Buying, selling and letting - Wednesday, April 03, 2002

The traditional pension scheme is no longer looked upon as the safe bet it once was. These days property is considered by many to be a much more sound investment. Steve Mansfield, partner at Mortgage Talk Direct, looks at why people are looking to bricks and mortar to ensure a comfortable old age

Pensions have been getting something of a bad press recently. Many organisations, some of them household names, have been revising their pension scheme estimates – often dramatically downwards. Most have now closed their final salary schemes to new employees and some have even suggested to existing staff that they might like to shop around elsewhere. Suddenly the retirement picture is starting to look a little less than rosy.

All this doom and gloom is made worse by the fact that, especially since 11 September, the world’s stock markets have been at best volatile, and at worst seriously underperforming. In bald terms, all this translates to the fact that your pension (if indeed you have one) is probably worth less than you believed. Moreover, the long-term implications are that – assuming that global growth stays within the bands that are being forecast – by the time the current generation of thirtysomethings approaches retirement, their pension provisions will be severely eroded.

Of course, basic human instinct, coupled with the need for financial security, is driving us all to seek alternatives as our pension provisions take a nosedive. This means that, short of stuffing fivers under the mattress and hoping they will magically start to earn interest, we need to re-examine the best ways to capitalise on our earnings potential. If we stop for a moment to think about it, we should all be looking at something that represents a relatively low risk. After all, playing a high-risk strategy with your potential retirement fund is a surefire recipe for disaster – not to mention poverty in later life.

So, what’s the answer? As I mentioned earlier, with the investment markets in the doldrums any form of savings vehicle is going to provide you with a limited rate of return. And with interest rates set to remain at reasonable levels for the foreseeable future, the returns on bonds, unit trusts and even ISAs are hardly going to pay for an annual Caribbean cruise, let alone finance that two-seater sports car that you promised yourself.

No, nowadays the alternative – and increasingly the smart – choice is for wise investors to look at enhancing their property portfolio. The scenario goes something like this: homeowners who have been on the property ladder for a few years will, thanks to steadily rising prices, have built up a reasonable amount of equity in their house or flat. As such, especially where incomes have steadily risen, these fortunate individuals will have seen their mortgage payments plummet to a very affordable level.

Many of these householders, particularly in the South East, will be looking to buy an additional property instead of merely using the equity already accrued in their existing home to fund their next move. Now, this actually makes sense on a couple of levels especially as, despite the occasional peak and trough, UK property prices have shown, and will continue to show, a strong upward trend for the indefinite future.

Firstly, provided that you are sensible about the type of property you choose and the area that it’s in, the rental income available from the property will generally exceed the cost of any mortgage. Certainly on an annual basis the range of discounted rate mortgages currently on offer make it even more attractive to buy a property for the purpose of renting it out. And don’t forget that even if the net rental income only just covers the mortgage cost, you’ll still be quids in after a few years when you take into account the likely rise in property values over this period.

Secondly, if you buy an additional property, particularly as an investment, you can make your own decision as to whether you’d rather live in your existing home or the new one. In fact, mortgage schemes now exist that will enable you to acquire a second property without too much difficulty. And, all things considered, these new entrants help you realise the dream of funding your future through your own property-based empire.

For home owners looking to rent out their existing properties while purchasing a new home, most lenders used to deduct the amount that you had already borrowed from the amount available on the new property. The implication was that you could never exceed a standard ceiling for your mortgage borrowings, no matter how many properties you had. But, more recently, as mortgagees have sought to jump on the buy-to-let bandwagon, this line of thinking has gone by the wayside.  

Nowadays many banks and building societies will take a pragmatic view of your mortgage borrowings, simply by looking at the cost of your existing borrowings over twelve months and treating them as equivalent to a credit agreement. In other words the total cost of the mortgage on your initial property is viewed in exactly the same way as your credit card repayments or bank loan. All that’s needed is confirmation from an ARLA-accredited lettings agent of the value of the likely rental income available from the property. The lender should be happy to accept the mortgage application on the new home concurrent with the existing mortgage. Even more appealing is the fact that many lenders don’t even need proof that the property is actually being let out.

There is another big advantage to this new flexible attitude toward buy-to-lets. In many situations, especially where the property being purchased is a new build, there is a lot of pressure on the buyer to exchange contracts and complete at very short notice. Quite apart from the strain that this places on the conveyancing process, such a tight deadline often means that buyers will find it difficult, if not impossible, to find a purchaser for their own property. Of course it helps in these situations to know that many brokers and lenders can turn around a mortgage application – and issue a formal offer – in twelve days or less. But this still doesn’t help the borrower to find a buyer for his or her existing home.

Thankfully, the buy-to-let scenario is equally applicable to this sort of situation. As such, it allows the buyer to complete their purchase of the new build property while waiting to sell their existing home. And, what’s more, the scheme even allows you to take a theoretical 95 per cent loan up to £150,000 and only requires a 10 per cent deposit above that figure.

But is there still a market for buy-to-let properties? Certainly within affluent urban areas, and especially inside the M25 zone, there are large numbers of young professional people who have a good income but minimal savings. These people are generally at a disadvantage in their quest for property ownership, as they will often struggle to afford a deposit on a reasonable property. However, this doesn’t deter such people from wanting to live in a nice location. So there is a strong demand for good quality rented accommodation.

Because lenders are now happy to look at rental income rather than just salary, the buy-to-let market is starting to move away from the sort of properties that were traditionally occupied by those with a lower income. In fact, the market dynamic has shifted almost completely towards professionals on short-term contracts, typically a six-month shorthold agreement.

Even more exciting than the prospect of becoming your own property mogul is the fact that being a landlord nowadays can also mean a virtually trouble-free existence. Plenty of management companies will look after rent collection – and even maintenance and repairs – for an eight per cent to 15 per cent management fee. For the higher figure, many will even offer a guaranteed rental income between tenancies through re-insurance schemes. And if the property bug bites you even harder, remember that lenders nowadays will lend up to £1 million, provided that your rental income will cover the repayments on this.

So whether you are looking at a second property as a temporary bridging vehicle, or even if you fancy becoming the next Duke of Westminster, there really is something for everyone in the buy-to-let market. And that has got to be the best news in a long time for beleaguered pension holders.

The old adage ‘money makes money’ is never truer than in the case of house builders Octagon, as Karen Keeman discovers after meeting the company’s marketing manager.

Those lucky enough to be already on the property ladder will know that bricks and mortar are a great investment. In buoyant areas such as London and the South East, property is providing the answer to the lack of confidence in stocks and shares.

Over the last few years, the capital growth rate has been phenomenal, with the top end of the market enjoying the biggest price hikes. House builder Octagon is renowned for building prestigious detached houses and apartments in prime town and country locations so it is no surprise that prices for their homes have increased dramatically. At the company’s Ellerton House development in Bryanston Square W1, an apartment sold in late 1999 for £720,000. Just 12 months later, estate agents Kay and Co sold the property for £908,000. In Oxshott in Surrey, a house built by Octagon four years ago selling for £1.25 million was recently re-valued by Knight Frank to the tune of £3 million.
 
‘We charge about 15 per cent more than other house builders because we are offering a home with all the added extras. We provide you with more square feet of living space than you actually need,‘ says David Smith, Octagon’s group marketing and PR manager. ‘The top end of the market is still performing well – in fact, this is our seventh year of profit and good markets in general.’

David Smith on the Octagon X-factor 

Security and privacy are important issues. We install electronically controlled gates and various other safety fixtures as standard.

Location – we reject lots of land before we buy it because we know that the right location will pay dividends for us, and our future residents.
Kitchens – very large and linked to a living area with an adjoining family room as well as an additional playroom/office.
Bonus rooms – a flexible room, which can be used for any number of purposes.
Triple garages – a popular one with dads who don’t want to compromise on space when the children learn to drive.
Big hallways – although this space could be used for a more functional purpose, we believe in creating the right impression from the moment you walk in the home.
Fitted studies – the ideal home office wired up for all the latest hi-tech communication systems.
Bathrooms – luxurious and relaxing with marble floors, Jacuzzi and double size showers.
Dressing rooms – plenty of storage space with these walk-in dressing rooms.  

Where to buy

Shepperton, Surrey

Churchfield Place comprises 11 houses, each with four-bedrooms. Prices range from £545,000 to £650,000. Call 01932 230033.

Walton-on-Thames, Surrey

Manorcroft House comprises four two-bedroom apartments and one three-bedroom penthouse with private parking. Prices range from £375,000 to £650,000. Call 01932 35306.

Hampstead, London

Manor Heights comprises 16 large town houses close to the Heath. The four-bedroom, three-bathroom homes start at £1.25 million. Apartments will be launched next year. Call 020 8458 7311.

Hadley Wood, Hertfordshire

Only two large detached houses remain at Camlet Way, each with five bedrooms. Prices start at £1.75 million. Call 020 8449 3383.

Soaring house prices has meant that it is harder than ever for young people to get on the property ladder. However, when they do, their demands are greater and expectations higher.

According to the Halifax, the UK’s biggest mortgage lender, the average age at which Britons buy their first property has risen dramatically in the last three decades. With annual house price inflation at 16.9 per cent, fewer young people are able to get a foot on the property ladder. The problem is particularly pronounced in London and the South East with the average house price in Greater London now five times the average wage.

As a result, the average age for first-time buyer is now 34, a rise of seven years since 1995. House builder Rialto Homes believe that although the age is increasing, these typically young professionals with good jobs and sophisticated tastes are pushing up the expectations from the starter homes market. Labelled as ‘virties’ (virtually 30) these buyers are demanding contemporary design, good finishes and fashionable kitchens and bathrooms.

With the young professional single or couple in mind, Rialto has launched Grafton Gate in Bedford. The development of 95 one- and two-bedroom apartments, two-bedroom houses and three-bedroom town houses is conveniently located close to the town, which offers a host of attractions for young people including pubs, restaurants and high street shops.

Designed with a range of internal layouts, many of the homes feature flexible accommodation and open-plan living – something that busy virties demand. The development is also suited for commuters to London with nearby St John’s railway station providing a 50-minute service to Kings Cross. Prices at Grafton Gate start at just £65,750. Call 01234 327373.

After 15 years of living with her grandparents, actress Jane Horn decided that she really needed her own space. Having appeared in various West End shows including Les Miserables and Starlight Express, it was important to Jane to be within commuting distance of the capital.

Just a few minutes walk from the Docklands Light Railway, Jane’s new apartment at Barratt’s Central House development in Stratford, east London, provides an affordable home within easy reach of work. Typical of the virties profile, Jane also wanted an elegant home with some added extras. ‘I loved the style of the building and the fact that there will be a gym and sauna in the basement.’

All one-bedroom apartments are sold but two-bedroom apartments start at £199,995. Call 020 8522 1008.

Where to buy

Chelmsford, Essex

Telford Homes is launching their latest development at Wharf Road. Little Docklands comprises 18 one- and two-bedroom apartments featuring state-of-the-art kitchens, stylish bathrooms and unusually shaped balconies. To register your interest call 0870 872 0987.

Woolwich, London

With property prices up to 50 per cent cheaper than in the City, Woolwich has been identified as a new London hot spot. Fairview New Homes has launched Galleons Lock, a development of 55 houses and 667 apartments built in a contemporary style. Prices start at £149,000. Call 020 8511 7895.

Tunbridge Wells, Kent

At the Richard Beau Nash apartments, purchasers have the chance to own a period-style home with contemporary interiors. The Georgian-style building has features such as deep bay windows, tall sash-style casements and wrought iron gates. Inside the 26 new apartments, open-plan living areas and fitted kitchens give a contemporary feel. Prices start at £150,000. Call Copthorn Homes on 01892 530161.

In the world of home loans, it pays to stay informed. Steve Mansfield, Co-Director of Mortgage Talk Direct looks at some of the most commonly asked mortgage questions

Will interest rates increase in the short term?

An interesting one, this, as there has been much speculation in the press recently about interest rates in general, and consumer spending in particular. Because at the moment we have a two-tier economy, property prices are still forging ahead while manufacturing is struggling. This means that any increase in interest rates will have a negative effect on the strength of the economy as a whole. It also results in British exports being more expensive abroad, because of the strength of the pound.

However, many pundits agree that consumer debt will continue to spiral unless interest rates are increased in the short term. It’s always dangerous to speculate, but my view is that rates may well rise a little during this year but flatten out in the medium term. After all, Gordon Brown has to keep one eye on the convergence criteria for the euro.

Is it better to fix or discount at the moment?

Less than twelve months ago, fixed rates were all the rage. But with speculation rife on interest rate changes, many lenders have withdrawn the most attractive fixed rate deals and replaced them with shorter term discounted offers.

Because the market has now swung in favour of discounted mortgages, if you shop around you can get a two- or even three-year discount at a much more attractive level than the fixed rates currently on offer. Even if interest rates rise by, say, one per cent, provided that you choose your discounted scheme wisely, the rate that you will be paying will still be lower than the fixed rates that are available.

General industry sentiment at present is to buy a mortgage product for the short term and, if interest rates or circumstances change in a couple of years, shop around for what’s on offer at the time. That way you’ll be guaranteed to get the best of both worlds. But remember, be careful of lenders that offer good rates but charge swingeing penalties to redeem after the incentive period has ended.

Can I overpay on my mortgage?

The days have long since passed when a mortgage was for a fixed twenty-five year term, and borrowers stayed with their building society for life. Nowadays, thanks to intense competition in the marketplace, mortgages are more flexible than ever before.

Many borrowers like to have some payment flexibility built into their mortgage. This means that should they receive a bonus or unexpected windfall – or even if they are feeling flush that month – they can pay an additional amount to their lender, and hence reduce not only their mortgage debt but the amount of interest they are paying on the debt.

Many lenders will allow their borrowers to pay up to 10 per cent of their outstanding balance as an overpayment in any one year. Some lenders will go even further. Again, however, remember that if you redeem your mortgage before a fixed rate or discount incentive period has finished you are likely to be penalised.

Will my mortgage by portable?

Because personal circumstances can unexpectedly change, many homeowners find themselves having to move house or flat, even though they may only recently have taken out their mortgage. Under normal circumstances this would require them to redeem their existing mortgage and take out a totally new scheme on their new property. From a lender’s perspective, the bank or building society would then run the risk of losing the borrower as a client.

To counteract this situation, lenders have devised a scheme whereby the individual mortgage product can be transferred to another property. Obviously, the original loan against the first property must be paid off in full, with fresh security provided by the new property.

How is the interest calculated on my mortgage?

Historically, mortgage interest was calculated on an annual basis. In the case of repayment mortgages, where both the interest and capital are gradually being paid by the borrower’s monthly repayments, this meant that the capital amount owing was only reduced once a year. In a sense, this resulted in borrowers being charged interest on capital amounts that they had already repaid.

Over the last decade or so, lenders have introduced a daily interest calculation so that borrowers are no longer penalised in this way. The method of calculation used by a particular lender is usually shown in their product information sheet.

What happens if I change jobs?

Thankfully, if you change jobs during the term of your mortgage, this will make no difference to your lender. The key factor to consider is to make sure that you can afford to make repayments on the loan, as it is secured on your property.

If you have changed jobs just before you make a mortgage application – or even during the period while your application is progressing – the lender will, not surprisingly, want to make sure that you have continuity of employment. Because of this you will need to discuss, either directly or through your broker, the individual lender’s attitude to situations such as probationary periods.

If you're interested in investing in property you'll need to study the form first. Paula John, Editor of Your Mortgage magazine, gives some tips on how to become a successful landlord

Returns on buy-to-let property can be very attractive. But there is a lot more to being a landlord than sitting back and waiting for the cheques to roll in every month. In fact if you don't do your homework, investing in property could end up costing you money rather than earning it. So before you undertake this type of investment there are number of things that you need to consider.

Choose carefully

Make sure the property you buy is in an area that is well suited to letting. Your property will be easier to rent out if it is near a large city and is close to local amenities with good transport links. Consult local estate agents and letting agents to determine the supply and demand of rental properties in the area. Advertisements in local newspapers will also give you an idea of how much rent you can expect to receive.

Do your sums

Never underestimate the initial cost of investing in property. Most lenders will only allow you to borrow 80 per cent of the value of the property you want so you'll need to fund a substantial deposit as well as solicitors' fees and other home buying expenses. Most lenders will require your expected rental income to equal at least 125 per cent of the monthly mortgage payment so it's vital that you do your sums first. It is also your responsibility to pay for the maintenance of the property. Furthermore, most lenders recommend that you put some money aside in case something unexpected happens. If there is ever a period where you are between tenants, stop receiving rental income, lose your job or the tenants from hell have set fire to your house, you'll be glad you did.

A landlord's life for you?

Investing in property may not be a stroll in the park – but the more preparation you do before you start out the more likely it will be that your investment will yield financial rewards later. However, remember that any profit you make when you sell the property will be subject to Capital Gains Tax (CGT), which is charged at the highest rate of income tax. (To reduce your costs UCB Home Loans recommends putting the property in joint names to make the most of two personal tax allowances.) You also pay tax on your rental income although mortgage payments are tax deductible. Of course, property prices can go down as well as up but John Crossley, head of mortgages and lettings at Bradford & Bingley, believes that potential landlords shouldn't be too concerned about any short-term slowdown in the housing market. He says: ‘Buy-to-let is a long-term investment and over a period of 10-15 years you would expect the property you had bought to rise considerably in value. If prices do slip a little, now could actually be a good time to enter the buy-to-let market.’

In an ideal property-buying world, once a buyer has made an offer on a property and the vendor has accepted it, all that’s left to do it tie up loose ends. But what happens when you’ve tied up hundreds of pounds in buying a property only to find that the vendor has had a better offer – and you’re the one at a loose end? Gazumping is an unfortunate property phenomenon, to put it mildly. And in the current climate it’s making a comeback.

Much of the stress of buying a home stems from the fact that a firm offer isn’t always given a firm acceptance. There are many things that can go wrong between the offer stage and exchange of contracts (when both parties are legally bound to go through with the transaction at the agreed price). Gazumping is one of the more frightening of the possible pitfalls. In these days when property prices are rising so rapidly -- and property is so scarce – the time between acceptance of offer and exchange of contracts is long enough to leave the vendor feeling, as exchange approaches, that he could get substantially more for his property than the agreement will net. Many buyers are finding that their vendors, often people with whom they’ve built up a friendly rapport, are more than prepared to suddenly take their property ‘off the market’ and put it back on at a much higher price (or play a waiting game while prices rise further).

Gazumping occurs when a vendor, having accepted an offer on a property, then accepts a better offer from another buyer. There is no provision in English property law to rid the system of what many consider an unfair practice. And market conditions such as we are experiencing now, when there are too many buyers chasing too few properties, are the perfect breeding ground for the gazumping virus – rather like particularly wintry weather brings fears of a ‘flu epidemic.

However, there have been methods used to ‘vaccinate’ particular transactions against susceptibility to gazumping. The Law Society’s Conveyancing Standing Committee has recommended that the vendor and buyer enter into a ‘pre-contract deposit agreement’ in which each side puts up a preliminary deposit of 1.5 per cent of the purchase price in a fund to be held by a stakeholder, with an agreement to exchange contracts within four weeks. If one party pulls out of the sale without a good reason (the survey may render the vendor’s position untenable, meaning that in effect the property is not what the buyer put the offer on, for example) both deposits are released to the other party.

In a less formal method used by certain solicitors, the buyer pays a ‘pre-deposit’ – usually about £1,000 – which grants him the exclusive right to buy the property and sets a time limit by which he must buy. The pre-deposit is lost only if the purchase doesn’t proceed within the stated time frame.

Both methods are creative ways to counteract a climate in which the trust which is crucial to a property sale is under threat. There are two sides to the gazumping argument – and of course which side you’re on depends simply on which side of the property transaction you are on. Stories of buyers throwing money away on surveys are compelling – and there must be a better way than this system which allows a buyer to get most of the way down the yellow brick road before being told that the Wizard is simply a cypher on a screen. But vendors also feel they need proof that a buyer is serious and has the funds to go through with the purchase – and this proof, they say, is often only be available at that late stage.

Ways for buyers to avoid gazumping

·    Have your financing in place and appoint a solicitor before you make an offer
·    Base your offer on knowledge of what properties are selling for in that area at the time – if the market is hot you may have to offer the asking price.
·    Don’t be shy about  communicating with your solicitor – it’s important that he or she moves with speed.
·    Get surveys done as quickly as possible – this is one of the few areas of purchasing in which you can make a real difference time-wise.
·    Communicate with the vendor or agent – this lets them know you’re serious about the property and can be a way of finding out if there are other buyers interested.
·    Be flexible if the vendor is adamant about what is included in the sale or about a certain moving date.

High ceilings, unusual layouts and large room sizes are among the features that make Edwardian property so popular. Karen Keeman looks at a stunning refurbishment scheme in Epsom. 

Although his reign was only brief, property built during the time of Edward VII (1901-1910) has proved to be among the most characteristic architecture in the UK today. Edwardian houses are simpler and much more beautiful than their Victorian cousins, thus making them very much desired.

Conversions from this era are incredibly popular, attracting buyers who want to benefit from large rooms, period windows, high ceilings and unusual layouts. Features including gables, brickwork and simple, stately exteriors set the homes apart from the crowd.

In the market town of Epsom, a former Edwardian hospital estate is being transformed to provide 104 one-, two-, three- and four-bedroom apartments. The sensitive refurbishment scheme, by developers Bryant Homes and Alfred McAlpine, uses the latest building techniques to return the Edwardian architecture to its former splendour.

The development, named Clarendon Hall, will sit in a 308-acre site including the charming art deco Clock Tower. ‘Clarendon Hall is a premium example of Bryant Homes’ skill and technical expertise in conversion and restoration,’ says Malcolm Pink, managing director of Bryant Homes (Southern). ‘Clarendon Hall is a major triumph in the restoration of an old world that had become neglected.’

Due to the scale of the conversion, many apartments have charming and quirky details like long hallways, huge store cupboards, kitchen pantries, extra large master bedrooms and triple-aspect reception room with panelled bay windows. These unusual features are drawing a wide variety of buyers who are enthralled with its architectural charms.

‘Professional commuter couples see Clarendon Hall as an escape from the city,’ says Pink. ‘Other keen buyers are in need of downsizing to a quiet place to be close to their families. Some buyers are early retirees who are selling the family home, living abroad for six months of the year and in need of a convenient attractive home base.’

Epsom lies midway between Sutton and Leatherhead, off the A24 and close to Junction nine of the M25. The development is ideally placed to commute to Victoria and Waterloo, with a train time of approximately 35 minutes.

All residents at Clarendon Hall will be able to enjoy the secluded wooded grounds surrounding the development, and many apartments look out on the flowing trees brought back from the four corners of the British Empire including India. Some ground floor apartments also have patio doors and private terraces.

Current guide prices at Clarendon Hall range from £160,000 for a one-bedroom ground floor apartment to £370,000 for a three-bedroom, two-bathroom duplex apartment with garage and parking space. Call the marketing suite on 01372 743344 for more information.

Q I’m about to buy a property and was surprised when my solicitor mentioned something called an environmental report. It shows the property is in an area with a high risk of subsidence. I am tempted to ignore this as I know the house is located where London clay is prevalent and I believe this is what concerns my solicitor. What should I do?

A The Environment Agency of England and Wales, local and other authorities have begun to issue environmental reports to give buyers and sellers information about  land contamination, subsidence, flooding, industrial land use or other potential problems that may affect a property.

As you seem to realise, the environmental report’s findings don’t necessarily mean the property you hope to buy is itself in danger of subsiding. These reports usually cover an area, often a postcode sector, typically 250 to 500 metres around the property in question.

However, any potential dangers revealed by searches or enquiries must be looked into thoroughly so that you know as much as possible about what you’re getting into. It would be worth asking your surveyor whether the property has suffered foundation movement in the past. You should also arrange for a consulting engineer or structural surveyor to look into the possibility of subsidence and produce a report. This may delay the transaction and will probably cost you upwards of £700, but could avoid future problems. Additionally, you should explain the problem to whoever is to arrange the buildings insurance for you. It’s essential you obtain written confirmation from the insurer indicating they are aware of the threat and agree to continue cover.

If it looks like the property has suffered from subsidence or may do so in the future, the usual remedy is underpinning. If you still wish to proceed with the purchase, you should consider using this as a bargaining tool in seeking a price reduction.

Above all, make sure you take all the necessary precautions before and not after exchange of contracts, when it will be too late.

Q I recently decided to put a maisonette I own on the market. I bought it some years ago as a letting investment. My estate agent advises me the property is suffering from physical defects which may put some buyers off. These include damp walls, faulty electrical wiring, loose plastering and woodworm. Do I really have to sort these matters out before I can sell the property?

A Not necessarily – physical imperfections do not have to be remedied in order to put a property on the market. However, the problems you mention will almost certainly affect the ultimate selling price and possibly also the speed at which you can sell.

The law puts the onus on buyers to discover for themselves what kind of condition the property is in. You do have a duty to disclose hidden defects you are aware of, but it’s clear that you have been straightforward with the selling agents.

What you choose to do really depends on how quickly you want to sell the property. Consult at least two estate agents to compare the market value of the property in its present state with how much it might fetch in a better state of repair. This will help you to decide whether it’s more economical to sell the property in its present condition or make the repairs. The choice is yours.

There’s more to decorating a room than meets the eye. For inspiration and advice, take a look at show homes to get a host of ideas from traditional right through to retro chic.

When programmes such as Changing Rooms rule the airwaves, it is no wonder everyone thinks they can be an interior designer. But creating the right look – whether it is contemporary or traditional – is not as easy as the likes of Laurence Llewelyn-Bowen would have us believe.

Stacey Walker, a designer from Alexander James, believes that designing a home is all about stamping your own personality onto the property. ‘Decide what colours you want to use. Do you want to go for a cool, calm look using whites and blues or do you prefer pinks and purples that are a bit warmer,’ says Walker. ‘When considering furniture, the tip is to take your time and never overfill the room. If you can, go and measure up the furniture then draw a floor plan and move things around on paper to get the most out of the space available.’

Creating the look at Sunley Homes’ Port Regent development in Sovereign Harbour, Eastbourne, the team at Alexander James designed a very young and trendy theme using lots of warm colours. The town house show home has a calm aquamarine theme with rattan weave carpets, while the show apartment features the sharp lines of chrome, metal and glass. Customers can also upgrade via Sunley Select and choose Shaker-style moulded doors, matching ironmongery, sleek kitchen worktops and ceramic floor tiling.

The 69 new homes built on the West Harbour at Port Regent start at £125,000 for a two-bedroom apartment rising to £174,950 for a four-bedroom town house. Call Sunley on freephone 0800 085 2222 for more information.

One of the many advantages of buying a new home is that you don’t have to put up with anyone else’s taste. Bringing in the experts to personalise your space to suit your lifestyle and needs is a hassle-free way of creating your dream home. Developers Metropolis and Bryant Homes have created packages to allow the customer a chance to create the perfect home.

At Metropolis the customer can choose from the showrooms of cutting-edge kitchens and bathrooms to find everything from flooring and fittings, as well as consult the interior design team to get a home specifically tailored to the individual’s unique requirements. Call Metropolis on 020 7580 5563.

Bryant Design allows you to turn a standard house type into a home. The customer can browse through the on line catalogue to get a feel for what Bryant can do and sift through the range of products to decide what best suits. Call Bryant Homes on 0121 711 1212.