Buying, selling and letting - Wednesday, October 23, 2002

Unpaid rent

It is every landlord’s worst nightmare to discover that the rent has not been paid. The law at present often appears to protect only tenants and allows them to stay ‘rent-free’ in a landlord’s property for months at a time whilst the landlord follows a maze of rules and regulations to get possession lawfully.
For commercial landlords this is expensive and time-consuming. However, for the increasing number of private landlords, who may only own one property which they rent out to just cover the mortgage and other outgoings on the property, it can be disastrous.

We at Sykes Anderson believe we have found the easiest way to guide landlords through the quickest route to possession. We have already shared our expertise with the Small Landlord’s Association, who, from the flood of enquiries we have had, appear to have found our information very useful. Please see our brief Guide to Obtaining Possession

We offer a variety of ways in which to deal with the costs of gaining possession. If you would like us simply to deal with the whole matter from the beginning to end, with the minimal input from yourself, we are happy to provide our full, private service at our published hourly rates, although we are always happy to give an estimate of the likely overall cost.

Alternatively, if you feel confident you can do most of the legwork yourself, but would like to be reassured that at crucial times you are doing the right thing, or want assistance in, for example, drafting the court proceedings, our Pay As You Sue service will suit you. At all times you will appear to be acting in person. However, we can be called upon at any stage to help out and will agree a fixed fee with you beforehand. Here are a few examples of the fixed fees we can offer:

Single Consultation to Advise - £75
Drafting & Service of Notice Seeking Possession - £150
(includes providing an affidavit of service)
Drafting Possession Proceedings - £150
All prices exclude VAT at the prevailing rate.
If you would like any more information about this area of law, please contact David Newton on 0207 702 1914.

All prospective instructions are subject to acceptance by us and to our standard terms and conditions.
A guide to gaining possession of residential tenancies
Below are the basic steps required to obtain possession. These will allow you to see how much assistance you are likely to need, and will ensure that you do not fall foul of the very strict rules and regulations that can often simply send you right back to the start of your proceedings just when you think you have almost won.

STEP1

Decide what type of tenancy your tenants have. Most residential tenancies entered into after 28th February 1997 will be Assured Shorthold Tenancies. If you are unsure, you will need to take legal advice.
Warning: Just because an agreement calls itself a particular type of tenancy, it does not always mean that it definitely is that type of tenancy in practice!

STEP 2

Draft the correct Notice seeking possession to serve on the tenants. There are two main types of notice – s.21 and s.8 – both named after the appropriate sections of the Housing Act 1988 which describe how and when they can be used.

Briefly, s.21 notice is for assured shorthold tenancies, whose minimum term has expired, and which you now wish to end – even if there are no rent arrears or problems with the tenants. The minimum notice period is two months under this notice.

S.8 notices are used for Assured Tenancies (which are not shorthold), and if there are rent arrears or other problems with the tenants. The minimum notice is two weeks under this notice, but certain factors must be met to be able to use such a short period. Otherwise, it is two months. This notice needs to include verbatim, the relevant statutory grounds it relies upon for possession.
Both notices must be completed correctly, giving the date they are served and the date by which the tenant must vacate the premises, or court proceedings will be started.
Warning: In some circumstances, you will need to calculate your notice period to end on the last day of a rental period – read the notes on the notice carefully!

STEP 3

Serve your notice on all tenants. This technically can be sent by first class post to the tenants, but if they claim they did not receive it, you will not be able to prove service. Therefore always serve the document personally on the tenants by handing it to them, or by putting it through the letterbox of the property they are renting. You can do this yourself, but again, if the tenants maintain you did not do this, it will be your word against theirs. Therefore, either use a professional Process Server, or a third party. They will then need to provide you with an affidavit of service. This is a sworn document explaining when and how service of the notice was effected and annexing a copy of the document that was served.

STEP 4

Once the notice period under the Notice has expired, you will need to check whether the tenants have vacated voluntarily. Some may simply disappear with the premises being left empty, and others will remain living there. If the tenants are still in the property, there is nothing you can do, except start court action.
Even if the tenants themselves are not at the property, if their belongings are still there you will need to act cautiously. This may mean they have simply gone away for a few days and will be returning. In such circumstances, you cannot take possession of the property at this stage – it will still be considered an unlawful eviction. If in any doubt, leave matters for a few days and make a return visit, or ask the neighbours.
Warning: Be careful not to appear to be harassing the tenants. Take a third party along as a witness, and always telephone the property before you visit.

STEP 5

If you need to start court proceedings, you will need to decide which route you wish to take.
Accelerated Possession Proceedings allow you to obtain a possession order without a court hearing, providing that the tenants do not defend the action, and that you have provided all the relevant information and documentation with your sworn affidavit which starts the action. In theory, if all goes according to plan this route should give you a possession order within two months of the proceedings being issued, but courts vary in their turn around time.

Warning: You cannot claim an order for rent arrears through this route. However, if the tenants are likely to disappear once they are forced to leave, or do not work, such an order would be worthless in any event. The alternative is to commence a separate debt action against the tenants once they have vacated the property, but you will need an address to serve such proceedings on them.
The normal Possession Proceedings route involves providing Particulars of Claim to start the action, but these do not need to be sworn and no documents need to be provided at the outset. There will be a hearing listed to deal with the matter. However, if the tenants do not defend the action, a possession order can still be made fairly quickly. Again, timing varies a lot between courts.
You have no choice on the court you wish to use. Only one County Court will have jurisdiction for your property. This will be the court for the district in which the property is located. If in doubt, call the nearest court  and check with them.

STEP 6

Once you have obtained your court order, the tenants should leave on the date given in that order. However, many do not. You will then need to take enforcement action.
Please refer to STEP 4 as to how to ensure the tenants have actually vacated. If you are in any doubt, it is best to take enforcement action.
You will need to apply to the same court that made the possession order for a Warrant of Possession.

The Royal Bank of Scotland has outlined the savings that home owners can make by taking advantage of the overpayment facility on a flexible mortgage. By making even small overpayments it is possible to cut down on the length of the loan, thereby making very substantial savings.

With their Flexible Choice mortgage, like all of the Royal Bank of Scotland’s home loan products, interest is calculated on a daily basis, making the effect of adding a little extra to the monthly mortgage payment startling. ‘For less than the cost of a daily cup of coffee, half a pint of beer or scratch-card, people with a mortgage can make substantial savings in both time and money and enjoy a long-term rate which undercuts every other bank’s SVR,’ says Peter Wood, product director of mortgages at RBS. An overpayment of just £1 a day on the Flexible Choice could knock £8,545 in interest – and three years – off a £75,000 25-year mortgage, says Wood.

Payment holidays are also an option on this mortgage. Get more information on Flexible Choice and other Royal Bank of Scotland mortgage products at www.rbs.co.uk.

Northern Rock announces new 10- and 15-year fixed rate deals at a rate of 5.99 per cent. After the fixed period the rate reverts to the lender’s variable mortgage base rate. More details will become available shortly. Ring 0845 601 1581 or visit www northernrock.co.uk to apply.

UCB Home Loans, Nationwide's specialist self-certification lender, has launched a new remortgage package, which features free processing, including a free valuation and cashback of £250. It allows borrowers to choose between a fixed or tracker mortgage at the same rate of 4.99 per cent.

The remortgage offer is being launched at a time when remortgaging is at its highest level so far this year, according to latest figures from the Council of Mortgage Lenders. The package is available on the UCB Home Loans’ FlexiPlus two-year tracker mortgage and on the two-year fixed rate loan. There are no extended tie-ins and the remortgage deal is available for a limited period. Find out more about these products at www.ucbhomeloans.co.uk.

Remortgaging seems like an easy way to save large amounts of money. But it pays to be aware of the potential pitfalls before you sign on the dotted line, warns Andrew Stuart of Your Mortgage magazine

Remortgaging is catching on. Increasingly, borrowers are realising that while they owe their existing lender a large sum of money, they don’t owe them a debt of loyalty, and they may be able to get a better rate by moving their mortgage elsewhere.

But borrowers need to work out their sums and consider the full implications before they remortgage. ‘It is essential to make sure that remortgaging is definitely worth your while,’ warns Debbie Staveley of Bristol & West. ‘You need to ask yourself “why am I considering remortgaging?”, and then measure the potential savings against all the actual and expected costs involved.

Remortgaging could save you thousands of pounds, but you could find that you lock yourself into an expensive and wholly unsuitable deal unless you are fully aware of all the potential remortgage pitfalls.

Redemption costs
If you have an existing fixed, capped or discounted rate mortgage, or if you received a substantial cashback when you took your current mortgage, there is a real chance that an early redemption penalty will apply on your loan.

Typically, you will have to pay your existing lender a number of months’ interest  should you cash in the loan before the end of the period in which you are enjoying the benefits. And watch out for overhanging redemption charges, which may be levied years after the fixed, capped or discounted rate period has run out. If you had a cashback, then you will be expected to repay some, if not all, of the money you received if you move your mortgage elsewhere.

It is important to work out the redemption costs carefully, because even if you move to a new lower rate, it may be many years before you receive any real benefit. Remember, it may make sense to wait until the redemption penalty period has passed before you switch your home loan.

New penalties
It may cost you next to nothing to change your mortgage if your current loan has no early redemption charges. However, be careful when selecting a new mortgage with a low interest rate, as the price you may have to pay in the future for the lender’s initial generosity could be early redemption penalties applied to the new loan.

It pays to shop around, as some lenders don’t charge any redemption penalties at all, even on fixed and discounted rate home loans.

Of course, you might live happily ever after with your new lender and never pay a redemption penalty. But you need to ask yourself whether you will really stick with the new lender for the remainder of your mortgage life.

Out of the frying pan
In a fiercely competitive market, nearly every lender is keen to attract remortgage business – they are, after all, probably losing many of their own customers to other borrower-hungry lenders and need to balance their books. And most lenders are prepared to offer a range of deep discounts, low fixed and competitive capped rates which match up to the deals they offer home buyers in order to attract remortage customers.

It is easy to believe that the grass is greener and switch to a new lender offering low rates and the promise of tip-top customer service. However, you should bear in mind why you are currently considering changing your home loan: you are probably looking for a better deal than your current loan. Even if your new lender currently offers an attractive interest rate, can you be sure whether they will continue to do so in the future?

Look at the lender’s standard variable rate (SVR), which should provide a measure of its current competitiveness - a low rate should mean that it is looking after its existing borrowers as well as new customers. And ask for evidence of how the lender’s SVR has measured up to other lenders’ SVRs over, say, the last five years.

If the lender has been operating for only a few years, remember it may be ‘buying in’ business and won’t be able to maintain such a competitive rate in the future. Remember, there ought to be substantial payment savings or special benefits attached to the new loan if it is to be worth remortgaging to a new lender.

Loss of benefits
If you took out your current mortgage before 2 October 1995, you should qualify for much more generous help with your mortgage payments from the state should you become unable to work than if your home loan was taken at a later date.

For those who took out a mortgage prior to that date, the state income support to qualifying borrowers kicks in after eight weeks of claiming, and is worth 50 per cent of the interest for the next 18 weeks and 100 per cent after that date. For mortgages taken out after 2 October 1995, the borrower gets no help with interest payments for the first nine months of making a claim.

A borrower whose existing mortgage arrangement predates 2 October 1995 risks losing their right to the more generous state income support terms should they remortgage for a larger loan from a new lender.

Less is more
Traditonally, remortgages were associated with debt consolidation – the reorganisation of a messy state of financial affairs, rather than a sensible and proactive way to make more of your money. However, plenty of people are still attracted to sorting their finances out and transferring debts with high rates of interest to a home loan, since a mortgage is the cheapest way to borrow.

For example, the annual percentage rate (APR) charged on some credit cards can be over three times the mortgage rate, and plastic is even more expensive after discounts are applied to the home loan. Similarly, personal loans can work out twice as expensive as mortgage rates. So if you have racked up a large credit card bill and you have a loan, it can make sense to roll these up into a mortgage. You might want to borrow a bit extra while you are about it to pay for your summer holiday, for example. And you could find that the monthly payments for your remortgage are less than the total outgoings you pay on all your separate debts.

But remember that in the long run you may pay considerably more for your remortgage than you would by keeping all your debts separate. This is because loans, for example, are structured to be repaid over much shorter period than mortgages – typically over three to five years. And the high interest charged on credit cards ought to prove a strong enough incentive to clear the debt sooner rather than later.

If you’re self-employed and have tried to get a mortgage, you’ll be aware that it’s not always easy. But things are changing. Paula John of Your Mortgage magazine looks at a market that lenders are finally starting to take seriously

You may be coming up fast on the heels of Bill Gates, with a deposit the size of the Silicon Valley, but you could still have problems finding a mortgage if you are your own boss.
An estimated 3.2 million people in the UK qualify as self-employed. This figure includes freelancers and contract workers, as well as those who have set up their own business.
Traditionally, high street lenders have welcomed self-employed borrowers with less than open arms, if at all, while penalising them with higher interest rates.

But the good news is that growing numbers of self-employed workers in the UK and an increasingly competitive market mean there are more options for borrowers than ever before. So how do you find the mortgage you want?

Prove it

The first thing most lenders will ask for before agreeing to give you a self-employed mortgage is two to three years' worth of audited accounts. Not surprising when figures show most businesses that fail do so within the first two years of trading. Even freelance and contract workers are likely to be asked for proof of previous years' income, to help lenders assess whether they are in a good position to afford the monthly mortgage payments.

According to Jane Harrison at London & Country Mortgages, if you have evidence of your income over the last three years you should have no problem taking out a self-employed mortgage with most mainstream lenders, at 'standard' mortgage rates.

But even if you do have three years of audited accounts to hand there could be further obstacles in your path, preventing you getting the mortgage you want. For instance, a good accountant will minimise the tax liability on your income – sounds great, but it's a double-edged sword when it comes to taking out a mortgage. This is because it makes your business appear less profitable, which is not an attractive proposition for lenders looking for proof that you will pay back the mortgage without problems.

Self-assured

There is another option open to you. Self-certification mortgages allow you to certify your own income, by signing a document stating how much you earn. You do not need to provide audited accounts for the past two or three years – ideal for new business start-ups.
If you are already a homeowner expect to be asked to show the lender existing mortgage statements. Alternatively, first-time buyers will need rental references from their landlord.

There are a number of specialist lenders who cater especially for the self-certification market. These include Birmingham Midshires, Bristol & West, UCB Home Loans and Mortgage Express.

One of the advantages in dealing with specialist rather than mainstream lenders is that they are more likely to assess each mortgage application on its own merits rather than using standard selection criteria.

Self-interest

However, be aware that you will pay more for a self-certification mortgage than you would for a straightforward self-employed mortgage, because the potential risk to the lender is greater.
The amount of money that you can borrow, as a percentage of the value of the property – the loan-to-value (LTV) – is normally less than lenders will loan on standard mortgages.
The maximum LTV offered on most self-certification mortgages is 75 per cent, although some lenders, including Birmingham Midshires and UCB Home Loans, have a maximum LTV of 85 per cent.

Most lenders will lend up to 3.25 per cent of the stated or predicted single income on a
self-certification mortgage. They will also carry out 'affordability' calculations, comparing your income with your outgoings, to assess whether you can afford to repay the loan.

Self-aware

You don't have to be self-employed to take out a self-certification mortgage. Barrett believes self-certification mortgages are also ideal for people with a 'non-standard' income.
For those who are self-employed, Harrison strongly recommends that you do not stay in a self-certification mortgage "for too long".

Rest assured, even if you work for yourself, the number of self-employed and self-certification mortgage products are increasing steadily. Whatever you do, take time to look around. You may be self-employed and busy but it's worth being thorough when it comes to finding the best mortgage to suit your needs.

The property boom has turned everyone into Mystic Meg, with forecasts, amended forecasts, predictions and counter-predictions. But who is right? Paula John of Your Mortgage magazine looks beyond the property market’s fortune tellers

In the last decade, house prices on average have risen 150 per cent. This year alone, experts predict that they will grow by a further 20 per cent. Of course, everyone agrees that these red-hot figures are unsustainable, and that the market will cool off at some point. Indeed, we saw a slight cooling off in June, with activity in the market slowing and the number of new buyers falling. But the market remains buoyant and prices in many areas are still sky-high. The question is whether and when there will be a correction – or a crash? Reports are conflicting and confusing.

Mixed messages

According to Woolwich, the number of people expecting property values to increase fell from 64 per cent in May to 61 per cent in June. It suggests that the housing market is slowing of its own accord. Accountancy firm PricewaterhouseCoopers says that mild corrections are due in property hotspots.

At the same time FPD Savills, a leading property consultancy, claims that the house price boom could last for another three or four years across much of Britain. So who is to be believed? And what should prospective homebuyers be doing?

North-South divide

‘In the South East there is more supply coming into the market, as the buy-to-let boom comes to an end and landlords are starting to sell up,’ says David Bitner, director of mortgages at The MarketPlace. ‘So I believe that house price growth in the South East will be flat in 2003. The picture for the rest of the country is fairly positive. I think that, with poor stock market returns hitting employment in London, more and more people will start to move out of the capital. They may go back to a place they have worked before, to where they attended university or closer to family and friends, for example. The result will be upwards pressure on property prices outside the South East’

Do what’s right for you

Despite emphasis on different areas and influences, most experts appear to concur that there will not be a property price crash. A slowdown is due and price 'corrections' may hit London and maybe other areas of the South East first. But the huge growth in property values of recent years simply cannot continue. So regardless of where you are buying, and whether you're a first-time buyer or an existing owner considering taking on a bigger mortgage, do not make your decisions based on speculation about rising property prices.

Buy a property because you want to live in it and because you think it is really worth the price tag – and only if you could afford it if interest rates went up by two per cent. Living on the edge is all very well in some respects, but not if it risks losing the roof over your head.

Bring overcharged for anything makes us angry. So why should we overpay on our mortgage repayments? There is a good reason, says Paula John of Your Mortgage magazine

Since the arrival of the flexible loan from Australia about eight years ago, many people have realised that the old-style 25-year mortgage is of limited effectiveness at a time of rapid changes in employment patterns. Self-employment and contract working are more the norm for many of us, with the cosy days of the job-for-life culture now history.

The flexible mortgage aims to address these changes by allowing underpayments, payment holidays, borrow-back facilities and overpayments. Furthermore, truly flexible mortgages do not carry redemption penalties and, very importantly, they calculate interest daily. And it's this latter feature that makes overpaying such an attractive proposition for flexible customers.
 
So how can overpaying benefit borrowers? With traditional annual interest calculation, things move very slowly at the lender's end over the course of a year. If you paid extra – in January, for example – the interest will be charged on your outstanding capital debt regardless of the extra money. This means you could be paying interest for 11 months on an amount that is more than you technically owe. Your overpayment won't be taken into account until the annual interest calculation takes place, and that's the end of the matter. But if you have a flexible deal and pay the extra in January, the interest on your loan is calculated daily, so your outstanding debt will immediately be reduced along with the corresponding interest.

The way that you do it

Now that the advantages of daily interest calculation are clear, how can you go about overpaying on a flexible mortgage? The simplest way, of course, is to put more into the loan each month than the required standard payment.

And there is another way of overpaying that doesn't even involve increasing the amount you put into your mortgage each month. ‘At a time when interest rates are low, and have dropped quite markedly over the past 12 months, you can simply leave the payments at the level they were previously,’ says Martin Cunningham, a London-based independent financial adviser. ‘If you had left your mortgage payments at the level they were when the rate was six per cent, for example, then you'd have been making overpayments in the intervening period, saving time on your mortgage term and money in future interest charges. This is one of the big advantages of flexible mortgages.’

Pay now, save later

So paying too much is not always such a bad thing. If the waiter brings you a bill for £1,000 for a simple lunch for two, then you have probably good cause for complaint. However, if you're able to make a £1,000 overpayment on your flexible mortgage, then do it. In years to come you may well be having dinner at the Ritz with the mortgage interest you've saved.

New research suggests that it takes just 16 minutes for homebuyers to decide to purchase a home in London and the South East because of fierce competition. With such little time to spare, make sure you know what to look out for.

The agent:

‘Location is very important. Look around the immediate environment and check with the local planners about any plans to build on the surroundings – otherwise the view you’ve spent a lot of money on could be ruined. To create a feeling of space, pay special attention to the hallway because a large entrance makes a great first impression and opens out the whole property. If you want to make big alterations to your home, remember that there is a real shortage of good tradesmen in London and the South East, which is why so many people go for new build.
The Property: Burns and Webber Estate Agents are currently selling homes at Queen Elizabeth Park in Guildford. The new village community being built by Laing Homes and Linden Homes will comprises 525 dwellings. Prices are expected to be in the region of between £230,000 to £650,000. Call 01483 440800.

The developer: Richard Rawson

If you are considering buying a new build property find out how the developer can assist you in the entire moving process – some will help sell your old home, recommend financial and legal advice or allow you to personalise the new home. When visiting a show home, check out the quality of the kitchen appliances, the doors, the coving and the general build of the home. Ask yourself if the house is adaptable as the family needs change. For example, could a teenager’s bedroom be used for a future study? Find out if there are enough plug sockets for computer, telephone and fax.   
The Property: Countryside Properties is selling 74 new homes at the Queen Charlotte’s Place development at Kings Hill Village in Kent. The homes have been designed in a traditional Georgian architectural style, where extra details such as porticoes, railings, balconies and sash windows have been included. Prices start at £289,950. Call 01732 875182.

The agent: Francoise Ellery

The most important point to look for is the size of rooms. Don’t be fooled by a room that is not bigger than a cupboard being promoted as a fourth bedroom or study, and ideally the bedrooms should have fitted wardrobes. Secondly, look at the kitchen. Is it large enough to eat in and is it fully fitted? Find out exactly what appliances will be included in the sale. When buying a brand new house, it is important to look at where the property lies in relation to its neighbours and that it is not too overlooked. Also check that it has been finished properly and all the snagging issues have been addressed.
The property: Parry Jones estate agents are marketing Loxley House, a spacious newly built family house on the outskirts of Dunsfold in Surrey. Set within a rural village location, the four-bedroom home priced at £750,000 will benefit from a large kitchen/breakfast room. Call 01483 893939.

The developer: Tim Sargeant

If you have your eye on a listed property, contact English Heritage or your local conservation officer who will be the best equipped when it comes to surveying the home. If you are buying a converted property, ensure you get good advice from the right professionals before you buy. Do your homework about the selling company you are dealing with and make sure they have a good reputation for reliable after-sales service. Think about the future use of the home. Good design is timeless and will not only offer you ease of use for the years you are living there but will also make it easier to sell when the time is right. 

The property:  Located down Avenue Road in Bishops Stortford, Essex is Stuarts, comprising three exclusive six-bedroom houses built over three floors. Features include an impressive entrance hall, partially glazed garden room and underfloor heating. Prices start at £950,000. Call City & Country Group on 01279 817882.

The agent: Matthew Burns

‘Location is very important. Look around the immediate environment and check with the local planners about any plans to build on the surroundings – otherwise the view you’ve spent a lot of money on could be ruined. To create a feeling of space, pay special attention to the hallway because a large entrance makes a great first impression and opens out the whole property. If you want to make big alterations to your home, remember that there is a real shortage of good tradesmen in London and the South East, which is why so many people go for new build.
The Property: Burns and Webber Estate Agents are currently selling homes at Queen Elizabeth Park in Guildford. The new village community being built by Laing Homes and Linden Homes will comprises 525 dwellings. Prices are expected to be in the region of between £230,000 to £650,000. Call 01483 440800.

The developer: Richard Rawson

If you are considering buying a new build property find out how the developer can assist you in the entire moving process – some will help sell your old home, recommend financial and legal advice or allow you to personalise the new home. When visiting a show home, check out the quality of the kitchen appliances, the doors, the coving and the general build of the home. Ask yourself if the house is adaptable as the family needs change. For example, could a teenager’s bedroom be used for a future study? Find out if there are enough plug sockets for computer, telephone and fax.   
The Property: Countryside Properties is selling 74 new homes at the Queen Charlotte’s Place development at Kings Hill Village in Kent. The homes have been designed in a traditional Georgian architectural style, where extra details such as porticoes, railings, balconies and sash windows have been included. Prices start at £289,950. Call 01732 875182.

The agent: Francoise Ellery

The most important point to look for is the size of rooms. Don’t be fooled by a room that is not bigger than a cupboard being promoted as a fourth bedroom or study, and ideally the bedrooms should have fitted wardrobes. Secondly, look at the kitchen. Is it large enough to eat in and is it fully fitted? Find out exactly what appliances will be included in the sale. When buying a brand new house, it is important to look at where the property lies in relation to its neighbours and that it is not too overlooked. Also check that it has been finished properly and all the snagging issues have been addressed.
The property: Parry Jones estate agents are marketing Loxley House, a spacious newly built family house on the outskirts of Dunsfold in Surrey. Set within a rural village location, the four-bedroom home priced at £750,000 will benefit from a large kitchen/breakfast room. Call 01483 893939.

The developer: Tim Sargeant

If you have your eye on a listed property, contact English Heritage or your local conservation officer who will be the best equipped when it comes to surveying the home. If you are buying a converted property, ensure you get good advice from the right professionals before you buy. Do your homework about the selling company you are dealing with and make sure they have a good reputation for reliable after-sales service. Think about the future use of the home. Good design is timeless and will not only offer you ease of use for the years you are living there but will also make it easier to sell when the time is right. 

The property:  Located down Avenue Road in Bishops Stortford, Essex is Stuarts, comprising three exclusive six-bedroom houses built over three floors. Features include an impressive entrance hall, partially glazed garden room and underfloor heating. Prices start at £950,000. Call City & Country Group on 01279 817882.

As prices in London continue to soar, more people are looking further away from the centre to try and get on to the property ladder. Karen Keeman discovers a new settlement providing over 3,000 new homes which is closer to the capital than you may think.

Just a one-hour train journey from London, work has started on a new development of some 3,300 homes. Cambourne, located nine miles west of Cambridge, is a brand new settlement that aims to provide a self-contained community with shops and services such as schools, doctor’s surgery and a library.

The idea, launched some 15 years ago, was to create a design that would emulate that of a village which has evolved organically over the centuries. This means that the developers have had to build aesthetically pleasing street scenes including traditional terraces, crescents and squares, many of which are set around play spaces and village greens.

The sheer size of the development has meant that a number of builders are involved in the site. Currently at Cambourne, Alfred McAlpine Homes, Bovis Homes, Bryant Homes, Mclean Homes and David Wilson Homes are building properties, which range from one-bedroom apartments aimed at the first-time buyer to six-bedroom family houses, as well as retirement homes and affordable social housing.

The development will be split into three villages – Great Cambourne, Lower Cambourne and Upper Cambourne – and each will be set around a traditional village green. As well as the new homes there will be a business park providing job opportunities for some 5,000 people.

The homes

Cambourne already has 600 homes occupied but with building work scheduled to continue for another 10 years, there is plenty of choice still to come. Properties currently available include: three-, four- and five-bedroom homes from Alfred McAlpine Homes priced from £154,950 to £269,950; three- and four-bedroom homes from Mclean Homes starting at £197,950; four-bedroom properties by Bryant Homes starting at £217,500; and three-, four-, five- and six-bedroom properties available through Bovis Homes and David Wilson Homes.

There are many different styles of properties available, including three-storey town houses which offer flexible accommodation for the whole family. Some homes will overlook the village green and some will have views over the country park.

Hard facts

·    Cambourne lies just off the A428, linking Cambridge and St Neots, and is also close to the A1198, stretching between Royston and Huntingdon
·    Stansted Airport is approximately 34 miles from Cambourne
·    The train from St Neots Station into Londons King’s Cross takes approximately 40 minutes
·    Cambourne has a primary school and day nursery
·    The development will become home to some 8,000 to 10,000 people
·    Cambourne has a number of walk and cycle routes through attractive wooded areas and green spaces
·    For more information call the Cambourne Concept Centre on 0800 3897525

There are thousands of mortgage deals out there: plenty of choice and oodles of competition mean there are good deals to be had. And with interest rates at a 38-year low, they are cheap. However, selecting the right deal for your needs can be a bewildering process. Paula John of Your Mortgage magazine talks us through some of the types of loan available

Just selecting the right type of mortgage is confusing. Should you choose a variable rate, discount, fixed rate, capped rate, cashback, base rate tracker or a combination? Well, right now, fixed rates and discounts are the most popular options. Currently the UK base rate is just four per cent, and mortgage variable rates range from 4.74 per cent to 5.89 per cent.

But interest rates are widely predicted to rise this year and while it is unlikely that rates will shoot up substantially by December, for example, who knows what could happen in years to come? Is it worth locking into a fixed rate in order to protect yourself against the vagaries of potentially fluctuating interest rates?

Fixed mechanics

In order to offer a fixed rate mortgage, a lender goes to the money markets and borrows a 'tranche' of money fixed at a certain rate. The lender then adds on a margin – usually around one per cent – and offers the rate to borrowers. The money markets predict what is likely to happen to interest rates in the future – a year hence, say.

So if a borrower goes for a fixed rate mortgage now, they are already paying the higher price, even though the increase may not happen. Or at least not on that scale.

Plain sailing

Ray Boulger of Charcol suggests you look at what the base rate is likely to do in future. Fixing your rate is a good option if you think the base rate will go up substantially. You will pay at least one per cent more for a fixed rate than a discount, at least in the shorter term. So, according to Boulger, you should only go for a fixed rate if you believe that base rate will go over six per cent in the next year.

Long-term outlook

Other experts believe that it is important to take a longer-term view. While the most popular fixed rates at the moment are two-year deals with no tie-ins, they argue that a five-year fixed rate can bring more value and security.

‘If you want to keep your mortgage for five years, you cannot go wrong with a fixed rate mortgage,’ advises mortgage expert John Wriglesworth. ‘The only downside to having a fixed rate mortgage could possibly be if you thought you might leave the country and travel the world, for instance, or that you were to come into an inheritance in a couple of years and would use the money to pay off your mortgage. In that case you would want a flexible mortgage.’

Watertight

But at what point could fixed rates get too expensive? If a fixed rate is substantially higher than a discount, then surely people should be going for the discount? ‘Absolutely not,’ says Wriglesworth. ‘The rate at which fixed deals are charged is based on forward markets. If fixed rates start getting higher, that is because the markets anticipate a rise in base rates.

In your bones

Sadly, even the greatest expert cannot accurately predict what is going to happen to interest rates. Analysts and the market do get it wrong. So the choice of whether to go for a long or short-term fixed rate or a discount really rests on your attitude to risk and your own feeling about what will happen to rates in the future. The most important things to remember once you have decided are to shop around for the best rate and to ensure that the deal does not tie you in at the end of the term.