Buying, selling and letting - July, 2007

Friday, July 20, 2007

Home-loving generation buys close to mum and dad

Much is written about the fact that fewer young adults can afford to buy a property and therefore live at home longer. But home insurer Zurich has found that even when they get on the property ladder they tend to settle nearby.

A study of over 1,000 first-time buyers on behalf of Zurich reveals that six in ten chose to buy a property within 20 miles of their family home, with one in seven (15 per cent) buying a mile or less away from their parents. In fact, such is their devotion to their folks that over half (54 per cent) see them at least once a week and a quarter (24 per cent) cite proximity to the parental pad as key in choosing to buy in the area they did.

Help around the house and home comforts are key reasons for living close to parents, with 47 per cent of those living within 35 miles of mum and dad relying on them for help with DIY. Thirty per cent of the same group use the babysitting service on offer by nearby parents and 16 per cent even use them as a pet sitting service. Over a quarter (27 per cent) head back regularly for a home-cooked meal and more than one in ten (12 per cent) of them drop in to hand over their washing and ironing.
But it’s not only practical support that mum and dad provide. In addition to the 21 per cent who helped out financially with the house purchase, worldly-wise parents are also valuable sounding boards for their new home-owning offspring. Three in ten (29 per cent) seek financial support and advice and nearly a third (31 per cent) say it gives them peace of mind knowing that their parents are only a few miles away. What’s more, three quarters (74 per cent) of first-time buyers say they enjoy spending time with their parents.

Despite all that parental help and advice, it seems that some first-time buyers are leaving themselves wide open to potential trouble. More than one in ten (13 per cent) have not invested in contents insurance for their current property, a similar number (11 per cent) have not set up council tax payments, nearly one in five (18 per cent) have not informed the bank of their change of address and only a third (31 per cent) have installed a burglar alarm as a security measure.

Regionally, first-time buyers in the North East are likely to stay closest to home, with 78 per cent buying within 20 miles of mum and dad. Those venturing furthest live in London, where a third (35 per cent) buy over 100 miles away. And it’s a similar story in terms of getting together, with 41 per cent of people from London and the South East only seeing their parents once every few months or less. In the North East however, two thirds (68 per cent) see their folks at least once a week.

Martin Hall, Head of Personal Lines Underwriting at Zurich Insurance said, ‘Buying your own home is one of the biggest changes people encounter. Our research shows that people are making the move onto the property ladder, but aren’t quite ready to fully cut the apron strings. Adult children are choosing to stay close to the family home not only because they enjoy spending time with their parents, but also because they genuinely value the practical support and advice that they offer. But it’s quite concerning that so many are neglecting to have contents insurance to protect their property. With so many things to consider when buying a property, and when you’re new to the game it can all be a little overwhelming, but making sure you’re covered is one of the most important aspects.’

Buying

posted on Friday, July 20, 2007 2:23:37 PM (GMT Standard Time, UTC+00:00)

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Property power

Mortgage adviser Lawrence Garry says new government regulations could cost you

With the government’s forthcoming Home Information Packs (HIPs) I thought I would use this week’s column to cut through the red tape to share my thoughts on what’s going on as they could have financial implications for homeowners.

Getting HIP for your home

Contrary to the first impression HIPs are not some new craze or fad to describe your home or something you do at home. The controversial Home Information Pack (HIP), despite the fact that it has been mooted about for around two years, means little to nothing to the majority of home owners who I have come across.

If you have been following it from the start you will know that HIPs were designed to speed up the home buying process by making sure the seller has information about their property ready before marketing the property for sale. HIPs require homeowners to provide a pack with information on a range of areas covering ownership of the property and the supporting documents. The additional requirements to provide a report on the condition of the property for sale and energy performance certificates of the likely energy costs of occupying the property became the basis of debate and led to major concessions before the scheme could be introduced.

The principles of home information packs and energy performance certificates are sound. I agree with more transparency in the buying and selling process and greater accountability of our actions for the state of the environment. However I do not necessarily agree with these schemes. The natural state of the market serves to keep buyers and sellers working together on property transactions. Home information packs will not change whether a buyer is gazumped. If a third party wants to pay more for a property they will do so whether the buying process is two months or four weeks. In terms of any justification for the policy under the Misrepresentation Act, well that’s what solicitors are paid for, to inspect the title of a property before you purchase it to ensure you have not been misled by the sales pitch.

In terms of the second premise of the regulation, environmental accountability, I understand the need for energy performance certificates to bring us in line with European Union regulation but telling a homebuyer that the property they are about to buy has been rated in band C or D for energy efficiency will mean very little. It is unrealistic to expect people who are struggling to get on the property ladder due to a shortage of properties and spiralling property prices to think about the environmental impact of their decision before putting a roof over their family’s head. Besides if someone bought a modern apartment with a good energy performance rating then packed it full of modern electronic appliances and gadgets that flood the environment with CO2 emissions what bearing does their property’s EPC have in reality? I am not convinced that energy ratings for homes will help cut carbon emissions and family fuel bills.

Lets not forget the costs involved. In order to provide an energy performance certificate and home condition report for your home you would have to appoint an approved professional who will charge at least £400. This is in addition to the agent’s commission for selling it for you. Most sellers will simply add this to the cost of the property and the buyer will end up picking up the tab.

The concessions to postpone the introduction of home information packs and energy performance certificates from 1 June to 1 August, remove the need for home condition reports and limit the initial introduction to properties with four bedrooms or more signifies a lack of support for the policy.

Lawrence Garry writes as a property investor and is a director of mortgage adviser, Milestone Financial Services. Email him your questions for future columns at lawrence.garry@milestonefs.com. Also call 020 7719 0171 or visit milestonefs.com

Buying | Selling

posted on Friday, July 20, 2007 2:11:36 PM (GMT Standard Time, UTC+00:00)

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Retirement

“I don’t know why we didn’t downsize sooner”

When retired couple Duncan and Elsa Mattey decided to downsize from their large four bedroom home of 11 years, they were keen to stay in the picturesque market town of Tenterden. Fortunately, they found the Elmfield Place development built by Appledore Developments Ltd was just the low maintenance lifestyle that they were looking for.

Duncan comments: “Our previous house, which also had an acre of formal garden, was too big to manage and although we had some help, we felt it was time to move on. Our new duplex apartment is really spacious and although we sold a lot of our furniture at auction, we were still able to move one or two pieces of antique furniture into our new home. Elmfield Place really is very well designed and its close proximity to local amenities is ideal. I don’t know why we didn’t downsize sooner and I would certainly suggest to anyone else who is thinking the same not to leave it too late!”

Elsa adds: “As a new home, it is also nice to know that there will be no maintenance to take care of for some time. We also both like that there are two separate outdoor areas, in the form of the courtyard garden on the lower floor and terrace on the first floor. Moreover, with the accommodation over two floors, it also still retains the feeling that we are in a house.”

Yvette Brotherton Sales and Marketing Director for Appledore Developments Ltd comments: “I’m delighted to hear that Duncan and Elsa are so happy with their new duplex apartment. We have seen a sharp increase in the number of purchasers who are downsizing and the apartments at Elmfield Place are ideal for those looking for a low maintenance lifestyle. Furthermore, as a gated development, purchasers can lock up and leave without needing to worry about the security of their new home. There is just one duplex apartment remaining at the scheme, which is the new Show Home and I would recommend that purchasers make an appointment to view at their earliest opportunity.”

The market town of Tenterden boasts many reputable schools, restaurants and an array of culture and history, especially the High Street, which is lined with a host of traditional and independent shops. For commuters, Elmfield Place is ideally located for the M20 for accessing both Ashford and Maidstone, where further amenities can be found. Gatwick Airport is just 45 miles away or alternatively, Ashford International is a mere 13 miles away and enables passengers to join Eurostar for links to the continent.

The immaculate specification includes luxurious designer kitchens with a wealth of integrated appliances, including a fridge/freezer, washer/dryer, dishwasher, microwave and stainless steel oven. Opulent Italian floor tiles complete the contemporary finish.

The remaining luxury apartment at Elmfield Place is priced at £450,000. For further information contact the appointed selling agents, Humberts on 01580 765858. Alternatively, contact Appledore Developments Ltd on 01732 469888 or visit the company website at www.appledoredevelopments.co.uk

Situated in a prime location opposite Cliffs Pavilion, Station Road, Pavilion Heights comprises an exclusive collection of 30 one- and two-bedroom luxury apartments designed for the over-60s.
Boasting six glass fronted deluxe apartments with sea views that overlook the Thames Estuary, the development offers contemporary design elements, with the unique white building featuring a part canopied roofline and Essex weatherboarding. Many apartments come with full height windows, and French doors leading onto wide glass-fronted balconies.

With specifications and designs that are second to none, residents at the scheme can look forward to a concierge, onsite Utopia beauty treatment centre, fitness room and secure underground parking.
Internal specifications include plasma screens, DVD and DAB, together with surround systems and mood lighting. Designer kitchens come with luxury appliances including stainless steel electric ovens and ceramic glass hobs with extractor hoods, integrated fridge/freezers and washer/driers, and the bathrooms feature Contemporary Jacuzzi or Ideal Standard sanitary ware in white with chrome fittings. Aluminium windows and European wall tiling are also included in the purchase price.
Two communal lifts service all floors and a well appointed communal sun lounge/library will offer residents refreshment facilities. Residents will also benefit from a 24-hour care line, video door entry system, alarm systems and mains operated smoke detector.

Southend-on-Sea is within easy reach and Westcliff on Sea mainline station is close by with a journey time of around an hour into London’s Fenchurch Street.
Local road routes include the A127 which links the A12/M25, and the M11 and A13 are easily accessible.
Early enquiries are advised. To register your interest, contact 08702 242535 or visit dedman.net.

Domestic Chores A Burden For Relatives

The responsibility that people feel for their older relatives has been revealed in a recent survey, with 70% of those questioned spending between a quarter and all their time doing chores for their older relatives when they visited, rather than enjoying quality time with them.

Instead of spending time catching up on their news, tucking into a delicious meal, or going for a stroll, people are spending their time doing chores such as cleaning (40%), sorting bills and paperwork (23%) and fixing problems around the home (26%).

Keith Rofe used to spend at least 10 hours a week with his mother, Eileen, making general repairs to her home in London. Fifteen months ago, Mrs Rofe, moved into Denham Garden Village in South Bucks and the support on offer at this new development has allowed Keith to spend more quality time with his mother, enjoying her company, rather than doing tasks around the home.

Keith comments: “Now, instead of spending my time working in the home, Mum and I can go out for walks, enjoy a meal or just sit down and properly talk to one an another. It’s changed our relationship, bringing us much closer and bringing me peace of mind as I don’t have to worry about her so much, because I know that even if I’m not there, someone will be there to help her if she needs it.”

The handyperson and domestic care and support services on offer at Denham Garden Village unburden the family of mundane activities like cleaning, ironing and food shopping from just £11 an hour, enabling visitors to take pleasure in spending more time with their loved ones when they visit.

From enjoying a meal at the Café Bar, taking a stroll around the 30 acres of private woodland or catching up with them in the comfort of their own home, Denham Garden Village provides many alternative activities. The development also offers a Health and Fitness suite for more energetic activities, such as swimming and exercise classes.

For further peace of mind, Denham Garden Village provides an onsite GP surgery and a round the clock Support and Care team at the 326-home development. Two bedroom apartments and three bedroom houses have been released for sale, with prices starting from £315,000.

For further information, please visit www.denhamgardenvillage.co.uk or call 01895 836333.

Buying | Selling

posted on Friday, July 20, 2007 2:10:14 PM (GMT Standard Time, UTC+00:00)

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Friday, July 13, 2007

That sinking feeling

Subsidence is on the rise. So what do you do?

Subsidence claims have been rising rapidly since the mid-1970s when claims amounted to £5m – last year the figure came to over £350 million. With 2006 being the hottest and driest since records began over 350 years ago and with 2007 already looking to beat that record, Habitus surveyors are already reporting increasing examples of earth movement, possibly due to climate change.
One fundamental problem is that the majority of houses built before 1930 have foundations only 0.6m deep, as opposed to today's recommended depth of one metre (1.25m on clay). Even those homes built before 1950 can only go down 0.7m. So when hot weather and thirsty tree roots drain the ground of moisture, the soil becomes less compact and the house on top starts to shift.
Worst-affected areas are those south of an imaginary line that stretches from the Severn to the Humber. Here, the predominant soil is clay, which has a natural propensity to shrink when moisture levels are low. Since 1980, more than 150,000 houses in this area are estimated to have suffered from subsidence.
While many people are aware of ground instability problems in coal mining areas, most are not aware that the extraction of a number of other minerals has also taken place in almost every county in England and Wales. Apart from the coalfields, there was extensive metalliferous mining across Devon and Cornwall, the Mendips, Wales, Pennines and the Lake District; as well as salt mining across Cheshire, Staffordshire and Droitwich.
There are also extensive limestone mines across the Black Country in the West Midlands. Less well known are the sandstone mines of West Yorkshire, Lancashire and Sussex, chalk mines throughout the South East and even sand mines in South London. Such mining activities can result in a legacy of potential instability,
particularly from shallow workings, abandoned shafts and adits, which may not be immediately apparent to a property owner or prospective buyer who does not commission a survey with a ground instability report.
There have already been a number of well-publicised cases of houses collapsing: including past chalk mining which affected 2,000 homeowners in Reading, Berkshire; a school closure in Hatfield, Hertfordshire: and a recent collapse which resulted in the demolition of five homes in Bromley, Kent.
Now in a move to assist homebuyers in making the right purchase, Habitus has launched a free guide entitled What Every Homeowner Should Know About Subsidence. You can get a copy of the guide by emailing your name and address to lurwin@habitus.co.uk or calling 0800 634 3001.
habitus.co.uk

Buying | Letting | Selling

posted on Friday, July 13, 2007 2:01:39 PM (GMT Standard Time, UTC+00:00)

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