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Em Morley

Roof Terraces and Balconies Add 12% to Property’s Value

Published On: May 18, 2015 at 3:17 pm

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Categories: Property News

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If you add a roof terrace or balcony to your property, you could increase its value by as much as 12%, found London estate agent Marsh & Parsons.

As summer approaches, homeowners and buyers are considering the importance of outdoor space.

Although central London homes rarely have their own garden, having a roof terrace, balcony or communal garden can still attract buyers or renters.

Roof Terraces and Balconies Add 12% to Property's Value

Roof Terraces and Balconies Add 12% to Property’s Value

Research by Marsh & Parsons revealed that a roof terrace or balcony generally adds 12% to the value of a property, increasing to 25% in Chelsea. Use of a communal garden can increase value by 11%, rising to 20% in Little Venice and Holland Park.

Associate Director and Sales Manager at Marsh & Parsons in Holland Park, David Pittman, says: “As the mercury rises, Londoners don’t want to be cooped up inside and want to be able to feel the wind in their hair. For the right buyer, a balcony or more particularly, a roof terrace, will add significant value to a property in the area.

“Some of the more petite family houses have roof terraces in place of a garden and in these cases, value will be increased by approximately 10% more than the same property without any outside space.

“Having direct access to one of W11’s wonderfully desirable communal gardens can increase a property’s value by 20% or significantly more.”1

Marsh & Parsons estimates that just under a third of flats that come onto the market have a roof terrace, balcony or communal garden, and these properties are much more appealing to buyers, attracting more interest and selling faster than the same properties with no outdoor space.

The agent also calculated that the average price per square foot of outdoor space in London is £897, surging to over double that in South Kensington at £1,925.

CEO of Marsh & Parsons, Peter Rollings, comments: “As a nation, we love our gardens and the Chelsea Flower Show has green-fingered enthusiasts across the country looking on in envy. But with outdoor space at a premium in the capital, not all properties have their own gardens, so roof terraces, balconies and communal green areas can be just as important to buyers looking to unwind in the open air.

“Vendors have long been aware of how much value traditional home improvements such as a new kitchen or bathroom can add to a property and this research may just persuade them to convert flat roofs or balconies into habitable outdoor oases.”1

1 http://www.propertyreporter.co.uk/household/how-much-can-a-roof-terrace-or-balcony-add-to-the-value-of-your-property.html

Rise in properties purchased with sitting tenant

Published On: May 18, 2015 at 3:12 pm

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A new report has indicated that the number of landlords buying property with, ‘sitting tenants’ has increased to its highest level since 2005.

The survey by Countrywide Residential Lettings, which analysed in excess of 65,000 rental properties, indicated that in the last year, 11% of rental properties purchased by a landlord contained a sitting tenant. [1]

Longevity

These figures seem to suggest that more landlords are seeing the value of securing a property with a reliable, long-term tenant already living in. Figures suggest that tenants in properties sold as occupied have been residing in their home for a longer period than the average tenant. 25% of sitting tenants were found to have signed agreements of two years or more, in comparison to just 5% of overall renters.[2]

There are also signs of landlords wanting to buy properties from other landlords with tenants already in place. The proportion of property sales with a sitting tenant rose across the UK. Almost 25% of all house purchases by landlords in London came with a residing tenant, up from 12% in 2008.[3]

Significantly, London and the South East have the lowest yields, but are the areas where purchases with sitting tenants are most prominent. This is more than likely down to the fact that landlords are guaranteed an immediate rental income, thus improving their returns.

Rise in properties purchased with sitting tenant

Rise in properties purchased with sitting tenant

However, between the 2008 and 2014, the North East of England was the area with the largest increase in landlords buying property with a tenant already in place.

Value

David Fell, research analyst at Countryside, feels that, ‘the secondary market of landlords selling investment properties to other landlords is growing.’ Fell believes, ‘landlords are increasingly recognising the long term value attached to keeping a reliable, high-quality tenant. Properties sold with a tenant in situ, which offer a read-made guaranteed income, can even trade at a premium.’[4]

Continuing, Fell stated that, buying a home with a sitting tenant makes sense for a lot of landlords. Having a good tenant already in place can be attractive to the purchasing landlord and means there is rent coming in from day one. It also allows landlord to avoid the costs associated with finding a tenant straight after buying.’[5]

 

[1-5] http://www.countrywide.co.uk/news/as-rents-increase-by-27-landlords-increasingly-look-to-purchase-properties-with-sitting-tenants/

 

 

Fleet Mortgages Cuts Rates on Landlord Products

Published On: May 18, 2015 at 2:40 pm

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Categories: Finance News

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Fleet Mortgages is a new buy-to-let and specialist lender. It has recently revealed rate cuts on individual landlord products.

Advisers who can access Fleet’s products can take advantage of the following standard buy-to-let deals, each with price reductions:

  • 4.09% for a five-year fixed rate at 75% loan-to-value (LTV) – a cut of ten basis points (bps) with a 1% completion fee.
  • 3.95% for a three-year tracker at 80% LTV (LIBOR plus 3.39%) – a reduction of 80bps with a 2% completion fee.
  • 3.99% for a two-year fixed rate at 80% LTV – a drop of 80bps with a 2% completion fee.

On Fleet Mortgages’ limited company two-year fixed rate deal available up to 80% LTV, there has also been a 10bps cut. This puts the rate at 4.79% and has a completion

Fleet Mortgages Cuts Rates on Landlord Products

Fleet Mortgages Cuts Rates on Landlord Products

fee of 1.5%. In the whole range, completion fees can be added to the loan.

Fleet has changed the rates after receiving feedback from intermediaries. It is also believed that further improvements will be launched soon.

Fleet Mortgages has changed its criteria for the maximum age of the borrower at the end of the mortgage term, from 75 to 85-years-old. All its end dates have been extended to 31st July.

The mortgage provider’s products are specifically for experienced landlords and property investors and include mainstream buy-to-let mortgages and financing for those investing through limited companies and for Houses in Multiple Occupation (HMOs).

CEO of Fleet Mortgages, Bob Young, says: “We continually review our product range to make sure all products are as competitive as they can be and that they provide a range of options to both our intermediary partners and their clients.

“Our rate changes make these standard buy-to-let products for individual landlords even more attractive on price and we believe they will be welcomed by advisers. We would also urge all advisers to look at our products for both limited companies and HMOs, as these are incredibly competitive in today’s market.”

Young continues: “Fleet Mortgages is also committed to evolving and enhancing our criteria in order to ensure it is fit for purpose in a changing marketplace; this is why we have increased our maximum customer age at the end of the loan, up from 75 to 85-years old. We recognise, for instance, that people are living longer, that landlords want to hold their properties longer into retirement, plus there is a growing appetite amongst people over 50 wanting to invest in property. Since launch, close to 50% of all our applications are from borrowers over 50.

“We suspect that with the newly-introduced pension freedoms, there will be a small but perhaps growing number of retirees who wish to use money from their pension pot to purchase a buy-to-let investment. It’s therefore important that our criteria reflects these changes and is uniformly unambiguous, which will make life easier for all our stakeholders, particularly brokers and their clients.”1

1 http://www.propertyreporter.co.uk/landlords/fleet-reduces-rates-on-landlord-products.html

 

 

65% of First Time Buyers Must Wait to get on Property Ladder

Published On: May 18, 2015 at 12:50 pm

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Clydesdale and Yorkshire Banks have conducted research that found most first time buyers have to wait longer than planned to get onto the property ladder.

65% of First Time Buyers Must Wait to get on Property Ladder

65% of First Time Buyers Must Wait to get on Property Ladder

The Annual First Time Buyers (FTB) Survey revealed that nearly two thirds, 65%, had to wait longer than expected to move into their first home, with just 8% becoming homeowners earlier than planned.

However, these figures indicate a slight improvement on the previous year, when 68% could not get on the property ladder quickly. The largest proportion (17%) of those who have to wait are delayed between one and two years.

The struggle to break into the housing market means that most new homeowners stay in their first house for a while. The greatest proportion (21%) plan to stay in their first property for between four and five years. 19% do not plan to move for nine to ten years.

In the Midlands and North East, the highest percentage plan to stay for between nine and ten years, in contrast to those in London, the South West and Wales, who hope to stay for between three and four years.

Director of Retail Banking, Steve Fletcher, says: “Clydesdale and Yorkshire Banks have extensive experience of helping first time buyers get onto the property ladder and we know how difficult it can be to buy your first home.

“It is positive that our research shows that there is a small improvement on the previous year, however, almost two thirds of first time buyers still face challenges in meeting their own timescales for being a homeowner.

“We remain focused on supporting first time buyers and helping to make their dream of owning a home a reality. Whether it is saving a deposit or finding the right mortgage to suit individual needs and circumstances, Clydesdale and Yorkshire Banks can help throughout the process of becoming a homeowner for the first time.”1

1 http://www.propertyreporter.co.uk/property/65-of-ftbs-are-waiting-longer-than-expected-to-get-on-the-ladder.html

Surge in houses on the market expected

Published On: May 18, 2015 at 12:28 pm

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The post-election surge of homes being placed onto the market has begun, with would-be buyers set for more homes to choose from in the coming months.

Figures from Rightmove suggest that election uncertainty led property prices in England and Wales to drop by 0.1% in April. However, encouragement can be taken from statistics taken from the months surrounding the last election campaign.

Promising Past

Rightmove said that in the three-months following the 2010 election campaign, the number of properties on the market rose by 17%, in comparison to the three-months prior to the vote.

Miles Shipside of Rightmove, said that the slight slowdown in property prices recorded in April was an, ‘election-driven price stall which gives some buyers only short-term relief from the back-drop of a long-term housing shortage and many estate agents are now reporting a resurgence in interest following the surprise election results.’[1]

Mr Shipside continued by saying that, ‘the underlying supply/demand imbalance has meant the election uncertainty has not had a negative price outcome in seven out of ten regions in the country.’ He continued by stating that, ‘having been faced with an all-time asking price high in April of £286,133 nationally, any drop is welcome to those at the upper end of the stretched affordability curve.’[2]

Slight dip

As Shipside notes, only three regions in England and Wales recorded a dip in asking price values. These regions were London, the North East and Yorkshire and the Humber. However, this was enough for the average overall price of a property to fall by £242 to £285,891, the first fall in May since the last election.[3]

Surge in houses on the market expected

Surge in houses on the market expected

Shipside commented that, ‘election uncertainty and particularly the threats of financial penalties to landlords and those with properties valued at over £2 million put a brake on the market and their removal gives a reason for a rebound in activity and prices.’ Furthermore, he added that, ‘buyers should note that there is often a surge of property supply after an election, as those who have held off coming to market decide to take the plunge. Many potential sellers have held back expecting a period of hung-parliament uncertainty but they could now decide to catch the late spring market.’[4]

Welcome

The rise in properties becoming available on the market will hopefully ease the largest shortage of properties for sale in almost six years, as highlighted by the latest report from the Royal Institution of Chartered Surveyors.

Simon Rubinsohn of RICS believes that, ‘alongside an increased flow of second hand stock, it is absolutely critical that new government focuses on measures to boost the flow of new build.’[5]

[1-5] http://snip.ly/M4bn#http://www.dailymail.co.uk/money/mortgageshome/article-3086026/Post-Election-surge-property-sale-tipped-Rightmove-prices-dip.html

 

 

 

 

Rental Evictions in the UK Study

Published On: May 18, 2015 at 12:18 pm

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Categories: Landlord News

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Rental Evictions in the UK Study

Rental Evictions in the UK Study

The amount of tenants evicted from their rental homes is at a six-year high as rents remain expensive and benefits are cut. If you have been evicted from rental accommodation, The Guardian would like to hear from you.

By visiting the link below, you can contribute to the study, or use the form to share your experiences. You can remain anonymous or alternatively email guardian.witness@theguardian.com.

Visit http://www.theguardian.com/money/2015/may/15/have-you-been-evicted-from-rental-housing-in-the-uk to share your views.