Buying your first home with a small deposit

According to the Bank of England, the biggest issue for most first-time buyers is insufficient savings.  Last year saw a sharp jump in the average amount of a deposit required to get a mortgage, with some people having to provide a deposit equivalent to a full year’s salary. To help tackle this problem, the Government is introducing a new mortgage guarantee scheme until December 2022. Here we look at the latest proposal and other ways to help you buy your first home even if you only have a small deposit. The 95 per cent mortgage guarantee scheme During the pandemic, lenders have tended to ask for large deposits and 95 per cent mortgages have virtually disappeared. The new mortgage guarantee scheme, announced in the Spring Budget, is designed to encourage lenders to start offering higher loan-to-value…

Protecting yourself from property fraud during the pandemic

Online fraud has boomed during the pandemic, with one police force reporting a 400 per cent rise in offences. While your home may not seem like an obvious target, more and more criminals are turning to property transactions because of the large sums of money involved. Here Holly Stevens, Head of Residential Property at Ware & Kay in York gives some advice on how you can avoid becoming a victim. Be aware of the different types of property fraud Research shows people often worry about credit card scams more than conveyancing fraud. This is despite losses from property fraud being much greater in value, with some customers struggling to recover their money. A bank may refuse a refund if it acted on genuine instructions, even if the customer was tricked.    If you are buying or…

Selling your apartment and avoiding some pitfalls

According to recent news stories, some owners are struggling to sell their homes because they live in an apartment block with exterior cladding. Coupled with mounting criticism of the leasehold system, you may worry that selling your flat will prove more difficult than you had hoped. Leasehold flats are a long-established feature of this country’s property market.  In most cases, selling your leasehold apartment should not be too different from selling a freehold house, although there may be additional issues to address and the process may take a little longer. Recently, there has been widespread coverage of some of the problems associated with leasehold properties. These have ranged from escalating ground rents to exorbitant service charges. If you have concerns, it is a good idea to talk to your solicitor early on so that she can…

Residential landlord update – what does 2021 have in store?

The last 6 years have seen an explosion of new regulation for residential landlords and 2021 looks like it will be no exception. Here are some of the changes ahead that we have identified as being of potential significance for landlords. The ongoing implications of Coronavirus Act 2020 for recovering possession The Coronavirus Act 2020 received Royal Assent on 25 March 2020 and came into force on 26 March 2020. The Act 2020 was passed as an emergency measure in response to the spread of COVID-19. With the aim of protecting residential tenants from eviction, notice periods in relation to possession proceedings for certain residential tenancies have been extended. Notice periods in notices seeking possession of properties let on an assured shorthold tenancy (AST) served under S8 and S21 of the Housing Act 1988 have been…

Meeting your conveyancing solicitor, what you need to prepare

Preparing and collecting all the information for your first meeting with your conveyancing solicitor, whether that meeting is face-to-face or virtual, will get your transaction off to a good start. Here Holly Stevens, Head of Residential Property with Ware & Kay in York looks at how you can help to get things moving quickly. Prepare ID and source of funds evidence As your solicitor, we cannot start work until we have checked your proof of identity. These ID checks may seem a bit bureaucratic, but they are legally required to comply with anti-money laundering regulations and will help protect you against fraud and identity theft. Requirements vary from firm to firm, so check with us beforehand and make sure you have the relevant documents. Typically, you will need proof of your identity, which can be either…

Five more potential problems with your title (and how to fix them)

As many buyers look to take advantage of the temporary stamp duty holiday, now could be the right time to sell your home. To ensure any sale progresses smoothly, it is important to make sure the title to your property is in order. Last month, we outlined five potential problems with the title to your property. In the second of this two-part series we look at five more possible title problems, which could disrupt your plans and offers some solutions. Your property is leasehold Unlike a freehold, a lease is a wasting asset. If you have a term with 80 years or fewer left, then you may find it harder to sell because buyers sometimes struggle to find a suitable lender as many require a minimum term. The good news is you may have a legal…

How to avoid being a victim of property fraud

Property fraud is where fraudsters try to ‘steal’ your property, most commonly by pretending to be you and selling or mortgaging your property without your knowledge. Since 2009, the Land Registry has stopped fraud on properties worth more than £80 million. Holly Stevens, Head of Residential Property at Ware & Kay in York advises how you can protect yourself from becoming a victim of property fraud. Who is at risk? You are more at risk of property fraud if: your identity has been stolen; you rent out your property; you live overseas; the property is empty; the property is not mortgaged; or the property is not registered with the Land Registry. Ways to protect yourself There are several steps you can take to protect your property from being fraudulently sold or mortgaged: Ensure…

Registered and unregistered land, what is the difference?

There are two systems of recording ownership of land in England and Wales; registered and unregistered.  Whether your land is registered or unregistered can have a major impact, and not only when you come to sell. Holly Stevens, Head of Residential Property with Ware & Kay in York, considers the implications. Registered land, an overview The Land Registry keeps a register of all registered land, which is indexed on a map. This register contains information on approximately 24 million properties.  Within this overall register, the Land Registry allocates properties their own unique number and individual register.  Each individual register includes three sections: the ‘proprietor register’, which contains ownership information; the ‘property register’, which contains a description of the property, linked to a map; and the ‘charges register’, which contains details of any mortgages or charges…

Equity release, your questions answered

Record numbers of homeowners are choosing to unlock the money tied up in their homes through equity release schemes.  The promise of access to cash without having to move is an attractive proposition but taking out money from your home to enjoy your retirement or provide financial help to family members comes at a cost. Holly Stevens, Head of Residential Property with Ware & Kay in York outlines the risks and answers some frequently asked questions. What is equity release? To understand what equity release is, you first need to understand what ‘equity’ in the context of homeownership means.  Put simply, equity represents the difference between what your property is valued at and any money you owe on it. For example: Property valuation £300,000 minus mortgage £100,000 = equity £200,000 Equity release provides a way for…

Buying a home with friends or family

In most places, the property market appears buoyant with prices continuing to rise. Although good news for many, this could make it more difficult if you are looking to get onto the property ladder. If affordability is an issue, one possible solution is to pool resources and to buy with friends or a partner and research suggests this is a growing trend, especially with younger buyers. If you are thinking about buying a home with others, there are things you should consider first. Here Holly Stevens, the Head of Residential Property at Ware & Kay in York looks at the issues involved and offers some advice. Joint ownership, the legal basis Joint ownership is a little more complicated than owning a property outright, as the legal structure must take account of the relationship between you and…