Check the loft before you buy or rent a property

As part of the property purchase or rental decision-making process, when viewing a property with a loft don’t forget to check up there to ensure that it is well insulated.

And whilst you are checking this, make sure that any downlights installed the ceiling below are protected from contact with loft insulation, building debris and other flammable material.

We often find that people simply move the insulation away from downlights (see above picture), which defeats the object of having insulation and allows condensation to form in the loft. Furthermore, if your loft is not adequately insulated a lot of energy will be wasted in winter, not to mention drafts from the attic.

A solution to this problem is to fit insulation guards or fire hoods above downlights. They cost around £10 per unit and protect the lights from the insulation covering above and prevent them from overheating. A simple solution to improve safety, as well as keeping the loft fully insulated and energy bills down.

Downlight guards and fire hoods are available at DIY stores, electrical or lighting specialists.

Pictures below: fire hood and insulation guard

If you are based in Berkshire and need help to install downlight protection guards in your loft, please contact our electrical services company Chez-Vous Property Services now.

Going on a summer holiday? Tips to secure and protect your home!

Summer is here! Many of us will be going on a well-deserved and long-awaited holiday. Before departing, we enjoy planning activities and what to take with us. So remember to take a bit of time to include plans for protecting your home during your absence. Then you will be able to relax and enjoy your time-off knowing that that you have done your best to make your property safe from criminals or from potential incidents.

Avoid incidents in the home
• Make sure the gas is turned off.
• Turn the water off at the mains stopcock.
This is normally located in your kitchen or in the under stairs cupboard. This ensures that should you have a water leak or a burst pipe whilst you are away, the water will eventually stop.
• Unplug mains sockets and TV aerials from televisions, videos, computers and any electronic equipment that does not need to be left on.
Not only will you save money on your electricity bill, but such items will be protected from lighting strikes, as the aerial could receive a substantial charge if lightening hits.

Engage the help of a friendly neighbour
At a minimum, let a trusted neighbour know that you going to be away. You could ask them to keep an eye on your house and help make it look lived-in whilst you’re away. Promise to do the same for them in return.

Ask the neighbour if they would be willing to help with the following:
• push post and junk mail completely through letter box, rather than leaving it visibly stuck half-way through
• open and close curtains
• switch on lights in the evenings
• collect post
• mow the lawn
• park their car or their visitors cars on your driveway.

They may also be willing to water plants and look after pets.

Postpone deliveries
If you don’t want to rely on a neighbour then cancel any milk or paper deliveries for the duration of your holiday, and make use of Royal Mail's letter and parcel holding service.

Put lights on a timer
Putting lamps on a timer is an excellent way to give the appearance that someone is at home. These simple and useful electronic devices can be used to set particular times at which the lights go on and off. Why not use them all year round?

Basic precautions before departure
Before leaving on your travels it is worthwhile taking extra care to run through the following checklist:
• Ensure that all doors and windows are locked securely, and any burglar alarms are set.
• Never leave keys near the letterbox or doors
• Don’t leave keys on window handles or on window ledges
• Make sure ladders and tools are locked away, out of sight.
• If you have valuable items in the shed, such as bikes or tools, then it might be a good idea to store them in the house over the holiday period.
• If there are any items of particular value in the house, such as important confidential documents, and you don’t have a safe, then it is worth leaving these things with family or in a bank safety deposit box.
• Leave a key and/or contact telephone number with a trusted neighbour or nearby friend or family member. In case of need, they will be able to access your property and contact you.

Now all you have to do is enjoy your holiday knowing that you have taken necessary precautions before leaving. Have fun!

(Note: this blog has also been posted on the following sister blog sites: http://www.maintainingproperty.co.uk/ and http://www.thepropertystylist.co.uk/)

Landlords should ensure they use a legitimate tenancy deposit scheme!

Many landlords and other property professionals have recently been made aware of online sites which are offering tenancy deposit schemes, but which, unfortunately, are not government authorised.

Landlords, and agents, should be aware that if they use non-official companies to hold tenant deposits, then they are not complying with regulations and may be subject to significant fines.

The Government has awarded contracts to only three companies to run tenancy deposit protection schemes. Find out more information about these companies and the schemes at Directgov.

Find out how Chez-Vous HomeSearch can help you with property finder and relocation services.

Gas safety warning for landlords

The UK Health and Safety Executive (HSE) has issued a warning to all landlords to ensure that gas appliances are safe for tenants. This follows the successful prosecution of a landlady who failed to safely maintain gas appliances in one of her properties.

The landlady in question pleaded guilty to a breach of Regulation 36(3) of the Gas Safety (Installation and Use) Regulations 1998 in December and was fined £5,000 and costs exceeding £3,700.

The HSE commented, "This case sends out a clear message to landlords who may be tempted to cut back on safety. This is a time when many buy-to-let landlords are under a lot of pressure, but they must make sure they don't put their tenants in danger".

For more help and information regarding gas safety visit: http://www.hse.gov.uk/gas/domestic/index.htm

Stamp duty threshold raised to £175,000 to help first-time UK home buyers

Buyers of homes worth up to £175,000 are exempt from stamp duty for 12 months.

Announced yesterday by the Chancellor Alistair Darling, this is part of a package of measures designed to revive the UK housing market.

The change, which comes into effect from today, raises the threshold on which 1% stamp duty is paid from its current level of £125,000.

The move will save eligible home-buyers up to £1,750 when they purchase a property, and relates only to buildings entirely for residential use.

Read more on the BBC News website.

Laurent Stadelmann
The Property Finder & Relocation Professional

Too busy to hunt for your next home?
Let Chez-Vous HomeSearch remove stress from the relocation process!
Tel: +44 (0) 1189 770215

PROPERTY FINDING FOR BUYERS / HOME SEARCH FOR TENANTS / CORPORATE RELOCATION SERVICES / PURCHASE PRICE NEGOTIATION SERVICE / LOCATION REPORTS / FREE INFORMATION TO HELP YOU HOUSE HUNT

How to buy property in the credit crunch

Interesting recent article from the Times: http://tinyurl.com/6ff6ft

Laurent Stadelmann
The Property Finder & Relocation Professional

Too busy to hunt for your next home?
Let Chez-Vous HomeSearch remove stress from the property process!
Tel: +44 (0) 1189 770215

PROPERTY FINDING FOR BUYERS / HOME SEARCH FOR TENANTS / CORPORATE RELOCATION SERVICES / PURCHASE PRICE NEGOTIATION SERVICE / LOCATION REPORTS / FREE INFORMATION TO HELP YOU HOUSE HUNT

Landlords, remember your Energy Performance Certificate!

In December 2007 I wrote about the requirement to provide a HIP (Home Information Pack), which must contain an Energy Performance Certificate (EPC), when selling a property.

From 1 October 2008, all buildings, whenever they are built, sold or rented out, will require an Energy Performance Certificate (EPC).

This new piece of legislation will affect landlords starting new tenancies (many landlords are still unaware of this – please do not Landlords, remember your Energy Performance Certificate!
hesitate to forward this information).

If you are a landlord and you:

• already have a tenancy agreement on 1 October 2008; you will NOT require an EPC.
  
• plan to let for the first time or re-let your property(ies) after 30 September 2008; you will have to provide a copy of the EPC (a photocopy of the original is acceptable) to serious prospective tenants, either prior to or at the viewing of property.
  
  - If you let a property to several individuals each of whom has free use of the whole property (from a contractual point of view), then only one EPC will be required
  - If you let a HMO (House in Multiple Occupation) – a property with shared living amenities plus individual contained bedrooms (with locks) – to 5 people, for example, then six EPCs will be required: one for the property, and one for each self-contained room
  - I advise you to commission an EPC for each property you plan to let as soon as possible, as it is very likely that there will be huge demands for new EPCs in August and September.

An EPC is produced after an inspection of a property is carried out by an accredited Domestic Energy Assessor. The landlord is responsible for ensuring this is done. An EPC is likely to cost between £50 and £100, and will be valid for 10 years.

However, if modernisations are carried out, it may be advantageous to have the property re-assessed to reflect the improvements.

EPCs only apply to England and Wales. Northern Ireland and Scotland are producing their own regulations.

The rationale behind EPC and its characteristics
EPCs are part of measures being applied across Europe and are in line with the European Directive for the Energy Performance of Buildings to help cut buildings’ carbon emissions and tackle climate change.

EPCs are measured using the same calculations for all properties, enabling comparison of the energy efficiency of different homes. Part of the EPC is a recommendation report which lists the potential rating that a property could achieve if changes are made. The report lists improvements that one could carry out and how this would change the energy and carbon emission rating of the property.

An EPC (see sample) provides ‘A’ to ‘G’ ratings for the building, with ‘A’ being the most energy efficient and ‘G’ being the least, with the average to date being ‘D’.

Measures you can take now to improve your property energy efficiency
If your rental property is already energy efficient, the EPC will help it stand out compared to those not so energy efficient: potential tenants will be re-assured of lower energy bills – very important in these days of rising energy and fuel prices.

There are some measures you can take now to improve your property energy efficiency, and improve your EPC rating:
1: Replace light-bulbs with low-energy versions
2: Ensure the hot water cylinder has a jacket
3: Insulate the loft
4: Insulate cavity walls
5: Replace an old boiler (15 years+) with a new high efficiency condensing unit, which could save around a third on heating bills straight away.

To find out more about EPCs, visit Directgov.

Laurent Stadelmann
The Property Finder & Relocation Professional

Too busy to hunt for your next home?
Let Chez-Vous HomeSearch remove stress from the property process!
Tel: +44 (0) 1189 770215

PROPERTY FINDING FOR BUYERS / HOME SEARCH FOR TENANTS / CORPORATE RELOCATION SERVICES / PURCHASE PRICE NEGOTIATION SERVICE / LOCATION REPORTS / FREE INFORMATION TO HELP YOU HOUSE HUNT

Don't forget to ask what the neighbours think

Friends of mine had found their perfect house. A renovated 3-bedroom Victorian property with original period features: slate roof tiles, Victorian fireplaces, large sash windows, etc.

Before making an offer the friends asked for my professional opinion. The property had been completely refurbished to an excellent standard and it looked sound. And on the face of it, at that moment in time, the neighbourhood looked good too.

When I search for property I always do a lot of research, including asking neighbours what they think of the area.

So after the viewing I suggested that this is exactly what we should do. Although the friends were not very comfortable with the idea, we nevertheless stopped to speak with a couple of locals and asked if they were happy living there. Well, we discovered more than we bargained for - cars regularly stolen (including theirs!), police chases, burglaries... These particular locals concluded that they wished they had never bought their houses and feared they would be difficult to sell.

My friends could not believe their ears. These little conversations probably saved them a lot of hassle - potential car theft and burglary, expensive insurance, not to mention stress and worry. Needless to say, they didn’t make an offer on that house, but they now realise that the neighbours can be a source of valuable information.

Laurent Stadelmann
The Property Finder & Adviser

Too busy to hunt for your next home?
Let Chez-Vous HomeSearch remove stress from the property process!
Tel: +44 (0) 1189 770215

PROPERTY FINDING FOR BUYERS / HOME SEARCH FOR TENANTS / CORPORATE RELOCATION SERVICES / PURCHASE PRICE NEGOTIATION SERVICE / LOCATION REPORTS / FREE INFORMATION TO HELP YOU HOUSE HUNT

Renovation advice to boost property profits

Last week I attended an excellent property seminar in which Dr. Dennis Coote talked about “Renovation Techniques to Boost your Property Profits”.

Dennis is passionate about property, having developed, renovated, bought and sold over 400 properties during his 40 year career. Dennis and his partner Hazel Reed are currently renovating a property in Reading.

Dennis reminded his audience of the first golden rule when investing in property: “To make a profit, you must buy at the right price. The profit you make is made when you buy, not when you sell.” This is even more appropriate in the current climate!

During the seminar he covered a wide range of subjects, aimed at helping investors looking to buy and renovate property: types of property to consider and to avoid; basic tool kit to take with you when viewing properties; location considerations; how to find, select and save money when dealing with tradesmen; sequence of work during the renovation process; etc.

Dennis also described some simple renovations and repairs which can be carried out by those skilled in DIY. Did you know that instead of paying a plumber to repair a toilet that is not flushing properly due to a damaged diaphragm, you can create a replacement plastic diaphragm yourself and save at least £50? Or that if you need to drain your central heating system but the draincock is blocked, you can buy a special clamp-on tap called a tee-valve (costs about £5), and fit it yourself on the pipe with a spanner. No leaks, no mess! And a lot of money saved! One very strong piece of advice: don’t play with gas!

Dennis recommends a visit to The National Self Build & Renovation Centre in Swindon (M4 Junction 16).

To find out more about Dennis Coote, visit: Property Development for Profit - Dr. Dennis Coote's ecourse on property

Laurent Stadelmann
The Property Finder & Adviser

Too busy to hunt for your next home?
Let Chez-Vous HomeSearch remove stress from the property process!
Tel: +44 (0) 1189 770215

PROPERTY FINDING FOR BUYERS / HOME SEARCH FOR TENANTS / CORPORATE RELOCATION SERVICES / PURCHASE PRICE NEGOTIATION SERVICE / LOCATION REPORTS / FREE INFORMATION TO HELP YOU HOUSE HUNT

Selling property in a buyer’s market – You could even gain in cash terms

Last month I gave some recommendations for purchasing property in a buyer’s market. This month I will look at selling property in a buyer’s market.

As a seller, be realistic with your asking price. If you have to accept a lower offer for your own home, it does not mean that you should lose out. In fact, if you are selling because you want to move up the property ladder, make a lower offer on your next home too. You could even gain in cash terms.

Let's assume your house is on the market for £400,000 and your next property is for sale at £650,000. If you agreed to sell your home at £380,000 (5% off), then make an offer on your next one for no more than £617,500 (5% off minimum). You could gain at least £12,500 (subject to your negotiations).


Make sure you sign-up now to receive our FREE quarterly Property Matters! newsletters containing market news, Chez-Vous news, stories, features, tips and property events.

Laurent Stadelmann
The Property Finder & Adviser

Too busy to hunt for your next home?
Let Chez-Vous HomeSearch remove stress from the property process!
Tel: +44 (0) 1189 770215

PROPERTY FINDING FOR BUYERS / HOME SEARCH FOR TENANTS / CORPORATE RELOCATION SERVICES / PURCHASE PRICE NEGOTIATION SERVICE / LOCATION REPORTS / FREE INFORMATION TO HELP YOU HOUSE HUNT

Purchasing property in a buyer’s market

Since the UK credit crunch began in summer 2007, mortgages and property have rarely been out of the news. These two topics have become the constant topic of conversation all over the country.

A year ago we were in a seller's market. Now it is the opposite: a buyer's market. So what does this really mean for you if you are a residential property buyer?

In general terms the market has moved in your favour. The Halifax announced that house prices fell by 2.5% last month from February 2008. The other main housing index, Nationwide, indicated that prices fell by 0.6% in March. According to Peter Hogan of the Royal Institute of Chartered Surveyors, "Sellers are having to reduce by between 5% and 10% of the asking price. Many buyers are biding their time to see what will happen."

In reality it depends on which rung of the property ladder you are on and your current mortgage situation as to whether you can immediately benefit from this buyer’s market. If you are looking for a first-time mortgage or need to remortgage then it has become more complicated and expensive. Get plenty of advice from expert advisors. A good mortgage broker will seek to find you the best deal appropriate to your circumstances. Mortgage lenders are currently withdrawing many offers and putting up their rates and fees on new ones (even though the Bank of England decided this month (April 2008) to cut the base rate of interest by 0.25% - down from 5.25% to 5%). When you find a mortgage that is right for you, act quickly to secure it.

If you are ready to purchase now, I recommend that you do your homework and negotiate on price. Make a lower offer based on your research (market conditions, how long the property has been on the market, potential structural problems to fix, poor presentation, etc.), and that you feel comfortable with. If you believe that a property is over-priced then make an offer that you consider realistic. No one can predict the future but if you can’t purchase at a price that you are confident with, then walk-away from potential financial problems and negative equity. The last thing you want to be worrying about is a possible future house price slide and killer mortgage payments.

Remember, a property is only worth what somebody is willing to pay for it! If you are at all uncertain or uncomfortable about doing the negotiation yourself then get someone who is a confident negotiator to do it for you - a friend, a family member or an expert professional property finder and purchase price negotiator.

Next time I will be discussing vendors selling in a buyer’s market.

Make sure you sign-up now to receive our FREE quarterly Property Matters! newsletters containing market news, Chez-Vous news, stories, features, tips and property events.

Laurent Stadelmann - The Property Finder & Adviser
Managing Director - Chez-Vous HomeSearch

Ten tips when buying leasehold flats

After reading our last issue of “Property Matters!” Newsletter Andy Szebeni of A&P Sales Training and Telemarketing replied to our “Share your property stories” section. Andy suggested sharing amongst our readers ‘10 tips when buying leasehold flats’, collated by one of his clients, Leasehold Solutions Limited.

Would you be surprised to know that if you were to ask the average buyer what issues they are considering with regard to the leases on the flats they are viewing, you may be met with silence? Many buyers do not realise or consider the implications that purchasing a leasehold property may have. But they should! Issues relating to the leasehold of flats can have a significant impact on the value and future marketability of a flat. So if you are considering purchasing leasehold, I strongly suggest you read these “10 top tips about leases” first.

Read more about issues to consider when buying a leasehold flat.

Make sure you sign-up now to receive our FREE quarterly Property Matters! newsletters containing market news, Chez-Vous news, stories, features, tips and property events.

Laurent Stadelmann - The Property Finder & Adviser
Managing Director - Chez-Vous HomeSearch

Property investors, landlords - are you claiming all your expenses?

Here are some tips that I published in my last newsletter that I thought may be useful.

Sign-up to receive our FREE Property Matters! newsletters by email.

Some investors or landlords may not be aware of some of the expenses and allowances they can deduct from the taxable rental income. Ensuring that you offset all your legitimate costs will help minimise your tax bill.

Some of the expenses that can be offset against rental income are:

• Finance charges: any interest paid on the loan/mortgage taken out to purchase a rental or buy-to-let property is tax deductible, as is interest on any secured or unsecured loans taken out to obtain the property or to finance repairs.
  
  
• Legal & professional fees: if you use the services of accountants and letting agents, their fees are tax deductible.Legal expenses associated with preparing tenancy contracts and dealing with tenant disputes are also tax deductible. However legal expenses associated with purchasing property cannot be offset against rental income (these expenses are offset against your capital gains tax liability when you sell the property).
  
  
• Council Tax, electricity, water & gas: if all rooms are rented out, all the usual running costs are fully tax deductible, assuming that none of the tenants makes a contribution to the bills. If you let your property exclusive of all the bills, then you cannot claim.Between tenancies the landlord is responsible for paying council tax and utility charges, which are tax deductible.
  
  
• Insurance: buildings insurance, contents insurance, rental guarantee, as well as maintenance insurance policies for gas boilers, plumbing cover and white goods are also tax deductible.
  
  
• Ground rent & service charges: on a leasehold property there is usually a ground rent and a service charge to pay to the freeholder; these are deductible.
  
  
• Marketing and advertising costs: any costs associated with finding tenants or selling your property are tax deductible. Other tax deductible costs include expenses such as setting up a website or having some “to let” boards made up.
  
  
• Managing / letting agent fees: if you use agents to let and/or manage your property, their fees are tax deductible.
  
  
• Cleaning between tenancies
  
  
• Garden maintenance
  
  
• Wear and tear: if you let furnished accommodation, you can claim 10% of the gross rental income (minus rents, rates, council tax, water rates).
  
  
• Administration expenses: any stationary, office and administration expenses such as telephone, all paper and envelopes, printing, postage, office consumable and any other costs incurred in connection with running your property business are fully tax deductible.
  
  

I would like to clarify that I am not a tax expert. Please check with an accountant or Tax Office if there are issues that are particular to your personal and property circumstances.

Laurent Stadelmann
Managing Director - Chez-Vous HomeSearch

Tips to avoid house hunting communication overload!

Recently I arranged for one of my clients to view some new-build properties, which are being managed by an estate agent. Unfortunately, at the end of the viewing he felt pressured into giving not only his own mobile number but also his email address to the agent.

Within hours my client was being "bombarded" with emails from containing descriptions of unsuitable properties. These emails were followed by calls, sometimes within minutes, trying to convince him to arrange viewings.

Of course, the majority of estate agents communicate with buyers in a professional manner but, like any industry, there is an unprofessional, disreputable element. So here are some tips on how to manage the communication process when you are searching for property:

Tip 1 - Using a property finder
If you engage a property finder to help you search for your next home or investment property then they will handle all communication with agents and vendors and filter out unsuitable properties. So there is no need to give your own contact details to estate agents during a viewing. Tell the agent to liaise with your property finder.

Tip 2 - Set-up an alternative email address
If you are not using a property finder to manage your property search , rather than providing estate agents with your office or your regular personal email address, set-up a free internet email account, such as Hotmail or Yahoo, and give that instead. That way you keep emails relating to your house hunt separate and can read them when it suits you. You could even create an address which reinforces your brief , for example "lookingfor4bedwithgarage@hotmail.co.uk". (Address available at time of blog!)

Tip 3 - Manage telephone contact
If you have a mobile phone, then it's not necessary to give out your home telephone number. If you really don't want to be contacted by phone then request email or postal contact only. (Please note that not providing a contact phone number could prevent you from hearing about a new property instruction quickly.) If you give your mobile phone number and you don't want to be interrupted at work or at other unsuitable times, remember to switch it to silent mode or off . Ask the agent to contact you at a specific time of day that suits you.

Tip 4 - Give feedback
Help the agent to provide you with more targeted information by giving clear feedback on properties that you have viewed. The more regularly you initiate communication with estate agents, the more likely you are to find out about properties that meet your brief.


Laurent Stadelmann
Managing Director - Chez-Vous HomeSearch

Extension of HIPs to all properties

On 22 November 2007 the Government announced that 1 & 2 bedroom properties put on the market in England and Wales on or after 14 December 2007 must have a Home Information Pack (HIP).

A Pack must contain at least the following (or if any are missing, the Index should explain why):

• An Index of contents
• An Energy Performance Certificate
• A sale statement
• Evidence of title (for registered and unregistered properties)
• SearchesLeasehold/commonhold documents, where appropriate.

Any home that was already on the market on the relevant commencement date (1 August 2007 for sales of homes with four or more bedrooms; 10 September 2007 for those with three or more bedrooms and 14 December for all properties) does not need to have a HIP.

To find out more about Home Information Packs, visit www.homeinformationpacks.gov.uk

It will be interesting to see what impact the complete roll out of HIPs will have on purchasing behaviour.

Laurent Stadelmann
Managing Director

Chez-Vous HomeSearch
Removing stress from the property process!

Property Finder / Relocation Services / Negotiation Service / Location Reports

laurent@chez-vous.biz
www.chez-vous.biz
Tel: +44 (0) 1189 770215

Gazumping – You’d never want it to happen to you!

The problem in England and Wales is that until contracts have been exchanged the sale agreement is not legally binding. Until that point, the current system permits buyers and sellers to pull out of the agreement, and the practices of gazundering and gazumping!

Last week I described the awful practice of gazundering, sprung on sellers by their purchaser, and advised planning a strategy in advance just in case. And this week, I will look at the issue of gazumping where the roles are reversed.

Gazumping happens when a seller, who has already accepted a buyer’s offer, decides to accept a higher offer from someone else. The first buyer is left with two possible choices: they offer a higher price and get into a potential bidding war, or they decide to let the property go, lose out and look for an alternative.

From a buyer’s point of view, gazumping is not only a stressful experience but it also costs money when surveys, searches and other fees have already been incurred.

This practice is popular when property prices rise and when there are more buyers than sellers in the market.

As a buyer, how can you try avoiding being gazumped? Unfortunately, there isn’t much you can do about it, but there are some precautions you can take:

• Ensure that the buying process is as quick as possible; the quicker the better, as it will provide less opportunity for the seller to receive and consider offers, play games, or even pull out of the sale altogether.


• Before making an offer, find out if the estate agent has a policy on gazumping. Some agents request sellers to sign an agreement to turn down any further offers after one has been accepted.


• After your offer is accepted, ensure that you regularly communicate with the estate agent/vendor to let them know about your buying progress status: inform them when the survey will take place; let them know when the survey is completed; update them on the status of your mortgage offer, etc.


• Persuade the seller to sign a “lockout agreement” when your offer is accepted. The seller signs this agreement stating that they will not accept another offer from anyone else as long as the contracts are exchanged within a set time. You should use a solicitor to draw this up.


• Another possibility is a “pre-contract deposit agreement”. This means that each side pays a deposit (an agreed percentage of the purchase price) that will be lost if they pull out without a good reason. Obviously this agreement does not completely guarantee a smooth transaction as either party can pull out if they are willing to lose the deposit. But it will reduce the risk of being gazumped. And if you become a gazumped buyer, you will get some compensation. You should use a solicitor to draw up this agreement.


• Some insurance companies offer gazumping insurance policies to cover fees you might have incurred. Always weigh up the cost of insurance policies and read the small print!

As a buyer, always be prepared for the eventuality of being gazumped. Try to not set your heart on the property until it is signed and sealed. But if you really want it or have no other choice then ensure that you have a contingency plan allowing you to increase your initial offer.

And if you are gazumped but you don’t want to make a higher offer, let the estate agent and vendor know if you are still keen on the property. If the other buyer with the higher offer pulls out, you may still be in with a chance of securing the property if that’s what you want.

As I’ve said before, any negotiation should be based on trust and be fair to both parties. My advice is always to agree on a price at the beginning of the transaction and stick to it.

Laurent Stadelmann
Managing Director

Chez-Vous HomeSearch
Removing stress from the property process!

Property Finder / Relocation Services / Negotiation Service / Location Reports

laurent@chez-vous.biz
www.chez-vous.biz
Tel: +44 (0) 1189 770215

Is gazundering ever justified?

I always encourage people to negotiate prices when they purchase items of a certain value. You have nothing to lose, the worst being that you don’t get a discount. You are either happy to accept it and pay the full amount, or go somewhere else to see if you can get the same item cheaper.

The same applies when buying property. After having done your research, and if you believe that a lower offer is justified (market conditions, how long the property has been on the market, potential structural problems to fix, poor presentation, etc.), go for it.

Remember, a property is only worth what somebody is willing to pay for it. If you feel uncertain or uncomfortable about doing the negotiation yourself then I recommend that you get someone who is a confident negotiator to do it for you - a friend, a family member or a professional property finder.

But be aware – there is a significant difference between negotiation and the appalling practice of gazundering! Gazundering involves unscrupulous buyers waiting until around the time of exchange and then lowering their offer with the anticipation that the seller will be reluctant to lose the sale. If sellers’ hands are tied they have got no choice but to accept it, or they can fight back by rejecting the lower offer and then withdrawing on principle.

As a seller, bear this possibility in mind and prepare your strategy in advance. Be ready to counteract based on your circumstances (are you desperate to sell or not) should gazundering happen to you.

When buyers make offers, I recommend sellers to try to get as much information as possible about their circumstances. Have they got a property to sell? Is there a chain? Are they first-time buyers, investors or cash buyers with nothing to sell? This will enable the seller to assess the potential impact and risks to the buyer of losing the property should that buyer play the dangerous game of gazundering.

When buyers have justified reasons for lowering their original offer (for example the survey has highlighted problems that will cost money to fix), this is not gazundering. So consider the offer and renegotiate accordingly.

However, when the buyer is simply playing a game to pay less money, then my advice is to always try to refuse to back down, or to even withdraw from the sale. Why should you trust this person again? What else are they likely to try next?

If the circumstances allow, contact any other interested buyers who had also made offers, or simply put the property back on the market. If you are in a weak situation because of time or money pressures, don’t let the buyer know about it. Apply the strategy you will have rehearsed in advance to prevent you losing too much money.

At Chez-Vous HomeSearch, we believe that any negotiation should be based on trust. Both parties (seller and buyer) should agree on a price at the beginning of the transaction and should stick to it.

Next time I will look at the issue of gazumping where the roles are reversed!

Laurent Stadelmann
Managing Director

Chez-Vous HomeSearch
Removing stress from the property process!

Property Finder / Relocation Services / Negotiation Service / Location Reports

laurent@chez-vous.biz
www.chez-vous.biz
Tel: +44 (0) 1189 770215

The path to successful property investment

Successful individuals and entrepreneurs have found different ways and methods of building their fortunes. One of the most accessible ways is investing in property. In fact, the annual Sunday Times Rich List, the definitive guide to wealth in Britain and Ireland, confirms that the richest people make millions in land and property.

Property is a great strategy for the investor who is willing to take the time to learn about the options, risks, and potential rewards for this type of investment process.

The UK property market has always been a subject of immense interest, especially as we have experienced an extraordinary rise in property values over the years. Furthermore, there have been so many different types of mortgages available on the market enabling people to get a foot on the investment property ladder easier.

It is impossible to predict if property values will increase forever. However, when you consider that historically, property in the UK has doubled in value every seven to nine years, then it is not difficult to understand that it is a fantastic investment platform if you are prepared to take a long term view.

A successful property investor makes money both in a rising and in a declining market. For example, during a rising market, property investors can release some of the equity built up over time to either purchase additional properties or to keep some money aside to be used at a later date. During a declining market, they buy lower-priced bargain properties. This is why market value trends do not affect property investors who are in it for the long term.

You have probably heard that location, location, location is the most important factor to consider when buying property. This is absolutely true as getting the right location can make the difference between success and failure.

I also believe that research, research, research is an equally important element of the property investment process. It is critical to ensure that you learn as much as possible. For example, talk to property experts and estate agents, go to property networking events and exhibitions, learn how to buy the right property at the right price in the right area, find out how to make the right alterations to the property within the appropriate budget, etc. You need to have a thorough understanding and all the relevant facts to hand before committing to a purchase.

And if you don’t have the time or the confidence to take the plunge into property investment then don’t despair. There is a wealth of professional expertise and support out there for every step of the process.

By committing to the long term strategy and by combining research and location, you have a recipe for success.

For further information on how Chez-Vous HomeSearch can assist with your property investment plans, please contact Laurent Stadelmann on +44 (0) 1189 770215 or at laurent@chez-vous.biz.

Laurent Stadelmann
Managing Director

Chez-Vous HomeSearch
Removing stress from the property process!

Property Finder / Relocation Services / Negotiation Service / Location Reports

laurent@chez-vous.biz
http://www.chez-vous.biz/
Tel: +44 (0) 1189 770215

Starting to invest in property in need of renovation

When starting to invest in property in need of renovation you could look for badly maintained or run down properties that need a lot improvement. These homes are much cheaper to purchase but they will take some time and experience to improve. You can also focus on homes that need less work, such as cleaning up, painting, and in some cases new flooring. You do not want to buy something too run down, as it could cost a lot of money to renovate.

If you are a DIY expert and are experienced enough to fix most of the repairs yourself, you can save a lot of money. On the other hand, if you need to hire someone, you should always ensure that the individual or company is qualified accordingly and has a good reputation. People or companies recommended by friends, family or acquaintances are the ones to seriously consider. Ask them for 2 or 3 further references and check out the work they have done.

You should always arrange for a survey to be carried out by a Chartered Building Surveyor prior to the purchase of any property. This will enable you to assess the nature of any defects and if the property is worth investing in. The result of the survey could even help you to re-negotiate the purchase price in your favour.

If you decide to stay in the property renovation business, you will learn a lot over the years. You will work with a team of professionals you can trust. After you have successfully renovated and resold several properties, you will begin to feel more confident with buying homes that need repair. All it takes is time and practice - and you will be buying homes that the average investor would not think twice about. This can be a huge advantage when you are looking for homes to buy and resell, as there will be less competition to worry about. You will also be able to negotiate lower purchase prices, simply because you will be able to use the cost of the repairs to your advantage.

Once you are experienced in renovating properties, even those with structural problems, you will have a huge advantage in the market. You will be able to buy virtually any home, including those that other investors choose to ignore. Doing so can be very profitable, especially when properties are in sought-after areas. After you have done the repairs, you will be able to resell the home for a much higher price than what you paid for.

When you start looking for properties in need of renovation, you should always take your time and buy the right homes. You may not have the money, time, experience, or support to buy the bigger houses at first, which means that there will not be much room for mistakes. Once you have purchased and resold a few smaller homes, you will eventually be able to work your way up to the bigger properties which is where the big profits will come into play.

Always keep in mind that when you first start out, you will need to patient. You cannot expect profits to come overnight, especially if you make a few costly mistakes. Once you have been experienced for a few years and have several properties to your credit, you will be ready to tackle anything. At that point you will make a lot of money in a career that is truly exciting!

Laurent Stadelmann
Managing Director

Chez-Vous HomeSearch
Removing stress from the property process!

Property Finder / Relocation Services / Negotiation Service / Location Reports

laurent@chez-vous.biz
http://www.chez-vous.biz/
Tel: +44 (0) 1189 770215

Factors to consider before buying a property to live in

There are various factors to consider before buying a property that your family will call home. The problem is that far too many people get caught up in the small or cosmetic details of the purchase and search that they forget the primary needs of the family in the process. Keep the following points in mind when considering purchasing a property and you are much more likely to be happy with your decision.

Location: This is one of the most factors in buying a property. The quality of the neighbourhood in which a home is situated is paramount when investing in a property as it influences its current and future value.

Size: When it comes to property, size really does matter. The problem is that it matters differently for different people. Those that are aging and whose families have left home would do well in smaller properties that required lower maintenance. Those with growing families need room to grow not only inside the house but also outside the home. If you have 5 children you do not want to be crowding them into 2 bedrooms nor do you need five bedrooms (unless you want them of course) if you are a confirmed bachelor. Size is an important consideration when deciding on a house that will meet the needs of you and/or your family.

Mortgage: As well as the initial purchase price there are numerous other costs to consider when buying your home. Firstly, unless you are buying your home with cash, you will need a mortgage, which will have to be repaid with interest. There are so many mortgage packages available that you should think carefully about which would be the right one for you. For advice on mortgages you can visit any bank, building society or financial advisor. The internet is also a good source for your research, especially forums.

One off costs: There are also several one-off costs normally incurred during the purchase of a property which would be your responsibility:

• A solicitor or licensed conveyancer to look after the legal side of the purchase
  
• A property survey
  
• Most banks and building societies charge for arranging a mortgage, and also for the valuation of the property that they are obliged to carry out


• Stamp duty has to be paid on any property purchases costing more than £120,000. The current bands are:
  
  Up to £120,000 – nil
  £120,001 to £250,000 - 1% of the purchase price
  £250,001 to £500,000 - 3% of the purchase price
  More than £500,000 - 4% of the purchase price

Living costs: In addition to a mortgage, there are also many other regular costs which home owners normally have to pay:

• Water, electricity, gas


• Council tax


• Buildings insurance


• Contents insurance


• Repair and maintenance costs

School catchment area: Whether or not you have (or are planning) to have children, remember that the quality of local state schools exerts a major influence on property prices. A house or flat in a reputable school catchment area will always be easier to resell.

Amenities: Decide what type of amenities matter to you. Do you want to be near shops, pubs and restaurants or would closeness to a park matter more to you. Buying the right property is not simply a matter of bricks and mortar.

Car insurance considerations: The cost of your car insurance will depend very much on whether your property is classified as being in a high crime or low crime area. If you have a lock-up garage or even just off-street parking, then your car insurance premiums will be reduced.

Public transport: Being close (but perhaps not too close!) to train and underground stations or a main bus route is beneficial, especially if you commute to your place of work by public transport.

Access to roads: Here again, being close (but perhaps not too close!) to roads and motorways is beneficial, especially if you commute to your place of work by car or by motorbike

Finally, two heads are better than one: When viewing a property, take a friend or relative with you. You will have a lot of information to absorb in a relatively short period of time, during a viewing, and it is easy to miss what may turn out to be critical details in the heat of the moment. Your companion may have noticed things that you did not and vice versa. You may want to take a camera with you. If you feel that you have not taken in the whole picture regarding the property, arrange a second viewing.

Laurent Stadelmann
Managing Director

Chez-Vous HomeSearch
Removing stress from the property process!

Property Finder / Relocation Services / Negotiation Service / Location Reports

laurent@chez-vous.biz
www.chez-vous.biz
Tel: +44 (0) 1189 770215