Homes for £1! Sounds almost too good to be true!

Homes for £1! Sounds almost too good to be true!

This is a project run by local authorities firstly in Liverpool and now in Stoke-on-Trent, where run down properties are sold for £1 each and a loan of £30,000 is given to complete necessary repairs on the property.

There is a range of properties available 2 bed terraces, three bedrooms hours and even some flats. There have been thousands of applicants for the project and the properties are allocated randomly to successful applicants. To qualify for the project you have to meet the following criteria:

·         You must have lived in the area for the past 3 years

·         Have a joint income of £18,000 - £25,000 or £30,000 if you have children

·         Must not own any other property

·         Must have been employed for the past 2 years

·         The new house must be your main home for at least 5 years

·         You must have the right to live permanently in the UK

The £30,000 loan is required to be paid back over the next 10 years, with an interest rate of 3% above the base rate.  This currently works out around £293 per month, which is cheaper than a mortgage or renting.  People who are lucky enough to get one of the £1 properties are required to renovate it and bring it back life. The aim of this is to reignite run down, derelict areas into family homes. This will have a knock on effect to current residents living next door to these vacant properties and will hopefully build community spirit throughout the neighbourhood.

 

There are 710,000 vacant homes in England which has been a trigger for the £1 home scheme. In the current economy with housing lacking, it is vital to bring these empty properties back to family homes. The £30,000 loan from the council towards refurbishing each property will be spent on council approved contractors with the owners choosing which type of kitchen and bathroom they like. If the house is sold within 10 years the owner will be required to hand over a share of the profit made.

What’s your opinion on the £1 home scheme?

Second part of Help to Buy brought forward!

Second part of Help to Buy brought forward!

The second phase of the Help to Buy government scheme has been brought forward from its previous launch date in January 2014 to 7^th of October 2013! David Cameron has expressed his understanding that the need for this is now.

The second part of the Help to Buy Scheme is a mortgage guarantee, the government will back up to 15% of the mortgage for borrowers with deposits as little as 5%. The aim is to make mortgages more readily available. However there is still a strict process borrowers will have to go through to obtain the mortgage such as rigorous affordability checks. The property being purchased will have to be the sole property and cannot be bought as a second home or buy to let.

There are already several lenders signed up to the scheme although it has not yet been revealed how much the government guarantee will cost the lender. The lender will have to pay a fee for the mortgage guarantee, in the case of a property getting repossessed and not being able to recover the loan from the sale the government will cover 15% of the loss. This is to deter lenders from allowing loans to anyone and everyone and ensuring the loans are affordable for the borrower.

First time buyers and existing property owners are eligible for the scheme and the second part is for new and existing properties. Some banks are welcoming the news of the scheme being brought forward, offering longer opening hours in busy periods, although mortgage brokers fear a flurry of new applicants.   

New interest rates on these new government backed mortgages are yet to be revealed as is the fee for the lender. Applicants can apply for the scheme as early as next week.

Second Part of the Help to Buy Scheme Revealed by George Osborne

Second Part of the Help to Buy Scheme Revealed by George Osborne

In a recent meeting with mortgage lenders and housebuilders, George Osborne explained the terms of the second part of the Help to Buy Scheme to be launched in January 2014 on property purchases up to the value of£600,000.

There are worries that the Help to Buy Scheme will inflate house prices and lead to a housing bubble. The Homeowners Alliance is also sceptical that it may cause people to take on huge mortgages.

George Osborne has laid out strict terms for the scheme hoping to avoid these negative issues. Purchasers applying for the scheme will undergo strict income checks and will be made to sign a declaration to declare that they are not using the loan guarantee to secure a second home. These checks will determine whether the buyers can afford the mortgage.

The aim of the scheme is to allow more people to be able to afford a home loan without having to save for a large deposit. Ministers claim that the second part of the scheme could enable up to 190,000 new mortgages each year over the 3 years of the scheme.

Lenders will have to pay a fee, the amount which has not been concluded yet, for each mortgage guarantee. The lowest interest rates are usually on mortgage with a LTV of up to 60%. This makes borrowing a lot more expensive for potential buyers with small deposits. The second part of the scheme aims to enable lenders who offer mortgages with a high LTV a chance to buy a ‘guarantee’ on the portion of the mortgage between 80% and 95%.

Potential borrowers have to go through ‘stress testing’ and income verification to ensure they can afford the mortgage. Anyone with a bad credit history will not qualify for the scheme.

For more information visit our dedicated Help To Buy website www.helptobuy.me.uk

Online Conveyancing Advice and Information

Online Conveyancing Advice & Information

What is Conveyancing?

A common question asked is “What is conveyancing, what do the conveyancers actually do?” It is a difficult question to summarise briefly as each case is different and will require different work. When you come to buying, selling, or remortgaging your home there are many legal processes and work which is legally required to be carried out. The process contains many different aspects depending on each particular case. If you are purchasing a property your conveyancer will ensure you are buying what you think you are. Searches will be carried out against the property which may reveal things about the property that the buyer needs to be aware of. Also the Title of the property needs to be changed to the new owner or lender and this requires to be registered with the Land Registry.

 

The conveyancer will write up a legal contract which details all the information required about the property; fixtures and fittings, boundaries, sale price, drainage, gas, legal restrictions, planning restrictions and other relative details. Throughout the process your conveyancer will liaise with the other party’s solicitors to answer any questions and negotiate the legal contract. The conveyancer will also arrange and carry out the exchange of contracts and completion of the transaction.

Online Conveyancing

We specialise in Online Conveyancing. We do not require for you to come into the office (although you are more than welcome if your local) all the work is carried out efficiently over phone and email. At the beginning of the process you will receive details for your online ‘Case Tracking’ system. Here you can monitor the progress of your case 24/7 and see what stage your case is at.

We also provide text and email updates when each stage of your case is completed. As a client you will receive a dedicated conveyancer and an assistant from the beginning to the end, you won’t be passed around to numerous people.  

As mentioned in a previous blog we were 3^rd place for ‘Best Conveyancing Service’ at the 2013 Mortgage Strategy Awards. We pride ourselves in giving an excellent service at a competitive price.

If you want any more information about our services please visit our website and get in contact.

www.iconvey.co.uk

Mortgage Strategy Awards

Mortgage Strategy Awards 2013

Best Conveyancing Service – 3rd Place

We are very pleased to announce that at the recent prestigious Mortgage Strategy Awards 2013 we took home 3^rd place for ‘Best Conveyancing Service’.

We are very thankful to all of the Estate Agents, Mortgage Brokers and Financial Advisors who kindly nominated us! The awards are judged by top industry professionals so it is an honour to receive such highly recognised credibility.

Clive Dickman, Head of Business Development said “Winning this award is the culmination of a lot of hard work by all our staff and is the result of us continuing to strive to always improve our conveyancing standards”.

This award is a result of our continued commitment and passion to excellent customer service and conveyancing, along with working with fellow industry professionals to achieve the best outcome. The housing market is a continuing competitive and challenging industry so we are glad to receive this award in reflection of our hard work.

We are very proud to be recognised as a top market leader in this industry. Being acknowledged for providing a high level of reliable and efficient conveyancing service, locally and also nationally, is something we are very grateful for.

Visit our website for more information or a conveyancing quote