Buying, selling and letting - March, 2001

Q I have lived in my present home for some years and I’m having a real problem clearing everything out in preparation for selling. All the storage space is stuffed full, as is the garage and attic. I work from home so I need access to lots of files and papers. Please could you offer me some advice on how to be organised.

A There are specialist firms these days that will help you to de-clutter your home, but if you want to get on with the job yourself, you must be disciplined. There is no point in just packing the visible clutter from your home into boxes and adding it to your storage problems. Start by clearing the garage and attic. Be ruthless and throw out as much as you can – the very fact that you’ve put these possessions in these areas means you cannot need them very often. If you still want to keep some items, consider using a storage firm. Once the garage and attic are clear, you can begin to pack possessions from your general storage areas, such as cupboards, into boxes and move them. This should free up sufficient space for the papers and files you need to look at on a regular basis, without having to have them on display. You should also have space for all the personal bits and pieces that one should store away when selling. Remember to keep storage areas as tidy as possible. Potential purchasers will also have things they want to store, and will want to see what storage space your home has.

Q Our four-bedroom period property has been on the market for a while without offers. We have reduced the price by several thousand pounds and have still had no success. It is a spacious house and, we think, looks very attractive. However there may be some areas that need attention. My wife and I use one of the bedrooms as a dressing room and another bedroom as an office. Both areas could possibly do with a bit of a tidy up. Any suggestions?

A I suspect your problem may be only partly related to tidying up. You are effectively showing a four-bedroom house as having only two bedrooms. This would deter offers, as prospective purchasers are not seeing your home as good value-for-money. Since so many people work from home for at least part of the working week, many buyers will understand a bedroom being converted to a home office. A dressing room however, sounds like a luxury you may have to do without whilst selling. As it is probably a small room, you will need to clear out everything and furnish it will a small single bed, bedside table, lamp and a small bookcase, if there is sufficient space. You need not have a duvet and bedding, just cover the bed and pillows with a bedspread and a few pretty scatter cushions. Add a couple of prints and a mirror to the walls and you will have a presentable room. Showing your home with three bedrooms will give it much wider appeal and make it more attractive for the asking price.

As for the office, it should look professional. If you have curtains at the windows, change them for blinds. Central pendant lighting with a lampshade is not appropriate for an office environment. Replace it with a fitting that is flush to the ceiling and will suit either an office or bedroom. If you have no knowledge of lighting and electrical work, employ a qualified electrician. If you do not have desk lighting already, buy a suitable lamp. When tidying, remove as much as you can from the room and clean all surfaces, desktops and shelving thoroughly. These areas rarely get touched and harbour huge amounts of dust. Clean computer equipment carefully, and always disconnect it from the mains before doing so. Before returning items and papers to the office, ensure you have plenty of storage – box files or trays. Sort papers as you go and throw out anything that is not essential. Keep the surfaces as clear as possible and add one or two leafy houseplants to add life and keep your office healthy.

Q I am thinking of selling my home in the autumn. The carpets on the ground floor have become worn over the years. Is it worth replacing them or shall I just use rugs to cover the worst areas?

A Yes, replace them. Worn flooring is a real turn-off for prospective purchasers, especially if it appears that rugs have been used, not where they look best, but to cover stains or threadbare areas. You do not have to buy expensive carpet – many man-made carpets look and feel very attractive and wear well. To find a bargain, wait until the summer sales to make your purchase.  Choose a pale, neutral colour that will complement your décor and furniture. Do remember to fit the same carpet throughout. This will make the whole area look bigger and more coordinated rather than just a ‘patchwork’ of carpet.

We’re familiar with the concept of employing someone to take care of the garden, look after the childen or even shop for us. But would we be comfortable hiring someone to find us a home? Stephanie Thomson spoke to Amina Sadiq of ANS Property Finders, whose successful service does just that.

What is your service and how does it work?
At ANS Property Finders we realise that buying a new property can be a challenging and demanding experience.  It is our aim to make the moving process as simple and hassle free as possible. Ultimately the service is about finding the client their perfect property, securing it for them and managing things through to completion.

It may sound simple, but most people don’t actually get to see the best properties for sale, as they are snapped up almost immediately. Knowledge and effort is needed to be able to sift the good from the bad. We make sure that we are at the front of the queue when new properties come on the market, and are able to dedicate the time to maintaining contact with estate agents and view property at the drop of a hat.
Once we’ve found a property, we negotiate and secure it for our clients and follow through with the sale right to the end.

What prompted you to develop the service?

Family and friends often comment on the knack I have for knowing a good property when I see one. After buying a property myself and finding out a bit more about the market I decided to train as an estate agent. I gave up a successful career as a retail buyer and simply started from scratch. I found that I was good at the job and really enjoyed being able to take on a property and find the right buyers for it. I guess my experience in retail was helpful in understanding buyers’ needs and being able to satisfy their requirements.

I often heard people say ‘I had to take a week off work to look for property last week, but I didn’t find anything’ or complain that they couldn’t get to see a property before the weekend and were worried it would be under offer by the time they saw it.  The need for a property finding service was evident, and it simply went from there.

How much does it cost?

We are very competitively priced. An initial fee is payable when we agree to act on a client’s behalf to find a property. A further commission fee is payable if we find a property and the client enters into a binding contract to purchase it.  

It’s a small price to pay to ensure that such an important and big investment is given the full consideration that it deserves. However, we really want to help people buy the correct property, and we’re always willing to put together a package to suit our clients’ pocket.
 
Who uses your service?

The service is for anyone who seriously wants to find a selection of the best properties within their budget with less effort, time, hassle and stress. People who work in London with demanding careers often find it difficult to make the time to house hunt.
Investing in a property is one of the biggest decisions you can make and not one to be taken lightly. With our help, clients know that their decision to buy is an informed one.

You mentioned that the service can be tailored for individual requirements – how does this work?
We can help organise removals or investigate local schools. A client may be buying a property that they want to redecorate – we can recommend painters and decorators and even offer some interior design advice. If a client is buying a property as an investment, we can advise them on the marketplace, current rental values and terms. We can even help organise the letting of the property.

What about your own experiences of looking for a place to live?
I was able to find a home I fell in love with and the experience wasn’t too painful. But being a first-time buyer is nerve wracking, and sometimes you can be too cautious. I wish I had had somebody on my side to offer advice and guidance!

For further information on ANS Property Finders’ service, see their advertisement in this week’s Homes etc. Alternatively, visit their website at www.anspropertyfinders.co.uk or ring 020 8427 6340.

ANS’ top tips for making your move easier

Remember it’s important to find a home that fits in with your lifestyle. Think about what qualities in a property are essential and which can be comprised.

When you’re viewing a property, try to see past the current owners and assess it objectively. Imagine how the space would fit in with your needs.

Be realistic about your budget. Don’t waste time viewing properties that don’t meet your criteria or aren’t within your budget.
 
Remember that estate agents have many people looking for properties and it can be difficult for a committed buyer to stand out from the others. Try to get to know the agent a little and let them see how serious you are about buying. Give your agent feedback. Let them know why you didn’t like a property – it will help them to match you with something more suitable.

Don’t be afraid to ask questions about an area. Find out the best roads, trouble spots, transport links and even consider contacting the local council for more information.

Cost counting

Property prices in many areas have rocketed in recent years, preventing thousands of would-be homebuyers from getting on the housing ladder.

Even if you can afford to buy your first home, you must have money saved up not only for a deposit or moving costs but also to cover the actual price of setting up a mortgage.

The mortgage market is highly competitive, and there are plenty of good deals to choose from, but beware of the hidden extras that might just make all the difference. Here are some of the worst culprits.

MIGs

The Mortgage Indemnity Guarantee Premium, or MIG, is a bit of a mouthful. And indeed, it can mean biting off more than you can chew.

The MIG is a fee charged when you borrow a high percentage of your property’s value. Some lenders charge a MIG if you are borrowing more than 80 per cent loan-to-value (LTV), others don’t start charging until you reach 95 per cent LTV.

The premium protects the lender in case you default on your mortgage payments. You pay the premium (which can run to thousands of pounds), but the lender gets the protection. You get no cover at all. As a result, many people think this is an unfair charge, and a number of mortgage lenders, including Nationwide, have scrapped MIGs altogether. It is worth noting that you can avoid paying a MIG on a good deal by saving a sizeable deposit first.

Some lenders insist you pay a MIG upfront in one lump sum. Others will allow you to spread your payments, and some lenders may offer to simply add the MIG to your loan. This may sound like a good option on the face of it, but you will end up paying interest on the MIG amount plus the original mortgage for many years to come, which could make this the most expensive choice.

Arrangement/Booking/Reservation Fees
Most lenders will charge you an arrangement fee to set up your mortgage. This may be anything from £50 to a few hundred pounds. On top of that, if you are taking out a fixed or capped rate mortgage, you may be charged a booking or reservation fee to guarantee you get your money at a particular interest rate. This may be in the region of £100 to £350.

Some lenders may waive one or both of these fees on special deals for first-time buyers, or in some cases for remortgagors.

Disbursements

Because purchasing a property is a legal transaction, you will have to engage the services of a solicitor. The solicitor will carry out searches and inspect the title deeds to the property. They will also receive your deposit and set the completion date. And, as anyone who has ever had any dealings with a solicitor will know, they don’t do anything for nothing. Legal fees may be anything from £250 upwards. When you receive your bill, you may be confused by a charge for ‘disbursements’. This refers to incidental costs such as photocopying, faxing and so on.

Again, some special deals for first-time buyers may involve the lender picking up the tab for the legal costs.

The moral of the story is you should always find out exactly how much the buying process is going to cost you, and make sure you have saved up enough funds to cover your costs.


SECOND-TIME BUYERS

New Labour – end of term report


Now that New Labour has had a full term, how have they measured up from a home buyer’s point of view?

The government began its term by handing over the control of interest rates to the Monetary Policy Committee of the Bank of England. At the time, bank base rates stood at 6.25 per cent. Today, the base rate has come down to 5.50 per cent – good news all round for mortgage borrowers.

Their effect on house prices has also been positive, as the increase in national average house prices reflects. The average overall value of residential property has grown from £55,810 to £83,314. The downside, however, is that this rise has alienated many prospective first-time buyers who can no longer afford to join the club.

And New Labour has made some unpopular moves. The decision to abolish MIRAS (Mortgage Interest Relief At Source) was not well received by borrowers – in fact it added about £20 to most mortgaged households’ monthly bills. Admittedly the abolition of MIRAS was the brainchild of the previous government but, as borrowers have felt the pinch, it could count against New Labour.

The government also increased the tax burden on the better-off by increasing Stamp Duty on expensive property purchases. In May 1997, Stamp Duty was one per cent of the cost of any property sold for over £60,000. Now it costs one per cent on properties from £60,000 to £250,000, three per cent on properties worth £250,000 to £500,000 and a weighty four per cent on properties over £500,000.

New Labour has suggested introducing new ideas such as Sellers’ Packs, new laws on commonhold and statutory regulation of the mortgage market. Feelings are divided. Some believe that Sellers’ Packs will not be trusted, the proposals for commonholders are as yet unclear, and many would argue that the mortgage industry has behaved perfectly well without supervision for many years. Good for New Labour for thinking up some innovative ideas, but a word of warning – it is rarely worth introducing changes just for the sake of it.

FIRST-TIME BUYERS

Current Account Mortgages

We are more likely to divorce than change our bank account. And yet few, if any, of us have any kind of relationship with our bank that would suggest a life long attachment. Indeed, any conversation about banks normally consists of a succession of tales of, at best, their incompetence and, at worst, their nastiness.

But most consumers begrudgingly accept the cock-ups – the cancelled direct debits, stopped standing orders, chunks of cash that mysteriously disappear from their account and so on. And even those who enjoy a faultlessly run current account put up with the minuscule interest rates that banks pay on their accounts while they are in credit.

‘What's the point of changing to another bank?’ asks borrower Niki Davies. ‘Banks are pretty much of a muchness, and I can't be bothered with all the grief of changing direct debits and standing orders. I suppose my present bank has got my current account for my life.’

And yet public inertia over current accounts may be set to change. A small but growing band of mortgage lenders are offering home loans that are bundled up with current accounts and even credit cards and personal loans. And as people are increasingly waking up to the benefits of switching home loans, many of them will also change their current accounts.

These so-called current account mortgages (CAMs) are about to explode in popularity, according to one of the pioneers, Virgin, which predicts that 25 per cent of net mortgage lending in the next three years will be on CAMs. If this proves correct, hundreds of thousands if not millions of people will be changing their bank accounts in the near future.

What the lenders say

Scott Mowbray of Virgin One: ‘You would need to find a savings account paying around 12 per cent to get the equivalent rate of return on your money that is available with a current account mortgage.’

First Active's Natasha Plackett: ‘We are unique. Borrowers can take the loan but we don't force them to transfer their bank account or pay their salary into the account. CAM provides the ultimate in flexibility – you can take as many of the features as you want, when you want.’

Woolwich spokesperson Anna Keens on its Open Plan Offset mortgage: ‘It is slightly different to normal CAMs – customers keep their current account, savings account and loan independent of each other, but a daily virtual sweep is done automatically to make sure that their money earns the best rate of return.’

SECOND-TIME BUYERS

With property in many areas selling at premium prices, many first-time buyers simply cannot afford to get on the property ladder in the conventional way.

But there are alternatives. Buying a run-down property and renovating it yourself can be one way to join the home-owning ranks, whether you buy through an estate agent, privately or at auction.

But who will agree to lend you a substantial amount of money to buy a wreck? The answer is that some lenders are more accommodating than others.

Norwich & Peterborough Building Society is perhaps one of the most sympathetic lenders around when it comes to renovation mortgages.

‘We will lend customers up to 85 per cent of the purchase price of the land and property they want,’ explains Alison Rolls, assistant general manager. ‘And then we will extend that up to 95 per cent as work is carried out, which is the normal maximum percentage we will lend of a property’s value.’

Whatever the circumstances, borrowers can choose any one of the society’s mortgage products for which they would otherwise be eligible. But rather than lending the whole amount up front, the money is given out in stages as work progresses, much as it would be with a self-build mortgage. The maximum is six stages of payout. ‘There is after all a huge difference between a derelict property that needs complete renovation – or indeed conversion – and something that simply needs tarting up,’ points out Rolls.

Bradford & Bingley is another renovation-friendly lender. ‘If the borrower likes, they can have the funds up front, to 95 per cent of the starting value of the property,’ says Rex Kirk, product development manager. ‘Then again, they may have cash flow problems during the renovation, in which case we can arrange to revalue the property as and when they improve it and release more funds accordingly.’

Renovating a property can be an environmentally-friendly move, as well as a cheaper way of getting on to the property ladder, in that you are rejuvenating an existing building. Whether you’re considering buying a rundown property to fit your pocket, your conscience, or both, shop around a few lenders to find the deal and the conditions that suit you.

Most of us at some time have had dreams of being an inventor. But what does it take to see an inspiration through from drawing board to shop display? And who are the people whose ideas will become the everyday products of the future? Johnny Turner talks to Richard Mann, one of 12 young designers shortlisted for the first Daily Mail Ideal Home Show Class of 2000 Award.

Consumers don’t give it much thought, but every home product we see displayed for sale has a history. Usually, a perceived need leads to practical experimentation. This in turn gives way to a gruelling round of refining stages before a product is deemed ready for use by Joe or Jane Public. Each of these stages demands a strength of belief – not to mention money and time spent on seeing the idea through.

This year’s Daily Mail Ideal Home Show debuts a fascinating display in which visitors will be asked to choose their favourite from 12 design ideas for the home. This shortlist was whittled down from more than 800 entries from design colleges around the UK. Richard Mann, 33, is one of the hopefuls in the running for the £3,000 prize – money which could make the difference in converting his concept into a widely available product.

Mann’s product is, like many new ideas, so simple it’s hard to believe no one’s thought of it before. His Kettleless Mugs are just what the name suggests – mugs that heat water for tea or coffee themselves, making a trip to the kettle unnecessary. Using induction heating, the Kettleless Mug is a safe, portable, efficient and clean method of heating water, making this a revolutionary product. ‘It's a really simple idea,’ he agrees. ‘Everyone likes to have a cup of tea.’

Mann’s design is the result of a project at the Glasgow School of Art, from which he graduated last summer. ‘The idea came in response to a brief – to design a product which would help the elderly and improve their quality of life. It was open and we could do what we wanted. I asked elderly people what was important to them.’

The product took surprisingly little time from original idea to finished product. ‘It was six or seven weeks. It’s a very simple idea. I just had to work out how it would work and whether it would be feasible.’

The use of blue and yellow reminds me of the Ikea colours – they’re very pure, friendly tones. How important is the colour and, more broadly, the look of a product to a designer? ‘Colour is part of it – I don’t think it’s everything,’ says Richard. British designers have been accused of just changing the colour of things as opposed to thinking up something new.’ As for shape, this was decided largely to aid the original purpose of the product, Richard says, taking into account the diminished strength and flexibility to which older people are prone.

Richard’s Kettleless Mug design has already won the RSA Student Design Award 1999–2000. Does he expect similar success in the Ideal Home competition? ‘Obviously, that would be great. It would make it possible for me to take this idea further.’

And what of the future of British design? ‘It seems very hard to come up with something new and get it taken through to the final stage because of the cost or the amount of time involved,’ Richard says, ‘which is pretty frustrating.’

What area of product design does Richard picture himself being involved in as his career takes shape? ‘I’m interested in variety. I like the idea of going from one thing to another.’ Ultimately, he says, ‘the dream would be to have my own consultancy – that would be fantastic. But again, variety is the important thing. I just want to be able to do different types of things.’

Cast your vote for the Class of 2000 Awards at The Daily Mail Ideal Home Show, which runs until 8 April at Earls Court.

From intention to invention: five things you didn’t know about patents and design registration

1 The earliest known English patent for invention was granted by Henry VI to Flemish-born John of Utynam in 1449. The patent gave John a 20-year monopoly for a method of making stained glass, required for the windows of Eton College, that had not been previously known in England.

2 In 1596, Elizabeth I denied Sir John Harrington his request for a patent on his design for a water closet – on the grounds of propriety.

3 200,000 non-textile designs were registered in the UK in the years 1950–1989.

4 It costs £60 to register a design with the Patent Office. This registration lasts a maximum of 25 years.

5 The Patent Office offers searches to determine the patentability of a design. This service can cost anything between £270 and £2,500 depending on the complexity of the search needed.

Source: The Patent Office

Created by: JohnnyT word count:21
On: 05/02/01 11:11

Q My husband and I own the house we live in with our children, and we are thinking of making wills. If we were to decide not to, what are the potential problems?

A Making a will gives you control over your assets. You have not said what other assets you might own, but let’s assume the main one is your house.

If by the time you or your husband die you have not made your wills, your property will be distributed under what are called the rules of intestacy. Intestacy simply means there is no will. As an example, under the current law your surviving spouse would get everything up to a value of £125,000, plus personal possessions and a life interest in your house. Your children would share the rest of the estate above £125,000. They would also, in this case, inherit the house when the surviving spouse dies.

Unfortunately the £125,000 threshold may not have kept up with fluctuating property prices – this is something the government may address in future. Sometimes this low threshold results in the children of the deceased selling a property just so they can receive their inheritance.

If you want to dictate who will get what, you can get wills drawn up by your solicitor for a reasonably small outlay. You can then rest assured that you will still be exerting control over your assets even after you are gone.

Q A neighbour of mine constantly complains about noise she says is coming from my flat. There are many flats in our converted building, and the neighbour in question lives below me. I believe the level of noise coming from my flat is reasonable and I am considering complaining about the neighbour to the landlord. Is this sensible?

A It all depends on your lease. You should obtain a copy and read it carefully, as every lease is different. The question you raise seems to be a common problem these days. Some leases state in a general way that you should not cause a nuisance to the people living in the neighbouring flats or maisonettes – but do not specify what activities are forbidden.

On the other hand, I have seen leases which are extremely specific about the laying of carpets and underlays to help minimise noise levels before anybody can live in a particular flat. A more modern lease may include this clause.

The landlord will have a part to play, but again this depends on the terms of the lease. You may find your lease includes what are known as enforcement covenants. These covenants mean the landlord can be asked to force flat owners to comply with the terms of the lease. But remember that your neighbour is likely to have a very similar lease, and these covenants may also give your neighbour the right to complain about your behaviour and the power to insist that the landlord enforce any non-nuisance or noise abatement clauses.

The least complicated option may be to try to determine whether your neighbour is mistaken about who is making the noise – and if it is your noise, to be very honest with yourself about whether your neighbour is being unreasonable. Only when you’re satisfied that referring the matter to your landlord is the only option, should you start the legal ball rolling.

Property magazines are full of ‘riverside apartments’ and ‘sea views’ – but what happens when living near water becomes a liability? Over the past few months, flood warnings have been at an all time high, and all predictions point to continuing wet weather. Ed Walker finds out why being prepared is the best choice.

The facts and figures speak for themselves. Over five million people live in flood risk areas in England and Wales. Losses due to flooding, both insured and uninsured, are estimated to be in the region of £600 million each year. And according to research by the Environment Agency, only one person in 20 at risk takes the threat of flooding seriously enough to plan ahead.

Many don’t even realise they’re living on a floodplain. For Carol Mawle, whose bungalow in Banbury, Oxfordshire, was hit by a flash flood two years ago, it was completely unexpected. It had been raining hard all day, but it wasn’t until the middle of the following night that Carol realised the water level was high enough to reach the house.
‘We had seen the water rising outside and knew it would be inside soon, but we just expected it to come through the doorways,’ says Carol. ‘I put towels down to block them but it didn’t help at all. I heard gurgling noises from the walls and realised that the water had filled the holes in the cavities. Then it came through the skirting boards of the floor. It was eerie. One minute we were dry, the next minute we were walking on a moving carpet.’
‘We lost everything. All our clothes, shoes, video cameras, kitchen electrical equipment, fridge, washing machine, dishwasher – all were lost.’
Carol and her husband were forced to find temporary accommodation while their bungalow dried out – the process took nearly 6 months. Thankfully, the Mawles were fully insured, but many others aren’t so lucky.

‘Flood damage can cause huge misery and hardship,’ says Chris Mouncey from the Association of British Insurers. ‘Average household claims exceed £6,000 with carpets and curtains being the most common claims, although water can even damage the plaster and structure of dwellings.’
The number of floods in Britain is on the increase, with climate changes and global warming seen as strong contributing factors. The need to increase public awareness prompted the Environment Agency to set up Floodline – a hotline to give householders the latest information and advice on coping with flooding. There is also a Floodline website with maps showing areas at high risk from floods.  
As the Environment Agency’s Chairman, Sir John Harman, puts it: ‘We can never stop floods altogether, but advances in technology mean we can be more certain about which properties are likely to be affected. By providing people with better information and advice and clearer warnings in advance, we help them stand a greater chance of coping with the responsibility of protecting their family, home or business.’

The Environment Agency’s Floodline site at www.environment-agency.gov.uk offers up-to-date information, maps of high-risk areas and comprehensive advice on coping with flooding. You can also ring the Floodline on 0845 988 1188.
For further advice on insurance issues related to flooding, visit the customer information section on the Association of British Insurers’ website at www.abi.org.uk.

Preparing for a flood:

Check with the Floodline on 0845 988 1188 or visit their website at www.environment-agency.gov.uk for information.  They can tell you whether your property is at risk and provide local flood warning information in your area.

If you live in a flood-prone area, make sure that you have adequate floods insurance.

Keep a list of useful numbers at hand – ideally on the first floor of your home. Include your council, emergency services, your insurance company emergency family contacts and the Floodline number.

Make up a flood kit. Include a torch, blankets, waterproof clothing, Wellingtons, a portable battery operated radio, first aid kit, rubber gloves and any important documents you might need in an emergency (passport, house deeds, insurance papers etc). Keep this on the first floor if possible.

Buy sandbags or keep floorboards to block doors and airbricks. Remember to ensure there is adequate ventilation. In an emergency, you can make sandbags yourself by filling old pillow cases, carrier bags or even tights with sand or earth.

Learn where and how to turn off your gas and electricity supplies.

If you live in a flood-prone area, talk with your family or housemates about plans to cope with flooding with your family or housemates. Make arrangements for a way to meet if flooding separates the family.

During a flood warning:

Watch water levels and keep up to date with radio and TV news and weather reports. Teach children how and when to tune in for reports or call emergency services.

Move people, pets and valuables upstairs or to higher ground.

Move your car to higher ground. It only takes as little as two feet of fast flowing water to wash your car away.

Check whether your neighbours need assistance. They may need help in moving furniture or may not be able to escape upstairs.

Do as much as you can in daylight. If the electricity fails, doing anything in the dark will be a lot harder.

Keep warm and dry. Floods can last longer than you think and it can get cold. Take warm clothes, blankets, a thermos and food supplies, cash and credit cards with you.

Don’t walk through floodwater above knee level. It may help to carry a walking stick or pole with you to help test the ground. Remember that water can conceal manholes, roadworks or other hazards.

After a flood:

Take extreme care when returning home after an evacuation. Watch for loose plaster or brickwork which might be in danger of collapsing, or animals that may have come into your home with the flood waters. Be aware of potential fire hazards that may be caused by damaged electrical or gas appliances or cabling.

Inform your insurance company as soon as possible after the flooding to give them the chance to act quickly. Take photographs of your home to help with insurance claims.

Contact gas, electricity and water companies to check your services before turning anything back on.

Open doors and windows to ventilate your home. Unblock air bricks and doorways. Drain large areas – a flooded basement, for example – slowly to prevent structural damage.

Clean and run taps for a few minutes before use. Check with your water company if you are concerned that mains water is contaminated.

Disinfect and thoroughly clean everything that has got wet. Discard any foodstuffs that have come into contact with flood water. The water may be contaminated and could contain sewage.

One in three new homebuyers takes out insurance to cover their mortgage payments – the other two must be mad. You are not legally obliged to take out Mortgage Payment Protection Insurance (MPPI), but it’s foolish not to insure yourself.

MPPI is a general term covering a range of policies, most notably accident, sickness and unemployment (ASU) insurance, and permanent health insurance (PHI). Quite simply, they cover your mortgage payments if you are unable to work through illness, an accident at work or unemployment. And, however secure you think you are, being unable to work can happen to anyone at any time. Malcolm Tarling, spokesperson for the Association of British Insurers (ABI), says: ‘It’s important to consider how you would survive if you could not work for six months because of illness or unemployment. Most people with a mortgage have life insurance, which is also essential, but in fact it is much more likely that you will become ill or unemployed than die before the end of your mortgage term. So it is extremely important to protect your payments against these likelihoods.’

When you buy an ASU policy there is an excess period from when you stop working until the cover begins. This could be 60 days or even a year – usually the longer the excess, the cheaper the premiums. And you may not need your mortgage covering straightaway if you have savings, a redundancy package or if you are ill but are hoping to get back to work quickly. ASU policies usually pay out for 12 months after the excess period. A lender may cover your payments for longer but they are not obliged to.

You pay a monthly premium for a policy which is usually around £5–7 in each £100 you pay on your mortgage – if it is £500 per month, for example, you would pay an extra £35 to cover yourself. This is well worth it if you are unable to pay your mortgage for a year. Permanent Health Insurance (PHI) specifically covers long-term illness that leaves you unable to work. Unlike ASU, it covers payments until you either return to work, retire or die. This is a better option for some people, especially those who will get a redundancy package or the self-employed.

Protecting your mortgage payments is advisable and easy. MPPI policies are available from most banks and building societies and life companies. By not getting cover you could lose your home – and prevention is definitely better than cure.


If you have a flexible mortgage you can self-insure by making overpayments into your mortgage when you have the spare cash, either by putting in a lump sum or making small regular overpayments. If you are unable to work, for whatever reason, you will be able to take a payment holiday and a break from monthly payments.

In mid-1999, a joint initiative was launched by the Council of Mortgage Lenders and the ABI, supported by the government, to encourage more people to get mortgage payment cover. They designed minimum guidelines for lenders regarding the type of cover they offer. In the first six months of 2000, 31.7 per cent of mortgages sold were protected by insurance. This shows a significant increase from the previous six months, when 28.8 per cent of loans were covered by Mortgage Payment Protection Insurance. Approximately 2.2 million mortgage holders, 19.6 per cent of the UK total, are now protected by MPPI.

Buildings Insurance

As reported in Homes etc. last week, the pre- and post-Christmas floods brought misery to thousands of homeowners across the country. And for many people, no sooner had the water subsided than a new deluge brought further floods, precipitating another evacuation of their property. The Association of British Insurers (ABI) believes that one in four homes has no insurance, so some of these unfortunate homeowners will be counting the cost of not having buildings and contents insurance in place – facing big bills to replace or repair their possessions and the property itself.

Attention at the moment is, rightly, being focused on the dangers of flooding. The Environment Agency warns: ‘Nearly two million homes and businesses lie in natural river and flood plains in England and Wales. Experts from the Met Office predict that we could see a very significant increase in flood risk over the next century. Today’s extremes could become tomorrow’s norm.’ Advice for homebuyers is simple: don’t buy a property that is at risk from flooding and, if you do, make sure that you have adequate buildings and contents insurance in place – certainly enough buildings insurance to meet the full rebuilding costs of your property. Before buying a property, ask your solicitor to find out whether there are any records of recent flooding. And check out The Environment Agency’s website, which provides ‘flood maps online’, highlighting whether the property is at risk from river or coastal flooding (www.environment-agency.gov.uk).

But once flood waters have subsided, there may be further knock-on effects for homeowners, including subsidence. Subsidence is associated with long periods of very dry weather, which causes shrinking in the subsoil. The property sinks and cracks begin to appear in the walls. Without expensive remedial work the affected properties risk collapsing. Liz Nicholson of Norwich Union warns: ‘Flood water doesn’t hang around for very long, but it can wash away particles in sandy soil, which might well cause properties to subside.’

Norwich Union doesn’t believe that the recent wet weather will have an impact on heave (where the ground swells, forcing buildings upwards and causing walls to crack). But while Direct Line concedes that the wet weather may have an influence, spokesperson Gill Murphy adds: ‘Heave isn’t common, but it normally affects newer properties that are built on forest-type land that was cleared to make way for the development. Once the trees have gone, less moisture is removed from the soil and so it swells up, causing heave. Basically, the building slowly pops up out of the ground.’ The message is to beware of newer homes built in the 60s and 70s on land that was previously heavily wooded.

As always, it is a case of ‘buyer beware’, and it is essential to have full buildings and contents insurance in place when you buy a home.

Get your patio primed for spring

Swinging roundabout

Bradstone’s ‘Old Riven’ circular paving is perfect for giving shape to your garden’s landscape. Made from an aggregate, Bradstone’s range of paving slabs mimic stone, are economical and easy-to-lay – allowing you to create just the effect you’re looking for. Ring 0800 9759 828 for stockists

Here comes the sun

Even when the sun lets you down, your patio won’t. The 52-piece ‘Sun Circle from Focus Do-It-All is an easy project that will transform your outdoor space into a conversation piece. From branches of Focus Do-It-All

Inside out

Discover luxury living out-of-doors with garden furniture that makes a fashion statement. Homebase’s adjustable Chelsea sunbed even includes a side table for drinks and that summer novel. £149 from Homebase stores

Très bell

When the British weather is taking its toll, protect plants like these pretty ornamental cabbages with a solar bell jar. The shape makes the most of what sunlight there is and adds a dash of drama. From £3.99 for a set of three at Homebase

An idea worth poaching

Exterior decorators everywhere will find Homebase’s dinosaur eggs this year’s must-have accessory. Available in blue, red, green and black, they’ll give even a prehistoric garden a post-modern edge. From a selection at Homebase

Hit the decks

Giving nature a high-tech twist, Hogarth Timber’s ‘Arbordeck’ system starts by using advanced computer software to create a 3-D virtual landscape of your back garden, and will design wooden decks to fit the space. High quality softwoods and manufacturing techniques ensure that your deck will last for years to come and accessories like balustrades and handrails allow you to create an outdoor living area as elaborate as your imagination. Ring free on 0800 169 5275 for stockist information