rent-reviews

How Rent Reviews Work

What exactly are rent reviews? If you are renting out a commercial premise such as a restaurant, office, warehouse or shop, the landlord has the right to increase the rent after a certain period of time. As a business owner, you need to be on top of rent reviews to maintain control over your costs.

Perhaps the rent needs to change due to higher running costs, increase in inflation or greater demand in the area. We take a look at how they work, and everything else you need to know about the process.

 

How-rent-reviews-work

 

When are rent reviews held?

Rent reviews will usually occur every five years or less than this, depending upon the lease agreement that is signed between the tenant and landlord. It may very well be the case that for short-term leases there aren’t any rent reviews at all, but to be sure about this it is important to check with your landlord.

 

How is the new rent price determined?

The new rental price is usually determined by the ‘open market rental value’. What this means is that if the landlord was to put this property on the market at the time of review, what amount would he or she expect to receives given the current rental market in the local area, based on similar agreements made to your lease. Factors that determine the open market rental value may include:

  • How the premises are used (for example whether it is being used simply as storage space or as an office space)
  • Level of rents in the area

Rent increases are not always based upon the open market rental value, they may instead be linked to the Retail Price Index which is heavily linked to inflation.

 

Who decides the new rent value?

If it has been decided that upon a rent review there will be an increase, it is most likely that your landlord will be the one to inform you of this decision. However, if you believe that the rent review is unreasonable, it is possible to dispute the rent review.

This is usually passed onto an independent expert who can assess the individual circumstances between landlord and tenant and decide what would be the best possible agreement to come to. There are companies that specialise in rent reviews including property and leisure management companies and solicitors.

If you do disagree with the proposed rent increase, it is extremely important that you put this in writing to the landlord as soon as you possibly can. This is because a large number of leases will stipulate a timeframe within which you can dispute a rent review. If you miss this deadline, it could mean that you will have no other choice but to accept the increase.

 

Do rent reviews take into account improvements made to the property?

Generally speaking, any improvements that you have made to the premises during the term of the agreement will not be considered in a rent review. However, if you do make any improvements it is vital you keep a complete record in the event that you are accidentally charged as you will likely need to provide proof. Nevertheless, you should bear in mind that if you have asked the landlord specifically to make improvements during this term, this may be factored into a rent review.

 

Do rent reviews ever lead to a decrease in rental value?

A question that is often brought up when it comes to rental reviews is what happens if the open market rental value has fallen in the area surrounding the premises. Could this lead to a decrease rent?

Unfortunately, it isn’t as straightforward as that, and it would most likely require you to refer back to your lease agreement. This is because many agreements will include an ‘upwards only’ clause. That means that should the open market value decrease, the rent can only ever remain the same as opposed to decreased.

 

How much notice do I get for a rent increase?

In the UK, the amount of notice you are given about a proposed rent increase is usually three months ahead of time, via a written notice by your landlord. However, do check in your own lease agreement the specifications of this timeframe, as it can differ depending on the contract.


property-block-management

What is Property Block Management?

Block management is a crucial element to take account of when it comes to the upkeep and maintenance of residential property blocks. As a service that is needed by both the block owners and landlords as well as individual leaseholders within the development, having a properly managed block can be the difference between a high turnover of tenants and leaseholders and longer, established parties.

Effectively managing a block is specialised and requires skilled experts with the right knowledge to ensure all parties’ interests are taken care of and tenants are able to live in comfort and peace. There are many companies that offer block management services but it remains important to research and check reviews and opinions about each to make sure you choose the best block management provider for your needs and requirements.

Furthermore, this service is equally applicable to both small and larger blocks, with the needs and requirements simply being on different scales for each. Moreover, by having well managed and well looked after residential blocks, the likelihood for conflicts with residents, leaseholders and tenants is greatly reduced as effective block managers will be able to address and rectify any issues before they escalate.

 

What-is-Property-Block-Management

 

What Does Block Management Entail?

Whilst there are a few similarities between block management and traditional property management, the challenges faced when looking after a block with potentially tens or even hundreds of residents as opposed to a property with a handful are very different. There are different legal implications, laws to be accounted for and services that need to be provided when the property in question is a block as opposed to a single housing unit or a house.

For example, it is very common in the case of residential blocks for the block and the freehold to be owned by one party [the freeholder] and individual flats owned by other parties [leaseholders]. The leaseholders will each pay service charges, also known as ‘ground rent’ to the freeholder, whilst tenants of the leaseholders will pay rent. It is however, the ultimate responsibility of the freeholder to ensure the block itself is properly managed and this is where a block management company come into the equation.

It is important therefore to also understand the differences between leaseholders and freeholders to know who is responsible and accountable for what.

The responsibilities of the nominated block management company will include:

  • Money and service charge collections
  • Health, safety and security
  • Maintenance and repairs
  • Insurance and legalities

 

Money and Service Charge Collections

Each leaseholder, who owns a specific flat or apartment in the block will be liable for service charge payments to the freeholder. This will be collected by the block management company who will then pass on these fees to the freeholder as part of the service they are paid to provide. Other payments and charges may need to be collected by the block manager too. For example, if any resident needs to pay for anything affecting the block, for example if they break a communal window, this will be collected and facilitated by the block manager.

 

Health, Safety and Security

Ensuring the block is safe from any hazards such as dangerous wiring, asbestos and other health hazards is part and parcel of what management of all blocks will include. Furthermore, the block management company should carry out regular site inspections to make sure nothing is amiss and nothing dangerous is present. For example, corridors that are full of rubbish or peoples’ possessions can pose a significant fire hazard by obstructing exits and safe passages. They will also be responsible for making sure the property is secure, with communal doors and main access points not vulnerable to intrusion and trespassers.

 

Maintenance and Repairs

It is inevitable that with numerous people all sharing the same corridors and communal areas that there will be a degree of wear and tear and that there will be things that from time to time will need fixing and replacing. Block managers will identify these issues and what needs doing and will allocate tradespeople, cleaners, gardeners and otherwise to take care of these things so that the residents and leaseholders need not worry.

 

Insurances and Legalities

In addition to the buildings insurance required, the management company will ensure that all relevant legislation and regulations are taken care of and abided by as they should be by tenants, leaseholders and landlords.


secured-and-unsecured-lending

How Does Unsecured Lending Work?

Whilst both secured and unsecured lending sources have been around for many years, there are numerous significant differences between these two useful sources of finance. With secured loans such as mortgages and logbook loans allowing the borrowing of larger amounts (up to millions of Pounds in some cases) and unsecured loans offering an increased degree of flexibility and convenience, it is important know the major differences between both and the benefits of using one form of a loan or another.

Unsecured loans on the other hand, including the likes of instalment loans, payday loans and many other options, allow the borrowing of smaller amounts but in a quicker time-frame than most secured loan options. Both categories of loans have their preferred uses and almost all forms of regulated loans will have their restrictions with regards to amounts that can be borrowed, credit checks and regulatory framework and underwriting procedures.

Moreover, both forms of loans are able in cases to be used for personal, business and property-related cases to different effects. For example, a bridging loan may be used for a property purchase as part of an investment portfolio, whereas mezzanine finance (a variation of bridging loan) is more likely to be used for business purposes.

It is therefore important to understand what common types of unsecured lending include as well as how and where they differ from secured loan options available in the UK.

 

Common Types of Unsecured Loans

Unsecured loans in principle are as simple as a prospective borrower making an application for a desired sum of money to be repaid over an agreed timeframe, with interest added; making a profit for the lender. In past years, the most common route of acquiring an unsecured loan was via one’s bank.

 

Woman-organising-payday-loan

 

A conversation with the bank manager and some quick checks of one’s overall financial status was all that was needed in order to secure a much-needed loan of potentially several thousand Pounds. Nowadays however, there are more options than ever and the process differs.

Payday Loans – Perhaps the best-known and most widely recognised form of unsecured loan, payday loans have been around for quite a while. They allow a borrower to borrow a smaller amount; usually up to around £1,000 to be repaid on the next payday. These loans are often referred to as ‘emergency loans,’ as they tend to be used when un unexpected bill or expense pops up and the borrower needs to be tided over until their next payday where they will clear their debt and the interest I none go.

Instalment Loans – These loans follow a similar premise to that of payday loans in that whilst they may be of slightly larger amounts, they still tend to be smaller amounts (also up to around £1,000.) However, where these differ from payday loans is that instead of having to pay off the loan plus interest in one go, the borrower agrees with the lender to repay over a pre-agreed timeframe, which will be anywhere up to 12 months. This means that the repayments are much more manageable for the borrower as they will be repaying their debt spread over a longer time.

Guarantor Loans – Guarantor loans in themselves are nothing new. These work by the borrower being able to borrow a larger amount than instalment or payday loans as the loan amount and their debt is guaranteed by a third-party guarantor who agrees to cover the debt and repayments should the primary borrower default. This works in a similar way as having collateral on a secured loan may, in that there is a degree of security for the lender that the borrower and the lender both have fall backs in the case of missed payments. These loans allow larger amounts to be borrowed (up to around £10,000.)

 

What Are the Differences Between Secured and Unsecured Loans?

Whilst both secured and unsecured loans can sometimes be used for similar and sometimes even the same purposes, there are several differences between these two categories of loan which are important to be considered when making the choice of which loan and which specific type of loan to apply for:

  • Security on the Loan

Arguably the most important difference between secured and unsecured loans is the very nature of both types. Secured loans require a high value asset; usually a property or vehicle to be used as collateral on the loan. This acts as a form of security meaning that if the borrower cannot repay, the lender has the power to seize the asset to recoup their costs and repay debts owed by the borrower.

  • Amount Borrowed

Because secured loans have collateral, it is possible to borrow significantly more when it comes to secured options as opposed to unsecured equivalents. It is always important to know how much you can borrow when applying for any loan. For example, mortgages and bridging loans can be in excess of £10 million depending on the exact nature and value of the property or properties in question. Unsecured loans in general however, only tend to lend up to a few thousand Pounds as the risk is greater to the lender, with no security on the loan. Business loans though are different as more money can be borrowed. However, these processes are different.

  • Interest on Loans

Because of the increased risk to the lender, most unsecured loans have higher interest than their secured equivalents. This is to offset the risk of the borrower potentially not paying off their debt. Secure options however, have far less risk associated with them as the borrower will agree to the lender being able to seize the asset used as collateral should they default.

  • Length of Repayments

Unsecured loans for the most part are paid of within 12 months. For example, an instalment loan may be spread over the course of 12 months by which time the debt should be settled and paid off in full. However, generally, an unsecured loan will be repaid much sooner than this as the loan amount is significantly less than a secured loan (usually.) Secured loans on the other hand, such as mortgages may stretch over a number of years; sometimes more than 20 years. This is because someone borrowing say £500,000 as a mortgage will not be able to repay this in a year and will need more time to cover these costs compared with an unsecured loan of much less.

  • Credit Checks

Whilst lenders now carry out credit checks and assess credit and spending behaviour for all nature of loans, secured loans will generally entail more rigorous checks as with a larger loan amount, the lender needs to be sure the borrower has the means and the credit behaviour to repay their debt. Unsecured loans such as payday loans however, do carry out credit checks but these will not be as rigorous as those for a secured loan such as a bridging loan or mortgage as the amounts of money associated are much less, making the cost of carrying out more rigorous checks less of a requirement for many.

  • Property Purchases

In order to purchase a property, the vast majority of people need a mortgage or secured loan of some kind. The loan is provided and the debt is secured against the property or development in question. This is the driving force behind the lender’s provision of the loan. If the property is worth less, then less can be borrowed; the loan-to-value (LTV). However, if one doesn’t have a property with which to secure the loan, they will be unable to purchase a property in this way. For example, a tenant who rents their property from a landlord, is unable to secure a loan against their place of residence as they do not actually have ownership.


How-interest-rates-affect-mortgages

How Interest Rates Affect Mortgages

It was announced in November 2017 that the UK base rate will increase for the first time in over a decade. In July 2007, rates went up from 5.5% to 5.75%. Now, rates have risen from 0.25% to 0.5% as of 2nd November 2017. The base rate had been at a historic low since August 2016, at a rate of 0.25%. But what does this mean for interest rates on mortgages and private mortgages?

To start with, it is important to outline what the base rate is, as it affects not only mortgages but also the following:

  • Loans
  • Credit cards
  • Savings

It is thought that credit card rates are expected to rise, as well as overdrafts and personal loans.

 

What is the Base Rate?

This is the official borrowing rate as designated by the Bank of England. The rate dictates what savers will earn and what borrowers will be paying. Any changes to this bate rate is dependent upon the Monetary Policy Committee (MPC) which is the Bank of England’s group that meets eight times a year in order to discuss the rate.

As a result of this recent change, it is likely that many people’s mortgages will rise in cost, whilst savers will have more chance of receiving better returns on their savings. Estimates suggest that will be around 45 million people who will receive better returns on savings accounts. For example, those who have saved £10,000 will collect £25 extra in interest each year.

 

How much will mortgages go up by?

This depends on the type of mortgage a home buyer has. For example, a bridging loan will be affected differently to a traditional mortgage. Currently, there are around 9.2 million people in the UK who have a mortgage, and half of those are on a tracker rate. Whatever the type of mortgage someone has, it is often the case that the bigger the deposit or equity you have, the better the interest rate.

 

mortgage-agreement

 

It is also possible to check online how much extra or less will be paid as a home-owner based on the interest rate increase through using one of the interest rate or fall calculators available. These useful tools calculate mortgage amounts, the duration and the type of mortgage it is and then predicts what the increase or decrease will likely to be.

 

Fixed Rate Mortgages: Will Interest Rates be Increased?

94% of new homeowners are on fixed rate mortgages, lasting on average two or five years. A fixed-rate deal is when a home-owner pays a known, fixed rate for a set period of time. Overall, around 57% of homeowners are on fixed rate details. The interest rate increase will depend on when this loan is expected to end. Borrowers will likely to see no immediate increase, but at the end of their two-year fix for example, they could end up with a higher rate of repayment or a new deal that is more expensive.

However, it could be cheaper, as it does also depending on when this fixed rate mortgage was taken out, so it is important home-owners check with their lender.

 

Variable Rate Mortgages

35% of homeowners in the UK are on variable rates. A variable-rate deal is when lender is able to move the interest rate at their discretion. It is more likely to be the case that if the mortgage a person has hasn’t changed in at least five years that it is a variable rate mortgage. Variable rate mortgages then, have an increased chance of being affected by a rise. It is likely the rise in interest rate will mean the average home buyers mortgage (that is, the average in the UK of £175,000) will rise by roughly £22 a month.

 

Tracker-Rate Mortgages: Will Interest Rates Increase?

Also known as ‘base-rate trackers’ or ‘bank-rate trackers,’ they are less common as they once were amongst home-owners. Tracker-rate deals work on the basis of the rate paid moving up or down in accordance with the Bank of England’s Bank Rate. In terms of the recent interest rate increase, this means that if a home-owner paid a tracker paying a bank rate plus 1.25 percent, now the bank rate has risen to 0.5%, the mortgage will rise as a result to 2 percent.


renting-vs-buying

Renting vs Buying - What Are The Pros and Cons?

The decision as to whether to rent or buy is a perennial problem if ever there was one. For many of us, the process of moving out in itself symbolises the transition to adulthood. For many more, it is buying a home that really and truly means you’ve made it, and who eagerly await the moment they can jump onto the property ladder. However, simply buying a home isn’t always that straightforward.

House prices vs rent prices

For example, the price of the average UK home has risen in the past decade. In London, this equates to nearly a 70% rise in 10 years. Whilst for the first time in at least five years according to Rightmove, rents have dropped in Britain by the end of summer 2017. Outside of London, rents dropped by 0.2% in the months from June to September.

However, London itself still remains one of the most expensive cities in the world to rent in. In other words, either buying or renting is going to be of considerable cost and there are pros and cons to both. Let’s weigh them up.

The importance of freedom?

Both renting and buying provide you freedom. However, the way in which each option gives you this freedom differs entirely, with advantages and disadvantages to both. Here is a short summary:

Renting

If you're tired of living at home or with annoying parents or siblings, getting out and renting is a quick way to get a place and make it your own.

With renting, you are signed up to a fixed contract, meaning you have the option to leave fairly quickly when the minimum tenancy period expires without having to worry about a costly mortgage to pay for.

The option to move to another city or country entirely can be achieved fairly quickly as a result, so you have wide range of choices of places to live.

If your personal circumstances change, renting gives more flexibility. If you need to change jobs or anticipate that you will have less money than previously, you can look for somewhere cheaper to rent without being tied down to the responsibility of a mortgage.

Renting might give you the chance to live in an area you’ve always dreamed of, but couldn’t otherwise afford to live in if the only option was buying.

Not having to pay huge upfront costs for a house or flat (usually a month’s rent is required, but this is considerably less than a house deposit), means decisions to move can be made swiftly.

Buying

If you buy a house, then you have the freedom to make home improvements you would find difficult to make rent. Want to put up some shelves in your bedroom, paint each room in all the different colours of the rainbow, or even paint a mural dedicated to your love of cats? Well, you can do just that if you really wanted! Obviously, improvements are within reason, and perhaps not as extreme or silly as those previously listed, but not having to ask permission from a landlord for making alterations is a definite advantage.

Many landlords aren’t avid fans of tenants having pets in their properties and are extremely strict with rules regarding them. In the worst case scenario, if caught with a pet in the property this could lead to eviction. With buying, the choice is up to you! Buy a goat if you like! (or maybe not).

 

buying a home

 

Whilst it may take longer to save for a house deposit, it provides an investment for the future that renting doesn’t. It is often said that paying rent is like letting money going down the drain after all. The house could accumulate in value in later years enabling you greater freedom in the future if you should decide to sell, allowing extra money to spend on whatever you would like! This could be anything from a new bigger home, holidays or a more comfortable retirement.

The Guardian writes that house prices are strong at the moment, going up the fastest in the last 8 months of 2017. You always have lots of options as a homeowner to do improvements and increase the value of your property. Whether you use construction finance or just through your own savings, things like adding a nice garden can increase the value by 10%, a conservatory is another 10%, a loft conversion with two rooms is around 20% and a basement with as much as 30% - helping you really maximise the value of your home.

Can you afford to buy?

If you do decide to buy, it’s incredibly important that you work out if it's possible that you can afford it in the first place. It isn’t just the deposit that you will need to pay for, there are many costs incurred when buying a property that aren’t included when renting. Such as

  • Stamp duty
  • Removal costs
  • Maintenance if anything breaks down - such as boilers or a leaking roof.
  • Survey cost
  • Legal costs
  • Monthly bills - gas, electric, phone bills etc.
  • If interests rates increase, your mortgage repayments will rise too.
  • Estate agency costs
  • If you are moving in with a partner and separate, this could become very expensive.

First-time buyers have been given a lifeline with the new budget rulings with regards to stamp duty. If its your first mortgage, you won't pay any stamp duty on the first £300,000 of your property value, allowing you to make a huge saving and will help around 95% of new homebuyers.

What is the right decision for you?

Evidently, both buying and renting have their pros and cons, and these will likely depend on your needs at the time of making such a decision. For some, buying property isn’t in their interest, and nor will it ever be, whilst for others owning a property is their lifelong dream. Whichever you choose, deciding where you live is one of the most important decisions you will make, and you must think thoroughly all of the options available to you, as well as what is possible for you to realistically afford.


selling a home

Bridging Vs Traditional Mortgages

Most people are aware of mortgages and property finance in general with mortgages having been used by millions of homeowners for many years and the concept of property finance being well-established. Everyday mortgages are generally used to secure a fixed amount of money against an agreed portion of equity of a property. Bridging loan arrangements are a more specialised process that is not as well established but that is increasing in its popularity.

Whilst traditional mortgages are usually used by homeowners to purchase or refurbish their place of residence, bridging loans are a slightly different offering and therefore may at times need a broker to facilitate its arrangement. For example, a bridging mortgage to be used for business purposes may specialised and experienced corporate finance brokers to arrange it.

Traditional mortgages on the other hand have different requirements. For example, if one is self-employed, an accountant may be required to order finances in a clear and positive way for the prospective mortgage lender to be able to understand the financial position of the applicant (source: Martin Tiano & Co Accountants).

Ultimately however, both a mortgage and a bridging loan have a very important role to play in the wider property lending industry in the UK.

 

Popular Types of Residential Mortgages

Unlike commercial property finance options and mortgages for buy-to-let purposes, residential mortgages and mortgages for peoples’ main place of residence are deemed Regulated Mortgage Contracts which means that for the most part, their repayment and interest terms are much more favourable as they are designed for a borrower’s main place of residence as opposed to for investment purposes.

Commercial and buy-to-let arrangements on the other hand will have additional arrangement fees, interest payments and clauses; all of which tend to add up, increasing repayment costs.

 

Everyday Mortgages

 

Purchasing-home-with-mortgage

 

Mortgages are the most utilised form of secured property finance in the UK and arguably the world. Usually used in order to purchase a property, the premise of a mortgage is quite simple. The borrower finds a property they desire to buy and assess their income and savings. They will likely need to be able to put down a deposit, which will be a percentage of the property’s value, for example 40%.

Then, they apply for a mortgage with a bank or other lender or broker who will assess their finances, income and financial stability. All criteria being satisfied, the lender will then agree to lend a proportion of the property’s value, for example the remaining 60% plus interest to be repaid over a predetermined period of time. With mortgage amounts often being in the hundreds of thousands of Pounds, it is not uncommon for a mortgage to be repaid over a period of 10 years or more.

The interest on the mortgage is variable too and there are numerous arrangements that can be agreed:

  • Tracker Mortgages...

These are mortgages where the interest rate is determined by the Bank of England base rate. This is set by the Bank of England and is subject to change during the year. In effect, if the Bank of England raises interest rates, this will be reflected in the required payments and interest amount on mortgage repayments.

  • Fixed Interest...

This is where the borrower and the lender agree to fix the interest rate for an agreed period of time; usually few years. The benefit of these types of arrangements is that should the interest rate be agreed at say 0.25% and the Bank of England then raises rates to 0.5%, the borrower’s interest will remain at the fixed amount for the agreed period of time, after which they may revert to the current interest rate or remortgage. However, a drawback of these types of interest arrangements is that should the interest rate be lowered, the mortgage’s interest will remain fixed too.

  • Interest Only Repayments...

These are somewhat less common but they are used. In these cases, the borrower would only repay the interest each month, having to then repay the outstanding balance; the actual loan amount in full at the end of the mortgage’s term. These are often used by those awaiting the sale of a high value asset to cover the repayment amount.

 

Bridging Mortgages

 

Consider-bridging-loans

 

Bridging loans are different to traditional mortgages in that they are a much shorter term financial arrangement. Also secured against a property, a bridging loan is often used to purchase a property whilst an initial property’s sale is impending or in the process of going through.

For example, a homeowner may be looking to upsize their home and move to a larger property. Having found the property they wish to move to and having put down a deposit on it, they may run into fairly short-term issues. For example, they may have found a buyer who then pulls out of the process late on, breaking the sales ‘chain’ and leaving the current owner in the lurch, having to find a new buyer quickly to avoid losing a deposit of potentially many thousands of Pounds.

In such cases, a bridging loan can be taken out. The homeowner would use the bridging loan to buy their desired property, awaiting the sale of the first one. There is then a period where they effectively own two properties, but once the buyer of the first one is secured and confirmed, the sale amount is used to pay off the majority of the bridging loan, whilst any remaining repayment amount is paid off via the remortgaging of the new property at a much lower rate than the bridging loan.


Energy-efficient-new-property

How To Make a New Property More Energy Efficient

Halloween has passed, the clocks have gone back, and the wooly hats adorn our heads once more: winter has well and truly arrived (well, if you want to be slightly pedantic meteorological winter begins on 1st December, but let's forget about the technicalities).

What this in all likelihood means for us all is considerably more money spent on trying to keep warm throughout the season as the biting coldness kicks in.

However, are you one of the 40 percent who is worried about how you are going to afford heating this winter? The UK certainly doesn’t fare well in terms of energy efficiency  – we are ranked one of the lowest in Europe according to Eurostat data, and, to top it off we also have the oldest building stock in Europe too. This translates as meaning that over 19 million homes in the UK rank a grade worse than C on their energy efficiency, with those rating on grades F and G contributing to over 25,000 deaths in the UK as a result of extreme cold.

This inefficiency also generates an excess amount of carbon emissions, leading to an ever more volatile climate in the UK,and an increased chance of floods: with annual flood damages already amounting to over £1.1 billion pounds in 2016. Admittedly very depressing statistics, but there is hope on the horizon – the government released last month its Clean Growth Strategy, promising to insulate and overhaul millions of draughty homes in England and Wales which could save families up to £300 a year on energy bills.

It’s great news, however, it is is to be achieved with a deadline of 2032, so a little far off. But do not fear: in the meantime, here are a few simple ways to improve the energy efficiency in your home that will not only save you money, but also decrease your carbon footprint and therefore keep your environmentally friendly credentials in check.

 

Make more than lukewarm savings with a thermostat

 

Energy-efficient-savings-with-thermostat

 

Did you know that more than half of all money spent on fuel bills is towards heating and hot water (and more so than on those spent on appliances or electronics?). For example, heating water makes up about four percent of the UK’s total carbon dioxide emissions, with the average house using around 330 litres each day (that is nearly 32 full bathtubs a week!) Would you like to change this?

Investing in a programmable thermostat could help you do just that, saving you up to £100 a year in energy bills as a result. Thermostats such as this by Nest Learning even work with Amazon Alexa voice control, and comes with an app to let you see how much you use and why.

Or, if you already have a room thermostat, simply turning down the controls by just one degree can save around £80 a year.  Similarly, insulating your hot water cylinder with a fitted tank jacket can help you to make water savings and even more if you heat water electrically. This also saves you approximately 430 kg in carbon dioxide emissions through using less energy to heat and treat the water, so a unanimous thumbs-up.

 

Use Your Heating More Effectively

The majority of households simply don't make enough of their heating and radiators. There are some very simple ways to do this so that you get the most out of the heat that you are paying for. This includes:

  • Removing draughts
  • Using radiator panels
  • Positioning of radiators
  • Using sunlight more effectively

Those pesky draughts are what is bringing in the cold, typically around your windows and underneath your doors. Look at some simple ways of covering these up with carpets and rugs or even little sliders you can probably buy on amazon for a pound each.

Radiator panels are little sheets that you slide down the back of your radiator. Since most the heat from your radiator goes behind it, the panel essentially bounces this back into the room.

The positioning of radiators is key since putting things on top of them like clothes, cupboards or shelves is simply blocking the heat from entering the room. So don't be scared to remove some furniture or items that are in the way.

The few hours of sunlight that we get in November and December can still heat you the room. It is just sun that comes through the window, so don't be scared to open your blinds and curtains during the day to let the heat in but then close them when it gets dark because this is going to be colder.

 

Save money with the flick of a switch

 

Energy-efficient-savings-light-switch

 

On average, lighting makes up about 10% of energy bills, but it’s one of the easiest ways to quickly improve energy efficiency in your home. For example, LEDs, such as these ones by Phillips last for around nine years, which is considerably more compared to incandescent bulbs, and certainly worth the investment. Taking this a step further,  if the average household replaced all bulbs with LEDs, it would cost about £100 and they’d save yearly about £35 on bills, so it is definitely worth considering making the switch if you are serious about considering making your home more energy efficient.

 

Solar Panels

Those funky looking things on your the side of your roof can save you some real money by using energy more efficiently. We're not going to sugar coat it, its definitely a long term game as solar panels cost around £5,000 to £7,000 to install (and less if you can get a government grant).

However, since this can contribute to powering your heating and electricity, the saving over a 20-year period ends up to be around £6,000 - which isn't bad. Plus, it can add value to your home and can be resold to the next owner of your property. If you have invested in farmland or have large roofs, this could be a great moving saving tool.

 

Why it is Important For Developers To Be Energy Efficient

If you have recently got the finance you needed from one of our development finance lenders and are working on the refurb of a new property, being energy efficient is important.

Not only do you save money running the place, you can pass on these savings to your tenants, which might make the place seem more appealing. Similarly, if you have kitted the place out with energy efficient lightbulbs, radiators, boilers and more, you can use this as an up-sell for a potential buyer and easily charge them more.

Furthermore, in this day and age of global warming, it is seen as the responsible thing to do, being 'green' and all and a lot of potential investors, buyers and tenants will respect you for making this decision in your fit out. So go on, don't be scared to be green!


property-location

Things To Consider Before Buying a House

As one of the most significant purchases of your life, there is much to consider before buying a house, whether as a first-time buyer, an experienced homeowner or property developer who has just secured a bridging loan.

Today, home ownership can be an advantageous option when compared to the rocketing costs of private renting. If you are ready to take that exciting step to end those monthly payments to your landlord and start the house hunt, then its time to consider these important points before hopping onto the housing ladder:

Costs of Moving

The main costs to include when moving are:

  • mortgage broker fees
  • monthly mortgage repayments (do you go standard, fixed or variable?)
  • hiring a moving company
  • buying new furniture, TVs and appliances
  • home and contents insurance

Financial security should be your number one priority in the case of buying a house. Consider the true costs of buying; how much can you actually afford? Think ahead, how long will it take you to save for your deposit? How much can you afford to repay each month? How long will it take you to pay off the mortgage? And of course, are you getting the best interest rates? If you can afford larger monthly repayments, you could have a shorter mortgage and end up paying less in interest in the long term.

If you are a first-time buyer, you could benefit from the Government’s Help to Buy Scheme and if you are under the age of 39, the newly available Lifetime ISA. The Government will add a 25% bonus on top of savings when used towards a deposit. Deposits, surveys, legal fees, insurance, stamp duty, valuation fees and removal costs are all essential factors that you should consider in the budgeting process as suggested by Money Saving Expert. Of course, having some spare cash in your pocket goes a long way when it comes to those unexpected moving in costs.

 

Choosing a Location

City or country? Commuting or walking? Fresh air or pollution? Is there 4G signal coverage or is it a phone signal black spot? Whether you are uprooting to the big smoke or escaping to a donkey farm on the edge of the Peak District, location is KEY in the search for your perfect home.

Think about what is important to you in the long term. If you work from home, great. For the most of us, your commute is an essential part of daily life, so consider the costs of petrol or train fares on a yearly basis. If the thought of being crammed against fellow commuters on the tube on a hot summer’s day makes you shudder, then you need to reconsider.

property-location

Spending a little more for a better location in return for a pleasant walk to work each day, might be the right choice for you. Do you mind being close to a noisy railway station so that you can dash out the front door, and still have time to grab a coffee en route to catch your train? Is the house underneath a busy flight path?

Check out Ofsted reports to get a gauge for the best schools in the area. Check how far away the nearest supermarket is, and does the local pub have your favourite beer on tap? Weighing up the pros and cons, however large or small can be a laborious task but, in the long run, you will thank yourself.

Viewing The Property

This is your chance to assess the nitty-gritty. Always view the property more than once and at different times of the day. Your estate agent is there to be quizzed, so prepare for each viewing by being armed with questions as advised by the Home Owners Alliance.

There’s likely to be some negative factors that the vendor or agent will be keeping from you, so it’s important to draw these out before you purchase. Ask how long the house has been on the market, or why the seller is moving?

Have there been any recent issues with the boiler and how energy efficient is the place? Have a scan of the windows and walls in each room to check for damp or cracks, you don’t want to end up having costly repairs later on. Especially something like asbestos which could make the property absolutely inhabitable - so getting this checked beforehand could save you a lot of time and hassle.

Does your furniture match the decor or will you have to redecorate? Can you actually envisage yourself living there for the foreseeable future? The answers to these questions will save you time and help you to avoid disappointment.

Will it Hold its Value?

As a keen property investor, you need to know whether or not this place will keep its value or be worth significantly more in the future. There are some areas that are certainly up and coming and likely to skyrocket in the next few years, such as Tottenham (following the rejuvenation of the stadium and area) and trendy-Shoreditch with and-waterson-launch-shoreditch-property-scheme/">Long and Waterson's development scheme.

A good developer is able to suss out a good deal on the market or at auction and see the potential return on their property after 1,2,3 or 5 years. Above all, you need to consider whether the work you are putting into any refurbishments or renovation will bring you a good margin. You certainly don't want to spend too much on a loft conversion, garage and bespoke kitchen only for the area to not maintain its value.

Is There Room For Improvement?

There are several smart ways to increase the value of your property and being able to spot that potential is key. For instance, seeing that there might be space for a basement, loft conversion or conservatory can easily increase the value of the home by 10% to 30%. Importantly, is there the opportunity to get planning permission to do these kinds of changes or will there be obstructions from the neighbours and local council?

As a property developer, you need to be able to see potential immediately. Other ways to boost value of a home include sprucing up the garden, adding some kerb appeal like doing up the windows, lighting and entrance.


Tips-For-Building-a-Great-Kitchen

Tips For Building a Great Kitchen

Let's face it, the kitchen is the room where everyone lives. Our lives are focused around food, whether it is Mum preparing food in the kitchen whilst the kids are doing their homework, having dinner or the long breakfast and lunches on the weekend. The kitchen is where it happens. So if you are renovating your existing kitchen or building a new one from scratch, we give you some great trips to put in place:

  • Think budget
  • Making it practical
  • Using space effectively

 

Think Budget

 

Think-budget-when-building-a-kitchen

 

Sure, we'd all love the world's greatest kitchen, both beautifully designed with all the latest tech and gear that comes with it. Whether it is pop-up TVs, hidden cupboards, power taps or the funky tap that changes hot and cold. But whilst The Mirror explains that even the most practical kitchen can increase your home's value by 4%, you still have to be conscious of budget and we will explain why.

The reality is that the cost of your kitchen needs to relate to the value of the home and those on the road. If your house is worth around £500,000 and so are all the others on the road, there is no point spending £100,000 on sprucing up a kitchen because your house value cannot rise by more than £100,000 - especially if all the neighbours' home similar in size. So you have to be practical in how much you spend and how this impacts the overall value of your home.

There is also no overall benefit of having the world's greatest kitchen but then a mediocre bathroom, living room or dining room - as it does not fit in with the rest of the house and future buyers will not dig it.

 

Making It Practical

Does It Also Become Your Dining Room?

A lot of households are also making their kitchens their dining rooms as a way to maximise space in the home. After all, a lot of dining rooms are only really for entertaining and are sometimes grand rooms that just end of getting covered in dust.

So if you're one of these modern households that want to make the kitchen the main dining area, it is worth smarting it up a bit and also allowing enough room for family and friends to join you around the table. This means that there is no point having a table with just 6 chairs around it but getting a table that can expand and fit 12 could be worthwhile.

 

Using Space Effectively

 

Building-a-great-kitchen

 

If you like to cook or you have kids that like to work and hang out in the kitchen, you can use space very effectively. For instance, case studies from leading designer The Wood Works shows the use of an island in the middle of the kitchen to store things and also clever bar stools for your children and their friends to hang out.

On the subject of making it child-friendly, a careful consideration is how it works for kids of all ages. For instance, if you have small children, does the table and island have space for a child seat? Can they climb up the bar stool without your help? Does it provide them with some support or will they fall off? In addition, you want to be careful about any tables of boards having sharp edges that you or your children could potentially bump into, especially if they are at heigh level for your offspring.

 

Colour

The colour of your kitchen is a careful consideration. A lot of kitchens go with the subtle tones of white (to match white goods) or light tones of grey, beige or even wood. If you are doing up a property as part of a property development finance project, you want a look that is fitting with the rest of the house and not too overpowering. Similarly, what chair colours and accessories go with it is also something to discuss - with the pink chairs featured above working nicely.

 

Easy To Clean

The kitchen is where we prepare food and where our children spend a lot of time - designing things and doing arts and crafts. So creating a kitchen that is easy to clean is very important. Some like the metallic look, like a restaurant kitchen just because it is so easy to clean. But for some people, you need to consider what materials and surfaces are most practical. For instance, tiles can be tougher to clean as things get through the cracks whereas flat surfaces and marble are certainly a lot more convenient.

 

Flooring

Your flooring must be practical. Whilst some shades of limestone look amazing, they can be on the slippery side which makes it not well suited for children and having lots of guests.

On the topic of cleanliness, the flatter surfaces are easier to clean compared to tiles or carpet which is likely to get stained or have things fall in between the cracks.

 

The Appliances

Are you a big family with a big appetite? Especially with babies and toddlers, you need a fridge to hold all the foods and formulas. Do you go with a normal size fridge or with a mega fridge like you see on MTV Cribs? Depending on your space, you can opt for the fridge and freezer in one, or some people have their freezers in the garage or utility room.

 

Fewer and fewer people are putting microwaves in their kitchens these days - after all its like nuking your food and can't be healthy, right? The only reason people use microwaves is really for popcorn anyway. But how your diet and your family's food habits vary will determine whether or not you need one and if so, you have to make space for it. With some people putting them plugged into the corner of the room or having them fitted within the actual wall units.

Other things to discuss are whether you go for an old school gas hob or a new snazzy electric hob. They say that gas hobs are more effective for cooking up a storm whereas the electric hobs are much easier to clean - so you have to weigh it up.

Is there anything else you would add to your perfect kitchen? Comment below!


tenants-rights

What Are Your Rights as a Tenant?

As a tenant who is paying a landlord each month to live in a rented flat or home, you are entitled to certain rights and responsibilities. In some respects, you are the customer who can request things to be a certain way and can expect your accommodation to be a high level of standard. You also have the responsibility to be a good tenant and your behaviour and actions must also be according to the tenancy agreement that you signed.

People typically use bridging finance for the purposes of buy-to-let, so it is important to know what is expected of you as a landlord and how tenants should be acting too.

So, What Are Your Rights?

As a tenant you have the right to:

  • Live in a property that is safe and in a good state of repair.
  • When the tenancy ends, have your deposit returned to you. In some circumstances, have it protected!
  • Challenge high charges and rent increases.
  • Know your landlord and who he, she or they are.
  • Live in the property, undisturbed to other tenants or third parties.
  • Be protected from unfair eviction and unfair rent
  • Have a written agreement if you have a fixed-term tenancy of more that 3 years
  • See an energy performance certificate

If you have a tenancy agreement, it should be fair and comply with the law.

If you find that you do not know who your landlord is, be sure to write to the person, people or company you pay rent to. Your landlord can actually be fined if they do no give you this information within 21 days.

 

When You Start Your Tenancy Agreement

Once you start a tenancy, whether it be an assured or a short-term assured tenancy, your landlord will be expected by law to give you:

  • A copy of the “How to rent guide” if you live in England
  • A “tenant information pack” if you live in Scotland

Your Responsibilities

With your rights, come responsibilities when you are a tenant. You are required to give access to your landlord for him or her to be able to inspect the property or carry out any repairs that may need doing. In saying this, there are strict rules that state that your landlord cannot just walk in unannounced. He, she or they have to give you at least 24 hours notice before accessing the property that you are renting (see what are your rights as a landlord).

 You Must Always:

  • Pay the agreed rent, even if repairs are needed or you are in dispute with your landlord.
  • Pay other charges as agreed with your landlord, like, for example, paying council tax and any utility bills.
  • Take good care of the property you are renting, for example; do not damage the walls or carpets and think about turning off the water at the mains if you go away during cold weather.
  • Repair or pay for any damage caused directly by you or someone you are responsible for when it comes to your home (i.e a friend, family members or a child) - be conscious when having people over to stay, socialise or throwing parties.
  • You may only sublet a property if the tenancy agreement states you may, or if your landlord agrees regardless of whether a section on sub-letting features in you tenancy agreement. This could cause huge legal issues if your landlord finds out that you are renting the property to someone else without their permission.

Your landlord has the right to evict you and take legal action against you to do so. He, she or they may only do this with good reasons, such as you do you not meet your responsibilities, but cannot evict unless there is a clear reason or without good notice for you to find another residence.

Assured Tenants

An assured tenant will not usually have a resident landlord and the landlord will not provide any food or any services. If you are an assured tenant you will be paying rent for the accommodation which you occupy as your principal and only home.

Example of assured tenants include:

  • Individual living in a flat
  • Family living in a rented home

The following below are not assured tenants because they have a resident landlord and provide food and services:

  • A student let (student residence and accommodation)
  • A holiday let (hotel, villa, camp, park)
  • A company let
  • Business premises
  • A Crown tenancy
  • Private accommodation arranged by the local authority because you are homeless.

Rights of Assured Tenants

If you are an assured tenant, you have the right to remain in the rented property unless the landlord puts forward a good enough case in court as to why they have good reason to want to evict you. Examples of this may include if you are not paying the correct amount of rent and refuse to do so, you damage the property, or any of the terms of the tenancy are broken on your side. Common reasons are being responsible for loud noises or the landlord suspects that there are illegal dealings happening within the premises.

Meanwhile, as an assured tenant you have the right to get repairs done to the property without worrying about being evicted - but usually these will need to be approved by the landlord. Especially if you are looking to redo a bathroom, kitchen or add an extension - this is not something that should come out of your pocket completely and could impact the amount of rent that you pay. Alternatively, you could fit the bill of an extension but of course the landlord owns the property outright and will benefit when they sell it.

You have the right to stay in your home as long as you keep to the terms of the tenancy and other rights you have include:

  • the right to have the accommodation kept in a reasonable state of repair by the landlord
  • the right of your spouse, civil partner, or other partner to take over the tenancy on your death (‘the right of succession’)
  • the right not to be treated fairly, and not discriminated against because of your disability, gender reassignment, pregnancy and maternity, race, religion or belief, sex or sexual orientation.

Rights of Short Term Assured Tenants

As an assured tenant with a short term agreement, you have the right to stay put in your property until the fixed term as stated in your contract ends. This again is unless you landlord find he, she or they are able to convince a court of the reasons for your eviction before the fixed term ends. The reasons will be for the same reasons as listed above, rent disagreements, damage etc.

You may stay on after the ending of the fixed term, even if you do not renew your agreement, until your landlord gives you notice at the end of the term – this is his, her or their responsibility.

As an assured short-term tenant, just like a stranded assured tenant, you have the right to get repairs done without the fear of being evicted for it. Your right are also the same as an assured tenant without a short term loan as listed above.

Rights of Protected Tenants

Protected tenants are rarely seen since the Housing Act 1988 but the system offers security, no residential landlord, a fair rent and no services provided like food or washing. This is the strongest form of a tenant agreement, you are granted 'tenure' which means you pay rent but they still occupy the land.

Some examples include senior living in accommodation where there is security but they have their own home and can make food and put on the wash like a regular guest.

As a protected tenant you have rights which are the following :

  • Security of tenure (the land they occupy). Your landlord can repossess the accommodation in certain specified circumstances.
  • The right to have the rent fixed by the rent officer.
  • The right to have rent increased only in particular circumstances.
  • The right to have the accommodation kept in a reasonable state or repair - see under heading Repairs.
  • The right of your spouse, civil partner, other partner or another family member to take over the tenancy on your death
  • The right not to be treated equally and not face discrimination or prejudice because of your disability, gender reassignment, pregnancy and maternity, race, religion or belief, sex or sexual orientation.