Is It Still Possible to Get on the Property Ladder?

This article by hip-consultant.co.uk on September 23th, 2013 shows the process and steps on how to start getting into the property ladder.

Getting on the property ladder can be a daunting prospect especially due to the fact that it is a huge financial commitment. However, owning your own property is a way of investing in your future, and the future of your family, as well as giving you more stability. If you are a first time buyer you need to be aware of all of your options and choose the scheme that is right for you and your financial situation. This blog gives advice on how to get on the property ladder and the processes you will go through to get the keys to your new home.

Buying your first property can be a time-consuming and frustrating experience but so long as you know all the correct information the process can run much smoother. Owning your own home is very rewarding so it will be worth it in the end.

Money, money, money

First and foremost you need to be realistic about money and what you can afford. You need to consider what property you can afford and how much it will cost a month. You will need to look at how much money you (and anyone buying the house with you) have for a deposit. It is more than likely that a deposit will cost you 10% or more of the cost of the house. On average in the UK this is around 26k mark. If you can put more money down for your deposit then your interest rates overall will drop.

Hidden extras

Buying a home will cost you more than you think. There are many hidden costs that you need to be ready for because they aren’t cheap. For instance, your lender can add over a grand to your costs or percentage-of-loan charges. You will then have to pay for building insurance, life insurance, contents insurance, bills, council tax, water, ground rent and even a service charge. This isn’t even including Stamp Duty and VAT.

Finding your first home

When viewing properties you need to be looking at the state of the vital amenities, such as the kitchen and bathroom. Décor can be adjusted at a fairly reasonable price, a new kitchen or bathroom cannot. Every home should come with an information pack educating you on the council tax, title deeds, leasehold information and home energy assessment. Make sure you ask for this so you are completely aware of all the costs associated with the property.

The first offer

Your opening offer is critical. You need to decide how much you can afford before you start and bid below that amount. For example, if the house you want is selling for 120,000 and you can only afford 110,000, bid 100,000 first. If this bid is knocked back raise the price by 1,000 each time until you reach an agreement.

What the gazump?

Once you have come to an agreement with the seller, you want to request that the house is taken off the market. This means that you won’t get gazumped by another buyer swooping in with a higher bid.

Signing the contract

Once you sign the contract and pay the deposit you lose a lot of your bargaining power so make sure you have everything in order before. You want to ensure you have everything you want and that you can get a mortgage. Your deposit at this stage will be around 1,000 and this amount is non-refundable.

Finding a mortgage

There are many mortgage lenders available through your bank or online. You can usually agree on a mortgage over the phone these days, or on the Internet. There will be fees to set up your mortgage of around 500 and this can go up depending on the rates you are getting for the loan.

Conveyancing

You will need to employ a solicitor to check the legal elements of the sale and make sure the house isn’t currently under any land disputes, owed to another person and that the owner has the legal right to sell the property.

Survey

Your mortgage company will require a basic survey confirming the value of the property. There are three types of surveys:

• Mortgage Valuation: This is the cheapest and will basically confirm to the lender that the property has worth and could be sold if you default on your payments. It will not spot any huge faults.
• Homebuyer’s Survey: This costs more but will be a lot more thorough, revealing any serious issues. One in four people renegotiate after this survey and reduce the overall cost of the property.
• Full Building Survey: This is the most expensive and goes into greater detail, looking at the condition of your property. This is usually recommended for older properties or homes with a rare design.

Completion date

Once all the negotiating is complete and the contracts are exchanged you will set a completion date. This basically means the day you get the keys, move in and pop a bottle of champagne. This is usually two weeks after the exchange of contracts.

Article Source: http://www.hip-consultant.co.uk/blog/is-it-still-possible-to-get-on-property-ladder-123/

Do Wind Turbines Impact Property Values in the UK?

In this article Mark Benson of PropertyCommunity.com on August 24, 2013 covers what could be the possible impact of wind turbines to UK's property values and speculations states that it could lead to a fall in property prices.

The subject of wind turbines has taken centre stage over the last few days with news that the UK government has commissioned a report into how wind turbines impact the value of property in their vicinity. The very fact that the UK government, along with many other governments around the world, has over the last few years been actively pushing the introduction of more wind farms could put the authorities in a very tricky situation if the rumours are correct.

There is speculation that the forthcoming report, which may or may not be made public, will confirm that billions of pounds have been wiped off the value of properties in the UK located in the vicinity of the ever-growing number of wind farms. There is speculation that the Department for the Environment is actively looking to publish the report as soon as possible while the Department of Energy and Climate Change has attempted to block its release.


Concerns about UK property values

The problem for many people is the fact that by definition wind farms are located in some of the more rural areas of the UK which offer enough wind power to make an investment worthwhile – thereby leading to a direct impact upon rural property values. It is not quite clear whether the impact upon properties in the vicinity of wind farms is similar across-the-board or whether certain areas are impacted to a greater degree.

Quote from PropertyForum.com : “The gap in home values in the UK between London and the South East and the rest of the country is widening, according to new research.”

If you take a step back and look at the situation, many of the more rural areas of the UK host some beautiful homes with matching scenery. For many people it is the tranquil nature of life in rural Britain which adds to the value of many country homes. Therefore, if you are looking out across a raft of wind farms the impact is very different and few people would be willing to pay extra for a view of these enormous renewable energy projects.

What will the government do?

The reality is that the UK government, along with many other governments around the world, has signed up to a variety of legal obligations with regard to renewable energy. David Cameron has already confirmed that we are likely to see a reduction in the number of onshore wind farms with a potential increase in the number of offshore wind farms. While this will be music to the ears of many across rural Britain who were concerned about the potential for wind farms to be built in their vicinity, it will do nothing to help those who have seen a major impact upon their property values already.

While this is all speculation at the moment, a number of newspapers have covered a rumoured situation whereby a property priced at £700,000 fell by around £250,000 in value once plans were approved for the building of a wind turbine. This kind of impact is unlikely to be replicated right across the board but there will be many situations where the demand for rural property is impacted by planning approvals for wind turbines. Is this now something else we need to take into consideration when looking at the acquisition of a property?

Article Source: http://www.propertyforum.com/property-in-the-uk/do-wind-turbines-impact-property-values-in-the-uk.html

Only 32% of Sellers Drop Price of House

In order to draw a buyer to buy their property some house sellers cut down their original asking price as revealed in this article by Jack Hatton of Express on August 21, 2013.

The number of house sellers slashing their original asking price to attract a buyer is at a record low as confidence flows back into the market.

Under a third (32 per cent) of current sellers had reduced their asking price, according to property website Zoopla.

It was the lowest figure for the summer quarter since the website’s records began in 2010.

This time last year 37 per cent had been forced into a price cut in a bid to find a buyer.

Zoopla spokesman Lawrence Hall said: “It suggests sellers are feeling more confident and happy to wait it out to achieve their target asking price.”

But seller confidence remains patchy, indicating a regional divide.

Two in five current sellers in the Yorkshire towns of Barnsley, Rotherham and Wakefield have cut their asking prices, compared with one in four in London or Edinburgh.

On average sellers reduced by 6.3 per cent compared with 7.6 per cent a year ago.

However, the figure was currently almost 10 per cent in Poole, Dorset.

The summer holiday season usually sees a surge in price cuts as the market traditionally gets quieter.

But demand from buyers has been gathering pace in recent months after Government initiatives such as the mortgage scheme Funding For Lending.

The Council of Mortgage Lenders reported that last month business was at its strongest since 2008.

Article Source:  http://www.express.co.uk/news/property/423626/Only-32-of-sellers-drop-price-of-house