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.

 

 

Whether you decide to release equity in your home largely depends on your individual circumstances. Whether you are looking to increase the size of your pension pot or simply want to make some home improvements, you have a lot of options. We can’t advise you, but we take a closer look at some of those options.

What is equity release?

Equity is the amount of value you own in your home after you have subtracted any borrowings, such as mortgages on your property. Releasing equity from your home, in the simplest terms, means using some of that value in exchange for cash. There are a number of different ways to release equity depending on your needs.

Ways of releasing equity

Re-mortgaging 

If you are interested in borrowing more money against the value of your home to make home improvements or even for debt consolidation, this may be an option. If you use your existing mortgage provider, then you may be eligible for additional borrowing. This allows you to borrow more money with your current mortgage. This means if your mortgage is on a better rate currently, you may end up paying more interest. On the other hand, you may choose to find a new mortgage provider in order to get a better mortgage interest rate. 

Lifetime mortgages

Aimed at homeowners aged 55+, this type of mortgage allows you to borrow a proportion of your home’s equity. You could do this in one or a series of lump sums, while drawdown allows you to take equity as and when you need it. Interest will then be charged on the amount you borrow, which will be repaid when your home is sold. Most mortgage providers will allow you to repay up to 10% each year on the loan amount you borrow as equity from your home. It’s important to check that the scheme you choose comes with a no-negative equity guarantee in case mounting interest exceeds the value of the property in future years.

Home reversion 

Targeted at homeowners aged 60+ this scheme involves selling part of your home to the lender for a lump sum or an agreed income for a percentage of its market value. For example, you may sell 50% of your home for 30% of what it’s worth. While you can carry on living in the home, you will only receive a percentage of the market value for the share of your home you sell to them. This makes this scheme less popular than a lifetime mortgage due to its costly nature. When the home is sold, the revenue from the sale is divided according to the percentage each party owns, which includes any increases in value. 

Could downsizing be a better move?

If you need to fund your retirement and find yourself in a position where you have too much space, downsizing could be a better option. Most people are not best pleased about taking equity out of their homes. It can be a complicated and confusing process, which could erode any inheritance you leave for loved ones. Most people prefer the idea of owning their homes outright. Moving to a smaller, more energy-efficient property could give you a lump sum to fund your future plans without relinquishing any part of your home ownership. 

Discuss your property options with a good agent 

Sometimes properties themselves can hold the key to new opportunities and the solution to a better future. So, whether you want to downsize and use the profit from selling your old property to start a property portfolio, help family get on the ladder or to retire, it’s worth talking to your agent. Maybe you are making home improvements and want to know how much value you can add to your home. Perhaps you have hatched an ingenious plan that could involve letting part of your property to build a nest egg. Whatever your plans are, it's important to seek the right advice.

 

 

 

When buying a property, there are several additional costs you pay as well as the home’s actual price. These can range from legal fees, surveyor fees, moving costs, and Stamp Duty. In this article, we discuss the UK's infamous Stamp Duty, exploring its definition, introduction, and evolution over the years.

What is Stamp Duty?

Stamp Duty is a tax you pay when buying land or a freehold or leasehold property over a certain value. The amount of Stamp Duty payable is determined by the price of the asset, how it will be utilised, and whether you own any other property. If you're a first-time buyer, you're currently exempt from paying Stamp Duty on your first property purchase for up to £425,000.

Why was Stamp Duty introduced?

In 1694, Stamp Duty was originally introduced to England as a transaction tax to raise money for the war against France. It first appeared on documents required to sell land, properties, and any other legal transactions. If documents did not have this ‘stamp’, they were not legally valid, which made sure everyone paid Stamp Duty. 

The money raised by Stamp Duty tax was used to fund goods throughout the war, such as newspapers, clothes, hats, patent medicines, and much more. This tax was originally intended to only last for four years, but since then, Stamp Duty has remained present in English society to current day.

Stamp Duty in the past

1765 - Stamp Duty was introduced to the British-American colonies. This tax began to rise, triggering the start of the American War of Independence.

1808 - Originally a fixed amount, Stamp Duty became introduced as a percentage of the value on transfers of properties, land, and shares of what was being transferred.

1950 - If you bought a property with a higher value of £30,000, you would only need to pay one percent of Stamp Duty.

1991 - Due to the major recession in 1991, Chancellor Nigel Lawson increased the Stamp Duty threshold to stimulate demand in the property market.

1992 - As demand grew, the rates were reverted to their original state (£30,000) in 1992. Over the years, the rates steadily increased, matching inflation and the rise in the cost of living.

1997 - In 1997, Chancellor Gordon Brown introduced two different bands of Stamp Duty tax: a lower and higher threshold. These responded and increased due to the rise in house prices.

2014 - Fast forward to the 2000s, when progressive charges were introduced. First-time buyers were announced to be exempt from Stamp Duty on properties up to £500,000.

2020 - A worldwide pandemic hit, and the UK government decided to introduce a Stamp Duty tax holiday to boost property purchases. This allowed all property purchases up to a limit of £500,000 to be Stamp Duty tax free.

Stamp Duty in the present

Currently, Stamp Duty is payable on all property purchases. The amount payable is all dependent on the value of the property. A property valued up to £250,000 has 0% Stamp Duty payable, as well as first-time buyers being able to buy a property with a value of up to £425,000 and pay 0% Stamp Duty.

If you purchase a property between £250,001 and £925,000, you will have to pay 5% Stamp Duty and if the property is valued between £925,001 and £1,500,000, you will pay 10% Stamp Duty. Finally, any property above £1,500,001 has 12% Stamp Duty payable.

Stamp Duty in the future

So, as you can see, Stamp Duty has been around for over 329 years! And it shows no sign of going away. With a change of election having occurred in July 2024, the future of Stamp Duty is most likely going to change. The main change that has been announced to occur under the new government is first-time buyer relief.

Currently, the first-time buyer relief is set at £425,000, but the new Labour government plans to reduce this to £300,000 in April 2025. Labour have also decided to introduce an extra 1% raise on Stamp Duty for non-UK residents, meaning the surcharge will increase to an extra 3% when they purchase a residential property in the UK.

 

 

The past of Stamp Duty

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The present of Stamp Duty

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The future of Stamp Duty

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As a landlord, ensuring the safety of your tenants is not only a moral duty but also a legal obligation. Fire doors play a critical role in protecting lives and property; therefore, understanding your responsibilities regarding fire doors is essential to maintaining compliance with the law. Here’s what every landlord needs to know about fire door responsibilities.

What is a fire door?

A fire door acts as a vital safety device in the event of a fire by delaying the spread of both flames and smoke. This gives tenants critical time to get to safety, while also minimising the damage caused to the property.
Fire doors are an integral part of a building’s passive fire protection system and are essential in communal areas and any space where a fire could pose a significant risk. Certified fire doors must be rigorously tested and supported by a safety performance certificate to prove that they have been tested in accordance with British standards.

Who is responsible for fire doors?

While the landlord is responsible for the fire doors in the property, it’s wise to talk to your tenants about the rules regarding fire safety in rental properties. You could also provide them with a handbook which details the rules they will need to follow while living in the property.
For example, propping open a fire door is against the law due to the risk it poses to the tenants and others.

Fire door legislation

In the UK, fire safety regulations are primarily governed by two key pieces of legislation: the Regulatory Reform (Fire Safety) Order 2005 and the Housing Act 2004. The Fire Safety Order applies to all non-domestic premises, including common areas of residential buildings such as blocks of flats or houses in multiple occupation (HMOs). Under this legislation, landlords must carry out regular fire risk assessments, identify fire hazards, and take steps to reduce risks, including installing and maintaining fire doors.

Where should fire doors be installed:

Landlords are responsible for ensuring fire doors are installed in the following areas:

• HMOS and multi-occupancy buildings: Fire doors must be installed in all rooms that lead to communal areas, such as hallways and stairwells. This includes kitchens, living rooms, and bedrooms in HMOs.
• Flats: In blocks of flats, fire doors should be installed at the entrance to each flat and in any communal areas such as corridors and stairwells.
• New builds and renovations: Any new building or renovation must comply with current fire safety standards, including the installation of appropriate fire doors where required.

Maintenance and inspection

Fire doors must be regularly maintained and inspected to ensure they remain effective. Landlords should conduct or arrange for a professional fire risk assessment that includes checking the condition of fire doors. Key things to look for include:

• Door alignment: The door should close properly, without gaps that could allow smoke or fire to pass through.
• Intumescent seals: These seals expand in heat to block gaps around the door, and they should be intact and properly fitted.
• Hinges and closures: Check that all hinges are secure and that the door closer functions correctly, ensuring the door closes automatically.
• No modifications: Any holes, damage, or modifications can compromise the fire door’s integrity.

Additionally, fire doors must be clearly labelled with appropriate signage indicating that they are fire doors. Signs such as ‘Fire Door – Keep Shut’ should be placed on both sides of the door. This is particularly important in communal areas, where tenants or visitors may not be aware of the door’s importance.

 

Your home is your most valuable asset, so your choice of agent shouldn’t be taken lightly. Working with an expert you can trust is crucial to the outcome of your sale, so you’ll need to conduct some research to ensure your decision is well-informed.

Here are the key indicators of a good agent:

Local presence and experience

A reliable agent will be experienced in selling properties similar to yours and well-versed in the intricacies of your local market. Make sure they can provide you with local insights such as trends, values, and any potential changes. You’ll often find that reputable businesses have a visceral local presence, with ‘SOLD’ boards all around and a comprehensive website full of details about the community.

Integrity

An accurate valuation is the key to a successful sale, so you’ll need an agent with a solid and reliable strategy. Some agents will offer up an unrealistic figure to get you on board, which often results in the home languishing on the market or failing to secure a buyer at all. A good agent will thoroughly assess your home, considering a multitude of factors such as recent sales data, the condition and appearance, and current market demand.
They can use this information to paint a full and accurate picture, ensuring that your property is competitively priced.

A solid marketing strategy

While the market remains competitive, a robust marketing strategy is what will set your sale in motion. It’s important to inquire about your potential agent’s approach to marketing, including both online and offline channels, professional photography, and any special strategies they might use to showcase your home in its best light.

First impressions

Your agent’s style of communication should be apparent from the first meeting. It’s important to set clear expectations on how you hope to be contacted if you work together. Whether it’s emails, phone calls or face-to-face meetings, the right agent will maintain an effective and consistent line of communication from the offset.

Glowing reviews

Reputable businesses are proud of their client testimonials, so it shouldn’t be difficult to find glowing reviews on the website. Customer feedback is the valuable insight you’ll need to get a gauge of the agent’s reputation, so don’t hesitate to do your research first.

How do they handle negotiations?

Having a strong negotiator on your side is crucial when it comes to selling a home. You should ask any potential agents about their approach to negotiations as well as their strategy for securing the best possible deal for you while also maintaining a positive relationship with potential buyers.