Property Rescue Blog

In spite of the current turmoil in property markets all the world, the UK property market still remains one of the most buoyant property markets in the world. This could, at least in part, be attributed to the introduction of home information packs sometimes before the worst turmoil hit the global property market. The introduction of these home information packs eliminated a significant number of speculative home buyers, a factor which partly shielded the UK property market from being as hard hit by the turmoil as the US market, where speculative purchase of property was rifer. The relative stability of the UK property market and the relatively high demand for property in the UK has in turn led to an increasing number of people looking to buy property in the UK. Many of the people keen on buying property in the UK – both investors/home buyers from abroad and local UK investors/home buyers are seeking for information on how to get the process right.

The process of buying property in the UK - and indeed anywhere – has to start with a deliberate planning session, if one is to get it right. This involves soberly sitting down and carefully assessing your needs, ideally with a long-term perspective. If the property you are considering buying will be your family’s accommodation, you are well advised to include all of them at this stage, to avoid complains on your choice of a family home later. The final result of this planning process should be a clear description of what qualifies as the ideal property for your needs – a description which you can then use as a blueprint as you go out shopping for a property. You will then need to do focused research in order for you to understand what such a property costs, and whether you can afford to pay for it in cash – or whether you will need to seek some form of credit financing for it (maybe a mortgage) - or whether you simply cannot afford it, in which case you would need to come up with another blueprint that is more in line with your means.

With a clear description of what makes an ideal property for your needs, you can now go out for the actual property shopping. You might decide to do this online – there are many websites listing properties on sale in the UK – or offline, maybe with the aid of a property agent. Once you identify a suitable property, you are well advised to bring in your solicitor – and give him a brief to oversee the transaction and ensure that the property has a good legal history, and has no legal controversies surrounding it. As a relatively unique feature of buying property in the UK, you will need to have survey and valuation done on the property – and you will be required to pay some extra fees to finance these processes. Once survey and valuation are properly completed, you can complete payment for the property – and this has to be done through a proper contract and through your attorney, to avoid legal complications later.

Though the completion of the property-purchase contract marks the successful completion of the property purchase process, a further step you are well advised to undertake is get insurance for your property, ideally before you move in.

The government started to roll out Home Information Packs, or HIPS, earlier this year and from 14 December the HIP will be compulsory for every home owner who wants to sell, regardless of the size of property or number of bedrooms.

The idea behind HIPS is that prospective buyers will have a degree of information at their finger-tips before they make an offer, but the scheme has been criticised heavily by many in the industry as being expensive, cumbersome and responsible for slowing down an already depressed market.  There is also concern that various aspects of the information provided in HIPS, such as local searches, will be out of date by the time the property is actually sold and will, therefore, have to be re-done by the purchaser’s solicitor.  Mortgage lenders and lawyers are unlikely to place reliance on information that might be several months or even close on a year old.

Nevertheless, the law is the law and sellers will have no choice but to comply with the regulations.  In brief, the Home Information Pack will contain the following:

• An energy performance certificate that will rate your property from A to G
• A statement of the terms of the sale
• Copies of the title deeds and any planning and building regulations consents
• Local authority searches, plus those relating to drainage and water

It is difficult to give an accurate indication of what a HIP will cost as they are still in their infancy and therefore subject to market forces.  Realistically however, home owners should expect to pay between £250 and £700 for a HIP to be prepared on their behalf.  One of the main problems seems to be finding an assessor to rate the property’s energy efficiency, as to date few assessors have been accredited in this relatively new specialism. 

Selling your home through Property Rescue will avoid the need to prepare HIPS as the sale will be classified as private.  This could save you up to £700 as well as avoid the necessity of getting solicitors involved before you even put your house up for sale. 
 
Property Rescue quote a price for your home that is the price you will receive; no deductions are made other than repayment of your outstanding mortgage or any loans you may have on your property.  There are no hidden fees, no legal fees on the sale, and no HIPS. 

Give Property Rescue a call to find out more.  They explain everything to you in clear detail and take care of the paperwork and legal necessities.  If at

Gordon Brown may have been on holiday but he and his Chancellor, Alistair Darling, are working hard in an attempt to give the housing market a boost, and in so doing, improve their own party’s ratings.

It appears that Mr Darling may decide to temporarily suspend stamp duty on homes that fall into the lower bracket, i.e. between £125,000 and £250,000.  As the average home sits neatly within this range the measure is likely to have a big impact on first time buyers, as well as some of those wanting to move up to their second home.

If this ‘stamp duty holiday’ is put into practice (and it’s a big ‘if’ as there are lots of questions about how the fall in revenue would impact the Treasury) it would seem to provide an excellent antidote to the UK’s stagnant housing market.  But the property crisis has been fuelled by many factors not least of which is the lack of mortgage lending.  Some commentators feel that talk of a stamp duty holiday is detrimental to the market in the short term because potential buyers are likely to delay whilst they wait to see what happens.  Politically, it could also prove to be a shot in the foot: those who have recently bought and handed over thousands of pounds in stamp duty taxation are likely to feel pretty miffed that they missed out on such benefits.

If stamp duty news provides a glimmer of hope to some, that must be balanced by yet more bad news from Northern Rock.  The lender announced greater losses than anticipated and said it repossessed 65% more homes over the past year as a result of its previous lending to the sub-prime market.  As the government shores up Northern Rock with a controversial £3.4bn, it is now unavoidably clear that the effects of the credit crunch – which is celebrating its first birthday – will be long lasting.  Even the government is admitting that the property market is unlikely to recover in the short term, leaving borrowers concerned about meeting mortgage repayments as fuel and living costs rise, and those who want to sell feeling that their hands are tied.  If you are facing the possibility of repossession or you need to sell up fast because of personal circumstances, contact Property Rescue to find out about their guaranteed sale service. 

Property Rescue will provide a written valuation for your property and, if you accept that valuation, the sale is guaranteed to go through.  Whether or not you will pay stamp duty is dependent on the government’s decision of course, but you will save money by not having to instruct estate agents and, because the transaction is classed as ‘private’, you won’t have to prepare a Home Information Pack.  In addition, Property Rescue pay the legal fees on your sale. 

Give Property Rescue a call to find out more.  Their advice is free and entirely without obligation.

In the current property market sales are slow.  Beleaguered buyers are less than keen on the introduction of new policies that might slow down the sale or make it even more expensive than it is already…and understandably so.  The advent of Home Information Packs places an obligation on the seller to provide certain information ready for anyone who might want to buy their property, but how onerous is that obligation and is it likely to quicken or elongate property purchases?

Home Information Packs, or HIPs as they have become known, were introduced gradually from 1 August last year.  As from 14 December 2007 every home in England and Wales needs a HIP, unless that home meets certain exceptions.  In brief, these are:

• Accommodation that is used for holiday lets at least 11 months a year.  But the accommodation must be restricted to holiday use by planning regulations – the owners’ intentions on property use are not enough.
• Accommodation or land that is sold as a ‘mixed sale’, i.e. part of another sale.  This is a complicated ruling but might, for example, apply to farms where barns, sheds or outbuildings are considered part of the lot for sale.
• Park homes.
• New builds.
• Properties about to be demolished (where planning permission to demolish has been granted) and properties considered as unsafe to enter.
• Properties for sale without vacant possession, i.e. with a tenant in situ.

This is only a basic list and you are advised to consult an estate agent or solicitor to find out the details for your own situation.  Most homes for sale do need a HIP if they are to be sold on the open market; the cost of preparation can range from a few hundred pounds upwards.

Commentators have yet to agree on whether HIPs are worthwhile.  Some are holding to the opinion that the information provided in a HIP is unlikely to be of much use should the sale take several months to conclude.  However, potential buyers are able to see the HIP at an early stage in negotiations and at least they have the opportunity to take note of any factors that might stop them going ahead.  There is some evidence that the necessity to prepare a HIP is holding back home owners from putting their property on the market.  In overall terms the HIP is a relatively small part of the ‘moving house’ budget, so one could draw the conclusion that deterring the less than serious vendor is no bad thing.

Forecasters say the market is unlikely to pick up over the next few months.  For some, the delay is frustrating but little more than inconvenient.  But for others, delays can mean splitting up their family or risking financial meltdown.  If you find yourself in this situation call Property Rescue.  They guarantee to make an offer for your home whatever its condition or location.  Best of all, selling privately to Property Rescue means you don’t need to prepare a HIP…hooray!

For more information on selling your home fast call Property Rescue in complete confidence.  There is no obligation to proceed and no pressure will be put on you if you feel their offer isn’t what you want.

In the simplest terms, BMV is an abbreviation for Below Market Value property. What this means is that the prospective buyers pay less than the expected market value for a property. There is a section of the housing market that specialises in this area and they usually offer a sell and rent back option (at market rent) to the seller, often with a fixed term lease.  

Companies specialising in BMV property usually offer a minimum of 80% below expected retail value. Valuations are normally free and are estimated by examining the local market trends.

There are a number of reasons that people decide to sell their property at below market value. BMV sales are generally paid in cash and offer an expedient sale. Currently, the general turnaround for a house sale in the UK is 7 months and BMV sales can be completed in 24 hours. Also, companies that specialise in this area tend to deal with all aspects of the sale, including dealing with the mortgage lenders.

The rent and sale option is often utilised by people in financial difficulty, as a way of consolidating debt. The main reason for this being that it offers them the security of their own home whilst repairing their financial situation. Repossession orders have increased year on year as Britain attempts to deal with the spiralling cost of living. The advantage of a BMV sale is that it can stop a repossession order and, probably more importantly in the current credit climate, prevents the seller from acquiring a bad credit rating. The CML has recently highlighted that lenders are finding the credit crunch severely limits their members ability to advance the money for a mortgage. A bad credit rating in the current climate may prevent home buyers from achieving a reasonable interest rate.

In simple terms, Sell and Rent back (or Rent and Sale) is when you sell your house and then rent it back at a rental price affordable to you. Typically the reasons people choose to sell and rent back are for equity release, debt consolidation or motivated selling. In most cases, sell and rent back schemes will have a buy back option for the tenant, at the rate of the new mortgage.

The ability to sell your house and rent it back is a viable alternative to equity release schemes, especially if there is a need to generate cash quickly. There may be a case where you are looking to start a new business and need immediate funds as start up capital

The economic slowdown has forced many homeowners into defaulting on their mortgage and has put them at risk of repossession. IVA’s have increased year on year and debt consolidation companies has become an ever present part of the UK’s economic landscape. The advantage of selling and renting your house back, is that you are guaranteed a quick sale and the security of a roof over your head whilst attempting to deal with your financial situation.

For example, if you were looking to sell your property and emigrate overseas, an expedient sale not only releases the required funds, it also gives you the option to rent back for a certain period whilst searching for your new home. The same applies if you are looking to start a new business overseas, also providing a certain amount of flexibility if you decide eventually that you would like to emigrate as well.

Sell and Rent Back in London has been steadily increasing due to its position as the focal point of the economic market. Comparatively speaking, house prices and the cost of living have grown exponentially in London. Debt management is now of growing concern to people in the capital.

The vast majority of Sell and Rent Back companies are based online. The advent of the Internet and World Wide Web have caused many people to ask, “Should I sell my house online?.” The advantages being easy accessibility to the company and a vast array of choice. However it is important to be happy with the company you choose. The need to sell a house quickly often leads to bad choices. Do your research and look for a company that will sell your house online professionally and takes your personal situation into consideration.

As we approach the end of the year it is a good time to look back at the property market during 2007 and look at the current situation.

The year began with what had become a familiar trend of rising prices, which, it seemed, would go on for ever.  But it was not long before some commentators and financial experts were warning of potential slowdown or even disaster in the months and years ahead.  The credit crunch in the US sent shivers through the economy, the effects of which are still with us today and likely to continue for a while yet, whilst bank interest rates rose and mortgages followed suit.  By mid year we were seeing a general slow down in property prices all across the country and in the final quarter of the year prices have begun to fall.

November saw a 1.1% drop according to the Halifax – the 3rd consecutive month of falling property prices.  The Bank of England lowered its interest rate by one quarter of a per cent at its meeting in early December but the effects of this rate cut seem to be limited.  Lending between banks has become very expensive and the Northern Rock crisis has done nothing to bring confidence back to the markets.

As if this weren’t enough, some commentators are predicting that the change in capital gains tax rules, due to come into force next April, will bring a lot of ‘buy to let’ properties back on to the market as investors seek to capitalise on their gains.  The net result of this could be a ‘buyers’ market where the number of homes for sale pushes prices down.  If this prediction is realised, those who took out mortgages during 2007 could find themselves in negative equity situations.

If you need to sell your home fast but can’t find a buyer you might, justifiably, be concerned about what will happen to the market in the months ahead.  For a guaranteed quick sale speak to Property Rescue, who will make an offer on your home within a matter of days, or in some cases just hours.  The price they offer will be a little below market value but it will include the legal fees on your sale, and will avoid the need to prepare a Home Information Pack, which could save you hundreds of pounds.

Property Rescue will be happy to talk to you in complete confidence and make a ‘no obligation’ offer on your property.  If you then decide not to proceed that will be the end of the matter – no salesmen will call, nor will you be pestered by phone calls.  Talk to Property Rescue and sell your property…fast!

From August 2007 anyone who is selling a property will need to have a Home Information Pack or HIP. It’s estimated that the average cost of producing these packs will be £600 per property – a lot of money at a time when expenses are high, but with Property Rescue you can avoid that cost altogether.

What is a HIP?

The HIP has to be put together by anyone who is selling or marketing their home. It will contain information about your property that will be useful to your buyer. For example, it will show the energy efficiency rating of your home and will contain certain legal documents, such as evidence that you are the existing owner. There is also the opportunity to include reports on the current condition of your home, and although this isn’t essential it will give buyers a good indication of any work they’ll need to do when they move in.

How do I get a HIP?

A HIP is made up of documents provided by experts. If you sell your home in the normal way you’ll need to have Energy Performance Certificates from an accredited assessor and legal documents from a solicitor. This all means work and money! With Property Rescue you don’t even need a HIP. You won’t have to find the extra cash to pay for all these documents because selling to Property Rescue means that a HIP isn’t required.

How can I find out more about HIPs?

The government has set up a website to give sellers and buyers information about HIPs and what they need to do. You can find it at www.homeinformationpacks.gov.uk, but remember, if you sell through Property Rescue the cost of a HIP is avoided. Property Rescue will be pleased to explain all your legal obligations under the new law and answer any questions about HIPs you may have.

Contact Property Rescue today for a free no obligation valuation of your home. Property Rescue guarantee to buy your property, no matter what its location or its condition.