Buying, selling and letting - March, 2005

Actor Gary Lucy, of Hollyoaks and Footballers’ Wives fame, is well on his way to becoming a property magnate. He talks to Johnny Turner about his experiences in the property market

Neither punctual nor late, Gary Lucy strides into the Islington restaurant from a clear, icy night. He looks both like and unlike his TV self; almost impossibly tidy, as if he has been scrubbed. The only possible reaction to seeing him is to smile and give a slight wave. He radiates friendliness and good manners.
We are here to talk about property, something about which he knows quite a bit, but other subjects close to his heart get a look-in too: a new-found fondness for LA, his family, favourite episodes of Friends, his girlfriend Natasha, possible upcoming work. And it is a sign of an in-check ego that he speaks of each of these as if he is the lucky party in the association.
This outlook, a good balance of optimism and caution, has served him well, in both his career and his property investments. With his first high-profile role, as Luke in Hollyoaks, Gary had a sudden surfeit of both money and attention – a recipe for going off the rails, as anyone who’s ever read Heat magazine will know. But he kept his head was lucky to get some good advice from a fellow actor early on, advice which led him straight to bricks and mortar.
‘At first I spent it as I earnt it,’ he says. ‘Then James Redmond sat me down and said, I want you to meet this financial advisor.’

Gary was 17 when he bought a £140,000 London flat on a 95 per cent mortgage. ‘I wish I’d put down more. I sold three years later and made a nice profit.’
After he had bought and sold a couple of properties ‘in the usual way’, Gary noticed something: ‘My friends were buying quicker and they told me how. It seemed too good to be true.’
The ‘how’ turned out to be an association with a broker, through which he has bought his last three properties. And he credits this method of property purchase with both minimising the initial outlay required and streamlining the process of buying, making it possible for him to now own more properties than he would have been able to do otherwise. As a result, an increasing public profile coincided with a growing collection of bricks-and-mortar investments.

Having done himself credit as an actor through the groundbreaking storyline of his character Luke’s rape trauma, Gary left Hollyoaks and soon resurfaced on our screens in the over-the-top Footballers’ Wives as Kyle Pascoe, an agreeable but somewhat dim midfielder with a penchant for garish shirts. Kyle’s troubles would have made Job complain – and his weakness for booze and betting meant his financial house was anything but in order. In contrast, the actor behind the character continued to buy and sell property, building up what is now quite a portfolio for a private landlord: six properties, including the three-bedroom apartment in Repton Park in Chigwell in which he currently lives.
The life of an actor, with its travel and general unpredictability, seems unsuited somehow to managing rental properties. So surely he has a management company oversee them? ‘Not if I can manage it,’ he says. ‘My Mum and Dad help me with two of them and three are with agents.’ He has learnt during his time as a landlord, however: a period early on during which a property was empty for four months made him conscious that an investment property needs to be managed well.
He is certainly sold on newly built properties. ‘I’ve had more trouble with the old properties I’ve owned than the new ones. You’re not as likely to get called out for boiler troubles and things like that. New homes are easier to manage.’

Another aspect of his property plan that is unlikely to change with future purchases is the use of his broker, Charles De Mont Property Services. The company negotiates higher than average discounts with UK developers, thereby making it possible to obtain substantial deals for its clients.

One attractive aspect of Charles De Mont and other such brokers, says Gary, is the set fee is quite astonishingly low. ‘You pay the £10,000 fee and they have already negotiated a deal with whichever developer.’ This fee is all that is required of the purchaser to obtain the 15 per cent deposit and up to three per cent stamp duty, regardless of the purchase price. (Those buying properties over half a million pounds will have to stump up the additional one per cent stamp duty.) Through the company’s leverage it is able not only to simplify the process for its customers but also pass on considerable saving.
Prospective purchasers need to keep in mind, however, that exchange of contracts will be required within 21 days of reservation; the buyer, in other words, needs to be able to move quickly and have his ducks in a row with regard to funds, whether he is using cash or a mortgage for the outstanding 85 per cent of Gary’s first experience with his broker was the purchase of a newly built town house in Camden. ‘That was a trial run – I didn’t believe it. I was badgered by my mates. But it all worked.’
With a Kyle-less Footballers’ Wives having just returned with more cartoon camp, Gary now seems interested in broadening his repertoire of characters. Following last autumn’s tense ITV drama She’s Gone, in which he played Ray Winstone’s son, he will feature this summer in a three-part series for the same network. ‘It will involve me in a more dark, edgy role,’ he says.
Meanwhile, his off-camera life is sure to involve more involvement with the property market. And one day he would like to embark upon another type of close-to-home investment: ‘I’d like to set up a business where my Mum and Dad could get involved.’

Charles De Mont Property Services
020 7580 7585
cdemont.com

Actor Gary Lucy, of Hollyoaks and Footballers’ Wives fame, is well on his way to becoming a property magnate. He talks to Johnny Turner about his experiences in the property market

Neither punctual nor late, Gary Lucy strides into the Islington restaurant from a clear, icy night. He looks both like and unlike his TV self; almost impossibly tidy, as if he has been scrubbed. The only possible reaction to seeing him is to smile and give a slight wave. He radiates friendliness and good manners.
We are here to talk about property, something about which he knows quite a bit, but other subjects close to his heart get a look-in too: a new-found fondness for LA, his family, favourite episodes of Friends, his girlfriend Natasha, possible upcoming work. And it is a sign of an in-check ego that he speaks of each of these as if he is the lucky party in the association.
This outlook, a good balance of optimism and caution, has served him well, in both his career and his property investments. With his first high-profile role, as Luke in Hollyoaks, Gary had a sudden surfeit of both money and attention – a recipe for going off the rails, as anyone who’s ever read Heat magazine will know. But he kept his head was lucky to get some good advice from a fellow actor early on, advice which led him straight to bricks and mortar.
‘At first I spent it as I earnt it,’ he says. ‘Then James Redmond sat me down and said, I want you to meet this financial advisor.’
Gary was 17 when he bought a £140,000 London flat on a 95 per cent mortgage. ‘I wish I’d put down more. I sold three years later and made a nice profit.’
After he had bought and sold a couple of properties ‘in the usual way’, Gary noticed something: ‘My friends were buying quicker and they told me how. It seemed too good to be true.’
The ‘how’ turned out to be an association with a broker, through which he has bought his last three properties. And he credits this method of property purchase with both minimising the initial outlay required and streamlining the process of buying, making it possible for him to now own more properties than he would have been able to do otherwise. As a result, an increasing public profile coincided with a growing collection of bricks-and-mortar investments.

Having done himself credit as an actor through the groundbreaking storyline of his character Luke’s rape trauma, Gary left Hollyoaks and soon resurfaced on our screens in the over-the-top Footballers’ Wives as Kyle Pascoe, an agreeable but somewhat dim midfielder with a penchant for garish shirts. Kyle’s troubles would have made Job complain – and his weakness for booze and betting meant his financial house was anything but in order. In contrast, the actor behind the character continued to buy and sell property, building up what is now quite a portfolio for a private landlord: six properties, including the three-bedroom apartment in Repton Park in Chigwell in which he currently lives.
The life of an actor, with its travel and general unpredictability, seems unsuited somehow to managing rental properties. So surely he has a management company oversee them? ‘Not if I can manage it,’ he says. ‘My Mum and Dad help me with two of them and three are with agents.’ He has learnt during his time as a landlord, however: a period early on during which a property was empty for four months made him conscious that an investment property needs to be managed well.
He is certainly sold on newly built properties. ‘I’ve had more trouble with the old properties I’ve owned than the new ones. You’re not as likely to get called out for boiler troubles and things like that. New homes are easier to manage.’

Another aspect of his property plan that is unlikely to change with future purchases is the use of his broker, Charles De Mont Property Services. The company negotiates higher than average discounts with UK developers, thereby making it possible to obtain substantial deals for its clients.
One attractive aspect of Charles De Mont and other such brokers, says Gary, is the set fee is quite astonishingly low. ‘You pay the £10,000 fee and they have already negotiated a deal with whichever developer.’ This fee is all that is required of the purchaser to obtain the 15 per cent deposit and up to three per cent stamp duty, regardless of the purchase price. (Those buying properties over half a million pounds will have to stump up the additional one per cent stamp duty.) Through the company’s leverage it is able not only to simplify the process for its customers but also pass on considerable saving.
Prospective purchasers need to keep in mind, however, that exchange of contracts will be required within 21 days of reservation; the buyer, in other words, needs to be able to move quickly and have his ducks in a row with regard to funds, whether he is using cash or a mortgage for the outstanding 85 per cent of Gary’s first experience with his broker was the purchase of a newly built town house in Camden. ‘That was a trial run – I didn’t believe it. I was badgered by my mates. But it all worked.’
With a Kyle-less Footballers’ Wives having just returned with more cartoon camp, Gary now seems interested in broadening his repertoire of characters. Following last autumn’s tense ITV drama She’s Gone, in which he played Ray Winstone’s son, he will feature this summer in a three-part series for the same network. ‘It will involve me in a more dark, edgy role,’ he says.

Meanwhile, his off-camera life is sure to involve more involvement with the property market. And one day he would like to embark upon another type of close-to-home investment: ‘I’d like to set up a business where my Mum and Dad could get involved.’

Charles De Mont Property Services
020 7580 7585
cdemont.com

 

 

 

 

 

Good schools, higher prices

New research for Halifax shows that house prices tend to be 12 per cent higher than average in areas with the best GCSE performance.
The 20 Local Education Authorities (LEAs) with the highest proportion of students achieving good results in 2004 (five or more A–C grades) trade at an average £25,100 premium to their region’s average house price.
Redbridge had the highest proportion of students achieving good GCSE results in 2004, followed by Sutton and Buckinghamshire; of the top 20 LEAs seven are in Greater London and three are elsewhere in the South East. The area with the highest house prices in the top 20 LEAs is Barnet, with an average price of £336,178.

Market remains steady

The housing market remained flat in February, according to data released by the National Association of Estate Agents (NAEA). The change in average property prices was less than half a per cent both over the last year and the last month, which illustrates the continuing stabilisation of the market.
Although the annual change was a dip from previous increases, the monthly figures represent a return to positive growth following seven months of decreases last year. This dismisses speculation of an impending crash and would instead appear to indicate that the housing market is merely adjusting to a more realistic pace of growth following several years of boom, the report states.
Estate agents across the UK reported a busy month, with the highest number of sales agreed since last summer. There were also plenty of new instructions, maintaining the number of houses available at record levels. However, in comparison the buyer shortage continued, with numbers down significantly on the previous year.
The percentage of sales made to first-time buyers also fell again last month, from 11.7 per cent to 10.1 per cent. It is hoped that the Chancellor’s concession to amend the minimum stamp duty threshold from £60,000 to £120,000 in last week’s Budget will ease the financial burden for many potential purchasers. This could result in an increase in the number of first-time buyers in the market over the next few months, although it is expected to do little to help those in London and the South East.

Recycling has rarely been more important than it is now. With environmental issues frequently grabbing the headlines and a raft of recycling initiatives recently launched, it's becoming easier all the time.

Over 50 per cent of household waste can be recycled or composted, but UK households currently only recycle up to 12 per cent. And with so many methods available to help you recycle your waste, there is little excuse for not doing your bit.
In fact, the solution to minimising your household waste and disposing of it in the right way is about more than just recycling. A now commonly used slogan is 'reduce, reuse, recycle', which suggests that there’s more to the process than simply taking your empties to the local bottle bank (although that's a good place to start!)

Reduce

Before you think about recycling your waste, think about how to reduce the amount of waste produced by your household in the first place. Avoid buying food and products which are heavily packaged – this simple step will avoid you being left with lots of empty packaging to dispose of!

In addition, you can buy products which come in refill packs, such as detergents and some foodstuffs, to help keep your rubbish to a minimum.

Reuse

Get more use out of some of your household items, instead of just throwing them away.

For example, reuse items such as plastic carrier bags. According to the recycle-more website, each person in the UK uses an average of 134 plastic bags each year. This figure could be slashed if we put more effort into keeping and reusing them.

Turn old clothes into rags for cleaning, use old newspaper to clear up after pets, use old glass jars as storage jars – with a little imagination you could do a lot to reduce the amount of waste generated by your home.

Recycle

There are plenty of opportunities for you to recycle. Most local councils now run recycling schemes, and will collect your recyclable waste together with your household rubbish. If you don't already benefit from a service like this, you should soon; the Household Waste Recycling Act 2003 requires local authorities in England to provide kerbside collections for their residents by 2010, so you're entitled to lobby your local council to offer recycling if they don't already do so.

Top recycling tips

The first step is to find out where your nearest recycling facilities are. As well as putting out your recyclables for collection, you can also do your bit by nipping down to the bottle and paper banks when necessary

If you have a garden, think about composting. It's a great way of recycling a lot of your kitchen waste and other natural materials. To get the most out of recycling you'll have to buy a composter, but this shouldn't break the bank and they're available from many DIY and household stores

Parents can consider using traditional terry-towelling nappies on their babies, instead of disposable ones, which generate a lot of waste. Don't worry about being squeamish – you can now buy disposable liners for them!

One of the trickiest aspects of recycling is finding out what can be recycled and what can't. If your weekly shopping contains an assortment of plastic bottles, glass jars, cardboard cartons and newspapers, you need to know what can be disposed of in the right way. The website recycle-more.co.uk contains a really useful list of the symbols you will usually find on household packaging materials. This will help to take the guesswork out of your recycling and will tell you whether a particular piece of packaging is recyclable, and if so, what you should do with it

As well as recycling your own household waste, make the effort to purchase products that are made from recycled materials. To find out more about what products are made from recycled goods, visit recycledproducts.org.uk

Put an end to receiving junk mail, which you'll probably end up throwing away. Under the Data Protection Act you are entitled to opt out of receiving junk mail through the post, and can do so by contacting the Mailing Preference Service. Find out more at mpsonline.org.uk
Consider buying a shredder to destroy any sensitive personal or financial documents that you are disposing of. Given the recent publicity around identity theft, it might pay to prevent your information falling into the wrong hands.

Mixed material packaging like drinks cartons can be harder to recycle than materials such as paper or glass – there is only one suitable facility in the UK – located in Fife, Scotland. You can send your drinks cartons there to be recycled but you have to pay the postage. More information can be found at drinkscartons.com.

Buy on TV

First-time buyers have been famously short of affordable buying options since the market went crazy in the late 1990s. As a result, more and more are turning to buying with friends. For those who would like to buy a property along with someone else but don’t have a candidate for co-buyer, the reality TV world has stepped in.
Producers of a new show, called Come Buy With Me, are looking for people to take part in a series that will select and match up suitable property partners – and match the partners with a suitable property. They will go on ‘property dates’ to check their compatibility and those who prove suited as co-buyers will buy a property together, all under the watchful eye of the show’s property expert.
Those who would like to take part should contact Beatrice Barleon on 020 7013 4517 or email comebuywithme@rdfmedia.

Rental incomes up

Rental yields rose for the second month in a row, up from last month’s figure of 6.76 per cent to 6.82 per cent, according to the Paragon Mortgages March buy-to-let index.
This steady rise in yields comes on the back of a significant pickup in  rents achieved by landlords since last summer, and a stabilisation of property values. The average rent has risen from £9,524 in August 2004 to £10,520 in February 2005 – an increase of just under £1,000 in six months.
John Heron, managing director of Paragon Mortgages, says, ‘With demand for rented accommodation from tenants steady or growing in many areas and this demand not matched by supply, landlords have been able to achieve higher rents and therefore higher rental yields.’
At the same time, the rate of increase in property values has stabilised over the past three months, with a rise of just over 0.7 per cent since November, compared with 22 per cent over the 12 months from November 2003.

Buyer activity up

Several leading sources, including Nationwide, confirm inproving activity and rising prices, according to the Hamptons International property market observations for March. Once again, realistic pricing is said to be crucial. ‘Overpriced properties will not attract buyers,’ the report states, and Hamptons advises those who wish to place their property on the market to go online ‘to check out the real price of property in your area’.

Owners undercovered?

Nearly a quarter of homeowners in the UK admit that they don't have cover to pay off their mortgage debts in the event of their death - and, among first time buyers, this shortfall is soaring by £32 billion* a year, a Friends Provident survey reveals.

And despite almost three quarters of property owners (72%) without adequate cover admitting that they'd lose their home in the wake of family tragedy, the average payment for term assurance is just £2.10** per week - the price of a pint.

According to the research commissioned by Friends Provident, the FTSE 100 life and pensions company, the top reason for not having cover was a belief that it is an unnecessary expense.

Nearly a third of people without life insurance (31%) said they didn't need term assurance while almost one in three (30%) revealed they would find it difficult to meet the payments. One in ten homeowners (11%) admitted they were willing to gamble with their family's financial security while 5% pleaded ignorance to the mortgage protection product. And in spite of the capital's inflated property prices, Londoners are the least likely to have term assurance (30% not covered) while Scots are the most likely to have organized cover to pay off mortgage debts. (only 14% not covered).

Practical advice from the NHBC on making your new home your own
Think of a newly built home as a clean slate. It’s exciting moving into a brand new home untouched by any previous owner’s penchant for shagpile and blancmange wallpaper. A newly built home is yours to personalise as you wish – and the possibilities for decoration are endless. However, it’s a good idea to keep in mind the following advice from the National House-Building Council (NHBC). By applying these hints you will get more from your new home and help ensure that it stays as good as new.

Walls

New homes are often light and airy so the builder will probably have painted the walls with a light paint, which lets moisture work itself out during the drying period (normally nine to twelve months). When you redecorate use a filler to make good any fine lines which have arisen from normal drying out

Ceilings

When redecorating, ceiling finishings like Artex should never be sanded or washed – instead lightly brush them with a clean, dry paintbrush before painting. Then use one or two coats of emulsion. Don’t apply water to these ceilings before this is done as this may spoil the texture

Woodwork

Be aware that new woodwork absorbs a lot of paint or stain on the first application. If painting, always read the instructions and prepare the wood properly first. Never paint on wet wood!

Doors

Try not to paint on hinges and doors as it stops them working efficiently. Don’t be lazy! For the best finish remove door handles and doorplates and replace them when dry.

Windows

Avoid solvent cleaners on PVCu windows as they can damage the plastic.

Hanging

Heavy pictures and mirrors should not be hung on picture hooks – drill a hole through the plaster and insert a wall plug, then use a screw to fix the item to the wall. Make sure the hole goes deep enough (approximately one inch) into the masonry.

Nails and drills

Be careful when nailing or drilling into walls and ceilings to avoid contact with any pipes or electric cables. If in doubt use a cable detector as it can reduce the risk of serious injury.

Brits pay of mortgages earlier

British home owners are paying off their mortgages younger and faster than any time in the last 25 years, according to new research by RBS Offset Mortgages. People are waving goodbye to their home loans at an average age of 48 – younger than at any time since 1979 and faster than at any time in the past decade. Today a third of homes in Britain are owned outright. This mortgage-free future seems to be fuelled by a craving for security – and mortgage holders believe paying the home loan off early is the most important thing they could do to ensure this.

Home contents underinsured

Marks & Spencer Money has revealed that nine out of ten households in Britain underinsure their contents – and the total shortfall nationally is £250 billion.
In what is believed to be the first ever study of its kinds, Marks & Spencer Money spent 260 hours visiting 52 homes across five UK regions. The purpose of the exercise, which was carried out in conjunction with an independent expert, was to assess the ability of householders to estimate the correct value of their home contents. Home owners were asked to give an initial estimate of the value of their home contents. This was followed by a considered self-assessment of each room in turn, excluding fixtures and fittings. Marks & Spencer Money’s independent loss assessor then gave each home owner his expert valuation.
The comparison showed stark differences, and the results indicate that 92 per cent of Britain’s households undervalue their home contents by a third, while the remaining eight per cent overvalue them.

On average, home owners believe that their contents are worth £22,300, while the average expert valuation is £32,400. Based on these findings, thousands of people are at real risk of not being paid in full should they need to make a claim. Malcolm Tarling of the Association of British Insurers says, ‘Insuring your possessions for the right amount is vital. Going from room to room totting up how much it would cost to replace possessions if stolen or damaged could being a few surprises but it is important to do so to ensure that you do not face any nasty surprises if you need to claim.’