At Manse & Garret, we are always looking out for information that can affect our Clients.  Halifax recently claimed that it now costs (on average) £100 less per month to buy a property, than it does to rent the same one, which may have an impact on our buy-to-let Client’s.  In the last year, there has also been a rise in the number of first-time buyers successfully securing a mortgage.

First-time buyers have been able to climb onto the property ladder due to the re-availability of 95% mortgages and a number of schemes, such as FirstBuy, Lend a Hand and the Save to Buy Scheme launched by Nationwide.

At first glance, these schemes seem to be just what is needed for ‘first-timers’ to climb onto the bottom rung of the property ladder.  However, regardless of whether someone has spent years saving up for a 25% deposit, has a generous Aunt willing to put money aside, or manages to get backing from their Local Authority, this still does not guarantee that the mortgage application will be successful.

For a start, a bank or building society will only lend four times the amount of an applicant’s wage.  For those earning the minimum wage (roughly £12,600 per year) the amount a mortgage provider would lend is £50,400.  The average annual salary in the UK is around £26,200, which would generate a loan of £104,800.  This means that those earning the average salary would (at most) be able to purchase a 2 bedroom property in London – but only in areas such as Thamesmead, Abbey Wood or East Ham.  Those on the minimum wage would be able to afford a garage in Prime Central London, a one bedroom houseboat, or a share in a new build property, (which also works out more expensive per month than buying outright).

Realistically, unless you are fortunate enough to be able to purchase property outright, or to earn at least the average UK wage, the chance of owning your first property seems to be slim-to-non-existent.  Whilst there has been a rise in the number of first-time buyers purchasing their first property, I suspect that the proportion of first-time buyers unable to buy is much higher than the proportion who are.  The mortgage schemes available, for some, are most definitely a mirage, as they lack the substance necessary to be tangible.

Fortunately for top-end Buyer’s Agents like us, our first-time buyers are either able to meet the requirements for a residential mortgage, or have the funds necessary to purchase a property outright.  We are well placed to help them secure their first home in the right area and at the right price, as we know how property transactions work in the UK.  If you are looking for your first (or second!) property in London or Brighton, give us a call today to see how we can help you with your search, as we are officially the best Property Finders in London.

Technorati Tags: First time buyers, Mortgage Lending, mortgage schemes, mortgages, property, property market news

Tags: First time buyers, Mortgage Lending, mortgage schemes, mortgages, property, property market news

At Manse and Garret Property Search we search for our clients’ perfect home, whether they are looking to buy or to rent. Most clients are aware that if you have a pet it can be difficult to rent a property, as most landlords will specify on the tenancy agreement that animals, including birds, are not allowed to be kept at the property. 

Of course there are always landlords who will consider tenants with pets, and it is worth checking the tenancy agreement to see whether consent will not be unreasonably be withheld and to contact the landlord to see if they will consider it. It is always worth making the best case for your animal: landlords are much more likely to consider a cat or a small dog, over a Great Dane!

 We managed to secure a beautiful house in Chelsea for a couple who had a much adored (and pampered) dog who was very much a part of the family. In this case, when briefing the search to all the relevant agents we always specified at the beginning that they had a small dog, and that the landlord would need to be ok with this. The landlords of the property that they loved were dog-lovers themselves which meant that they were quite flexible on the issue once we had vouched for the dog’s good behaviour! However what also helped our clients is that they were renting a freehold house, so the only potential obstacle was the owner.

 When renting a leasehold property, as the majority of flats in London and Brighton are, it is not simply the landlord’s discretion which matters – this is because there is an overall freeholder for the building and many of the head leases for properties in London and Brighton specify that there are to be no animals kept in the flats which make up the building.

 This is therefore also an issue for people looking to buy their own flat. You could be forgiven for assuming that if you are the owner of a property, your cat, dog, or parrot can live there with you but this is often not the case; if you own a leasehold property this may be forbidden on the lease. It may be worth contacting the freeholder to see if they will make an exception, however this can be a lengthy process and more often than not the freeholder will say no, as they have to consider the other owners of the building.

 That doesn’t mean that you should give up hope. Last year we found our clients a wonderful pied a terre in Shad Thames in a well-known block. Their dog was not to be a permanent resident, which no doubt helped their case. The management company granted permission for the dog   Having written consent we advised the Porters, who man the reception 24hrs a day, to let them know that the dog was not to be refused entry and that we had the appropriate permission, and the dog happily visits on weekends, so all may not be lost for your property search.

 If you are looking to rent or buy in London or Brighton and have a pet that needs to be taken into consideration, please call the UK’s Best Property Finder on 020 7923 7564.

Technorati Tags: buying, freehold, leasehold, pets, property search, renting

Tags: buying, freehold, leasehold, pets, property search, renting

The government announced yesterday that the HS2 rail-link between Birmingham and London is to go ahead at a cost of £33billion. 65% of the responses to a consultation mentioned property, and at Manse & Garret Property Search we too are interested to see what the affect will be on property prices in London, Birmingham and along the route.

The link is expected to cut journey times between London and Birmingham by 30 minutes. Commuters who traverse this route will benefit from shorter journey times but it is the disruption during construction and the on-going noise created by trains travelling at speeds of up to 225mph in 2026 that is causing concern for property owners.  A Department of Transport Report from 2009 predicted that 21,300 households would experience an increase in rail noise, which in our experience is not what people look for when buying a house.

If your house is under the route then you can expect to receive a compulsory purchase order from the government, however not until 2015. The government has promised that property will be purchased based on the open-market value, “as if unaffected” by the scheme. Owners will also receive a home loss payment of 10% of the property’s value and reasonable costs will be paid. The problem with this is that many of the affected areas have already experienced a decline in house prices because the scheme has been years in the making and it is not clear if these home owners will be bought out at pre-HS2 prices.

Perhaps those in a worse position are those whose homes will not be considered for compulsory purchase, but who will be affected by the noise.  The government says that 3,100 properties will experience a “noticeable” increase in noise. Homeowners will be able to claim for any loss of value on their property resulting from noise, vibration or artificial lighting, but only once the railway has been open for a year. There is no amount of secondary glazing or sound proofing that can help you to enjoy your garden in peace and quiet and it is these homeowners who may have trouble selling their properties even at lower prices. The good and influential people of Primrose Hill were successful in making enough of a fuss so that the proposed route under Primrose Hill was changed so that they would not be negatively affected by vibration from the trains. Unfortunately the good people of Belsize Park have not been so lucky, Adelaide Road, Fellows Road and Eton Avenue are now likely to be affected instead.

What will happen to property prices in Birmingham and London? The value of property in Birmingham is likely to increase, as demand for property in Birmingham increases, becoming more attractive to those who may not have considered commuting this distance before now. As for London, will an extra rail-link into Euston boost property prices in this area? It’s unlikely that there will be that much of an increase; Birmingham is not as enticing a location as Paris and so proximity to this rail-link is unlikely to be at the top of many property buyers’ wish lists.

Technorati Tags: Birmingham, high speed 2, House Prices, House prices in London, HS2, London Buyer's Agents, Primrose Hill

Tags: Birmingham, high speed 2, House Prices, House prices in London, HS2, London Buyer's Agents, Primrose Hill