If you are a landlord and are frustrated by the continuous rise in interest rates when all you want to do is start or expand your property portfolio, taking out an interest-only mortgage could be the answer. Many seasoned landlords choose this option when investing in property, even during the good times when mortgage interest rates were ultra-low.

Demand is incredibly strong
A survey conducted by paragon of 700 buy-to-let landlords found that 67% reported tenant demand over the first three months of 2023, up from 65% for quarter four of 2022.* Rents are increasing all the time, and one of the main reasons for this is rising interest rates. As a landlord, this will most likely be your biggest expense.

What is an interest-only mortgage?
Just as the title suggests, you only pay the interest and not the capital on an interest-only mortgage. At the end of the agreed-upon term, you must pay off the entire balance owed. Because you are only paying interest, your payments will be much cheaper compared with a capital repayment mortgage. Some landlords choose to sell their property to repay the outstanding balance.

So why choose an interest-only mortgage?

• Increased profit: if your payments are lower, there is far greater scope to make a profit from your buy-to-let business. This also gives you stability and lowers the price of your overheads, which could be less than half of that when repaying a capital and interest mortgage.
• Overpaying: while it’s possible to make overpayments on an interest-only mortgage, this will typically only reduce the amount of interest outstanding on the mortgage. If you choose to do this, your profit will increase further, giving you more options to expand your portfolio.
• Your property’s value: in the long term, property increases in value. It’s not an absolute guarantee, but if you look into the past, despite short-term rises and falls, property values have significantly increased. This is not expected to change in the future. Therefore, it is reasonable to assume that at the end of the term of your mortgage (or if you sell up half or part way through your investment), there will be a profit between the capital outstanding balance on the amount you owe your lender and the selling price of your property.
• You can develop and improve the property: with more profit to plough back into your property, you can develop it. This will add to its value, ultimately increasing how much rent you can charge. And when it’s time to sell up and move on to bigger and better things, you will achieve a greater return on investment. The greener you make your property, the more rent it could fetch while future-proofing your investment.
• Security: preparing for the unexpected is a sure way to protect your investment. And by choosing an interest-only mortgage with fewer outgoings, you are already in a better position should the unexpected occur.
• You can always change mortgages in the future: as you become more seasoned as a landlord, you may devise a strategy so that you own your buy-to-let property outright. There is nothing stopping you from changing your mortgage type after a few years. And in the meantime, use the profit you make with an interest-only mortgage to use as a deposit, reducing the cost of a capital and interest mortgage.

Browse our properties and create the buy-to-let portfolio you have always wanted.

Paragon*

Heathfield’s famous Anglo/French market is taking place on August Bank Holiday Monday...

 

Open-plan living is not for everyone, but with a touch of creativity, you can transform your living spaces into something truly amazing, making your home a delightful place to live. So, if you are unsure which to choose in your property search, here are some ideas that may open your mind.

What is open-plan living?
Open-plan living adds lots of light to your living space and creates a seamless flow between different areas of the house, such as the living room, dining area, and kitchen. This layout creates a sense of spaciousness, makes it easier to interact with others, and can be ideal for families with young children, allowing parents to keep an eye on them while cooking or working.

What is broken-plan living?
Broken-plan living aims to retain openness while also creating a level of definition and division between your living spaces. This is achieved in many ways, from partial walls to furniture arrangements. It provides a balance between open-plan and traditional separate rooms, offering both a sense of connectivity and some degree of privacy.

Do you really have to choose?
It’s all about subtly; there are so many things you can do to take advantage of open-plan living while still creating defined areas that are cosy, private, and full of differing atmospheres as you move to each area of your home.

Add a window
Retain light and create a space within your floor space by adding an internal window. You could do this for the purposes of any function you like, from a play area to a reading space near a fire. This will allow you to have privacy while still being connected to the rest of your living areas.

Create a study
Adding some steps to an elevated study so you can take in the rest of the house while working, reading, or enjoying a hobby is another way to define this space. Use glass, metal, wood, bricks, or plants to create your perfect workspace.

Half-walls
Breakfast bars are nothing unusual, and adding half walls is a blast from the past but still works. Using very small, right-angled half walls made from any material you desire and decorated in interesting colours can have a big impact. Or if you prefer curves or flowing lines, then create those to help divide the areas you feel work. It could be perfect for the kitchen or a great place to watch a movie.

Add a chimney breast
This is a clever way to create cosiness and a classical sitting-by-the-fire feeling while creating privacy. Tall, small, walk-around, or floating fires are brilliant for creating the perfect place to relax while satisfying your desire for more space.

Be creative and be yourself
There is so much you can do to make your broken-plan living space your own. Furniture, whether modern or antique, to trees, sculpture, or a walled wine rack if that’s your thing. Make it your own and experiment. Find inspiration everywhere and own it.

Do you feel inspired? Contact us today to find an amazing home

 

Everybody's house dreams are different. You might just be dreaming of buying a humble terrace house as your first property. On the other hand, maybe you are an experienced property investor and are thinking about something a little more grand. Whether you are renting and want a view of the sea from your perfect cottage or want a large Victorian townhouse, there are many ways to live the dream today. But often, it’s a whole set of reasons that make your dream home just that.

Architecture
Classical design and features found in a Victorian townhouse are always going to be very different from a contemporary design full of light and glazed walls. Perhaps you want to create a perfectly self-sufficient home that can source all its own energy using solar panels and wind power. That said, these days, you can have both. Taking a classical, older home and transforming it into something special with modern design while paying respect to its original features means you can enjoy the best of both worlds.

Location
A view of the mountains or a sun-kissed cityscape? Maybe you prefer the sea? If you are raising a family, then your proximity to great schools will be at the top of your priority list.

Many home buyers love the idea of living in a quiet English village with the perfect pub within walking distance. Perhaps you want all these things within driving distance of your perfect property?

Interior design
It all depends on your personal taste, but there is no shortage of inspiration and help, from furniture suppliers to interior designers, to inspire you and help you find your niche. If money is not an obstacle, marble is always beautiful and timeless. Real wood can create sophistication, but it is also a safe choice when it is time to sell.

Bedrooms
Whichever you choose—a ten-bedroom country home or a two-bedroom terraced house—it's your dream. When it comes to creating the perfect bedrooms, you will want each of them to be unique. And just because you buy a three-bedroom home does not mean it has to stop you from converting one of the bedrooms into a walk-in wardrobe. Perhaps you want the ultimate in comfort by buying a property with a master bedroom complete with an ensuite bathroom.

Bathrooms
Whether you want a wet room or a jacuzzi, the infinite number of colour schemes and designs to choose from will keep you busy if you decide to start from scratch. Or you simply love the idea of incorporating some technology into an already stunning bathroom. Sometimes, when you view your perfect home, you instantly know that your personal items and some plants are enough for you to be really happy.

Outdoor spaces
For many home buyers, having a large garden is an integral part of owning their dream property. And if you have enough space, there is very little you can’t do. From adding a gazebo, work-from-home space, and a hot tub to the little things like nice lighting, they all add up to make your dream home something magical.

Personal touches
Your dream home is not yet fully yours until you add your own personality and interests to it. Whether that is a fine art collection, a wine cellar, a gym, or simply nice flowers, plants, and pictures, it’s only when you have added these elements that you have truly moved in.

Contact us to find your dream home today

The organisers of Local & Live are excited to announce that it will be back again for 2023. The free music festival will return to Calverley Grounds over the August bank holiday...

Now in its eighth year, this is the first of the food and drink festivals planned for 2023. Try, taste and buy from more than 60 stall holders selling delicious range of food and drink.

 

Conducting viewings is no easy task, and this is partially because buyers often arrive with a long list of questions and queries. It’s always best to leave this part of the selling process to the experts, but if you’re curious about what your agent will be asked during viewings, here are some of the most common tricky questions:

How old is the roof?
A prudent buyer may ask how old the roof is. Replacing a roof is an expense that most prospective buyers will want to avoid for at least a few years. Depending on the materials, the typical lifespan of a roof is 15-20 years, so it’s important to be aware of how long it’s been standing before selling.

How much storage space is there?
Your home’s storage solutions could be a hot topic for buyers, especially if your demographic consists of first-time buyers or young families leaving behind the confines of rented accommodation. Having your home professionally staged to showcase its space-saving features is a great way to prepare your home for this question.

How long has the house been on the market for?
Prospective buyers may ask your agent how long your home has been on the market, but this shouldn’t be viewed as an attempt to catch you out. Finding out how long the home has been listed for sale might help the buyer gauge whether they need to act urgently. If the listing is new, this might encourage them to place their offer right away before another buyer comes in.

What’s the area like? <
Committing to a home also means committing to new surroundings and a different community. Having an agent who is well-versed in the dynamics, conveniences and amenities of the local area is paramount in attracting the right buyer.

Is the property freehold or leasehold?
The property’s tenure largely dictates its future resale value, so this is an important question for buyers to ask. If your property is freehold, your agent will be able to utilise this as a key selling point. If there is a shorter lease attached to the home, you may consider extending it to attract a buyer and a higher sales price. However, if you don’t plan on extending your short lease, your agent will know which demographic to market to, such as buy-to-let investors.

What is included in the sale?
Certain fixtures and fittings may attract buyers to your home, so it’s important to clearly outline everything that is included in the sale price so that there is no room for confusion. Buyers may also be willing to offer a higher price to have certain fittings included in the sale, which leaves you in a strong position to negotiate.

Have any major renovations been made?
Finding out if any major reconstruction work has taken place allows the buyer to fully understand the property’s condition and value. As a seller, you will need to provide legal documents relating to any major work completed on the home, so it’s important to be prepared for this question from the offset.

Do you have planning permission?
Planning permission is a highly attractive feature for many buyers and applying for planning permission to add an extension or an extensive remodel only costs around £170 depending on your location. This is a small price to pay when you can add thousands to the value of your home if your application is granted.

What is the energy rating of the property?
The energy rating of a property is crucial to assessing the potential long-term costs of maintaining a comfortable living environment. When preparing your home for a sale, your agent will advise you on any areas of improvement which might help bump up your EPC rating.

Getting an agent on your side
House viewings are tricky business, but an expert agent who has experience in selling homes like yours will have all the right answers to difficult questions from buyers.

 

Contact us today if you want our expert team to sell your home at the right price

It’s come to the end of your current tenancy agreement, and your tenants are ready to move on, but are you? We’re here to supply you with a simplified checklist on how to get ready to place your property back on the rental market. 


Agreed-upon end date 

If you have tenants that have decided to leave or whose contract has ended for your rental property, then you need to ensure you have both confirmed an end date. This is extremely important to ensure that all parties involved are aware of this agreed-upon end date. This should be written down in a contract. This contract should include the signatures of all parties so it can be proven that you have both agreed on it. This will give you a small fraction of safety and protection in case the tenant does not leave the property by the agreed-upon end date. Having this date in the diary will also allow you to plan so you have a smaller gap between tenants. 


Inspect the property

Inspecting the property is one of the most important steps when it’s the end of a tenancy. This will allow you to identify if they have cared and maintained respect for you and your property. Once they have removed all their belongings from the property, you need to ensure you complete a thorough inspection. This inspection will allow you to confirm whether you return their deposit or not. As a landlord, you will need to provide a good reason with evidence to not return their deposit; otherwise, they could penalise you and involve the court. During this inspection, it is also important that you make sure the past tenants have removed all their items from the property.


Check previous payments

Finally, before exchanging the keys and returning the deposit for the property, we would recommend going through all your previous payments with them. This will allow you to guarantee that they have completed all their payments. We would also recommend checking if there are no outstanding council tax and utility bills under the address of the property before parting ways with the tenants. This will allow you to once again be certain they were good, respectful tenants before returning their deposit.
 

Deep clean 

Once you have completed the process with the previous tenants and you are happy, we advise deep cleaning your property in preparation for new tenants. This is not a required step, but if the past tenants have not returned the property to its original state, you can claim the deposit. This can be used to pay for a deep cleaning service and anything else you may have to fix within the property. 

Re-list your property 

Are you happy with your property? If so, the next step is to get it back on the market! After taking updated pictures of the property, it can then be listed and show encouraging new tenants for the future.

If you are an independent landlord or a new landlord entering the market for letting, we advise collaborating with an estate agent. This will reduce your involvement with clients and leave fewer tasks on your to-do list. Allowing you to rent out your properties stress-free.

Get in touch with us today if you are seeking advice

 

 

Understanding how the property market is evolving is crucial to making informed property decisions, especially if you’re considering a move. Let’s take a look at how the market has been shaping up so far this year, why it is a good time to move, and how you can make the most of today’s market.

 

Property prices are stabilising

According to Zoopla’s house price index, property prices did not change between the end of 2023 and early 2024 and decreased by just 0.8% compared to the same period 12 months prior.* This could be indicative of the country’s economy stabilising, with the government freezing interest rates at 5.25% over this period.

As a stabilising market increases the number of affordable properties available, it becomes easier for buyers to find a reasonably priced home within their budget. It also creates a less frantic market, which paves the way for a smoother buying process, allowing buyers to secure their desired property with less pressure from competing offers.

 

Buyer demand has increased

The start of 2024 has seen a promising increase in buyer demand, with figures showing a 12% increase compared to 12 months ago.* This could be attributed to the re-appearance of sub-5% mortgage rates, subsequently improving buyer affordability. Similarly, there has been a 15% increase in new properties appearing on the market for sale since last year.**

One of the primary benefits of higher demand and supply is the possibility of quicker home sales as more individuals look for properties. The increasing supply also ensures that there is a wide variety of properties to choose from, making it easier for buyers to find their dream home.

 

Housing market activity has also increased

The overall number of agreed sales has continued to remain high in early 2024, indicating that buyers and sellers are becoming more aligned when it comes to pricing. With new sales up 13% in the past 12 months and the flow of homes listed for sale up 22%,* it is clear to see that sellers are feeling much more confident.

The alignment in pricing expectations between buyers and sellers allows for smoother negotiation processes, as both parties are likely to reach an agreement more quickly. This reduces stress for both parties and increases confidence that the price they have reached is fair.

 

How your agent can help

An experienced estate agent can help you benefit from stabilising property prices, improved buyer demand, and increased market activity by using their knowledge and expertise to help you take advantage of the market's current conditions. They possess in-depth knowledge of the market and keep up to date with the latest trends, allowing them to provide valuable insights and an accurate valuation of your current property to help you make informed decisions for the future. 

 

Ready to make your move?

 

 

Are you wanting another bathroom or a larger garden? Have you got empty space you’re wanting to escape from? When choosing your next dream home, you can be faced with all sorts of questions, and we want to ensure you are taking a step in the right direction. Both upsizing and downsizing have their own unique set of advantages, and these options cater to different needs and lifestyles.

Everyone will experience upsizing and downsizing throughout their lifetime in the property market, so, let’s discover what’s right for your next property move.

 

Benefits of upsizing

Is Upsizing the Right Move?

Upsizing is one of the most attractive parts of moving houses, as you really feel like you’re finally moving up the property ladder. There are clear advantages when it comes to upsizing, but is it right for you?

 

Additional space

One of the main reasons to upsize your property is for the additional space it includes. There could be a variety of reasons why you need or want this space. This could be led by becoming recently married, wishing to create a family, or desiring a new space for working or certain hobbies. This would create a comfortable living environment for you and your family.

Social life

Having a larger amount of space allows you to host and entertain events, creating an exciting and fulfilling environment around you. This could enhance your social life and mental wellbeing all while creating long-lasting memories within the walls of your new home.

Future investment

Upsizing is an investment, but it is a more financially challenging one. Larger houses get higher in value as time goes on, allowing you to make money over a long period of time. It is very important to ensure you are financially stable before upsizing, as it takes a lot of upkeep and attention to maintain the value of the larger property.

Benefits of downsizing

Simpler lifestyle

The key to downsizing your house is to simplify your way of life. Having a smaller home allows you to focus more on your life outside of your home. Maybe you now have empty space within your home, as all your family have flown the nest and you’re not a homebird anymore, which encouraged you to downsize.

 

Finacial security

69% of homeowners who have downsized in the past said their primary reason was to save money.* Downsizing gives you more financial freedom, as your monthly payments will be reduced. This will also lead to a reduction in the maintenance of a property and its general upkeep, freeing up your time.

Location change

Downsizing could also give you the advantage of moving to a different location for a property, as prices differentiate in different areas, meaning you might have to reduce the size of your property to move to a new location. People assume downsizing is a backwards step when moving along the property ladder, but occasionally it can suit your lifestyle better and should be accepted.

Which one is right for you?

Whether you’re leaning towards upsizing because of the comfort and luxury of moving up the property ladder or you want the simplified life of downsizing, it's key to align the reasons with your lifestyle and determine which one would suit you. Your choice of where to move next should be a personal choice and preference for whatever suits your lifestyle and future.

Whichever home you choose, whether you upsize or downsize, ensure you choose correctly by comparing the advantages of each.

 

 

 

Looking for a home that fits? Contact us today

HomeOwnersAlliance*