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Em Morley

HSBC announces new mortgage products

Published On: July 30, 2015 at 4:08 pm

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Categories: Finance News

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HSBC has today become the latest provider to announce changes to its residential mortgage range.

Following new products revealed yesterday by TSB, the lender has cut rates by as much as 0.4%.

Changes

The fresh product range includes a new two-year fix at 1.69% for as much as 70% LTV, down from 1.74%. Also, there will be a continuation of a two-year discount rate at 0.99%, which will be available from 60% LTV.[1]

Other additions to the new range include two year fixes at 60% LTV at 1.89% and 70% LTV from 2.69%. The Bank’s three year fix at 85% LTV now begins from 3.09%, with its five year fix reducing from 3.44% to 3.29%.[1]

Agreement

Additionally, the bank has agreed a deal with London and Country that will see the mortgage broker offer HSBC’s full residential mortgage range to their brokers from 3rd August. The move comes after another successful partnership with Countrywide, which began last year.

Tracie Pearce, Head of Mortgages at HSBC, said, ‘we are committed to helping customers take their first step onto, or move up, the property ladder and these new lower rates will be welcome, as will the news that we are making these rates available to more people.’[1]

‘This is an exciting time for HSBC and we look forward to working closely with London and Country. We believe our products will resonate with their customer base, enabling even more customers to benefit from our range of products. It is entirely due to our successful partnership with Countrywide which has enabled us to extend our relationship to London & Country, and we’re committed to continuing to build on this as we welcome new broker partners,’ Pearce added.[1]

HSBC announces new mortgage products

HSBC announces new mortgage products

Appeal

David Hollingworth of London and Country also said, ‘We’re sure that the broad range of competitive HSBC mortgage deals will carry significant appeal for our advisers and their clients. HSBC has shown its commitment to UK mortgage borrowers through the sharply priced products it has delivered time and again. That, coupled with our award winning advice, is sure to add up to a compelling proposition for our customers.’[1]

‘Given the appetite of HSBC, the successful completion of this next phase should pave the way for a broadening of access to other members of Legal & General’s distribution.’[1]

[1] http://www.propertyreporter.co.uk/finance/hsbc-cuts-its-fixed-rates-by-up-to-04.html

 

Britain’s Most Expensive Council House on the Market for Over £3m

Two rundown council houses in Southwark, South London, bought by a property investor in 2013 are set to sell for over £3m each.

When 21 and 23 Park Street, Borough were sold, it was named the most expensive ex-local authority sale in history. The investor purchased the properties for £2.96m.

After an 18-month renovation by Camu & Morrison, the first house is back on the market, priced at £3.35m.

Southwark Council granted planning permission for the refurbishment project, including new conservatories and replacing balconies with “winter gardens.”

It is believed that the second home will be put on the market soon. If both properties sell at asking price, the investor will have doubled their money.

Demonstrators from campaign group, Housing Action Southwark & Lambeth, briefly occupied the Grade II Listed building, stating that the Council was involving itself in social cleansing by selling off council homes to developers, who are creating top-end homes for wealthy buyers.

Southwark Council says that the money raised will build around 20 new council homes in the borough.

Councillor Mark Williams, Southwark’s Regeneration and New Homes Chief, defends the sale, saying the Council secured the best possible price at the time.

He continues: “Rather than spending hundreds of thousands of pounds on refurbishing just two homes, this money has allowed us to invest in our council homes.

“Southwark has an ambitious plan to build 11,000 new council homes for our residents, with the first 21 opening in Bermondsey very soon.”1

The Council sold the Park Street properties in a state of serious disrepair after years of neglect. They were placed on English Heritage’s at-risk register and were held up by scaffolding.

The homes are in an ideal location, close to Borough Market, the Shard and Bankside.

According to Zoopla, the average house price in the area is just above £580,000, up 20.19% in the last two years.

The four-bedroom townhouse now on the market, built in 1830, is being marketed by agent Domus Nova, which describes it as having undergone “one of the most comprehensive and unique rebuilds and refurbishments in recent years.”

The description adds: “This brave and playful home oozes creativity and personality throughout. This Georgian home will engage every sense, combining striking colourful details and textures with well-balanced architectural references throughout.”1

1 http://www.homesandproperty.co.uk/luxury/property/britains-most-expensive-council-houses-sale-ps3-million-each-southwark

Online estate agents to make up 50% of market by 2020

Published On: July 30, 2015 at 3:06 pm

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Categories: Landlord News

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An interesting prediction by Urban.co.uk suggests that online estate agents could account for half of the market by the year 2020.

Since its inception in 2005, the website has brokered in excess of £97.5bn worth of successful deals.

House-hunting online

Adam Male, Founder of Urban.co.uk, believes that as a result of changing trends, the public will eventually be drawn to house-hunting online. He said, ‘the online format negates the need for expensive fees, whilst still offering customers as much expert knowledge and advice as required.’[1]

‘We are extremely proud of the Urban brand and believe that our site will continue to develop and evolve, leading the industry over the next decade,’ he added.[1]

The website allows home-sellers to make an account and upload images and details of the properties that they are looking to sell. Next, the agent sends a surveyor to assess the house within 1-3 working days.

Online estate agents to make up 50% of market by 2020

Online estate agents to make up 50% of market by 2020

Process

After the valuation and surveying process has taken place, the website will advertise the property on sites such as Rightmove, Zoopla and Primelocation. Mr Male said, ‘we are extremely proud of the Urban brand and believe that our site will continue to develop and evolve, leading the industry over the next decade.’[1]

‘Everyone within our team is highly qualified, with credentials recognised by the National Association of Estate Agents and happy to help with negotiating the best price for your property.’[1]

[1] http://www.developmentfinancetoday.co.uk/article-desc-4189_online-estate-agents-to-be-50-of-the-market-by-2020?utm_campaign=Landlords%20%26%20Property&utm_content=18579851&utm_medium=social&utm_source=twitter#.Vbn-NpNVhBd

 

Generation Rent Could Go Under after Funding is Pulled

Published On: July 30, 2015 at 2:54 pm

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Categories: Landlord News

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Tenant group Generation Rent could go under unless it raises enough money from supporters by the end of August.

Generation Rent Could Go Under after Funding is Pulled

Generation Rent Could Go Under after Funding is Pulled

The organisation says it “unexpectedly” only has two months of funding left.

A spokesperson confirms that this is due to the Nationwide Foundation withdrawing its funding.

In 2013, the Nationwide Foundation offered a grant of £725,000 to Generation Rent, stating that it would cover three years’ worth of business development and salaries.

The Nationwide Foundation was set up by the mortgage lender and operates independently. However, many were confused by the offer, as Generation Rent has often battled private landlords and letting agents.

The group has fought issues such as letting agent fees and rent controls.

Generation Rent must raise £60,000 by 31st August, it says.

This would allow it to continue its work with renters, while “applying for grants and building a sustainable organisation.”

It says that if it does not raise this money within the next month, “there is a real danger that the campaign will simply vanish, and with it the national voice of private renters in the media and political debate.”1

If it does not reach its target, another option would be to lay off staff and keep the group as a volunteer-run organisation.

By yesterday, Generation Rent had raised £5,802 towards its £60,000 target on crowdfunding website, People Republic.

1 http://www.propertyindustryeye.com/generation-rent-fights-to-stay-alive-after-nationwide-foundation-pulls-funding/

 

 

 

 

 

 

British Estate Agents Left Without Jobs in Dubai

A well-known estate agent in Dubai that has recruited staff from the UK has gone bust.

British agents that were recruited this year, hoping for a better lifestyle and tax-free earnings, have lost their jobs, including some that started work this month.

Some new starters may never have received a pay cheque and are now stranded in the city.

At least one British agent sold a business in the UK to take his family to Dubai in search of a new life.

British Estate Agents Left Without Jobs in Dubai

British Estate Agents Left Without Jobs in Dubai

Other British agents who were due to start soon may have already flown to Dubai, and are now without jobs.

S & K Estate Agents, also known as Smith & Ken, went on a major recruitment mission this year, trying to tempt experienced British agents in a bid to improve its customer service.

One of the UK recruitment firms that found staff has been left unpaid for placing agents.

Rayner Personnel’s Joshua Rayner, says: “I am out of pocket to the tune of two placements.

“As far as I was concerned, Smith & Ken was a well-established agent in Dubai, so this has come out of the blue.

“All I know is that when one of the people I placed went into work one morning, he found the doors shut without any explanation.

“I feel extremely sorry for him and those other people who were sold a dream.”1

One of Rayner’s candidates started work on 1st July and another on 7th July. A third was due to begin next week.

Several other British recruitment companies are also believed to have found candidates.

Allegedly, a total of 80 people have lost their jobs at Smith & Ken offices in Dubai and Los Angeles, and a liquidator has been appointed.

A statement on behalf of one of the shareholders reads: “Unfortunately we have had no other choice but to file bankruptcy and hand over accounts and any remaining income to our liquidator.

“Simply put, the revenue being generated by the business drastically reduced over the first half of 2015, without enough income to cover operational costs.

“Additional support, advertising, incentives and training had been provided to existing and new agents to try and aid their growth and development to increase sales.”

The statement says that Smith & Ken had embarked on the recruitment drive in the UK as “a last resort.”1

Apparently, poor service levels had caused complaints, which deterred repeat business and gave the firm a bad reputation.

The business is said to have been run remotely.

Although the Dubai housing market is competitive, the number and value of property transactions is dropping.

1 http://www.propertyindustryeye.com/british-estate-agents-in-search-of-better-life-stranded-in-dubai/

Homeowners Must Know Their Neighbour Rights

One in three homeowners in Britain have argued with a neighbour after they made changes to their property without consulting them.

New research has discovered that homeowners do not understand their rights regarding objecting unwanted development of their neighbours’ house, causing thousands of disagreements every year.

The most common issues that neighbours bicker about are removing or repairing fences at 37%, boundary disputes at 33%, chopping down trees at 30% and building an extension at 18%.

10% have also argued with their neighbours about painting the outside of their property, similar to Zipporah Lisle-Mainwaring from Kensington, London, who painted red stripes on her house, upsetting her neighbours.

Despite 81% stating they are not fully aware of their legal rights to object changes, just under half said they would want to complain to their council and one in ten would want to take legal action if they weren’t consulted about a change to their neighbours’ home.

Property law specialists, Slater and Gordon, conducted the survey of 2,000 homeowners, revealing the confusion surrounding how and when to consult with neighbours over planned changes and what people should do if they oppose changes.

One in ten property owners said they would not consult their neighbour before making a change.

Homeowners Must Know Their Neighbour Rights

Homeowners Must Know Their Neighbour Rights

48% of homeowners are put off confronting their neighbours because of complex property language and over half (54%) said they would not be confident about the legal process involved in challenging their neighbours.

Additionally, 47% of respondents said they would not know who to speak to if they weren’t happy with a change.

Head of Residential Property at Slater and Gordon, Samantha Blackburn, says: “I’m not surprised that so many people don’t know what to do if they are unhappy about changes their neighbours are making to their home.

“It’s always preferable to be able to resolve minor issues, such as replacing a fence or cutting down a tree, informally.

“However, when it comes to major changes to a neighbouring home, or disputes over boundaries, it may be necessary to contact your local authority and in some cases take legal advice.”

The study also found that 19% of homeowners would expect their neighbour to consult with them over a new garden structure, such as a shed, play house or tree house. Three in five expected their neighbour to notify them over plants that grow across the boundary between houses.

Homeowners are extremely concerned about their neighbours’ building plans blocking the light into their homes and gardens, with two thirds saying that their main concern is a neighbour’s extension blocking their light.

Five in eight would expect their neighbour to consult with them over any issue that could affect their boundary, such as a fence.

Furthermore, 43% said they would want to discuss access rights to their property and 40% said the noise and mess of builders causes concern.

Getting along with neighbours is a priority for most people, as 94% said they want a good relationship with the people next door.

However, just a quarter said they would consider their neighbour a friend.

Blackburn continues: “The best way to resolve issues between neighbours is to try to avoid having them in the first place so I always advise my clients to be friendly and respectful towards their neighbours.

“Of course in some cases, such as with fences, overhanging trees, shared gardens or rights of access, homeowners will need to speak to one another about how to rectify certain problems.

“In my experience as a property lawyer, I have found the best way forward in these situations is to keep the channels of communication open. However, if neighbours cannot agree on how to resolve these issues it may be necessary to take legal advice.

“Many homeowners still don’t know much about their rights when it comes to opposing local development or even their neighbours’ plans to add to or alter their homes.”

She urges: “I would advise anyone concerned about any of these issues to contact their local authority in the first instance and ask for advice from a planning perspective.

“Often it’s as simple as lodging your opposition and outlining the reasons for this. It won’t always stop the change, but you can take the opportunity to ask your local authority for further information about what is planned, timescales and whether the change will be discussed at an upcoming council meeting.

“I would also advise that they liaise with their lawyer who should be able to do some research and look at the title to the neighbouring property and see if there is anything in those title documents that means the proposed alteration needed consent from anyone before it took place.”1

The top ten reasons for arguing with a neighbour:

  1. Repair or removal of a fence
  2. Boundary dispute
  3. Chopping down trees or shrubs
  4. An extension or change that would block out light
  5. Access rights to the property
  6. Noisy and/or messy builders
  7. A built structure in the garden
  8. A change that the neighbour makes that could lower the value of your property
  9. Painting the outside of the home
  10. Putting in a new driveway

1 http://www.slatergordon.co.uk/media-centre/press-releases/2015/07/homeowners-urged-to-know-their-neighbourly-rights/