Buying, selling and letting - Tuesday, September 25, 2001

·    Ordinary lightbulbs use four times more power than energy saving lighbulbs. Because the common variety of lightbulb uses more electricity, they burn out quicker and need replacing more frequently than modern alternatives. Energy saving lightbulbs use smart electronics that enable them to produce a highly efficient light using just a small amount of energy. They save you money too, by lasting up to eight times as long.
·    Energy saving lightbulbs are available from your high street store in the usual bayonet and screw fixings. They come in all shapes and sizes to suit a variety of lampshade designs.
·    Long stick-shaped bulbs work best in central positions because they radiate light more evenly.
·    Like common bulbs, energy efficient bulbs are available in a choice of wattages. But be aware that the wattage is lower because they use only a quarter of the energy, and they can take a short time to reach their full brightness.
·    To make the most cost effective use of energy saving lightbulbs, use them in the areas of the house where you have the lights on frequently or for long periods. This is particularly the case for houses with outside security lighting, which is left on long term.
·    Be aware that special dimmer switches are required for use with energy saving lightbulbs and some timers are incompatible, so check your manufacturer's instructions first.

Get your layout right on the floor – If you’re hanging a collection of different sized frames and subjects, clear a patch of floor space and arrange the pictures there first. You can practise getting the grouping and colours right before committing yourself to hammer and nails.

Add emphasis with borders or blocks of colour – Putting a border around the frame or centring pictures on blocks painted a contrasting colour to the walls will focus attention on the pictures and help break up large expanses of wall space.

Use pictures to correct design ‘faults’ – A bright picture can warm up a cold room, long shapes can stretch a narrow room and tall ones heighten a ceiling. Using images with a faraway horizon or sense of depth can even make a room appear larger.

Use an element of surprise – Seeing a picture where you least expect to can be part of its charm. Hang pictures above a workspace where you can appreciate them when you glance up. Put a small picture in an odd corner, above a door, or near architectural features to emphasise them.

Keep frames and mounts uniform – If you’re hanging pictures in groups, consider framing and mounting each in the same way. This will pull even a varied group of pictures together and make a dramatic statement in the room.

Explore unusual frames – There are thousands of frames available, and choosing the right one can make or break a picture. As well as more traditional frames, think about round or narrow frames, wide frames for tiny pictures or even very deep frames that will hold small three-dimensional objects as well as images.

Remember that pictures don’t have to be on a wall – Try putting images on a table or desk with a piece of glass cut to fit over the top, adapt a screen to carry photographs or create a display from photo cubes or a row of small identical frames.

Make your own frames – Consult craft books for frame ideas – papier maché, clay and scraps of wood or cardboard all can be used to make frames. Cover a ready-made frame with a collage of small objects or a dramatic paint effect. You’ll need a minimum of skills and will end up with something one-of-a-kind.

Be creative with picture fixings – The way you hang pictures can often be as creative as the pictures themselves. Hang pictures from decorative hooks or disguise hanging wires with a length of ribbon. Suspend the frame from the ceiling or attach an extra board to the back of the frame to hang the picture a few inches in front of a wall. Attach a small light to the top of the picture, or hang where it will catch a spotlight.

Forget frames – Sophisticated copying methods mean you can now transfer colour images straight onto fabrics or paste colour copies on walls. Colour copies can even be laminated and hung in windows or used as placemats. Consult your local copy shop for a little off-the-wall inspiration.

Stamp duty is a charge 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?

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 purchaser. 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.

Are there any exceptions?

Yes. Chancellor Gordon Brown recently announced that property located in one of 2,000 local wards deemed by the Treasury to be ‘deprived areas’ – and costing between £60,000 and £150,000 – will be exempt from stamp duty. This will save buyers one per cent of the purchase price. For a list of areas affected by this, visit www.inlandrevenue.gov.uk.

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.

Plan, plan, plan

Before you begin to decorate, make a floor plan of your apartment and sketch in where furniture will go. Make a budget. Compile a scrapbook of colours and designs you like, room treatments and inspirations. It will help you focus your attention on what you really want.
Have a clear purpose
How will you use your apartment? Is it a full-time home or a pied-a-terre? If you dislike cooking and a city full of eateries are on your doorstep, consider doing without a gourmet kitchen and putting your decorating attention elsewhere.

Make your view a feature

City apartments often come with spectacular views – your furniture arrangement should take this into account. Group furniture so that it does not obscure your view, alliowing you to enjoy the view while seated. If your apartment doesn’t enjoy a sweeping view, think of windows as a source of light while concentrating on making the interior your view.

Create a focal point

Fireplaces have traditionally served as a focal point for arranging a room. In the absence of obvious features, create your own by using a central display of pictures, a sculpture or flower arrangement, unusual furniture or a home entertainment system.

Go for clean lines

Your slick city apartment doesn’t necessarily have to be done out in a minimal style, but do remember that ‘less is more’. A dramatic setting demands a bold touch and will be enhanced by strong, unfussy furnishings.

Be careful with colour

Unless you’re feeling very confident, stick to a monochrome colour scheme with just one or two ‘accent’ colours or use different shades of a single colour. Too many or poorly co-ordinated colours can have the same effect as fussy furnishings.

Emphasise texture

Add interest to your interiors with texture – contrasting rough with smooth or using luxury fabrics can add interest in an otherwise neutral environment.

Bring the outside in

Many city spaces have balconies or outdoor living areas which can form an integral part of your living area and need as much attention as you would afford your indoor rooms. Remember too that bringing natural objects, seasonal displays or plants into your apartment will maintain a link with the natural world that’s often lacking in a city environment.

Stay well lit

Remember that lighting can be as important to the atmosphere of a room as furniture. Spend time observing your room at different times of day, and plan the lighting to reflect changes. The more versatile your lighting, the more effective it will be. Use spot-lighting and dimmer switches – emphasise drama.

Ask a professional

If you are unsure about décor, need to decorate a penthouse or plan to use your apartment for important entertaining or to receive business clients, seek professional advice. A professional decorator will spend time looking at your home and learning your tastes, helping you to save time and avoid ‘mistakes’.

As the information revolution dawned, promises were made about how computers would change our lives. These amounted to sketchy ideas about empowerment, increased leisure time and access to information. It was left to us to find out what these would actually mean. But there was also substance among the hype, clear ways in which we could all benefit from the speedy transfer of data. The internet at its best saves time, money and hassle. And one area of life which has been ripe for revolution is the process of buying a home, particularly the legal process involved. And one company who has turned this knowledge into results for its customers is legalmove.com.

Not long ago, the necessary legal help with a house purchase involved time-consuming trips to a solicitor’s office and hours or days spent awaiting phone calls in an effort to keep up with developments. Providing home buyers with a top-notch conveyencing service with the added bonus of access to clear and easily accessible information on their particular conveyancing case, legalmove.com give their customers what they need most – the facts.

legalmove.com is a division of HammondsDirect, one of the UK’s largest firms of conveyancing solicitors. With more than 300 highly trained specialists, they handle over 3,000 successful conveyancing transactions every month. With a customer-centred approach backed up by the latest in technology, legalmove.com make the buying process easier than ever. With instant quotes and online instruction you can set the ball rolling immediately. Once instructed, they assign a qualified solicitor to see your case through from instruction to completion. After that, they help you keep up with the progress of your conveyancing case every step of the way via secure 24-hour access to the progress of your case by computer, along with seven-days-a-week telephone help. legalmove.com makes it easier than ever to know what’s going on when you want to know it. And that’s the revolution we were promised.

Hot Property has joined forces with legalmove.com to offer you the best conveyancing service at the best possible price. To get a quote or instruct a solicitor visit www.hotproperty.co.uk/move.

Should you go for a fixed rate now or wait in case rates come down further? Paula John of Your Mortgage magazine weighs up your options

Fixed rate mortgages can be an eminently sensible option. When you opt for a fixed rate, you know exactly how much your monthly repayments will cost you, whether it be for the next six months, two years, five years or more. The predictability of the monthly mortgage payment gives the home owner peace of mind – as opposed to the uncertainty experienced by those with variable rate mortgages – and this accounts for the popularity of fixed rate loans. And in the present economic climate you can also get a good bargain. Bank base rates have been reduced three times this year – by just 0.25 per cent at a time, but the trend has been steady. Base rates now stand at 5.25 per cent and mortgage rates are not that much higher, ranging from around 6.24 per cent to 7.25 per cent at the time of going to press. Some analysts and economists believe that base interest rates will come down again this year – although few think they will fall below five per cent unless the global economy is in serious trouble. So if you're considering taking out a fixed rate, should you strike while rates are reasonably-priced or wait for them to (possibly) come down further?

Act now

Many experts, even those predicting a further cut in interest rates, would advise you to sign up to a fixed rate as soon as possible. This is because the money markets have already factored in a 0.25 per cent cut in their calculations. So the money they lend mortgage providers will not get any cheaper. And lenders have to price their products accordingly. ‘At the beginning of June, a large number of mortgage lenders increased their fixed rate deals by between 0.1 per cent and 0.35 per cent, and this trend looks set to continue,’ says Ray Boulger, senior technical director at mortgage adviser Charcol. ‘So borrowers who want a fixed rate would be advised not to wait.’ John Butler, economist at HSBC, agrees. The bank predicts that rates will come down, maybe by as much as 0.5 per cent, by the end of the year, due to a global slowdown. And yet, Butler says, ‘If I were taking out a mortgage or remortgaging right now, I would go for a fixed rate. There is a lot of uncertainty regarding what will actually happen to interest rates, and holding out for a further cut is just too risky. The potential loss if the US does rebound and rates spring up is simply not worth it.’

A good deal

As a rule of thumb at the moment, if you can get a fixed rate under six per cent you've got a good deal. Quite how long you want to fix the rate for depends on what you think might happen to interest rates. Sadly no one can guarantee future interest rate movements. But as long as you opt for a mortgage that does not tie you in with early redemption penalties after the end of the fixed rate period, you should be playing it safe – and getting a bargain along with peace of mind.

Until fairly recently, Camberwell was considered one of London’s also-rans – its lack of immediate transport amenities has made it a well-kept secret among those discerning enough to appreciate its leafy, laid-back feel. But its popularity is once again on the rise as buyers learn that there is more to an area than a tube station – and this has brought new life to what has always been a vibrant village. Johnny Turner samples the scene. Photos by Neil Esposito

Travelling

Cost Camberwell is in Zone 2. A weekly travelcard covering zones 1 and 2 is £18.90
Underground Not served by the tube; nearest stations Brixton, Oval and Elephant & Castle are a short bus ride away
Train Services Less than 15 minutes from Denmark Hill station to Victoria
Buses The area’s main mode of transport – lots of routes into City and West End

Drinking

The Snug Stylish bar with good music, open till 2 a.m. weekends. 65 Camberwell Church Street SE5. 020 7277 2601
Funky Monkey Chilled out space, youngish crowd. 25 Camberwell Church Street SE5. 020 7277 1803
Sun and Doves Popular local with good food. 61 Coldharbour Lane SE5. 020 7733 1525
Redstar Buzzing nightspot facing Camberwell Green. 319 Camberwell Road SE5. 020 7703 7779

Clubbing

Cohiba Latin-influenced beats. 58a Camberwell Church Street SE5. 020 7740 6677

Gigging

The Crypt Excellent Friday night out for aficionados of the jazzy, bluesy, groovy and swinging. St Giles Church, 81 Camberwell Church Street SE5. 020 7701 1016

Marketing

St Giles Church Outdoor market on weekends, clothes and jewellery and all sorts. 81 Camberwell Church Street SE5

Dining

The Vineyard Friendly and excellent Greek taverna. 3 Camberwell Grove SE5. 020 7703 2131
Seymour Brothers Cosy deli-restaurant. 2 Grove Lane SE5. 020 7701 4944
Zara’s Kitchen Wonderful Indian cuisine. 15 Camberwell Church Street SE5. 020 7252 4587
Tadim Café Turkish delights including coffee and pastries – good for a weekend breakfast. 41 Camberwell Church Street SE5. 020 7708 0838
Mozzarella E Pomodoro Stylish Italian eaterie. 21 Camberwell Green SE5. 020 7277 2020

Shopping

Butterfly Walk Enclosed shopping precinct with Safeway, a good bookshop and a store full of kitsch for the home.
CD Bar A good variety of music types. 340 Camberwell New Road SE5. 020 7274 1441
SCOPE Charity Shop For that art-school look. Denmark Hill SE5. 020 7274 2392
Rhino Sports All types of equipment for the athlete. 14 Camberwell Church Street SE5. 020 7703 2242

Exercising

Camberwell Leisure Centre Swimming and gymming. Artichoke Place SE5. 020 7703 3024

Viewing

South London Gallery Modern art in a variety of media. 65 Peckham Road SE5. 020 7703 6120
Camberwell College of Art Gatecrash private views and get free Lëibfraumilsch. Peckham Road SE5. 020 7514 6300
Burgess Park Lovely green space. Albany Road SE5
New Peckham Varities Panto and other children’s shows. Havil Hall, Havil Street SE5. 020 7708 5401

Laughing

East Dulwich Cabaret Monday, Thursday and Saturday at 9 p.m. East Dulwich Tavern, 1 Lordship Lane SE22. 020 8299 4138

Star-spotting

Artist Mark Wallinger, Tate head honcho Nicholas Serota and Monty Python alumnus Terry Jones are locals.

Buying

Demand for ex-council property is strong, so prices have risen sharply in the past two years. The excellent Georgian terraces of the Grove Park conservation area are far from cheap – these houses easily go for £500,000. A two-bedroom flat in a Victorian mansion block will cost around £150,000. Local agents include Morgan Berry (020 7277 2628) and Andrews & Robertson (020 8299 1711). See our online listings at www.hotproperty.co.uk/search.

Dan and Amanda Goodwin have lived in their two-bedroom flat on the third floor of a 1930s mansion block on Streatham High Road for two years.

What do you see?

Dan: It depends on where you’re looking from. The window in the lounge looks down on the High Road, across to Woolworth’s. This is good for Saturday afternoon people-watching as shoppers are out in force. And the window faces north-west, so the sun sets over the shops.
Amanda: From the second bedroom/study there’s an excellent view of the High Road as it winds north. I quite often stand there and look at it – it’s very relaxing. It’s my favourite view here. From the kitchen, there’s a balony with a far-reaching view towards the south-east. You can see rolling hills and the television tower at Crystal Palace – it’s my own personal beacon. Sometimes it disappears in the mist and all you see is the blinking light. Also we have access to the roof space, and you get fantastic views in every direction. You can just make out Battersea Power Station and get a side-on view of the London Eye. If there’s a good sunset we always go up and look at it. Dan: ‘I can see Amanda: ‘You can see way up to Harrow-on-the Hill, which is where I lived years ago.’

What do the views add to your life?

Being on a busy main road is better when you’re above it. You’re away from the traffic but it’s also nice to be able to see it. The windows are double glazed, which is very important. The flat is always light. We get fantastic sunsets, great skies – this really improves your mood.

How much did the views influence your decision to buy this flat?
The views made all the difference. Having all this sky and light was the deciding factor.

House prices have rocketed recently, making the bottom rung of the property ladder out of reach to many. Andy Stuart, Editor-in-chief of Your Mortgage Magazine, looks at what lenders are doing to keep first-time buyers in the game – and warns buyers to borrow sensibly

High price inflation may be good news for those existing homeowners who are planning to sell up and buy a cheaper property, cashing in on their profits. But these people form a very small minority. Spiralling house prices are not such good news for most people. For example, many first-time buyers who are simply trying to get a foot on the housing ladder will have great difficulty in affording even the smallest properties. The average age of today’s first-time buyer is 33, compared with 23 a decade ago. The fact that “key” workers such as nurses and teachers have been priced out of the areas near their workplaces is an alarming by-product of the recent house-price frenzy. Investment purchases now make up 28 per cent of house sales, and the dream of an owner-occupier society recedes as the property market, particularly in London and the South East, increasingly favour a wealthy elite.

However, many lenders are looking to help homebuyers and have relaxed their lending terms, focusing on two areas – income multiples and the percentage of the property’s value that they are prepared to lend. Most lenders’ published maximum income multiples are in a band between three to three-and-a-half-times single income, or two-and-a-half to three times joint incomes. But the published lending terms don’t tell the whole story.

Halifax, for example, says that it will generally lend three-and-a-quarter times single income as a top limit but advises that ‘there may be a bit of flexibility in individual cases’. And with property prices so high in London, many people will need that flexibility simply in order to buy a home.

Lenders have had to offer larger multiples than in the past in order to help homebuyers purchase. But this could encourage some people to take on bigger mortgages than they really need and, more importantly, larger loans than they can afford.

Standard Life Bank doesn’t calculate its lending on the basis of income multiples – it offers loans on the basis of affordability, having looked at the borrower’s income, expenditure and other financial commitments. When the loan is then expressed on the basis of income multiples, it is not uncommon for borrowers to be offered four times income and, in a limited number of exceptional cases, as much as five times income.

The other area where some lenders have relaxed their mortgage lending is loan-to-value (LTV), which is the size of mortgage expressed as a percentage of the property’s value. Most lenders peg their maximum LTV at 95 per cent, although a handful of lenders will consider 100 per cent loans.

The Halifax has recently increased its maximum LTV from 95 to 97 per cent. However, borrowers need to exercise caution, since although mortgage affordability is low at the moment, interest rates could go up towards the end of the year.

A fixed or capped interest rate mortgage is a sensible option for anyone taking on a large loan, since they provide valuable protection against rising rates. There were many borrowers in the early nineties who would have benefited from these types of mortgages.

Six of the best

If you need to maximise your borrowing by going for high income multiples and/or minimising the deposit you put down, you should consider the following points:

·    Think again. Consider whether you really need to buy a home now or whether you should wait.
·    Consider buying a cheaper property elsewhere.
·    Consider a fixed or capped rate mortgage, possibly with no redemption penalties during the period of the benefit, and definitely with no overhanging redemption penalties
·    If you are going for a discounted variable rate, take a short-term discount and, again, definitely one with no overhanging redemption penalties.
·    Look at mortgage payment protection insurance to cover your payments in the event that you are unable to work through unemployment, sickness or accident.
·    If buying with someone else, draw up a legal agreement defining each partner’s responsibilities and rights