enabling larger amounts of up to 100% to be borrowed. Pros: The parent doesn’t have to have available cash, just equity in their home. Cons: Could prevent the parent moving house, valuations and legal fees can be high. Examples: Buckinghamshire Building Society Family Assist; Tipton & Coseley Building Society 100% Family Assist; The Family Building Society Family Mortgage. PARENT ACTS AS GUARANTOR – the parent signs up to guarantee the lender that the mortgage payments will be made. Pros: many mortgage companies will consider this option. No money is required up front. Cons: Parent usually needs to be working and have a sufficient income to be considered safely able to pay the mortgage on top of their own commitments. Examples: most banks and building societies will consider a guarantor option on request. Finally, remember that being upfront and honest can avoid a lot of heartache later. Make absolutely sure that you know if any money you are being handed is meant as a gift or a loan. If it’s a loan, put into writing a realistic timescale and plan for repayment and whether any interest is payable, then stick to it. Finally, before accepting any help, consider the relationship you have with your parents – if it’s not all sunshine and roses, a deposit type arrangement, where the parent is paid interest on their savings, may be easier to live with than accepting a gift that may reinforce an uncomfortably unequal relationship.
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HELPING MODERN MILLENNIAL BUYERS The Post Office has recently launched a range of innovative new mortgages aimed at helping the parents of first time buyers to be able to support their children without tying up their own savings Following in-depth research with ftbs and their parents, Post Office found that for young potential buyers who can’t currently get on the ladder, finding a deposit is the biggest barrier (43%)*. Recent statistics from the Office for National Statistics reveal that the average first time buyer may need a deposit of over £50,000 and homes purchased are likely to cost on average £210,928 with a £160,442 mortgage needed. As the average millennial has £3,359 in savings, this often means young buyers will turn to their parents for help with a deposit**. While around 81% of parents are happy to provide financial support if they can, there are often concerns about tying up their available savings which may in turn have an impact on their own retirement***. Post Office has therefore launched two new mortgage products; First Start and Post Office Family Link, with the aim of helping more ftbs realise the dream of owning their own home.
FIRST START MORTGAGE This is designed to boost the borrowing power of first time buyers through the support of their families, so ftbs will now be able to apply for a mortgage with a close relative. The sponsor will act as a co-borrower and have the option to be on the title of the property. The two highest incomes, from applicant and/or sponsor, will be taken into account when assessing the level of borrowing, potentially increasing the amount a ftb can borrow. The First Start
For any first time buyer looking to get on the housing ladder with the help of their family The Money Charity has teamed up with Post Office to create a guide to help navigate this new kind of family relationship. What should you discuss? How do you broach the subject of money with your parents? What do other people do? The guide will take you through some of the things you need to think about, discuss, and decide together before making any major decisions.
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mortgage has product options in the 75-95% LTVs with a maximum loan of £500,000.
* Opinium Research carried out an online survey of 1,002 recent first- ime buyers (those who purchased their first property in the past 24 months) aged 18+, from 2 June to
POST OFFICE FAMILY LINK ™
9 June 2017.
With a Post Office Family Link ™ Mortgage, ftbs will now be able to secure a mortgage without a deposit. Instead they take out a 90% LTV mortgage from Post Office and then raise the other 10% as a mortgage secured against a close relative's home. Buyers make two separate repayments for the first five years – one towards the assistor’s mortgage (which is interest free) and one toward their own mortgage. This mortgage has a 90% LTV with a maximum loan of £500,000.
** Opinium Research conducted online interviews with a nationally representative audience of 2,518 UK adults between 26 January and 7 February 2018, all national average statistics are weighted to be representative. *** Opinium conducted a survey among 1,009 millennials and 1,021 of their parents between the 5 and 10 October 2017. Opinium also looked at data from the ONS to ascertain what the deposits required by first time buyers are, what the incomes of young working couples are, and what level of financial wealth their parents have. Using findings from the consumer research we were able to calculate how much millennials in 16 of the UK’s cities are
Visit postoffice.co.uk/mortgages for more information on both mortgages
able to save towards their deposit, and to what extent they can be helped by their parents.
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HELP TO BUY
DEMYSTIFYING HELP TO BUY
As the gap between property prices and the prospective first time buyer’s ability to save continues to stretch, many hopeful homeowners are in search of ways to help build a deposit. Along with Help to Buy, one incentive that is proving to be a successful springboard is the tax-free Help to Buy: ISA Following the success of the Help to Buy scheme in 2013, the Government two years later launched the Help to Buy: ISA, whereby customers saving for their first home receive a bonus from the Government of 25% – the maximum bonus is £3,000 per person and the ISA is only available to first time buyers. The Ministry of Housing, Communities and Local Government states that Help to Buy (both the equity loan and the ISA) is "supporting people who want to turn their dream of owning a home into a reality and helping more young people save the deposits they need for their first homes". Having just celebrated five years since its launch, there is no doubt that Help to Buy is being used by many buyers looking to find a more affordable way into their first home. For those interested in finding out more about it, the scheme looks likely to be
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extended until 2020, so there is still time to take advantage.
45% in London) deposit; lowering monthly repayments.
HELP TO BUY: EQUITY LOAN
ELIGIBILITY
Not exclusively for first time buyers but most popular among this type of buyer, Help to Buy has helped hundreds of thousands of aspirational homebuyers move on or up the housing ladder. For eligible first time buyers able to take advantage of Help to Buy, the equity loan scheme provides a Government loan of 20% (or up to 40% in London) of the property price. This means that prospective buyers will need to raise only a 5% deposit and a mortgage of up to 75% for the rest (up to 55% in London). As well as demanding less upfront cost, buyers can also access mortgage rates more typically associated with a 25% (or
The home you buy must: Be a new build Have a purchase price of up to £600,000 in England (or £300,000 in Wales) Be the only home you own Not to be sub-let or rented out after you buy it
THE EQUITY LOAN: HOW IT WORKS? The loan is interest free for the first five years After five years there is an interest fee of 1.75% of the loan’s value which then increases every year according to the
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HELP TO BUY Retail Price Index (RPI) plus 1% The loan must be repaid when the property is sold or within 25 years. The amount you pay back depends on how much your home is worth (the market value of when you sell)
HELP TO BUY: ISA Since its introduction in December 2015, figures released by HM Revenue & Customs show that over 8,330 completions have been carried out through the Help to Buy: ISA. With the age of a first time buyer in the scheme averaging 27, this is a clear indication of its success in helping young people on to the property ladder.
HOW DOES IT WORK? With the aim of giving a helping hand to first time buyers, the Help to Buy: ISA provides a Government bonus of 25% on your savings. For every £200 you save, the Government will give you £50, up to a total of £3,000 on £12,000 worth of savings. The maximum you can put in each month is £200, apart from the first month where you can make an initial deposit of up to £1,200. You can save less, but a minimum amount of £1,600 and a maximum of £12,000 is permitted for you to be able to claim your Government bonus. Couples can benefit from combining their savings.
ELIGIBILITY To qualify for a Help to Buy: ISA you must: Be 16 or over Have a valid National Insurance number Be a UK resident Be a first time buyer and not own another property Not have another active cash ISA in the same tax year To qualify for the Government bonus your new home must: Have a purchase price of up to £250,000, or up to £450,000 in London Be the only home you will own and live in Not be rented out after you buy it Be purchased with a mortgage
CLAIMING YOUR BONUS: HOW IT WORKS? Close your account when you’re ready to buy your first home. You will then receive a closing statement from your ISA manager Give the closing statement to your solicitor or conveyancer, who will apply
for the Government bonus on your behalf. You will need to claim your bonus within 12 months The bonus will be transferred directly to your solicitor Your solicitor will complete the purchase of your home using the full bonus amount in addition to your own saved deposit The bonus must be used towards the completion of a property; you can’t use it to pay for additional costs such as the deposit due at the exchange of contracts, solicitor’s or estate agent’s fees. If the purchase of a property falls through, you can reopen your account and redeposit the funds removed at closure.
BENEFITS Double Your Savings as a Couple Help to Buy: ISA accounts are available to each first time buyer, rather than each household. This means that if you are planning to save towards your first home with a partner, you could potentially double your Government bonus of up to £6,000 by each opening a Help to Buy: ISA account. Flexible and Rewarding For prospective first time buyers, the Help to Buy: ISA is a useful way of getting into the habit of saving for a deposit and rewards you for doing so. Plus, it is flexible as you are able to claim the Government bonus at any point after saving the minimum £1,600 and you can also have additional savings alongside your ISA, as long as it’s not in a cash ISA for the current tax year. You are not limited to buying a new build property or setting up a Help to Buy mortgage through the ISA. Also, if you keep an eye on interest rates and find that there is a bank offering a better deal on the market, you have the option of transferring your ISA to another bank. The Help to Buy: ISA is available through a variety of banks and building societies. First time buyers have until 30 November 2019 to open a Help to Buy: ISA and then right up until 1 December 2030 to claim the bonus.
CASE STUDY
Award-winning Cardiff homes development The Mill has helped city primary school teacher Hannah take her all-important first step on to the property ladder – thanks to a little boost from Help to Buy. Hannah was at the front of the queue when homes were initially launched and was the very first person to reserve a home at the development, in the Canton area of the city, securing her new two bedroom house before it was even built. Having moved in, she’s thrilled to have her own home and to be part of a growing community of young professionals and families at The Mill. Help to Buy was a big plus for Hannah who was able to buy a larger house than she initially thought she could. Hannah said, “I’m 27 and at an age where you want your independence but achieving that on your own isn’t so easy. Lots of my friends who have managed to buy a home are in couples. Using Help to Buy, I’ve been able to buy a bigger home than I was expecting to, with my own garden and parking – I’m so happy with it. “I didn’t want to take on any of the potential problems that come with buying a secondhand property. For me, keeping the cost of living down was also important, I like that my house has modern insulation and an energy-efficient boiler and it means that my bills are very reasonable.” Homes currently available at The Mill include a range of newly released apartments with two bedrooms and en suite starting from £172,000. themill-canton.co.uk
GREENER HOMES
From June, homebuyers in Wales will be able to take out higher Help to Buy loans on properties that are more energy efficient. The move follows research which found that factoring the efficiency of a home into affordability calculations could allow lenders to increase loans by £11,500 because electricity and gas bills would be lower. The Welsh Government said it hoped the change would open up the housing ladder to more people and encourage homebuyers to consider energy ratings when house hunting. Andrew Sutton of the Building Research Establishment, which has researched green mortgages, said he hopes the mortgage industry will support the idea. Barclays already offers a green mortgage product, with a discounted interest rate on new build homes rated A or B for energy efficiency.
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HELP TO BUY
HOMES AVAILABLE WITH HELP TO BUY
WEST HENDON CHINNOR, OXFORDSHIRE
FROM £399,000
Oak Hill Park
Oak Hill Park from Bellway is a collection of 120 elegant new homes situated in the popular village of Chinnor, Oxfordshire. Nestled at the bottom of the Chiltern Hills, Oak Hill Park offers the benefits of idyllic country living while remaining just an hour away from London. The homes are surrounded by generous green boulevards that also run through the development. Bellway has catered for a wide audience of prospective purchasers, with homes created for families, downsizers and first time buyers. Built to a high specification, the one, two, three, four and five bedroom properties, all available with Help to Buy, boast excellent design features, desirable open-plan living spaces, stylish fittings and either a garage or off-street parking. bellway.co.uk
FROM £538,500
Hendon Waterside
Families and young couples seeking more space, as well as a home near the beautiful and green surroundings of the Welsh Harp reservoir, now have 14 new duplex apartments to choose from at Barratt London’s Hendon Waterside development. With ambitions to create a true community, Barratt London has created a selection of cleverly designed two and three bedroom duplex apartments, which have access to outdoor space with a private balcony or terrace and offering views of the landscaped gardens below. Hendon Waterside is a 30-acre regeneration site which will bring 2,000 new homes, public spaces and parks in addition to enhanced local amenities to the area. Conveniently located in Zone 3, Hendon Waterside is within walking distance of Hendon railway station and Hendon Central tube station which offers quick and easy access into central London. There are several different layout options available with prices starting at £538,500 for a two bedroom duplex. barrattlondon.com/hendonwaterside
FROM £299,000
BROMLEY
FROM £445,000
Woodhams Apartments
TOTTENHAM
Hambridge Homes has just launched the second phase of Woodhams Apartments in Bromley, Kent, offering12 one and two bedroom apartments in this boutique development. Built to a high specification, there is a range of layouts available, allowing buyers to choose from a variety of floorplans. There is also an opportunity to purchase underground car parking for a one-off additional fee. Bromley is currently undergoing a £90 million regeneration project and is in a fantastic location, with trains from Bromley South taking just 16 minutes to London Victoria.
Brook Place developed by Citystyle, part of One Housing Group offers a selection of stylish two, three and four bedroom apartments just off Tottenham High Road within one of the most exciting regeneration areas in London. The apartments are spacious with a high-end finish, and kitchens come with integrated appliances. Selected properties come with impressive top floor terraces and private parking. From nearby Bruce Grove railway station, it takes just 20 minutes to London Liverpool Street, or Tottenham Hale tube offers superb connections to the West End.
dmestateagents.com
brookplace.site-sales.co.uk
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Brook Place
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AFFORDABLE HOMES
MANCHESTER’S MOST VIBRANT NEW NEIGHBOURHOOD
Manchester needs no introduction. Constantly voted as the UK’s best place to live, the awardwinning city is full of historic legacy, bursting with character and is widely celebrated for its vibrancy, fantastic cultural offering and overall northern friendliness
Middlewood Locks show apartment
With so much going for it, you can appreciate why Manchester has become a magnet for city life, and Middlewood Locks is the emerging new neighbourhood that everyone is talking about. All of the apartments here have a very high specification with generous layouts, most with balconies or private terraces, along with doorstep amenities and a fantastic public realm which makes for a perfect lifestyle just minutes from the city core. And now that first time buyers don’t have to pay Stamp Duty on properties under £300,000, along with the Government-backed Help to Buy scheme at Middlewood Locks allowing just a 5% deposit, the city life is more affordable than ever before. Middlewood Locks is a new neighbourhood being created around three large basins of the Manchester, Bolton and Bury Canals, connecting to the River Irwell. It is a short walking distance from Spinningfields, Salford Central train station and the world class amenities of Manchester city centre. When completed, the scheme will provide a total of 2,215 new homes, 900,000 sq ft of commercial space including a hotel,
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together with all the amenities of a new urban neighbourhood. The first phase of Middlewood Locks provides 571 one, two and three bedroom apartments all with either a private garden, terrace, balcony or Juliet balcony. A typical two bedroom apartment offers an open-plan living room with full height glazing and terrace taking advantage of the spectacular views, a fully fitted German Pro-Norm kitchen with quartz worktops and integrated appliances, bedrooms with built-in wardrobes, and luxury bathrooms. Now reaching first phase completion, with new homeowners moving in this summer, the £1 billion scheme is currently the largest new development in Manchester to offer Help to Buy, meaning that buyers can secure an apartment for just £166,000 with a 5% deposit. Help to Buy is an equity loan whereby the Government lends up to 20% of the cost of a newly built home, therefore the purchaser only requires a 5% cash deposit and a 75% mortgage to make up the rest. They are not charged interest on the 20% loan for the first five years of owning their new home.
Nicola Wallis, Director of Residential Sales and Marketing at Scarborough International Properties, said, “Sales at Middlewood Locks have been really successful with 50% of our customers purchasing through Help to Buy since we launched our marketing suite. This response demonstrates how effective the initiative is in helping first time buyers on to the property ladder. “We hold regular events where Help to Buy specialists, independent mortgage advisors and solicitors are on hand to offer free advice to help customers to fully understand their commitment to buying a new home and guide them, step by step, through the process. We aim to make the experience as easy and enjoyable as possible. “We are building a new community that feels like home for all occupiers and so making Middlewood Locks accessible to first time buyers is very important to us. We already have a lovely mix of customers moving in, from first time buyers and growing families to retirees and customers who are downsizing from their family home. This blend makes for a truly sustainable new neighborhood.” City professionals Tristan Comley and Nicola Jones have bought their first home together at Middlewood Locks through Help to Buy. Tristan said, “We were attracted to Middlewood Locks because of the light and spacious apartments not often found in the city centre, and the overall vision for the neighbourhood is inspiring. We didn’t really know how Help to Buy works until we visited the development but it means that we have been able to buy a two bedroom apartment without the struggle of finding a 25% deposit. The lower interest rate also allows us to save and hopefully pay back the Government loan in the next few years.” Appointments can be booked by emailing sales@middlewood-locks.co.uk or calling 0161 392 3247 middlewood-locks.co.uk
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AFFORDABLE HOMES
FAIR SHARES
Thanks to heylo housing, versatile shared ownership is now available on almost any secondhand property you like, plus a whole host of new build homes
heylo housing is a residential property company that works with local authorities and house builders to provide affordable homes across the country. The company is active in more than 120 local authority areas and has so far enabled nearly 1,000 families and individuals to move into a shared ownership home, with thousands more planned for the next five years. One of the difficulties with most shared ownership schemes is that there are relatively few new purpose-built shared ownership homes coming on to the market, and schemes to take over existing, secondhand shared ownership properties offer a restricted choice. heylo housing has created a solution to both these problems – Home Reach is a nationwide scheme that enables house hunters to choose from a wide variety of properties from different developers, while Your Home extends the benefits of shared ownership to the multitude of pre-owned homes on offer in estate agents’ windows. Your Home – for pre-loved homes In general, if you want to use a shared ownership scheme and avoid the premium of a new build property, or would prefer to move into an established community,
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then you would have to contact different companies offering shared ownership and hope that they had someone wanting to sell their share in a property that appealed to you. What makes Your Home different is that it can be used to buy a share in almost any property in England or Wales that takes your fancy, provided that a few conditions are met. You have to provide at least a 10% cash deposit for the Open Market Valuation of the property you are buying, so it’s possible to move in without needing a mortgage at all – as you can buy as little as a 10% share of the property you can simply choose to rent the other 90% initially. The increase on the rent you pay on the proportion you don’t own is calculated using the Retail Price Index plus 0.75% each year. If there is no inflation, then the rent only goes up by 0.75% in the year, and it isn’t linked to the interest rate. If you wish, you can choose to add a mortgage to your 10% deposit in order to buy a larger initial share (normally up to 50% of the value), and heylo has partnered with Newbury Building Society to offer a specialist service. And one of the benefits of shared ownership is that in the future when you have saved up some more cash, or your situation has improved so you want to borrow more money, you can buy a
larger share of your home using staircasing (although there will need to be a valuation and some legal fees). A unique point about heylo’s Your Home is that you will be entitled to 75% of any value increase on the share you didn’t buy, which is additional value that you or your family will be able to access in the future. So, for example, if a few years ago you bought a 10% share of a £200,000 property which is now worth £300,000, the 90% unpurchased share has increased in value from £180,000 to £270,000. With Your Home you are entitled to 75% of this £90,000 increase if you sell... that’s £67,500 on top of the £30,000 value of your 10% share!
WHO CAN USE THE SCHEME? Buyers with a household income of up to £80,000 or £90,000 if you are buying in London You can be a first time buyer, homemover, or someone who needs to pay the mortgage off the property they are in (perhaps in a divorce situation), but you must intend to live in the property and you cannot use it to buy a second home You must have a good credit history with no outstanding CCJs or bankruptcy
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AFFORDABLE HOMES
Members of the armed forces, including regulars, reserves, veterans and their families, will find an ally in heylo housing, after the property company signed the Armed Forces Covenant, pledging fair treatment and support to military personnel. The agreement means that the majority of those currently serving will be able to use Forces Help to Buy as their deposit, in conjunction with heylo’s Home Reach and Your Home shared ownership schemes, to buy a home. Forces Help to Buy allows service personnel to borrow up to 50% of their annual salary, to a maximum of £25,000, for use towards a deposit or legal fees. Nicholas McAlpine-Lee, CEO at heylo, said, “I am both honoured and delighted to sign the Armed Forces Covenant on behalf of heylo, as we believe that everyone in the United Kingdom should have the opportunity to access a stable home and the benefits of homeownership. Our unique proposition for military personnel and their families means that households with an income as low as £20,000 per year could access homeownership.” Major General Ben Bathurst, General Officer Commanding London District, co-signed the Armed Forces Covenant with heylo housing. He said, “The support of organisations such as heylo housing is hugely important to all of us in the military. I believe strongly in taking steps to make it easier for Service Personnel to own their own homes, coupled with the Forces Help to Buy scheme, as the domestic stability it provides helps to recruit and to retain the talent that we need in the Royal Navy, Army and Royal Air Force. In signing up to the Armed Forces Covenant, heylo housing helps to encourage Service personnel to feel confident about starting out on the housing ladder and providing a stable base for their families within the community.”
You must be a British or EU citizen or have indefinite leave to remain in the United Kingdom You need to have sufficient income to cover your monthly expenses, but this can be from employment, selfemployment, maintenance, pension or some benefits
WHAT KIND OF HOME CAN YOU BUY? Homes bought under the scheme must be: In England or Wales Secondhand (at least a year old and previously occupied) Freehold and not for sale by auction. Built of traditional construction Habitable without the need for major repairs to be carried out
THE PROCESS When you have completed the online application form it takes just two working
days to give you an agreement in principle, which lets you know the maximum amount you can offer on a property. You can then go to the estate agent and find the home of your dreams – and as you will be, in effect, a cash buyer, you should be able to negotiate a good price. Once you have made an offer on the property and it has been accepted, the next step is to get a valuation report and instruct a solicitor. On completion, the whole property is sold to heylo which then sells you your share at the same time and rents the unpurchased part to you on a 999-year lease. There is a £1,200 product fee to pay, plus a small annual management charge to heylo, and buildings insurance. If you buy a home on an estate which has a service charge, you will also be responsible for paying that, and your transaction may be subject to Stamp Duty. Home Reach – for new homes Home Reach is a part-buy-part-rent scheme that enables you to buy a new one, two, three or four bedroom home from a whole range
of developers around England. Once you are approved, when you find a new home that you like, it is bought by heylo, which immediately sells an initial share back to you – usually between 25-75% of the open market value. You must have a cash deposit of at least 5% of the value of the share you are purchasing, but can use a mortgage for the rest. heylo then grants you a 125-year lease on the unpurchased share of the property, and you pay rent on that part. Rent is currently set at 2.75% and will increase by RPI plus a small increase of 0.5 each year. When you have saved up more, or your financial position improves, you can buy additional shares in the property (staircasing) until you own it outright, at which point the lease with heylo will cease.
WHO CAN USE THE SCHEME? Buyers with a household income of up to £80,000 (£90,000 if you’re buying in London), who have passed a Homes England Affordability calculator test and registered with a Help to Buy Agent First time buyers or those who used to own a home but cannot afford to buy outright, buying the shared ownership property to be their only home
WHAT KIND OF HOME CAN YOU BUY? Homes bought under the scheme must be: In England and listed on the homereach.org.uk website New build
THE PROCESS Firstly you need to register with a local Help to Buy agent and complete a financial affordability assessment which is done by an Independent Financial Advisor. You must pay a reservation fee to the sales team to secure your home, then appoint a solicitor and apply for a mortgage. There is no product fee, but you will have to pay for solicitor’s fees and valuation and you may be liable for Stamp Duty. Once you have moved in, you can decorate it as you like, but if you want make structural changes then you need permission from heylo. Your Home 020 3744 0408 yourhome.org.uk Home Reach 020 3744 0415 homereach.org.uk
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AFFORDABLE HOMES
PEABODY CREATES THE TRIFECTA IN ISLINGTON
Close to the City, with good transport links and lively bars, shops and restaurants, Islington has become one of the most desirable places to live in London. However, with the average property selling for £884,863¹, many are priced out of the area. Peabody, one of London’s leading housing providers, is set to offer three new affordable housing developments across the borough later this year. Available through shared ownership, these new homes will provide an affordable option for first time buyers looking to make the most of living in such an enticing location
The City Angel
THE CITY ANGEL The City Angel is a large shared ownership development comprising 70 studio and one bedroom apartments, located at Berkeley’s 250 City Road. The development carries an aspirational and desirable quality through its City central scene, making it the ideal dwelling for young professionals and first time buyers looking to be at the hub of metropolitan living. Angel and Old Street underground stations are just a 10-minute walk away, connecting residents to wider London via the Northern Line, while London’s financial districts, Canary Wharf and The City of London can be reached in under 25 minutes via Bank. The development will be launching in September and prices are expected to start at £127,500 for a studio apartment (a 30% share of the full market value of £425,000).
WHARF ROAD Wharf Road, a stunning development comprising a collection of 15 one and two bedroom apartments, will also be
Wharf Road
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available for first time buyers through shared ownership. Each of the apartments at Wharf Road will offer generous living space, creating a welcoming and comforting atmosphere – making it the perfect home for entertaining guests or simply just relaxing with family. This anticipated development is ideally located between the creative quarter of Shoreditch and the buzzing hub of Angel, allowing residents to benefit from both of the popular hotspots. Offering boutique living in a canal-side setting, its central location provides access to all the best amenities London has to offer. Close by are both Angel and Old Street underground stations, and it’s also just one stop away from Kings Cross St Pancras International station, linking residents to destinations within the UK and further afield. Each apartment has its own unique design and layout and benefits from high-quality finishes such as oak grey flooring, an abundance of storage and private outdoor space. Prices are yet to be confirmed for Wharf Road which will be launching this autumn.
PENNY BLACK Penny Black is another Peabody development made up of 15 shared ownership apartments, perfectly placed on prime Upper Street – one of Islington’s most prominent streets, armed with a wealth of boutique shops, pubs, cafes and restaurants. Consisting of one and two bedroom apartments, Penny Black forms part of the site of the former Almeida Post Office and has been designed by award-winning architect CZWG. Penny Black is ideally situated to the south of Highbury Fields, the largest open space in the borough, containing recreational facilities including tennis courts and two indoor swimming pools. It’s also located close to a number of transport links, including Highbury & Islington rail,
Penny Black
Overground and tube, and Angel tube station, coupled with being at the centre of a vast selection of bus routes. The development is expected to launch in autumn 2018, with prices to be finalised closer to launch. Consistently contributing to the supply of affordable homes across London, Peabody is aiming to deliver over 1,300 new homes in the capital this year, of which almost 60% will be affordable. The pipeline of new Peabody properties in Islington shows that the leading housing provider is committed to developing homes in areas where people want to live, close to transport links and all the great amenities London has to offer. Andrew Peglau, Head of Marketing at Peabody, comments, “Peabody is proud to provide first time buyers with a unique opportunity to live in Zone 1 Islington through affordable purchasing routes. Not only will each of the properties at all three developments be a fantastic choice to live an exciting lifestyle, but they will also be an excellent investment opportunity in one of London’s most desirable locations.” For further information on each of these developments, please visit peabodysales.co.uk 1 Foxtons * Prices listed are subject to change closer to the launch
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LOCATION FAC T F I L E
HOTspot
Average property price (April 2018) – £490,139 Property breakdown:* (London Borough of Ealing) Detached – £1,096,907 Semi-detached – £671,725 Terraced – £553,992 Flat – £396,516 *According to the UK House Price Index, April 2018
Southall – Go West
FA M O U S RESIDENTS • Inventor Trevor Bayliss • Director Gurinder Chadha • Actor Kwame Kwei-Armah • Singer Cleo Laine • TV presenter Nick Knowles
With first class transport links, green spaces, a centre in the process of regeneration and a rich cultural identity, this west London town is set to be the next big thing for first time buyers The vibrant town of Southall lies 10 miles west of central London, in the leafy borough of Ealing. The wellconnected suburb has a bustling centre, plenty of green space, easy access to country parks, as well as the Grand Union Canal running through it. And with its transport links set to improve with the arrival of Crossrail next year, it is a great choice for those looking for London life with a side of green. It’s also an area which has a distinctive cultural identity. Known as Chota Punjab or Little Punjab, the town is home to the largest Punjabi community outside India. Its trailblazing South Asian community, which was first established in the 1950s and soon grew exponentially, has been celebrated for its pivotal role in shaping modern British Asian life. The South Asian influence can be seen and heard throughout the whole area, with a high number of shops, restaurants, large Sikh temples, and the beautiful Grade II-listed Himalaya cinema. Southall is one of the many towns along the new Elizabeth Line to experience the "Crossrail effect" – with the improved travel times has come investment and regeneration. One project alone will deliver around 10,000 new homes alongside
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community facilities. Other projects seek growth along the canal, and improvements to the cycle infrastructure and road network, all while keeping intact the already strong community foundations.
HOMES AND RESIDENTS Ealing has the third most culturally diverse population in the UK. Though there are large Punjabi, Indian and Pakistani populations, the demographic map continues to change, with new communities developing in the area. The number of homes available in Southall is set to increase dramatically. Last year, work began on Southall Waterside, a major new project that will see a former gasworks site transformed, with thousands of new homes, businesses and community spaces, as well as 40 acres of public open space, including two parks. These new homes will join the eclectic mix Northala Fields
of properties in the area, which includes everything from 1920s family homes and conversions to 1960s apartment blocks and brand new developments.
OUT AND ABOUT There is so much choice when it comes to eating out in Southall. Alhough you can find a wide range of culinary treats from around the globe, it is the many great Indian, Punjabi and Pakistani restaurants than reign supreme. Many of the restaurants use traditional cooking techniques, including charcoal stoves and traditional ovens for creating chapatis, which you can watch the chefs cook through the windows as you pass. Dawat on Broadway is a local favourite and serves delicious Tandoori, Mughal and Bengali dishes, as well as homemade fruit juices and cocktails. The award-winning Mehfil Restaurant on The Green is also well worth visiting, and perfect for a special night out. Lovers of Asian breads should head to Naan Dokan, a specialist bakery creating delicious naan breads ranging from Turkish to cheese aloo. For a relaxed drink, try the Prince of Wales, a traditional free house with an Indian and Punjabi menu, and a friendly
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LOCATION atmosphere. Or head to Lock and Quay, where you can enjoy a spot of canalside dining. This large bar with an al fresco terrace serves quality British meals and runs an annual summer festival featuring live music and a hog roast. Southall lies within easy reach of some very pretty parks and outdoor spaces. Glade Lane Canalside Park, which has football pitches, a BMX track, play areas and a conservation area is perfect for entertaining children, and for enjoying sunny days out. Northala Fields in Northolt is a must-visit park – there are amazing views of the London skyline from all of the four distinctive hills. For a taste of the countryside, head west through West Drayton, where you can take your pick of country parks including Richings Park, Colne Valley Regional Park and Black Park Country Park. You’ll also find some fabulous canalside pubs and country eateries, making it a great location for long walks and family days out. Children will love visiting nearby Hanwell Zoo, where they can learn about and interact with the animals and even get up close to the meerkats. Nearby Hounslow is also home to an urban farm, where families can spend entire days meeting and petting the animals and take part in a schedule of activities including pony riding.
17th century, and is still well attended by locals. There are also some great shopping malls nearby. In neighbouring Ealing, the Broadway Shopping Centre has a number of high street staples, while Shepherd’s Bush is home to the huge Westfield shopping centre, which has more than 400 shops.
TRANSPORT
Southall Broadway
SHOPPING Shopping in lively Southall is a fun and interesting experience. Bustling Broadway is the perfect place to get a real feel of the area’s culture, and is home to a plethora of Asian shops, high street names, independent restaurants, indoor markets and street traders. As you shop, you can sample traditional South Asian delicacies including Kashmiri teas and bhelpuri, a tasty savoury snack. Shoppers should visit Himalaya shopping centre, a maze of open-fronted stores selling beautiful fabrics, fashion – including incredible saris, bridal wear and jewellery – as well as food and drink. If you’re looking for a bargain, Southall Market runs Fridays, Saturdays and Wednesdays, selling fruit and veg, household items, antiques and jewellery. The market has been running since the
From the centrally located station, trains run frequently to London Paddington in as little as 14 minutes. When Crossrail arrives in 2019, trains will reach Tottenham Court Road in under 20 minutes and provide speedy services to south east London and Essex. Heading away from town, trains will reach Slough in just 13 minutes. From the Broadway, buses run in all directions, including to Shepherd’s Bush, Heathrow Airport, and Uxbridge, with a 24hour service to and from central London. 5 REASONS WE LOVE… …SOUTHALL
1 Diverse population 2 Strong South Asian influence 3 Bustling Broadway 4 Plenty of parks 5 Excellent commuter links
HOMES on offer in the area… SOUTHALL
SOUTHALL
St Bernard’s Gate
SOUTHALL
The West Works
FROM £119,875*
Witley Wharf
FROM £389,000
FROM £89,250*
Located between Southall and Hanwell, this collection of one and two bedroom homes by Catalyst occupies a quiet, leafy space on the site of a former hospital. Moments from the canal and parks, the homes are perfect for getting away from busy London life, and are just 15 minutes from Paddington by train. The contemporary homes have been created to a high standard, with bright, spacious living areas, integrated kitchens and private outdoor space. Some of the Grade II-listed buildings have been retained, including a glorious entrance arch to the development.
These new homes are ideal for enjoying the best that London has to offer. Bustling Southall is a short walk from the front door, while the station, with speedy services to central London and beyond, can be reached in less than two minutes. The 302 studio, one, two and three bedroom apartments here have been created with modern living in mind, with open-plan living/dining areas, large windows to let in plenty of natural light and underfloor heating. As well as private balconies, residents will also have access to podium gardens and landscaped courtyards.
This new collection of homes lies along a pretty stretch of the Grand Union Canal in a quiet residential area, and with excellent transport links close by. The 46 apartments range from one to three bedrooms and are available to buy through shared ownership. All of the homes benefit from a private outdoor space, while inside they have been designed and finished to a high standard. The open-plan living/dining areas feature quality white gloss kitchens with integrated appliances and sleek wood-effect flooring. Some parking is also available for residents.
stbernardsgate.co.uk
redrow.co.uk
octaviahousing.org.uk
*Based on a 35% share of the full market value of £342,500
*Based on a 35% share of the full market value of £255,000
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AFFORDABLE HOMES
BARKING RIVERSIDE THE NEXT FIRST TIME BUYER HOTSPOT
THE SECOND PART IN OUR SERIES LOOKING AT L&Q’S BARKING RIVERSIDE REGENERATION PROJECT – THE LARGEST OF ITS KIND IN THE UK
Often it is newly discovered locations which prove best for first time buyers. Being able to find a home in a spot on the cusp of significant change can prove immensely exciting and rewarding, not to mention homes are often better value than those in neighbouring areas
Barking Riverside is an unrivalled example. One of the largest regeneration projects in the UK, the 15-year scheme will see a 2km stretch of south-facing Thames frontage become home to 10,800 new houses and 65,000 square metres of commercial floorspace. Positioned in Barking, London’s most affordable borough where prices are 40% lower than the London average, homes at Barking Riverside will be genuinely within reach of first time buyers. Growing families will benefit from seven schools serving the completed scheme with four already being delivered. The country’s largest free school, Riverside Campus, opened in September 2017, with capacity for 2,600 students. This brand new £45 million complex houses three separate schools, as well as state-of-the-art
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facilities including a four-court sports hall, four multi-use games areas, an all-weather Astroturf pitch, two dance studios, fully equipped science labs and an impressive main hall. Already reporting excellent GCSE and A Level results, Riverside Campus paves the way for more topperforming schools to establish themselves at Barking Riverside, giving parents huge flexibility to select the very best for their child’s education. London’s only district to adopt the NHS Healthy New Town initiative, Barking Riverside is set to incorporate a wide range of health measures right from the planning stages. Designed to blend health and care services seamlessly into the growth of the town, the scheme aims to make it much easier for residents to live healthier lives. A key element of the initiative is the network
of cycle routes, winding their way along the river and through every stage of the Barking Riverside development. Other crucial infrastructure in the pipeline includes a new Barking Riverside station, due to open in 2021 as part of a £263 million extension to the London Overground network. Once up and running, residents at Barking Riverside will be able to reach central London in just half an hour. Regular bus services currently run to and from Barking town centre’s train and tube stations, connecting those already living in the scheme to the city. Barking Riverside: A Giant Leap for London. The first phase of homes, Parklands, launches in autumn 2018. For more information and to register interest, visit: barkingriverside.london
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AFFORDABLE HOMES
A BETTER WAY TO SHARE
With property prices at a premium, it isn’t easy for millennials to save up the deposit required to buy their own home. However, thanks to shared ownership with Orbit at its Garland Place development in East Sussex, one young couple have been able to take a confident first step on to the property ladder Tim Hamilton, 23, and Natasha Huth, 24, were still living at home with their families when Natasha’s parents decided to downsize and move into a smaller house. This seemed like the perfect time for them to start house hunting themselves, but they were daunted by the size of the deposit they would need, despite being able to live with Tim’s father while they saved up. Fortunately, Natasha’s sister and one of her cousins had each recently bought their first homes through shared ownership, and they were happy to extol its benefits to Natasha and Tim. Tim explains, “They told us how shared ownership would mean that we could buy an equity share of a new build property, and pay a Government-subsidised rent on the rest. It also meant that we only had to pay a deposit on the part we were purchasing, so saving up for it suddenly became significantly less daunting!” The couple were lucky to have the help of Natasha’s aunt and uncle, who had become very familiar with the shared ownership process thanks to their own daughter’s experiences with the scheme. Tim is also quick to point out they were very happy with the support they received from Orbit. “We’d looked at buying with other developers, but just didn’t get the impression they were interested in helping us. With Orbit it was completely different. The sales staff were so welcoming, and very keen to ensure that we could comfortably afford the home we wanted. We felt properly looked after!” Shared ownership is open to purchasers who have an annual household income of less that £80k (and £90k within London), so Tim, who is a computer store manager, and Natasha, who is a supervisor for a wellknown coffee shop chain, were able to buy a 35% share of a two bedroom house. They plan to buy further shares through a system known as staircasing, which means that over time they can work towards outright ownership of their home, just like purchasers who take the conventional property-buying route. As and when they can afford it, they can opt to increase their equity share of the house, and so pay less rent proportionately. Tim and Natasha are keen walkers, (they even trekked up Devil’s Dyke on their first
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date, three years ago), so despite being in their early 20s they are loving the peaceful, country lifestyle at Garland Place. They are very happy to have plenty of space to call their own and yet be within 15 minutes of the bright lights of Brighton when they do want some excitement. “We are very grateful to my dad for letting us live with him while we saved our deposit,” said Tim, “but we are so happy to be here! We love the country lifestyle and the peace and quiet, and we are still so excited that every room in the house is just OURS! Obviously you love your siblings, but it doesn’t necessarily mean you want to share a bathroom with them!”
Tim and Natasha are also enjoying the freedom to have friends over to socialise, and according to Tim, there is plenty of space to allow them to host in style, “We absolutely love entertaining, and we’ve easily managed to seat eight people around the table for a dinner party. It’s amazing how many of our friends have asked us for more information about shared ownership at these gatherings. I think we may have started a trend!” For information on further shared ownership availability at Garland Place, and on offer at other Orbit developments throughout the region, visit orbithomes.org.uk
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AFFORDABLE HOMES
LONDON RIVERSIDE LIVING – MORE AFFORDABLE THAN YOU THINK
Do you live or work in a London borough, but are finding it hard to get a foot on the property ladder? If so, then you could qualify for one of Berkeley Homes luxury manhattans – one or two bedroom apartments at Royal Arsenal Riverside, Woolwich, in Pavilion Square through its Discount Market Sale scheme (DMS), which requires just a 5% deposit
This scheme in partnership with the Royal Borough of Greenwich could make buying a luxury Berkeley Home more affordable and see you pay a capped sum equal to 80% of the open market value of the property. Meanwhile, the remaining 20% will be held in perpetuity by the Royal Borough of Greenwich. Royal Arsenal Riverside has undergone a major transformation since its origins as a military arsenal over 400 years ago, and Pavilion Square nestles alongside two of the oldest buildings on the site. Inspired by the development’s history, interiors offer a modern twist on a vintage warehouse feel. Residents will also gain exclusive membership to the five star facilities in The Waterside Club which features a 20m swimming pool and vitality spa pool, state-of-the-art fitness equipment, massage treatment room, sauna and steam room, high-tech private cinema room and dedicated 24-hour concierge service. Omolara Sanni, 25, who had previously been renting at Royal Arsenal Riverside for three years, recently purchased her first property in the Kinetic building through DMS and said, “I would certainly recommend the DMS scheme as I thought why continue to rent when I can buy? It has also enabled me to continue living and running my own fashion design business, in an area that I love. “Royal Arsenal Riverside has everything that you need in regard to shops, restaurants and great transport
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connections, which will get even better once Crossrail arrives in December. As a mother of a young child I was also drawn to the security of the apartments and it also meant there has been no upheaval in regard to schools which has given me the stability I needed. There is also a real community feeling here and regular events such as the RARE Farmers’ Market which helps to bring people together.” In order to qualify for DMS, potential purchasers must meet the following criteria: Be a resident or employed within a London borough Earn a gross annual household income which does not exceed £90,000 Be unable to purchase a suitable home to meet their housing needs on the open market Do not already own a home and will be the owner occupier of the property If you wish to later re-sell your home, you must first offer to sell the property to the Royal Borough of Greenwich for no more
than 80% of the open market value at the time of sale. If contracts are not exchanged within six weeks of your offer, you will be free to sell the property on the open market, provided you pay 20% of the open market value to the Royal Borough of Greenwich on completion of the sale. The Royal Borough of Greenwich and the second owner will then apply to remove the Restriction on the title of the property. For more information visit the sales and marketing suite – open 10am to 6pm – late night opening on Thursdays until 8pm. Imperial Building, No.2 Duke of Wellington Avenue, Royal Arsenal Riverside, Woolwich, London SE18 6FR. royalarsenalriverside.co.uk 020 8331 7310 TYPICAL EXAMPLE Market value
£400,000
Price you pay
£320,000
Discount (20%)
£80,000
First Time Buyer August/September 2018
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AFFORDABLE HOMES
ONE OF LONDON’S LAST HIDDEN GEMS
Ticking all the right boxes – a vibrant community, amazing transport links, green spaces and affordable, these stylish one, two and three bedroom So Resi shared ownership apartments offer perfect town and country living
So Resi Sydenham, part of the popular Dylon development, are beautiful, sleek, spacious and light-filled homes offering contemporary living at its best. Apartments on the ground floor open on to private terraces and on the upper floors there are private balconies overlooking the pretty communal courtyard. Smart kitchens are very well-equipped and come with integrated appliances including a Bosch oven, hob, cooker hood, microwave, dishwasher and fridge-freezer. The luxurious bathrooms are spacious and some apartments also have en suite shower rooms. The open plan kitchen/diners feature elegant full height windows creating a lovely light-filled living area, and the excellent sized bedrooms also include built-in wardrobes. Throughout, storage is plentiful and has been planned so there is space for everything, meaning no worry of clutter or mess. There are also electrics and plumbing for a washer/ dryer in the hallway cupboard.
The apartments come with a secure video-entry system, a dedicated parking space, cycle storage and a lift.
IT’S ALL ABOUT LOCATION! So Resi Sydenham is the ideal location for commuters as it’s just moments away from the entrance to Lower Sydenham station where it takes just 15 minutes to London Bridge, 28 minutes to the City and 29 minutes to Canary Wharf. At the gateway to fashionable Beckenham with its lovely village atmosphere and independent boutique shops, delis, cafes, pubs and restaurants, plus several parks, the development is surrounded by gorgeous leafy green spaces. The iconic Crystal Palace Park is a stone’s throw away and whether you want to picnic by the lake, take in the famous Victorian dinosaurs, visit the sports stadium or go to the concert bowl, you can happily while away many happy
hours. Equally well-known, the Horniman Museum in Forest Hill boasts stunning gardens, an aquarium and an antique Victorian conservatory. So when it comes to spending quality down-time, you will be spoilt for choice in Sydenham’s thriving neighbourhood. Coffee specialists, a vegan cafe, library, culture centre and independent bookstore are complemented by a monthly artisan market also offering mouthwatering street food. If you want to unwind in the evenings and weekends then head to The Golden Lion with its live music scene and film club or get fit at the Bridge Leisure Centre – there truly is something for everyone!
BUYING A SO RESI HOME So Resi by Thames Valley Housing (TVH) redefined shared ownership by making everything clear and uncomplicated so you understand every step of the way. You buy a share of your home, with a lower deposit, smaller mortgage and monthly payment on the rest. You start
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by buying the share that’s right for you, between 25%75%, and then over time you can buy extra shares until you eventually own 100%. Apart from your monthly mortgage payment there is also a payment to TVH for the share of your home that Thames Valley owns. You will also pay a service charge which pays to look after the building you live in. You can always sell your shares if you decided to move on.
SO RESI PLUS When buying a new home with TVH you can choose to sign up to So Resi Plus, which provides much more flexibility. You can choose to buy 1% extra of your home each year at a price you know from day one, with no extra costs to worry about including solicitor’s fees or valuation fees. Prices at So Resi Sydenham start from £94,375 for a 25% share with a full market value of £377,500 for a one bedroom apartment with a balcony and parking space. A 5% deposit of £4,719 is required. soresi.co.uk/Sydenham
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AFFORDABLE HOMES
THE HOTTEST TIME TO BUY A HOUSE? Ana Elia, Senior Sales Manager at SiteSales Property Group, gives some top tips to secure your dream home
The end of the summer season is a great time to buy a home in the UK. With children on school holidays and many people heading abroad, it provides the ideal period to start the journey to buying your first home. We see strong competition for homes on many new build developments. Our expert sales team will support you along the way, but a little practical preparation can help you best prepare to secure your dream home and know what to expect when visiting show homes and marketing suites.
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Book an appointment Call ahead to book an appointment to guarantee one-on-one time with a sales consultant. Having an appointment means the viewing can be tailored towards your requirements.
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Take notes and photos and a brochure There is a lot to process so taking notes and a brochure, as well as requesting the consultant emails additional information, will make it easier for you to reflect on your visit in hindsight.
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Ring ahead to see if there is anything you need to bring You may fall head over heels with the property and want to reserve on the day so there’s no harm in bringing identification, proof of address and a payment card.
3
Ask about tenure Tenure refers to the type of financial arrangement that the property is being sold under. This could be private sale, shared ownership or shared equity. Before you visit, find out what is available and what you are eligible for.
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Get advice Don’t be afraid to bring a member of your family or a friend for a second opinion.
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Show seasonal foresight With the sun shining and flowers blooming, it can be easy to lose yourself in a summer haze. Properties usually look their best in the summer months but you should remember to check that your ideal home is properly equipped to deal with our less than mild winters.
Take a tape measure If you have existing furniture or you want to find out what will fit, you will want to get an idea of the space in the show home or apartment.
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Ask questions galore – In the heat of the moment it’s easy to forget to ask important details such as:
Am I able to make changes to the property? When is the completion date of the development? What are the deadlines for exchange from the day I reserve? Who are the recommended solicitors? Are there extra costs such as a service charge or ground rent? Is the property freehold or leasehold? Is there parking on the development? How far is the nearest station or transport links? Is there a residents’ association? What facilities are on site – eg bike store, gym, communal areas, concierge? Are there any sub-letting restrictions? How much is the deposit? How much Stamp Duty do I need to pay? Is there any new build warranty and what does it cover?
Taking all of this into consideration and doing some research and planning in advance can make a huge difference for potential buyers in securing their brand new dream home.
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AFFORDABLE HOMES
A PIECE OF CINEMATIC HISTORY WITH L&Q L&Q is launching a collection of 27 one and two bedroom shared ownership apartments on the site of the former Denham Film Studios, a 1930s Art Deco film studio in South Buckinghamshire. Once the largest film lab outside of Hollywood, local residents will soon have the opportunity to purchase a piece of British cinematic history through L&Q’s affordable homeownership scheme The studio was originally designed by Walter Gropius for renowned film producer and director Alexander Korda in 1936. At the heart of the British film industry in the 20th century, classic films such as Brief Encounter and Great Expectations were shot at Denham Studios. Film stars Elizabeth Taylor and Laurence Olivier were regulars there, while directors Steven Spielberg and Stanley Kubrick viewed first cuts of their films on site. Several Bond films were processed at Denham, including Quantum of Solace and Skyfall, and the studios were also often used to record film scores – best known for Alfred Hitchcock’s Vertigo, as well as the classics Chitty Chitty Bang Bang and Star Wars: The Empire Strikes Back. Intervening in the site’s star-studded history, the lot was taken over by the US military during the second world war. Denham Film Studios was used by US forces throughout the war to review confidential photographs and film footage taken in Europe. Christine Osborne, Sales and Customer Services Director for L&Q’s Counties Region, said,“Traditionally, L&Q has focused a high proportion of our development activity within the M25. However, as part of our ambition to deliver 100,000 new homes, we are delighted to be offering such unique affordable housing outside of the capital. Honouring the site’s rich history, residents will have the opportunity to live on streets including Stanley Kubrick Road and Noël Coward Avenue. Our shared ownership homes at Denham Film Studios provide
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Computer generated image is intended for illustrative purposes only
a pocket of affordability in the heart of leafy Buckinghamshire countryside. With nearby Denham railway station connecting to central London in just 25 minutes, we are expecting large amounts of interest from city workers looking for a tranquil escape from busy London.” Situated in Buckinghamshire countryside, the peaceful village of Denham feels worlds-away from central London. A parade of local shops is just a short walk from the development, offering a small supermarket, the village butchers, a post office and a selection of restaurants and takeaways. Neighbouring Gerrards Cross is just a four minute train journey; home to a collection of independent boutiques, busy cafes and pubs, as well as two
large supermarkets. For more comprehensive shopping, Intu Uxbridge Shopping Centre is just a five-minute drive from the new homes. Perfect for nature lovers, Denham is surounded by Colne Valley Regional Park. With more than 200 miles of river and canal and over 60 lakes, residents will get a real taste of the countryside right on their doorstep. Home to several golf courses, Colne Valley Park also offers easy access to Denham’s 18-hole golf club, complete with bar and dining room. Situated within the capital’s commuter belt, L&Q @ The Denham Film Studios is just a short walk from Denham railway station, connecting to London Marylebone in just 25 minutes. The development also has quick access to the
A40, M40 and M25, providing road links to London Heathrow Airport in just 15 minutes. The stylish homes at Denham Film Studios are complete with integrated Electrolux appliances, while bathrooms feature Roca sanitaryware and chrome finishes. Plush carpet is fitted to all bedrooms, and master bedrooms have a built-in wardrobe. Each home also comes with a video entry system, allocated parking and private outdoor space. Priority will be given to those who live or work in South Buckinghamshire. To register your interest in shared ownership at Denham Film Studios, visit lqpricedin.co.uk/ denhamfilmstudios @LQPricedIn
First Time Buyer August/September 2018
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AFFORDABLE HOMES As one of the UK’s leading housing providers, Metropolitan owns and manages a portfolio of 38,000 homes nationwide. Clapham Park is one of Europe’s largest regeneration developments. The regeneration is all about making Clapham Park a better place to live for everyone. As well as the brand new homes and refurbishments, there will also be a new school, a new nursery and a range of retail and community facilities. And Clapham Park will be getting greener. Open spaces will account for 15% of the total area, with additional parks, play areas, gardens and quiet spaces to be linked together by a network of green avenues. Almost 40,000 square metres of dedicated play space will be provided – that’s more than three times the required amount for a neighbourhood of Clapham Park’s size – with age-appropriate facilities for children and young people. Sustainability is key to a design that includes energyefficient homes, living roofs to support bird and insect life, solar panels to power the lighting in communal areas and bat or bird boxes for every building. There will be a new pedestrian-friendly “super crossing”, improved walking and cycle routes, 4,000 bicycle spaces and two new bus stands. By encouraging people to leave their cars behind, the ambition is to improve air quality and residents’ health and wellbeing. For drivers, there will be a wide range of parking options available, including spaces served by electric vehicle charging points, up to 10 new car club bays and more disabled parking spaces. The first phase of new build homes at Clapham Park will be released in August 2018. Located on Kings Avenue, the new development will consist of 164 one, two and three bedroom apartments available for outright sale, 37 apartments for affordable rent and a nursery. Built to meet the current market high standards, the new homes will allow their residents to move in and enjoy the best
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METROPOLITAN TRANSFORMING CLAPHAM PARK AS PART OF A 17-YEAR MASTERPLAN
In March 2018, Lambeth Council gave Metropolitan’s revised planning application for Clapham Park the go-ahead, approving the building of more than 2,500 new homes in addition to the 500 already built and 700 refurbished. A new community hub will also be created, which will include a multi-use community centre and new shops of London living straight away. There are only a few areas in the capital that could offer more than Clapham. Surrounded by plenty of green areas and conveniently located to access Clapham High Street, Brixton and central London, people will be spoilt for choice. It’s the ideal location for anyone aspiring to quiet residential living while remaining well-connected to the rest of the city.
Home to a diverse range of cultures and an open and unique history that mixes attitudes, experiences and ideas, Clapham Park is Metropolitan’s largest regeneration project. With high quality homes, green open spaces and tree-lined avenues interwoven with clean streets and safe pathways, Clapham Park is set to provide an attractive and engaging home for anyone looking to put
down roots of their own as well as making it a better place to live for all its current residents. To find out more about the new Clapham Park homes available for sale, please contact Metropolitan Sales on 020 3535 2555 or at mhosales@metropolitan.org.uk For information about the Clapham Park master plan, please visit metropolitan.org.uk
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AFFORDABLE HOMES
STUNNING RIVERSIDE HOMES Caravel Court is a new collection of two and three bed apartments nestled beside the River Adur at the point just before it reaches the historic lighthouse and harbour of Shoreham-by-Sea The idea of living in this wonderful coastal location, yet surrounded by all the amenities needed for a modern lifestyle, is like a dream. So it’s not surprising that interest has been huge, even before the show home opened its doors. Caravel Court is an attractive modern development that blends comfortably with its natural environment while making its own confident design statement. Each apartment offers a streamlined kitchen with integrated washer/dryer, dishwasher and fridge-freezer, together with a stylish bathroom equipped with contemporary units and attractive tiling. The open-plan living areas are light and spacious, while decor is attractive and understated throughout. Every home boasts its own balcony where you can enjoy the fresh air. The apartments are available on a shared ownership basis, offering a smarter and faster route on to the property ladder and meaning that Caravel Court really is a once in a lifetime opportunity.
football or enjoying a day at the races, Brighton has the lot. There are also regular bus services to local villages, and Shoreham even boasts a fully functioning airfield, though you might find Gatwick a more useful option for most international destinations.
MAKE YOURSELF AT HOME
BE BESIDE THE SEASIDE Shoreham is one of those little seaside towns that offer so much more than you’d expect. Who would have thought you’d have so many shops and restaurants, so close by? There are historic buildings, beautiful churches and charming cottages. The harbour itself is an active commercial port and the seafront is full of smart new developments. If you enjoy sailing you couldn’t ask for a better place to live, but it’s not just mariners who fall in love with Shoreham-by-Sea. There are wonderful walks along the South Downs, taking in the rolling chalk cliffs of the Seven Sisters, magnificent sea views and ancient hillside carvings such as the White Horse and Long Man. There are some memorable pubs too. Take the 15th century Tiger Inn with its oak beams, log fire and view across the village
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green at East Dean, or the award-winning Bull at Ditchling which will welcome you with a drink at the end of a long day’s walk.
YOU’RE WELL CONNECTED Shoreham has its own railway station and you can be at London Victoria in just 1 hour 10 minutes. But who needs London when you have Brighton just down the road? One of Britain’s most vibrant and exciting towns, Brighton has world class restaurants, colourful nightlife, a famous pier and celebrated seafront that attracts people from far and wide. Whether you’re spending a day exploring the Royal Pavilion, strolling through the Lanes, going up the world’s thinnest observation tower, following the
Living at Caravel Court, you are so close to the sea you can actually hear the waves. Coming home after a hard day at work, this is the perfect place to open the windows, put your feet up and unwind. You’re a short stroll from the high street shops and the local museum with its distinctive chequerboard facade. Inside it reveals some intriguing surprises about Shoreham’s history as a movie making centre. The local pub is also within walking distance, as is the Into the Blue fish restaurant.
BOOK AN APPOINTMENT With so much going for Caravel Court, it pays to book a show home visit as soon as possible, especially as the remaining apartments in this very special development will certainly be snapped up soon. During your appointment, you can also discuss some of the shared ownership options available. With shares available from 25% and monthly outgoings from under £1,100, you’ll be amazed how affordable a new home could be. You can book your viewing on 0300 555 2171 or by visiting shosales.co.uk/caravelcourt
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AFFORDABLE HOMES
REDWING LIVING OFFERS AN AFFORDABLE WAY TO STEP ON THE LADDER Liverpool-based Redwing Living has been providing beautiful homes across the North West for more than 50 years. With properties ranging from city centre apartments to beautiful semi-rural homes, Redwing Living offers a range of options for first time buyers to get their feet firmly on the property ladder. Shared ownership and shared equity are just two options that Redwing Living provides. Both are affordable and simple ways to ease the first time buyer process. But despite both having unique benefits, they are often misunderstood – so what is the difference between the two? Shared ownership is an affordable way of buying your own home. You simply buy a share in a property that is right for you – usually between 25% and 75% of the property’s market value – and pay rent on the remaining share. Any mortgage you need will be smaller and, as the rent is subsidised, the total cost is cheaper than buying the property outright. The amount of rent you pay will depend on the size of the share you are buying – so the greater the share you own, the lower the monthly rent. Shared ownership also offers flexibility in homeownership; you can increase your share at any time through a process called staircasing, with the chance to own your home outright. Shared ownership is a great way to step on to the property ladder, with a lower initial deposit required than with traditional outright sale mortgages, and the chance to increase your share as and when you can afford to. Meanwhile, shared equity is also an easy way of affording your own home. You buy a property as normal, but with one exception – you don’t buy all of it. Under shared equity, you will normally buy an 80% share in a property, with the remaining 20% owned by Redwing Living. Unlike shared ownership, however, you won’t need to pay any rent on the remaining 20%, although you cannot staircase and buy more shares in your property – the remaining share will remain owned by Redwing Living. Shared equity provides advantages for buyer and seller. For you as a first time buyer, the advantage of shared equity is that
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Buying your first home can be a daunting and drawn-out experience, and the costs involved can lead to ftbs thinking they may never own a home. Fortunately, there are options available to make homeownership a realistic prospect, with affordable and accessible buying options available
Dukes Terrace, Liverpool
you won’t need to pay rent, and because you’ll be getting a mortgage for 80% of the property, your deposit and monthly repayments will be less than with an outright sale. For Redwing Living, we retain 20% of ownership, so when the time comes to sell your home, we will be entitled to 20% of the sale price. So, what’s best; shared ownership or shared equity? There’s no right or wrong answer to that question, it’s entirely down to your own circumstances, and each option has its own unique benefits. Both, however, break down the barriers to homeownership, and as a first time buyer they allow you an affordable and straightforward way of buying your new home. To find out more about how Redwing Living can help you take your first step on to the property ladder, contact the sales team today on 0344 736 0063 or email sales@redwingliving.co.uk. redwingliving.co.uk
The Foundry, Liverpool
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OPEN MARKET
CREATING A REAL COMMUNITY
Salix Living has unveiled its first properties for sale at an exciting new development in Swinton, Salford. The private sector leasing arm of Salford-based housing association Salix Homes has released the first six homes available to buy as part of a 160 property mixed-tenure development called The Poets in the popular suburb The development is the first for the housing association since becoming a registered housing provider in 2015. Owning and managing more than 8,000 homes in the North West, Salford Council transferred its housing stock to Salix Homes three years ago. Since then, it has been working hard to help build new homes and regenerate neighbourhoods, helping to create sustainable communities and provide much-needed affordable housing. Its first project is to redevelop the Beechfarm Estate, also known as Poets Estate, where numerous properties were affected by historic structural issues. Jonathan Drake, Service Director at Salix Living, said, “Many of the residents had lived there for at least 30 years, bringing up their families, and there is a real thriving community. They were obviously worried about what was going happen to them and where they would live when the estate was being redeveloped. So we created a steering
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group, made up of residents, councillors and representatives from Salix Homes, who voted to sympathetically redevelop the estate and demolish 146 homes. We are now replacing them with 160 new properties, 40 of which will be for outright sale. Affected residents were temporarily rehoused nearby, and anyone who was affected is being offered a new home. Many people have now moved back in, retaining the thriving sense of community. “The Poets Estate is so called due to the surrounding streets being named after famous wordsmiths. These include Shakespeare Road, Wordsworth Road and Tennyson Road, and we have named our new development ‘Poets’ to reflect this.” The first phase of six private homes will be available to buy off-plan in September, followed by another 34 next year. The two and three bedroom contemporary homes have been stylishly designed with integrated appliances in the kitchen,
Porcelanosa tiling in the bathrooms plus off-street parking, turfed garden areas and a timber garden shed. Jonathan continued, “Our aim at Salix Living is to offer affordable homes to not only help people get on the property ladder, but also to give them a sense of belonging. This is an exciting time as we continue to work together with local communities to make this area an even more attractive place to live and work. There is already a strong community group on The Poets Estate which has created a lovely communal garden where residents can relax and meet their neighbours. “This is just the start for Salix Living, and through our parent company Salix Homes we aim to have 400 new homes either delivered or in development by 2020, and play a major role in providing much needed homes in the area. Whether renting or buying, we are totally committed to helping people find a place they can call home and start to put down those allimportant roots. The development is within walking distance of Swinton Shopping Centre, and close to local shops, schools and amenities. With excellent transport links to Salford, Bolton and Manchester, there are also two local train stations and motorway connections nearby. Prices are yet to be confirmed, but two bedroom homes are expected to start at around £140,000 and three bedroom homes from £155,000. poets-swinton.co.uk salixliving.co.uk
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MORTGAGES
HOW TO PREPARE YOUR FIRST MORTGAGE APPLICATION Which? mortgages expert Stephen Maunder explains the key steps you’ll need to take
Unless you’re fortunate enough to be a cash buyer, you’ll need to get a mortgage when buying your first home. When applying for a mortgage, you can either go it alone or use a whole-of-market broker such as Which? Mortgage Advisers. A broker can help you find the best deal for your circumstances and guide you through the process from start to finish. Whichever method you choose, it’s important to not rush into applying, as rejections from lenders can have an adverse effect on your credit report. With this in mind, we have put together some top tips
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on on how to prepare for your first mortgage application.
IS NOW THE RIGHT TIME TO APPLY? The first thing to ask yourself is whether the time is right, or if holding off for a while might help you save a bigger deposit or sort out any outstanding financial issues. First, you’ll need to think about your career. Are you in steady employment with a regular income? It’s best to wait until you’ve been in a role for at least six months
and are out of any probation period before applying. Likewise, if you’re thinking of moving job, you might be better waiting until after you’ve secured your mortgage – security of income is very important to mortgage lenders. If you’re self-employed, it’s still possible to get a mortgage – though you might need to jump through a few hoops first. Lenders will want to see audited accounts to show your income, and the more evidence you can provide the better. As a rule of thumb, most banks will require 2-3 years of accounts signed off by an accountant.
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MORTGAGES THE ROLE OF THE CREDIT REPORT
F I V E T H I N G S T H AT C A N S L O W D O W N Y O U R M O R T G A G E A P P L I C AT I O N
As well as looking at your current income, lenders will use your credit report to assess how risky it would be to loan you money. While it’s possible to get a mortgage with adverse credit, having a good credit history will put you in a far better position to get a good deal. With this in mind, it’s best to take a look at your credit report 6-12 months before applying to see if there are any issues or errors you need to address. The three biggest credit agencies are Experian, Equifax and Callcredit.
Mistakes on statements – even a simple misspelling of your name on a bank statement or pay slip (for example Steven rather than Stephen) can prevent a lender from accepting them as evidence, so ensure even the minor details are checked and double checked. Changing your name after marriage – if you change your name after marriage, you’ll need to have evidence of making this switch, or lenders may struggle to verify your identity. Don’t leave it until you’re applying for a mortgage to inform your bank. Submitting your tax return at the last minute – if you’re self employed, you’ll need to show proof of your income for the current year (dating back to the last October) by showing your SA302 tax calculation. You can only get this once you’ve submitted your tax return. Proof of how you’ve built up your deposit – lenders won’t just ask how much you’ve saved, they’ll ask how you’ve saved it. When they look at your bank statements, they may ask you to explain any unusual transactions – and if you’ve been gifted a deposit, you’ll need a letter from whomever gave it to you. Using scanned documents instead of the original – failing to provide original documents can delay the application process, as scanned copies won’t be accepted. You may need to go into a branch to get your bank statements formally printed – printing them yourself on online banking won’t suffice.
CHECKING YOUR CREDIT REPORT Sometimes credit reports contain mistakes – for example, perhaps an old mobile phone bill that you have paid off is still showing on there as a default. If this is the case, you should contact the credit agency and the supplier in question to get this corrected as soon as possible. If your credit history isn’t very strong, it might take you a little while to clean it up, as missed payments and debt problems can leave a mark for a number of years. On the other hand, you might also face problems if you have no credit history at all – as odd as that might sound. Lenders can be reluctant to offer credit to those who haven’t previously demonstrated a history of paying back money they’ve borrowed. If this is you, one option could be to take out a credit card and spend small amounts on it, repaying this in full every month. Lenders also look at your available credit, so if you have some dormant credit cards it could be a good idea to close these accounts down.
ARE YOU ON THE ELECTORAL REGISTER? Being on the electoral register can be vital to your mortgage application. The electoral register is used by lenders to check your identity and address, so you’ll need to make sure you’re registered at your current property. You should be able to see on your credit report if this is the case.
DOCUMENTS FOR A MORTGAGE APPLICATION If you’re happy with the size of your
deposit and the state of your credit report, you can now begin to get the documents together for your application. Even if you’re using a broker, having these to hand can help speed up the process. Proof of income: Payslips from last six months and your most recent P60. If you’re self-employed, accounts and tax assessments for the last three years. Details of outgoings: Bank and credit card statements for the last three to six months, details of any loans or hire purchase agreements, and details of your monthly outgoings on bills. Proof of identity: Passport or driving licence. Proof of address: Utility bill, council tax bill and bank statements.
GETTING A MORTGAGE AGREEMENT IN PRINCIPLE This is when a lender agrees ‘in principle’ that they will give you a mortgage, subject to full checks and their approval of the property you want to buy (this is usually done through a valuation survey). A mortgage broker will be able to help you decide which lender to apply to, and help you through the whole process. Generally speaking, an agreement in principle doesn’t involve a full credit check – so at this stage the lender hasn’t yet formally agreed to lend you the money. Some buyers don’t get an agreement in principle (also known as a decision in principle) until they’ve found a property, but it can
sometimes speed things up if you get one in place earlier on in the process. In a competitive market, being able to show a seller that you have your finances in place might be the deciding factor in whether your offer is accepted. It’s worth mentioning that agreements in principle are only valid for a set amount of time - generally around six to nine months – so if your property search takes longer than that you may need to reapply.
FORMALLY APPLYING FOR A MORTGAGE Once you have your agreement in principle, you can set about finding the right property, safe in the knowledge of how much you should be able to borrow. Having found a home and had an offer accepted, you’ll need to formally apply for the mortgage. If you’re using a broker, they’ll do this for you. At this point, the mortgage lender will run a full ‘hard’ credit check (which will appear on your file afterwards), and will arrange a mortgage valuation on the property to check it’s worth the amount it is planning to lend to you. If your application is turned down this late in the process you may need to assess your options before applying again - as making multiple applications in quick succession can damage your credit score. Once all the checks have been made, you’ll be given a formal mortgage offer. Then, later in the process, your conveyancer (property solicitor) will arrange for the funds to be transferred to the person you’re buying the home from on your completion date. To find out more, visit which.co.uk/creditscore Your home may be repossessed if you do not keep up repayments on your mortgage
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FOR SALE
FOR SALE THE CREAM OF THE CROP Each month, FTB scours the market for the best starter homes for first time buyers. So, if you’re looking for your first home while keeping an eye on your budget, we hope you will enjoy our selection.
C AT F O R D , S O U T H L O N D O N
HOIC FIRST C
REAL LIFE
E
FAMILY
ES HO★M ★★ Affordable homes p72-3
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FOR SALE
AFFORDABLE HOMES COLLINGHAM, NOTTINGHAM
HOIC FIRST C
FROM £208,995
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FAMILY ES HOM ★★ ★
Collingham Brook The historic town of Collingham is the site of this new collection of homes, which range from one to five bedroom family houses. The project is a collaboration between Larkfleet and Gusto Homes, and will eventually see 80 new properties, with 24 available through shared ownership. The Larkfleet properties range from three to five bedrooms, and are beautifully designed, with spacious living areas, well-sized gardens, private parking and solar panels as standard for reduced energy bills. The homes are in a beautiful setting, with rolling landscapes, and the pretty town of Collingham – with a post office, medical practice, shops, school and pubs – is nearby. Larkfleet Homes 0845 450 7872 larkfleethomes.co.uk
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FOR SALE G A M L I N G AY, C A M B R I D G E S H I R E
FROM £300,000
FROM £60,625*
CHELMSFORD
Heath Road In the south Cambridgeshire countryside, with good commuting links, these six refurbished period cottages are ideal for those seeking a wellconnected rural life. The threestorey, three bedroom homes, have been extended and restored to the highest of standards, with a master bedroom and en suite
on the top floor. Downstairs, there’s a separate lounge as well as a vast open-plan living area and kitchen that opens to the rear garden. Cambridge is 18 miles away. From Sandy station, trains to London take 50 minutes. Kennedy & Co 01767 262 729 annington.co.uk
CAMPERDOWN, NEWCASTLE
FROM £40,000*
City Park West This major new development in Chelmsford will be home to almost 700 new properties, with a number of one and two bedroom apartments available through shared ownership. The contemporary homes feature bright, open-plan living areas, with engineered wooden flooring and stylish kitchens with
integrated appliances. The town centre is a short walk away, for a wide range of shops, bars and restaurants. It’s perfect for commuters – rail services from Chelmsford reach London Liverpool Street in 30 minutes. Notting Hill Genesis 01245 806 484 nhgsales.com
*Based on a 25% share of the full market value of £242,500
BARKING, EAST LONDON
FROM £314,500
Silverbirch This collection of two and three bedroom homes is around seven miles north of Newcastle. The family homes are in an excellent location, with shops, sports facilities, schools and amenities close by. The properties are beautifully designed in a variety of styles. The three bedroom homes are on two floors, with
separate living and dining rooms and additional WC downstairs, and spacious bedrooms upstairs. Transport links into Newcastle are great, with direct bus routes taking around 30 minutes. Riverside Home Ownership 0191 284 4853 riversidehomeownership
*Based on a 25% share of the full market value of £160,000
360 Barking This popular new development close to Barking town centre occupies a prime location, just moments from a leisure centre, theatre, town square and plenty of shops and restaurants. It’s also perfect for commuters; from Barking station, trains reach Stratford in just 14 minutes and the West End in under 30 minutes.
The stylish one and two bedroom homes feature bright, spacious living areas that open to a private balcony, sleek fitted kitchens, and an en suite from the master bedrooms. Residents will also share pretty landscaped gardens. Nu Living 0203 369 0157 360barkingig11.co.uk
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REAL LIFE
Help to Buy: Dartford, Kent 37-year-olds Chelsea Bailey-Reardon and Hannah Bailey-Reardon had almost given up on the idea of buying their own property, until Chelsea had a gift of £20,000 from the Bank of Mum and they discovered they qualified for the Government’s Help to Buy 20% equity loan scheme, which enabled them to buy a three bedroom townhouse at Barratt Homes’ Phoenix Quarter development in Dartford, Kent
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ith the couple having rented a one bedroom apartment FA C T F I L E for 18 months in nearby Sidcup, after moving out of east London Purchase price: £363,000 to try to save enough money to Deposit: £20,000 buy, they still found themselves Monthly mortgage payments: £942 spending £1,125 on rent each Service charge: Up to £1,239 per year month. Expecting their first baby in the summer, they were desperate to buy a family home to settle down in. Chelsea, who works in the treasury department for an African bank in Cannon Street, said, “I had always wanted to buy a home of my own but with both of us still keen to live fun-filled lives, we found it impossible to get together the £30,000 plus deposit that you need to be able to buy these days. We thought that by moving out to Sidcup, we would give ourselves a fighting chance of still having a life but being able to save enough money at the same time, however with our rent over £500 each a month, plus bills and a baby to save for, it was impossible. “In the end, my mum gifted us £20,000 as she saw how much we were struggling. We had savings of around £15,000 between us and this covered the costs of our Stamp Duty and furniture. Help to Buy made a huge difference to us; it meant that we could afford to buy a three bedroom townhouse, rather than a one or two bedroom flat, which would have been no use to us long-term for a family. It has made our mortgage payments much more manageable at £942 a month. That is cheaper than our rent in Sidcup, which is crazy, but perfect timing for when I am on stay living around Dalston or Shoreditch, maternity leave and have to start paying but for what you can get for your money in childcare costs.” these areas, it just didn’t make any sense. The Government-backed Help to Buy We would never have been able to afford to equity loan scheme allows any buyer of a buy a three bedroom house with a garden new home up to the value of £600,000 to and off-street parking in London. We both purchase with a 5% deposit. In total, the work around Cannon Street and trains scheme has benefited 120,864 homebuyers only take 45 minutes from Dartford station, across the country since it was launched in plus you always get a seat – unlike on the 2013, and in Kent, this figure amounts to a Central Line! total of 4,553. Of these, 3,636 equity loans Hannah continues, “Dartford is have been taken up by first time buyers, definitely on the up – the whole town like Chelsea and Hannah. centre is being regenerated with new Hannah, who is a firefighter with the wine bars and restaurants opening up all London Fire Brigade added, “Having lived the time and it is only going to get better. in North Kent for almost 10 years and with Bluewater is just down the road and there a lot of my friends based in the area, it are also lots of lovely country pubs on the made sense for us to look at buying here. doorstep, which we are enjoying the novelty I know that Chelsea would have loved to
“WE COULD AFFORD TO BUY A THREE BEDROOM TOWNHOUSE, RATHER THAN A ONE OR TWO BEDROOM FLAT, WHICH WOULD HAVE BEEN NO USE TO US LONGTERM FOR A FAMILY. IT HAS MADE OUR MORTGAGE PAYMENTS MUCH MORE MANAGEABLE AND IT IS CHEAPER THAN OUR RENT IN SIDCUP”
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of after having lived in London for so long. The amazing schooling options in the area were also a contributing factor. Phoenix Quarter is extremely well placed for the unrivalled Kent Thameside transport network, with each home located within a five-minute walk of a Fastrack bus service stop. Dartford station is just under a mile away providing trains to Victoria, Cannon Street and Charing Cross via London Bridge in less than 45 minutes. Ebbsfleet International Station connects residents with central London in only 17 minutes. Prices currently start from £268,995 for a two bedroom apartment at Phoenix Quarter, with Help to Buy available. To register your interest, call 0844 470 0565 or visit barratthomes.co.uk
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LEASEHOLD
SEALED WITH A KISS! I sometimes think that no one who works in flat management lives in a flat! This has to be true or otherwise they must switch off their home life experiences when they get to work. I say this from recent personal experience and also from my very long career in property management. In this article I am specifically referring to the inability of managing agents, and those involved in block management, to deal swiftly and effectively with correspondence My recent experience is a legal matter relating to the title of my home. My lawyer was waiting for the freeholder’s manager to reply to enquiries and provide costs for notices. I only foreshortened what had already been a long delay because I am involved in the business and could go to the top to elicit replies. For the majority of people it is really frustrating and increases costs and delays. Let us look at the situation when you are buying and consequently living in your leasehold home. There are infrequent occasions when you will want information, answers or formalities dealt with. These could be replies to enquiries, questions on the service charge, notices to be acknowledged or a whole manner of other interventions. To you it will be important and essential, to the manager it will be one of a large amount of correspondence they receive. The simple fact is that the management of residential property is a thankless task that is under-rewarded and can quickly become demotivating. Looking at each of these aspects you may get a better perspective.
A thankless task? Well in reality the only time the managers hear from the leaseholders is when there is a problem, they need something or in response to invoices raised. A number of the leaseholders will not be the most courteous in their communication. This all leads to a presumption that any email, call or letter will be abusive and a reluctance to open them let alone deal with them. When I had my management company Chainbow, a lot of time was spent training our team to put themselves in the leaseholder’s shoes, as well as to be open and transparent. This perspective can reframe situations and allow a dialogue that is open, rather than confrontational or challenging. Under-rewarded? Typically, the managing agent’s fee will be around £300 for each flat each year. This is to cover not only the manager, but also the accounts staff and the liability and risks on health and safety. That is not a lot in reality and depending on the number of flats in a
Roger J Southam Leasehold expert and advisor
building the total fee for the block may not be an awful lot. Consequently, the managing agents need to give their teams a large number of buildings to look after to make it profitable. The challenge, therefore, is to get first class service for a low fee. The one thing for sure with technological advances and algorithms is that there will be a major disruptor through technology to improve management services at the costs required. But that will be a later delivery, in the meantime the managers will need to improve their service skills. The large majority of the service charge you will pay is for maintenance and services which do not go to the managing agents – a common misunderstanding by even the most experienced leaseholders. Demotivating? Well enduring years of abuse, disrespectful communication and contention from leaseholders can certainly have a demotivating effect. It is like a constant tapping, it becomes quickly irritating and frustrating. None of this explanation is to make excuses for poor service, delays in replies, delay in service charge accounts or other poor handling. It is intended to give you the perspective of what goes on with managing agents for common parts and for the ground rent investor. I would therefore always advise the leaseholder to think about how they communicate in terms of tone and timing. For instance, it is no good saying every request is urgent, it merely devalues those that genuinely are. You may have had a dreadful day, and the issue with your home may be the final straw, but taking it out on the manager is never going to get the best reaction. Think about how you react when you receive awkward and challenging communication. You don’t need to seal your letters with a kiss, but an engaging email written with a smile can make it all the more appreciated and swifter to get an answer! Roger Southam, Leasehold Expert & Advisor rogersoutham.co.uk
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COMPETITION
MORE CHANCES TO WIN! We have extended the closing date for our survey into house buying. You now have until 31 July to let us know what you think about houses and housebuilders – and you could win up to £1,000 We have created an online questionnaire at tiny.cc/ftb-survey to capture the thoughts and experiences of people who have bought – or who are trying to buy – a new home. And we are already gaining some fascinating insights from the initial results. For example, it seems house buyers in London are less concerned about the running costs of their new purchase than buyers elsewhere. Just 36% of buyers in London rate ongoing costs, such as energy bills, as “very important” when they are choosing a new home compared with 51% of buyers nationwide. The initial survey results also show that house-buyers in London and the South are more likely to be dependent upon a mortgage to finance their purchase than buyers anywhere else in the country. Around 80% of buyers in London, the South East and the South West of England say that a mortgage was “the primary source of finance” for buying their new home. This compares with an average of 72%
across the country as a whole. Across the UK, almost 30% of buyers taking out a mortgage say they had some assistance with the deposit. That was most likely to come from parents (58% of those receiving help) with the next most frequent source being grandparents (10%). But we want to gather more data to get a picture of the housing market which is as accurate as possible. So, if you have not yet taken part in the survey, now is your chance to do so. Remember, you could win up to
£1,000 just for giving us your views – and it takes less than 10 minutes to do. Just log on to tiny.cc/ftb-survey. First Time Buyer magazine Editor Lynda Clark said, “We still want to hear from anyone currently searching for a new house or who has purchased a new house in the past 12 months. Everyone who takes part goes into a draw to win £500 and if you agree to take part in a follow-up telephone survey you could win an additional £500.” So, give us your views at tiny.cc/ftbsurvey. All the replies you give will be anonymous and you won’t get any sales calls or emails as a result of taking part. The research is being undertaken by OlsenMetrix Marketing (olsenmetrix.com) working with First Time Buyer and other partners. Survey responses will be anonymous. Names and contact details will be collected only to let you know if you have won one of the prizes and will not be used for marketing purposes. Further information is available on the survey website at tiny.cc/ftb-survey.
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COMPETITION
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FIRST MEAL
FIRST HOME, FIRST MEAL The perfect dish for a warm summer day, this charred tuna steak with pickled vegetables has been cleverly created by John Doyle, Head Chef at The Lost & Found Leeds Club
CHARRED TUNA STEAK WITH PICKLED VEGETABLES, SWEET CHILLI & SOY DRESSING AND LIME
INGREDIENTS Charred tuna steak (per person) 170g tuna loin 5ml sunflower oil Pinch of salt 15g spinach Lime wedge Micro coriander
Pickled vegetable mix 100g cucumber cut into half
moons 100g shredded carrot 25g shredded ginger 100g shredded mooli 100g shredded spring onion 75g bean sprouts 100g fennel (finely shaved) 100g radish (finely shaved)
Pickle 150ml water 100ml white wine vinegar 35g caster sugar 2 whole black peppercorns 1 bay leaf
METHOD FOR THE PICKLED VEGETABLE MIX 1
Mix all of the ingredients together in a large bowl.
FOR THE PICKLE 1
Cook all ingredients until they come to the boil while stirring continuously. Set aside to cool.
FOR THE SWEET CHILLI & SOY DRESSING 1 2
Pour some of the lemon juice into a small pan, add the sugar, heat and stir until the sugar dissolves. Pour into a bowl, add the rest of the ingredients and whisk together. (Please note that after resting for a period of time this dressing will split, so it needs to be whisked fresh every time it is served.)
FOR THE TUNA 1 2 3 4 5 6
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Brush the tuna loin with oil and season with a pinch of salt. Place on the grill to achieve good bar marks. Grill for approximately 2-3 mins per side, depending on how you like your tuna cooked. Place the vegetable mix you prepared earlier and some spinach into a mixing bowl, add the cold pickle and season with a pinch of salt. Leave for a few minutes to soften. Spoon the pickled vegetables on to a serving plate. Cut the tuna in half at an angle and place on top of the pickled vegetables. Mix the dressing and spoon over the tuna. To complete the dish, garnish with a wedge of lime and micro coriander.
Sweet chilli & soy dressing 75ml malt vinegar Pinch of crushed chillies 40ml lemon juice 25g demerara sugar 65ml sesame oil 50ml soy sauce 40g sweet thai chilli sauce
John Doyle never sought to be a chef. Fast forward 16 years and it’s something he could never leave. With no professional training, he spent his early culinary journey practising sauces and basic recipes at home, turning to cooking shows for inspiration. Having spent most of his career working for various premium high street operators including Living Ventures, he now heads up the kitchen at The Lost & Found Leeds Club. John enjoys experimenting with new and original ideas and notes there are always some testing hurdles along the way. Having trained on the job, he is a firm believer that you don’t need cookery school to learn how to be a chef – only the job can teach you that. the-lostandfound.co.uk
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FIRST MEAL
FTB’S FAST FOOD The go-to meal in the summer – everyone loves a good old BBQ! We tried and tested a selection of BBQ treats from the UK’s top supermarkets to see which were the tastiest BBQ FOOD
TEST WINNER
WAITROSE
MARKS AND SPENCER
CO-OP
TESCO
Yuzu & Miso butterflied pork fillet, £7; treacle cured flat iron steak, £7; buttermilk chicken king kebab, £7
Bramley apple teriyaki chicken tenders, £4; herby pork flatties, £4; best ever burgers, £3.50
Irresistible rib burger, £3.19; Irresistible skinny pork sausages, £2.99; Mexican bean and sweet potato burger, £2.25; sweet chilli chicken, £3.99
Minted lamb kebabs, £4; maple pork loin, £4; spiced cauliflower burger, £2.50
FTB SAYS: The selection from Marks
FTB SAYS: Tesco offers a varied
FTB SAYS: Waitrose’s selection of
and Spencer had a great variety.
BBQ food didn’t disappoint. The
The quality was to a high standard
buttermilk chicken kebab was moist
– the Bramley apple teriyaki chicken
FTB SAYS: The Co-op range is
to the usual kebabs and are
and tender and didn’t dry out at all
tenders were a fresh take on a meat
excellent value. The Irresistible rib
reasonably price too. The maple
which can sometimes happen when
which can sometimes be quite dull if
burger with cheese and pepper
pork loin was succulent and
you cook chicken on the BBQ. The
not seasoned well. The herby pork
sauce is a nice twist on a classic
satisfying and great for just leaving
treacle cured steak was very tender
flatties were moist and had just the
traditional burger, with just the right
on the BBQ to cook through nice
and juicy, and the Yuzu & Miso
right amount of herbs so as not to be
hint of pepper. The skinny pork
and slowly. The spiced cauliflower
butterflied pork fillet was aromatic
overpowering. To round off the M&S
sausages were light and fitted nicely
burger was very light and with a
and delicious, and for £7 was great
selection, the best ever burger really
in a hotdog bun! The Mexican
hint of spice it was delicate on the
value too. All the portion sizes were
lived up to its name and was great
bean and sweet potato burger is a
taste buds and a great option for
very generous too.
tasting and meaty – just what you
wonderful alternative and a healthier
a veggie guest. But beware if you
★★★★★
want in a burger!
option to your normal burger and
leave it on the BBQ for too long it
★★★★
great for all the vegetarians out
goes dry and completely crumbles!
there. If you’re looking to add a
Oops!
different feel to your BBQ the sweet
★★
range of BBQ food. The minted lamb kebabs are a great alternative
chilli chicken was delightful and had a refreshing taste to it.
★★★ CALLING ALL VEGANS Gosh’s range starts from £2.40 and is free from the top 14 allergens. All products are vegan and contain no palm oil. Products are available in most major supermarkets and their packaging is made from 70% recycled material. The sweetcorn and quinoa bites were a great hit with the FTB team – delicious little balls stuffed with sweetcorn and a hint of spicy harissa. The mixed seed quinoa, carrot and coriander bakes were just as tasty along with the sweet potato and black bean sausage. The range has some very interesting combinations of tastes and textures and certainly won’t break the bank either! goshfood.com
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FINANCE
Mortgage Clinic By David Blake, Principal Mortgage Adviser, Which? Mortgage Advisers
David Blake has more than nine years of experience in the financial services industry and prides himself on helping first time buyers get on to the property ladder. In his current role at Which? Mortgage Advisers, David (along with the entire team) provides independent, impartial advice and searches thousands of mortgage deals to help buyers find the deal that is right for them.
payments, as you will paying off a smaller loan and you will only be paying interest on 90% of the value of the property rather than on 95%. While there are numerous mortgage lenders offering mortgage products that only require a 5% deposit, there are still significantly more products that require a 10% deposit. As a result, you will find that you have more choice and probably access to better interest rates if you can afford a larger deposit. What are the benefits and costs of a shorter mortgage term? Mortgages are generally between 15 and 35 years in length. The longer the term, the cheaper your monthly repayments and the more you might be able to borrow. There are several benefits to choosing a shorter mortgage term. First, you will pay less interest over the course of the mortgage, which could add up to thousands of pounds. Secondly, you will reach the end of your mortgage sooner, giving you the potential for greater financial freedom in future. Another benefit is that when the time comes for your next move, you will have paid off a larger amount of your mortgage, meaning you will have a larger deposit to put down on your next property. The main cost of choosing a shorter mortgage term is that you will pay higher monthly payments. As a result, it may not be an option for you to select a 20, 15 or 10-year mortgage. Even if you can afford
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a shorter mortgage, it may restrict other activities in life, so you may want to opt for a longer term. The right mortgage term is the mortgage term that is right for you, given your individual circumstances. Therefore, it’s sensible to seek advice from an impartial, independent mortgage adviser who will be able to make a recommendation based on your current circumstances. How does a 10% deposit differ from a 5% deposit? In recent years, more lenders have opted to start offering mortgages that only require a 5% deposit, helping many people take their first step on the property ladder. It might be tempting to choose a mortgage with a 5% deposit even though you have the available funds to pay 10%. However, if you’re in this position you need to consider several factors. A 10% deposit will lead to lower monthly
My credit history is poor. Can I still get a mortgage? Having a poor credit history is something that can have a significant impact on the range of mortgages that are available to you and the price that you will pay for that mortgage. You may find that some lenders will not be prepared to offer as much money to you or will charge you a higher rate of interest. Generally, it can be better to clear your personal debt and build up a better credit score before getting a mortgage. However, it is all based on your individual circumstances, so do speak to a mortgage broker to discuss your options. You can find advice on how to check your credit score, and how you can improve it, on the Which? website. For further help and advice from Which? Mortgage Advisers, visit which.co.uk/ ftbmortgages, or call 0808 159 4852
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, FINANCE
The waiting game A new report says that first time buyers are putting marriage and children on the back burner as they struggle to get a foot on the housing ladder. Kay Hill looks at the relative costs of these life goals, and asks if it’s still possible to have it all? Yorkshire Building Society’s latest First Time Buyers Report, for which YouGov interviewed 1,000 people who had just bought their first home and 1,000 who hoped to buy in the coming year, has revealed some interesting insights into today’s new and would-be homeowners. On one hand, it seems, they are nothing but practical – 39% of those who hadn’t bought yet, and 33% of new owners, said that owning a property was the most important goal in their lives, above succeeding in education or career and far above getting married or starting a family. On the other hand, while their dreams may not be about confetti or bootees, they are possibly still daydreaming a little – the report reveals 32% of potential first-time homeowners are aiming for a detached house as their first property and 49% hope to buy a semi-detached house. Less than a quarter (24%) would be happy to settle for a studio or flat.
So how do the goals of property ownership, marriage and children compare financially?
BUYING A HOME – £43,357 The latest research from Lloyds Bank reveals that the average age of a first time buyer in the UK as a whole is 31, with buyers in London averaging 34 years old (in the 1960s the average age was 23). The average FTB purchases a property worth £210,515 using a £39,668 deposit and a £170,847 mortgage, while buyers in London spend an average of £420,132 with a £92,833 deposit and £327,299 mortgage. So how much does getting on the property ladder really cost? Well on top of the £39,668 deposit, our average UK buyer, borrowing 81% LTV using a top buy mortgage from Danske Bank (1.94% fixed for two years) would spend £8,030 in year one (MoneySavingExpert.com). For the London buyer, in addition to the £92,833 deposit and £6,006 Stamp Duty, a top-rated 78% LTV mortgage from Skipton Building Society, (2-yr tracker at 1.44%) would cost £15,590 in year one (mortgage figures from MoneySavingExpert.com). However, don’t forget that you will also save money on rent – according to Landbay’s Rental Index Report, tenants in London pay an average of £1,878 in rent a month, while in the rest of the UK the average is £762 a month. So, our average London buyer will actually save £6,946 a year by buying rather than renting,
and other buyers will save around £1,114 a year on rent. And the bottom line, factoring in £4,803 for legal and surveyors fees and home removal (Lloyds Bank Cost of Moving Home Survey), is that buying a home, moving in and paying mortgage rather than rent for the first year will set you back £43,357, or £96,696 in London.
GETTING MARRIED – £17,913 According to wedding planning website Bridebook.co.uk, which surveyed 4,000 recently married couples for its Marriage Report 2017 and Wedding Report 2018, the average age for a first marriage is 30.8 years for women and 32.7 years for men (in the 1970s it was 22.6 for women and 24.6 years for men), and 89% of couples are already living together when they marry. The survey reports that while the total cost of a wedding according to prices quoted by wedding suppliers is £30,355, because
,
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FINANCE most couples economise in at least some areas, the average amount actually spent is £17,913 (although that rises considerably for couples getting married in London, who spend an average £25,450). The honeymoon afterwards adds an extra £3,630, according to website Hitched. Of course, tying the knot isn’t in everyone’s life plan, but there are sound financial and legal reasons to consider getting married or civil partnered if you are buying a property together: Married/civil partnered couples enjoy significant inheritance tax benefits over their cohabiting counterparts as they are able to pass their wealth to the surviving spouse free of inheritance tax and they can also transfer any unused portion of their inheritance tax threshold to their spouse. The Marriage Allowance (also available to civil partners) is worth £238 per year to lower income couples. If one of a cohabiting couple dies, the other will only inherit the joint tenant’s half of the property if their partner has directed it in their will – if there’s no will, their estate will go to the legal next of kin (probably a parent or sibling).
HAVING A CHILD – £75,436 According to the Office for National Statistics, the average age of first time mothers increased to 28.8 years in 2016, up from 27.3 years in 2006 and around 25 years in the 1950s. The number of women who give birth over the age of 40 is now higher in the UK than the number of women who gave birth under the age of 20. The average dad is 33.3 years old. How much does it cost to raise a child? Scarily, about the same as the UK’s average house price, £230,000 (according to the Centre for Economics and Business Research). That’s what its report says is the cost of raising a child from birth to age 21, including £70,000 on childcare and £74,000
on schooling. A slightly less terrifying estimate comes from the Child Poverty Action Group, which states that to bring a child up with an acceptable minimum living standard (so no private schools) requires £75,436 up to the age of 18.
DO YOU HAVE TO CHOOSE? It’s notable that the ages for all three of these major life steps have gone up at a similar rate, and if you look at figures around the world, it becomes obvious that the common link is property prices. Other nations where settling down and starting a family have been pushed further and further back include Japan, Hong Kong, South Korea, Switzerland and Scandinavia, all notorious for high property prices. For some, housebuying will be the only priority; but if you really want to have it all, take a look below for some ideas of how it might be achieved.
over a stately home package, or consider a mid-week wedding. Ask family and friends to help with cakes, flowers, cars, photos and so on – people love to help out and it will make the occasion even more special. The Independent recently reported on a bride who had a beautiful wedding with 100 guests for just £1,000, while the legal ceremony itself is less than £150. Children – Until they hit their teens, most kids won’t even be aware if you buy everything secondhand, so save all you can before they notice! Try NCT Nearly New Sales where you can buy everything you need at a bargain price then sell it again the following year. Look for a good local childminder rather than an expensive nursery. Join a toy library, share babysitting with friends and make the most of free and budget activities at Children’s Centres and community playgroups.
HAVING IT ALL? The key to managing to buy a home, tie the knot and start a family within the space of a few years is two-fold – maximise savings and minimise costs. Homebuying – start saving early and regularly, making the most of Government schemes like Help to Buy: Isa or LISA. Find a home that is ready for you to raise a family in by looking at cheaper areas, or using shared ownership. Ensure you factor in periods of maternity leave or part-time working when considering the size of your mortgage, and think about transport, nurseries and local schools. Weddings – Many people complain they “can’t afford to get married”, when what they really mean is that they can’t afford a lavish wedding. Saying your vows surrounded by family and friends will make the day perfect on its own. Using a place of worship or registry office plus a community hall with a caterer will cut costs drastically
EXPERT COMMENT Rather than simply being a first step on the property ladder, it would appear first time buyers have a clear idea of what they hope their first property will be, and are not afraid to wait to get it. Our report shows that a quarter of first time buyers expect to have saved for at least five years by the time they buy, and one in 10 for more than a decade. While five to 10 years may feel like a long time saving, buying a house is one of the biggest financial commitments someone can make in life, and as one in five recent buyers expects to stay in their first home for 15 years or more, many are clearly looking for a longer-term or “forever” home. It’s good that potential buyers are considering what they want and need in a home and have clear aspirations to get a first house that meets their needs. In a housing market often deemed too tough for aspiring homeowners, it’s encouraging to see the strong ambition of first time buyers and the importance they place on owning a home, which for many is deemed the key milestone in life.
Chris Irwin Senior Mortgage Manager, Yorkshire Building Society
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MARKET
EXPERT COMMENT Families are an important and growing market and one which will contribute towards building real communities. Future Tipi buildings will take the needs of families even further, with purpose-built indoor children’s play spaces, outdoor paddling pools, pirate ships and sand pits. Tipi is for everyone and families are and will
Build to rent: One size no longer fits all
remain very much part of our rental community at Wembley Park.
Rajesh Shah Managing
As large-scale operators build more rental homes for families, could these be a long-term solution to the housing shortage? Ginetta Vedrickas reports
Director, Tipi
HOMEOWNERSHIP ON THE DECLINE EXPERT COMMENT Things are changing and we are now seeing the long overdue removal of the idea that renting is just for millennials. Increasingly, build to rent delivery will include family homes, with facilities focusing as much on playgrounds and creches as on fitness centres and swanky, flex workspaces and lush resident lounges. Gardenstyle low density living – similar to that which is so ubiquitous in the US – will address the needs of families who rent. One and two bedroom apartments are great for many renters, but there’s also a sorely overlooked need for low-rise, quality family apartments and homes that can be
Homeownership levels have always been high in the UK, especially compared to parts of Europe where renting a home is the norm. But, as property prices have spiralled and wages have failed to keep pace, homeownership has grown ever further out of reach for many, with growing numbers turning to the rentals market. New build homes for sale are also failing to keep pace with demand, with the result that large-scale developers are now building rental properties rather than private sale homes. Build to rent is an enormous sector in the US, where large-scale developments are often built out of town complete with facilities such as nursery schools, gyms and restaurants, and increasingly the UK is seeing more developments like these American equivalents.
American operators are bringing their expertise here. Native, for example, recently appointed US expert Tracy Peacock to oversee its business, made up of 1,500 apartments, either in operation or under construction, across the UK. Key sites include the 533-apartment Kampus scheme in Manchester, the 183-unit Carolyn House scheme in East Croydon and the 102-home Dalston Works development in London. Native BTR works with a broad range of investors including Dorrington, Aviva, LaSalle, CBREi, Woking Borough Council and Ares, and was one of the first largescale operators having started up in 2012. In the US, the build to rent communities are known as the “multifamily” sector, where strong demand comes from corporate clients and from private renters looking for new, high-quality and professionally managed homes.
THE US MODEL IS COMING TO THE UK
CHANGING LANDSCAPE – ONE SIZE DOESN’T FIT ALL
Earlier this year, the British Property Federation (BPF) published data which showed that that the total number of build to rent (BTR) homes that have been built, are under construction, or are in planning stages across the UK has risen to 117,893; an increase of 30% in the past year. As the UK’s housing shortages continue, some
In the UK, the build to rent market is relatively new, but experts already recognise that a “typical” renter is becoming a thing of the past. The modern residential market must serve a range of customers’ needs if it is to keep up with demand – including families, pet owners and older renters, says Atlas Residential, a private company
rented long term. One only needs to look at what works elsewhere, in order to deliver the perfect blend of accommodation.
Stephanie Smith Operations Director, Atlas Residential
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EXPERT COMMENT While there is plenty of choice for couples and friends, options for families are still limited. Young families need certainty and somewhere they can put down roots, which means for renters they need the ability to agree long-term, family friendly tenancies and have good-sized apartments with enough bedrooms and storage space.
Helen Gordon Chief Executive Grainger plc
which started in the US but which now has a London HQ. Atlas has been investing in and managing rental apartment homes for more than 20 years and has completed over $450m in renovations across 350 communities. In the UK, it has sites in Southampton, Birmingham and Manchester with around 1,500 units in the pipeline.
TRENDS DRIVING THE RENTALS MARKET Atlas has identified several trends driving the market; tenants are now “customers” and they expect better standards such as flexibility of tenure, smart solutions to make renting easier, greater facilities for changing demographics such as childcare facilities and amenities for home working. Atlas says that its schemes now typically include family homes, and that facilities such as playgrounds and creches are now as important as fitness centres, workspaces and resident lounges. Garden-style low density living – similar to that which is so popular in the US – will better meet the needs of families who rent.
FAMILY FRIENDLY SCHEMES There are now many examples of family friendly build to rent schemes. Grainger’s Clippers Quay in Manchester is their latest purpose-built rental development, with over 600 two and three bedroom apartments across three individually designed and themed buildings on Salford Quays. Set to open in autumn 2018, families can enjoy spacious three bedroom apartments with plenty of storage and access to
secure private gardens. Other facilities will include a gym, private cinema, co-working areas and a studio space that can be hired out for play dates or children’s birthday parties. Apartments are available on flexible leases of up to three years, and family pets are also allowed. Build to rent operator Get Living says that its rental homes are “perfect for families” as they offer long-term security – three-year tenancies are available – as well as a more affordable move-in process since no deposits or fees are required. Residents can decorate their own homes, and a team is on hand seven days a week to provide advice and assistance. Get Living’s East Village in Stratford has residents ranging from young families with babies, up to 75-year-old tenants. Young families are in the majority, and Get Living expects this trend to continue in the future, pointing to the success of the local school, Chobham Academy. Get Living has also provided amenities like the Little Bears Nursery and family friendly retailers, such as Ginger & Mint and Fish House, to make the neighbourhood the perfect place for families to live. Homes are suited to all sized families, ranging from one bedroom flats to four and five bedroom townhouses. East Village contains 25 acres of parkland and multiple play areas, yet it’s only a seven-minute train ride to St Pancras. Community Engagement Officers organise regular events, such as an annual Easter Egg Hunt. BTR operator Tipi says it is very much aware of the changing demographic of renters and its residents range from 17 to 70 years old. Tipi’s next building, Landsby,
opens in September and offers homes for rent which will cater for families through a wider mix of apartments, including more than 50 three bedroom homes, secure podium gardens that include children’s play areas, communal kitchen and social spaces for family gatherings and birthday parties as well as extensive outdoor space. Fizzy Living is aiming several schemes at renters with children, and says it’s not all about apartment living. A new development in Middlesex, just launched by Fizzy Hayes, offers 22 three bedroom townhouses to rent. Fizzy offers virtual viewings, enabling customers to view property remotely via Skype or Facetime. This makes the lettings process more convenient for busy renters such as families with young children. Today, 35% of bookings are completed in this way. On-site property managers, called “Bobs” in Fizzy-speak, are on hand to help with anything tenants need, including arranging childcare or help with pets.
BENEFITS OF RENTING TO FAMILIES FOR LANDLORDS Research carried out by the National Landlords Association (NLA) found benefits for landlords who rent to families. Landlords renting to families spend less time managing them compared to benefit recipients and migrant workers. The findings come from more than 1,000 responses to the latest quarterly landlord research panel from the National Landlords Association (NLA), which asked them to estimate how much time they spent on property management, including things like dealing with tenant queries.
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EXPERTS
Agony agent Readers put their property questions to our guest panel of experts: solicitors, mortgage advisors, property gurus and Help to Buy providers
THIS MONTH’S PA N E L O F E X P E R T S Sue Dance Head of Sales and Marketing, Octavia
Simon Scott Head of Sales and Marketing, Origin Housing, and Chairman of the London Home Ownership Group (LHOG)
Sally Parsons Property Director, Annington Homes
T E S T T H E PA N E L
We need your questions... If you have any queries, or difficulties in understanding the property buying process, our panel of experts is waiting to help. Send our team your questions on buying property, Help to Buy, legal issues, or your financial problems and we’ll find the best person from the panel to give the advice you need. Email your questions to: lynda@firsttimebuyermag.co.uk
Small deposit
Q
My partner and I have one child already and another one on the way. We are desperate to purchase our first home in London, but only have a small deposit and this is unlikely to buy us a property big enough to accommodate our family. I work part time from home, so that is not a problem, but my husband is a trainee accountant based in Liverpool Street. Any tips please? Laura Crowfield, Bedford
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With your growing family and the need for extra space it’s probably not a good idea for you to be considering a central London location for your first home. Instead you should consider one of the many up-and-coming areas further out that are still affordable, but with major new transport links on the way, are also a good investment for the future. I would recommend researching communities along the Crossrail route. Homes here are well priced now, but in future months and years when they are providing swift and easy access directly into the centre of the city, their prices are likely to rise. What is more, some of these areas are noticeably becoming more popular as the “Crossrail effect” is attracting many young professionals to choose to live in these developing communities. For example, at Octavia we will soon be launching a new scheme in Southall, Witley Wharf, which is just a 15-minute walk to the station. When Crossrail arrives next year, a further 20 minutes of travel time will take you straight into central London – with Southall to Bond Street a 17-minute journey when this section of the line is complete. The journey to Liverpool Street for your husband would be reduced to just 24 minutes from next year. Also we will have a number of three bedroom properties available at Witley Wharf, which can be rare to find in shared ownership schemes, so you could purchase a spacious apartment with a balcony to suit your family requirements. As always with shared ownership, you initially purchase the share you can afford (starting with 25% upwards) and pay rent on the rest of the property. You can then buy extra shares at later dates with the option of purchasing 100% of the property if you want to. There is also parking available, although this needs to be purchased separately. Each apartment at Witley Wharf comes with a balcony, and with the Grand Union Canal next door to the development and several open spaces and Southall Park nearby, as well as Featherstone Sports Centre, there are plenty of options for exploring and enjoying your family time together. Other areas where Crossrail is expected soon and so will be offering quick access to central London are: Slough (13 minutes), Maidenhead (22 minutes), Reading (37 minutes). Good luck with your search. Sue Dance
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New v old
Q
I am now in a position to start looking around for my first home. Could you highlight some of the differences between buying a brand new build home versus a refurbished one? Jenny Moore, Cambridge While refurbished and new build homes both have “new” aspects to them, there are obvious differences that you should consider when you’re thinking about buying either type of property. New build properties are generally understood to be those which have been built within the last couple of years, while refurbished homes are existing properties which may have had a significant amount of renovation and restoration undertaken to improve them. These might sound like two very different types of homes, but they can have quite similar features. For example, they’ll both take on modern fixtures and fittings with more contemporary styles and in both cases there are strict building quality standards to be met. At Annington, it is our aim to ensure that our refurbished properties meet a “Safe and Sound” specification. This means that electric, plumbing and heating systems are thoroughly checked, and any issues are dealt with before sale. Builders of new homes should be providing a build warranty, usually for a 10-year period, and in doing so have to meet the requirements under the Consumer Code for Home Builders (“the Code”), which came into effect in April 2010. The Code gives protection and rights to purchasers of new homes
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Staircasing to homeownership
Q
I am hoping to buy my first home in Hertfordshire, where I have been renting now for a few years. I have saved up a deposit of around £20,000 and I have an annual salary of £35,000. Through my research, I have found out I am eligible for shared ownership! However, I have heard the scheme being referred to as a ‘stepping stone’ on to the housing ladder. I am a bit confused about how I can own the home outright. Please help! Rhys Stevens, Welwyn Garden City Shared Ownership is a great way to help first time buyers on to the housing ladder, allowing them to initially purchase a percentage share in the property (at least 25%), paying a subsidised rent on the unowned share. As your circumstances change (such as getting a different job or a pay rise), you can buy more shares in the home through a process called staircasing. You can do this in stages (up to three times) until eventually you own the whole property. Once you have moved into your home, you will have the opportunity to staircase up. By doing this, you will own
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ensuring they are treated fairly and are fully informed about their purchase before and after they sign the contract. Refurbished homes often offer larger plots, giving scope for further extensions and alterations, whereas new homes, in comparison, generally tend to be on smaller plots. This is certainly the case for our cottages in Gamlingay, which are old workers’ cottages that have been carefully extended and refurbished, so buyers can enjoy a period home with the advantage of contemporary features and more space. However, when it comes to buying a home, each buyer has their own personal set of requirements. In property, it’s not simply a choice between a new or refurbished house – it’s more a case of finding what fits your needs in the right location and provides a space that will make you and your family happy. Sally Parsons
more of the property, and in turn pay less rent each month to the chosen housing association (such as Origin). Eventually you can staircase up to 100%, ending up owning the property outright just as if you had bought it on the open market. The process is very straightforward – the buyer needs to instruct a solicitor and apply for a mortgage for the additional share, and the housing association will appoint an independent surveyor to value the property. More and more advisors now specialise in shared ownership, so you will not be left to figure things out on your own. Typically, before people start looking into shared ownership, they often assume they would never be able to own the home outright. In reality, the process is very achievable and thousands of people do it each year. At Origin, our dedicated sales team will help you every step of the way. Simon Scott
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Buyers’ guide FTB EXPLAINS ALL THE OPTIONS TO HELP FIRST TIME BUYERS
Your options What are your funding options if you want to get on the housing ladder?
FIRST STEPS
ARE YOU ELIGIBLE FOR A GOVERNMENTBACKED SCHEME? The government runs several Help to Buy schemes to help people get on to the property ladder. To be eligible for Help to Buy your household income needs to be less than £60,000 a year. For more details, contact a Help to Buy Agent. Help to Buy Agents are housing associations that handle the application process for Help to Buy products. Details of Help to Buy Agents start on page 98.
BUYING ON THE OPEN MARKET
FUNDING OPTIONS
JARGON EXPLAINED
G O V E R N M E N TBACKED SCHEMES
EQUITY LOAN
HELP TO BUY The government will provide you with a 20% equity loan that is interest free for the first five years with interest charged at 1.75% in the sixth year and at annual RPI (retail price index) inflation plus 1% after that. The loan must be repaid when the property is sold or within 25 years. Buyers need to raise a deposit of 5% and a 75% loan-to-value (LTV) mortgage. Only new build homes valued up to £600,000 can be bought. The scheme is available for ftbs and movers.
NEWBUY Available on all newly built properties offered by homebuilders participating in the scheme up to the value of £500,000.Under the scheme, the house builder will put 3.5% of the sale price into an indemnity fund, and the government provides an additional 5.5%. The mortgage lender is then able to offer 90-95% LTV mortgages, and the purchaser only needs a 5-10% deposit.
NEW BUILD HOMEBUY, ALSO KNOWN AS SHARED OWNERSHIP OR PARTBUY, PART-RENT
Most people buy property on the open market. Homes are either offered for sale by estate agents or sold privately. These include flats, houses and former local authority properties.
This scheme gives buyers the chance to purchase as little as a 25% share in a property and pay the rest in the form of subsidised rent. In the majority of cases, there is the opportunity to own the rest of the property outright by a method known as ‘staircasing’.
PRIVATE INITIATIVES
RENT TO HOMEBUY
Some house builders offer first time buyer incentives on new build homes. These include cash back, a loan to help you with costs or paying your mortgage for a set period of time. To find out more, contact developers directly.
With this scheme you rent a newly built property for up to five years and pay a reduced rent. This gives you the chance to save for a cash deposit so you can apply to buy a share of the home later.
This is a loan for a certain percentage of a property’s value. If you remain in the property, you repay the equity loan within 25 years. If you sell the property, you repay the percentage of the property price the loan was for. For example, if the equity loan was originally £30,000 on a £100,000 property (30%) and you sell the property for £200,000, you’ll have to repay £60,000 (30% of £200,000).
HOMES AND COMMUNITIES AGENCY This is a government organisation that funds affordable homes including those under Help to Buy.
STAIRCASING This applies to New Build HomeBuy schemes and occurs when the resident tops up the number of shares they own in their part-owned, part-rented home until they own the maximum share or own the property outright. The shares can be bought in 10% increments.
FUNDING OPTIONS BUYING ON THE OPEN MARKET & P R I VA T E I N I T I A T I V E S
To buy on the open market or from a house builder you’ll need to get a mortgage from a bank or other mortgage lender. To do so you’ll need to save a deposit and meet the lender’s lending criteria.
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The ftb process TIPS
Buying your first property can be a daunting experience. It’s a big decision, so it’s important to get it right. We take you through all the steps involved
F
Unless you have enough money to buy a property outright you’ll need a mortgage. A mortgage is a loan used to buy a property and is normally repayable over 25 years. The loan is ‘secured’ on the property, which means the mortgage lender could repossess your home if you fail to make repayments on time. For this reason it’s vital only to buy a property you can realistically afford. Before you start, find out how much money you can borrow. A mortgage adviser at a bank will need details of your income, outgoings, savings and credit history – they will then be able to give you an ‘agreement in principle’, which will state, in theory, how much they will be able to lend you. An agreement in principle, however, doesn’t tie you, or the bank, to anything. Instead, it will just give you a rough idea of how much money you’ll be able to borrow. You’ll also need a deposit, normally at least 10% of the property price. The bigger the deposit, the better the mortgage rate you’ll be offered. Each mortgage product will have a maximum loan-to-value or LTV.
inance
APPLICATION You will need to have at least three months of bank statements, payslips or tax returns, a valid passport and information on any outstanding loans. Banks will look at your outgoings to assess how much you can afford to pay on your mortgage each month. The bigger deposit you have and the better your credit score, the better the mortgage rate you’ll be offered.
BUDGET Work out how much you can afford to repay each month. Look at your income and outgoings, including bills, council tax, food, insurance and travel. If you are buying a leasehold flat, you’ll also have to budget for service charges, so find out how much they will be.
MORTGAGE BROKERS VS BANKS CREDIT SCORE Get a credit report from Experian or Equifax, and make sure there are no default accounts, CCJs (county court judgements) or missed payments. If you are making lots of enquiries to find the best deal, make sure the lenders log your enquiry as a ‘quotation’ (soft) search rather than an ‘application’ (hard) search. Too many applications will leave ‘footprints’ on your credit score and can affect your rating. To improve your credit score, make sure you’re on the electoral roll, and pay your bills and any loan repayments on time.
You can apply for a mortgage via a mortgage broker (or financial adviser) or direct from a lender. A broker can look at the deals available and advise you which one would be best for your circumstances. Some mortgage products are only sold through brokers, not directly to customers. A broker will help you with the paperwork and deal with the lender on your behalf up until completion. You may have to pay them a fee or they may earn commission from the lender – find out how they are paid before committing to anything. Mortgage advisers in banks will only be able to sell you products offered by that particular bank, so it’s unlikely they will be able to offer you the very best deal for your circumstances. It’s important to shop around. You can compare mortgage deals yourself using websites such as SET A BUDGET
FINANCE
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Work out how much money you have for fees, deposit and the monthly mortgage you can afford.
CREDIT SCORE
Make sure your credit rating is sound, and pay off any debts you can.
moneysupermarket.com or moneynet.co.uk, then apply directly to your chosen lender.
FIXED-RATES Some mortgages are fixed-rates. This means you’ll pay the same rate of interest for a certain period of time, and your repayments won’t change. If interest rates go up, you’ll be protected from the increase, but you won’t benefit from any fall in interest rates. Normally at the end of the fixed period your mortgage rate will revert to the lender’s standard variable rate (SVR) for the rest of the term. You can either pay this rate or remortgage to another lender. Remortgaging to another lender will usually mean you have to pay a fee or early redemption charge (ERC).
VARIABLE-RATE MORTGAGES Variable-rate mortgages are either linked to the lender’s SVR or the Bank of England base rate, and the rate you pay can change. Lenders can change their SVR whenever they want, but they normally only change it when the Bank of England base rate changes. ‘Tracker’ mortgages have repayment rates directly linked to the base rate and are liable to fluctuate, so you need to be sure you could afford higher repayments if rates rise.
REPAYMENT OR INTEREST-ONLY You can either pay your mortgage on a repayment or interest-only basis. If you choose a repayment mortgage, your monthly payments will pay off some interest and some capital. At the end of the term, you’ll own your home outright. With an interest-only mortgage you’ll have smaller monthly payments, but these only pay the interest on the loan. At the end of the term you’ll still owe the original mortgage sum. If you take out an interestonly mortgage, you’ll need to have a plan in place (such as an investment) as to how you’ll pay off the capital.
SHOP AROUND
Speak to a mortgage broker, but also look at lenders’ direct products and search the internet for the best deal.
RESEARCH
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BUYERS’ GUIDE
TIPS
RESEARCH AN AREA
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a floor plan. Sign up with as many estate agents as you can (and your local HomeBuy Agent housing associations if you’re looking at shared ownership properties). They should send you new properties that match your description, but it’s worth phoning agents regularly.
Buying a home is a big investment. You need to buy a home you can afford and one
horough research
you’ll be happy living in.
LOCATION IS KEY The first step is to shortlist the locations you feel you’d like to live in, then check if you can afford the house prices in those areas. It’s also worthwhile visiting places you like: it may be that there’s an up-and-coming hot spot just down the road you didn’t know about that’s much more affordable. Ideally, you will have rented in the area before buying, but if this isn’t the case, at least spend some time there, check out the commuting time to work, and visit local pubs, shops and leisure facilities. Visit the area at night, too.
PROPERTY SEARCH Once you have found the right location, go online and check out what’s on offer. Most properties are listed on property portals such as findaproperty.com or propertyfinder.com or estate agents’ own websites. Most of the properties featured have pictures and descriptions and some have DECIDE ON A LOCATION
Be practical. Think about the commuting time and if you can afford to buy in the area.
RESEARCH THE AREA
Check out crime rates, future regeneration or new transport links.
Check online for prices of sold properties in the area, and make sure properties you like fit your budget. You can search for recent sold prices of property in any area at nethouseprices.com, although be aware that prices have dropped significantly in the past year. If you like a property, aerial shots of the area can be viewed at earth.google.com
VIEWING Once you see a property you like, arrange a viewing. Most people see at least 10 properties before putting in an offer. It’s worth bringing a friend or relative and also arranging a second viewing to check out any bits you may have missed. Don’t get taken in by the furnishings and décor too much. Remember that a property that is slightly run down can still be a great investment and may only need a touch of paint and a change of furniture.
Before you put in an offer, visit the street at different times to make sure it’s safe. Ask neighbours and local shop owners about the area.
BEFORE YOU BUY When looking at buying apartments, check exactly what is included in the service charge and how much it is. Also, ask about the terms of the lease and its length. If the lease has less than 80 years left, use this as a negotiating tool and make an offer below the asking price.
ESTATE AGENTS It’s a buyers’ market, so make use of agents’ legwork in finding properties that fit your requirements. Be aware that estate agents are paid commission by the seller on the sale, so try to inspect the property yourself rather than just the parts the agent shows you. Don’t get sucked in by the hard sell. SEARCH
Register with local estate agents, and use the internet to search for properties.
VIEWINGS
Look at several properties, and visit ones you like more than once and with someone else.
OFFER
When making an offer, don’t be afraid to ask for less than the asking price. If the property needs work done on it, use this as a negotiating tool.
SURVEY
BUYING
Make sure you get a survey done – it could save you money in the long run.
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BUYERS’ GUIDE
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uying process
BUYERS’ COSTS SURVEYS AND VALUATIONS
Once your offer is accepted, tell your mortgage lender. They will do a valuation to ensure the property is worth the money being advanced. At the same time, instruct a surveyor to carry out a survey. If this shows problems, find out how much they would cost to rectify and use this information to renegotiate the sale price. Or, tell the seller certain repairs need to be carried out before contracts are exchanged.
SOLICITOR’S/CONVEYANCING COSTS £500-£1,500
MORTGAGE FEE £0-£1,000
VALUATION £0-£300 (depending on your mortgage deal)
SURVEY £300-£500 (depending on the type of survey you have done)
SOLICITORS After the offer is accepted, you will also need to appoint a solicitor or conveyancer who will oversee the contract, deal with the finances and exchange the deeds. Your solicitor will carry out searches, check the terms of any lease and tell you how much stamp duty you have to pay. The seller will also appoint a solicitor, and the two legal teams will be in regular contact to make sure the purchase goes as smoothly as possible.
TIPS
A QUICK SALE Push the seller to take the property off the market. This will limit the chances of being gazumped (another buyer making a larger offer). The seller can insist on continuing to show the property, especially if you haven’t offered the asking price.
EXCHANGE AND COMPLETION Once the mortgage offer is in place, the contract is satisfactory and buildings insurance has been organised, both parties will agree an exchange date. On exchange of contracts, you pay a deposit, and a completion date is set. At this point, there’s no going back – the seller could sue you if you pull out, and you could lose your deposit. The exchange can be on the same date as the completion, but they are usually a week to 10 days apart. On completion, the final paperwork is done, and the property is legally yours.
Use a recommended solicitor who you know to be reliable and can move fast. Never get pressured into an exchange and completion date without knowing all your finances and documents are in place. If you can’t complete, you may have to pay the seller’s costs. English property law is different to Scottish law: in England, if you put in an offer and then have a change of heart, you can legally back out of the deal or negotiate up until the exchange date. But, in Scotland, an agreed price is binding.
SOLICITORS
Compare quotes from solicitors, and ask your friends if they can recommend someone. A good solicitor can make a big difference to a purchase completing or falling through.
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LOCAL AUTHORITY SEARCH FEES £300 (included in your solicitor’s bill)
LAND REGISTRY FEES £50-£920 (depending on the property’s value, e.g., £200 on a property costing between £100,000 and £200,000).
MORTGAGE BROKER’S FEE 0-1%
STAMP DUTY 0% for properties costing up to £125,000
2% for properties costing between £125,001 and £250,000
5% for properties costing between £250,001 and £925,000
10% for properties costing between £925,001 and £1,500,000
BUILDINGS INSURANCE £300 per year, payable monthly or in advance. Buildings insurance can cost a lot more if your property is at risk of flooding.
TIME SCALE From offer to completion usually takes about six weeks to three months, but don’t feel pressured or rush into anything you’re not sure of just because the seller or estate agent wants you to exchange.
SEARCHES
Look at the results of searches your solicitor has done. They will tell you, for example, if a main road is about to be built at the end of your garden.
INSURANCE
After you’ve exchanged contracts, arrange buildings insurance – this will be a condition of your mortgage offer.
REMOVALS
Shop around for a removals firm, and find one that can move your possessions on completion day.
SERVICE CHARGES AND GROUND RENT ON LEASEHOLD FLATS £100-£4,000
COMPLETION
Your solicitor or estate agent will call you to tell you the property is yours. The solicitor will have some final paperwork to do, and you will then have to pay the solicitor’s bill and your stamp duty payment (if applicable).
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BUYERS’ GUIDE
Home buying glossary Confused by financial acronyms and industry terminology? Buying your first house is daunting enough without having to decode property lingo. FTB’s home buying glossary is here to make the process a whole lot easier to understand AGREEMENT IN PRINCIPLE
DISBURSEMENTS
The initial document your lender will give you outlining the amount you are likely to be lent. An agreement in principle is not a guarantee of getting a mortgage.
These are additional charges incurred during the home buying process such as stamp duty and Land Registry charges. You must give the money to your conveyancer or solicitor who will then pay the charges on your behalf.
APR APR stands for annual percentage rate. It is the interest rate you’d pay over a year. It takes into account not just the interest on your loan but also any other additional charges.
EARLY REPAYMENT CHARGE
ARREARS
EQUITY
This is a term used to describe payments that haven’t been made on time.
The difference between the value of the property and the value of the mortgage you have secured.
BASE RATE The interest rate set by the Bank of England. Lenders use the Bank of England base rate to set their own charges.
BROKER
This is an amount of money you have to pay a lender if you decide to move mortgage providers or if you pay off your mortgage quicker than expected.
EXCHANGE OF CONTRACTS This is when you exchange contracts with the seller. When this has happened, both sides are legally bound to complete the transaction.
A broker is someone who gives you advice on your mortgage. Some are independent, while others work for lenders.
FREEHOLD
BUILDING SURVEY
When a seller accepts an offer and then later on rejects it in favour of a higher offer from another bidder.
A survey carried out by a qualified surveyor to spot any structural problems or faults in the home you are buying.
COLLATERAL Something of value that is offered as a guarantee against a loan. With mortgages, your home is collateral.
COMPLETION The finalisation of the sale. Completion day is when all money is transferred and you become the legal owner of your new home.
CONVEYANCING The legal process of transferring ownership of a property.
A freehold is when you fully own a property and the land it stands on.
GAZUMPING
GUARANTOR A person, usually a parent, who guarantees that you can pay your mortgage repayments. You often need a guarantor if you are struggling to get a mortgage based on your own income. If for some reason you cannot pay your mortgage, your guarantor has to pay it for you.
HIGHER LENDING CHARGE If you take out a large mortgage on a property, some lenders charge you an extra fee. This is because the more money you borrow the more of a risk the lender is taking.
LAND REGISTRY FEES This is a fee you have to pay in order to register your ownership of the property with the Land Registry.
LEASE A type of contract where you buy the right to occupy the property for a fixed period of time. You usually have to pay annual ground rent each year.
LTV This stands for loan to value – the ratio between the amount of money you have taken out as a loan and the valuation price of the property.
LUMP-SUM REDUCTION In order to reduce your mortgage, you can make a lump-sum reduction. This is where you pay more than you owe each month in mortgage repayments.
REDEMPTION Paying off your mortgage in full is known as redemption.
REPAYMENTS The amount you have to pay back each month to your mortgage provider
STAMP DUTY Stamp duty is a shortened name for stamp duty land tax. This is an amount of money that the government tax you when you purchase a new property. Your solicitor or conveyancer will organise the payment for you.
TITLE DEEDS The legal documents that outline your rights and liabilities in relation to your new property. The title deeds also act as proof of ownership.
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BUYERS’ GUIDE
Lease extensions – a step by step guide
Should you require any further information regarding this article or the services provided by Lawcomm Solicitors, please do not hesitate to contact Bill Dhariwal (E: Bill.Dhariwal@ Lawcomm.co.uk) or Maxwell Green (E: Maxwell.Green@Lawcomm.co.uk)
If you are the owner or prospective purchaser of a leasehold property, you should consider the length of the remaining term of the lease, as the length of the lease directly affects the value of the property. The extension of a lease can make your property more valuable, saleable and ensure that future sales proceed without substantial delay. Often a purchaser will not be able to obtain a mortgage over a leasehold property if it does not have a sufficient term left on the lease
THE 80-YEAR TRAP You should consider extending your lease at the earliest possible opportunity. As the term of your lease reduces, the premium payable to extend it increases. In short, the longer you leave it, the more it will cost you. A lease extension will add value to your property. If your lease has less than 80 years to run, the landlord is entitled to half the increase in the value of the property. This is known as the marriage value/fee. If your lease has more than 80 years left to run, the landlord is not entitled to a marriage fee and therefore the premium payable to the landlord is greatly reduced. You should be aware of the 80-year trap and ensure you have reviewed the remaining term of your lease, so you can act before it becomes too late.
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OPTIONS – EXTENDING YOUR LEASE There are two routes to extending the term of your lease. They are colloquially known as the informal and formal routes. The most appropriate route for you to take will be dependant upon your particular situation. You should consider the circumstances at the time you are extending.
THE FORMAL ROUTE The formal route involves the service of a prescribed notice, asserting your right to extend the
lease and requiring the landlord to grant the extension within a set time period. You have a statutory right to a 90-year extension, in additional to the remaining term, and the reduction of your ground rent to a peppercorn (effectively nil). No other onerous provisions can be included within the extension, save for any updates required by law. To qualify for the right to extend your lease, you will need two years’ ownership and you must have a long lease (originally granted for 21 years or more). You will need to obtain a copy of your lease and an estimated figure for the premium. There are lease calculators online, but it is prudent to instruct a surveyor to provide a formal valuation. Once you have
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established a baseline figure for extending your lease, you should instruct a solicitor to serve formal notice, setting out the proposal. You should be aware that you will be liable to pay the reasonable legal and valuation costs of your landlord. While it is often more favourable, the formal route can be lengthy and costly. In addition, there is little flexibility in respect of the terms. For example, if you were simply looking to extend the lease by an additional 30 years, to ensure it was saleable, this would have to be agreed via the informal route. A 30-year extension may be granted for a lesser premium than would be charged under the formal route.
THE INFORMAL ROUTE Even though you have the formal right to extend your lease, it doesn’t follow that you should always use it. In some instances, a simpler and perhaps quicker method of extending is to contact your landlord directly and start an informal dialogue. The terms can then be agreed between the parties and formalised through your solicitors. An informal arrangement could be a good option for people who have recently acquired their property because there is no two-year ownership requirement. A reasonable landlord should be willing to discuss an informal agreement. Often, informal negotiations are entered into with a landlord in the hope of avoiding or reducing the legal and valuation expenses associated with the formal route. However, professional portfolio companies often purchase freehold interests to make profit from transactions, such as lease extensions. They may ask you to pay administration costs up front and then provide you with a non-negotiable inflated proposal, well in excess what you would be liable to pay under the formal route. The informal offer from the landlord may not reveal the complete picture. The new lease may be layered with onerous terms which may introduce additional service charge provisions, adverse administration charges or clauses which
have a detrimental effect on your ability to sell the property. You should ensure that your solicitor reviews the terms and advises you of the consequences, as well as whether they are acceptable to your lender. In particular, you should be aware of amended ground rent clauses which would increase the rent above £250 per annum at any point during the term. These can devalue your property, may be unacceptable to your lender and could cause you problems when it comes to selling the property. There are many pitfalls when it comes to dealing with lease extensions and each situation should be assessed on its own facts to ensure that you achieve the most desirable outcome. Below are a list of advantages and disadvantage of both routes.
ADVANTAGES – FORMAL ROUTE You have a statutory right to extend your lease If terms cannot be agreed between the parties, a tribunal can determine them You are entitled to a 90-year extension to the existing term The ground rent will be reduced to a peppercorn The valuation date is fixed once notice has been served, therefore the price of the lease extension premium stops increasing at that date. This is particularly relevant where a lease is approaching the 80-year mark The landlord cannot include onerous or unreasonable provisions You can apply to the tribunal if the landlord’s legal/valuation costs are unreasonable and ask for a formal assessment You are not required to obtain your lender’s consent to extend the term You can serve formal notice and then assign this to a purchaser, via the sale contract, enabling them to take over the formal extension process after completion of the sale You can still extend your lease if your landlord is absent or non-responsive via an application to the court
DISADVANTAGES – FORMAL ROUTE
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It can be lengthy. If a tribunal application is required to determine the premium, the process can take up to one year to complete You are responsible for the landlord’s reasonable legal/valuation fees from the point you serve the initial formal notice The costs associated with the formal route are often higher than those under the informal route
The legislation contains a right of possession in favour of the landlord at the end of the original term and at the end of the extended term, in very limited circumstances. If the right was exercised, you would be compensated
ADVANTAGES – INFORMAL ROUTE Legal and valuation costs are often lower Generally, the extension is completed within a shorter time period, compared to the formal route The parties are free to agree to the terms of the extension, without restriction There are no specific time limits You can agree a shorter extension, potentially at a lower premium, to enable a sale to progress
DISADVANTAGES – INFORMAL ROUTE The landlord is likely to insist that ground rent is increased The term of the extension proposed is often less than 90 years The process is less certain. The landlord can change the terms or withdraw at any time prior to completion The landlord will usually ask you to pay their costs The landlord can attempt to impose onerous terms in the new lease which may be non-negotiable The fees you save in the short term are likely to be recovered by the landlord in the long term, via ground rent increase reserved by the new lease Your lender may be unwilling to agree to the terms of the informal proposal and you may have to proceed down the formal route, after already incurring costs Your existing lender will need to consent to the new lease. An administration fee is often payable The most suitable avenue for you will depend upon your circumstances. You should ensure that you discuss the matter with your landlord and legal advisor, as well as taking professional valuation advice on the likely costs at the outset. This will ensure you have realistic expectations in relation to the costs associated with extending your lease and you are better positioned to make an informed decision as to the best route for you. You should note, you are not prevented from negotiating informally, following service of a formal notice. In many circumstances your bargaining position is enhanced if formal notice has been served.
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LAST WORD
Spotlight on... SARAH BUTLER
SALES AND MARKETING DIRECTOR, NOTTING HILL GENESIS Sarah Butler has worked in homeownership sales and marketing for the past 18 years, in a career that has included working for three of the largest housing associations in the sector, L&Q, Peabody and Notting Hill Genesis, where she is currently Sales and Marketing Director Having helped thousands of households become homeowners, Sarah firmly believes that while delivering extensive housing projects is essential to delivering more much-needed homes, it’s quality that counts. For Sarah, providing the best homes while delivering a great level of customer service for first time buyers is fundamentally important and at the heart of her passion for the sector. At Notting Hill Genesis, which formed in April through a merger of Notting Hill Housing and Genesis housing associations, Sarah has a major role in delivering a new homes programme that will supply an extra 2,000 homes per year over the next few years. This comes with the challenge of building a new team, creating a new sales brand for the new organisation and navigating current challenges in the housing market in London and the East of England, where Notting Hill Genesis operates. Tell us about Notting Hill Genesis The organisation formed in early April. It was a great opportunity for two organisations doing similar work in similar areas to join together, combine expertise and build their capacity to do more as one team. We’re now one of the largest social landlords, with over 60,000 homes, and have ambitious plans to deliver many more. We’re taking a "best of everything" approach and looking at how we can take the best bits of our legacy organisations forward, and, where we need to, create new ways of working. This is great news for our customers as we are focusing on improving everything, from our sales website, to training our staff to provide excellent service standards and giving the sales and marketing teams more influence on the homes we develop, so we can offer
the right homes, in the right places and at the right price. What are your most recent developments and what have you got coming up? That could be a long list as we have lots going on at the moment! We have recently launched the latest phase of private sale homes at Royal Albert Wharf, where we’re offering one, two and three bedroom apartments. It’s a waterside development in east London where old red brick quayside buildings and attractive new homes see the city’s past and future combine. It’s a really exciting scheme. There’s an emerging community with local art hubs, the newly opened Lockside Kitchen and a variety of street food vendors – there is a real sense that the place is coming alive. Our shared ownership homes coming up include sites in Stratford where we have one, two and three bedroom apartments launching at Chobham Farm in late July. There is also Greenstock Lane in Harrow where one and two bedroom apartments will launch in late July, and at a similar time we’ll be launching 10 more homes at Woodberry Down in Hackney. What are your thoughts on shared ownership? Shared ownership is now part of the mainstream housing market; it’s becoming a very popular way to buy and own. Increasing house prices in London means affordable home ownership through any product has its challenges, and this has led to a change in the income groups that shared ownership can work for. However, the overall product still makes a huge difference, making it possible for first time buyers to own a home, and will continue to do so for years to come.
What are your views on the property market at the moment? While there’s a degree of uncertainty at the higher end of the market, the demand for homes from first time buyers is very strong, and our most affordable locations are often our most popular ones. The Government has recognised that the housing market isn’t working for everybody and I think there’s a collective political and economic consensus to fix it. It’s exciting to be working in an organisation that is at the forefront of this, by meeting the challenge of delivering new homes. What advice can you give to first time buyers? Start saving for your deposit as soon as you can! Be prepared to extend your search into areas you hadn’t considered, and make sure you have a clear sense of what your priorities are in terms of both the property type you want buy, and the location you’re looking in. Also, think ahead, you might buy believing you may only live in your home for a few years, so ask yourself if it would still be the right home for you in five or even 10 years. Ultimately, buying your first home can be a very subjective and personal choice, so it’s important that it’s the right one for you – don’t be afraid to view more than once and cover all the angles as part of your decision. I once had a buyer who lay down on the floor in the bedroom of an unfurnished flat that he was considering and he made a ‘snow angel’ shape in the newly laid carpet to see if his double bed would fit in it! nhgsales.com
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