Notting Hill

Preparing a home for sale or rent in winter in Notting Hill

Our customers at Homesite are at not just investors in buy-to-let, they are homeowners too. And, if of you are trying to sell or rent out a house at this time of year, it probably won’t be looking at its best: the trees are bare, their leaves scattered across the garden, both front and back. Any flowers have long since withered and died and you’ve almost certainly given up mowing the lawn. Inside it’s not much better, it’s dark and gloomy and the last time you cleaned the windows was in a mad rush of enthusiasm last spring. So how on earth can you make it look attractive to a potential buyer?

Starting with the exterior, the first and most obvious thing to do is to have a really good tidy up. The lawn is one of the most visible elements of your garden and you will be amazed how much of a difference it makes when it is neatly cut. The good news is that while you’re mowing it, you’ll be clearing away the leaves at the same time. And don’t forget - give the edges a trim while you are at it. Next, sweep the remaining leaves off any pathways and terraces and cut back any dead plants. If your garden is still looking a bit drab, there are one or two winter flowers you can buy, such as cyclamens or winter flowering pansies. Even the odd evergreen shrub can help, especially if it’s got some bright berries on it, so get yourself down to the garden centre and see what is on offer.

Unfortunately, in winter, everything seems so much more exposed, so the little details show up more than normal. It means you need to ensure that: windows, doors and gates are either washed or repainted: knockers, knobs and numbers are shining - hinges are oiled and the porch light actually has a working bulb in it! And, in the run up to Christmas a little holly wreath wouldn’t go amiss either.

That brings us on to the next steps. When you go inside a house at this time of year, if there is a welcoming glow coming from inside, it makes you feel good. If it is dark, it has the opposite effect. So, light it up. Not just the hallway, light up the whole house, especially those dark corners. A great tip is that, if you want to replicate natural light conditions, you need lots of low-level light sources. A single, high wattage bulb, on the other hand, can make a room look like an interrogation centre.

Temperature is just as important as the lighting levels and can have a big influence on how someone feels about your home. Normally, most people turn off the heating while they are out, but if there are going to be viewings, make sure it stays on and is at a comfortable temperature - that means neither a sauna, nor a fridge. According to most experts, that is around 19C. And, clearly, the most welcoming thing of all is a fire, roaring in the hearth. Mind you, you should always think twice before leaving a real fire unattended - after all you want to sell or rent the place, not burn it down.

If you still need to add some extra cheer, you can always put some cut flowers around the house. A Christmas tree and a few festive lights would be great too, but don’t clutter up the place too much as it can make the rooms feel smaller. Another mistake to avoid is that huge bit of plastic that covers the carpet by the front door. It is highly practical but not the kind of thing that makes visitors feel relaxed and welcomed. Things do get mucky at this time of year, it's true, but if you’ve got a spare bit of the carpet in the attic, cut it to size and use it as a rubbing mat. Or you could get some coir matting from your local DIY store.

There you go - plenty of quick and simple ways to make your house sparkle, whatever the weather.

by adam

What effect will stamp duty changes have on house sales?

One of the few remaining measures in Kwasi Kwarteng’s mini-budget was the slashing of stamp duty, especially for first-time buyers. So, what are the changes and how will they affect the housing market?

There are two main changes – for ordinary buyers, the Stamp Duty (SDLT) threshold has been raised from £125,000 to £250,000. From there on, as before, they will pay 5% between £250,001 and £925,000, 10% from £925,001 to £1.5m and 12% thereafter. For first-time buyers, the Stamp Duty threshold has been raised from £300,000 to £425,000 for properties of up to £625,000 (up from £500,000). The 3% surcharge for second properties and BTLs and the 2% surcharge for foreign buyers remain unchanged.

As a result, 33% of all homes for sale will no longer be subject to SDLT (7% previously). At the time of writing, the average property for sale on Rightmove is £367,760. A typical buyer would therefore pay £8,388 before the change and £5,888 afterwards – a saving of £2,500, which is their maximum achievable saving. For first-time buyers, the figures are higher - 66% of homes will now be SDLT-free, with savings of up to £11,250. And, if they were to buy the average property, their SDLT would be reduced from £3,388 to zero. There would be savings for second home buyers, too – their tax bill on the average property coming down from £19,421 to £16,921.

Although first-time buyers (FTBs) would therefore appear to be the biggest beneficiaries, it is not so straightforward. FTBs tend to buy cheaper properties - flats and small houses which are often below the average price. In fact, it is estimated that the majority of FTBs spend under £250,000 on their first homes, which means the reduction in Stamp Duty will have no effect whatsoever on them, as they were already below the tax threshold. It is only in the more expensive areas, such as London, where the changes will be felt most, and only for purchases under £625,000, bearing in mind the average London property on Rightmove is £682,499.

If, though, an FTB was to buy a typical flat, say, in the London borough of Merton (avge. flat price £431,131), they would previously have paid £6,557 in tax but will now pay just £307, a saving of £6,250. The maximum saving would be for a property costing £625,000, whose stamp duty would have been reduced from £21,500 to £10,000.

STANDARD HOME PURCHASE

BRACKETS                     RATE
£0 - £250,000                    0%
£250,001 - £925,000         5%
£925,001 - £1,500,000     10%
£1,500,001+                     12% 

FIRST-TIME BUYERS

BRACKETS                     RATE
£0 - £425,000                     0%
(but only for purchases up to £625,000)
£425,001 - £925,000          5%
£925,001 - £1,500,000      10%
£1,500,001+                      12%

STAMP DUTY ON AVERAGE HOUSE
£367,760 (Rightmove)

STANDARD PURCHASE          FTB
SDLT was £8,388                       £3,388
Now £5,888                                £0
Saving £2,500                            £3,388

So, will the savings stimulate more activity in the housing market? The answer is a qualified yes. Unlike the Stamp Duty holidays, though, the changes are permanent, so there will be less urgency. In addition, the maximum savings of £2,500 for normal buyers, although not unwelcome, are not enough to offset the rises in mortgage rates. For first-time buyers, however, it is a different story. One of the biggest barriers to entry for them has been raising the deposit, which includes making a provision for Stamp Duty. In the more expensive area, that just got considerably easier.

by adam

How to reduce fuel bills this winter

Over the last few months, the headlines have been full of horror stories about surging energy costs. And, even though there was some relief when Liz Truss capped prices, we will all still see a substantial rise in our bills. To give you an idea of the scale of the increase, last year, the average energy bill was capped at £1,277. It is now more-or-less double that at £2,500. Whether it’s your own home or a rental property (especially ones with bills included), we thought it might be a good time to give you some tips on how you can reduce your bills.

1. Up to a quarter of your home’s heat escapes through the roof, so one of the first things you should do is make sure your loft is properly insulated. Even if you already have some form of insulation, it may not be enough. The recommended depth for mineral wool is 270mm. Installing it will cost around £300 for the average home (there are some grants available for those on low incomes). It typically saves approximately £350/year on current prices.
2. Turning the heating down by just a few degrees can also make a big difference. If you reduce it from the average 20° down to 19°, you may not even notice the difference. Every degree is worth approximately £130/year. While you’re at it, make sure your hot water is set at 60º C or 140º F. If it’s not, you could be wasting money.
3. Lights account for 19% of your electricity bill. If you replace all your standard bulbs with energy-saving LED ones, you’ll save around £120/year.
4. Something else that’s quick and easy to do is to fit draught excluders in those gaps around doors and windows, especially where sash windows join. And, since around 14% of air escapes via the chimney, it is also worth sealing up any unused fireplaces. Savings - appx. £150/ year.
5. Try taking a shower rather than a bath, as it uses almost 70% less hot water. If at the same time, you fit an eco-showerhead, a family of four will save about £150/year. And, if you have a water meter, you will save on your water bill too.
6. Just turning things off rather than leaving them on standby will save you £100-£180/year.
7. According to LG Electronics, "heating the water in the wash drum accounts for about 90% of the energy your machine uses." So, do your wash at lower temperatures and save £80/year.
8. Some of the more expensive solutions include changing your boiler, which accounts for 79% of your fuel usage. Replacing one for a 3-bed house costs around £1,500-£2,000 but could save over £400/year if your boiler was old and inefficient.
9. If you put in double or secondary glazing, it’s expensive, but could save you £330/year and eliminate some of those unpleasant draughts. The installation costs will vary wildly depending on the number of windows, their size and the materials used. An average-sized, double-glazed window will cost around £600 to buy and fit.
10. Many people are also considering alternative sources of heat and energy, such as wood burners, solar panels, and/or making more use of existing fireplaces. There are though, a few things to bear in mind:

Solar panels: a 4KW PV system will cost around £6,000 to install and will normally save you between £180 – £480 a year. Demand for them, though, is likely to be very high at the moment.
Wood burning stoves: The average stove costs between £900 and £1,500 and another £800 to £2,500 to install, depending on whether you have a chimney or not. You should be aware that they are subject to Building Control. Before energy prices rose, wood-burning stoves were said to be 13% cheaper than gas central heating, so they will be even better now.
Making use of existing fireplaces: if you haven’t used them for a while, make sure you get them cleaned first, which should be done at least once a year. You also need to check if you are in a smoke Control Area (https://www.gov.uk/smoke-control-area-rules) before deciding what type of wood or coal to buy.

*Savings will vary considerably between properties. Older, more inefficient homes may see considerably more savings than newer ones. Savings are based on the current, £2,500 price cap.

by adam

Base Rate Rise

As ever, at Homesite, we like to keep you up to date with all the latest news and with the Bank of England raising the base rate by 0.5% to 2.25%, we thought it might be a good time to take a look at its implications.

The rise is the seventh rise in a row and the base rate is now the highest it has been since November 2008. The Bank was originally planning on making the announcement on September 15th, but out of respect for the sad passing of the Queen, they postponed it until 22nd September.

There was speculation it could be a record-breaking 0.75% rise, so there is some relief at the smaller rise. The money markets are now factoring in that it will keep on rising until February of next year, peaking at 4%, with typical mortgage rates of 4.4%, before falling back to 4% in April. There are, however, a lot of variables that could come into play during that period, not least a new Prime Minister, so the outlook could change quite quickly.
Even before the announcement, mortgages rates were rising, with even the very best deals around 3.5% and the average closer to 4.5%. There has also been a reduction in the number of available deals as lenders consolidate, although they are at least lasting a little longer before being withdrawn from the market - up from a low of 17 days to 28.
To give you an idea of where mortgages currently are, and how much they have risen: below is a selection of best buys from Moneyfacts.co.uk from both September 2022 (bold text) and September 2021 (plain text). It is easy to see why large numbers of borrowers are rushing to fix their rates before they go up again. As rates are changing on a daily basis, these figures are already likely to have been superseded.

Best two-year fixed rate
Sept 2022: 3.44% from Post Office Money
Sept 2021: 0.92% from Barclays

Best three-year fixed rate
Sept 2022: 3.77% from Coventry BS
Sept 2021: 0.89% from Nationwide BS

Best five-year fixed rate
Sept 2022: 3.49% from Barclays
Sept 2021: 0.98% from NatWest

Best discounted variable
Sept 2022: 1.98% from Progressive BS
Sept 2021: 0.99% from Progressive BS

Buy-to-let (BTL)

Best two-year fixed rate
Sept 2022: 3.89% from The Mortgage Works
Sept 2021: 1.19% from The Mortgage Works

Best five-year fixed rate
Sept 2022: 3.99% from The Mortgage Works
Sept 2021: 1.44% from The Mortgage Works

Best discounted variable
Sept 2022: 2.29% for 2 years. from Bath BS
Sept 2021: 1.66% from Leek United BS

The good news is, despite consecutive base rate rises, the huge gap between supply and demand is ensuring house prices remain steady. Buyer enquiries are currently 20% above the level they were at in 2019. And, at the same time, although the supply of new property to the market has improved slightly, it is still heavily restricted, with available stock down 39% over the same period. Price rises, though, are not immune to the base rate and rises are likely to modify over the coming months but still remain in positive territory (figures: Rightmove).

Tim Bannister, Rightmove’s Director of Property Science says:

”It’s likely that the impact of interest rate rises will gradually filter through during the rest of the year, but right now the data shows that they are not having a significant impact on the number of people wanting to move. Demand has eased a degree and there is now more choice for buyers, but the two remain at odds and the size of this imbalance will prevent major price falls this year. For those looking to move who are concerned about interest rate rises, it’s important that they get a mortgage in principle early on in their moving journey to understand what they could afford to borrow and find out about the rates available to them to assess what they are able to repay each month.”

He goes on to add that he expects prices to end the year 7% up on 2021.

by adam

What is a Property Deed?

When you buy a piece of property, you will usually have to sign some sort of document. This is because real estate is one of the few types of assets that comes with its unique set of laws and regulations. In general, these documents are referred to as deeds. Property deeds are legal documents that prove that someone owns a particular land or property. They also outline the terms and conditions for transferring ownership if the owner ever decides to sell it or give it away for another reason. So even if you’re not considering selling your property anytime soon, it’s still important to understand what deeds are and how they can help protect your land.

What is a Property Deed?

A property deed is a legal document showing real property ownership. The deeds of property usually indicate the owners’ names, the legal description of the property, and the date when the owners bought their pieces of land. A deed also states when and how the owners can sell the property if they choose to. Once they sell the property, a new deed must be created to give to the new owner. Property deeds also act as proof that someone owns a particular piece of land or property. 

Why Do You Need A Property Deed?

There are a few reasons you should be careful to hold on to your property deed(s). First, if you ever need to make a claim on the property, then having a deed that proves you own it is crucial. If you don’t have the deed, then you might have to jump through some hoops to prove that you should be allowed to stay on the land. You may have to leave if someone else owns the land and you don’t have a deed. Second, if you ever want to sell the land. If you don’t have the deed and someone else does, then you’ll miss out on the chance to sell your property. So, if you want to sell your land, keep the deed in a safe place. If you have a deed, then you can use it in the future when you want to sell the land.

Types of Property Deeds

There are several different types of property deeds, and each one serves a different purpose. For example, quit claim deeds are used to transfer ownership of a piece of land, while warranty deeds are designed to protect the seller from any future claims against the land. There are also grant deeds and special warranty deeds, which are rarer variations of these two options.

How to Safely Store Your Property Deed

You can do a few things to keep your property deed safe and secure. First, make sure that all of your important documents, including your deed, are stored in a safe place. This can be a safety deposit box or a fireproof box in your home. Second, make sure you record your property deed in a central database. This will help protect you if someone else claims to own your land.  Third, consider making a digital copy of your deed. This can be helpful if you need to share the details of your deed and you don’t have a physical copy.

by adam

What is Ground Rent?

You probably have a vague idea of what ground rent is. You know it is something that you need to pay to own property, but you’re not sure how much it costs or even what it means. Many people find the idea of ground rent bewildering and confusing. In this article, we explore the meaning behind ground rent and explain different aspects of this regular payment. Whether you are looking to buy a house, apartment, condo or any other property, there is almost always an additional cost involved called ground rent. Read on to find out what ground rent is, as well as how much you can expect to pay if you are considering buying a property that has it included in the purchase price.

What is Ground Rent?

Ground rent is a regular payment made to the owner of the land that you are renting. The fee is in exchange for the use of the land and is a form of leasehold tenure or a long-term lease. Many people are confused because the lease is between two parties, the landowner and the tenant. Ground rent is a periodic payment made by a homeowner or tenant to the owner of the land on which the home or building sits. Ground rent is charged based on the number of years that the lease has left. For example, if you have a 50-year ground rent lease, you will pay 50 annual instalments. Ground rent is paid to the landowner by the homeowner or tenant who has leased the land. The ground rent is usually fixed, and the payment amount stays the same over the years.

How Much Does Ground Rent Cost?

The cost of ground rent is usually incorporated into the price of the property and paid by the buyer as part of the purchase. This is generally done as an upfront cost and a down payment for the lease agreement. The amount of money you will have to pay for ground rent will depend on the location and value of the property. Ground rent is usually charged quarterly, monthly or yearly, and the amount will depend on the length of the lease.  Ground rent is often charged as a percentage of the property’s value or market rent. 

What's Included in Ground Rent?

Ground rent is usually paid to cover maintenance costs and necessary repairs for the building itself.  The lease usually outlines what precisely the ground rent payment covers.

Fixed and Escalating Ground Rent

The length of the lease will also have an impact on the ground rent. If you have a fixed-rate lease, the amount you pay each year remains the same for the entire length of the lease. However, with an escalating lease, the amount you pay each year will increase over time. Therefore, property owners, especially large corporations and real estate companies, often opt to include escalating ground rent clauses in their lease agreements.

Conclusion

Ground rent is a nominal amount paid by the homeowner to the property’s owner (usually a real estate company or developer). It is usually a yearly payment, either on a fixed amount or as a percentage of the property’s value. When you buy a property with ground rent, you have to pay the cost of the rent for the rest of your life. Always read the contract carefully to find out how much ground rent you will be paying and how it will fluctuate. You can also ask the seller for information about the current owner and their right to increase the rent. 

by adam

Stamp Duty for Non-UK Residents

For those of you who are not UK residents, it is important to be aware of the stamp duty rates and how they may apply to you when purchasing property in England or Wales. In this article, we will provide a comprehensive overview of stamp duty for non-UK residents, including what constitutes a taxable transaction and how much tax you can expect to pay. We will also discuss some common exemptions from stamp duty and ways to reduce your bill. So whether you are thinking of buying a property in the near future or are just curious about this tax, read on for more information.

What is Stamp Duty?

Stamp duty is a tax that is levied on certain legal documents in the United Kingdom. The most common type of stamp duty is charged on property transactions, such as when you buy a house or land. This tax is usually paid by the buyer, but there are some circumstances in which the seller may be liable.

Calculation of Stamp Duty

The amount of stamp duty you will pay depends on several factors, including the value of the property, whether it is your main residence and whether you are a first-time buyer. In England and Wales, rates are currently as follows:

• Properties worth up to £125,000: 0%
• Properties worth between £125,001 and £250,000: 0% on the first £125,000 and then 0% on the remaining amount
• Properties worth between £250,001 and £925,000: 0% on the first £250,000 and then 20% on the remaining amount
• Properties worth between £925,001 and £150,500: 0% on the first £250,000; 20% on the next portion up to£925,000; 40% on anything above that
• Properties worth more than £150,500: 45%.

Less Than Market Value or Inherited Property

If you are buying a property for less than market value or inheriting a property from a family member who has died, you may be eligible for reduced rates of stamp duty. There are also certain types of properties that are exempt from stamp duty altogether, such as caravans and mobile homes.

Joint Bought Property

If you are buying a property jointly with another person, each of you will need to pay the relevant amount of stamp duty based on your respective share of ownership. So, for example, if you are buying a property worth £300,000 with someone else and you will own 60% of it, you will need to pay £120,000 in stamp duty (0% on the first £250,000 plus 40% on the remaining £50,000).

Stamp Duty Applies to Other Legal Documents

As well as being charged on property transactions, stamp duty can also apply to other legal documents such as shares and life insurance policies. The rates for these vary depending on the type of document and its value.

Scotland

If you are buying a property in Scotland, the rules for stamp duty are different. The tax is called Land and Buildings Transaction Tax (LBTT) and is calculated using a different system to the one used in England and Wales.

Who Pays Stamp Duty?

As we mentioned earlier, stamp duty is usually paid by the buyer when they purchase a property. However, there are some circumstances in which the seller may be liable for the tax instead. This includes cases where:

• The buyer fails to pay the stamp duty within the required time period
• The property is sold for less than its market value
• The property is inherited by the buyer

When is Stamp Duty Payable?

Stamp duty must be paid within 14 days of completion if you are buying a property in England or Wales. If you are buying a property jointly with another person, each of you will need to pay your share of the stamp duty within this time period.

Interest and Penalties

If you fail to pay stamp duty on time, you will be liable for interest and penalties. The amount of interest you will owe depends on how much stamp duty you owe and when it is paid. For example, if you owe £500 in stamp duty and pay it one month late, you will owe an additional £50 in interest. Penalties for late payment of stamp duty can be either civil or criminal. Civil penalties are issued by HM Revenue and Customs (HMRC) and are usually a percentage of the tax owed, with a minimum penalty of £100. Criminal penalties can only be issued by the courts and may result in a fine or even a prison sentence. However, it should be noted that criminal prosecutions for failure to pay stamp duty are very rare and usually only occur in cases of serious tax evasion.

by adam