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The process of getting your very first property is an exciting time. Whether you are doing this alone or with somebody else, it’s definitely a time to celebrate. However, it isn’t always easy to put your foot on the property ladder.

At Fisher Wrathall our blog this week looks into first time buyers and how to take your first steps into the Lancaster and Morecambe housing market.

Costs of Buying

Despite all the excitement of becoming a fully-fledged homeowner, there are a few things to consider. One of the biggest is costs with several payments to make during the course of buying. Most often this includes:

• Property Price
• Deposit
• Stamp Duty
• Survey Fees
• Mortgage Arrangement
• Solicitors
• Any Decorating and Furnishing

All of these costs will vary massively depending on your position, house price and deposit. However, they all need to be considered. This will keep you ahead of the game and make sure that you are prepared for the process.

Bank of Mum and Dad

When it comes to buying a house, securing the deposit is by far the hardest part. Once you’ve decided that owning a home is for you then it’s important that all finances are in place. In most cases, the bank of mum and dad is the place to go.

It’s no wonder that parents have become the 10^th biggest mortgage lender in the UK. On average £24,000 is gifted or loaned to children from their parents, giving them the boost they need. The total contributions come to an estimated £6.3 billion which is huge.

Another way that parents can help is to act as guarantors. This can be risky and shows just how far some families will go to give their children the best start in the ladder. It’s easy to see why they do this with rising costs of living, rent and more.

Saving Over Time

It’s often harder than it looks, but saving over time is the best option for many. Not everybody has a helping hand available and it can take years to build up a sizeable deposit. The Mortgage Advice Service has some great tips on how to do this, from looking into a savings account to working out how much you can safely put aside each month.

Luckily, there are some other options available. Schemes such as Help to Buy and Shared Ownership are around and offer an alternative. On top of this, more banks are starting to offer 95% mortgages. This means that rather than putting 10% down, you’d only need to put 5%. To put this into perspective, a house costing £140,000 would need a deposit of £7,000 rather than £14,000.

The Brexit Shadow

It’s hard to avoid Brexit, especially as the October deadline is incoming. Unfortunately, the housing market is no stranger and has shown some impact in the last few months. August was no different and according to Nationwide, the average price of a house continued to drop once again. On top of this, the number of buyers making a purchase has also stalled.

However, it isn’t all bad news. The Bank of England revealed that mortgage lending is actually up from previous months. In fact, it’s at the highest levels for a decade. In July there were over 95,000 approvals giving more the chance to take their first steps.

Securing Your First Home

This time of year is an incredibly popular time to buy, with many wanting to complete purchases as quickly as possible before Winter. The benefits of our current climate can definitely be felt by first time buyers and it is the ideal environment to find your perfect home.

At Fisher Wrathall we are one of the leading estate agents in our local area. Our team are always on hand to help and are happy to give you advice or guidance as a first time buyer.

Interested in seeing houses or flats in Lancaster and Morecambe? View our properties for sale today or get in contact with us to see what’s coming onto the market soon.

When buying a house there are many things to consider. From the area you’d like to live in to the amount of space you need, the list is endless. Once a budget has been set the search can begin and will most probably take a few weeks to find the perfect place.

When viewing a property, it can be easy to forget to look at the details about a house including what tenure it holds. At Fisher Wrathall our blog this week looks into the differences between Leasehold and Freehold properties and what you should consider.

Local Market

According to data from the Land Registry, so far in 2019 there have been 404 completed house sales. Of these, 15.1% have been leasehold and the rest freehold. Compared to the same period the year before (January 1 to 22 July 2018) the number of houses sold was 813. To add to this, 20% were leasehold which is a huge difference from those sold this year.

Looking even further back to 2009 shows just how much leasehold properties have grown in the Lancaster area. During the same period, only 25 were sold and these were all new build flats or maisonettes. The power of new builds is clear also, as of the 162 leaseholds sold last year over 26% were new builds.

Furthermore, the way people are buying is different as less people are spending on expensive and large properties. In 2019 the most expensive house sold has been a 6 bed on High Street for £635,000. Last year a 5 bed on The Grove sold for £810,000 and in 2017 a property on Haverbreaks Road exchanged hands for £875,000.

What is the Difference?

Understanding the tenure of a property is important as it can help you to understand which ownership option is best for you. Generally speaking, in the UK a house or flat will be leasehold or freehold. The language behind what these are can get confusing, which is why it helps to have a simple explanation.

Freehold

When something is listed as freehold, it means you own the land and building on it. You will be listed on the Land Registry as a ‘freeholder’ and have the title absolute. Most people tend to opt for this as they are the outright owner and have no ground rent to pay.

Leasehold

With this option you lease a property from the freeholder for a certain number of years. Periods can range anywhere between 40 to 999 years – it’s up to the owner of the ground. However, a lease is normally longer term and you have to follow any responsibilities and legal rights outlined. In some cases, leaseholders are unable to sublet, own pets or carry out major work without permission.

Despite leasing, you will be responsible for the upkeep and repair of the building. You will also be paying maintenance fees and services charges as well as a ground rent.

Pros and Cons

When it comes to Freehold properties, there are some huge benefits. As you own the land and building, you won’t ever need to worry about a lease running out or paying ground rent. On top of this, there will be no service charges and you don’t have to deal with a third party (i.e. a landlord/freeholder).

However, you are responsible for the maintenance and repair of the entire plot you own. If anything breaks and needs replacing or there’s an accident, it is up to you to fix this.

However with leaseholds, there are normally a few more things to consider. If a property you want to buy has a lease you should check:

• Service charges, ground rent and other costs
• Years of the lease
• Whether this impacts the resale value and obtaining a mortgage

In most cases leasehold will only apply to flats. However, in more recent years new build houses have been sold under this tenure. The freeholder reserves the right to increase rent and maintenance charges over time, so this is worth considering. There are sometimes opportunities to buy back the freehold, although this can be expensive and requires research.

It is important to remember that not paying fees which are a term of a lease can forfeit the agreement.

Extending Leases and Buying Land

As a legal document, the lease will outline how long you are able to live in the property. It will also give you information on any fees or legal responsibilities that you have. These can range over a huge time scale, giving people rights from a few years to nearly a thousand. However, a property with a shorter agreement is usually difficult to resell.

According to Which?, the value of a house under a lease tenure drops once there are less than 80 years left. In some cases, you are able to extend this period with the freeholder but it is at their discretion. To do this you need to have been in the property for a minimum of 2 years, so it is worth looking into this prior to buying.

It is also common for the ownership of ground to be passed or sold on, which adds another element to consider. This could make it difficult to buy land back and also leave you facing a potential rise in fees.

What Does the Future Hold?

Despite both tenures having their own pros and cons, it seems that Freehold remains a popular choice in both Lancaster and the UK. Having said this, the number of leasehold properties on the market are still selling and people see a worth in them.

At Fisher Wrathall we have a range of properties for sale across the Lancaster area. For any further details, please feel free to contact our team.

Whether you are new to the renting market or are an experienced landlord, buying a property to rent can be a great decision to make. As well as providing you with additional income, letting a home gives you security and an asset.

At Fisher Wrathall, we have years of experience helping people to find the right properties. Our blog this week is a complete buy to let guide, giving you all the information you need to know.

What is Buy To Let?

BTL or Buy to Let is the process of purchasing a property for the sole purpose of renting. In most cases, the rules around the mortgages are more or less the same as a residential purchase. Recently new rules and regulations have been put into place making buy to let more difficult than it used to be, including Stamp Duty Land Tax rises.

Although, it is still an incredibly good investment to make. Demands for rented houses and flats are high, especially amongst the younger generations. Rental yields may have fallen, but it is still worth looking into whether the move is right for you.

Mortgages and Who Can Get Them

In some cases, buyers will use cash to finalise a house purchase. However, most will need to secure a mortgage. When buying to let, the process and cost are different. For example, fees, deposits and interest rates typically rise above the normal levels. The amount of deposit being put down can also be a contributing factor with a lender, but this is nothing new. The more you can put down, the more attractive you look and the better the deal offered. Sometimes, a minimum deposit could be anywhere between 25% and 40% of the properties value.

There are some key circumstances that qualify you for a buy to let mortgage. These include:

• Affordability: you are able to make repayments and understand the risks
• Credit Score: your record is good and isn’t stretched too far
• Looking to Invest: whether this is a house or flat
• Under a Certain Age: lenders have upper age limits, normally around 70 or 75
• Homeowners: that you own a home either outright or with a mortgage
• Income: earning more than £25,000 a year is an indicator or what lenders are looking for

You can find out more about whether you can afford a mortgage using the Money Advice Service’s Mortgage Affordability Calculator. Lenders also have their own versions, so it is worth using these as well.

Borrowing and Where to Go

There are a few things that you need to remember. On top of fees, interest rates and deposits being higher, a large proportion of buy to let mortgages are interest only. This means that you won’t pay anything each month until the end of a mortgage term. At this point, you would need to repay the full loan amount. There are however still options for repayment mortgages, which is why it is important to shop around.

BTL mortgages usually need the proposed rental income to be around 25 to 30% more than the mortgage payments. Most estate agents will be able to give you an idea of potential income. You can also visit Rightmove to find out more about the local market and how much properties have recently sold for.

For those who are new to BTL mortgages, it’s a good idea to seek advice and guidance. As with residential cases, any advising, arranging, lending and administering is covered and regulated by the FCA (Financial Conduct Authority). Other helpful sites to visit include:

• Money Saving Expert
• Which?
• MoneySuperMarket
• MoneyFacts
• Money Advice Service

About Stamp Duty and Other Taxes

Back in April 2016 a change was made to the amount of Stamp Duty paid on Buy to Let properties in the UK. Landlords are now responsible for paying an extra 3% which is why you need to consider this cost. The amount paid varies depending on the value, rising alongside residential percentages.

There are also a few other aspects that you need to consider, including taxes. These include Capital Gains Tax as well as Income Tax. The way that mortgage interest tax relief works is also changing. In the past you could deduct all interest on your mortgage from the rental you received prior to any payment of tax. However, from 2020 this will be replaced by a 20% tax credit for the entire amount. Prior to that date, the amount you can deduct is being reduced by 25% each year. For the year 2019/20, 25% of interest payments are eligible for tax relief and 75% are eligible for 20% tax credit.

What are the Benefits?

Adding up all of the financial aspects of buying a property to rent up can be daunting. Although, that doesn’t mean it isn’t worth it. One of the largest benefits is that you will have a long term investment and be able to bring in additional money. Even though the property market has been fluctuating, having a house is still a worthwhile investment. This means when it comes to selling, you should increase the value.

For more guidance on buy to let properties and to see what’s on the market, do not hesitate to get in contact with us.

Find our current properties for sale in Lancaster and Morecambe here. If you have any questions, do not hesitate to get in touch.

Deciding to buy or sell a property can be a difficult decision to make. To help with the process, it’s important to do research into the market. Since the Brexit referendum, uncertainty has made its mark on house prices.

At Fisher Wrathall, our blog this week looks into the current housing market and whether things are any different in Lancaster.

Predictions For 2019

Earlier this year, several predictions were made as to the progress of the UK housing market. The average cost of a property currently stands at £226,798 according to the UK House Price Index. In 2018 this figure stood at £223,612 and in 2017 lower at £215,078. Over the last 10 years, house prices have fluctuated significantly, with growth stagnating in the past 3 years.

According to a report from Halifax, the average house price is nearer to £236,619. The bank released these statistics in April, however some have questioned the figures. Chief UK Economist Samuel Tombs commented that the growth rate was ‘implausibly strong’. He added that he has ‘little confidence in Halifax’s index as a reliable indicator of the housing market.’

The bank’s house prices are based on mortgage purchase alone and do not include shared ownership, help-to-buy or council house sales. Halifax are still predicting a 2pc to 4pc growth across the country in 2019 pending an orderly Brexit. Others have also made predictions for 2019, including estate agents Jackson-Stops who believe an increase of 1pc is likely.

Is Brexit Affecting the Market?

In short, uncertainty will impact anything and everything. As a seller or buyer, the most important thing is knowing what is about to happen. However, with Brexit still looming it is hard to keep control over rises in value as well as interest rates. Today house prices are rising at around 1.4 pc per year. However, prior to the Brexit referendum in 2016, they were rising at a rate of 5 pc.

In the summer of 2018, average house prices took an unusual dive. In August the average house price was estimated at £232,797 and in November this dropped to £230,630. Since then, prices have kept dropping. Although, since January this year there has been a rise in property sales in England. This has risen from 66,610 to 84,150. In the UK overall the rise has been more muted, from 99,020 to 101,830.

Despite all this, RICS (Royal Institution of Chartered Surveyors) still believe that there is hope. They said that despite price growth coming to a standstill, the lack of properties on the market will level this out.

House Prices and the Lancaster Market

As for Lancaster and the current housing market, things are slightly different from the national average. According to the BBC, there is a clear North/South divide in house prices. Even though this has always been present, it is the prices in the North which are rising more. For example, prices in Yorkshire and Humber rose 3.6% compared to London where property values only improved by 1.9%.

In our area, the average house price current stands at £153,109. This is £73,689 less than the national average and a difference of around £2,000 from this time in 2018. To add to this, percentage changes have also slowed down in Lancaster. They currently stand at 1.2%, 0.2 less than the national average. This is a long way from the 4.7% increases we were seeing in March 2017.

Who is Buying?

In most cases, the market is being dominated by first-time buyers looking to get onto the housing ladder. With low-interest rates and a stagnant market, the conditions are ideal. According to UK Finance, in March 2019 there were 28,800 new first-time buyer mortgages completed. Compared to March 2018 there was a fall of 2.4%, showing the first year-on-year decrease for first-time buyers since September 2018.

Additionally, there were 16,180 remortgages, 5,000 buy-to-let mortgages and a further 14,400 remortgages within the buy-to-let sector. Buy-to-let investors have also seen an increase in purchasing, with a year-on-year increase being seen for the second month in a row.

It is clear that the levels of first-time buyers have increased dramatically. In April, these figures continued to rise as inflation was less than 1 pc across the UK. Robert Gardner, Chief Economist at Nationwide, said:

“While house prices remain high relative to average earnings, low mortgage rates have helped to support mortgage affordability. Indeed, raising a deposit appears to be the major barrier for prospective first-time buyers.”

The Future of Property Buying

The biggest issue for both buyers and sellers is the questions over Brexit. According to research from the Rightmove House Price Index, it has been taking people longer to sell than normal. Since January, there has been a steady decline in the amount of time between placing a property on the market and receiving offers (see graph below).

With mortgage rates low, it seems like a good market for buyers. However, the uncertainty of the UK’s position seems to be having an impact on housing stock as well as average prices. That doesn’t make it impossible to buy or sell. The housing market is still moving steadily and showing some signs of improvement.

If you are looking to sell or purchase a new home, please feel free to get in contact with one of our agents today. We are always on hand to offer support and guidance on what is available and how you can navigate the current market.

Here at Fisher Wrathall, our experts understand the pressures of needing to upsize or downsize your property. Our blog this week takes a look into this subject and gives you 8 reasons why you should move.

Reasons to Downsize

1. Fresh Start

Downsizing can offer a great opportunity to start again. Maybe you’re retired and looking to have a Marie Kondo inspired clear out. Finding a smaller property to fit your needs will help you consider how much of the clutter you need that you’ve been hoarding for years. Spark joy back into your life by using your new home as a blank canvas to make it your own again.

2. Empty Nest

Many parents experience empty nest syndrome when their children leave home to go to university or start their own journey for the first time. This could open a new opportunity to downsize and get rid of any unnecessary space. The property market in Lancaster offers a wide range of 1 or 2 bedroom properties perfect for those looking for something smaller and cost-efficient whilst still leaving room for friends or grandchildren to visit.

3. Cost-saving

Downsizing also comes with the opportunity to save on costs. Having fewer rooms to heat and bathrooms to supply hot water with will result in fewer running costs of your property meaning more money for you to save for a rainy day. It also comes with lower mortgage and council tax payments resulting in more money for you. Many industry professionals recommend downsizing due to the rise in the cost of living year on year so you can utilise the money you save.

4. Investment Opportunity

Another reason to downsize is the chance to free up any equity by selling on your property. This spare cash could be used to rent out another property or add value to your current property through refurbishment. The local market has seen a huge increase in sales due to people downsizing, demonstrating the growing demand for smaller properties. With houses prices continuing to decrease every year also means your getting more for your buck.

Reasons to consider Upsizing

1. Crowded Nest

If you’re a young growing family, you might find yourselves living on top of each other. That’s why upsizing sounds like the sensible thing to do and doesn’t always cost a bomb as you’d expect. Having more bedrooms not only keeps the kids happy having their own space but will make you feel a lot more at ease with more space for storage and entertaining guests.

2. Long term Investment

Although there is some uncertainty about house prices, buying a larger property presents itself as a long-term investment. If you’re not looking to sell your property anytime soon investing in a larger family home may be worth spending more if you intend to stay in that property for a long period of time. Investing in a property long term may also provide opportunities to rent out the property in the future depending on your circumstances.

3. Low Mortgage Rates

Whether you’re a first-time buyer or looking to invest as the housing market cools off you could benefit from buying a larger property for a lower price. This tends to happen faster more so for the higher end of the market than the lower end of the market. First-time buyers are also exempt from paying Stamp Duty on homes up to £300,000 giving you more of a reason to buy big if it’s your first time. There’s also an abundance of choice within Lancaster and Morecambe for new development sites making your choice to upsize even easier.

4. Help available

With mortgage rates being at an all-time low this makes buying a house more widely affordable for a lot of people. No matter what your circumstances, many people are out there willing to help. With services such as Let to Buy and affordable lending schemes its never been easier to look into selling or buying your home.

Whatever the reason, make sure you carefully plan what is you want whether short term or long term. You may need to consider other factors such as location and school catchment areas and what is most ideal for you. We would always advise you speak to industry professionals such ourselves for the best possible advice for you and your personal circumstances.

Please call our office today on 01524 68822 or contact us here for friendly and confidential advice.

Deciding to sell your home can be both exciting and daunting. There are many different aspects to consider and it can be difficult to know where to start. Our blog this month looks into how to sell your home, the costs involved, as well as the best approach to take.

Choose An Agent You Feel Comfortable With

Working with an estate agent that you trust is one of the most important parts of selling your home. As well as helping with the valuation, they work to advertise your property on the best platforms and show people around.

It is worth considering what an agent offers you to make sure you get the most for your money. Look at the price they charge, services they offer and reviews of their previous customers.

Consider the Costs

Putting a house on the market is never cheap. You need to consider the cost of listing, advertising, any repairs, as well as the asking price you want to ask for.

A great way of discovering a general valuation is to use The Land Registry. This offers a good insight into what other properties around you have sold for and how your house should be priced. Although, the value of your home will depend on a number of other factors.

Creating The Right Atmosphere

It may seem obvious, but first impressions always count. A tidy and clean home will highlight each room, showcasing what your property has to offer. A good place to start is the hallway. As this is where people typically enter a property, it is important to have this space as open and clear as you can.

You should also try to declutter your home where possible. Put away children’s toys or plates into a cupboard and give everything a wipe over.

Fix Anything That Is Broken

Had a cracked tile you’ve been meaning to replace for a while? If you’re selling a house then now is the time to fix it. There is nothing worse than leaving broken shelving or unwanted tools sitting around a home.

It is often a good idea to complete any DIY jobs you have been planning to do. If you need any assistance, then it can be worth sourcing the help you need.

Get More Advice

Here at Fisher Wrathall we have been helping to sell homes across Lancaster and Morecambe for a number of years. Our team are always on hand to offer support and guidance on the process, no matter what you need.

To find out more you can give us a call on 01524 68822 or fill in our contact form.

Finding the right place to live is never easy. You have to consider a number of factors, including local amenities and atmosphere. Our handy buyers guide focuses on areas around Lancaster and Morecambe to help you make a simple decision.

Here at Fisher Wrathall we have been helping clients to sell and buy houses in North Lancashire for a number of years. We are always on hand to offer advice and support for those buying or selling property.

Why North Lancashire?

The Lancaster and Morecambe area is a great place to live, with endless places to explore. From the stunning coastline to the nearby Lake District, there is no better place to live. As well as offering access to the great outdoors, the location is great for travel. The train station in Lancaster is linked to the West Coast Mainline and from here you can travel to Manchester, Birmingham, Glasgow, London and Edinburgh.

When it comes to buying a home, it helps to know which is the best area for you. From family friendly districts to the quiet and peaceful, this guide has got you covered.

South Lancaster

Any area of Lancaster that falls to the South of the River Lune is classed under this location. Most of the city can be found here including the Quay, Scotforth, Bowerham, Aldcliffe, and Freehold. Each area has access to a number of facilities including regular public transport and shops.

This location is home to plenty of outdoor spaces for all members of the family. There is Williamson Park, the Fairfield Nature Reserve, and the River Lune Estuary.

North Lancaster

As a smaller area of land, the North of Lancaster offers a combination of terraced houses and semi detached homes. Areas around here to consider include Scale Hall, Skerton and the Vale. A great advantage to this part of the city is the transport links including great roads and bus routes.

A brand new link road, known as the ‘Bay Gateway’, makes travel around North Lancashire easy. On top of this, there is also the Salt Ayre Leisure Centre and Vale of Lune Rugby Club for avid sports fans.

Morecambe

Set by the seaside, the town of Morecambe is ideal for those who enjoy walks along the prom. There are plenty of facilities here including sports centres and supermarkets, giving you all you need. The most popular areas to live include Bare, Torrisholme, and Westgate.

When it comes to exploring, you’ll never be stuck for choice. Happy Mount Park is the perfect place for the family, with a splash park in summer and a crazy golf course. Other places include amusement centres, The Platform, and the famous Winter Gardens.

Heysham

Tucked away is the small but popular area of Heysham. Close to the sea, there are a range of detached and semi-detached houses to buy. With sea views and a peaceful setting, this is an excellent area to make your home.

There are plenty of facilities and activities to take part in, including Heysham Golf Club and the historical cliffs. Alongside this, there is the ever popular Half Moon Bay to walk along where you can enjoy the stunning evening sunsets.

Lune Valley

If you are looking to start a new life in the countryside, then the Lune Valley is where you need to look. This area is a short drive from Lancaster and has been home to a number of famous artists over the years. Villages here to research include Caton, Hornby, Arkholme, and Aughton.

There are no shortage of places to explore, with the Lake District and the Forest of Bowland on your doorstep.

What Do I Do Next?

The most important thing to do is to get out and explore. Once you’ve settled on the area you want to buy in, it is worth finding out more details. Investigating into local schools, shops and even crime rates can help you to make a definitive decision.

Our estate agents are always available to help you. To find out more about the homes we have available or to sell your property, get in contact with us today.

Buying a house for the first time may seem like a daunting task. There is a lot to sort out and consider, and a lot of various payments involved, some of which you may not even know about until you start the buying process.

You really need to understand the financial commitment you are about to make, as buying your own home will undoubtedly be one of the most expensive purchases you make. There are many reasons someone would rather rent than own, and you should carefully consider the pros and cons of each before making a decision.

But if you’ve decided to take the plunge into homeownership, then we’re here to help. We’ve compiled this helpful guide for first-time buyers, including the crucial step-by-step process and helpful hints and tips for making the process as easy as possible.

The first couple of steps involve spending some time getting your finances in order.

Save for a Deposit

There is no set amount of money you need to save up for a deposit, but you should be aware that the bigger the deposit you save, the cheaper mortgage deals you will be able to get. This is because the more money you put forward for a house, the less of a risk you will be considered to be by the lender.

Generally, you need to try and save 5% to 20% of the cost of the property. For example, a house that costs £150,000 would require you to save at least £15,000 to make up a 10% deposit. But saving more will give you access to a wider range of mortgages available on the market. A deposit of 25% is recommended to allow you access to the best possible deals; 10% is considered the average, although some lenders will do deals at 5%, but these may be harder to come by.

Mortgages

Unless you have the full amount of cash to buy the property, you are going to need a mortgage. A mortgage is essentially a loan from a bank or building society that you can put against a house or flat. You will then pay back the loan along with accrued interest over a number of years.

The best way to find out what types of mortgage schemes are available is to search online. You can look at price comparison websites or read online news and guides on mortgages; you could even speak with a mortgage advisor about the best options, although you would need to pay for this service.

What mortgage you go for is dependent on the size of your deposit. Again, the bigger the deposit, the more mortgage options will be available to you. Lenders have rigorous checks in place to ensure you will be able to keep up with your mortgage payments. You will need to show proof of your income and expenditures as well as evidence of your financial profile, such as bank statements or payslips.

You should secure an agreement in principle from the lender, which is a statement that essentially says that ‘in principle’ you could borrow up to a certain amount when mortgaging a property. It is not a guaranteed offer, but it will put you in a stronger negotiating position with estate agents.

Available Schemes for First Time Buyers

There are different home owner schemes available from the UK government to help first-time buyers onto the property ladder; these schemes differ between England, Scotland, Wales and Northern Ireland.

There is a ‘Help to Buy’ scheme, which provides a helping hand to buyers with only a 5% deposit. It is not limited to first-time buyers, but most applicants fall into this category. It launched in 2013, and currently only runs the equity loan part of the scheme (the mortgage guarantee aspect was scrapped at the end of 2016).

The equity loan requires a minimum 5% deposit of the property value with the Government offering an interest-free loan of a further 20%; the remaining amount is covered by a mortgage. Most major lenders offer this scheme. An example would be: a property costing £200,000 would require a deposit of £10,000, and you would need to qualify for a mortgage of £150,000. The Government would make up the rest of the cost with an equity loan of £40,000.

Another option is the ‘Help to Buy ISA’, launched in 2015, which is designed to boost first-time buyers’ savings. For every £200 you save, the Government will add £50. There is a maximum bonus of £3,000, which would apply to £12,000 of savings. However, this cannot be put towards the deposit and is payable at the exchange; it is paid directly to the mortgage lender upon completion.

Stamp Duty

Stamp Duty Land Tax is the tax paid when you buy property or land over a certain value. The rates will depend on the property; the higher the value, the higher the amount you will pay.

There have been several changes made to Stamp Duty over the last few years. For first-time buyers, the Stamp Duty was removed on the first £300,000 of homes worth up to £500,000 in November 2017. Homes worth £300,001 and £500,000, had a 5% rate applied. This, however, has changed very recently with the 2018 Autumn Budget released on 29^th October.

The Stamp Duty exemption for first-time buyers has been raised to £500,000, an increase of £200,000 from the previous threshold. So, unless you’re planning to purchase a property worth more than £500,000, you should not have to worry about Stamp Duty, if you’re a first-time buyer.

Additional Costs

Unfortunately, there are further costs associated with buying a home. The lender will charge you for entering into a mortgage agreement and may also ask you to cover the cost of assessing the value of the property, known as a valuation fee.

When you’ve chosen a property, you will most likely need to hire a chartered surveyor to check that the building is structurally sound. The costs will vary, but it is advised to do it at this step so that any maintenance issues can be flagged up before you follow through with the purchase. This can save you money on repairs in the long run.

It is also a good idea to appoint a conveyancer to manage the legal sides of the purchase. They can draw up the contract, deal with the Land Registry and any Stamp Duty charges. There are then further costs to consider, such as hiring removal companies and decorating the property. Remember to factor all these things in when budgeting.

Find a Property

Once your budget is in place, you can finally start looking. The best place to get started is online. There are many online property websites you can explore. You can register your interest with estate agents operating in the area you are looking to buy, and don’t forget to keep your eye on the property pages of newspapers.

It’s a good idea to bring someone with you when viewing a property, if possible someone who has gone through the process themselves. They should be able to offer insight and help you with spotting any potential problems with a property that you failed to notice.

When viewing a property, make sure you ask as many questions as possible, such as how long the property has been on the market, what’s included with the sale and whether any other offers have already been made. If possible, you should also try to talk to the neighbours to get a real insight into the area you’re moving into.

Put in Your Offer

Once you’ve found the home for you, you will need to put in an offer to the vendor via the estate agent. This is where your agreement principle for your mortgage will come in handy, as you’ll need proof as a first-time buyer that you have the means to secure a mortgage.

When the offer is accepted, you can then apply for your mortgage formally. This is now the time to get surveys carried out on the property, which is largely managed by solicitors.

Exchange Contracts

Your solicitor will handle all the legal and administrative work for transferring the property. As well as Stamp Duty and Land Registry, they will also transfer the money during the sale, and act as a point of contact between you, the lender and seller. You will agree the terms of the sale, how much the property is transacting for, the completion date and when you can move in.

With your mortgage approved, the lender may require you to insure the property as part of the approval process. Once the contracts are exchanged, you are locked into a legally binding contract to buy the property. On the agreed completion date, you can pick up the keys from the estate agent or seller.

Your New Home

With all that tremendous effort over and done, you can finally start the next chapter of your life in your new home. You’ll need to set everything up such as alerting your employer, bank, mobile phone company, etc of your change of address.

If you’re looking for estate agents in Lancaster, contact Fisher Wrathall today. We combine decades of property expertise with a modern and innovative approach to provide a high level of service. You can browse our range of available properties on our website.

Being a private landlord can be a lucrative business, and with a residential property lettings specialist at your side, it can even be relatively simple. At Fisher Wrathall, we have over 40 years’ experience, and we have provided our services to both domestic and commercial landlords, Lancaster over the years. We wish to share the knowledge and experience we have built up over the years, helping you to navigate the challenges that come with being a landlord.

If you are thinking about the rental possibilities of your property for the first time, read on to find out how you can prepare yourself.

You Must Inform the Right People

If you have a mortgage on your property, you will need to inform your mortgage lender of your intentions. There may be terms in your contract regarding the letting of your property, so you must abide by these terms and obtain their permission before you begin the letting process.

You will also need to speak with your insurance provider. You are responsible for the buildings insurance, and if the property is furnished, you will also need contents insurance – there are insurance policies that are designed for landlords.

Consider the Costs

While letting your property can be a lucrative business, it is important to consider the costs before you begin the process. As a landlord, you will be responsible for many of the costs such as maintenance and repairs, the gas and electrical services and any updates that may need to be made to adhere to regulations.

It is also important to consider the possibility that the property may have periods when it is empty, meaning that you will be receiving no rent payments. Of course, at Fisher Wrathall, we are able to find tenants quickly, so these periods should be minimal.

Prepare the Property for Lease

Before you rent out your property, it must be ready to welcome and house tenants. The preparation process could involve everything from making essential repairs to redecorating.

It can be helpful to think about the type of tenant that is likely to rent your property. If you wish to attract a family looking for a long-term let, you may have different considerations to a landlord who is looking to attract students.

Choose the Service that is Ideal for Your Needs

While some homeowners would rather take a hands-on approach, others would prefer to be able to hand over the property management to a third party.

At Fisher Wrathall, we offer both let only and managed services, so you can decide on your level of involvement in the day-to-day management of the property.

You may wish to consider the amount of time you have to respond to contact from the tenant. If you have a number of properties or you work full-time, a managed service may be more suitable.

Renting your property can be an excellent decision, and with the support of Fisher Wrathall, it can be incredibly lucrative. Whether you are looking for a let only service or a managed service, we will be happy to discuss your options with you.

Please don’t hesitate to get in touch with a member of our team who will be able to talk to you about your requirements and advise you further.

In the UK, private renting is becoming the norm for a rising number of people. The rental sector has more than doubled since 2001, and this trend is predicted to continue as more and more individuals opt for renting over trying to purchase a home. The number of individuals who own their own home with a mortgage has fallen by around two million in less than ten years. With so many current and future tenants waiting in the wings, there is no better time to get into the business of becoming a landlord. Here we outline the beginner steps of starting this process:

Researching What’s Involved

Becoming a landlord is a great way to make a passive income, but it will require a lot of work, especially at the start. There are a lot of elements involved in being a landlord that you may not have considered, and something that you should before purchasing a property. As a landlord, legally you need to meet certain standards in ensuring the property is up to code, so you need to establish the state of the property you plan to buy. You will also be required to make decisions such as whether you rent unfurnished or furnished, allowing or disallowing pets or whether tenants can smoke inside the property.

Before committing to becoming a landlord, it’s advisable that you fully research what’s involved in the process from start to finish. If you have ever rented from a landlord, or know someone who rents out property, consider contacting them for advice. Alternatively, you will be able to find information online such as on GOV.UK about the rules and regulations of renting out property in the UK.

Being a Landlord

Becoming a landlord is a lot easier than you might think. All you need to do is start obtaining rental income from a property you own, and suddenly you’re a landlord. However, being a professional and credible landlord carries an awful lot of responsibility and duty of care.

If you have inherited or purchased an old property you wish to rent out, chances are it will need some renovation work to bring it up to scratch. You will be responsible for sorting out insurance to protect your property from accidental damage, such as fire and flooding. If you opt to supply furniture for the property, you need to keep it in good condition and ensure that all electrical items have been tested and are safe for use.

The property needs to be brought up to code with things like fitting smoke alarms and carbon monoxide detectors. The paperwork you will need to fill out will ensure these things are in place; there are documents you need before you take on your first tenant, such as an energy performance certificate, a tenancy agreement, an inventory (if your property is furnished), and a gas certificate.

You will need to decide how much to charge your tenants, and this should be carefully thought out based on your costs and the local housing market. Research letting websites for similar properties in the area to get an idea of what people are charging, look at how they compare to your property and check back frequently to see how quickly certain properties are snapped up by tenants.

Remember, your obligation as a landlord is to provide your tenants with a safe and habitable environment to live in. There is a lot involved that you need to consider before renting out a property. Other key obligations include:

• If you are providing your tenant with gas appliances within the home, you must provide copies of operating guides and manuals for these products.
• Only installing electrical appliances carrying the European CE certification mark.
• If you are providing a furnished property, furnishings such as mattresses and some other items will need to meet fire regulations.
• Your entire property must have a full gas safety survey annually conducted by a registered Gas Safe engineer.
• If renting to three or more people you will need to apply for an HMO license.

Northwood Lettings

Another route you could take to becoming a landlord would be to use a letting agent; this could take out a lot of the time and hassle spent managing the property. Northwood has over 20 years of experience with letting properties, we are a well-established company and one of very few offering a letting service that aims to be risk-free. It’s an ideal solution for people who want to let their property with an assured income. You also get the reassurance of your property management being taken care of by professionals.

We offer a range of letting management options: Fully Managed, Rent Collection and Tenant Find. With over 85 offices across the country, our local experts have an intimate knowledge of the current market locations; all of our staff are trained locally, so they have the skills to successfully manage our landlord’s properties.

With a centralised hub of specialist departments, all Northwood offices can access the support of the experts:

• IT – ensuring the instant uploading of property details.
• Marketing – enabling properties to be marketed to the highest professional standard.
• Compliance – giving you peace of mind that your property is being let legally and doesn’t leave you exposed.
• Buy-to-let specialists to support investors.

Northwood operates under strict codes of practice and all of our offices belong to one of three Government-approved money protection schemes. We deliver an award-winning service and carefully select tenants for every property. We ensure all tenants are fully referenced, credit checked and confirmed that they have a legal right to rent in the UK.

If you’re considering becoming a landlord, we at Northwood lettings are here to help. Read our step by step guide to letting, or take a look at our letting service options.

Britain is a nation full of property investors. Many of us invest in property to give it a lick of paint, some modern features, and other favourable additions, and then either sell on for profit or let. While this seems like a great market to get into, how many people consider investing in commercial property instead?

Property has long proven to be a sustainable investment. For many, buying property to let is their career, while for others it can be a way to get extra income on top of their salary.

According to the British Property Foundation, commercial property now accounts for 13% of the value of all buildings in the UK, with the value for commercial assets set at £883 billion in 2016, representing 10% of the entire UK’s wealth.

What is Commercial Property?

When many people think of commercial property they may automatically think of a retail property. However, a property commercial is, in fact, any building or land intended to generate a profit, either from capital gain or from rental income.

The majority of commercial properties are mainly made up of offices, retail properties, industrial sites (such as warehouses and factories) and leisure property, like restaurants. However, there are more alternative commercial properties to choose from, such as schools and petrol stations.

There are several ways to invest in a commercial property, and one may suit you better than another. Speak to your local commercial property expert or estate agent to find out the best one for you and your options.

Why Invest in Commercial Property?

Investors (distinct from occupiers) now own approximately £486 billion worth of commercial property in the UK, representing 55% of the total. According to the report, over the longer term, commercial property tends to deliver investment returns that are higher than gilts (British government issued bonds – generally considered low risk investments) but lower than equities.

With recent tax changes for landlords, it is no surprise that investing in commercial property is becoming an increasingly attractive option for many properties – and people considering it.

With any significant investment, it is important to weigh up the pros and cons for your situation and understand what investing entails; there are numerous benefits which come with investing in a commercial property:

• Provides a steady stream of income – If you rent out your commercial property, you’ll receive rental payments from your tenant as long as you rent it out.
• Capital growth – There’s a possibility of increase in value over time and you could make a good return on your initial investment if you sell. If you are proactive in your commercial property management, you can also reduce your costs and increase your profits.
• Relationship with Tenant – your relationship will most likely be more professional than that of a residential tenant.

Top Tips for Commercial Property Investment

• Find a Property – If you can, you should find the right time to buy a commercial property. Make sure you investigate trends in both the local and national market and explore factors such as values, supply, availability, tenant availability, rental values and competitors. You can do this with your commercial property estate agent.
• Location and Building Type – You should take into consideration the type of property, type of investment, size, and location you are looking for. You should also think about how it will suit business needs, be it yours or your tenants. Does the property have transport links nearby, parking facilities, local amenities in the surrounding area, and so on?
• Class of Property – Commercial property is divided into classes under The Town and Country Planning Order 1987, which determines how each property is occupied. You must make sure that you are in line with the legislation when it comes to planning use.
• Planning Permission – What are your plans? If you aim to redevelop or expand, then make sure you can. It is important that you seek advice from the council and a commercial estate agent on the feasibility of this.
• Costs – Work out the costs first. Generally, a deposit is required when contracts are exchanged; however, there are many other costs to take into account, ranging from VAT to Stamp Duty. Seek out professional advice on this if you aren’t 100% sure. Don’t forget about running costs such as energy usage and tax.

If you are unsure about where to start when it comes to looking for the perfect commercial property, you should speak to a commercial sales and lettings expert such as Fisher Wrathall.

Fisher Wrathall are the area’s leading Commercial Agency, covering Lancaster, Morecambe, and surrounding areas. We can handle the sale, letting and management of all commercial property types.

Whether you are looking to invest in or sell a commercial property or are interested in simply finding out more information, get in touch with our team for a free and confidential consultation on any commercial property matter.