A First Time Buyer's Top Tips

"As Senior Negotiator for Bullock & Lees," says Dan Joyce "I've seen and helped my fair share of first time buyers purchase their dream home. Now I'm currently in the process of purchasing my first home, I thought I'd share my experiences and top tips when buying your first home. I hope you find my tips helpful and if you have any further questions, please do give me a call on 01202 484526."

The Journey to Buying your First Home

Save for a deposit.

The best thing to do as a first time buyer is to start saving for a deposit. The minimum amount most mortgage lenders will ask for is a 5% deposit of the property's value in order to grant a mortgage. So provided that you meet the mortgage lender's criteria for lending, the mortgage lender will then lend you 95% of the property's value. Therefore if you wanted to buy a £150,000 property you would need to save up at least £7,500 and borrow £142,500.

Obtain a Mortgage AIP (Agreement in Principle)

Sometimes also known as a 'Decision in Principle'  an AIP is a certificate or statement from the mortgage lender to say that in principle they will lend a certain amount to you as a prospective borrower based on some basic information.

Start house hunting!

I would recommend using websites such as www.rightmove.co.uk and www.zoopla.co.uk to find your ideal property. Also pop in to your local Estate Agents (preferably Bullock & Lees!) and ask to see property particulars of any properties that meet your budget requirements on their books and make appointments for viewings.

Agree a purchase

Submit your offer to the agent for consideration by the vendor. Hopefully they will accept your offer and you can move on to the next stage. If your offer is not accepted, try submitting a higher offer that is still within your budget. Once you have an agreed purchase price with the vendor contact your solicitor to start getting the conveyancing ball rolling.

Instruct a solicitor

I would recommend using a professional and independent solicitor that you trust to get your property purchase through. If you have a family solicitor that also handles conveyancing I would recommend using them - usually your family will have had a great experience with them and you can trust them in your matters. Alternatively use a recommended and personable local independent solicitor not a call centre or internet solicitor.

Arrange a mortgage

As with the solicitor I found that using an independent mortgage broker was much more helpful to me as he did all the legwork with all the different lenders and then came up with the best deal available at the time. I didn't realise how often they change and its important to ensure that you have the most up to date advice.

Arrange a survey

Your mortgage company will appoint a valuation surveyor to confirm that the basic price is right, however it's always worth having a proper 'Homebuyers Survey' which is much more detailed and could save you thousands of pounds on unexpected issues. This is especially important with some of the older style houses in Bournemouth as the one I'm buying is about 100 years old! Visit www.alliedsurveyors.com as they are very good at providing detailed 'Homebuyers Surveys'.

Obtain mortgage offer

If your mortgage application is successful, and the property valuation is satisfactory, the mortgage lender will send you a formal mortgage offer letter. When you receive the mortgage offer letter from the lender it's important to read through it carefully.  The document will contain the exact figure the lender is willing to advance, taking into account your financial background and the property's market value.  If there are any discrepancies you should contact the lender as soon as you can so they can correct any mistakes or provide clarification on any issues.



Exchange contracts

Until you exchange contracts, neither side has any legal obligation to buy or sell the property, and both can pull out without any penalty (or only the deposit on agreeing offers, if one was made). Both buyer and seller sign identical contracts, but only when they are formally exchanged by the solicitors does the deal become legally binding. Between exchanging contracts and completion, either side will almost certainly pay major penalties if they pull out. However, it is extremely rare for anyone to pull out after exchanging contracts, and in practical terms, this is when you can breathe a sigh of relief – you can be pretty sure your house purchase will go through.

You usually exchange contracts between 7 and 28 days before completion – although you can exchange contracts on the day of completion. Because exchanging contracts means you are legally committed to buying the property, you have to make sure you have everything in place before hand, so that nothing can go wrong. You should only exchange contracts after:

• You have agreed on an offer, including for fixtures and fittings
• You have had the mortgage valuation and any surveys you want
• You have been formally offered a mortgage in writing
• You have arranged funding for the mortgage deposit
• Your solicitor has done all relevant searches
• You have organised building insurance. After you exchange contracts, you are liable for the property, and so you need to have buildings insurance in place before hand
• You have sorted out funding for the contract deposit (traditionally 10% of the purchase price, but nowadays often less)
• You have agreed on a date of completion for the sale, which will be written into the contract
• You have read, understood and signed the contract

Once you have done these things you will agree on a date and time to exchange contracts – usually at midday on any given day. If you have one, your solicitor or conveyancer will exchange contracts for you.

All you have left to do now is wait for completion day and....MOVE IN!!

To summarise follow my top tips to make sure your house purchase goes smoothly:

1)     What you can borrow IS NOT ALWAYS what you can afford to borrow. Do not leave yourself in a sticky situation if interest rates change.

2)     Calculate your stamp duty charge (and any other immediate outgoings) – this is not included in a mortgage offer and is an additional expense upon completion of your purchase. For an up to date calculator use: http://www.moneysavingexpert.com/mortgages/stamp-duty

3)     Use recommended and personable independent professionals wherever possible throughout the purchase. A call centre solicitor or mortgage advisor may seem like a bargain in the first instance, but an easy to reach local professional will certainly save time and stress and provide a much better service.  I used, and would certainly recommend:

Matthew Fleming-Duffy from  Cherry Mortgage and Finance http://www.cherryfinance.co.uk/ for my mortgage broker.

And Lesley Curtis from Ellis Jones in Canford Cliffs http://www.ellisjones.co.uk/ for my solicitor.

4)     Do not get too carried away whilst searching for your home, keep standards realistic and have a good look around before offering, DO NOT jump on the first property you see because you are so excited about moving out. It is also a good idea to not use the entirety of your mortgage AIP in order to be more likely to get the mortgage offer.

5)      Remember it is called 'the ladder' for a reason and everybody gets on at the bottom.

Paul's Top Tips for selling your home!

"Presentation is never to be underestimated," says Paul Matthews, Sales Manager for Bullock & Lees in Bournemouth and Christchurch.

Remember if your home is clean and tidy with a home for everything and not too cluttered, even if your home is a little tired and worn around the edges, a prospective buyer is much less likely to notice.

Remember, the experience of viewing your home is not about how you live in your home but how they can see themselves living there.

Always avoid unnecessary distractions. Just because you are a pet lover, the person viewing your home may not be and will find it impossible to relax about viewing your home. Likewise, if you have small children at home try and avoid letting them walk around with a prospective buyer, because if the viewer is talking to a little one, they will not be looking properly at what the accommodation can do for them.

The reality is…your home will sell itself…as long as you give it a chance to do so!!

Top Tips

• Whenever possible, always try and leave space for the viewer to park on your drive.

 

• First impressions about what your home looks like from the outside will always set the scene. Think about presentation.

 

• Kitchens and bathrooms always need to be presented in a clean and organised fashion as they are probably two of the most important rooms you want to impress a prospective buyer with. Clear and clean work tops, no washing up left out, toilet seats placed in the down position etc.

 

• Leave curtains and blinds open. The more natural light the better.

 

• Particularly when the rooms are small, think about how much furniture there is and where the furniture is positioned. You will be amazed at how much difference can be made to the feel of room with a little bit of thought.

Winter Month Tips

• Always have your heating on and working on a timed basis. It does not matter how immaculate your home may be, if it feels like you are walking round a giant fridge, the prospective buyer will struggle to see themselves living there.

•  Always ensure your lights work and that you have the brightest bulbs as possible. If you are using energy saver bulbs, try have them turned on prior to the viewing so that they have reached their maximum brightness.

• In the case icy conditions, make sure that the access to your front door is safe under foot.

 

 

 

Just think about this…the initial offer that a prospective buyer will make is going to be based on their perception of how good or how bad they think the presentation of your home is.

A LITTLE BIT OF THOUGHT & EFFORT COULD MAKE YOU THOUSANDS!!

 

Break The Mould!

Are you suffering from Mould & Condensation problems in your rented property? Never fear! Bullock & Lees are here to help! Read our guide on how to deal with mould & condensation problems and how it is often easily preventable.

Condensation (Often Mistaken as Damp)

 

Tenants are always under the impression that they are powerless to do anything about the condensation, but it is moisture generated by the tenant within the property that causes the issues. Moisture comes from cooking, bathing and in some cases drying clothes indoors which produces gallons of moisture.

 

What we can do as an agent is educate you to take responsibility for it.

 

Firstly, ensure that in the colder periods of the year you are running the heating for at least 3 hours in the morning, and 5 hours in the evening to give the chance for the property to dry out. 

 

We know that as the colder weather hits us, the temptation to leave the heating on and all the windows closed is there, but for prevention of mould and condensation, if possible please do try to leave a window open whilst the heating is on. This will allow the moisture to travel to the outside, as warm air will hold more moisture than cold air, effectively making it mobile and helping it drift out of the window, whilst also making your property a moisture and mould free zone!

 

In addition to this you are encouraged to use a towel to dry off the excess moisture from cold surfaces/walls and dry this outside. Every home gets condensation at some time – usually when lots of moisture and steam are being produced – for example at bath/shower times, when a main meal is being cooked or when clothes are being washed and dried. Condensation is usually at its worst during the winter. It often results in black mould growing on walls and other surfaces. Even when the property is insulated condensation will still drift onto windows, sanitary ware and mirrors as these are the coldest surfaces.

 

We can confirm that DAMP does not occur above ground level. Condensation is more often than not caused due to lack of ventilation to the property and heating the property insufficiently.

 

The three main ways to deal with condensation are:-

 

• Produce less water vapour or steam in your home.


• Don’t let the water vapour and steam that is produced spread all round the house.


• Keep your home ventilated

To deal with a condensation problem effectively, you will probably need to do all three and all can be done at no cost. Produce less water vapour. The amount of condensation depends on how much water vapour is in the air. Many every day activities add to the water level in your home, but their effect can be kept to a minimum.

Useful Advice

 

Cooking

Always use the extractor fan where fitted or keep a window open when cooking.

 

Drying clothes

Hang washing to dry outside at all times if possible. If you use a tumble dryer make sure it’s vented to the outside, or leave a window open. Never dry washing indoors. Do not hang wet washing on radiators all round your home – doing so is very likely to cause condensation problems. Laundrettes are common in all areas and all provide drying facilities.

 

Bathing/Showering

Keep the room well ventilated when bathing and showering. Do not close the door nor switch the fan off afterwards until the room is dry.

 

Keep your Home ventilated – let wet air out

The best way to remove water vapour is by providing adequate ventilation. Nobody likes draughts but some ventilation is vital. Keep a small window ajar, or a trickle ventilator open in each occupied room to give background ventilation, but make sure your home is still secure.

 

Keep warm

The best approach to heating in order to reduce condensation, assuming you have taken the other steps, is to heat your home at a low level for a long time. Keep the heating on, but set it to provide just a minimum of background heating. This will warm the property up and keep it warm so there are no cold surfaces.

 

 

REMEMBER! - To avoid mould and condensation keep your home well ventilated and you will have a happy home, happy tenant and a happy landlord!

 

 

 

So You Want To Be A Landlord?

Are you thinking of renting your property but don't know where to start or what you should do to go about getting the property ready to accept tenants?

Bullock & Lees are here to help! Follow our guide and you'll be well on your way to becoming a Landlord!

If you have any further queries or would like to discuss marketing your property for rental with us, why not give us a call on 01202 302345 or 01202 484526 or pop into our Bournemouth or Christchurch offices and have a char with our friendly and knowledgeable staff.

"How much rent should I charge?"

We advise our clients that the rents you can ask for is usually determined by three factors:

• Supply of homes for rent and type of properties.
• Demand in that area for rental properties.
• Quality and size of the property and any additional features such as gardens, garages or parking.

Rent values change all the time so there is no hard and fast rule. Remember to take into account the advice of our agents when valuing the property before deciding on what rent you will charge.

"How long should it take to let my property?"

We generally have enquiries within the first 2-3 days of marketing your property. Viewings will then typically take place in the first 10-14 days. If you haven't had an offer within three weeks, take action on one or more of the following:

• Fix any niggling issues that might be deterring tenants.
• Spruce up your property inside and out.
• Consider the asking rent.

"Should I allow pets in my property?"

You are under no obligation to accept a tenant with a pet so the choice is entirely yours. However, we do generally advise that you do not accept pets as this can cause problems for subsequent tenants, such as those with allergies.

"What do I need to do to prepare my property?"

Your property needs to be fit to rent from day one. That means making sure it is in good repair and all fixtures and fittings (including any white goods supplied) are in good working order and preferably freshly decorated.

You must make sure that a Gas Safety Certificate is undertaken if you have gas in your property and an Energy Performance Certificate is issued for the property. We also advise that the electrics are tested.

We do recommend that an inventory is taken. This can be either undertaken by yourself or by us. It must be checked and agreed by both you and your tenant, before being signed and dated.

"What causes condensation?"

As experiences letting agents, this is an issue that we face on a regular basis. Contrary to popular belief, condensation is more often than not cause by lifestyle, rather than a problem with the property. The main reasons it might arise are:

• Too much moisture in the air
• Not enough ventilation

And here are some top tips on how to tackle the problem:

• Open trickle vents and windows
• Use extractor fans
• Dry laundry outside when possible and open a window if drying inside
• Ventilate cupboards and wardrobes and draw back curtains every day.

For more information of condensation and mould why not read our blog post about the causes of mould and condensation.

"How do I assess damage?"

There are four issues to consider when assessing damage at the end of a tenancy:

• Fair wear and tear
• Betterment - in other words, you cannot use your tenant's deposit to replace old and worn items
• Evidence - and this is where a thorough inventory is vital
• Average life space - after all, carpets and furnishings do have a natural 'shelf life'.

Remember that the deposit must by law be protected in one of the various Government backed schemes. We use the Deposit Protection Service and can register the deposit for you.

You may deduct money from the deposit at the end of tenancy to cover damaged or missing items. However, this is subject to strict rules laid down by Government backed deposit protection schemes. In law, the deposit remains the property of the tenant.

As long as you are making reasonable deductions, backed by evidence, then you should be confident in your assessment of damage.

"Who maintains the garden?"

It is up to you to decide who maintains the garden. However it is typically the tenant who is responsible for general maintenance so remember to include images of the garden in the inventory. This is usually covered within the Tenancy Agreement, however you may wish to include and additional clause covering this. You may want to consider:

• Employing a gardener - the cost can often be recouped in the rent.
• Sharing the load with your tenant - you could commit to taking care of trees and shrubs while the tenant looks after the lawn.

At the end of the day, tenants cannot be held responsible if one or more plants die.

"I live overseas, but my property is in the UK. How does this affect the tax I pay?"

If you receive rental income in the UK but you live overseas for more than six months of the year, you are classed as 'non resident'. You are still liable for UK tax, but there can be flexibility in how the tax is paid. if you are in any doubt, seek advice from an accountant.

"Should I obtain Landlord's Insurance?"

Yes we would strongly advise that you obtain Landlord's Insurance. Various companies offer very good deals and we would recommend that you shop around to find the best that suits your needs.

"What makes a good investment property?"

That is the million dollar question! Follow these top tips to give yourself the best chance of bagging a good investment property:

• Do your homework and research the market thoroughly
• Ensure your property will produce a steady income stream
• Understand the running costs of owning a rental property
• Do the maths! Be confident that you could cover any mortgage payments if the property becomes vacant.

And one final point! Consider appointing a good buying and letting agent (Bullock and Lees!) to assist you whilst buying and renting your property and to make your life a little easier, why not let us manage the letting of your property? That way you can sit back, relax and let us take care of everything!

About Bullock & Lees - Welcome to our Blog!

From our original office in Christchurch in 1970, Bullock & Lees Homes has been one of the leading INDEPENDENT estate agencies in the area.

From our busy high street offices in Christchurch Road (Bournemouth) and Bargates (Christchurch) we cover all the 'BH' postcode areas but focus especially on Bournemouth, Eastcliff, Boscombe Manor, Southbourne, Boscombe East, Littledown, Tuckton, Wick, West Christchurch, and Christchurch generally through to Mudeford and Highcliffe.

We can also provide a full range of professional services including specialist 'Homebuyer Reports' and 'Building Surveys' and Probate/Executor Valuations.

Whether you are looking to buy, sell, rent or develop a property, make us your first call.

 

 

Our Bournemouth Branch

With seven miles of golden sands and sparkling sea, the vibrant cosmopolitan town of Bournemouth has it all. As one of the UK's most popular living destinations, Bournemouth's historic seaside town really does cater for everyone from stunning cliff top apartments with spectacular sea views and cosmopolitan town centre living, to spacious and well appointed houses, our properties show Bournemouth as its best. For more information on our properties, do pop in to our Bournemouth branch and have a chat with our friendly staff! 

Our Christchurch branch

Christchurch's unique location at the confluence of the rivers Stour and Avon and on the shores of its own spectacular natural harbour makes it the perfect destination to relax and unwind.  Close to the magnificent Dorset World Heritage Coast and the tranquil New Forest National Park, Christchurch is only a short drive from  Bournemouth and Poole.
The diverse mix of fascinating heritage, beautiful coastline and countryside makes Christchurch one of the South's most desirable places to live. For more information on our properties for sale in Christchurch, why not pop into our Christchurch branch and speak to our knowledgeable and dedicated staff!