Leasehold Concerns

Government Leashold Selling Concerns for New Homebuyers

First of all, there are Government leasehold concerns for homebuyers which shows that ground rents have increased.

According to the website The Negotiator, the follwing research was carried out:

“Research by the NAEA earlier this year suggested that 62% of leasehold house owners in the UK felt they had been mis-sold their properties.”

As a result, the Government is looking to stop the sale of unfairly sold leasehold houses.

This is following the recent scandal of over the 100,000 home owners who were found trapped in agreements that:

  • charged high ground rents
  • enforced unfair conditions
Leasehold Concerns
Leasehold Concerns

Government Leasehold Concerns Amount

The Government have collected data on leasehold properties in the UK.

The statistics show that there are approximately 4.2 million leashold properties in England.

Furthermore, out of those 4.2 million leashold properties, approximately 2.9 million of them are flats.

Several leasehold homeowners are facing increasing ground rents.

The Government have made reports of such claims and plan to act in the Landlord’s defence.

Typically, Freeholders make alterations to the properties by using ground rent fees.

However, the escalating ground rents are not helping leasehold owners to sell their properties.

Waiting for Government Change

In the meantime, Landlords can take action while waiting for Government change.

The process of implementing an act/law can usually take some time.

How long does it take? Visit the UK Parliament website for more details.

What are the options while you wait?

Options

If the option to sell your property is not currently available, renting your property is an option.

As a result, do your research to find the best possible solution to cover amounting costs.

An option that we offer at Metropolitan and Crown Estate Agent Ltd is the Guaranteed Rent Scheme.

It is an option that can offer “peace of mind” with a consecutive rental payment while you sort out your finances.

Head on over to our main website to find out more about our Guaranteed Rent Scheme.

Interest Only Mortgages

Interest Only Mortgages

First of all, it is 2018, and interest only mortgages have dropped by almost half since 2012.

UK Finance have revealed figures that state these types of mortgages have fallen by 46% since 2012.

According to Property Investor Today, “Currently there are 1.7 million outstanding interest-only mortgages (including partial interest-only)…”

“…Loans at these higher loan-to-value ratios now account for 13% of the total, in comparison to 16% in 2016 and 36% six years ago.”

They also state, “In separate UK Finance research, it was also revealed that of the one million interest-only loans set to mature by 2020 that were live at the end of 2012, there are now only approximately 200,000 that remain.”

As a result, these figures show that many borrowers resolve their mortgage payments ahead of schedule or switch to a repayment mortgage.

Especially relevant, if you do not understand the terms within the article, here is a link to Keystone IMC Ltd website.

This link will help you to better understand mortgage related terms and phrases with thier glossary of mortgage terms.

interest only mortgages
Interest Only Mortgages

Interest Only Mortgages Explained

Borrower – person taking mortgage to buy a property

An “Interest Only Mortgage” is a mortgage where the borrower pays only the interest rate of the mortgage and not the full repayment.

The advantage of is that it can help the borrower reduce their financial outgoings.

The borrower only pays the interest on the mortgage through monthly payments for a term that is fixed on an interest only mortgage loan.

The disadvantage is that the borrower will have to pay a lump sum of the repayment amount after the payment term.

Most noteworthy, if provisions for paying this accumulated amount is not in place after the term is over:

1.) Some make a lump sum payment

2.) Some refinance/re-mortgage their homes

3.) Some begin paying off the principal of the loan.

The principal of the loan is the money that you originally agreed to pay back.

So, for those who do not understand mortgages, we hope this post has helped

Furthermore, if you might find it hard to make the repayments, the interest only option may help you.

In addition, if you can afford the full mortgage repayment, you may want to choose that option.

As a result, this will help you to avoid amounting and considerable payments owed in the future.

Conclusion of Interest Only Mortgages

In conclusion, it is important to understand interest only mortgages and your mortgage options.

Most of all, check back in the future to read more about mortgages and other property related posts.

UK Housing Crisis

UK Housing Crisis Affects Britain

First of all, there is no surprise that a UK housing crisis is affecting the country.

Over the years, there has been a huge influx of foreign property investors that have caused property prices to rise.

As a result, this has created an adverse affect on those looking to buy their first property.

Rising house prices over the years have caused first time buyers to find it difficult to afford a property on the market.

According to Filipa Sa (senior lecturer at King’s College London) conducted research concluded;

Foreign investment does not just raise the price of expensive homes, it has a “trickle-down” effect on the rest of the market.

For her research, Filipa Sa analysed Land Registry data.

She found that there was a rise of 1 per cent in the share of property sales to companies registered overseas.

This raised prices in the local area around Kings College by 2.1 per cent.

Filipa Sa’s research was noted by the Independent website.

UK Housing Crisis

uk housing crisis
UK Housing Crisis

The Government have come under pressure to tackle and resolve the UK housing crisis.

It seems like properties have been acquired through foreign shell companies.

As a result, something must be done to resolve this housing crisis in the UK.

Therefore, it is only right that the UK Government needs to intervene.

Affecting Rent Prices?

In addition to the housing crisis, property rental prices seem to continue to rise.

The rise of rent prices will have a knock-on effect on many people’s finances living in the UK.

There is another blog entry explaining this in a bit more detail named “Rent Prices Rising“.

Do you have any views on the UK housing crisis?

If you do, kindly leave your comments below.

Lifetime Mortgages

Lifetime Mortgages

First of all, lifetime mortgages in the UK became quite the trend in recent years.

A lifetime mortgage is essentially a form of equity release.

This is attractive to the over 55’s living in the UK looking to release equity from their home.

lifetime mortgages
Lifetime Mortgages

Lifetime mortgage benefits

As a result, there are a few industries that have benefited from this occurring.

The industry sectors that have seen the lifetime mortgage benefit them are:

  • Manufacturing
  • Construction
  • Health
  • Social care

The amount of money pumped into the UK economy since the lifetime mortgage was introduced is in excess of £3 billion.

The manufacturing industry benefited the most from the equity release scheme at £1.32 billion.

Next in line was the construction industry with an injection of £349 million.

Both the health and social care sectors were boosted by £203 million.

Consequently, this money has helped generate jobs in the above UK industries and boosted the overall UK economy.

Lifetime Mortgages UK

According to Property Investor Today, lifetime mortgage sales tripled from 2013 to 2017.

These figures will most likely rise in the years to come, as long as this opportunity for over 55’s is available.

On the contrary, the lenders have tactfully positioned themselves to make a significant amount of money through repayment schemes.

This scheme has been well thought out by the financial services of the UK to ensure money is being generated within the financial industry and the UK economy respectively.

You can read the detailed figures of equity release spending on the Property Investor Today website.

In conclusion, equity lenders have cashed in on a well thought out equity scheme named “Lifetime Mortgages” that benefit the lenders and the UK economy.

The future will reveal how effective this lifetime mortgage scheme has benefited the UK nation.

To read about other mortgage related topics in our blog, visit our blog post about equity release.

Rent Prices Rising

Rent Prices Rising 2018

To begin, rent prices rising is on the cards for 2018.

At least that is the prediction.

Forecasts for the months ahead have been provided by companies like NAEA Propertymark and ARLA Propertymark.

As a result, agents will be affected by the rental market with the 0% fee structure being imposed.

The Property Investor Today website suggests such claims.

rent prices rising
Rent Prices to Rise for 2018

Rent Price Rising Predictions

Consequently, the rise of rent has an effect on the property market.

What kind of effects might this prediction cause?

First of all, David Cox, chief executive of ARLA Propertymark reckons this will have a positive effect on the rental market through planned, government regulations.

Which regulations? One being control of the rental market through estate agents.

Analysts believe that this will make the rental market stronger and more professional.

For first time buyers, there may be a positive outcome.

Due to these regulations, there might be stamp duty relief for first time buyers as well.

Ultimately, there is no certainty of how the rise of rent will affect the UK property market in 2018.

In conclusion, there are predictions that the rent prices will rise in 2018 making the rental market stronger and more professional.

How will this affect landlords, agents and tenants?

We will have to wait and see how this all pans out.

More statistics can be found on the Property Investor Toady website regarding this topic.

 

Check out our other Property Finance News posts:

Property Finance News