Property Rescue Blog

For whatever reason you are renting a property, there still remain criteria for you to follow. Naturally the criteria change depending on the reason behind your decision to rent, whether it be for a home, for an office, or for an investment. None-the-less, before you sign that contract, there are decisions that need to be made.

First and foremost you need to work out a realistic budget. Without a clear budget, you cannot know where to begin, as knowing what you can afford prevents future problems arising. The budget should depend on what you earn as an individual or a collective. Always remember however, that there are additional costs in living, such as bills, that will need to be paid on a monthly basis. Dedicating a proportion of your earnings to these will give you a more realistic idea of what you can afford.

Location, location, location. We have all heard the saying, and to be honest it could not be truer. The perfect property is only perfect if it is in the right location. One’s dream property (physical building) could be severely hampered by the location, for example, local transport, amenities, safety, etc. Depending on your needs, the location of your property can vary whilst renting; schools, transport, shopping, religious buildings, amongst others, are all examples of factors deciding a location.

Parking is another major issue while renting. Commonly, rented accommodation is within blocks of flats or within streets of terraced houses. Similarly, rented accommodation can frequently be close to shopping centres or train stations for example, in which case (free) parking can be limited. Various areas, especially around the London commuter belt, can propose greater problems with restricted parking zones a regular practice.

Another point to remember when renting is your time frame, i.e. when do you want to move in, and what length of contract are you looking for. Rented property can vary in these instances, so as long as you set a realistic time frame (thus expanding your search) you can begin looking. A minimum 6-month contract is the norm in rental agreements, and you can choose between furnished and unfurnished properties.

Renting can be a great option for anyone. Whether it is short term or long term, renting can provide the independence and flexibility one is craving. Although there are generally factors to consider, and rules to follow, renting can be an exciting solution!

Just remember to set yourself realistic budgets for living, social life, food and transport costs, and enjoy.

The dramatic 1.5% cut to base rates announced by the Bank of England last week has been welcomed by business, industry and homeowners.  Yet despite this fall in interest rates and the money that has been pumped into the banking system by the government, there is still a shortage of mortgages for first time buyers.

The approval rate for new mortgages has slowed substantially over past months.  Around 57% less mortgages are being approved than at this time last year.  The figures hit rock bottom in August when just £2.1 billion was put into new loans – the lowest amount since 2001.

In the main, banks and building societies appear to be passing on last week’s bank rate cut to its borrowers – at least in part.  But mortgages that benefit from falling rates, such as tracker deals, are in short supply, and new borrowers are expected to find a hefty deposit before lenders will consider their mortgage application.  The nervousness and uncertainty that overshadows the housing market makes it difficult to be optimistic.  Many analysts predict that the next two years will produce further falls in property prices with only a slow recovery in market activity.

Estate agents have borne the brunt of many a sarcastic comment during the rich pickings of recent good times, but they are suffering more than most at present.  The RICS (Royal institution of Chartered Surveyors) reports that on average estate agents sold under 11 homes during the quarter August to October this year – the lowest level since the RICS began keeping statistics back in 1978.  Agencies that expanded to meet the demand of a bullish market are now having to lay off staff or close branches to cope with the sudden downturn.

Anyone wanting to sell their home is at the mercy of what has become a global economic crisis.  An all pervading feeling of helplessness has engulfed vendors as they simply wait, hands tied, to see what the future will bring. 

Property Rescue provides a way of selling up and moving on despite current economic uncertainty.  The offer is simple and straightforward with no hidden extras to pay and no obligation to proceed.  Advice is free and confidential, and you can talk to an expert about your circumstances and your property.  If you accept Property Rescue’s offer for your home, the sale can proceed swiftly without the possibility of collapsing at a later date.  You can be assured that your sale will go through, leaving you free to start planning for the future.

For details and a free, no obligation chat, contact Property Rescue today.

We sometimes forget how much cash is tied up in your home. Releasing this cash could prevent repossession and aid some financial problems you are facing. It is all well and good relying on the value of your house to go towards a bigger and better home – if you can afford it. In the current economic crisis and the struggling property market, it is no shame to admit that your current home is presently beyond your means. So why continue struggling to pay the mortgage payments, and interest payments alike which you cannot afford. House repossession is a very real possibility in this situation, one which could be avoided. Selling your house, to either move in to the rental market, or to downsize could be the answer you are looking for.

Does it really matter how many bedrooms you have? How many guest rooms you have? If you have that landscaped garden you were always after? Or is it better to go to bed at night knowing that you can afford to pay the bills to live in your home, even if it is slightly less modest.

Releasing the equity in your home can stop repossession, and allow you to use some of the money to provide a smaller property. Alternatively, releasing the equity could provide suitable funds for various schemes, including sell and rent back, sell to rent, or simply to sell outright.

With a sell and rent back scheme, the equity can be released from your home. You can ignore the added problems of moving, and you can remain in the property that you have made home. Furthermore, the speed at which such a scheme can operate is much more efficient as there is no searching for a new property, waiting and hoping for a genuine buyer for your property.

In this scenario, although the rental fees may be slightly greater than the mortgage fees, they will be short term, and the lump sum of equity will be used to pay off debts, or can sit in the bank counting the interest.

This works in a similar way to selling your property to move in to the rental market, as the equity released from your home can be used to help finance other ventures, pay off debts, or be used as a deposit on a new home.

A major re-occurring problem is the fixed-rate mortgages coming to the end of their term. Which as a result can greatly increase mortgage payments practically over night. The monthly costings are completely out of proportion, and if your salary cannot absorb the added charge, then you can very quickly gather up debt.

This is also apparent in interest only mortgages. In these instances the property is effectively never yours, so an advantage to watching property prices rise is to release the equity in the property. Thus reaping the rewards of an increase in value, and either re-mortgaging or renting the property back – either way, you can feel those financial strings pulling a little less, and prevent any form of repossession.

With the property boom having come to a grinding halt, there has been a continual decline in inflated prices. From Newcastle to Manchester, and Birmingham to London, it seems no-one is clear from this slump.

Rumours have been circulating for a while now over the prospect of either selling your property to rent it back, or selling to move in to rented accommodation.

With the property market fluctuating, it seems smart to sell when the market is riding a wave, and buy once this boom has crashed. However, this takes serious knowledge of the property market and strong forecasting. Something perhaps better left to the experts.

This is because; you have to take in to account, the cost of moving (transportation / fees, etc) and the monthly rental fee. It is normally the case that a mortgage payment is lower than a rental payment, not to mention the fact that property prices will have to drop a reported 4% to make selling and renting worthwhile.

The gains from selling to rent can be huge, and have proven to save buyers around 30%. How? As the market has begun to fall, house owners have sold their property, moved in to rented accommodation, only to emerge back on the property ladder a few months later at a ‘discounted’ rate of around 30%.

Genius. Well it can be. The market can be futile, and unpredictable. For all the ups and downs we are subject to, property is genuinely a sound investment in the long term. Sit there long enough and you should be seeing a handsome profit. Nonetheless, I think we would all be happier if there were a way to lower our mortgage, move in to a bigger property, or simply increase the figure in the bank.

Selling and renting is building up quite a reputation for itself, and rightly so. There are however, some pitfalls of which you must be aware. Renting normally requires signing a minimum 6-month contract. If the market does suddenly rise, you may be a few months behind watching prices rise whilst you are contracted to rented accommodation. Naturally if you have the means to support both payments, then you could always rent whilst looking for a ‘bargain’ knowing that once one comes along, the deposit is happily waiting for you in your bank account.

Not only this, but we never truly know how long the slump will last, or whether it is actually a slump or just a slow down. As a result of this, it is important to understand the elements before subjecting yourself to them.

Buying and selling property involves a major decision, and for many of us it will be the biggest decision we ever make. If you see moving as an annoyance, and are not particularly optimistic about property prices, then perhaps think of other solutions – if you can find one. But, if you don’t mind the thought of moving twice, and have a view about where the property market will go, then perhaps selling and renting is for you.

In recent times, it seems as though we cannot turn on the news or open a newspaper without being further reminded about the dire situation our country finds itself in.

With the cost of inflation constantly rising, generally at a faster rate than the interest rate, it seems as though nothing is 'worth' its price any more. Everyday expenses are a becoming a genuine concern to more people than not as the cost of petrol, gas, electricity, food, utilities, and council tax amongst others rise. This is happening at the turn of the property market when house prices are slumping and the economy looks weak. The number of vulnerable people is rising, from first-time buyers and disabled people, to the unemployed and buyers whose fixed interest rate is expiring , or has expired. The ensuring result is expenses being greater than earnings, and without any savings it doesn't take too long for financial trouble to appear over the horizon. The same is for people with savings; how long can you support yourself with your savings; how much of your savings do you want to lose during this market.

The home-owners most at risk are those who have either no equity in their property, or those at risk from becoming unemployed. Unemployment is a serious issue, with unemployment figures gradually rising, and are currently at their highest in over two years.

Is repossession the only result?

Well there is some good news in the offer of some schemes available to home-owners. There is the sell and rent scheme, and the sell and rent back scheme. Both can provide the financial stability we all crave, but with different results.

A sell and rent scheme is an option for home-owners to sell their property, releasing the equity in their home, and move in to the rental market whilst the current property instability corrects itself. If property prices continue to fall, then the home-owner could emerge back in to the market at a lower level, either buying a similar property at a lower price, or simply a smaller less expensive property at a lower price than what the market was at a few months ago. The result is obviously to stop repossession and allow some greater financial freedom.

A sell and rent back scheme is similar in the sense that you sell your house, releasing the equity in your home, and begin renting. The difference here is that you will be renting your own house back. Therefore you do not have to endure any moving costs / time, or any time spent searching for new properties.

Obviously we all aim to control our own finances, whether this is in the form of no debt, and in the more realistic form of controlled debt. Neither are easy, and there are many factors out of our control. However that doesn't mean these are unrealistic targets. No-one wants the prospect of repossession hanging over their heads, nor should anyone have to go through what can be a very confusing and upsetting time. There are ways around repossession, and options to stop repossession occurring. What we must remember is to be smart, i.e. get help if we don't understand, and equally as important, to set realistic targets.