Posts Tagged ‘developing’

Do you need to consider a Contractor Mortgage?

The following article has been submitted for publication by Rob Turner of Contractor Mortgages Made Easy. Walker Fox have no affiliation with Contractor Mortgages Made Easy and this article is published entirely for information purposes only and should not be considered as financial advice or otherwise.

 

What is a contractor mortgage?

Obtaining a mortgage in recent years has become increasingly difficult for a variety of different people. With so many people applying for loans, all of which possess different economic situations, many lenders have begun to recognise the need for a variety of different mortgages, so that an array of people are able to obtain the right mortgage for them.

 

A group of people that often struggle to obtain a mortgage more than any other group is contractors and often the only and best option available to contractors is a contractor mortgage. A contractor mortgage is considered by lenders as a ‘prime rate’ mortgage product that includes bespoke underwriting. Essentially this means that a mortgage lender will carefully and thoroughly assess a contractor’s application on an individual basis rather than a ‘one fits all’ mortgage offered to other borrowers.

 

There are a range of different factors that are considered by lenders for each individual borrower, these factors include the contract rate of the contractor. The current retained profits of the individual. Also the duration of existing contracts held by the borrower and the length of time an individual has been a contractor or freelancer. All of these factors essentially assess a contractor’s financial stability, job stability, current assets as well as assess a number of other aspects of an individual’s employment.

 

A large number of people can apply for a contractor mortgage because many lenders do not have a set of criteria for this type of mortgage. In fact many people will be surprised at the variety of mortgage products available for this type of mortgage, for example first time buyers or those with an adverse credit rating may benefit from choosing a contractor mortgage. Although, contractor mortgages are often only recommended to contractors and the self-employed as it offers these individuals the most benefits.

 

While there are a number of other alternatives for contractors and certain contractor mortgages can be difficult to obtain, most lenders who offer this option strongly recommend it as it can offer the most benefits to self employed individuals.

Contractor Mortgages Made Easy is a trading name of Mortgages Made Easy Limited.
Authorised and regulated by the Financial Services Authority (FSA reg. 414798).
Registered in England No. 4886692 Registered Office: 9 London Road, Southampton SO15 2AE.
Your home may be repossessed if you do not keep up repayments on your mortgage.

Please be aware that Buy To Let, Commercial Mortgages and Overseas Mortgages are not regulated by the Financial Services Authority.

 

Walker Fox Ltd are Commercial Management & Property Consultants who act for property investor clients in and around Wakefield, West Yorkshire.

Please leave a comment if you have enjoyed the article or contact Walker Fox on 01924 896190, via email info@walkerfox.co.uk, Skype: walkerfox or connect on Twitter@walkerfox

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Green Towns – From Eco to ‘No go’ A guest blog by Graham Barnfield

Until the 2010 general election, one of the cornerstone proposals of UK housing policy was the creation of “eco-towns”, pioneered by then Chancellor of the Exchequer Gordon Brown. His push for a new, environmentally conscious type of conurbation has been reinforced by official insistence that new-build flats and houses also incorporate a wide range of energy-saving, carbon neutral technologies. Taken together, these policies represent a new approach to meeting Britain’s housing needs.

Green Home

In a country where the volume of new-build housing is at best insubstantial, all this seems like a welcome development. Britain is still a long way off completing the estimated five million new homes needed by 2010, but optimistic estimates suggest that eco-towns can make a dent in this target. Central government support for these proposals remained strong right up until the formation of a new Parliament.

 

On a more administrative level, local projects are often nudged into accepting “green” technologies as a consequence of the planning process. Developers face an expanded range of technical stipulations when applying for planning permission, with energy efficiency and carbon neutrality as key objectives. In its intentions, it seems the planning system wants to make every future home into an eco-home.

 

Yet public support for such projects is often limited. Ever since the 1969 Skeffington Report, planning decisions require local consultation. Effectively, this meant that well-organised NIMBYs – the “not in my back yard” brigade – can block new homes at will, even eco-homes. According to construction consultant James Heartfield, “this policy is designed to square the circle of a commitment to defending the countryside against expansion, while also getting new homes built. Of course, the policy is all things to all people, which is the same as being nothing at all.”

 

In contrast, supporters of eco-homes argue that skeptics like Heartfield are helping to destroy the planet. This can be seen from the response to pundit Germaine Greer, who wrote in The Guardian newspaper of her constructive criticism of eco-homes, apparently prompting a sack of hate-mail from environmentalists. Greer’s article claimed that Gordon Brown’s eco-towns would need innovative design – specifically moveable solar panels – if they are not to be environmentally catastrophic and useless to their inhabitants. “My view of vernacular architecture is that it is a thing of the past – often lovely to look at, terrible to live in,” she claimed (11 August 2008). Hostility to Greer demonstrates the way that eco-towns invite public divisions, along the lines of existing beliefs and local loyalties.

 

Twelve years ago the Urban Task Force decreed that only land that was already built on – ‘brownfield’ rather than ‘greenfield’ land – should be developed. Following the logic of this, opponents of eco-towns, who often live in adjoining properties, are quick to redefine the sites of new developments as being in the countryside, regardless of the land’s previous function. Such arguments may decide the fate of Pennbury, a proposed settlement in Leicestershire built on land formerly owned by the Co-operative Society.

 

One step down from the creation of green towns is the installation of green technologies in individual new-build properties. Anecdotally, the results so far seem uneven, with residents reporting unreliable services and considerable inconvenience. A trip to Oakhurst Court (now renamed)  – an “affordable housing” settlement built on the site of a former timber yard in northeast London five years ago – shows how some of these projects are shaping up. The Court was marketed in ways which made much of its environmental credentials. In one corner of the L-shaped estate was an electricity generation wind turbine, while solar panels adorn the sloping roofs. In turn, each panel is linked to a water tank, underwriting the promise of free hot water, warmed by the sun.

Here the problems began – as more or less conceded by the developers within months of handing over the last set of keys. First of all the wind turbine was dismantled, allegedly because it presented a safety hazard when faced with, er, high winds. It did not last long enough to assess its real ability to supplement residents’ electricity supplies, let alone sell power back to the National Grid. Once the British winter got under way, the solar panels fared little better than the turbine. Before long workmen were going door to door, installing timer switches to the “emergency only” immersion heaters. This allowed residents to bathe and shower without having to rely on adequate supplies of sunshine breaking through the clouds all year round.

 

In fairness to Oakhurst Court, the causes of some of the residents’ problems are far from technical. The “mixed use” aspect of the development eventually filled the set aside “key worker” flats with actual owners, some of whom subsequently moved house as part of their jobs. Meanwhile neighbouring properties were purchased by buy-to-let landlords, leading to high turnover in tenancies. The promise of community has proved elusive, meaning that the luxuriant, grassy play area is not the site of countless barbecues and get-togethers, but instead a “Panopticon yard” and peeper’s paradise. Communities seldom form spontaneously, but even the diluted eco-housing of a place like Oakhurst Court throws up artificial barriers to neighbours really getting to know each other.

 

In microcosm, the Oakhurst Court experience tends to confirm the wider lack of support for the concept of eco-housing. Residents tend to find the eco-measures inconvenient and time-wasting, whereas the true believers committed to the concept will accept the nuisance associated with these measures. The future residents of eco-towns will tend to be a self-selecting bunch, willing to tolerate the petty inconveniences that will be built into these projects – if they get built at all.

 

About the author

Graham Barnfield is Programme Leader for BA Journalism at the University of East London. He is a domain editor for Reconstruction: Studies in Contemporary Culture and a Fellow of the Wolfsonian-FIU. With Philip Hammond, he co-edited the 2011 Journal of War and Culture Studies special edition on the Global War on Terror in News and Popular Culture.

This article was compiled by Rob Hubbard of Walker Fox Ltd.

Walker Fox Ltd are Commercial Management & Property Consultants who act for property investor clients in and around Wakefield, West Yorkshire.

Please leave a comment if you have enjoyed the article or contact Walker Fox on 01924 896190, via email info@walkerfox.co.uk, Skype: walkerfox or connect on Twitter @walkerfox

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Did you check your tenant’s history before you handed them the keys?

Mortgage lenders are looking more favourably on the buy to let market once again which is great news for anyone wanting to make a living out of letting properties. Take out a mortgage, buy a property, find a tenant and bingo – life couldn’t be easier…..or could it?

The trouble is if the tenant you find doesn’t  pay their rent,  uses your property as a cannabis farm or wrecks the place before vanishing without a trace then that little dream of making a bob or two could turn into a nightmare.

If that happens,  not only do you have a hole in your expected income, court proceedings to wade through or a huge repair bill, you also have the mortgage repayments.

That is why it is essential to check your tenant’s history before you hand them a key to your property.  It is vital to find out as much as possible about your next prospective tenant, giving you the confident to let your property and that extra help, knowing your mortgage will be paid at the end of each month.

TenantID is a nationwide database which can tell you at the touch of a button whether the person wanting to rent your property is a safe proposition or has a track record of trouble. The information is provided by people  like you and the aim is to create a nationwide network of people in the lettings industry sharing information to protect one another from rogue tenants.

To find out how you can join the TenantID network and make informed choices  about your future tenants – visit www.tenantid.co.uk and register online for FREE.

This article was compiled by Rob Hubbard of Walker Fox Ltd.

Walker Fox Ltd are Commercial Management & Property Consultants who act for property investor clients in and around Wakefield, West Yorkshire.

Please leave a comment if you have enjoyed the article or contact Walker Fox on 01924 896190, via email info@walkerfox.co.uk, Skype: walkerfox or connect on Twitter @walkerfox

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HI TONY, CAN YOU WRITE A BLOG ON BATHROOMS FOR WALKER FOX?

Being on Twitter can throw up some interesting challenges.  It’s all part of the modern world of social media. When I saw a tweet with the request from Rob Hubbard at Walker Fox (@walkerfox) for a blog about bathrooms, well that’s a whole universe right there in one word, a massive subject.  I could write a book.

What was it Rob was looking for, I wondered.  Perhaps examples of opulence:   twin Japanese baths with champagne table taps, a basement spa glistening with LED lighting in striking colours, set in to an Antolini marble slab lovingly hand-selected from a quarry, or was he thinking more in terms of a modest townhouse bathroom with a contract steel bath, wall mounted basin and WC with a soft-close seat, sensible mid-range taps with a touch of the designer about them, perhaps matching a handset on an adjustable slide rail?

Was it a story on the history of bathrooms Rob was thinking about, or perhaps a property developer/estate agent’s view?  There are many aspects of perfect bathroom design and functionality to consider.

Of course, as bathrooms come in a myriad of shapes and sizes, being asked to pen a piece on them I find myself reflecting on that very fact more than once. In fact, with Rob laying a blank sheet in front of me with the word “bathrooms” atop of it, I am reflecting upon it for much longer than the average duration of a soak in a Jacuzzi while waiting for inspiration to flow like hot water from a Megaflo system! (Megaflo’s are a blog for another day!)

My chain of thought was interrupted by a call from Andrew Dunning – a good friend and an exceptional interior designer (APD Interiors) (@andrewdunning) – brilliant timing, Andrew!.. Inspired at last to hit the keyboard!  “Hi Tony, I have a project in Central London with two bathrooms in the house. Can you have a look at the drawings and come up with some specifications?” Andrew was, as usual, working on a complete home here, designing the living area, kitchen, hallway, the whole nine yards.  And the back yard too!

Bathroom with sunken tub

 

What type of bathroom do we expect someone to want in a London town house?  I asked Andrew what kind of lifestyle do his clients have, what are they like?  The answer was that they were busy professional people who were looking for design and style, but equally important to them was that the design must be functional, uncomplicated and easy to live with.  Okay, what style are they interested in?  These days bathroom style can mean modern, contemporary, very minimalist or traditional. In the mix somewhere are the weird and wacky ones for the more adventurous and creative clients with larger budgets. We were recently asked by a well-known comedian for a “Goth bathroom” with black semi-sunken bath, sanitary ware and black slate tiled walls and floors.

Instead of a glass screen, the client wanted a bespoke black glass beaded shower curtain threaded and interwoven with silver chains! For the shower and taps he chose Grohe Ondus Brassware in … black.  Job done. He was happy and we were happy.

The reply from Andrew was, ”I’m going for a modern contemporary appearance with this project, so don’t go over the top, but make it classy”.

Staying focussed on our town house bathrooms then, the style determined and products carefully chosen, these two mid-range bathrooms, with Andrew’s twist of design and his creative magic, will be turned into something special.

One bathroom had an existing bath we would remove, as it was smaller than the space available. These days, 1800mm baths are preferred in homes where space permits. An average bath size is 1700mm, with two tap holes at the end where the waste and plug are.  Bath designs have changed over the last few years – the no-tap hole bath is finding favour, with water being supplied from a combined bath filler and overflow system.  Taps are not required, making a much simplified, styled and less cluttered bath, with the added perk of being easier to clean. So now we have a larger bath we can install with more elbow room – 100mm wider than the old one, adding comfort.  And as London’s water is notorious for lime scale, having no bath taps is one less place for the nasty stuff to build up.

Laufen "Form"

 

Basins and WC’s in bathrooms have also changed and evolved.  Water saving and green issues are important factors to consider.  There are plans to charge individually for water in the near future, by the compulsory fitting of water meters in your home, if you don’t already have one. It is said an average person uses 130 litres of water per day, so with a rising population thinking green makes good sense for everyone.

When planning a modern bathroom, I will look carefully at the water saving products available to me when specifying.  I know my client will always appreciate future cost savings on water and energy bills. Having supplied and worked with Laufen Bathrooms for a long time, I also see the technology developing in other areas: a quiet flush WC, for example, is not the first thing that a client normally thinks of, but makes perfect sense – toilets are often up against the other side of a bedroom wall, so a noisy flushing WC in the middle of the night can shake the house.

Storage has become important in bathrooms, as we all seem to be overrun with bottles, jars, make-up, etc. and creating extra space to keep things tidy can be difficult.  Gaining extra space by utilising the area underneath the basin for less-used products or cleaning supplies is worth looking at.  I like the look of wall mounted basins such as a Laufen “Form” with a minimalist square or round chrome bottle trap, only resorting to a pedestal basin when a client asks for one.  Space underneath the basin is then available for a cabinet, either standing on legs or on the floor.  A vanity unit wall mounted with a free-standing basin, or perhaps an in-set basin, are interesting alternatives.   Schneider manufactures beautiful bathroom cabinets for above the basin or other wall spaces, fitted with an electrical shaver/toothbrush supply socket and clever lighting.  Laufen Case furniture is extremely well-made and many of Laufen’s basins are designed with optional cabinets.  Arlex and Madero are bathroom furniture manufacturers with very attractive and desirable storage ideas, which we have used on many of our projects.

Looking at our two townhouse bathroom WC’s, we can wall-hang one of them as the wall allows for a cavity to construct the concealed cistern.  This will look very stylish and keeps everything off the tiled floor.  The cistern concealed in the frame will support the weight of the pan.  We have used Grohe Rapid frames or Geberit frames, and both are easy to install.  A shelf or stone feature top which lifts to give access is a nice touch.  We will be using two versions of a WC pan in this project.  The second bathroom will have a close coupled WC.  The close coupled pan is being used as we don’t have enough wall space available behind the pan to create a cavity for a cistern.  A close coupled WC is what most of us know as a china cistern and pan with a push button, as the cistern is coupled to the pan.  We often use Laufen, NoCode and Catalano, all European manufacturers with fabulous ranges.  Both toilets will be fitted with soft closing seats. Soft close seats have been around a long time but only recently have clients started to realise they are worth the extra money.  The jarring sound of a dropped seat can be confined to history.

Shower with concealed controls

 

With projects involving modern bathrooms, a choice of brassware and valves has to be decided. Where possible, specifying controls for a shower which can be concealed in the wall are my preference. Concealed valves and controls such as these afford the client the opportunity to locate them exactly where easiest to use.  An exposed valve is the alternative.  All the working parts are fitted to the wall, less work is involved to install it and it is often cylindrical in appearance.   Personally, I dislike any shower that has a control positioned in such a way that I have no choice but to be drenched in hot or cold water before being able to set the temperature correctly. With smaller shower cubicles of course, there is often no choice unless the control is outside the cubicle, which is rarely practical.  Remote controls are hardly new to the market, but there are more around now than there once were.  They can prove very useful in setting the temperature without even being in the bathroom, let alone having to endure being blasted with cold water.

In the second bathroom, we are specifying a shower only as space is at a premium – only 800mm square – so even a walk-in shower is not viable.  Using a minimalist white stone resin tray with an 8mm thick glass-side panel and pivot door opening out, we save space by pivoting, rather than hinging on to the frame.  For brassware in our mid-range bathroom projects, Vado, Hansgrohe, Grohe and Waterfront are a good bet. If you are blessed with a higher budget then Gessi are a fabulous manufacturer with wonderful design ranges. Most of our work though is definitely mid-range with perhaps 20% at the very high-end.

If I had to summarise what the average bathroom requirements are in 2011, I would say functional, well-planned, stylish and affordable.  Clients want attractive, easy-to-use, easy-to-clean products that fashion will not render obsolete by the end of the year.  Such is the by-product of the national belt-tightening for many of us.  A client who is a guitarist living in St Johns Wood, mentioned to me while we planned yet another bathroom for his house  (with rain bars, body jets and waterfall overhead shower), “I like going ’round my mum’s council flat.  Her bathroom is so simple, it’s less hassle! And who was I to argue? As we planned his walk-in wet-room, he passed me his 1957 Gibson Les Paul picked from a row of guitars to have a look at.  When he told me what he paid for it, I gently replaced it on its stand. Like bathrooms, it’s all about what you like, what you can afford and the compromises you are willing to make along the way.

 

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Does your tenancy agreement give you confidence?

Tenancy agreements are important. They make it clear what you expect from your tenant and when they sign the dotted line you have a contract stipulating they will abide by the rules you have set down. That’s the theory.

In reality tenancy agreements sometimes have the amazing ability to stretch wide enough for your tenant to drive a coach and horses through them. No pets? One landlord managed to evict a problem tenant only to find he had left a very large snake behind and although it is understood that your property should not be used for illegal purposes it is astonishing just how much cannabis is grown and just how many brothels spring up in rented properties.

So I ask a simple question, “does your tenancy agreement give you the confidence or would you like to know more about your next tenant before you get them to sign?”

TenantID is a nationwide database which can tell you at the touch of a button whether the person wanting to rent your property is a safe proposition or has a track record of trouble. The information is provided by people like you and the aim is to create a nationwide network of people in the lettings industry sharing information to protect one another from rogue tenants. If someone has used your flat as a drugs factory or an animal sanctuary you can let colleagues know that the tenant breached their tenancy agreement and hopefully prevent someone else from making an expensive and stressful mistake

To find out how you can join the TenantID network and make informed choices about your future tenants visit www.tenantID.co.uk today and register for FREE.

 

 

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Five Towns Regeneration – Spotlight on Castleford Property Investment

Five Towns Regeneration

Covering the areas of Castleford, Pontefract, Knottingley, Featherstone and Normanton. The aim of the team is to work in partnership with local communities, businesses, developers and voluntary groups to deliver quality regeneration schemes which will inspire and encourage new investment into the five towns area.

The regeneration of the five towns evolved from a piece of work established by Yorkshire Forwards’ Urban Renaissance Initiative.  A team from the local community including MP’s Councillors, key stakeholders, groups and individuals, and chaired by Councillor Peter Box, the leader of the Council prepared a vision for a renaissance for the 5 Towns area over the next 25 years.

 

Castleford Bridge

The award-winning Castleford footbridge was completed summer 2008 and forms a key part of major ongoing regeneration in the town.The bridge has become a icon – not just within the community but across the country and a string of subsequent prestigious awards is further proof of that.

No descriptionThe £4.8m bridge, funded by Wakefield Council, Yorkshire Forward and English Partnerships, has created a safe, new pedestrian route uniting the north and south of the Castleford’s riverside community connecting Aire Street to Mill Lane.

It was designed by Renato Benedetti of McDowell and Benedetti and forms part of the wider plan to regenerate Castleford and draw in more investment.

The bridge has scooped a range of top awards in 2009 including:

  • No descriptionA Civic Trust Special Award for Partnership, recognising the close involvement of the community in the planing and delivery of the project.
  • A national Waterways Renaissance Award in the community category.
  • A Royal Institution of Chartered Surveyors Pro-Yorkshire Award for Community Benefit 2009.
  • Regeneration and Renewal Community Award.

The bridge was also shortlisted for the prestigious Sterling Prize.

Former C6 Solutions Chemical Plant

Following the closure of C6 Solutions chemical plant in 2005, this large site close to Castleford town centre was purchased by Paloma.  This property development group is looking to create a mixed use development to complement other regeneration projects in Castleford.

The aim as set out in the masterplan is to create a development that is at the heart of Castleford’s regeneration that will be a key exemplar of what a sustainable community should be:

  • A vibrant and green place to live
  • A positive contributor to the perception of Castleford
  • Encourages creativity and self discovery for each and every member of the community

Key concepts that underlie the developed masterplan include:

  • Creating a strong urban structure that ties into the urban townscape
  • Utilising and maximising the river and canal frontage
  • Developing a network of interlinked open spaces that create ecological corridors for wildlife
  • Creatively  looks at development densities
  • Providing facilities for both existing and new communities
  • A strong design concept that calls on the history and character of the local area for its inspiration
  • Developing the street and public realm to ensure that cyclists and pedestrians take precedence over cars
  • The best practice in terms of urban design

Paloma have appointed a team of consultants to examine the site constraints and potential for regeneration.  The team is made up of:

  • The Planning Consultancy – planning advisors
  • Taylor Young – urban design/master planning
  • Encia - remediation specialists
  • JBA Consultancy – flood risk accessors
  • Hepworth Acoustics – acoustic specialists
  • Penny Anderson Associates – ecological consultants
  • Bryan G Hall – transport & highways matters
  • C B Richard Ellis – Investment Analysts

Selective demolition of the industrial infrastructure has already taken place and an outline planning application is currently being considered.

Castleford Bus and Rail Interchange

Wakefield Council is working in partnership with METRO to deliver a new bus rail interchange in Castleford.

Castleford Bus and Rail Interchange artists impressionThis will be sited on land next to the existing railway station in Castleford.

The new interchange is part of a package of transport improvement works within Castleford Town Centre and will help create an improved gateway into Castleford Town Centre.

The modern design will create a contemporary enclosed concourse with a travel centre sales kiosks and waiting area for trains and buses. The concourse will be staffed, with the benefit of monitored CCTV coverage.

Interiour of Castleford Bus and Rail Interchange artists impression

More information about the new interchange, with artists impressions, can be found on the Metro website

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A view from the Wakefield Property Consultant – How the 2011 Budget affects your property business

Business & Taxation

Corporation tax

  • Principle rate – The Government will reduce the principle rate of corporation tax from 28 per cent to 26 per cent from April 2011. The rate will then be reduced by a further 1 per cent in each of the following three years, and as a result will be 23 per cent by 2014.
  • Small profits rate – As announced in the June Budget 2010, from 1 April 2011 the small profits rate of corporation tax will fall from 21 per cent to 20 per cent.

This means that if you run an incorporated property business then you should benefit from these changes.

  • Drop existing proposals for specific regulations which would have cost business over £350 million a year;
  • Introduce a moratorium exempting micro-business and start-ups from new domestic regulation for three years from the 1st April 2011;

More help for all businesses in managing their businesses and reducing the barriers of entry for small and start-ups, good news for all business-owners.
Research and Development (R&D) tax credits

  • Following consultation on the effectiveness of the schemes, the Government will increase the SME scheme rate of relief to 200 per cent from April 2011 and 225 per cent from April 2012, subject to EU State aid approval. It will simplify the schemes, including removing the Pay As You Earn (PAYE)/NICs cap on the amount of payable credit that can be claimed, removing the minimum expenditure rules and allowing relief through the large company scheme for subcontracted activity which forms part of a wider R&D project.

Often an unexploited tax benefit, if you own a business or have clients who own businesses who do or have done the following:

product development; R&D budget/department; Created new product(s); created a new process; changed a process for a customer and/or product variation; manufacturing; printing;

Our preferred accountant, Stephen Fay can provide detailed, specialist advice in this area (click on his name for his contact details

Housing & Property

Planning

  • Government will introduce a number of measures to streamline the planning applications and related consents regimes removing bureaucracy from the system and speeding it up. This will include a 12 month guarantee for the processing of all planning applications, including any appeals;

Although local autonomy will need to be assessed as and when any changes in legislation come into play there may be opportunity for speculative planning applications….Planning Officers have often interpreted new legislation to suit local planning policy, it may therefore take some time for these changes to prove themselves/

  • Government will consult on proposals to make it easier to convert commercial premises to residential.

Due to the large numbers of currently empty commercial properties available, change of use may be easier to come by. Local to us there are plenty of empty shops that would lend themselves to being converted to ground and first floor flats at relatively low expense.

 

 

Stamp Duty Land Tax (SDLT)

  • The Government will introduce changes to the SDLT rules for bulk purchases of residential properties. If the buyer chooses, the rate of SDLT on purchases of multiple residential properties will be determined by the mean value of the dwellings purchased (subject to a minimum rate of 1 per cent), rather than their aggregate value as is currently the case. [The Government suggests that...] This will reduce a barrier to investment in residential property, promoting private rented housing supply.

 

This appears to be good news for buyers and sellers of portfolios.

 

  • The Government will announce the outcome of its review of the stamp duty land tax relief for first time buyers in autumn 2011
  • The Government will introduce legislation, with effect from 24 March 2011, to address three SDLT avoidance risks. The changes cover avoidance techniques that use the sub-sales rules, the Alternative Finance reliefs and the rules for exchanges of land. These techniques have been used to attempt to avoid tax on both residential and non-residential property transactions, including on high value property transactions.

 

Market Stimulation for First-Time Buyers

  • The Government will provide £250 million to support first time buyers to purchase a new-build property. The First Buy programme will assist over 10,000 households with equity investments jointly funded with house-builders;

Could kick-start the market…after all it is first-time buyers who ultimately fuel the housing market…no doubt there will be strict rules for qualification for any such assistance.

 

Local Housing Allowance (LHA)

  • As announced in the June 2010 Budget, LHA rates will be set at the 30th percentile of local market rents and LHA rates will be capped at £250 per week for a one bedroom property, £290 per week for a two bedroom property, £340 per week for a three bedroom property and £400 per week for four bedrooms or more. As announced by DWP in November 2010, these measures will now come into effect from April 2011 for new claimants, and January 2012 for existing claimants.

So, this one is all about timing, and should come as no surprise given previous announcements. John Paul, one of the UK’s leading property experts on LHA recently spoke at the Northern Property Tribe gathering, contact us to be put in touch directly with John.

 

Furnished holiday lettings (FHL)

  • From April 2011, new tax rules for FHL will take effect, so that loss relief may only be offset against income from the same FHL business. Letting and availability thresholds will be increased from April 2012.

 

 

Future Abolishing of Reliefs [Relevant to property...]

  • The Government intends that the following reliefs will be abolished after 2012 in future Finance Bills or other legislative vehicles, with a final date set out after the consultation:
    • Capital allowances – flat conversion allowances;
    • Disadvantaged area relief (Stamp Duty);
    • Transfers to registered social landlords;
    • Disadvantaged area relief (SDLT);

So, watch-out…these could be abolished or formally announced to be abolished as early as the 2012 Budget, so if you rely on any of these reliefs, now is the time to start planning for their abolition. For up-to-the-minute advice, get in touch with Stephen Fay or one of his team

 

Personal & Indirect Taxation

Fuel Duty

  • Government has immediately cut fuel duty by 1 penny per litre. The fuel duty escalator will be replaced with a fair fuel stabiliser that increases tax on North Sea oil production when oil prices are high. The April 2011 inflation-only increase will be delayed to January 2012. The April 2012 increase will be delayed to August 2012. The Government will increase the Supplementary Charge on oil and gas production to 32 per cent from 24 March 2011;

Personal Allowances…

  • From April, the personal allowance for under 65s increases by £1,000 to £7,475. This Budget announces that the personal allowance for under 65s will increase by a further £630 to £8,105 in 2012-13, with an equivalent £630 reduction in the basic rate limit to leave the higher rate threshold unchanged.

As widely reported, there has been a slight reduction in Income Tax liabilities across the board.

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Quick guide to light refurbishment

Following a recent conversation with a client, who has also now become a friend, she asked me if I could list out the tasks that needed to be undertaken for a ‘light refurbishment’ of an investment property. As this is a popular question, I thought I should write this article so that you too can share this with your own network.

This guide is in no way intended to replace the normal due diligence practices that you should undertake prior to purchasing a property and is intended to assist once you have acquired.

 

The most important thing of all…..

 

  1. Walk around the property, inside and out making a list of all the things that NEED to be done then make a list of things that you would LIKE to be done. The concept of ‘like to have’ over ‘need to have’ can be very strong, especially at the start of a new project when enthusiasm is high.
  2. Book your skip (or two, or three) make sure that its accesable and preferably off the road and not causing any sort of obstruction. If you have any doors to replace or flat boards or sumilar place these into the skip first along the sides and one end. These are known as ‘greedy boards’ they allow you to maximise the filling of a waste skip although make sure that you don’t overfill or place restricted waste items inside…it could be very expensive.
  3. Remove all furniture, fixtures and fitting etc. apart from anything that is connected to the gas, water or electrical supply at this stage. You can then (starting from the top downwards) remove all loose debris and bits and pieces etc.
  4. Call in your plumber to drain down the water system (if required) whilst leaving you a basic supply for hygiene reason. If your plumber is Gas Safe certified then he/she can also make safe your gas installation (if connected). Also arrange for your electrician to test the wiring system (again, you will need a temporary supply making safe and maintaining if extensive works are required)
  5. Once the property is stripped bare, before you do anything else give the whole place a clean. It doesn’t have to be sparkling, just make sure that you remove as much dust as possible and any greasy residue in the kitchen for example.
  6. Now is the time to review and revise your initial plan of attack. Do you need to undertaken more plastering for example? Does that bathroom suite really need replacing or will a bit of elbow grease suffice along with new taps? Update your list and maybe, you might just get some more of the ‘like to haves’ on there.
  7. If you are re-wiring or re-located any plumbing at all, make sure that you get the appropriate trades to come to the property to do their ‘first fix’ This will involve installing pipes, cables and the like into walls, under floors/ceilings which, when finished should be completely hidden from view.
  8. The fist works to get out of the way are the dirty ones, the ‘wet trades’ as its a light refurbishment that we are looking at, its unlikely that you will need to be bricklaying although plastering is quite probable, plaster dust gets everywhere! Working through your list make sure all the works get completed one room at a time. NB: If you are planning on skimming over artex or other textured coatings, it may be worth getting a small sample taken and tested as until 1984 asbestos was commonly used as a binding agent in textured coatings.
  9. Next, if required, have your kitchen and bathrooms fitted, keep any protective coatings in place until the last possible time.
  10. Now its time for the joinery work to take place; this may include replacement of repair of windows, doors, skirting boards, architrave, window boards  and any other cupboards, wardrobes and the like.
  11. Once your kitchen & bathroom etc. are in place you can get any tiling done to the walls or floors if your have decided to tile floors as well.
  12. Time to call back your plumber & electrician to connect up the kitchen, bathroom and any fittings that have been replaced or newly installed such as light switches, ceiling or wall fittings etc.
  13. By now we are left with the finishings, your decorator will want to come in and start top down, make sure that you have given the property a thorough clean and that all gaps have been sealed and surfaces properly prepared for wall finishes be they paper, paint or otherwise.
  14. When all your paintwork is dry, you can complete the project by having the floor coverings fitted,if you are having carpets put done its worth keeping hold of some off-cuts to use as temporary walkways while you finish the project off.
  15. After each of the stages above, you should be thoroughly cleaning the property looking to remove all waste and debris, all splashes and spills and most important of all removing dust from everywhere. This way you will minimise the risk of any of your works being compromised due to contamination by dreaded dust. Finally, once everything has been cleaned you need to clean again! This is known as the sparkle clean and should leave the place sparkling bright ready to impress those prospective tenants or buyers.

 

Please feel free to leave a comment if you have enjoyed this article. Alternatively, why not try your own google search and link back to this as the inspirational source.

Rob

Commercial Management & Property Consultant,
Wakefield, West Yorkshire
Please visit my website, read the property blog & leave a comment; www.walkerfox.co.uk
E: rob@walkerfox.co.uk M: 07960 753550 T: @walkerfox S: Walkerfox

 

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Negative Thoughts

Anybody who thinks negative thoughts about someone else has those negative thoughts return to them multiplied. It doesn’t matter how many people are thinking negatively about someone; if that person is in joy those thoughts can never each them, because they are in a different frequency. Instead, all the negative thoughts will multiply and return to the people who were thinking them.


No one else can bring negativity into our lives through our thoughts, unless we allow our frequency to lower to the same negative frequency as theirs.

Thanks to Mark Alexander (@IamALandlord) who posted this here and is also co-founder of The Money Centre & Property118.com

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Dial or Delete

Is your bottom drawer full of business cards that you have collected over the years? contacts that you have never followed up?

Business Cards

Business shouldn’t be a chore, it should be enjoyable and you should be working with, selling to, buying from and generally networking with people who you like as a person and generally get on with. Therefore, try this concept out.

“Dial or Delete”

Systematically work through those business cards (or your mobile phone contacts) and ring each person. If you don’t know who they are or feel that you can’t ring them then the answer is to delete them from your list of contacts. This will allow you to focus on people who you know, like and trust. If you have a ‘hole’ in your contacts list then get in touch with someone in your network and share contacts, its that easy!

If you enjoyed this article and would like to leave a comment, please do so….

Rob

Commercial Management & Property Consultant,
Wakefield, West Yorkshire
Please visit my website, read the property blog & leave a comment; www.walkerfox.co.uk
E: rob@walkerfox.co.uk M: 07960 753550 T: @walkerfox S: Walkerfox

Article inspired by Brad Burton (@bradburton) Managing Director of 4Networking who gave a brief address at the 4Networking event, The Quadrant, Sheffield on Wednesday 23 February 2011

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