Property Media

Politicians and Estate Agents – who gets your vote? As election fever sweeps the country, property consultant Alex Goldstein discusses the issue of trust in politics and in business, and explains how you can now trust most estate agents who are shrugging off their wide-boy image.

Politicians and Estate Agents – Who gets your vote?

Full transcript below:

In this month’s property news, we’re talking about the election fever and estate agents, and of course it’s another chance to exercise your democratic right as we approach the 2017 general election. We’ve had Brexit and Trump and now we get to vote on who we want to run our country. It remains to be seen whether the shock of these two surprise results is enough to prize people off their sofas and into the voting booth. But to be honest I don’t think it’s simply complacency and inertia that will stop people voting this time, it will come down to if people trust the eventual Prime Minister in what they say they’re going to do and more importantly what they’re not saying. Contradictory promises, mudslinging and our poor grasp of financial figures all need to be thrown aside for really what I hear from my travels across Yorkshire, people just want to know the truth, put their full trust in the newly appointed leader and just get on with it. Makes me think about really the way that people perceive estate agents. Now regrettably trust isn’t a word readily associated with the sector which today is often unjustified, many agents really do, do a great job in what remains a difficult market. However, some of them still shoot themselves in the foot by using clichéd phrases such as requires some updating, basically it’s a money pit, viewing recommended, keen to get at least one viewing and my absolute personal favourite, deceptively spacious, looks small because it is small. It leaves buyers feeling that they’re being duped. The whole industry has really come a very long way since the 1970s when dealing with agents was more like the Wild West and very few restrictions on how they operated. Nowadays there are rules and regulations to protect you the consumer. The sectors really sharpened up its act to shrug off this wide boy image that has dogged it for years. Although I’m not an estate agent myself I do liaise with them on a daily basis and I’m pleased to report that the vast majority are hardworking, decent and honest. Now obviously with 15 years in property I’ve developed long-term relationships with those I trust most. This kind of relationship takes time, energy and constant clear communication to develop so that each side is able to trust each other and do their job properly. Now, as I’m sure you know the process of buying and selling houses doesn’t always run smoothly and it’s at these times that the relationship is really tested. I’m very fortunate in that I know which agent I can rely on in those situations which is why I can recommend them to my clients. I always work in my client’s best interests and they trust me implicitly in this. The moment I lose this key factor I might as well pack up and go live in a deceptively spacious property, in need of updating with an easy to maintain garden, close to local transport links, otherwise known as a hole in the ground. Some may argue that politicians should do the same.

Are you trying to get a mortgage, but not sure if banks will lend to you? Are you a first-time buyer struggling to find the deposit?

Property expert Alex Goldstein finds out how to get a mortgage in this tough lending climate from financial advisor and mortgage specialist Mauro Arcidiacono of Cathedral Financial Planning. He shares some excellent advice on how to put yourself in the best position possible for banks to lend to you, and explains what the new mortgage rules mean for borrowers. He also shares his tips to help first-time buyers find that all-important deposit.

How To Get A Mortgage

Full transcript below:

Alex: Fantastic to have Mauro from Cathedral Finance here with me and we really are going to delve into a lot of detail about dare I say the banks at the moment and lending and in particular the first-time buyers out there. Mauro it may sound a bit of an obvious question but why on earth are the banks so reluctant to lend I think to everyone and anyone out there at the moment or is that a bit of a unfair statement?

Mauro: I believe it is a bit of an unfair statement actually to the banks. The banks in the past have been accused of lending irresponsibly to those with little or no deposit and less than stellar credit profiles. That’s got the banks into trouble, it’s also got borrowers into trouble. Since new mortgage rules have come out around 2014 banks have been asked to lend responsibly by the regulator. These new rules-imposed banks to lend no more than 4.4 times gross income.

Alex: Ok, that’s useful to know but why would they just put, it seems, and it comes across to a general member of the public like myself that there are just so many hoops to jump through and obstacles. How and I know we’ll come to first-time buyers but if you are just looking for a mortgage what do you need to do and set up possibly in advance trying to sort of get around those issues?

Mauro: Absolutely, that’s a very good question for first-time buyers. It’s very daunting and I’m sure that you and I have the greatest of respect and sympathy for first-time buyers trying to save this mammoth deposit that they need to buy there first home. You know lenders want to lend to first-time buyers, they just want to make sure that the first-time buyers are going to be a good egg to lend to. In that respect first-time buyers can position themselves in terms of making sure that their credit profile is a good one, has strength, by doing that I’m finding that when I do speak to first-time buyers that they’re fresh out of university or fresh out of college and so they may feel that they have the perfect credit score but in reality they haven’t proved that they can borrow money sensibly.

Alex: Is that about getting your first couple of credit cards but not necessarily using them, sort of thing?

Mauro: Absolutely so I tend to recommend to first-time buyers to take out a credit card and just to put their shopping or put their petrol on there and just to pay it off each month. That shows lenders that you are able to manage credit responsibly.

Alex: And when it comes to first-time buyers, I know you briefly touched on it, is it all about deposit? I mean back in the day it used to be if you’ve got a 25% deposit then you know what you’re going to get the very best rates out there but again house prices especially in and around our areas we know its expensive, do you need to save up that level of deposit, how can one get around it, especially if you’re a first-time buyer?

Mauro: There are a number of options available to first-time buyers and in terms of you don’t need to have the substantial deposits that lenders would like to see. Of course, lenders will reward you if you have a substantial deposit and substantial deposit you’re talking about say 25% of the purchase price, but lenders will look at those with a minimum of 5%. There aren’t many lenders out there that will lend at 95%, but now in terms of open credit what banks are willing to lend you’ll find that probably there are about a dozen lenders who will lend at these high 95%.

Alex: So, is there a sting in the tail because obviously if they’re doing 95% loan to value say to a first-time buyer, is that first-time buyer paying a huge amount more on their interest payments?

Mauro: Yes, you know a bank, a lender will reward borrowers with more deposit with a better rate. The rates do tend to change every 5%, so the minimum deposit that you need to put down is 5%, rates around the 95% borrowing tend to be around the 4% mark. If borrowers were to put down a further 10% then you’ll see an instant lowering of rates so the more you’ve got to put down the better the rate you’re going to get.

Alex: Ok, and I mean everyone sort of talks about the bank of Mum and Dad and trying to sort of get funding that way whether it’s for your deposit, I mean the Stamp Duty rule changes have slightly gone in peoples favours, there is a bit more of a discount when it comes to stamp duty but if your parents are fortunate enough and they can lend you something then obviously that’s a option. Again, first-time buyers, how can you get around that? Yes, if you’ve got that from bank of mum and Dad, but if you do not have that option, are there any other paths you can go down?

Mauro: There are a few other options for first-time buyers to consider. There is what is called a help-to-buy scheme, where you go into partnership with the Government. With respect to help-to-buy schemes, these are designed to help those struggling to save a deposit for their first home or move up the property ladder. The help-to-buy schemes are restricted to new build homes only, the buyer is required to raise 5% of the property value as a deposit. The Government will stump up a further 20% through a local agency and with the combined borrowing, 5% from your own savings and 20% from the Government savings, this will allow you access to much cheaper preferential rates. In terms of other schemes available to first-time buyers if they’ve not got the 5%, housing associations allow you to part-buy and part-rent your home, so you’re able to buy a share of your chosen property, typically between 25% and 75% on which you’ll have to take a shared ownership mortgage. What are the benefits of a shared ownership scheme? Shared ownership scheme allows you to gain a foothold on the property ladder in an affordable way.

Alex: Mauro, some great insight there. You’re actually, most people won’t know this, you’re actually a very qualified chap because you’re able to offer all sorts of bits and pieces, not just about first-time buyers and mortgages, just briefly touch on what you can offer.

Mauro: I’m a qualified independent financial adviser. I work for myself and I’m a sole practitioner. I’m qualified to give advice in investments and pensions and protection. I’m able to offer tailored financial solutions in a simple way.

Alex: All sounds great. If anyone wanted to talk through first-time buyer mortgages, pensions or investments, what’s the best wat to reach you?

Mauro: The best way to reach me is either via my website which is cathederalfp.co.uk on my mobile 07999196984 and I’d be happy to help, happy to give a free initial consultation and until I’m able to understand how I can help you as an individual there is no charge.

Alex: Fantastic. Well Mauro thank you very much indeed for giving us great insight into the world of lending, really appreciate it.

Is another possible scandal brewing in the property world, asks property expert Alex Goldstein. Developers like Taylor Wimpey, Redrow and Bellway are accused of misselling new-build homes. Buyers have bought these homes as leaseholds, with the promise of being able to buy the freehold after two years. However, unbeknownst to some of them, freeholds have been sold on to private investors before the two years are up. Is this canny business, or have buyers been misled? Listen to what Alex says on this possible new home builder scandal and make up your own mind.

New House Builder Scandal

Full transcript below:

Alex: Is there another possible scandal brewing in the property world? We are still feeling the effects of the banking and mortgage crisis from 2008, when banks were accused of mis-selling mortgages to people who couldn’t afford them and what do you know the bottom fell out of the property market. As a result, the pendulum has actually swung the other way now with banks being ultra-cautious about mortgage lending, making you jump through hoops just to prove that you can actually afford the mortgage you’re applying for. Now as it happens another scandal is now brewing in the property sector. Some big developers like Taylor Wimpey, Redrow and Bellway are all being accused of mis-selling new-build homes. Buyers have bought these homes as leaseholds with the promise of being able to buy the freehold after two years. Usually at the end of a lease, ownership of the property reverts back to the freeholder, however most people apply to extend the lease many years before it runs out. Until recently most houses were sold as freehold properties, however some of these developers have started selling the new build properties as leasehold then selling the freehold on to investors. Buyers are complaining that they were misled about the opportunity to buy the freehold after two years as unbeknown to them the free hold was sold on to private investors before the two years were up. The homeowners claim that the investors who now own their freeholds are only interested in making profits as they’ve now been subjected to ground rent hikes, additional charges, clauses and restrictions and as they don’t own the freehold their homes are then much more difficult to sell on and they feel trapped by the situation. Now let’s be absolutely clear, on the face of it the developers haven’t actually done anything illegal by selling the freehold on, however the homeowners claimed that their behaviour has been unethical, especially, and here is the key, as many of the buyers used conveyancing solicitors recommended by the developers, who they say failed to draw their attention to the potential for the freehold to be sold on early. This story is bound to get bigger so watch this space. The lesson here is if you’re thinking of buying any property is to make sure you find a very good, independent conveyancing solicitor who will highlight all the pros and cons so that you can make an informed decision and not fall prey to clauses that might come back to bite you later.

Property expert Alex Goldstein has some indispensable tips from an insurance broker. He talks to specialist Ian Darnbrook of A1 Insurers and gains an insight into the world of home insurance. We find out exactly what an insurance broker is, and the expensive pitfalls some people experience when they do it themselves online. We hear about the perils of fronting, and also hear of some quirky requests for insurance, such as a military tank and a letter from Lord Nelson.

Tips from an Insurance Broker

Full transcript below:

Alex: It’s a pleasure to welcome in Ian Darnbrook in the studio today and just to really try to get to grips with dare I say, the insurance industry. Now Ian just talk us through exactly what does an insurance broker do. You hear the term getting thrown around, but I don’t know whether anyone really understands it?

Ian: Right, an insurance broker, we go out there to find the right policy to suit your needs. We deal with over 100 different insurers, so we go to each insurer to find the best policy for you.

Alex: And how do you actually get paid? Am I paying you up front as a search type service? How does it work?

Ian: The premium we quote to you includes a commission we get from the insurance company so the price we quote you is what you pay.

Alex: Sounds an obvious question but for what sort of things do you actually insure at the end of the day?

Ian: We insure most things your house, your cars, collections of cars, businesses, letting properties.

Alex: I dare say it’s the age-old question, why don’t I go on one of those fancy websites money meerkat as they say and go and get a quote, what are the pros and cons of going down that route?

Ian: You can do that, they can be cheaper, you’ve got to watch out for policy conditions and assumptions that they make when you’re doing quotes. If you get it wrong that’s your problem. We check the policy cover to make sure you’re getting the right cover, if you’re doing it yourself you may miss something, that could be higher excesses, we’ve had occasions where they’ve excluded flood cover and we’ve had people who have insured vehicles and have had no theft cover because they haven’t had the right security on the vehicle.

Alex: I guess in those situations the insurer completely backs out and says that’s not my problem and you personally have to settle it?

Ian: Yes.

Alex: And from a insurance quotation point of view, with your experience what are the pitfalls a lot of people can inadvertently fall into and then I suppose live to regret it?

Ian: Probably the main one on household insurance is not insuring the property for rebuild cost. A lot of people will go for the sale value which is incorrect, it should be based on the cost to rebuild, on your contents, what it would cost to replace your contents.

Alex: And just talk everyone through this, rebuild value, what is it and how can you specifically define it because obviously you don’t get paying more than the rebuild or obviously less.

Ian: Normally if you have a survey done by a mortgage company they will give you a rebuild cost, or you can go to a surveyors and they will give you a rebuild cost. There are a lot of policies out there that are bedroom rated and they give you a certain sum insured. For example, AXA Extra they give you up to a million-pound sum insured so if you’ve got a three-bedroomed semi in Harrogate obviously a million pound is more than enough to rebuild that house.

Alex: Are you not then inadvertently overpaying if they’ve got a policy that values you up to a million, but your property is only worth 500 thousand?

Ian: No, I mean you’re not overpaying because its rated on the number of bedrooms, so you could have the same policy for a five-bedroomed house and because they’ve got five bedrooms they will pay a higher premium.

Alex: I’ve got you, and how does it work I suppose conversely on the car insurance side of things I suppose the age old thing especially when your children are growing up, they get in the car and driving licence, and people, don’t know, I suppose this old school mentality try to slightly fudge the issue and get the kids in under the parents car insurance but actually its their sons car and he’s actually driving it. How do you actually work through that sort of you ought to potentially?

Ian: You have to be very careful, insurance companies call that fronting, basically buying the son or daughter a car insuring in the parent’s name, knowing the son or daughter is the main user. Most insurance that we deal with now, they’ll pick that up and know there’s a problem. Whilst young drivers are learning to drive premiums are not too bad, its when they’ve passed the test and they go to get the first car, you could be looking at premiums in excess of £3,000.

Alex: Gosh, and is there any way around that whereby if you put extra people on the policy, is there anything sensible you can do?

Ian: Sometimes if you put the parents on it reduces the cost a little bit. There is a lot of people out there doing telematics which is little black box in the car which does make a difference. Unfortunately, at the moment we have no insurers that can offer that it’s usually only available direct.

Alex: Got it, and what’s the most unusual items that you’ve insured? You’ve been round the block quite a lot, with all due respect and I bet there’s been some interesting items floated your way?

Ian: Yeah, we did insure a tank which was on a vintage policy. We’ve also got a client who’s got a collection of naval memorabilia which includes a letter signed by Lord Nelson.

Alex: And how do you actually value property, obviously go to a specialist?

Ian: Yeah, he got a specialist valuation company for that one. I think it was in the region of £25,000.

Alex: So, if anyone has got a tank on their driveway on indeed a letter from Lord Nelson or indeed a need for straight forward house and contents insurance what’s the best way to reach you guys?

Ian: Best way is to give us a call on 01937 581417 or you can email us which is, best email address is probably info@a1insurance.co.uk

Alex: Fantastic Ian, a great insight and some really useful information. Thank so much for coming on.

Ian: Thank you.

In this special one-year anniversary edition of the Alex Goldstein Property show (part 13), Alex discusses the next potential scandal in the property world concerning new build homes and leaseholds. He also talks wills, trusts and probate with legal expert Andrew Parascando of Powell Eddison Solicitors, and home insurance with Ian Darnbrook of A1 Insurance Services. In the property hospital this month is a question about staging your home for sale, and Alex shares his top tips on kerbside appeal.

The Alex Goldstein Property Show (Part 13)

Full transcript below:

Alex: Welcome again to the Alex Goldstein Property Show (part 13), this very special one-year anniversary edition. We strive to solve your property queries and to put you in the fast lane when it comes to the UK property market. Amazing tips plus industry expert insight, that is what we’re all about. Now if you need that property hit, connect with the Alex Goldstein social media account to get the very best property advice whenever you need it. Now in this months show we are getting the inside track from Andrew Parascondolo from Powell Eddison Solicitors on wills, trusts and probate and demystifying all of that. We also get to grips with insurance industry getting experienced insight from Ian Darnbrook from A1 insurance. Loads to fit in so we’re straight on with it.

Is there another possible scandal brewing in the property world? We are still feeling the effects of the banking and mortgage crisis from 2008, when banks were accused of mis-selling mortgages to people who couldn’t afford them and what do you know the bottom fell out of the property market. As a result, the pendulum has actually swung the other way now with banks being ultra-cautious about mortgage lending, making you jump through hoops just to prove that you can actually afford the mortgage you’re applying for. Now as it happens another scandal is now brewing in the property sector. Some big developers like Taylor Wimpey, Red Row and Bellway are all being accused of mis-selling new-build homes. Buyers have bought these homes as leaseholds with the promise of being able to buy the freehold after two years. Usually at the end of a lease, ownership of the property reverts back to the freeholder, however most people apply to extend the lease many years before it runs out. Until recently most houses were sold as freehold properties, however some of these developers have started selling the new build properties as leasehold then selling the freehold on to investors. Buyers are complaining that they were misled about the opportunity to buy the freehold after two years as unbeknown to them the free hold was sold on to private investors before the two years were up. The homeowners claim that the investors who now own their freeholds are only interested in making profits as they’ve now been subjected to ground rent hikes, additional charges, clauses and restrictions and as they don’t own the freehold their homes are then much more difficult to sell on and they feel trapped by the situation. Now let’s be absolutely clear, on the face of it the developers haven’t actually done anything illegal by selling the freehold on, however the homeowners claimed that their behaviour has been unethical, especially, and here is the key, as many of the buyers used conveyancing solicitors recommended by the developers, who they say failed to draw their attention to the potential for the freehold to be sold on early. This story is bound to get bigger so watch this space. The lesson here is if you’re thinking of buying any property is to make sure you find a very good, independent conveyancing solicitor who will highlight all the pros and cons so that you can make an informed decision and not fall prey to clauses that might come back to bite you later.

It’s great to have Andrew Parascondolo from Powell Eddison Solicitors in Harrogate in the studio with me. Andrew thanks so much for coming in, today we’re just sort of talking through wills, trusts and probate and I think it’s often a misunderstood area of the law and again just to guide people through. The big hot topic at the moment as I see it is why should people make a will? It’s very much out there and being talked about but I don’t think people have got a grasp as to why and what it entails.

Andrew: First of all, thank you Alex for inviting me to your show, very kind of you. Yes, I think it is a very hot topic. The statistics say that around 50% of the population don’t have a will. They still see it as a almost a myth that people think that wills are only supposed to be dealt with by the rich. Certainly not, we do regularly advise clients to make a will, they don’t have to cost lots of money, they can cost a few hundred pounds depending on the type of will. Essentially a will, what it does is it details what happens with your estate after you die. So, things like your money, your personal possessions, properties, what happens to them after you die. Essentially if you don’t leave a will, it’s the law and the laws of intestacy to decide how an estate is dealt with, who deals with it and how its distributed.

Alex: So, its effectively your estate could effectively just get past to the Government if you don’t have a will?

Andrew: Yeah, I mean essentially, it’s not as drastic as that. A lot of people think it is but under the rules of intestacy it goes down the bloodline. So, it would be things like siblings, sons, daughters, partners etc. Mainly wives not partners. The will allows you to decide how your estate is distributed, it’s not the laws of intestacy so as I say because they are literally a few hundred pounds to put together it’s really important for people to make wills and have them regularly updated. We generally say around five to six years to review your wills.

Alex: Yeah, I agree, and the other major buzzword out there is a LPA or a lasting power of attorney and again it’s a phrase thrown around and very much involved in the will sector. Just talk everyone through that, what it means, what it actually entails and why you should actually look at it fairly strongly nowadays?

Andrew: Yeah, I mean in my view I always look at it like this, a will is how to deal with your estate after you die and that deals with things like incorporating step children, you may want to exclude family members, you may want to appoint guardians for young children etc. deal with remarriage, divorce as well as estate planning. Lasting powers of attorney are essentially the way of administering your estate whilst you are alive so that if you are unable to make decisions about your property, your finances, your bills etc. not just because you’ve lost capacity, it may be that you’ve lost mobility and then the lasting power of attorney is a really good way of doing that. A lot of carers essentially have the buzzword of lasting powers of attorney, go and make one its really really important. Now the first thing that I say to a client when making a lasting power of attorney is why do you need it? That’s really why people come and get advice about lasting powers of attorney.

Alex: So, if for example I suddenly get knocked on the head and I’m in a coma or something and I didn’t have a LPA, or something set up in my will how would it then work? How could someone take charge of my financial affairs? Is there a process someone needs to go through? How does it work?

Andrew: Let’s look at it slightly differently. A will deals with your state after death and that only becomes valid when you die. In terms of a lasting power of attorney, that is whilst you are alive, that comes to an end upon your death and that is when the will takes over. So, if for example you were god forbid taken ill or run over by a car and had mobility problems and maybe capacity problems, if your spouse or a family member didn’t have a lasting power of attorney and needed access to your funds they would have problems doing that. It just depends, people have different estates, have different combinations of how they hold their money. They may be joint accounts, they may be single accounts and it’s just really talking to the client and not everyone will need a lasting power of attorney.

Alex: This is a fantastic point Andrew, the phrase LPA, lasting power of attorney, gets thrown around sort of fairly freely actually it’s not necessarily right for all and sundry. You need to speak and talk it through in detail because actually it may not be the right options. How does it work? You hear quite a lot in the news about wills being contested and other family members, I know you slightly joked and said well you know one member of the family has been left out of the will and it all gets into the news, obviously these tend to be very high-profile cases. With your experience and knowledge of the sector, do you find that this is a growing area and what’s the reason for it, has there been a change in the law, or why is that? Or is it just the media?

Andrew: Contested probate has increased in the last 24 months by 2000% and I do think that a lot of it is to with, there is a case that’s just been in the media which is Ilotts Mix and essentially that was a case where by a lady was estranged by her daughter for a period of 20 odd years, she then made a conscious decision to distribute her estate to charities, her daughter contested that and was awarded a amount of money by the judge, she was then not happy with that so appealed it, the appeal judge effectively increased the amount of money that she got and then the charities then appealed to the supreme court, now the supreme court has now ruled the appeal was not correct and has reduced the amount back to the original amount. So, in my view that case really is a case that sits on its own facts. It did attract a lot of attention, it did attract a lot of empathists for contested probates and contested wills, however in my view that is a victory for testimony freedom. At the end of the day people should be allowed to leave their estate how they feel fit as long as they have been properly advised. That’s the problem, we need to make sure that your listeners are properly informed that they need to just sit down with someone, it need not cost them lots of money to sit down and find out what their objectives and someone will weigh up the pros and cons.

Alex: A great insight there Andrew and obviously bolted on the back of this is probate, again a term widely thrown around. Just loosely, just talk everyone around what it is, why it exists and how to actually navigate through it all?

Andrew: I mean essentially probate is the administration of an estate after someone passes away. It is the formal application of the grant of probate if you leave a will. If you don’t leave a will it’s something that is called letters of administration and essentially it is a series of documents that allows you to proceed with the estate. The grant of probate once obtained allows bank account to be closed and the money to be collected, properties to be sold. The one thing that I do want listeners to be aware of, which has not been publicised very much is that the probate fees are just about to increase. I think that will have an impact on how people deal with their estate. There will be estates whereby people try to reduce the risk of this increased tariff by making decisions such as trusts, they may decide to reduce their estate by the use of trusts. It will also put executives in difficult positions simply because they will need to fund this new tariff which in some cases will be really difficult.

Alex: I’ve got to say some amazing insight and some great sort of tips for everyone. If anyone did want to get in touch with yourself or your team at Powell’s to talk through wills or probate trust aspect to talk through their personal circumstances. What is the best way to get in touch?

Andrew: Well thank you for that, it’s my pleasure. If people want to come down and speak with us we offer a free consultation period, it doesn’t cost anything, it’s free of charge, where people sit down with us and we then talk through their objectives. Another thing I would say is we’re no longer on 14 Albert Street, we’ve moved, we’re now at Raglan House on Raglan Street and we are having our official office opening on the 29 March at 5 o’clock, so we invite all of our clients to come and see us, those that can to maybe sit with us and maybe have a drink, a glass of wine or some champagne or some orange juice and to meet the team and the rest of the new team that’s come on board. The telephone number is as it always was so its Harrogate 01423 564551 and the website address or email address is info@powell-eddison.co.uk and you can visit our website at www.powell-eddison.co.uk

Alex: Andrew, can’t thank you enough, fantastic information there and thanks for coming on.

Andrew: Thank you for inviting me.

Alex: The property hospital is all about me answering your property concerns and demystifying the process. This week I’m answering a question from Lisa who’s got this to say.

Lisa: Hi Alex, I’m putting my house on the market soon and I want to make it look as attractive as possible to buyers. I’ve read that doing things such as having a fresh pot of coffee on the go, baking bread in the oven and the table all set for dinner help, but are they a bit cliched?

Alex: Lisa, thank you and yes, you’re absolutely right all those ideas are a bit dated nowadays and today it’s more about clean lines and less clutter the better. So clear away anything from the room that shouldn’t be there making sure all the surfaces are tidy and dust free. Dirty homes and unpleasant smells will deter your buyers. Clear any used pots from the kitchen and ensure any pet areas are thoroughly cleaned. Empty all your bins of course, have freshly laundered towels in a sparkling bathroom. I do actually know some clients have even bought brand new fluffy towels which they keep solely for house viewings. Also think about your furniture, what are you going to be taking with you. If you’re not going to be taking it, get rid of it and create more space in your home. Then think about lighting, warm ambient lighting will set the room of to its best so ensure key areas are well lit with lamps, downlighters or pendant lighting. The key is to put yourself in the position of the buyer and think about what would put you off and what you would like to see when you look around someone else’s home. I hope this is some help and best of luck with the house sale.

Voiceover: The property hot seat.
Name?

Ian: Ian Darnbrook

Voiceover: Business?

Ian: A1 Insurance Services Ltd

Voiceover: Years experience?

Ian: 25 years in the business.

Alex: It’s a pleasure to welcome in Ian Darnbrook in the studio today and just to really try to get to grips with dare I say, the insurance industry. Now Ian just talk us through exactly what does an insurance broker do. You hear the term getting thrown around, but I don’t know whether anyone really understands it?

Ian: Right, an insurance broker, we go out there to find the right policy to suit your needs. We deal with over 100 different insurers, so we go to each insurer to find the best policy for you.

Alex: And how do you actually get paid? Am I paying you up front as a search type service? How does it work?

Ian: The premium we quote to you includes a commission we get from the insurance company so the price we quote you is what you pay.

Alex: Sounds an obvious question but for what sort of things do you actually insure at the end of the day?

Ian: We insure most things your house, your cars, collections of cars, businesses, letting properties.

Alex: I dare say it’s the age-old question, why don’t I go on one of those fancy websites money meerkat as they say and go and get a quote, what are the pros and cons of going down that route?

Ian: You can do that, they can be cheaper, you’ve got to watch out for policy conditions and assumptions that they make when you’re doing quotes. If you get it wrong that’s your problem. We check the policy cover to make sure you’re getting the right cover, if you’re doing it yourself you may miss something, that could be higher excesses, we’ve had occasions where they’ve excluded flood cover and we’ve had people who have insured vehicles and have had no theft cover because they haven’t had the right security on the vehicle.

Alex: I guess in those situations the insurer completely backs out and says that’s not my problem and you personally have to settle it?

Ian: Yes.

Alex: And from a insurance quotation point of view, with your experience what are the pitfalls a lot of people can inadvertently fall into and then I suppose live to regret it?

Ian: Probably the main one on household insurance is not insuring the property for rebuild cost. A lot of people will go for the sale value which is incorrect, it should be based on the cost to rebuild, on your contents, what it would cost to replace your contents.

Alex: And just talk everyone through this, rebuild value, what is it and how can you specifically define it because obviously you don’t get paying more than the rebuild or obviously less.

Ian: Normally if you have a survey done by a mortgage company they will give you a rebuild cost, or you can go to a surveyors and they will give you a rebuild cost. There are a lot of policies out there that are bedroom rated and they give you a certain sum insured. For example, AXA Extra they give you up to a million-pound sum insured so if you’ve got a three-bedroomed semi in Harrogate obviously a million pound is more than enough to rebuild that house.

Alex: Are you not then inadvertently overpaying of they’ve got a policy that values you up to a million, but your property is only worth 500 thousand?

Ian: No, I mean you’re not overpaying because its rated on the number of bedrooms, so you could have the same policy for a five-bedroomed house and because they’ve got five bedrooms they will pay a higher premium.

Alex: I’ve got you, and how does it work I suppose conversely on the car insurance side of things I suppose the age old thing especially when your children are growing up, they get in the car and driving licence, and people, don’t know, I suppose this old school mentality try to slightly fudge the issue and get the kids in under the parents car insurance but actually it’s their sons car and he’s actually driving it. How do you actually work through that sort of you ought to potentially?

Ian: You have to be very careful, insurance companies call that fronting basically buying the son or daughter a car insuring in the parent’s name, knowing the son or daughter is the main user. Most insurance that we deal with now, they’ll pick that up and know there’s a problem. Whilst young drivers are learning to drive premiums are not too bad, it’s when they’ve passed the test and they go to get the first car, you could be looking at premiums in excess of £3,000.

Alex: Gosh, and is there any way around that whereby if you put extra people on the policy, is there anything sensible you can do?

Ian: Sometimes if you put the parents on it reduces the cost a little bit. There is a lot of people out there doing telematics which is little black box in the car which does make a difference. Unfortunately, at the moment we have no insurers that can offer that it’s usually only available direct.

Alex: Got it, and what’s the most unusual items that you’ve insured? You’ve been round the block quite a lot, with all due respect and I bet there’s been some interesting items floated your way?

Ian: Yeah, we did insure a tank which was on a vintage policy. We’ve also got a client who’s got a collection of naval memorabilia which includes a letter signed by Lord Nelson.

Alex: And how do you actually value property, obviously go to a specialist?

Ian: Yeah, he got a specialist valuation company for that one. I think it was in the region of £25,000.

Alex: So, if anyone has got a tank on their driveway on indeed a letter from Lord Nelson or indeed a need for straight forward house and contents insurance what’s the best way to reach you guys?

Ian: Best way is to give us a call on 01937 581417 or you can email us which is, best email address is probably info@a1insurance.co.uk

Alex: Fantastic Ian, a great insight and some really useful information. Thanks so much for coming on.

Ian: Thank you.

Alex: Don’t ever underestimate the impact of curb side appeal if you want to sell your home. One of the first things potential buyers will see when looking for a new home is that photograph of the front of your house, often in a list of properties that they are scanning on a website or a property app. You need to make your house look as attractive as possible at first glance and it could make the difference between them scrolling right past or stopping for a closer look. Also, many buyers do a drive buy of houses they are interested in before they go and book a viewing so it’s really important that the front of your house is presented at it’s best. So, first thing get rid of the cars, bins and anything else out on the driveway when the photographer comes to shoot the images so that the front of your house looks completely uncluttered. Clean all the windows and window sills at the front and paint all wooden doors with a fresh coat. Make sure the garden is weeded and tidied, hedges are pruned, and weeds pulled up. If you’ve got a doorbell make sure it works and if not either fix it or remove it. These are small things that if done can make a difference between people stopping or simply passing by.

That’s the Alex Goldstein Property Show and yet again some superb top tips and features. If you need expert information, videos and up to the minute property news then head over to the website alexgoldstein.co.uk Alternatively if you require personalised thoughts or 15-year experienced advice on buying or selling your property please get in touch directly. The next episode is out on the 1 May so make sure you tune in to that. Until next time.

First Impressions Count when Selling Your Home

Full transcript below:

Don’t ever underestimate the impact of kerbside appeal if you want to sell your home. One of the first things potential buyers will see when looking for a new home is that photograph of the front of your house, often in a list of properties that they are scanning on a website or a property app. You need to make your house look as attractive as possible at first glance and it could make the difference between them scrolling right past or stopping for a closer look. Also, many buyers do a drive buy of houses they are interested in before they go and book a viewing so it’s really important that the front of your house is presented at its best. So, first thing get rid of the cars, bins and anything else out on the driveway when the photographer comes to shoot the images so that the front of your house looks completely uncluttered. Clean all the windows and window sills at the front and paint all wooden doors with a fresh coat. Make sure the garden is weeded and tidied, hedges are pruned, and weeds pulled up. If you’ve got a doorbell make sure it works and if not either fix it or remove it. These are small things that if done can make a difference between people stopping or simply passing by.

That’s the Alex Goldstein Property Show and yet again some superb top tips and features. If you need expert information, videos and up-to-the-minute property news then head over to the website alexgoldstein.co.uk. Alternatively, if you require personalised thoughts or 15-year experienced advice on buying or selling your property please get in touch directly. The next episode is out on the 1 May so make sure you tune in to that. Until next time.

In this month’s Alex Goldstein Property Show (part 12), Alex speaks to Matthew Jones, an expert on the law governing leaseholds and enfranchisement (buying a property’s freehold), and to James Tiffany from Skipton builders Roger Tiffany Limited, who shares some amazing tips on finding a good builder. Alex also reveals key advice to gain the planning permission you want for your property.

The Alex Goldstein Property Show (Part 12)

Alex: Welcome again to the Alex Goldstein Property Show (Part 12), the number-one property show on Stray FM. We strive to solve your property queries and to put you in the fast lane when it comes to the UK property market. Amazing tips plus industry expert insight, that is what we’re all about. If you need that property hit, then connect with the Alex Goldstein social media accounts to get the best property advice whenever you need it.

Now, in this month’s show, we’re getting the inside track from Matthew Jones, a solicitor on leasehold reform, James Tiffany, an expert builder, plus tips about planning permission and a substance as toxic as asbestos. Lots to fit in so we’re straight on with it.

Male: Property news, with Alex Goldstein.

Woman: Stray FM.

Alex: This month, we’re talking about the power of word of mouth. Now, I happen to be going through my 2016 figures last weekend, and to my amazement, I found that 92% of my business came from word of mouth referrals. Now, I’m not blowing my own trumpet. Well, maybe I am, but that figure even took me by surprise, and then it got me thinking, “Why was it so high?” I was discussing it with Sarah, a previous client and marketing expert who said, “Well, look. There are three things that people value most: trust, communication, and above all, knowledge that you will do what you say you’re going to do. You have all of those nailed.”

Well, of course, I blushed at the compliment while secretly high-fiving myself under the table. But look, joking aside, she is spot on with those three things. I believe they should be sacrosanct, no matter what business you are in. It absolutely demonstrates that you care and have the needs of your client at the forefront of everything you do. I can bet you think of a dozen times when you’ve been let down in all those areas, the builders who go AWOL halfway through a project, the colleague who never responds to an email, customer services who say they’ll call you back, and then never do.

And, what do you do when you’re looking for a top-notch restaurant or need to find a good treatment for a job? You ask the people you know for help. As a result, you’re more likely to use that trade or service that has been recommended to you by a trusted source. Low risk, no hassle. Makes sense.

The power of these three things were demonstrated very clearly in a recent case of a client of mine who was trying to sell her home. Before I became involved, she was promised top service, marketing package by her previous agent. Through roof-tinted spectacles, she envisaged a world in which her house was being fought over by a queue of adoring buyers.

The first six weeks, they went really well, lots of viewings. The agent did a solid job of keeping in touch. But, when it hadn’t sold after eight weeks, it was as though the agent had vanished into thin air. So suddenly, she was the one chasing with the phone calls and the emails, and it made her feel like a nuisance.

Thankfully, a friend of hers recommended me and we quickly got to grips with the situation, upgrading photography, overhauling the whole brochure, marketing strategy, online entries, viewing arrangements etc. We re-launched the property with renewed vigor. The agent, delighted to have some additional ideas from a property consultant who has 15 years of experience plus an increase in client contact.

As a result, in five weeks of the re-launch, we’ve secured the buyer. Clients obviously delighted, agent back on the right terms with refreshed enthusiasm, and myself keeping a proactive check on progress. However, underlying problem lies where everything had gone amiss previously. The client told her friend, who mentioned it to another on Facebook, who then shared a post about it. Like a virus, the bad experience had been disseminated across hundreds of people within minutes. Whereas the end result was good, the damage had already been done.

As I said, one should never lose sight of the power of word of mouth, whether in business yourself, or client looking for a good product or service. A good reputation can take years to earn, but only a moment to lose.

Great to be joined in the studio by Matthew Jones from LCF Law in Bradford. Matthew, thanks very much for coming in. The department you are part of is the Lease Extension and Enfranchisement team. Can you actually just talk everyone through because again, these are these buzz words that get thrown around fairly readily, but no one actually understands it. Talk us through.

Matthew: Yeah, sure, Alex. I work at LCF Law, as you say, in the Lease Extension Enfranchisement Department. What that effectively is, lease extensions are when tenants want to extend their lease, which they can do under legislation. Enfranchisement is when tenants want to collectively buy the freehold. That’s it in a nutshell. I mean, there is more detail, too, there which I’m sure will come on to.

Alex: And what, again, is part of that? You’ve got the Leasehold Reform Act, what does that encompass, and what does it actually mean?

Matthew: The Act basically allows a leaseholder to extend their lease by an additional 90 years, providing certain criteria on that. The main one is that they’ve owned the property for two years or more. Now, they have to pay a premium for this, and what they get is a new lease on the same terms, and no ground rent. So that’s the lease extension element.

Now, the enfranchisement side of it, that, as I said before, allows a group of tenants in a building to join together and buy the freehold, so the actual building in which those flats are located, and that’s the rights granted under Act.

Alex: Yeah. And, talk everyone…because we slightly skipped over it, but talk everyone through freehold property versus leasehold property, and if you’ve got a leasehold property then, as you said, the class is more of a tenant rather than an owner. Just talk everyone through the actual basic differences on that because again, I think it’s commonly misunderstood.

Matthew: Yes, it is. It’s something that, you know, we get asked quite regularly. We’ll take leaseholder. Basically, what that means is that you have your property on a lease for a set term. So, for instance, in flats, that could be 90 years, 150 years, even 999 years, but there’s a set start date and an end date. For a freehold, you own that property indefinitely, until you part with it either through sale, or you lose it by some other means, for instance, the bank claimed it back, or something like that.

Alex: And, you mentioned there sort of a long lease, 999 years. Some people say, “Well, that’s as good as freehold.” Is that still the case nowadays?

Matthew: I mean, no one’s gonna live that long to see it through to [inaudible 00:06:56].

Alex: You never know [inaudible 00:06:58].

Matthew: It’s always better to have the freehold. It really is, because at the end of the day, even though you may have a 999 year lease, with a lease comes certain restrictions, so you have to comply with certain requirements. So say, if you owned a flat, that lease that you have will say that…I don’t know, for instance, if you’ve got a balcony, you can’t put washing out on that balcony, or you can’t play music after a certain time, things like that.

Alex: And I guess this also comes into pets as well.

Matthew: Yeah, absolutely. So, you know, if you were a big fan of, you know, hoarding [SP] iguanas or something like that, then there might be a restriction preventing that, dogs, cats, anything can be put into that list.

Alex: Got you. So basically, if you own the freehold, you’re in charge effectively of your own destiny…

Matthew: Absolutely.

Alex: …rather than being a leaseholder. So talk us through the structure. If I’m a tenant and a lease holder, I own the apartment under a lease, you then got a freeholder above us, how does that actually work, that actual structure?

Matthew: So what you will have, you will have the freeholder who owns the building, the large building where all the flats are located. He will then grant individual leases to the tenants. Sometimes you can have a scenario where there’s a management company, so you’ll have a lease from the freeholder to the management company, and then the management company will then grant further leases to the individual tenants. So, it can get quite complicated.

Alex: That’s gonna be complicated quite quickly, doesn’t it? And I mean, everyone talks about the number of years left on your lease. Why is that important? What numbers should people look out for, and why?

Matthew: Right. Well, anything around 90 years or less, I’d say that you really need to start thinking about extending that lease.

Alex: Is that extending the lease by the 90-year element?

Matthew: Yes, you can absolutely…

Alex: Can you ever do more than the 90 years?

Matthew: You can, in certain instances. What you can do…under the Act, you are allowed an extension for 90 years.

Alex: As the minimum?

Matthew: That’s it. That’s what you’re allowed under the Act that we referred to earlier. You can, in certain instances. If you’ve got a very good relationship with your freeholder or your landlord, you can look to extend it for longer. If, for instance, as we mentioned earlier with the enfranchisement where collectively the tenants on the freehold, you can look to extend to 999 years because you own it together.

Alex: And how does it work when people you hear that they want to buy the property? They’re a leaseholder at the moment, they then…to gearing up, and they actually want to buy out the freeholder. How does that sort of things work?

Matthew: Yes. Well, how that works…I mean, the first thing, and I can’t stress this enough, is that they need to instruct a specialist solicitor to do it because it’s a very complicated area of law. It really is. Quite often you see, you know, people who’ve instructed the local solicitor, the family solicitor, and it goes wrong. The first step obviously, once they’ve done that, is they need to get a valuation, and again, there are specialist surveyors and valuers out there who can do that for them.

Alex: Just specifically because the fact it’s as a leasehold property, not as of a building survey necessarily or anything like that.

Matthew: It’s because of the Act, and there are special calculations that need to be worked out. I’m not okay [SP] with that simply because it serves specialists, and as solicitors, we can’t advise on those kind of things. It’s something that the surveyor would do. Once that’s done, they obviously need to see who’s interested in collectively buying that freehold. Once they’ve done that, usually you’ll set up a company to acquire that freehold. Then formal notice is served on the landlords, the freeholder, and provided they accept the right, then effectively it’s a conveyance, so a sale or purchase…

Alex: Transaction.

Matthew: Yeah, transaction to acquire that freehold.

Alex: And does the freeholder always have to sell? Are there any circumstances whereby the leaseholders collectively or singularly approach the freeholder, and say, “We want to buy this?” And where do the rights lie? Where does the law actually reside, or it’s up to negotiations?

Matthew: That’s why it’s very important, as I said, to instruct a specialist because there are certain criteria involved. That’s why the investigation stage is so important. So, when those tenants come to myself, come to our team, it’s very important for us to do those investigations thoroughly. And that’s looking at the Act, looking at the requirements, seeing the individual tenants, their leases, things like that, and then saying, “Right. Yes, we can go ahead and do this. You qualify under the Act. We’ll get notice served to you.”

Alex: And why is it beneficial? I know when we talked about extending the lease, and you said, “Well, look at the critical number Alex. It’s around 80 to 90 years left or remaining on the lease.” Why don’t I just sort of leave it ’till there are 5 to 10 years on the lease, and then I extend it for another 90? Why wouldn’t you play it like that?

Matthew: Simply because if it gets below the magic year which is effectively 80 years, once it gets below that then it’s gonna be even more expensive for you to extend that lease.

Alex: Why?

Matthew: Something called marriage value. Now, it’s very complicated. I’m not gonna bore you with the details because, you know, it will fry the noodles of the vast majority of people probably who are listening. But, once it gets below that magic line, then it becomes incredibly expensive to do so. Now, why you would want to extend your lease, clients come to us for a number of reasons. Firstly, they’re looking to sell perhaps their flat. Mortgage lenders, banks, they will want to see a long-term…

Alex: It’s low risk.

Matthew: Exactly. Another reason perhaps if people are looking to put their affairs in order, they’re coming up to retirement age or older, they want to make sure their beneficiaries have got no worries, basically, when they look to sell a flat as part of their estate.

Another reason, it protects the interest that you’ve got and the money that you’ve invested in that flat. You know, you want to make sure that you’ve got something that’s gonna just increase in value. You don’t want something that’s gonna depreciate.

Alex: Yeah, an asset. You want to ensure that your property remains an asset…

Matthew: Exactly.

Alex: …and that’s very important.

In terms of cost to be mindful of, obviously you’ve actually got, I suppose, the pure finances of actually sort of extending the lease or indeed looking to buy the freehold. You’ve obviously got your costs as well. Is there anything else one needs to be mindful of when going down this route at all?

Matthew: Yes. Obviously, as you say, there are your own solicitor’s costs. There will be your own surveyor’s costs for them carrying out the valuation. You will also have to bear in mind the premium that you’re paying, so you have to factor that into your budgeting. There’s also the landlord’s surveyors cost that you’ll have to pay.

Alex: Really?

Matthew: Yes, and also the landlord solicitors cost. But, they can only claim so much.

Alex: Okay, and I’ll envisage a lot of zeros, all of a sudden, but you’ve put my mind at rest.

Matthew: Yeah, yeah, absolutely. And yeah, there’ll also be other things such as land registry fees, and if you’ve got a mortgage, your mortgage lender might have a charge for transferring that across.

Alex: So it’s actually quite an expensive thing to go through, probably?

Matthew: Can be, but it’s certainly worth it.

Alex: But, of course, there’s no stamp duty on that, is there, unless you’re buying the freehold?

Matthew: No. Basically, the stamp duty, you don’t have to worry about that if you’re extending the lease. So, as I said, the only things that you have to worry about are those I outlined earlier.

Alex: And what happens if you’re buying the freehold?

Matthew: If you’re buying the freehold again, no, you don’t need to worry about the SDLT, but you do have to worry about those costs and things that I mentioned earlier.

Alex: Okay, now it’s all in balance. So, Matthew, we’ve talked through if I’m a tenant and I’ve got the apartment under lease. What happens if it’s the other way round? How can you guys help, and it’s actually on the landlords at the end of the day?

Matthew: Yeah. I mean, we do have a number of clients who are landlords themselves, and what we can do is when tenants come to them with formal notice exercising their right to either extend their lease or collectively purchase the freehold, we can act for them, and see it from the other side and act from the landlord’s perspective. So, doing the investigations to see whether those tenants qualify. If they do, then we can work with the landlord effectively to make sure that they can get the best premium and things like that. Interestingly, we have won a number of awards acting for landlords and tenants alike.

Alex: Have you? Okay.

Matthew: Yeah, we’ve actually won the Young Professional Enfranchisement Lawyer of the Year. We were also nominated for the Regional Professional Enfranchisement Lawyer of the Year. Surprisingly, you know, there are awards for these things.

Alex: They are. Must have been a fan to that one.

Matthew: Not as glamorous perhaps as the Brits or the Oscars, but nevertheless, you know…

Alex: A close [inaudible 00:15:51].

Matthew: Absolutely.

Alex: Matthew, if anyone wants to sort of touch base with you when it comes to your lease extensions, the enfranchisement, or indeed the Leasehold Reform Act, how are people gonna best reach you?

Matthew: Well, the best thing is just pick up the phone. Our Bradford office is 0 1274 848800, so you can give them a call, and you can also email me at mjones@lcf.co.uk, and visit our website and go through that way as well.

Alex: Matthew, thanks so much. Some great tips and advice there.

Female: “The Property Hospital.” Stray FM.

Alex: “The Property Hospital” is all about me answering your property concerns and demystifying the process. This week, I’m taking a question from Adam who’s got this to say.

Adam: Alex, I want to put a good sized extension on the back of my ham [SP]. So I thought I’d just ring up the counsel and debate it with them. Is this the right thing to do?

Alex: Adam, interesting question here. Now look, the best advice I can give when it comes to planning permission is, “Never speak with a counsel until you’ve spoken with a professional.” Remember, as soon as you speak or indeed email them, everything’s on record. If you inadvertently rub them up the wrong way, you can have a serious struggle on your hands. So firstly, take your time. Speak with a reputable architect. Usually, they’re gonna be RIBA or equivalent qualification. Planning laws have changed very quickly in the last few years. Therefore, sometimes you can actually extend your property under what’s called permitted development. The architect is gonna advise you on this. And look, if it’s a more complicated case, say for example, you’re a listed building, or you’re in a conservation area, then you may need the expertise of a planning consultant. These are people who know the laws around the planning, whereas an architect effectively draws you the nice pretty pictures. Speak with the professionals, and if they give you the green light to speak with the counsel then go for it, albeit under their guidance. If you’re unsure about which architect or planning consultant to use, feel free to drop me a line.

Male: “The Property Hot Seat.” Stray FM.

Female: Stray FM.

Male: Name.

James: James Tiffany.

Male: Business.

James: Roger Tiffany Limited.

Male: Time in property.

James: I have been in this industry for 25 years.

Alex: We are honored indeed to have James Tiffany here in the studio.

Now, you’ve been in the business a long time, haven’t you?

James: Yes, I did Construction Management at university, and I worked as a national contractor for 12 years before moving back to the family business about 10 years ago.

Alex: There you go. There you go. And, it’s quite interesting. I mean, you look out in this sort of the general sort of property market places. Strikes me there are a lot of builders out there and they’ve all got their vans and they’ve all got the logos. But, if you’re just Joe Public like me, what do you actually need to look for in a good quality builder?

James: I think you need to go for somebody who’s been in business for a number of years. Longevity is a quality obviously, because it’s important you get a builder who is good at business as well as good at building, because if somebody goes [inaudible 00:18:49] or can’t finish your project, then even is the quality is good, that gives you a big problem. Somebody who’s been around, somebody who can provide references, somebody who’s recommended by an architect or somebody else in the industry is obviously a good reference, and somebody who would be happy to sign up to a building contract because that means many things. It means they’re happy to work and get paid monthly. They’re not asking for money up front. They’re happy to have a retention deducted from the work, Alex, that gives you the comfort that they’ll come back at the end to put things right.

Alex: Yeah, absolutely. People often say, “Well, if my builder can start straight away, then he’s obviously no good because his diary is completely empty.” Is that also another point to go by, or am I just clutching at straws there?

James: I think that can be a little bit unfair.

Alex: Or is it your free space does crop up?

James: Yes, it does, and especially in winter when things are a bit quieter. But, I think if you have looked at the other points, you’ve taken references and you’ve spoken to an architect, then maybe you just stop looking.

Alex: I mean, one of the, I suppose, jargon phrases is this sort of procurement process. Just talk everyone through. What does that actually mean, and what does that actually entail, again, if I’m a homeowner, and I’m looking to get you onboard?

James: Well, the traditional procurement route, Alex, is that if a homeowner is looking to have some work done, they will tend to approach the architect in the first instance because the architect will guide them through the planning process. He will take their brief. He will provide them with some options, develop their brief so that they’re happy with it. Today, there’s more regulations to get through the planning process. It’s more complicated, especially if you’re in a conservation area or a national park. There’s more energy efficiency regulations. You have to have a SAP calculation done before you do any work. The architect, once he’s got the drawings through the planning process until building regulations stage, can then invite tenders from building contractors on behalf of the client, and that really is the way to do it. Employing the architect, then to monitor the work throughout to check the quality is definitely the way to go.

Alex: And so the tendering process, as you mentioned, what does that entail? What does that take?

James: So, a builder will take the architects drawings, schedule of work, specification, and he will price to that. We’ll normally give him sort of three to four weeks to put a price in with others. Everybody gets the same amount of time and the same information to keep things fair. And then, if it’s been set out properly, then the client and his team can analyze that price when it comes in to make sure that everything’s been covered, or if things haven’t been covered, then at least everybody…

Alex: Surely…on that sort of basis, it just comes down to price, surely. Is it down to being the cheapest on those tender processes…?

James: Well, theoretically it could come down to price, but sometimes on a tender the client asks for a methodology. You know, “Please explain how you’re gonna build this, how you’re gonna do it without affecting the neighbors, how you’re gonna do it without knocking down something that you’re driving past every day?” And also a program, “Is it gonna take three months, four months, or six months?” So there’s other things that can matter as well, but as long as the builders know what the outset [SP], then that’s deemed a fair tendering process.

Alex: Got you. And, how does a homeowner know that they’re gonna get the best price? How can you sort of reduce that risk at the end of the day?

James: Well, getting several quotes obviously helps them because…

Alex: And that’s through the architect, again?

James: It will tend to be, yes. Yeah, that would be the best way to do it. Having a good design with a lot of details helps because as a builder, then I’m clear what I’m pricing. It’s when we get ambiguities of things we’ve not met before that the price starts going up because there’s a little bit of risk, and that gives us a worry. So the more things that are drawn, the better. If the client schedules things out that they want, you know, the specification of the kitchen, the pottery, the floor coverings…and the more detail we get, the better price we can give, Alex.

Alex: You’ll be more accurate.

James: Exactly, yes.

Alex: I’ve got you. And, there’s a bit of a buzz at the moment, and there has been for the last few years about this sort of energy efficiency. And certainly, when you’re looking to extend or certainly, if you’re building sort of a brand new property from sort of foundations up, this technology is always of advancing and evolving. What are the key things that a lot of clients coming to you for at the moment? What do people keep an eye on?

James: Well, people want things increasingly energy-efficient, Alex, as you’ve said, and that’s driven by the building regulations as well as by the client. We get a lot of renewable technologies these days because there are grants available, and clients want things like air source heat pumps which take the energy from outside and use that for heating. It’s free heating. Solar panels on the roof provide free electricity that goes back into the grid, and a client can actually receive an income back from the power company. Underfloor heating is obviously very common.

Alex: At the moment, everyone is a property developer. Everyone’s an expert. You’ve got all these wonderful programs out there, and they make it look so easy. I personally don’t feel it’s really the case, but when you say, “Come to extend a property, or indeed build a new one,” that’s pretty much the trend at the moment, what are the issues that, with your experience, people sort of come across and need to be, I suppose aware of, because it’s not a case of got one of those property hammer programs you buy for 50 grand and you spend 10,000, and all of a sudden, it’s worth 150,000. I don’t think it’s as straight-forward as I think.

James: It all seems very easy, doesn’t it, on the program?

Alex: It does seem easy. It’s easy in the sentence strength [SP].

James: The things to look out for are to get some advice on price up front. It’s amazing the amount of clients we go to who’ve not been given any advice on how much a job will cost, so we often price it and they can’t afford it. So, speak to a builder early on, perhaps before you’ve even employed an architect. It will certainly give you an approximate estimate of the cost to within 15%, 20% accuracy, and that will help in your decision making. So, we definitely do that because that avoids wasted cost and time.

Things like speaking to your neighbors, people forget to do, especially if you live in close proximity to them. Again, we turn up on site, it’s the first time the neighbor knew there was gonna be a building project, and we get all sorts of issues.

Things like trees and hedges can be problems, especially if you’re digging near them. Again, people overlook them. Conifer hedges, leylandii, big trees can all give problems to your new extension that’s encroaching on them.

So things like that, disruptions to your own house. If you’re knocking through the kitchen into the dining room, you’re gonna get a lot of dust. You might not have considered that it means changing the heating system of your hallway and your entrance way, and they’re gonna need decorating. Builder can obviously damage your driveway because he needs a compound, he needs to bring in diggers in and he needs to take down your hedges and your fences at the back of the house, and people perhaps forget that they then need to put them back. The drive might need repaving or re-tarmacking, and these are all costs that people forget about.

Alex: Indeed, but those are things you sort of say in advance just so you’re aware, to get access, we need to do.

James: Exactly. A good builder would flag that up. But again, if that’s in the tender documentation, then everybody is pricing that.

Alex: Absolutely. So it’s not as easy as I thought. You look on TV, and it’s not as easy as making all that sort of money from one of those auction programs, is it?

James: No, it isn’t. Definitely not.

Alex: The other issue that people often come up against is damp, damp appearing in the property or indeed sort of rising damp where it comes up the brickwork. How can you sort of get around that? What are the options for the…?

James: In a new property, obviously you shouldn’t have any damp, Alex, and that’s alarming. You should always look for the damp-proof course in the brickwork. In an old property, it’s more complicated because houses weren’t built to current standards, obviously.

Things to do: What you can do is to check the roof to make sure you don’t have any broken slides, that your gutters aren’t blocked. Cleaning out your gutters every year after the autumn is something to do. But, old houses can just be damp. The solid walls, modern living means we put in a lot moisture into houses with washing machines, and it being increasingly airtight. Plastic windows don’t help really. So you must ventilate your own homes. Keep the heating on. Keep trying to get the moisture out of the buildings. Sometimes an old property can’t avoid some levels of damp. But, maybe that you don’t have a damp course, so you can inject a damp course. There’s easier ways to do it. It can be disruptive because you got to knock the plaster off the walls, or you might have external ground levels that are higher than inside, so that might mean that you have to tank, and tanking isn’t easy when it’s done afterwards, but it is possible. There are experts out there that can advice on that.

Alex: I’m just picking up on that point. What is the difference between say, dumb-proof course and tanking?

James: Well, if the outside levels are higher than inside, then a damp-proof course won’t work because the damp can still strike from outside. So you must tank that wall above the height of the external ground levels to stop the water coming in. Alternatively, you let the water come on in, and you have an internal drain and an internal line in a wall, and then you just drain the water away. So, often in a basement, you just gotta accept that that water will get in, and you put a pump in, and you get rid of the water.

Alex: Really heard it all there. That is fantastic stuff, and I’m sure…surely in your career, you’ve had some amusing stories that you may have come across, botched DIY jobs possibly that you’ve had to help out. Anything springs to mind there?

James: We’ve all got to be careful what we say, Alex, really, but, yeah, we’ve come across those. We’ve been caught in the middle of crossfire of arguments between husband and wife which can always be a little bit embarrassing.

Alex: Yeah, it can be, definitely.

James: I’ve heard of builders that might have knocked expensive vases off furniture before now, Alex, and have to glue them back together.

Alex: Obviously, nothing to do with yourself.

James: And yes, we do…with the onset of Google, it does amuse us when we have a client who can’t answer a question on a Friday afternoon, but by Monday morning he’s an expert on the subject, and puts us on the back foot. So, all things that are difficult at the time, but quite amusing afterwards, Alex.

Alex: Absolutely, absolutely. I mean, we’ve had some great sort of inside information there, James. If someone wants to sort of talk through anything with you, whether it’s energy efficiency, or extending, or damp-proofing, what’s the best way for people to get in touch?

James: Yeah, happy to help, obviously. Phone us or visit our website, rogertiffany.co.uk. Our phone number is 0 1756 793734.

Alex: Fantastic, James. Thank you so much indeed for coming on the show. Really appreciate it.

James: Thank you, Alex.

Male: “Alex Goldstein’s Top 10.”

Alex: One of the biggest ongoing issues in a property is condensation. There’s cooking, showers, clothes drying, and even breathing. What more is that we now have double and indeed triple glazing which can keep our homes like a hermetically-sealed box? What this does is increase the amount of humidity in the air, and that is why sometimes you see black mold appear in the corner of rooms. You may not be aware, but this type of mold is now classed in the same toxicity group as asbestos. So what can you do to avoid it?

Always, as I see it, air your home by opening windows regularly, and in bathrooms, always install a strong air extraction fan. If you live in an older or larger property and see condensation appear on the inside of windows, you may wish to consider a home ventilation system. These are relatively modest in cost both to install and run. Work quietly in the attic and effectively condition the air in your home. If you have cold outside walls, then you can insulate these either with specialist boarding or indeed special types of wallpaper. Make sure you keep on top of condensation as black mold is really not a good thing.

That’s the Alex Goldstein Property Show (Part 12) and some incredible top tips and features. If you need expert information, videos, and up-to-the-minute property news, then head over to my website, alexgoldstein.co.uk. Alternatively, if you require personalised advice when it comes to buying or selling your home, please get in touch directly.

The next episode is out on the 3rd of April, so make sure you tune in for that. Until next time…

This month we are of course discussing the EU Brexit referendum and that the UK is out.

Whilst there seems to be panic setting in, let’s look at the facts as they stand at the time of recording rather than getting embroiled in the current media frenzy. Both the EU and the UK want to get the withdrawal right, that’s a fact. This is in both of our interests as we both equally stand to lose and gain in equal measure.

Only the UK can invoke article 50 and not the EU so in other words, any withdrawal is done on our timeframe and when we are ready. The Bank of England and Chancellor George Osbourne have already said they will do whatever it takes to keep the market stable and again that’s in everyone’s best interest.

There’s been £250 billion worth of funds set aside should we ever need to use it. On top of that we’ve got low stable inflation and fairly solid employment rates. Research out the other morning from Coutts bank shows that most political events do not have a lasting impact on investment outlook, and they, Coutts, do not see Brexit as an exception. Coutts also went on to say that one of the more reliable warning signs for a big downturn in the market is the risk of a US recession, which is seen as very unlikely in the next 12-18 months.

The result is of course a surprise to many, especially the city who were betting the other way. We all knew the result would be close. The financial markets are currently going through an adjustment, to find their new levels, and there was always going to be some initial short-term turbulence. We must remember that the bottom line is that there will be a lengthy renegotiation process and it’s not a case of just flicking a switch one day and getting a new set of circumstances the next.

This is going to be a very gradual process over a minimum of 2 years. So therefore, on the property side, my advice is hold your nerve. Yes, there is financial turbulence occurring currently, but this was always going to be the case. There’s already speculation that Bank of England reducing interest rates to quarter of a percent and if they do this mortgage rates could be cheaper. If so, it will mean greater property market activity as money is cheap to borrow. The property market relies on supply and demand and people will always need to buy and sell property.

Current local property supply levels remain weak and therefore there is an argument for property prices locally to hold firm. The underlying strengths of the UK economy remain in place and property is always being proven to be the best medium to long-term investment you can make.

So, in conclusion on the Brexit referendum, take your time, hold your nerve and above all don’t panic.

Building Surveyor Jon Charters-Reed gives a direct and highly charged interview with property consultant Alex Goldstein. Jon walks through what could be next banking scandal to hit the UK and his prediction is that it will be larger than PPI. In addition, Jon’s years of experience prove to be invaluable when giving insight into the world of surveying, what to look out for and how to manage.

Interview with Building Surveyor Jon Charters-Reed

Full transcript below:

Alex: We’ve got Jon Charters-Reed here in the studio, a very interesting chap indeed. Now Jon, just tell everyone, you’ve got a few accreditations to your name, which is a bit more unusual than most surveyors out there I think it’s fair to be said.

Jon: Yeah definitely, I began my career as a classically trained York Minster Joiner, went on to become a chartered surveyor, a chartered builder and I’m also a chartered building engineer.

Alex: You’ve got a lot going on there, a lot going on and I think what’s quite interesting is because you’ve got the building background I think there was quite a famous story involved in that as well.

Jon: There was, we’ve had a few incidents where properties have suffered from structural movement, no one didn’t know what to do or how to fix them, so we took our own digger, underpinned it and guaranteed it ourselves.

Alex: That’s what you call an in-house one-stop surveyor shop. I don’t know many surveyors that will go and survey a property and then go and fix it and guarantee it themselves, that’s pretty impressive stuff. I just want to talk through the different types of survey, I think there are a lot of home buyers and indeed home sellers who get themselves into a bit of a spin as to what level they require and what the actual differences are. Just talk everyone through that.

Jon: Ok well before we do let’s just look at the reason why you have a survey and at the moment it’s all the wrong way round because there’s a basic valuation which tells you what the property’s worth and in essence that’s a bank valuation usually, and you’re lucky if that’s one sheet of paper, you don’t normally get to see it as the property purchaser. Now it’s slightly incorrect as how do you know what the property’s worth if you don’t know it’s condition? For that reason, Alex, that’s why you should have a survey first before you get the valuation. I looked around a 1649 property a few weeks ago and it had horrendous defects and it does have an effect on value, needless to say the costs of repairs is not a straight forward deduction off the market appraisal.

Alex: No indeed and what are the survey types?

Jon: What we have is your basic survey, is the industry standard is the RICS home buyers report. It’s quite a restrictive report because it has traffic lights in it and we often do 4/5 surveys a week where someone’s had the RICS home buyers report, its not clear, its not easy to understand and we’ve been asked to do a subsequent report on it just to highlight effectively what the deficiencies are in there.

Alex: Is it often where banks offer that because sometimes they do this overall package where they will give you a survey and I guess very often because it’s a lower grade one it’s cheaper for them?

Jon: Exactly, so the banks are being rather naughty because one of the things I’ve said in my book, How to Be a Smarter House Buyer, is that the banks are not treating customers fairly, they are carrying out restrictive practices because if you go to the bank for a mortgage and they offer you a mortgage, they must give you the opportunity to get your own independent surveyor.

Alex: What is the next type or survey that you need to get?

Jon: Most individual private practices will offer their own version of that which is usually full of common sense and not standard phrases. So, you get your level 2 scheme which is one above evaluation, then you get your building survey which is suitable for older houses. What you must remember is that Yorkshire has got a plethora of terraced houses, most of them getting on for 120 years old and they too are likely candidates for a building survey.

Alex: So that is sort of the step 2, the next grade up, I think some surveyors call it an infrastructure survey.

Jon: Sometimes its got a number of names, its sometimes called a building survey, or a mains structure survey and you need to be extremely careful because there are a number of companies out there offering a building survey, charging a fortune and it’s four pages long.

Alex: How long are yours then?

Jon: 40-50 pages long and 40-70,000 words because the thing is that everyone needs to understand is, that your home that you are buying is ostensibly the family silver and so why would you skim on going for the cheapest survey on something that is literally worth thousands and it’s your future?

Alex: No, I quite agree. Again, I think there’s confusion over formal valuations and sometimes I think estate agents offer these. Under what circumstance would someone say I want a formal valuation? What are they and in what situation?

Jon: So formal valuations usually begin with a probate valuation or a valuation for tax purposes or a matrimonial valuation. The banks will ask for a valuation because its part of the banks and building society’s acts and regulations that the bank need a valuation to know the property’s value and so the banks are quite canny because they’ll charge the customers up to £600/700 for a valuation which literally is one to two pieces of paper and they’ll keep 60-70% of the fee but they won’t tell you that.

Alex: No indeed, but can you get involved if I needed a formal valuation?

Jon: There’s no reason based on what we’ve previously said about the council of mortgage lenders why a house buyer cannot insist on their own survey. If the bank turns around says you need to use our panel of approved surveyors, its restrictive practice and it’s tantamount to being illegal.

Alex: It is and if you, you’ve gone very specific and ruled out a lot of other options, at the end of the day the clients or the home owner or the house purchaser is actually losing out at the end of the day.

Jon: You can choose your own solicitor, you can choose your own accountant and you can choose your own mortgage adviser. We need to be quite clear that the banks have got to stop behaving like this. I have spent 5 years researching this plus my 25 years in the business in order to create the book that I’ve written.

Alex: So, this is the next horizon, the next sort of scandal in the bank world potentially, certainly sounds as though its heading that way.

Jon: Definitely, we’ve already spoke to a couple of law firms that are interested in setting up departments to actually tackle what is effectively almost an in-house type of mortgage fraud by the banks really.

Alex: So, its setting up a monopoly on it all?

Jon: Definitely and it needs to stop and hence the birth of the smarter house buyer because people have got a lot more savvy as to what’s going on in the world.

Alex: You mentioned your book, I know that’s just recently come out. Just talk where is it, what’s it about?

Jon: It’s called How to be A Smarter House Buyer. Its available in Waterstones and on Amazon, paperback and Kindle. In essence it highlights the deficiencies in the housing market which effectively after the recession became broken we’re still using similar methods for selling and buying houses and advising people how to get mortgages that we we’re doing 10-15 years ago. It gives people tips on how to choose a good estate agent and try to do a bit of mystery shopping.

Alex: That was certainly in an article I’ve just written actually and do mystery shop them, go in behind the scenes and see how well you’re greeted as perspective purchaser if you’re looking to sell a house, I certainly agree wholeheartedly with that. Again, another phrase that’s thrown up is RICS Red Book Evaluation, just to be clear this is formal valuation and it’s what you talk through effectively but what is it? How do you actually go about it?

Jon: Ok so the RICS Red Book its in essence a large book, its red and as thick as the London Yellow Pages and it’s got a whole load of practice statements and guidelines that we have to comply with in order to provide an evaluation. Now interestingly enough when the banks are instructing surveyors in this closed shop environment to carry out an evaluation a lot of companies are not complying to this evaluation. So, I’ll give you another example, a lot of companies will go and do a bank valuation on a house and they won’t look in the loft and there is some practice statements now that say surveyors don’t need to look in the loft on valuations. Now to me this is wrong because the loft, which is probably a third of the property and you know its often the Pandora’s box which can reveal an awful lot of stuff and again lets take the average house price, you know £289,000, you’re buying a house, you’re getting a valuation, you’re paying a load of money for it, you’re not even getting to see it, you don’t know anything you’re getting, they’ve not even looked at two thirds of the house, how can that be right?

Alex: I quite agree, you must have in your years of experience quite a few embarrassing stories for us surely?

Jon: One of my favourite stories is going into a property as younger surveyor, and going into the garden of the property and shall we say the lady wasn’t petite, and it was a summers day and the lady was in her birthday suit and all I could do was offer her my clipboard, but it didn’t serve a purpose in covering a awful lot up really.

Alex: You really need a bigger clipboard Jon. How can everyone get in touch with you? As I’ve said you’ve got a lot of accreditations to your name, where are you based and what are your contact details?

Jon: You can get in touch with our Leeds or Harrogate office and if they type in Charters Reed Surveyors into Google we shall pop up on the screen. You can also contact us on our Harrogate number which is 01423 259601.

Alex: Jon, thank you so much, a fascinating insight as always, really appreciate you coming on the show.

Jon: Thanks very much indeed, take care.

The Alex Goldstein Property Show (Part 11) is out now! This month I speak to one of the most knowledgeable property surveyors in the business, Jon Charters-Reid, who believes yet another major scandal is brewing in the mortgage industry. I also discover all there is to know about fires and fireplaces. No chimney? Apparently no problem! And will a wood burning stove save money on your fuel bill? And lastly I offer my four best tips to ensure your home positively shines when it comes to buyer viewings.

The Alex Goldstein Property Show (Part 11)

Full transcript below:

Alex: Welcome again to the Alex Goldstein Property Show, the number one rated property show on Stray FM. We aim to solve all your property queries and to demystify the property sector. We have some amazing tips plus some industry expert information. If you need that property fix, then connect with the Alex Goldstein social media accounts to get the best property advice whenever you need it. Now, in this months show we will be getting the inside track from Jon Charters-Reed, a Chartered Surveyor with some very distinct differences and who tipped us off about the next major scandal in the banking sector, which believe it or not could be bigger than PPI. We’re also joined by Chris Worsley, from Easy Fire Place who gives us expert insight into this sector. So much to fit in so we’re straight on with it.

This month we’re talking about the secret to instructing a great estate agent. Now when it comes to this our most important asset, our home, I regularly have conversations with home owners who are getting themselves in an absolute spin and we will say look it is any wonder. From their perspective estate agents all look the same, are going to say the same and they claim to do the same for their beloved home. Many believe that there are just three main criteria to choose from when they’re looking to instruct an agent, however all of these have got major flaws. Let me explain. So firstly, guide price now rightly or wrongly this subject alone seems to consistently come on top of everyone’s lists. Lenders understandably feel flattered when an estate agent exudes confidence in selling their home and especially when a guide price is quoted towards the upper end of the range. Now listen, agents of course know this and may quote enthusiastic figures just to get your instruction, At the end of the day anyone can quote a high guide price, so you have to look beyond this to get the right agent. The second criteria is fees, now estate agents are sales people, if you agree on a commission structure that’s sensible for both sides, the agents going to remain proactive right up until the point of exchange. However, many vendors feel that if they nail that agent right down on commission then they’ve made a saving, in actual fact they’ve instantly dis-incentivised that agent and it’s unlikely now they’re going to push for a top figure so these also need to be put to one side. The third benchmark lies in how professional the agent was in their pitch. They’re on the most part well dressed, they’ve got bounds of enthusiasm and obviously they’ve got confidence in selling your home. Of course, they love your property, which salesperson sat in your home is going to tell you otherwise so again, this point needs to be treated with caution. So, if it’s not about high guide prices, low fees and a professional pitch what do you really need to look at when picking the right agent? The answer of course lies with their front of house team. These are the people sat in the estate agent office who meet and greet potential buyers walking into the branch, deal with phone enquiries, website requests, know the properties, sell them effectively and have a intrinsic knowledge of the buyer database. The valuer sat in your living room, he’s going to handle a element of those but it’s their team back at the office who’s going to engage with all the buyers and the sellers whilst they’re out. And most importantly, they are going to push your property from being under offer to exchange. So, my advice is before you go and instruct an agent, go and mystery shop them as a perspective purchaser, see how engaging, knowledgeable and proactive the front of house team are. Find a team that is exceptional and suddenly you’re going to find that the estate agents guide price, fees and presentation take on a whole new meaning.

Very privileged indeed to have in the studio with me Chris Worsley from Easy Fireplace. Chris thanks so much indeed for coming by. Just talk everyone through your business, it’s a bit more unusual than most I think.

Chris: Yeah, my pleasure to be here Alex. Our business is based in Huddersfield, Easy Fireplace is what’s known as a bricks and mortar showroom and business. That basically means you can come along, touch and feel, experiment with the fireplaces, play with them, see how they work and basically get a gist of what the product is and what it does.

Alex: You cover a whole entity its not just the mantlepiece so to speak to go over it, it’s much more than that.

Chris: Yeah, the aspect of the fireplace industry is much more than what is known as the mantle or the surround, we do the fireplaces, we do them bespoke made from limestone, marble, wood, cast iron, black granite. You’ve then got things like the gas fires, you’ve got your inset fires your outset fires, your wall-hung fires, you’ve then got your stoves, your wood burners, you’re multi fuel burners….

Alex: Is there anything you don’t actually stock or dare I say know about? This could be quite a technical conversation I think.

Chris: Yeah, I mean from the business, it’s in a little village called Milnsbridge, which is in Huddersfield. We’ve got over 180 products on display that we can demonstrate. It’s a case of coming in and we get the product right for you and your home, it’s not about selling a product, it’s abut selling something that’s perfect for the home and how you’re going to use it.

Alex: I mean it’s been quite interesting, what are the changes that you’ve seen in the market in the recent years. I notice the oil price for example is all over the place and I don’t know if you’ve seen a direct result, whether there’s been a upsurge in business.

Chris: The main thing that’s changed is all about performance of what your purchasing, whether the economic crisis that we all went through, everyone started looking after the pound, our money is very virtual and so are our heating bills, then once a month we’ll get slapped with a bill and that’s when the virtual becomes reality. So suddenly its well how can we stop this virtual money becoming such a big reality check at the end of each month.

Alex: So, people get the bill land on the doormat once a month thinking well that’s a lot to be forking out for my gas, oil, whatever you’re running off and people are switching to I dare say, stoves or fire alternatives.

Chris: There is quite a lot of things in the industry that have changed. Basically, the stove market shot up, the stove market went right through the roof, everyone wanted wood burning because they thought it was an ideal solution to make their heating bills a lot cheaper.

Alex: Is that true, is that the case?

Chris: Actually wasn’t. We as a company, my decision was not to join that rat race, basically everyone was selling stoves based on no knowledge, no information given to the customers, the stove and the idea behind the stove sold itself. It is a beautiful product, you’ve got the warm romantic flames, you’ve got the heat from it, it brings back memories of grandparents, it brings back memories of holidays in cottages, whatever it would be an open fire brings back and triggers memories and that’s basically how the industry romantically grows.

Alex: It turned into a big sort of marketing campaign on the stove front. Why didn’t it work out do you feel?

Chris: It’s a little bit the stoves are a really really great product and if used correctly it can be a good heating source. The main thing is the cost of wood has gone up, the cost of coal has gone up, so the cost of actually fuelling that appliance has gone up so not it’s not just that cost effective.

Alex: I suppose the other thing that often crops up is that people really want a fire and traditionally you think that you need a chimney or a chimney breast that you can actually utilise, but I think I’m right in saying that nowadays you don’t necessarily need to have a chimney at all, there are other options open to you.

Chris: The industry has gone down a little bit of a line of interior design. You walk into a room, you assess a room, you assess even things like the shape of the room, the window, is it a bay window, is it a curve, is it a hexagon shape is it straight? The room layout even before you think about the appliance and the product you’re going to sell the customer, without ourselves that’s first and foremost because it’s not about the sale.

Alex: Yeah and I thought it was surely on stoves and fires most people just look at what’s the output, try and match it with a sort of vague room dimension and then you’re done with it, but it’s more than that isn’t it?

Chris: That’s the way that a lot of shops and showrooms still work because it’s all about the sale. With ourselves it’s about, yes, it’s about the here and now but it’s about the future, how is it going to best work for the family. There’s many things, have they got children now or are they expecting children, did they plan for children in the room so therefore we don’t want to take up too much space in the room because the child is going to be playing so therefore we might not go for a full chimney breast, we might go for a inset balance flue fire, which could be either a hole in the wall or inset.

Alex: Just talking through the flue option there as you said if you don’t have the chimney there’s a flue option that you can base as long as you’ve got a external wall you can make it happen.

Chris: Yeah if it’s on a external wall you’ve got your power flue option which basically is a hole in the wall which has got a external fan and that pulls the combustion out and through the wall. With that the downside is you get a draft when the fires not on and if you ever had a power cut the gas can’t come through. The best market now is balance flue, which is basically a glass fronted, high efficiency gas fire, they range from about 80% to in excess of 90% efficiency. So, in terms of efficiency because a lot of people don’t understand efficiency we created a layman’s terms of how to understand efficiency. If you physically put £1 of gas into a fire, it’s how much heat you get on your legs. So, for a gas fronted fire you’re taking 80-90p into the room, onto your legs, the rest of it is lost through the flue, through the product of combustion, weight and heat, many different things. You’ve then got your open-fronted fires and with them they range from around 50-75% efficient but the industry has changed quite a lot and is now a lot more focussed around energy efficiency.

Alex: And is that the new frontier at the moment, is that where the latest technology is being ploughed into the industry, it’s all about energy efficiency, or are there any other avenues as well being looked at?

Chris: The industry went down a different route, so they went down the glass fronted industry peaked quite a lot, but the cosmetic side of it wasn’t quite as good, wasn’t as appealing as open fronted fires. An open fronted fire, even when it’s off, you’ve still got a look of the coals or the logs or the pebbles, you can physically touch them, and you can see them a lot easier so cosmetically they’re a lot more appealing, but the efficiency rating isn’t as high. So, then you’ve got the glass fronted fires. You’ve got the glass in front, you’ve got the coals or the other cosmetic, whether it’s the coals or pebbles behind and cosmetically it doesn’t look as nice because you’ve got reflection or a shadow so the industry went through a big change and the glass fronted fires now are a lot more appealing and the fuel beds have changed and whether it’s the angle, how the cosmetic look of them, the glass is now non-reflective, there’s a lot of changes. So, the glass-fronted market for the high efficiency has improved a lot but the open fronted as well has because now there’s a different category so you’ve got high efficiency, so you’ve got open fronted and then you’ve got open fronted high efficiency. The open fronted is if you look at the fire, there’s the face of the fire, you’ve got what I call is face value, how much air can be drawn through that face at any given time. Now for a glass fronted it’s minimal because there’s glass there so there’s not much air to pull through as you can imagine as you watch it, it only pulls through the top of the fire and through the bottom. Now, with the open fronted fire the face value is a lot more dramatic because you’ve just got the canopy and then all the coals or whatever the cosmetic lay out is so you’ve then got the open fronted AG so it’s still open, you’ve still got all the cosmetic stuff but the canopy is slightly bigger and you’ve got the convector on there as well so the face value is slightly reduced so the visual look of it you see less of the fuel bed but cosmetically its still more pleasing.

Alex: Chris, thanks so much and also if people want to get in touch with you, what are the best ways?

Chris: You can contact us via telephone and that’s Huddersfield 01484 644464 or you can visit our websites, easyfireplace.co.uk or envyfireplace.co.uk We do cover all of Yorkshire so please don’t hesitate to get in contact and we’re here to help.

Alex: Fantastic, thanks very much indeed again Chris.

Chris: Thank you.

Alex: The property hospital is all about me answering your property concerns and demystifying the process. Now this week I’m answering a question from Tom who’s got this to say.

Tom: Hi Alex, I’m thinking of going on the market because I’ve seen a property that I like, but, if I don’t get it I don’t know what to do. I’d really appreciate your insight on this please.

Alex: Tom, look please be careful here and you’re absolutely right to ask. Remember that nowadays the market is very transparent and there’s lots of websites out there recording all sorts of information about your potential house sale. Now as soon as you launch onto the open market these websites effectively press record and you start leaving what is called a digital footprint. Now, this is actually quite difficult to get rid of. I say this because if you’re going to go on to the market you must do it for the right reasons and have a plan B if you do not secure the property you ideally want. It’s not advisable nowadays to dip your toe into the water and test the market only to find that the property you wanted has gone under offer, you then withdraw your property from the market and you leave behind the digital footprint that can be looked at in years to come and you don’t want to give the market the wrong impression about your home when you really do want sell when that time comes. So overall my advice is if you want to sell then do it for all of the right reasons and go for it. If you just want to test the market, to gauge a reaction or indeed try and secure just that one single property then almost hold back and question your motivations to sell. If you’re unsure you only need give me a call. I hope this helps.

Voiceover: Name?

Jon: Jon Charters-Reed

Voiceover: Business?

Jon: Charters Reed Surveyors

Voiceover: Years experience?

Jon: 25

Alex: We’ve got Jon Charters-Reed here in the studio, a very interesting chap indeed. Now Jon, just tell everyone, you’ve got a few accreditations to your name, which is a bit more unusual than most surveyors out there I think it’s fair to be said.

Jon: Yeah definitely, I began my career as a classically trained York Minster Joiner, went on to become a chartered surveyor, a chartered builder and I’m also a chartered building engineer.

Alex: You’ve got a lot going on there, a lot going on and I think what’s quite interesting is because you’ve got the building background I think there was quite a famous story involved in that as well.

Jon: There was, we’ve had a few incidents where properties have suffered from structural movement, no one didn’t know what to do or how to fix them, so we took our own digger, underpinned it and guaranteed it ourselves.

Alex: That’s what you call an in-house one-stop surveyor shop. I don’t know many surveyors that will go and survey a property and then go and fix it and guarantee it themselves, that’s pretty impressive stuff. I just want to talk through the different types of survey, I think there are a lot of home buyers and indeed home sellers who get themselves into a bit of a spin as to what level they require and what the actual differences are. Just talk everyone through that.

Jon: Ok well before we do let’s just look at the reason why you have a survey and at the moment it’s all the wrong way round because there’s a basic valuation which tells you what the property’s worth and in essence that’s a bank valuation usually, and you’re lucky if that’s one sheet of paper, you don’t normally get to see it as the property purchaser. Now it’s slightly incorrect as how do you know what the property’s worth if you don’t know it’s condition? For that reason, Alex, that’s why you should have a survey first before you get the valuation. I looked around a 1649 property a few weeks ago and it had horrendous defects and it does have an effect on value, needless to say the costs of repairs is not a straight forward deduction off the market appraisal.

Alex: No indeed and what are the survey types?

Jon: What we have is your basic survey, is the industry standard is the RICS home buyers report. It’s quite a restrictive report because it has traffic lights in it and we often do 4/5 surveys a week where someone’s had the RICS home buyers report, its not clear, its not easy to understand and we’ve been asked to do a subsequent report on it just to highlight effectively what the deficiencies are in there.

Alex: Is it often where banks offer that because sometimes they do this overall package where they will give you a survey and I guess very often because it’s a lower grade one it’s cheaper for them?

Jon: Exactly, so the banks are being rather naughty because one of the things I’ve said in my book, How to be A Smarter House Buyer, is that the banks are not treating customers fairly, they are carrying out restrictive practices because if you go to the bank for a mortgage and they offer you a mortgage, they must give you the opportunity to get your own independent surveyor.

Alex: What is the next type or survey that you need to get?

Jon: Most individual private practices will offer their own version of that which is usually full of common sense and not standard phrases. So, you get your level 2 scheme which is one above evaluation, then you get your building survey which is suitable for older houses. What you must remember is that Yorkshire has got a plethora of terraced houses, most of them getting on for 120 years old and they too are likely candidates for a building survey.

Alex: So that is sort of the step 2, the next grade up, I think some surveyors call it an infrastructure survey.

Jon: Sometimes its got a number of names, its sometimes called a building survey, or a mains structure survey and you need to be extremely careful because there are a number of companies out there offering a building survey, charging a fortune and it’s four pages long.

Alex: How long are yours then?

Jon: 40-50 pages long and 40-70,000 words because the thing is that everyone needs to understand is that your home that you are buying is ostensibly the family silver and so why would you skim on going for the cheapest survey on something that is literally worth thousands and it’s your future?

Alex: No, I quite agree. Again, I think there’s confusion over formal valuations and sometimes I think estate agents offer these. Under what circumstance would someone say I want a formal valuation? What are they and in what situation?

Jon: So formal valuations usually begin with a probate valuation or a valuation for tax purposes or a matrimonial valuation. The banks will ask for a valuation because its part of the banks and building society’s acts and regulations that the bank need a valuation to know the property’s value and so the banks are quite canny because they’ll charge the customers up to £600/700 for a valuation which literally is one to two pieces of paper and they’ll keep 60-70% of the fee but they won’t tell you that.

Alex: No indeed, but can you get involved if I needed a formal valuation?

Jon: There’s no reason based on what we’ve previously said about the council of mortgage lenders why a house buyer cannot insist on their own survey. If the bank turns around says you need to use our panel of approved surveyors, its restrictive practice and it’s tantamount to being illegal.

Alex: It is and if you, you’ve gone very specific and ruled out a lot of other options, at the end of the day the clients or the home owner or the house purchaser is actually losing out at the end of the day.

Jon: You can choose your own solicitor, you can choose your own accountant and you can choose your own mortgage adviser. We need to be quite clear that the banks have got to stop behaving like this. I have spent 5 years researching this plus my 25 years in the business in order to create the book that I’ve written.

Alex: So, this is the next horizon, the next sort of scandal in the bank world potentially, certainly sounds as though its heading that way.

Jon: Definitely, we’ve already spoke to a couple of law firms that are interested in setting up departments to actually tackle what is effectively almost an in-house type of mortgage fraud by the banks really.

Alex: So, its setting up a monopoly on it all?

Jon: Definitely and it needs to stop and hence the birth of the smarter house buyer because people have got a lot more savvy as to what’s going on in the world.

Alex: You mentioned your book, I know that’s just recently come out. Just talk where is it, what’s it about?

Jon: It’s called How to be A Smarter House Buyer. Its available in Waterstones and on Amazon, paperback and Kindle. In essence it highlights the deficiencies in the housing market which effectively after the recession became broken we’re still using similar methods for selling and buying houses and advising people how to get mortgages that we we’re doing 10-15 years ago. It gives people tips on how to choose a good estate agent and try to do a bit of mystery shopping.

Alex: That was certainly in an article I’ve just written actually and do mystery shop them, go in behind the scenes and see how well you’re greeted as perspective purchaser if you’re looking to sell a house, I certainly agree wholeheartedly with that. Again, another phrase that’s thrown up is RICS Red Book Evaluation, just to be clear this is formal valuation and it’s what you talk through effectively but what is it? How do you actually go about it?

Jon: Ok so the RICS Red Book its in essence a large book, its red and as thick as the London Yellow Pages and it’s got a whole load of practice statements and guidelines that we have to comply with in order to provide an evaluation. Now interestingly enough when the banks are instructing surveyors in this closed shop environment to carry out an evaluation a lot of companies are not complying to this evaluation. So, I’ll give you another example, a lot of companies will go and do a bank valuation on a house and they won’t look in the loft and there is some practice statements now that say surveyors don’t need to look in the loft on valuations. Now to me this is wrong because the loft, which is probably a third of the property and you know its often the Pandora’s box which can reveal an awful lot of stuff and again lets take the average house price, you know £289,000, you’re buying a house, you’re getting a valuation, you’re paying a load of money for it, you’re not even getting to see it, you don’t know anything you’re getting, they’ve not even looked at two thirds of the house, how can that be right?

Alex: I quite agree, you must have in your years of experience quite a few embarrassing stories for us surely?

Jon: One of my favourite stories is going into a property as younger surveyor, and going into the garden of the property and shall we say the lady wasn’t petite, and it was a summers day and the lady was in her birthday suit and all I could do was offer her my clipboard, but it didn’t serve a purpose in covering a awful lot up really.

Alex: You really need a bigger clipboard Jon. How can everyone get in touch with you? As I’ve said you’ve got a lot of accreditations to your name, where are you based and what are your contact details?

Jon: You can get in touch with our Leeds or Harrogate office and if they type in Charters Reed Surveyors into Google we shall pop up on the screen. You can also contact us on our Harrogate number which is 01423 259601.

Alex: Jon, thank you so much, a fascinating insight as always, really appreciate you coming on the show.

Jon: Thanks very much indeed, take care.

Alex: When you’re selling your home, it is the little touches that help. A couple of neat little tricks for you. Firstly, make sure you have your windows professionally cleaned inside and out so they have a sparkle finish to the property, really does make such a difference, especially on large windows overlooking the garden say. Another tip is to ensure that any overhead light bulbs are high wattages. If you have the energy efficient versions, ensure you have them turned on in advance of any viewings so they have time to warm up and get to full candessence. Equally for side lights make sure you’ve got them appropriately positioned in dark corners but ensure they’re lower wattage. You want your rooms to feel cosy and comfortable rather than emblazoned in dazzling light throughout. Final point, your front door and to either side should be in show home condition. Paint your door, have some potted plants either side. First impressions really do count.

That’s the Alex Goldstein Property Show (part 11) and yet again some amazing top tips and features. If you need expert information, videos and up to the minute property news then head over to my website alexgoldstein.co.uk Alternatively if you require personalised advice when it comes to buying or selling your property please get in touch directly. The next episode is out on the 1 March so make sure you tune in for that. Until next time.

Property expert Alex Goldstein meets Chris Worsley from Easy Fireplace who shares fireplace and home heating top tips. He discusses the pros and cons of open fires versus glass-fronted fires, and reveals whether a multi-fuel stove will save you money on your heating bills, along with many more fire and home heating nuggets of wisdom.

Fireplace and Home Heating Top Tips

Alex: Very privileged indeed to have in the studio with me Chris Worsley from Easy Fireplace. Chris, thanks so much indeed for coming by. Just talk everyone through your business. It’s a bit more unusual than most, I think.

Chris: Yes. My pleasure to be here, Alex. Our business is based in Huddersfield. Easy Fireplace is what was known as a bricks and mortar showroom and business. That basically means you can come along, touch and feel, experiment with the fireplaces, play with them, see how they work and basically get a gist of what the product is and what it does.

Alex: But you cover a host of entities, not just the sf mantelpieces that go over it, it’s much more than that.

Chris: Yeah, the aspect of the fireplace industry is so much more than what is known as the mantle of the surround. We do the fireplaces. We do them bespoke made from limestone marble, wood Castilian, black granite. You then got things like the gas fires. You’ve got your inset fires, your outset fires, your wall-hung fires. You’ve then got your stoves, you’ve got your wood burners, you got your motor fuel burners.

Alex: Is there anything you don’t actually stock [inaudible] This could be quite a technical conversation I think.

Chris: Yeah. I mean, from the business in…it’s a little village called Milnsbridge, which is in Huddersfield. We’ve got over 180 products on display that we can demonstrate. It’s a case of coming in and we get the product right for you and your home. It’s not about selling a product. It’s about selling something that’s perfect for the home and how you’re gonna use them.

Alex: I mean, it’s been quite interesting. I mean, what are the changes you’ve seen in the market in recent years? I know the oil price, for example, is all over the place, and I don’t know whether you just see it as a direct result whether there’s been an upsurge in business.

Chris: The main thing that’s changed is it’s all about performance of what you’re purchasing. With the economic crisis that we all went through, everyone started looking after the pound. Our money is very virtual, and so are our heating bills. Then once a month we get slapped with a bill, and that’s when the virtual becomes reality. So, suddenly, it’s how can we stop this virtual money becoming such a big reality check at the end of each month.

Alex: So it’s people seeing, as you said, the bill land on the doormat once a month, thinking, “Well, that’s quite a lot to be forking out for my gas oil” or whatever you’re running off, and then people are switching, I dare say, to sf stoves and fire alternatives.

Chris: There is quite a lot of things in the industry that have changed. Basically, the stove market went right through the roof. Everyone wanted wood burning because they thought it was an ideal solution to make their heating bills a lot cheaper.

Alex: Is that true? Is that the case.

Chris: It actually wasn’t. We as a company… My decision was not to join that rat race. Basically, everyone was selling stoves based on no knowledge, no information given to the customers, and the stove and the idea behind the stove basically sold itself. It is a beautiful product. You’ve got the warm, romantic flames, you’ve got the heat from it, it brings back memories of grandparents, brings back memories of holidays in cottages. Whatever it’ll be, an open fire brings back and triggers memories, and that’s basically how the industry romantically rose through the last few years.

Alex: It turned it into a big marketing sf campaign on the stove front, but why didn’t it work out for people, do you feel?

Chris: It’s a little bit… The stoves are a really, really great product, and if it’s used correctly it can be a good heating source. The main thing is the cost. The cost of wood has gone up. The cost of coal has gone up. So the cost of actually fueling that appliance has gone up, so now it’s just not that cost-effective.

Alex: I suppose the other thing that often crops up is that people really want a fire, and you always traditionally think that you need a chimney or a chimney breast that you can actually utilize. But I think I’m right in saying that nowadays you don’t necessarily need to actually have a chimney at all. There are other options open to you.

Chris: The industry has gone down a little bit of a line of interior design. You walk into the room, you assess the room, you assess even things like the shape of the room, the window — is it a bay window, is it a curve, is it a hexagon shape, is it straight — the room layout even before you think about the appliance and the product you’re gonna sell the customer. With our sales, that’s first and foremost because it’s not about the sale.

Alex: Yeah, and I thought it was surely on sf stoves and fires. I just thought most people just look at what’s the output, try and match it with a vague sf room dimension, and then you’re done. But it’s more than that, isn’t it?

Chris: That’s the way a lot of shops and showrooms still work, because it’s all about the sale. With our sales it’s about…yes, it’s about the here and now but it’s about the future, how is it gonna best work for the family. There’s many things: Have they got children now? Are they expecting children? Did they plan for children in the room? Therefore we don’t want to take up too much space in the room because the child is gonna be playing. So therefore we might not go for a false chimney breast. We might go for an inset balance flue fire, which could be either hole in the wall or inset.

Alex: He’s just talking through the flue option there. As you said, if you don’t have the chimney, that there’s a flue option that you can base it…as long as you got an external wall, you can make it happen.

Chris: If it’s on an external wall, you’ve got your power-flue option, which basically is a hole in the wall which has got an external fan, and that pulls the products of combustion out and through the wall. With that, the downside is you get a draft when the fire is not on. If you ever had a power cut, the gas can’t come through. The best market now is balanced flue, which is basically a glass-fronted, high-efficiency gas fire. They range from around about 80% up to in excess of 90% efficiency. So in terms of efficiency…

Because a lot of people don’t understand efficiency, we created, like, layman’s terms of how to understand efficiency. If you physically put one pound of gas into a fire, it’s how much heat you get on your legs? So for a glass-fronted fire, you’re taking 80 to 90 p into the room onto your legs. The rest of it is lost through the flue, through the products of combustion, latent heat, many different things. You’ve then got your open-fronted fires, and with them they range from around about 50 to 75% efficient. But the industry has changed quite a lot and is now a lot more focused around energy efficiency.

Alex: And is that the new frontier at the moment? Is that where the latest technology is being plowed into the industry, it’s all about energy efficiency? Are there any other needs as well being looked at?

Chris: The industry went down a different route, so they went to the glass-fronted. Now, the glass-fronted industry peaked quite a lot, but the cosmetic side of it wasn’t as good and wasn’t as appealing as open-fronted fires. An open-fronted fire, even when the fire is off, you’ve got the look of the coals, all the logs, all the pebbles. You can physically touch them and you can see them a lot easier. So, cosmetically, they were a lot more appealing, but the efficiency rate isn’t as high.

So then you’ve got the glass-fronted fires. So you’ve got the glass in front, you’ve got the coals, all the other cosmetic…whether it’s logs or pebbles behind, and cosmetically it doesn’t look as nice because you’ve got a reflection or a shadow. So the industry went for a big change and the glass-fronted fires, now they’re a lot more appealing. The fuel beds have changed, and whether it’s the angle or the cosmetic look of them, the glass is now non-reflective. There’s a lot of changes.

So, the glass-fronted market for the high efficiency has improved a lot, but the open-fronted as well has, because it’s now a different category. So you’ve got high efficiency, you’ve now got open-fronted, and then you’ve got open-fronted high efficiency. The open-fronted is… If you look at the fire and the face of the fire, you’ve got what I call as face value. How much air can be drawn through that face at any given time?

Now, with the glass-fronted, it’s minimal because as a glass air, as you can imagine, there’s not much air to pull through. It only pulls through the top of the fire and through the bottom. Now, with the open-fronted fire, the face value is a lot more dramatic because you’ve just got the canopy and then all the coals or whatever the cosmetic layout is. So you’ve then got the open-fronted [inaudible 00:09:13], so it’s still open, you still got all the cosmetic stuff,but the canopy is slightly bigger. And then they’ve got a convector on there as well. So the face value is actually reduced. So the visual look of it, you see less of the fuel bed, but cosmetically it’s still more pleasing.

Alex: Chris, thanks so much. And also, if people want to get in touch with you, what are the best ways?

Chris: You can contact us via telephone, and that’s Huddersfield 014846 44464. Or you can visit our websites. You’ve got easyfireplace.co.uk, or you’ve got envyfireplaces.co.uk. We do cover all of Yorkshire, so please don’t hesitate to get in contact. And we’re here to help.

Alex: Fantastic. Thanks very much indeed again, Chris.

Alex chats to Stray FM’s Nick Hancock about the Alex Goldstein Property show.

Nick: Here, there is a wonderful world…oh, there you go…of stuff on our website, loads and loads of content that you can listen to in your own time, loads of really useful life stuff on there. And I’m gonna make my number one recommendation to you to download… Go onto our website and have a listen to the “Alex Goldstein Property Show”. So, you’ve got about half an hour in there, loads of interesting stuff, and in fact, the main man is here to tell us what is in January’s “Alex Goldstein Property Show”.

Alex: Nick, you’re too kind. Great to be here this morning. Very full-on show this month. We’re talking through property investment. What should you actually do, and what do you need to look for now? A lot’s changed, obviously, in a short amount of time. When you are selling your home, who is actually best to show around the buyer on first viewings and second viewings, and most importantly, again, why? We interview and get the inside track on conveyancing solicitors. We’ve got Winston Solicitors’ Katrina Allen in Harrogate in. Plus, we answer the question, should you market your property with an estate agent if they’re selling a property you wish to buy? And loads more, fantastic show.

Nick: Okay. I’ve already listened. It is great. You can download it from the Stray FM website. Alex, have a fab weekend.

There is a lot of talk in the news about when to invest in property. Brexit, Article 50, Donald Trump, FTSE 100… it’s all quite confusing. In a turbulent environment, property consultant Alex Goldstein shares a simple solution that makes perfect sense

When to Invest In Property?

Full transcript below:

Alex: This month we’re discussing property investment and when to invest. Now, believe you me the time is now believe it or not. The market overall especially say in London has actually come back, with London coming down between 8/9% as a general rule. Interest rates have never been so low and let’s face it they can’t get much lower. As a result, borrowing money has never been so cheap. The Brexit decision has been made, the economy is looking fairly stable and demand for rentals remains incredibly strong. Now many people are asking well Alex, what happens if the market falls in the next couple of years? Well remember you need to look at the medium to long term now as an investment. Gone are the days of short term flipping. If the market falters over one or two years look it’s not going to have a significant impact because you’re looking at a longer timeframe. Now the all-important question is where are you going to invest? Now, as I think of it the key points to consider are look towards the key northern cities, look towards Leeds, Manchester, Liverpool and Sheffield, plus of course look at student accommodation. These have got relatively low capital outlays but really can provide excellent yields. If you happen to be looking in London compare where the cross-rail station are, look at the zones three to six plus if you want to take a bit more risk on look at the East and the South East Boroughs. They’re higher risk looking at say Peckham, Dagenham and Forest Hill, these are predicted to see very strong capital uplift in the next three to five years’ time but buying now whilst slightly on the cheaper side. Also bare in mind the key university cities, Durham, Bristol, Reading, York, Cambridge and Warwick, these are all highly popular with investors too at the moment. As I see it, look what doesn’t change is the UK is still seen as one of the safest places in the world to invest. Property is still proven to historically outperform any other investment over the medium to long term. Overall always know the type of tenant who you are aiming at. As a generalisation consideration should be given to buy property with 2 bedrooms and 2 bathrooms. This gives you flexibility when renting, especially through say Air B&B and if you decide to sell it’s going to appeal to wider audience. And finally, ideally secure some parking on the property and look if you don’t use it or the tenant doesn’t use it you can rent it out separately and it provides another passive income stream.

The Alex Goldstein Property Show (Part 10) hosts Katrina Allen from Winston Solicitors in Harrogate and Leeds gives the inside track when you are looking to sell and indeed buy a property.

What are the steps that you go through and what do they all mean? What is the point of having a conveyancing solicitor and what are Katrina’s best tips.

The Alex Goldstein Property Show (Part 10)

Alex: It’s great indeed to have Katrina Allen from Winston Solicitors here. Thank you for coming in, Katrina. Very exciting times indeed, I hear on the great fine. Tell me a bit more about it.

Katrina: Yeah, so we opened our Harrogate office on the 1st of December. There’s myself and Mark Fagan, our Heading of the office for the time being. I do residential property and commercial property. Mark is our Property Litigator. We also offer other services which include employment, wills and probate, and other litigation matters.

Alex: Wow. So, it’s almost the one-stop legal shop there where you say it’s kind of… [crosstalk]

Katrina: It is, it is. It’s very exciting. I must say, there’re amazing coffee shops in Harrogate, so looking forward to it.

Alex: At the moment, what are the other options you’ve got there?

Katrina: So, we have our Street Lane office around here, which is where I have been based for the past three years, and we also have Leeds City centre, so exciting times.

Alex: Expanding, one of the very few solicitors that are actually expanding at the moment. Great to hear. Tell me a bit more about your role within the company because I think you’re a bit more unusual for most on the property solicitors. Just tell me about that.

Katrina: Well, I’m a Property Partner, but I do cover for residential and commercial, which is unusual as most people just sit with one seat, but it is fun and it’s a variation. I do tend to deal more with residential at the moment, just because, sure, other properties listed fine in the markets are really buoyant, but I do commercial as well.

Alex: And when you say residential, is that on the conveyancing side of it?

Katrina: It is, it is.

Alex: And the same on the commercial side.

Katrina: Yes.

Alex: And if there’s a problem, that’s where you’ve got your psychics?

Katrina: Exactly.

Alex: Got you. A lot of people say, “Well, what’s the point of having a conveyancing list, and what is the actual point to having a sale?

Katrina: Property is very complex. There’re lots of different elements to property. It’s a must to have a professional assisting you and guiding you. If you’re buying with a mortgage, in any event, you would have to find a property solicitor because the bank would not lend without that expertise. People sometimes do have the opinion that convenes in transactions can be simplistic, but I’m sure you found, Alex, that that’s a rarity.

Alex: Certainly, yeah.

Katrina: So, property solicitors will do things such as searches, which is local authority searches, water searches, environmental searches, which look at the property. We also have to make sure that we check the covenants on the title. Covenants are restrictions on the property itself, so for example, if you are buying property that you wish to extend, you not only would need to check say a drainage report, which would show a potential sewer or drain pipe in the boundary, which may affect development, we do also need to check whether or not there are any covenants which could restrict development. So, it’s always very, very important you do instruct a property solicitor.

Alex: And how do you check these, these little gremlins? Sometimes people talk about some historic footpaths that no one knew about. I’m guessing when you involve a covenant list, they’re able to sort of check all that out for you.

Katrina: Yeah. We check the documents that are passed to us. So, for example, if we’re gonna check regarding footpaths, the local authority search would be the first port of call that would look for whether or not there are any public footpaths registered. Also at the moment, I’m noticing that there are more applications to register a public right. So, we’re seeing that now more in local authority searches. And so, that is something that’s important. Sometimes your deeds will show a relative way. I’ve just acted recently for a client where they had to fishing right at the bottom of the garden. So, things like this are important for your solicitor to be checking because if you bought that blissfully unaware, and then moved in and then it was alerted to you, then you might be a little bit unhappy.

Alex: Indeed. And then when you try and then the consequences I always say, when you actually come to sell, you’ve then got that problem and you’ve now got to declare it.

Katrina: Exactly.

Alex: In terms of the actual process of conveyancing, obviously once you’re instructed and the deal’s been put together, you’ve sent up for all the searches, as you said, and you get all the information back, what are the actual next steps? Because again, I think a lot of people have overlooked the conveyancing process and they just said, “Oh, well, we will just get our solicitor to run it,” or what actually happens behind the scenes once you’ve got those bits of information back?
Katrina: Yeah, and it is a complex process so if once the client instructs, we obviously submit searches with the client’s authority. We try to do that at the start of the transaction and behind-the-scenes whilst we’re waiting for the search results to be received and we are raising inquiries with the other party’s solicitors. During that obviously, we’re getting replies in working through the replies checking officer the Covenant reporting for the client on the covenants raising queries with the actual client because we need to chat.

Alex: Indeed, a bit of a solicitor legal phrasing here. Sometimes you call it inquiries. People out front will probably call it questions.

Katrina: Questions, there we go.

Alex: But they are effectively the same thing.

Katrina: Yes. So, we’ve got to raise questions with the other party’s solicitor on the title itself, when we receive search results, there may be questions we have to ask them. All this is happening behind the scenes.

Alex: This is if something is not clear. One of the searches comes back, possibly, you’re thinking in your professional mind something’s not quite right.

Katrina: Exactly. You have the basic questions that you will always ask. I’ve never had a transaction where you don’t ask a question. So, there will always be the basic questions that you’ve got to ask as a starting point, and then quite rightly, there will be questions where you may be alerted to something in the form that the seller has completed. So, there’s been an extension, so then we go on to ask the question, “Please supply planning and building regulations.” There may be something that the seller… for example if you’re purchasing a property that’s highlighted such as the dispute, we’ve then got to raise a further question. So, there’s always something behind the scenes that’s happening. We may not always be speaking to you every day about that question, but you will then be reported to further on with copies of those questions because ultimately, the client is your eyes as it were for the property. We never see that property, so it’s always important you keep your client in the loop because they might say, “Oh, fire.” We’ve noticed that at the property in the event the seller hasn’t actually noted that.

Alex: Should a purchaser of a property that you’re acting for, they obviously most of the time people do actually get a form of service as best that you have, and see the site of that for those reasons or nothing to do with you?

Katrina: I always ask for a copy of the survey. I’m certainly not a professional surveyor, but there is always an area, an element matter for the legal representative which we need to check.

Alex: Yeah.

Katrina: For us, the survey and the client are our eyes for that property, so it’s very, very important you have that communication with your clients, so they can highlight to you points that you may need to raise, which ultimately will have impact if you didn’t raise that other question on a future sale.

Alex: Got you. So, once you’ve gone through those inquiries, you’ve tested all the avenues, then this stuff comes on the most part people have a mortgage, and you get the gain of technical phrasing, “I’m pulling down on the mortgage.” Just talk around through if you’re getting a mortgage, how it actually works from a legal, from a solicitor’s perspective? There’re banks and panels, and all it gets…there’s a lot of jargon involved.

Katrina: Yeah, once the client has applied for the mortgage, then the mortgage lender will check the solicitor who’s actually on the mortgage lenders panel. We are because of the number of partners, and we are, generally, on most of the panels. Once the evaluation has been done, the mortgage offer will obviously come to the solicitor, in most cases. HSBC are a little bit different, they send it out before. And for example, if we’ve got all searches, I received all replies to the questions that I have raised and I’m satisfied, and the mortgage offer is set on file, at that point then I would ask the client to attend the office for signature of papers, go through papers with the client, any questions. At that point then if we are ready, we would then say to the solicitor on the other side, we would like to discuss completion dates. Once that date has been agreed, we send off what’s called a Certificate of Title to the mortgage provider, and that is us the solicitor saying, “We are happy that there is a clear title that you can give lending to.” And then we request drawdown of those funds.

Alex: Got you. So yeah, the mortgage line is putting everything up to you.

Katrina: Everything on the solicitor.

Alex: I’ve got you. So, is that part of the reason why the whole process I hear you have a lot of those grumbles?

Katrina: Yes.

Alex: The whole process takes a long time, especially at the moment. I suppose in the last three to five years, the length of time from going under offer, free, to exchange, just things have got slightly longer. I don’t know whether you feel the same with your experience, and I don’t know how long it actually takes from your perspective now.

Katrina: Yeah, I’ve been doing this job a long time. I do hear when people can quote that a property transaction will take four to six weeks. I think it’s difficult. We always give a client an estimate. So, somebody who sells to me three whole purchase, what would you estimate? I would say around six to eight weeks. You can never give a determined time because each property transaction has its variables. It depends on the length of the chain, it depends on what questions you have to raise and what responses you’re gonna get. If you raise questions and you get amazing responses back quickly, then that transaction, ultimately, is gonna happen a lot faster than where you send off queries and it takes four weeks for somebody to respond.

Alex: And does that then make a difference? So, say you’re acting for a buyer, and obviously, the buyer sounds to be extremely efficient, but then on the other side, if the vendor, the house sellers, and their solicitor isn’t as proactive, again, that also hinders the process.

Katrina: Completely. It’s ultimately the variable. So, for example, if it takes longer for the other party’s solicitor to get replies, that’s gonna have an impact because you waited. And then if you get a response that you don’t like, it’s ultimate, you may have to go back and raise additional questions, and I think this is sometimes the issue we have. If a client is told, “Replies are in.”, doesn’t necessarily mean at that point I’m gonna be ready.

Alex: It suggests, yeah.

Katrina: It might mean, unfortunately, I’ll have to go back and raise further questions. Again, it depends on the length of the local authority search. You have Woodcock local authority that can do them within 24 to 48 hours. You have another that, at the moment, they’re saying their lead times 20 working days, but I would say some another two weeks over that. So, so many different variables, it’s so difficult. As long as you chase on the transaction, that’s about as much as you can do because you can only put so much pressure on another party. But it’s important, obviously, that there is chase during the transaction with the help of the estate agents.

Alex: Absolutely. And what actually happens? Because, again, I suppose this is a bit of a hot topic. Yes, it is very much so in the estate agency sector at the moment, but sort of the online disruptors as they like to call themselves, you’ve got this mass online conveyance. What intrinsically is, I suppose, the difference between one of the online guys and then obviously, you guys, in Leads and Harrogate? People just instantly go, “Well, it’s hell of a lot cheaper.” Why is that?

Katrina: It’s difficult to say because I certainly don’t get quotations from line agencies and solicitors. I would always personally choose local because I like that relationship with the local solicitor. Generally, you’re gonna find with local solicitors, they’re gonna know local agents, local professionals, which ultimately if you’ve got the problem, then you can pick up the telephone and say, “Look, I need your assistance. I needed your guidance. I need you to push on this transaction. Can you assist?” I’ve never used an online firm myself, so it’s difficult to comment, but I personally think have been able to step into the office of your solicitor, call and five-minute chat, or deal with everything in one meeting, drop paperwork off rather than you have to wait a week for it to be posted, all these things I’m sure will add to…

Alex: It’s the little things that count.

Katrina: Yes.

Alex: Absolutely. And if I’m a homeowner and I’m looking to sell, are there any things that I should look to get done in advance, or prepare, or things to be mindful of?

Katrina: Most certainly. If you’re selling a property, when it goes on the market, I wouldn’t wait to speak to your solicitor once it’s sold. Make contact with your local solicitor early on. They can then guide you as to what would be required from you at the point that the property does sell, so for example, your identification, proof of funds, things that you can take time in the background to collaborate to pass on. Say, for example, you’ve had a recent gas safety check on your boiler. Your solicitor can say, “Get my paperwork together.” If you’ve had an extension, make sure that all you pay for it for your building regulations and planning permission is all bundled in readiness to drop to your solicitor, because ultimately, the more that they have a start, the quicker your contract papers are gonna go out.

Alex: Good little top tip there.

Katrina: On the purchase transaction, again, speak to your solicitor early. You may have viewed a property, you might not have had that offer accepted, but at least, again, you can have the chat. So many clients just do the basic evaluation which is for bank purposes only, and then until they instruct this list that they may not think about a survey. So, again, if you’ve spoken to a solicitor before, you could’ve potentially had an offer accepted. At least then you might think, “Didn’t mention the survey.” Have that discussion and make an informed decision early on. Then you’re not obviously upsetting the vendor by asking for a survey four weeks down the line, which ultimately may give the vendor a little bit of the… they might be a little bit concerned by that. If you’ve done it early on when you can do it.

Alex: Yeah, just out of the way.

Katrina: Yeah, exactly.

Alex: Because I know you mentioned sort of extensions, and certainly in my experience, that tends to be a bit of an issue where people have overlooked, accidentally of course, on some things when it comes to extending. From your perspective, what are the issues that you come up against, or you would be mindful from the legal perspective?

Katrina: Yeah.

Alex: If I was extending my house, for example, what should I get done?

Katrina: Yes. So, if you’re looking to extend, you’d obviously need to check with the local authority what you would need to do. So, does it require planning permission or is it with unpermitted development? Does it require building regulations? It’s so important to have that contact with the local authority because ultimately when you come to sell, the solicitor acting for your buyer will raise that query. Unfortunately, we do see it more often than not that when people do come to sell, we’re asking for paperwork for that extension, and ultimately, they don’t have that can be able to offer.

Alex: What happens if you fall into say that sort of circumstances where you don’t have that paperwork for an extension? Is there a way around legitimate leave?

Katrina: Yeah.

Alex: Have you sold something like that?

Katrina: There’re different variables. One of the first questions we’ve got to ask is, “When did the extension take place?” We’ve got to give the client the choices to which way they wish for us to move forward with the seller solicitor. So, for example, the best way forward would be for the person who owns the property to go back to the local authority, have a retrospective concern, and they would issue what’s called a regularization certificate. But that would be ultimately only if the seller would be prepared to do so, because the moment you get the local authority to the property, you’re putting a local authority on notice that you didn’t have those permissions.

Alex: Oh, yeah.

Katrina: So, that would be the first conversation you’d have with your client. Now, ultimately, in conveyancing, everybody wants to meet the end result as quickly as possible. For solicitors, we’ve got to make sure that end result is not gonna cause a problem when you come to sell. So, if the seller does not wish to go back to the local authority, most seller solicitors will then offer what’s called an indemnity policy.

Alex: Yeah.

Katrina: Now, that’s fine. That obviously is something that we would agree to, but clients have got to be aware that an indemnity policy merely covers for council enforcement. It doesn’t cover for structural defects as such. So, it would be important for the client to make sure that they satisfy themselves on that point because what you don’t want to do is go, “That’s fine. We’ll accept the indemnity.” And then find there’s a problem with your footings. Ultimately, that could pose a potential problem. What we also suggest the clients is they do check with that building’s insurance company, that they are satisfied, that they’ll also be prepared to offer insurance, on the basis that we couldn’t say whether or not that extension would need building regulations or planning permission. It’s just ultimately very important that clients do think of the bigger picture when they are proceeding. People do proceed with indemnity, as long as it’s notified to the mortgage provider, and they’re happy, and the client’s happy. They just got to be aware that it is partly up their own risk to accept that on the indemnity basis.

Alex: So, if you haven’t got that paperwork for that extension, you can get rounded, but it’s gonna be quite a headache and, as you said, that is another reason why the whole process can take so much longer.

Katrina: Yeah. I have seen recently three…We’ve been acting in three recent cases where the seller has agreed to go back to the local authority when this is on leads, and the local authority, I must say, have been brilliant, and they’ve gone out, and I think we’ve had the regularization certificate within a week to two weeks, from the other party’s solicitors. In one case, it was 48 hours. But that was just a question where building regulations was noted on the local authority search, that just hadn’t had the sign up for the completion certificate.

Alex: Got you.

Katrina: And so there are things that can be done, it’s just ultimately nobody should make an approach to the local authority without speaking to the solicitor. If anybody makes that approach without taking a necessary advice from those professionals, and that can cause a major problem.

Alex: It really can.

Katrina: Because if you make an approach to the local authority, it could potentially invalidate an indemnity insurance. So, it’s a must that people don’t just think, “Oh, I’ll just pick up the phone.” Because the moment you do that, you could be causing yourself and the whole chain a problem.

Alex: It does happen more often than you think.

Katrina: Unfortunately, it does.

Alex: And I’ve got to say, with the length of career that you’ve got, I dare say surely, you’ve got an amusing story for us.

Katrina: Yeah, this was a difficult question because you have to be careful with the information that I gave without highlighting a client’s case, but I do remember this was right at the start of my career. I was reporting to a client on covenants. There was a covenant that you could not keep pigs or poultry, and the client actually said to me, “But what about my pet pig?”

Alex: Wait. We’re talking micro pig here?

Katrina: Yeah. A pig. A full-size pig. At first, I thought she was… because obviously, people have humor but she was actually being quite genuine. She had a pet pig that lived partly in the house and partly in the garden.

Alex: Well, okay.

Katrina: So, this was gonna be a deal-breaker for her. In the end, we did write to the local authority, and they did refuse. So, it’s one of those things that it was quite interesting to be part of. I think she’s the only person I’ve ever met with a pet pig in the house,

Alex: So best declare absolutely everything, including if you have a pet pig.

Katrina: Yeah. This is why is so important when we write to clients and report on the covenant, is so important that people do read those documents because ultimately that one covenant could have impact on either your decision to purchase or future availability.

Alex: And I’m assuming the pig was absolutely fine and he moved in happily.

Katrina: They didn’t buy. They didn’t buy, no. The local authority wouldn’t give consent.

Alex: It’s the way it goes sometimes. But it’s great to have you on the show, Katrina, and thank you so much. If anyone wants to talk through that pig scenario or if they’re buying or selling a property, one of the best ways to get in touch with you, obviously, at the new snazzy office.

Katrina: Yes! So, if you would like to pass through your pet pig stories to me or any questions on that the legal process for buying or commercial property if you can give me ring on 014-2327-5375 or drop me an email at kaa@winstonesolicitors.co.uk.

Alex: Fantastic stuff. Thanks so much again.

Katrina: No, thank you for having me.

When the unexpected Brexit result came though, there were ramifications in the wider economy and the property market. However is all the media hype to be believed? Listen in to property consultant Alex Goldstein give his years of insight in to the the effect of brexit on the property market and picks out what one should be mindful of…

The Effect of Brexit on the Property Market

Full transcript below:

Alex: This month we are discussing the outcome of Brexit and to put the record straight. Now come on, let’s face it when we heard the UK was leaving the EU what happened? Panic set in. Whilst one half of the UK were revelling in their success the other half were going into meltdown. The stock exchange was all over the place, sterling fell off a cliff, political resignation went around like wildfire and let’s face it the doom-mongers had a field day. People then started buying into this psychological panic about the economy and they actually lost sight of what was going on. What we’ve got to remember is that leaving the EU is not an on/off switch type scenario. From the point the UK government invokes article 50, there are 2 years from that point of detailed renegotiations. So, in other words it’s going to be 2019 before we know the full extent of the detail. The key to all of this whether you are Brexit or Bremain is mindset. By staying positive and keeping calm you will start to see the new economic and property landscape in a brand-new light. Now, mortgage lending rates, they are at an all time low and money’s never been cheaper to borrow. So therefore, if you’re thinking of moving home you can go up a couple of rungs on the ladder. The Bank of England have held the interest rates at half a percent, however there’s talk that that’s possibly going to come down. Again, good news if you’re borrowing. Supply and demand are kings when it comes to property. In Yorkshire supply’s always been weak but demand very high and this has led to prices holding firm in comparison to other parts of the country. So therefore, if you’re a homeowner looking to sell, demand remains good and as long as your guide price remains realistic there are answers out there for you as well. Investing and buying in property has rarely been about short term flipping, so therefore any changes in the house price index is likely to balance out over the length of ownership. That is why property has always historically proven to be the best investment over the medium to long term. International investors have also plagued on the current exchange rates and are increasingly keen to buy. So, the actual conclusion of Brexit is way down the line and everything in the media currently is on the most part, educated speculation. So, after all no country has ever been in this position before. What we do know is that the UK and the EU wants a clean break on the best terms for both sides. We need them and vice versa. So, when you look at the world in a positive frame of mind keep calm and always take a medium view point, the outlook is not so bad after all. Yes, of course there is some current short-term turbulence but that’s not a surprise, we knew this was going to be the case anyway. Here’s a parting thought for you, will we actually leave the EU in the end? Either way, all the white noise about going in, staying out, meeting in the middle, it’s all talk. Am I going to put my life on hold for a minimum of the next 2 years? No, of course I’m not and I suggest you may wish to do the same.