Property Purchase: What does tenants in common & joint tenants ownership means?

In UK property purchase in spite of the word ‘tenants’, this has nothing to do with renting the property. It’s all to do with what happens if one of the property owner dies.

Joint tenants – If your names are written on the deeds as ‘joint tenants’ then if one of you dies the other one (the survivor) gets the whole of the property straight away.

Tenants in common – If your names are written on the deeds as ‘tenants in common’ then if one of you dies, the will is examined to see what should happen to their share. If there is no will, there are rules about this and they should be followed. Tenants in common is usually used where either party has children by a previous relationship and wants to make sure that on their death, their share of the house goes to their children.

If one person is putting more than the other then as tenants in common you can hold it in unequal shares for example 70 per cent to one, 30 per cent to the other. However in this case you should consider drawing up a Trust Deed as well to protect your interest. It is best to seek professional and legal advice.

 

 

For property investment in the UK from start to finish, Please Contact me

Dennis Bebo – MSC, BSC, DEA, CeMAP

TA DenEco Consultancy – www.deneco.co.uk

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Property Purchase: At what point am I committed and cannot pull out?

In UK property purchase, the key point is when contracts are exchanged – right up until that point any party in the chain can withdraw with no penalty. This can lead to financial lost, tears, anger and lots of frustration.

Click here for more details

Once contracts are exchanged everyone is bound by the terms of the contract – if anyone wants to pull out after that point it will cost them many thousands of pounds, as a starting point it is usually 10 per cent of the purchase price and then any damages that flow from their actions. Because of this, generally the best advice is to buy the property and put it on the market as soon as you can. Depending on the market at that time you may lose a little money, but potentially considerably less than if you’d withdrawn from the sale.

 

For property investment in the UK from start to finish, Please Contact me

Dennis Bebo – MSC, BSC, DEA, CeMAP

TA DenEco Consultancy – www.deneco.co.uk

Man City Footballer Rahaem Sterling buys row of terrace houses to kick start Fiancee’s Property business

Raheem Sterling’s fiancée Paige Milian, 22, who has a young son with Raheem, announced that they had bought the complex on Instagram .

She wrote: “After months of studying property development, I achieved my qualification to become a property developer in 2018.

 

“We then started a search of properties to add to our portfolio and was then successful in purchasing six brand new houses.

“We plan to add more projects to our portfolio in the future.”

The six new two-bedroom houses are in an unfashionable part of Stockport

The 24-year-old snapped up the six two-bedroom houses in an unfashionable part of Stockport, Greater Manchester, for an estimated cost of £166,000 each.

 

For property investment in the UK from start to finish, Please Contact me

Dennis Bebo – MSC, BSC, DEA, CeMAP

TA DenEco Consultancy – www.deneco.co.uk

Property Purchase: What is Indemnity insurance and do I need it?

In a UK property purchase, Indemnity insurance is used during conveyancing transactions to cover some sort of legal defect with the property which can’t be resolved swiftly, or at all. For example if there is a relatively obscure legal problem such as a problem with the deeds with virtually no chance anyone is going to make it a problem in reality, but to sort it out means going to the other party involved and can make the process very expensive, very slow or impossible. It is a one-off payment for a policy that then lasts forever

In these sort or cases an indemnity insurance policy is ideal – should the unusual problem ever show its face then you are covered by the policy. If you’re offered such a policy, its important to bear in mind what it does or doesn’t cover. For example, a policy in respect of missing Building regulations will not cover the cost of doing the work properly, but only the cost of following through any action taken by the local authority – if they don’t take any action and they won’t after the works have been up for a year then you won’t be able to claim. Your legal adviser can advise on the policy for you.

 

For property investment in the UK from start to finish, Please Contact me

Dennis Bebo – MSC, BSC, DEA, CeMAP

TA DenEco Consultancy – www.deneco.co.uk

First time buyers on a 12 year high

First-time buyer numbers have soared to a 12-year high, reaching a level last seen before the financial crisis struck.

A total of 35,010 mortgages were advanced to people buying their first home in August – the highest monthly total since August 2007, according to UK Finance.

The typical first-time buyer borrowed £175,361, the equivalent of 80% of their property’s value.

Although the sum was an average of 3.52 times their pay, close to record-low interest rates meant monthly mortgage payments accounted for just 17.1% of their total household income.

The data from UK Finance supports Zoopla research which found that more than a third (36%) of all property purchases in 2018 were made by first-time buyers and that numbers were up by a huge 85% since 2010.

Buying a home for the first time can be daunting and expensive, which is why it’s important to get fully up to speed before you start your property search. Once your name is on the property deeds, you’ll benefit from potential equity gains, you can decorate how you like and of course you’ll always have something to call your own.

Source: Zoopla property News

For property investment in the UK from start to finish, Please Contact me

Dennis Bebo – MSC, BSC, DEA, CeMAP

TA DenEco Consultancy – www.deneco.co.uk

Property Purchase: What exactly is gazumping

The term gazumping is often use by the media but generally don’t paint a full picture of what actually happens and as such many often find it surprising and confusing to understand.

Gazumping is where a property sale has been agreed but contract not yet exchanged and a third party comes along and offers more – where a third party ‘gazumps’ the original buyer. Gazumping is a nightmare for the original buyer as they’ve no comeback against (even if a survey has been done) either of the other two parties. In other for it to happen the seller must have to accept the higher offer, although they don’t have to.

I have worked for  clients on cases where a seller received higher offers but stuck to the original because they felt it was the honourable thing to do or preferred the original buyer. Also I have worked on cases where gazumping saved the chain – the original buyer was not taking it seriously or experiencing delays in securing mortgage and the chain was about to fall through – the new buyer moved ahead quickly and the whole chain completed. Gazumping normally occurs more often in a rising housing market, but probably not as much as the media would have you believe.

For property investment in the UK from start to finish, Please Contact me

Dennis Bebo – MSC, BSC, DEA, CeMAP

TA DenEco Consultancy – www.deneco.co.uk

Right to Buy: buying your UK council home

Right to Buy allows most council tenants to buy their council home in the UK at a discount.  Information in this article specifically implies to England, there are different rules for Wales, Scotland and Northern Ireland.

Right-to-Buy

Note: The Right to Buy and associated rights ended in Wales on the 26 January 2019. The Right to Buy scheme ended for council and housing association tenants in Scotland on 31 July 2016. The Scheme is still ongoing in Northern Ireland (click here for details).

You can apply to buy your council home in England if:

  • it’s your only or main home
  • it’s self-contained
  • you’re a secure tenant
  • you’ve had a public sector landlord (for example, a council, housing association or NHS trust) for 3 years – it does not have to be 3 years in a row

You can make a joint application with:

  • someone who shares your tenancy
  • up to 3 family members who’ve lived with you for the past 12 months (even if they do not share your tenancy)

If your home used to be owned by the council, but they sold it to another landlord (like a housing association) while you were living in it, you may have the Right to Buy. This is called ‘Preserved Right to Buy’.

Ask your landlord if this applies to you.

Also If you were not living in your home when it was sold by the council you may still be able to buy it through the Voluntary Right to Buy pilot.

There are different discount levels for houses and flats.

Houses

You get a 35% discount if you’ve been a public sector tenant for between 3 and 5 years.

After 5 years, the discount goes up by 1% for every extra year you’ve been a public sector tenant, up to a maximum of 70% – or £82,800 across England and £110,500 in London boroughs (whichever is lower).

Flats

You get a 50% discount if you’ve been a public sector tenant for between 3 and 5 years.

After 5 years, the discount goes up by 2% for every extra year you’ve been a public sector tenant, up to a maximum of 70% – or £82,800 across England and £110,500 in London boroughs (whichever is lower).

Right-to-Buy-your-Council-House-301-v5

Applying

  1. Fill in the Right to Buy application form (RTB1 notice).
  2. Send it to your landlord.
  3. Your landlord must say yes or no within 4 weeks of getting your application (8 weeks if they’ve been your landlord for less than 3 years). If your landlord says no, they must say why.
  4. If your landlord agrees to sell, they’ll send you an offer. They must do this within 8 weeks of saying yes if you’re buying a freehold property, or 12 weeks if you’re buying a leasehold property.

If you sell your home within 10 years of buying it through Right to Buy, you must first offer it to either:

  • your old landlord
  • another social landlord in the area

You’ll have to pay back some or all of the discount you got if you sell your Right to Buy home within 5 years of buying it.

You’ll have to pay back all of the discount if you sell within the first year. After that, the total amount you pay back reduces to:

  • 80% of the discount in the second year
  • 60% of the discount in the third year
  • 40% of the discount in the fourth year
  • 20% of the discount in the fifth year

The amount you pay back depends on the value of your home when you sell it.

Source: Gov.UK

For property investment in the UK from start to finish, Please Contact me

Dennis Bebo – MSC, BSC, DEA, CeMAP

TA DenEco Consultancy – www.deneco.co.uk