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.

Should Stamp Duty be re-vamped?

Should Stamp Duty be re-vamped?

When you move home there are many expenses involved; solicitor fees, new furniture, mortgage fees, surveys, deposit and on top of all that STAMP DUTY. For such a large amount of tax Stamp Duty does not actually make a huge contribution towards paying for hospitals and schools. The issue lies with first time buyers not being able to get on the property ladder and growing families not being able to move up the ladder. It also prevents people from moving to better jobs and the elderly from downsizing.

Stamp Duty is currently applied on property priced between £125,000 and £250,000 at 1%, then 3% up to £500,000 and then 4% up to £1million and finally 5% up to £2million. There is also a higher 7% bracket for the super-rich!

Some people are moving less due to this high tax. Back when it was introduced in 1993 at 1% on property over £60,000 this was above the average property price. This then was a fair and relative tax; it is now out of proportion. If the tax was cut more people would be able to finance moving and therefore the amount of tax would balance out again. I’m not saying it should be abolished altogether (although that would be nice) but more fair, so the 1% begins above the average house price bracket so it serves the same purpose as when it was introduced.

There is currently a scheme attempting to stamp out stamp duty. Where you can visit the website and enter your postcode to contact your MP.

http://stampoutstampduty.org/

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

Solar Panels - Do they require planning consent?

Solar panels are becoming a more and more common sight on domestic properties. This presents a challenge to conveyancers when dealing with the sale and purchase of houses. It is only in recent years that conveyancers are coming across houses with solar panels and they need to familiarise themselves with the legal position regarding planning consent – when acting for a buyer, the conveyance cannot afford to get this wrong or their client may find themselves facing enforcement action from the local authority once they have moved into their new home.

So what is the position regarding Planning Consent?

Generally, the installation of solar panels is permitted development and no planning consent is required. There is however conditions that need to be met before the installation can be considered permitted development -

 

 

a)     Solar panels mounted on houses should  -

i)      Be installed on that part of the building that will cause a minimal effect to the external appearance of the building and should be removed when no longer required.

ii)     Be lower than the highest part of the roof and project less than 200mm from the roof slope or wall surface.

iii)    Not be installed on a building that is within the grounds of a listed building.

iv)   Not be installed on a scheduled monument.

v)    Not be installed on a wall facing the highway, if the property is within a conservation area or in an area of Outstanding Natural Beauty or a World Heritage Site.

 

b)    Standalone solar panels should-

i)      Not be higher than 4 metres and must be more than 5 metres from the boundary of the property

ii)     Not have an array that is more than 9 square metres or 3 metres in width and depth.

iii)    Not be installed on a wall facing the highway, if the property is within a conservation area or in an area of Outstanding Natural Beauty or a World Heritage Site.

iv)   More than the first standalone solar panels – after the first installation any subsequent solar panels require planning consent.

 

Although planning consent may not be required, the solar panels may require Buildings Regulations Approval.

Is planning consent needed for a conservatory?

Conservatories are often a bone of contention between Conveyancers with one saying that the Conservatory should have had Planning Consent and/or Buildings Regulations Approval and another saying that this was not needed – such arguments are often the cause of unnecessary delay in the sale and purchase of a property.  

 

So what is the answer?

Planning Consent

As a general rule Planning Consent is not required as a Conservatory (unlike a house extension) is considered to be permitted development. As always there are exceptions and this is what causes the arguments. A Conservatory will not be permitted development (and will therefore require planning consent) in the following instances:

 

·         Just as in the case of a house extension the conservatory does not take up half the garden (this refers to the garden of the house when it was originally built – so if there have been previous house extensions there could be an issue)

·         The roof must not be higher than the roof of the house. Again this same rule would apply to a house extension.

·         The conservatory is more than 3 metres (4 metres in the case of a detached house) beyond the rear wall of the original house - again beware if there has been a previous house extension.

Conservatories and house extensions will nearly always require planning consent if the property is within either of a National Park, the Broads, an Area of Outstanding Natural Beauty or a World Heritage site.

·         The property is within a conservation area or is a listed building.

·         The Local Council have imposed an Article 4 Direction on the area in which the property is situated. This in effect cancels the General Permitted Development Rights in the area meaning that planning consent will be required for any house extension or conservatory.

·         The property is a flat or a maisonette. The General Permitted Development Rights do not apply to flats or maisonette.

·         The permitted development rights were excluded from the property as a condition of the planning consent for the original construction of the property. The planning condition usually specifically states that house extensions and additions or any external alterations will require express planning consent.

 

 

Buildings Regulations Approval.

As a conservatory is in affect a type of house extension, it will require Buildings Regulations Approval – however unlike house extensions, there are exceptions:

·         If the conservatory is at ground level and less that 30 square metres

·         The conservatory is separated from the house by a door or window.

·         The conservatory has an independent heating system

·         Electrical installations involved will be subject to the usual Buildings Regulations Approval regime.

 

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

Help to Buy showing positive impact upon the housing market!

Help to buy showing positive impact on the housing market!

The new government Help to Buy scheme is proving to be a big success. The scheme has beaten forecasts which were predicted to show positive signs regarding the housing market. According to the Home Builders Federation (HBF) 4,000 people have reserved a new home under the Help to Buy scheme since it has been live over the last 2 months. In conjunction with this the interest in the scheme has been huge and more than 500 buyers each week are signing up for the new scheme.

 

House prices rising

Halifax has also pointed out that UK house prices are rising at their fastest rate since September 2010. Launched in April 2013 the Help to Buy scheme offers first time buyers and existing homeowners an interest-free (for the first 5 years) loan to build upon a deposit to help them buy a new build property. The buyer only needs to raise a 5% deposit to qualify for the scheme and the government then contribute a further 20% enabling the buyers to get a better rate, more affordable mortgage and move on/up the property ladder.

Experts Criticism

However the data showing evidence of house prices increasing is likely to cause criticism of the Help to Buy Scheme. Some experts have warned of a housing bubble with house prices inflating to high levels. The scheme is currently set to run until 2017. Halifax have stated that the average price of a UK home is now £166,898 which is an increase of 3.75 compared with May 2012 when the average UK house price was £160,906.

Although there are signs of improvement regarding the housing market these are still limited with our low economic growth and weak income growth. These issues will be a constraint upon the housing market in the long term.

First time buyer’s increase

The number of first time buyers taking on mortgages increased by 15% in April when the scheme began, according to property group LSL. This may have been due to the support of the scheme and lenders becoming more flexible about offering mortgage with high Loan to Value proportions.

If you want more information about the Help to Buy scheme or a quote for your conveyancing Help to Buy transaction then visit our dedicated Help to Buy website.

Click here for more information about Help to Buy