Buying, selling and letting - Monday, June 11, 2001

Since the abolition of student grants, students have had to take on hefty loans to pay for their tuition fees. According to Barclays Bank, the average student has debts of £5,286 when they finish their education. It’s no wonder that young adults are avoiding the expense of buying and running their own home in favour of living with their parents for longer. Laura Quiggan looks at one solution for hard-pressed families

In a report by the Universities and Colleges Admissions Services, one in six students will be living in their family home this year while they study. Developer Weston Homes have taken this surprising statistic as inspiration for the design of their family homes at the Ashcroft Grove development in Buntingford, Hertfordshire.

By incorporating attic living space into the design of the properties, Weston Homes give independence to families who want to support their children studying into their mid to late twenties. Loft conversions in a similar second-hand property could cost between £20,000 and £35,000, but three out of five homes at Ashcroft Grove have attics built in.

While scholars can take advantage of the home’s study, the rest of the family can enjoy three reception rooms, a fitted kitchen, utility room, bathroom, shower room, cloakroom and garage.

Educational facilities in the area include Haileybury College, St Edmund’s College, Bishop’s Stortford College and Heathmount School. Transport links are excellent with road and rail links to London and Cambridge, Stanstead airport on the Essex border and market towns of Bishop’s Stortford and Hertford.

Prices for a five bedroom house start at £370,000. For more information contact the marketing suite on 01763 274427.

Cary Grant and Sophia Loren found romance on one, and Damien Hirst recently bought one. Critics wonder why anyone would want to live in a glorified broom cupboard where a small misstep means banging your head painfully or drowning. For enthusiasts, it’s a fantasy-alternative to traditional homes and holidays and one of the last expressions of a traditional folk-culture. Stephanie Thomson tests the water and asks whether it’s really worth it to live on a houseboat.

Faced with rocketing property prices, pollution, the daily commuter gridlock and routine, living on a houseboat seems like an attractive alternative lifestyle – particularly in the overcrowded city. But is reality as romantic as the dream? For those not put off by basic amenities, cramped quarters, a lot of work and a lot of water, a houseboat may seem worth considering – but it’s worth weighing up the facts.  

In order to navigate Britain’s 2,000 miles of internal waterways, boats have to have a strict size limit. A Dutch barge may be as wide as 14ft, but to get through the narrowest locks on the system, you will need a narrow boat – often up to 60ft long, but less than 7ft wide. And even on the larger boats, the lack of available space will mean doing without all but the barest necessities.

The other main issue for most houseboat owners is the cost. It’s true that buying a houseboat is significantly cheaper than buying a flat – prices can start as low as £20,000 – but necessary additional costs quickly add up. Along with a boat, you’ll find yourself paying for:
Moorings – Residential moorings are limited, especially in London, and can cost upwards of £2,000 a year.
A licence – You need one to travel on canals and rivers run by British Waterways (the largest navigational authority) or other agencies. The cost will vary depending on the size of your boat and the provisions of the licence.
Insurance – You will need both boat insurance and third-party insurance in order to get a licence. The cost can vary, but a general rule-of-thumb is about 0.5 per cent of the value of the boat.
A Boat Safety Certificate – Your boat will need to meet a certain standard for waterway licencing. If you are buying a boat, check whether it has a current valid certificate or be sure you know exactly what work’s required to bring it up to standard.
A Survey – A mortgage lender will require a valuation and hull integrity assessment before extending you a boat loan. As a rough guide, this can cost £250–£300.
And don’t forget other running costs like fuel, heating, engine oil and repairs or maintenance.

Quick Contacts

British Waterways: www.britishwaterways.co.uk or 01923 226422
Details on all canals and waterways run by the authority, information and advice on all aspects of boat ownership and canal safety, as well as a database of boat hire companies and links to other sites.
Environment Agency: www.environment-agency.gov.uk
Acts as the navigational authority for the River Thames.
London Tourist Board: www.londontown.com or 020 7932 2000
Information about holidays, short breaks and events in and around London.
London Walks: www.london.walks.com or 020 7624 3978
Regular guided walks along London’s canal banks
Canal Junction: canaljunction.com.
Entertaining and useful site about all aspects of canal boating.

The Inland Waterways Show is being held from 29 June – 1 July this year at the NEC National Indoor Arena in Birmingham. Ring 0121 767 4430 for ticket information or visit the NEC website at www.necgroup.co.uk for further details.

Getting on the water

If you want to try boating for yourself, there are several options for getting your feet wet.
Many companies offer day trips, restaurant boats or  ‘hotel cruises’ on canals. Local tourist boards, mooring centres and the nearest British Waterways office all have details on boating holidays. Specialist boating magazines can also provide useful contacts.

Boat hire companies are a good first port of call for novices looking to gain experience on the water. You don’t need any previous experience, but you will need to be fairly fit and energetic and have at least one other person on board to help with navigation and locks. A reputable company will offer you instruction and support in handling a boat as well as insurance and service backup. Contact your local tourist board or British Waterways for help in finding licenced companies.

If you decide you want to buy a boat, there are several issues to consider. New boats are often built to order by specialist boat builders – canal boat magazines are useful for making initial inquiries. However, most new canal boat owners choose a second-hand boat as their initial investment is lower. While it’s true a second-hand boat may need more maintenance initially, it is also more likely to have the basic fittings and facilities you need – including things a novice may forget to arrange for when buying a new boat. Again, British Waterways and specialist publications are excellent places to start looking. Second-hand boats are available from marinas and boatyards, through brokers and estate agents in areas around canals and by private sale.

To consider when choosing a boat:

·    Which waters will you be navigating? Some of the smaller locks on canals measure only 60 or 70ft long and 7ft wide. Your boat will need to be smaller than this if you plan to navigate these areas.
·    What will you use the boat for? How often will you use it? You can get away with very basic facilities on board if you only plan to use your boat for day trips or short stays, but if you plan to use it more often or live on the boat, you will need many more amenities.
·    How much work are you prepared for? All boats need regular maintenance and upkeep, but some are more demanding than others.

The latest threat to the property market comes from what used to be considered almost a negligible fee – stamp duty.
Influences like a weakening US economy and the foot and mouth crisis may be minor in comparison to a fee that has not kept pace with the changing property market. Ed Walker investigates
The National Association of Estate Agents (NAEA) has highlighted stamp duty as a major contributing factor to the widening differences in regional price variations. As house prices have risen, more and more properties are now falling within the bands attracting stamp duty at higher rates. Treasury figures bear this out – the amount collected between 1999­–2000 increased by 173 per cent over the previous two years.

There is an increasing gap between prices in ‘hot spots’ such as London and outlying areas which the current Stamp duty arrangement exacerbates. ‘Research recently published by the DETR indicates that increases in stamp duty lead to quite significant reductions in mobility,’ says NAEA’s Chief Executive Hugh Dunsmore-Hardy, ‘Yet for an efficient economy it is vital that the country have a mobile workforce able to move where the jobs are.’  
The NAEA is arguing for a more graduated system of stamp duty payable only on properties worth more than £100,000. Says Mr. Dunsmore-Hardy, ‘We believe a new structure should be devised which will produce a fairer system, making it more cost effective for many people at the bottom end and middle of the property market to move to find work.’
In spite of the problem, the NAEA are predicting property transactions will increase slightly in 2002, with house prices rising an average of six per cent.

What is stamp duty?

This charge is levied by the Land Registry office to cover the cost of transferring the record of ownership of registered land or handling a conveyance. It’s payable on all properties valued at more than £60,000. Stamp duty is payable on properties under £60,000 if they form part of a larger purchase of several properties or a series of purchases.

How much is it?

The duty is one per cent of the purchase price for homes over £60,000 but below £250,000. For homes between £250,000 and £500,000, the rate rises to three per cent. For homes over £500,000, stamp duty is five per cent of the purchase price.
A certificate of value must be submitted along with the payment, or else the higher rate of four per cent will apply, regardless of the purchase price.

Who pays it?

The buyer. If you have engaged a solicitor to act for you in buying your home, your solicitor may submit the payment on your behalf and charge you for it.

What else do I need to know?

For many home buyers, stamp duty is a cost they may not have budgeted or bargained for. If you are concerned about whether duty is payable on the property you’re purchasing, check with your solicitor or phone the Stamp Offices helpline on 0845 603 0135. You can also visit the Inland Revenue’s website at www.inlandrevenue.gov.uk.

Avoiding your duty

The strict thresholds for stamp duty can have a huge effect on what it costs to buy a property. A home priced at £252,000, for example, will cost the buyer an extra £7,650 pounds in stamp duty, whereas a home only £2,000 cheaper would be only £2,500 – a saving of over £5,000.

Inland Revenue is very aware of the situation and sensitive to buyers’ attempts to reduce the asking price, but there still may be some ways you can legitimately avoid a higher rate.
·    If the price is open to offer, the simplest option is to make a lower offer initially.
·    Stamp duty is only payable on the property – not on extras like carpets or furnishings. If these items are included in the sale, it may be possible to arrange for them to be sold separately.

A kind of no-man’s land nestled on the Thames between Belgravia and Westminster, Pimlico has an air of ‘the land that time forgot’ about it. It combines the genteel air of its near neighbours with the grit which is the price of its proximity to Victoria station. Elegant streets of Georgian houses alternate with large swathes of council housing, classical brick and white stucco clashing with mid-twentieth century over-practicality. Its riverside area is well planned, making for a pleasant walking place – but the view to the south bank offers evidence of uneven development. Johnny Turner packs his passport. Neil Esposito takes pictures

Travelling

Cost Pimlico is in Zone 1. A weekly travelcard for zone 1 is £15.90
Underground Pimlico Victoria Line tube station affords easy connections to all London destinations
Train Services Short walk to Victoria station for points south
Coaches Nationwide services from Victoria coach station
Buses The 36 route pauses here on its way between south-east and north-west London. Extensive bus connections, including night buses, from Victoria station
Riverbus services Commuter boats from Westminster Pier to the City and Isle of Dogs

Drinking

Morpeth Arms Nice, touristy local – sit outside for the full carbon monoxide benefit. 58 Millbank SW1. 020 7834 6442

White Swan Busy lunchtimes, a largely young crowd. 214 Vauxhall Bridge Road SW1. 020 7821 8568

The Cardinal Join the off-duty priests and choristers in a shrine to Richelieu and pals. 23 Francis Street SW1. 020 7834 7260

Slug & Lettuce Popular chain pub. 11 Warwick Way SW1. 020 7834 3313

The Greencoat Boy Cosy and familiar, with good pub food. 2 Greencoat Place SW1. 020 7834 7894

Pimlico Wine Vaults Lively wine bar. 12–22 Upper Tatchbrook Street SW1. 020 7233 5801

Clubbing

SW1 Club Techno mecca with an array of popular club nights. 191 Victoria Street SW1. 020 7630 8980

Gigging

St John’s, Smith Square World-class classical performances. Smith Square SW1. 020 7222 1061

Dining

L’Incontro Pricey but excellent Italian food – lavishly furnished by David Linley. 87 Pimlico Road SW1. 020 7730 3663

La Poule au Pot Locals swear by this authentic French eaterie – good for summer alfresco dining. 231 Ebury Street SW1. 020 7730 7763

Hunan Mr Pang presides over this small, well-regarded Chinese restaurant. 51 Pimlico Road SW1. 020 7730 5712

Pomegranates Old-fashioned, eclectic – an institution. 94 Grosvenor Road SW1. 020 7828 6560

Rhodes in the Square TV chef Gary Rhodes fronts an ultra-modern eaterie in the famous Dolphin Square complex. Dolphin Square, Chichester Street SW1. 020 7798 6767

Roussillon classic French food – not cheap, but this isn’t a cheap area. 16 St Barnabas Street SW1. 020 7730 5550

Grumbles Wine bar with Anglo-French menu. 35 Churton Street. 020 7834 0149

Shopping

Victoria Street All the familiar high street names

Cornucopia Vintage clothing and fancy dress. 12 Upper Tatchbrook Street SW1. 020 7828 5752

Fronteira Delicatessen Lovely neighbourhood food shop. 43 Warwick Way SW1. 020 7630 5597

Redwood & Feller Quality tailors. 89 Rochester Row SW1. 020 7828 9519

Butterfly Two For ladies’ clothing. 28a Ponsonby Place SW1. 020 7821 1983

Westminster DIY Centre For all your home improvement needs. 50–52 Great Peter Street SW1. 020 7222 2228

Marketing

Tatchbrook Street Market Fresh flowers, fruit, veg and fish

Exercising
Queen Mother Sports Centre Courtney’s gym and swimming pool. Vauxhall Bridge Road SW1. 020 7630 5522

Curzons Health and Fitness Roebuck House, Palace Street SW1. 020 7931 8011

Viewing

Tate Britain A national treasure full of national treasures. Millbank SW1. 020 7887 8008, www.tate.org.uk

The River Thames London’s life blood, seen from a leafy promenade. Relax and people-watch by the Henry Moore sculpture

Apollo Theatre Lloyd-Webber gets his skates on. 17 Wilton Road SW1. 020 7416 6070

Victoria Palace Theatre Spend an evening with the kids from Fame. 8 Victoria Street SW1. 020 7834 1317

Laughing

The Comedy Store The king of comedy. 1a Oxendon Street SW1. 020 7344 0234

Star-spotting

The Labour spin kids buzz in and out of Millbank Tower, pawing at their pagers. MPs of all persuasions choose the neighbourhood for its nearness to work, with Dolphin Square particularly favoured.

Buying

Formerly known as bedsit-land, the area has seen some improvement to its housing in recent years. Money has moved in and buyers are recognising the appeal of a fixer-upper in a very central location. Flats rule and houses are almost unheard of. Good local agents include Bunn & Co (020 7834 3733) and Tuckermans (020 7222 5511). And see what’s available in our online listings at www.hotproperty.co.uk/search.

Landlords – getting rid of unwanted tenants

Q I’ve been renting my flat out for the last year or so, since I moved in with my partner. Initially the agreement was that the tenant could rent my flat for a six-month period. After this period there were no problems so the situation just continued. However, I am now considering selling my flat and would like my tenant to move out. How can I do this legally?  

A The procedures for ending a tenancy differ according to the type of tenancy
agreement. In your case you have an assured shorthold tenancy. As the fixed term was not renewed after six months, the tenant will have automatically become a statutory periodic assured shorthold tenant. This means the agreement is indefinite until the landlord or tenant ends it. 'Periodic' refers to the rent period or intervals at which the tenant pays rent, e.g. weekly or monthly.

You have the right to repossess the property at any time during a periodic tenancy, provided it is at least six months since the start of the original tenancy. In your case, the possession procedure must start with the service of two months’ notice, which must expire on the last day of the rent period. The notice must also state that possession is required under section 21 of the Housing Act 1988. A form for Notice Seeking Possession is available from legal stationers.

However, if your tenant doesn’t move out when the notice expires, you will need to obtain a court order to evict them. To do this you must complete an application and pay a fee. Be aware that it’s a criminal offence to evict most tenants without a court order, or to harass them to leave. You will automatically be given possession if you follow the correct procedure outlined. Once you have been granted possession of your property, if the tenant does not leave by the date on the order you can apply to the court for a warrant of possession and execution if you need bailiffs to evict the tenant.

This column is produced using information provided by Citizens Advice Line for London (CALL). Ask the adviser illustrates the type of subject that CALL handle and does not represent an actual client case. CALL is a confidential London-wide advice service offering information on a wide range of enquiries by telephone and e-mail.
For general enquiries please call 0870 750 9000 or email enquiry@cabline.org.uk

Q My neighbours are causing me consistent anxiety with their unsocial behaviour. I’m not an
unreasonable person but their noise, loud music, weekend parties and street brawls are more than I
can stand. I have spoken to my neighbours but the situation hasn’t improved. What can I do?

A If speaking to the neighbours hasn’t worked, then try putting it in writing. Remind them that their behaviour is not very neighbourly, impinging on the peace and lifestyle of others. If the problem persists, keep a diary of the frequency and type of disturbance, which can be used as evidence in any future action. Here are some additional steps you can take:

If the neighbour is a tenant and refuses to co-operate, it may be appropriate to contact their landlord. A private landlord can apply for possession on the grounds that a tenant has been a nuisance to neighbours. If it is possible to find out who the landlord is, he or she might be prepared to talk to the tenant about the problem and, in extreme cases, start possession proceedings.

If the local authority owns the property, the housing department may contact the tenants to help resolve the problem. The local authority has a duty to inspect its areas for statutory nuisances, to investigate any complaints made and deal with any noise. A local authority can apply for an injunction to prohibit anti-social behaviour by its tenants.

If the property is owned or run by a housing association, it may have a housing welfare officer who deals with disagreements between tenants.

In cases where neighbours may be breaching public health or pollution legislation, the local authority environmental health department can be approached. An officer will usually contact the neighbour to resolve the matter informally. If this fails, a notice may be served on the neighbour, which means they are required to stop nuisance behaviour. If the notice is not complied with, proceedings can be taken against them in the magistrate’s court. In some areas, environmental health departments provide a 24-hour service for urgent environment problems.


This column is produced using information provided by Citizens Advice Line for London (CALL). Ask the adviser illustrates the type of subject that CALL handles and does not represent an actual client case. CALL is a confidential London-wide advice service offering information on a wide range of enquiries by telephone and e-mail.

For general enquiries please call 0870 750 9000. For consumer enquiries please call 0845 051 1000.

Green and leafy, upmarket and pricey, Wimbledon is one of the more villagey London addresses. A good six miles south-west of the city, Wimbledon retains its own flavour and pace. It’s world famous for its tennis championships, yes, but there’s much more to this suburban haven than Bollinger and backhands. Johnny Turner looks at a part of London apart from London. Pictures by Neil Esposito

Travelling

Cost Wimbledon is in Zone 3. A weekly travelcard covering zones 1, 2 and 3 is £22.40
Underground District Line stations at Wimbledon and Wimbledon Park; Northern Line stations at South Wimbledon and Colliers Wood
Train Services South West Trains services from Wimbledon to Waterloo in 15 minutes
Tramlink Quick services to Croydon and New Addington, Surrey
Buses Frequent buses into central London and throughout the local area. The N77 runs all night from Trafalgar Square. A monthly bus pass covering zones 1–4 costs £36.50

Drinking

Dog and Fox Once the local of the late Oliver Reed. 24 High Street, Wimbledon Village SW19. 020 8946 6565

The Crooked Billet Traditional pub with dining room. 15 Crooked Billet Road SW19. 020 8946 4942

All Bar One For when character isn’t that important. 33–39 Wimbledon Hill Road SW19. 020 8971 9871

The Alexandra Local with food. 33 Hill Road SW19. 020 8947 7691

Gigging

BB’s Blues Club Colour House Theatre, Merton Abbey Mills, Merantun Way SW19. 020 8545 0948

Roar With Laughter Comedy evening with your host, MC Windsor. Red Lion, High Street, Colliers Wood SW19. 020 8372 0836

Dining

Cannizaro House Hotel with award-winning restaurant. West Side, Wimbledon Common SW19. 020 8879 1464

Cinnamon Hip South Asian restaurant, great wine list. 10 Merton Parade, Kingston Road SW19. 020 8540 1717

Dolce Vita An impressive Italian experience. 44 The Broadway SW19. 020 8543 7643

Jim Thompson’s Flaming Wok Lively spot with open-wok kitchen. Bar open till 1 a.m. 141 The Broadway SW19. 020 8540 5540

Le Piaf Upmarket French bistro. 40 Wimbledon Hill Road SW19. 020 8946 3823  

Utah Innovative, contemporary American – yes, that’s possible. 18 High Street, Wimbledon Village SW19. 020 8944 1909

Clubbing

The Watershed Shake your groove thang. 267 The Broadway SW19. 020 8540 0080

Shopping

Centre Court Shopping Centre 320,000 sq ft glassed-in shrine to consumerism. The Broadway SW19

Bridget Armstrong Hats Glamorous headwear for all occasions. 83 Hartfield Crescent SW19. 020 8540 5424, www.bridgetarmstrong.com

Guitar City Everything for the strummer, twanger and DJ. 106 The Broadway SW19. 020 8241 2171

Aero Contemporary furniture and lighting. 46 Weir Road SW19. 020 8971 0022

Tchibo Designer coffee. St George Centre, 4 Wimbledon Hill Road SW19. 020 8944 6964

Belinda J Interiors Stylish furniture and soft furnishings. 5a Lancaster Road SW19. 020 8944 7770

Hygrove Custom-built furniture for the kitchen, bedroom or study. 152–154 Merton Road SW19. 020 8543 9207

CD Warehouse Buy, sell and trade CDs and tapes. 46 The Broadway SW19. 020 8543 2355

Rodier Fashion boutique. 4 Church Road SW19. 020 8946 6004

L K Bennett You can never have enough hats, gloves and shoes. 66 High Street, Wimbledon Village SW19. 020 8947 2038

Marketing

Merton Abbey Mills Very popular weekend market – crafts, antiques and more. Watermill Way SW19. 020 8543 9608

Exercising

Wimbledon Leisure Centre Wide range of keep-fit facilities. Latimer Road SW19. 020 8542 1330

YMCA Aerobics to yoga. 200 The Broadway SW19. 020 8542 9055

Holmes Place Fully fitted fitness palace. Battle Close, North Road SW19. 020 8544 9111

Viewing

Wimbledon Championships 25 June to 8 July. All England Lawn Tennis Club, Church Road SW19. 020 8944 1066, www.wimbledon.org

Wimbledon Theatre Opera, musicals, comedy, dance and much more. The Broadway SW19. 020 8540 0362

Windmill Museum History of windmills housed in historic 1817 specimen. Wimbledon Common SW19. 020 8947 2825

Wimbledon Football Club Selhurst Park Stadium SE25. 020 8771 2233

Odeon Wimbledon The latest films. The Broadway SW19. 0870 505 0007

Relaxing

Wimbledon Common Over 1,100 acres of all sorts of terrain – woodland, grassy spaces, bridlepaths etc.

Wimbledon Park More formal than the Common, with boating lake and play areas.

Learning

Wimbledon School of Art Specialist art and design school. Merton Hall Road SW19. 020 8408 5000

Wimbledon School of English Teaching English since 1964. 41 Worple Road SW19. 020 8947 1921

Star-spotting

Annette Crosbie, formerly known as Mrs Victor Meldrew, is a SW19 resident. Lionel Blair and Martin Clunes are also locals.

Buying

Buyers of all stripes are drawn to Wimbledon – the very wealthy, investors from overseas, young couples and middle-class families. The area is by no means cheap – a two-bedroom flat will cost between £200,000 and £275,000, and a four-bedroom house can run anywhere from £500,000 to well over the million-pound mark. Local agents include Chesterton (020 8879 7922) and Your Move (020 8946 6262). See our online listings at www.hotproperty.co.uk/search.

Are you better off with an interest-only or a repayment mortgage? Andy Stuart, Editor-in-chief of Your Mortgage magazine, offers advice for finding your way through the mortgage maze

There is one thing that will never change about a mortgage – eventually you will have to repay the loan.

You only get two choices when it comes to paying off your mortgage and, as with many things in life, one means playing it safe while the other means taking a risk.

Your first option is an interest-only mortgage. Every month the only responsibility you have is to meet the cost of the interest on your loan. This obviously means cheaper monthly payments. But you are then left with the rather large problem of how you are going to pay back the amount you originally borrowed.

The solution is to use the proceeds of a separate investment plan. For many years this meant taking out an endowment policy, but now you can also choose to invest in an ISA or even a pension plan to clear your mortgage. The idea is that you put money into your chosen investment vehicle every month. This should then grow at a rate that will enable you to pay off your mortgage debt at the end of the term, possibly leaving you with a tidy tax-free lump sum into the bargain, although there are no guarantees.

The alternative is to take out a repayment mortgage. Every month you make a payment that partly pays the interest on the amount you have borrowed and partly repays the outstanding loan. At the end of the term the mortgage is guaranteed to be repaid in full.

With an endowment policy, the provider calculates how much your investment will be worth assuming it grows at four, six or eight per cent for each year of the term of your mortgage. However, these are only projected figures and there is no guarantee your endowment will grow at a rate that will enable you to eventually pay off your mortgage debt.

In fact, there were many endowment policies sold during the late eighties and early nineties that have not performed as well as expected. Following the well-publicised misselling scandal, there are now thousands of borrowers who have been told that they must substantially increase their premiums or face the prospect of having an outstanding debt when their policy matures. This is a scenario that has not gone unnoticed by the next generation of homebuyers.

‘In the late eighties endowment policies were very popular because you were initially guaranteed a good return,’ says Mark Hemingway of Halifax. ‘Then these returns dropped, some people got their fingers burnt and, as a result the market has shifted back towards repayment mortgages. These now account for 95 per cent of our mortgage business.

‘People want more flexibility but they also want to see their debt reducing and have the certainty of knowing that the loan will be paid off. You don’t get that with an interest-only deal. We anticipate the majority of people will continue to choose repayment mortgages.’

Interest-only mortgages are no longer just linked to endowments. Today, you can also choose from an ISA or a pension to pay off your mortgage. But although they may be tax-efficient and offer good returns, there is a risk that you may not clear your debt.

Which option you choose depends on your circumstances and the type of person you are. If you enjoy taking a risk, then the prospect of the pot of gold at the end of the interest-only rainbow may be too much for you to resist. But if you crave security and certainty, look no further than a repayment mortgage.

Interest-only

Pros
·    Potential to pay off your mortgage ahead of schedule and earn a tax-free lump sum
·    Built-in life assurance
·    Do not have to start a new loan if you move house

Cons
·    There is no guarantee your loan will be repaid
·    You may to have to increase your premiums to cover any shortfall
·    If you have to cancel or sell your endowment policy early the potential return will be greatly affected

Repayment

Pros
·    Your loan is guaranteed to be repaid by a set date in the future
·    More flexibility. Many lenders will allow you to overpay, underpay, borrow back money or take a holiday without any charge
·    Provides more security and is easier to understand.

Cons
·    You have to organise your own life assurance – a must if you have dependants
·    No possibility of a tax-free lump sum
·    You have to start a new loan every time you move house

Clapham has for centuries been known as a genteel alternative to the grind and grime of the inner city. Although still dominated by the presence of the spectacular 220-acre Clapham Common, these days it’s a decidedly urban area. A traffic tangle engulfs the park and threads into the High Street, itself now a playground for the young, wealthy and smug. The man on the Clapham Omnibus has indeed given way to Tarquin in an open-top Mercedes, but the charm of the place, typified by the beautiful Victorian terraces, still peeks through. Johnny Turner takes a closer look. Photos by Neil Esposito

Travelling

Cost Clapham is in Zone 2. A weekly travelcard covering zones 1 and 2 is £18.90
Underground Northern Line tubes from Clapham South, Clapham Common and Clapham North stations
Train Services Clapham High Street station to Victoria in nine minutes
Buses Regular services to the West End – the 88 gets to Oxford Circus in about 35 minutes. Take the 35 to Liverpool Street for the City (about 50 minutes). A monthly bus pass covering zones 1 to 4 is £36.50

Drinking

The Sequel Stylish bar with food and films. 75 Venn Street SW4. 020 7622 4222

Sand Excellent cocktails, a bit hectic at weekends. 156 Clapham Park Road SW4. 020 7622 3022

The Windmill Huge, traditional pub – with the Common as its beer garden. Windmill Drive SW4. 020 873 4578

Mistress P’s Nothing fancy, which makes a nice change around here – fun quiz nights. 29 North Street SW4. 020 7622 5342

Two Brewers ‘My local drag pub’s become a trendy wine bar’. 114 Clapham High Street SW4. 020 7498 4971

Clubbing

Clapham Grand Crowded, expensive night out. 21–25 St Johns Hill SW11. 020 7228 1070

Wessex House More like Essex House. 1a St Johns Hill SW11. 020 7228 0501

Dining

Eco Great pizza, horrible acoustics – book ahead to eat, drink and shout. 162 Clapham High Street SW4. 020 7978 1108

Gastro Just like being in France. With communal table for easy eavesdropping. 67 Venn Street SW4. 020 7627 0222

Tiger Lil’s Home of the random stir-fry. 16a Clapham Common Southside SW4. 020 7720 5433

Sappho Mezze Bar Greek treats. 9 Clapham High Street SW4. 020 7498 9009

So:uk Design-led eaterie and drinkerie. 165 Clapham High Street SW4. 020 7622 4004

Shopping

Kitschen Sync Irony emporium, the last word in tacky gifts. 9 The Pavement SW4. 020 7652 1070, www.kitschensync.com

Sainsbury’s  Blade Runner exterior with regular supermarket inside. Clapham High Street SW4. 020 7498 9396

MFI For furniture. 168–180 Clapham High Street SW4. 020 7627 8354

Today’s Living Health food and more. 92 Clapham High Street. 020 7622 1722

Words Worth Classical CDs. Just what the name says. 116 Clapham High Street SW4. 020 7622 5344

Exercising

Holmes Place Fully fitted fitness palace. 4–20 North Street SW4. 020 7819 2555

Clapham Leisure Centre Swimming and gymming. Clapham Manor Street SW4. 020 7926 0700

Clapham Common Jog around or walk the dog

Viewing

Clapham Picture House Excellent rep cinema with cool bar. 76 Venn Street SW4. 020 7498 3323

Outlines For visual art. 22 The Pavement SW4. 020 7622 5328

Star-spotting

Celebrated residents include actor and voiceover king Neil Pearson, Paul Kaye (AKA Dennis Pennis) and acclaimed actress Geraldine James.

Buying

Prices have gone way up in the last few years. A four-bedroom Victorian house can easily cost £500,000 and it would be difficult to find a one-bedroom apartment for less than £160,000. But the quality of the homes in the area make Clapham well worth investigating. Local agents include Charles Gordon Estates (020 7274 1000) and Bushells (020 7627 8084). Hot Property lists several properties in the area. See our online listings at www.hotproperty.co.uk/search.

Q My husband and I are about to buy a second home and we are buying for cash. Since we don’t have a mortgage, we thought we could avoid the time and expense of having our solicitor do a local search. Is this search necessary?

A As cash buyers, you are under no obligation to have a local search carried out. However, if you were buying with a mortgage, your lender would insist on a search being done before you exchanged contracts – and you would be wise to take similar steps for your own reassurance.  

In a local search, known officially as a Local Authority Search, your local council will compile any information from its records that may affect the property you are buying. They will send the results to your solicitors in printed form. The search includes information such as whether the road abutting the property is public rather than private, whether the property has a planning (permission) history, whether the property is within a conservation area, or whether there are any local authority notices (for example repair notices) existing on the property.

It is to your advantage when buying to gather as much relevant information as possible. If you do opt to have the search carried out, make sure the result is made available to you through your solicitors before the exchange of contracts. Exchange represents your commitment to the transaction and you will not be able to act on any information that the search uncovers after that time.

You mentioned the cost and delay the search would involve, but in fact local search results are a lot faster these days. And for about the same price as the local authority would charge (most London boroughs charge about £135), you can have a professional law researcher check council records and have a result sent to your solicitors in a matter of three or four days. Most councils take about 10 days to turn around a search result.

When you’re buying a property, ignorance is not bliss. It may be that a local search turns up nothing that affects the property directly, but it’s worth the time – and the cost.

Q The house I am buying has a history of subsidence, but I am still prepared to buy it at the agreed price. I understand it is very important to get acknowledgement from my insurers that they recognise the possible subsidence problem before taking out insurance cover. Do you have any advice?

A In my experience, once you’ve had professional advice about the problem of past subsidence and possible future movement, getting the proper buildings insurance is crucial. You must be covered properly.

The first thing you should do is apply to have the vendor’s insurance company cover you for any interim period before your own policy comes into effect. There is actually an understanding amongst major insurance companies that they will continue to cover for such risks as subsidence during a change of ownership.

I hope you have already commissioned a report from structural engineers to look specifically at the issue of subsidence or movement – if not you should do so now. When you get the result of this specialist report you should make a copy available to your proposed insurance company. You should insist that your insurance company read the report and briefly acknowledge receipt of its contents – and make sure this acknowledgement is in writing. As I know from my own experience, this exercise is stressful and time consuming. However, it will give you peace of mind to know that the insurance company, like you, is aware there may be a risk. As a final caution, make sure the insurance company clearly agrees to offer cover before you actually commit yourself to the purchase by exchanging.