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The Stamp Duty Holiday was introduced by the government last year in an attempt to help buyers who might have taken a financial hit because of Covid-19. It was due to end on 31 March 2021 and has now been extended until June 2021.


What is Stamp Duty and what does the Stamp Duty Holiday mean?

In the United Kingdom, stamp duty is a form of tax, payable when you buy property or land over a certain price.

The Stamp Duty Holiday means that until the 30th of June 2021, you will pay no Stamp Duty on properties costing up to £500,000. Before the holiday, this tax was payable on any properties over £125,000.

This Stamp Duty Holiday applies whether you’re a first-time buyer or have previously owned a property. Likewise, it applies to both freehold and leasehold properties, whether you’re buying outright or with a mortgage.


What happens after the 30 of June 2021?

From the 1st of July 2021 – until the 30th of September, you will pay no Stamp duty on properties under the value of £250,000.

From the 1st of October, the stamp duty will return to be payable for properties valued at £125,000 and above.


As a buyer, can I still benefit from the stamp duty holiday?

If you’re in the process of buying a home, there’s more time to complete your transaction and hopefully, benefit from the stamp duty holiday.

If you have not yet started the buying process, it is unlikely you’ll be able to benefit from this extension, unless you are a cash-buyer or are purchasing a home valued under £250,000, for which you’ll have until 30 September 2021 to complete.


Where do I go if I need extra support?

If you would like further help and support on how this announcement might impact you, please contact a member of our team today for expert advice. If the Stamp Duty Holiday extension has made you think about selling your home, Book a Free Valuation today.

Chancellor Rishi Sunak has announced a new ‘Government Backed Mortgage Scheme’ to help buyers purchase a home with as little as 5% deposit.

What is the Mortgage Guarantee Scheme?

The chancellor said there is a significant barrier to people getting on the housing ladder and this scheme will provide a chance for those who can’t afford a big deposit to buy their own home.

Starting in April 2021, it will help first-time buyers, as well as home-movers to secure a mortgage with only a 5% deposit, with the government underwriting 95% loans.


How does the 95% mortgage guarantee work?

Available on all properties up to the value of £600,000, lenders (banks and building societies) will be incentivised to offer 95% mortgages. The government will guarantee to cover part of the mortgage loan if the buyer defaults on payments.

The same affordability checks will apply, and buyers will have to prove they can afford to pay the monthly repayments.


How much deposit will I need?

Until recently, most lenders were offering 85% mortgages (requiring 15% deposit). The new 95% deposit means that first-time buyers only need 5% deposit, which is a third of what they would have previously needed.

As an example, buying a £200,000 home will require a £10,000 deposit. And a £100,000 home will require £5,000 of savings.


How long will it last?

The scheme will begin on the 19th of April 2021 and will be available on new mortgages taken out until 31 December 2022.


What should I do next?

Firstly, identify your budget and the types of houses you would like to buy, calculating a 5% deposit from their value. Once you have a better idea, it’s worth booking an appointment with a mortgage broker to run through your finances and help you find an ideal lender. A good mortgage broker will take the time to present the best options available to you and help you through the process of preparing a mortgage application.


Where can you get help?

If you would like more support in understanding the new mortgage guarantee scheme, why not book an appointment with our dedicated mortgage brokers? We work in partnership with Willerby Mortgage Services, and their team will be able to offer guidance about this scheme and all other general mortgage enquiries.

Contact us if you have any further questions:

01482 506161
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Are you thinking of investing in a buy to let property?

You’ll find that rental yield is the metric you need to know about the property, without a strong rental yield you just won’t make a profit and in return you will struggle to secure any mortgage finance.

In basic terms rental yield is the value that the property generates from annual rent. Yields are expressed as percentages.

  • Gross yield, this is the overall figure you will make, the capital gain.
  • Net yield, gross yield minus any expenses the property has occurred during the past 12 months.

Working out rental yield is actually very easy to do, just follow the rental formula:

Divide your annual rental income by the property value (Price paid not market value) and then multiply the number by 100.

For example if you bought a property for £150,000 and generated annually in rent £9,000 you would need to do the following sum.

£9,000/£150,000 = 0.06 x 100 giving you a yield of 6%

It’s a great tool to use as it can work out the risk factor of the property, you’ll also find a property that offers a good rental yield to be more valuable.

High rental yield locations of 2020

Based on figures from Zoopla back in September 2020 the best three geographical locations for rental yields are Middlesbrough, Glasgow and Sunderland. This will change year on year.

Peregrine Property – Buy to let

At Peregrine Property we work with a number of property investors up and down the country, helping them source the ideal buy to let properties for their own circumstances and portfolio, one of the key things we consider when looking for opportunities is rental yields. 

If you have any questions then why not get in touch with us here, your local property, professionals.

We’ve all seen local newspapers reporting the discovering of residential cannabis farms, it appears to be a growing problem. It’s never great to find out as a landlord your property has been use in such a way, knowing you have now a vacant property and possibly tens of thousands of pounds of damage to repair.

90% of cannabis farms are found to be from residential rental properties.

Why are they perfect to criminals?

Rental properties are ideal as criminals know they will cause damage to the property in order to set up the cannabis farm. Absent landlords is something criminals will thrive on, as the can operate undetected for long periods of time. Location isn’t an issue for criminals often seeking property outside of town where larger properties often come with cheaper rent. A popular property type for criminals is terraced housing, this is because they are naturally warmer, meaning they can often go undetected by police helicopter thermal imaging.

What damage can you expect to find?

Damage is caused in many ways, ceilings, walls and flooring ripped out in order to support extra lighting. Water damage can occur from the many hydroponic equipment needed to grow the cannabis successfully. Electrical wiring is often damaged throughout the property to bypass meters.

This often adds up to well over £10,000.

How can you reduce the risk of this happening?

First choose an estate agent you can trust!

  • Make sure they fully vet the tenant, be fussy who you choose.
  • Make sure regular checks are made on the property.

You can never fully prevent this from happening after all criminals are clever and can quite easily bypass the above if you don’t choose an estate agent that’s on the ball so make sure you take out the right insurance.

Peregrine Property

We’re your local, professional experts with experience and know how to minimise your property from being taken over by criminals.

 

 

You’re buying your dream home, everything is going great. It’s the perfect location, great open views and close to transport links for work. The day has arrived and its time to collect the keys to your home, you move in and all is well, maybe even too well….. But then you are hit with two words, ground rent!

When you looked over the property and you studied the lease there was no mention of your £150 annual ground rent and that it would double every 10 years. You just can’t afford to pay the doubling ground rent, so you try to sell the property.

It very well maybe the case that you can’t sell the property because of the doubling ground rent, you’re now stuck with a property you can’t sell and bills you may no longer be able to pay.

Speaking to the owner of the freehold about buying the freehold maybe the only solution. But some investors may want a considerable amount of money for the freehold, which isn’t an ideal resolution either. This is a problem for around 100,000 people in the UK named the ‘ground rent scandal’.

Peregrine Property

If you are unsure about ground rents then feel free to speak to us, it’s something we come across quite often so we’ll be able to help and offer advice every step of the way.

Ground Rent

You pay ground rent when you own a leasehold property, this is because you don’t own the land the property sits on, and the ‘ground rent scandal’ got its name due to unfair rent prices and leases making it extremely difficult of leaseholders to afford.

The charity Shelter recently stated typical ground rent can be anything up to £400 per year, however the average amount is between, £50-£100 per year.

Yes!

Unfortunately, yes ground rent can affect the saleability of a property. If you are unsure on leasehold property contact the experts at Peregrine Property.

 

 

 

 

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