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Tenant Permitted Payments

Refundable Holding deposit - Capped at 1 weeks rent per tenancy

Security Deposit - Capped at 5 weeks rent for annual rental under £50,000, or 6 weeks rent for annual rental over £50,000

Rent - The agreed monthly rent

Changes to tenancy - Capped at £50 inc VAT

Early termination charge - Not exceeding the landlord’s financial losses

Late payment of rent - Interest of 3% above BoE base rate for each day the rent is late, once it is 14 days overdue

Replacement keys - Reasonable costs or give the tenant the option to purchase themselves

Utilities, council tax, communication services, TV Licence etc Tenants own responsibility unless otherwise stated in contract

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Our Guide to Buying

QUESTIONS YOU NEED ANSWERS TO BEFORE YOU CONSIDER BUYING

Knowing what you want a property for. Do you want to buy a property to renovate and re-sell? Do you want to buy a property to rent out? Or do you want to buy a property to live in? How are you buying the property? Cash or mortgage? Knowing what you need a property for and how you are buying it will help with the finances in terms of knowing how much you are setting back for renovation costs and costs of moving. 

 

YOUR FINANCIAL SITUATION

Speak to a mortgage broker. How much can you afford to pay? Buying a house requires a minimum of a 10-20% deposit of the purchase price, or more if you can afford it. If you are a first time buyer look into help-to-buy schemes which only require a 5% deposit. Speaking to a mortgage broker about your financial situation means they can let you know how much you can afford which will then highlight how much of a deposit you need. 

Your affordability is calculated on how much you earn. Usually 4 and a half times your annual salary. For example if you earn £50k a year, your mortgage amount will be £200k which means you will need at £20k - £40k deposit, if you earn £100k a year your mortgage will be £400k which means your deposit can be anywhere from £40k upwards.   
Are you employed or self-employed? If you are employed any mortgage lender will want to see your last 3 months payslips and corresponding bank statements. If you are self-employed, you will need an accountant to supply a reference that shows your income over 3 years.

 

LOOKING FOR A PROPERTY

Once you know how much you can afford, the next part is finding the right property for your needs. If you are looking for a project to renovate and sell look at properties under or close to your budget as you can always negotiate on price if the condition isn’t great. 

What area are you looking to buy in?  Which area you chose to buy your property in is important. It is good to know the area, research it first. Are there any future development in the area such as added transport links, area regeneration or new amenities such as shopping centres, cinemas etc. which will help price growth? 

 

MAKING OFFERS

Looking at property. Once you’ve chosen your area(s) and you know your budget you look at properties within or just over and under your budget. Get a feel of what is on the market.

If you find a property that fits the bill view it, speak to the agent/vendor who is selling it, find out as much information as possible. Key questions to ask; have there been any other offers? If it’s been on the market a while why hasn’t it sold yet? What is the owners’ situation? Are there any issues with the property you should know about? Always view twice maybe 3 times before making an offer. Even see the property with a builder or architect to get an idea or quote for potential renovation and extension costs if this is in your project plan. This way you can calculate what profit will return if you are buying for investment purposes. If you’re keen make an offer. Make an offer you are comfortable with that is affordable to you. 

 

AFTER YOUR OFFER IS ACCEPTED

You’ve had an offer accepted on a property. You now need a solicitor. A solicitor will move through the purchase to get you completed on the property. These costs can vary, depending on area, property and what service you want the solicitor to take out. It’s good to get quotes before buying so you can add these costs into your budget.

If you are in a chain free situation, which means you are not selling a property and the property you are buying is not dependent on that owner selling, the purchase can take anything from 6 weeks onwards. Make sure when your offer is accepted, the solicitor, agents and most importantly, the vendor are all in agreement with a suitable time frame you want to move to.

Speak to your solicitor regularly. When moving forward with a property purchase communication with your agents and solicitor is key and plays a fundamental part with getting the purchase over the line. Make sure things are moving forward with your purchase. Your solicitor will need paper work and forms filled out and returned, make sure you do all of this promptly. Your solicitor will raise what is called “enquiries” about the property you are buying. This gives you all of the information about the property i.e. when it was built, how it was built and the surrounding area of the property. 

 

RENOS/REFURBS

You now own your property and the purchase is complete. If you are renovating don’t take longer than 8-12 months. Don’t cut corners. Always chose neutral finishes. BUT don’t be cheap! Cheap renovations can be spotted a mile off and will only cause future buyers to want to push down your price. Know the properties worth on completion of renovation and get updated valuations. Selling with the option of a quick sale will only attract likeminded buyers who also want to move quickly. 

 

Source Director