Archives September 2022

Things change, and when we talk about mortgage terms, most of us are looking at at least a 15- to 30-year commitment. You can’t say for sure that you won’t have to move within that time frame. So, the answer to whether or not you can sell a house with a mortgage probably won’t come as much of a surprise.

Can I Sell A House With A Mortgage Before The Term Ends?

Yes, you definitely can sell a house with a mortgage before the term ends, as long as you can pay for it. This means that the amount you still owe on the loan must be less than what your home is worth. On top of that, you’ll also need to think about any charges for paying off the loan early and any fees you may have to pay to brokers or financial advisors you hire.

As always, it’s very important to do the maths before getting involved. Find your mortgage terms and see if you are still in a period where there are fees for paying off the loan early. Also, find out how much it will cost to pay off your mortgage in full. Keep in mind that this is different from the annual early repayment allowance that lenders give customers who want to overpay their mortgage. This is usually around 10% of the remaining balance each year.

If you are still within the terms of a deal, you may have to pay a fee of 3 to 5% of the amount you still owe to settle up in full.

Do I Need To Let My Lender Know?

Yes, without a doubt. Obviously, you won’t need to do this until you’re sure you want to sell your house with a mortgage, but this is still a call you need to make. Not only will they need to know that a sale may be coming up, but it will also give you a chance to talk about your options, like moving your mortgage (more on this in a bit).

What Happens To My Mortgage?

Most of the time, the money from your sale will be used to pay off (redeem) the loan and any fees you may have owed for paying it off early.

Your conveyancer will ask your mortgage company for a redemption statement and handle the settlement for you. This will end the mortgage deal, giving you the freedom to live without a mortgage or get a new one with the same lender or a different one.

But this isn’t the only way to do it. For some, it makes more sense to keep the mortgage they already have.

Can I Move My Existing Mortgage?

Yes, you can. This is called “porting.” Even though it doesn’t happen as often as redemption, it’s not that rare. Most mortgages can be moved from one house to another when selling a house with a mortgage, and if the conditions are right, you could save a lot of money by doing this.

Porting a mortgage isn’t as easy as just giving your lender a quick call and asking them to change your address. In reality, the process for porting a mortgage is very similar to the process for getting a new mortgage or switching lenders. You will have to reapply and have your finances reevaluated before being accepted. Your new home will also be given an appraisal (which you may have to pay for).

If you are accepted, however, you will keep the same terms as your current deal, including the interest rate you pay now. This can be a good idea, especially when times are uncertain or when interest rates are going up.

Have you ever thought about adding an extension on to your house? It’s one of those investments that makes sense no matter where you are in the process of owning a home. If you just bought a house, it can help you pay off your mortgage faster or help you sell another house faster. Read on to find out more.

More Floor Space

When purchasing a home, you first consider the house and the value it offers. Making a decision is simple if a home has plenty of space, proper insulation, and a new kitchen. The value of the outside area at the back of the house isn’t taken into account by everyone, though.

Although you spend most of your time in the house, the land it is built on has far higher value, so why not use the property to expand your family’s living space and make the house easier to sell? This is one of the main advantages of adding an extension.

Added Property Value

The property’s value rising is one of the additional primary justifications for adding an extension. Greater demand results in higher asking prices for houses with more square footage. One of the simplest methods to boost market value and more floor area is to install an extension.

Bespoke Designs

Custom designs for extensions let you pick out things like doors, windows, insulation, and more, making the process feel more like a DIY endeavour. This is crucial when building an addition onto a house so that the two spaces look cohesive.

If you decide to go with a prefabricated addition, you and the architect will plan out the details in advance. Your approval of the final product will be required before the plans are finalised. 

More Functionality

Adding an extension can serve a variety of purposes, from providing a peaceful place to work during the day to a lively gathering spot for friends and family after dark. The use of an addition is not limited to work or play; it can also be for reading, cooking, relaxing, and the like.

It’s not possible to make full use of the garden in colder areas, so adding an extension to the house is a great way to make the most of the garden and expand the home’s living space. You can kick up your feet and enjoy the changing of the seasons during the cooler months.

Recently, there has been a big change in the way people think about the environment and about how they’re living on this planet. The concept of a self-sustaining home, while not the norm as yet, is certainly becoming more popular because of this. And the idea of living ‘off-grid’ is something that many people are starting to consider. Although there will be plenty of challenges associated with this kind of lifestyle, the long-term positives do outweigh the negatives.

One thing that you would need to consider, of course, is the cost of creating a self-sustaining home. Read on to find out more about what this would cost you and how you can off-set those costs in the end.

Cost Of Land And Building

Assuming you want to buy a property from scratch for your self-sustaining home, you will need some land to build it on, and this will be the first cost to consider. How much you spend will depend entirely on how much land you need to buy and where you need to buy it – the same size piece of land up in the Scottish Highlands is going to cost a fraction of the cost of buying in the Kent countryside, for example. When you have a budget in mind, the best thing to do is to speak to a land expert who can source you the ideal plot.

Once you have the land, you’ll then need to build the property. Again, this will differ from place to place, but on average the cost of a self-build in the UK comes in at around £1,750 per square metre.

Cost To Run

A self-sustaining home is going to save you money in the long-term due to its sustainability factor – that’s one of the big benefits of building this kind of property in the first place, as well as the fact that it will help the planet hugely. However, that doesn’t mean that there won’t be other things to pay out for, at least initially.

Energy bills still need to be paid out until the house becomes entirely self-sustaining. It can take anything from months to years to become completely self-sufficient, so be aware that you might still need to ‘import’ electricity and water until you have enough for yourself. The same goes for your food. Don’t worry though; your vegan diet doesn’t have to wait until you are growing your own food; you can even buy vegan pizzas these days so you can start earlier if you want to.

Plus, you’ll need to spend money to ensure that the house is self-sustaining in the first place. This might mean installing solar panels or digging a well or creating a vegetable garden – or all of the above, plus more. Many people choose to take out a short term loan to cover these initial costs, knowing that the money they save overall will help them to pay it back more quickly.

Conclusion

There’s no doubt that building a self-sustaining home is going to cost you money. From the land to the labour costs and materials to the fact that the self-sustainability doesn’t happen overnight, you could be spending many hundreds of thousands of pounds. Yet when you consider that you would have spent the same on a normal house but that normal house wouldn’t be good for the planet and wouldn’t eventually pay you back and allow you to live off-grid, you’ll see that it’s money well-spent.

Do you plan to invest in rental property? If that’s the case, you’re definitely not alone. It’s no secret that buying a rental property and managing it can be a lucrative business venture, so it’s no surprise that so many people are eager to get into it. However, finding a rental home and giving over your cash is not as easy as it sounds. Many factors should be thought through before making such a substantial investment. In this article, we’ll share some useful information that will make it easier for you to invest in a rental property. 

Get A Good Mortgage When Buying A Rental Property

The importance of securing a decent mortgage cannot be overstated when buying a rental property. If you need a loan to buy the house, this is of paramount importance. All mortgages are not the same, and there are several to choose from. You should look around and get a few quotes before deciding.

In addition, you should check your financial situation to ensure that you can comfortably pay the mortgage. This is especially important if you intend to be a hands-off landlord and instead work with a property management firm. Keep in mind that even though you will be receiving rent each month, you are still responsible for paying the mortgage each month.

Think About The Location

Location is an important factor to consider when investing in a rental property. After all, getting tenants is why you buy a rental property in the first place. Your property’s location is a major factor in determining whether or not renters will be interested in it. Tenants may be hard to come by and keep if you don’t fix these problems.

As a result, it is crucial to give careful consideration to the location of the rental property before making a final decision. Think about accessibility to public transit and nearby schools as well as the safety of the immediate area. It is easier to locate (and keep) tenants when you’re in a more desirable location.

Be Prepared For Unexpected Expenses

An further crucial consideration is the fact that when buying a rental property, unanticipated costs can and will arise. As a landlord, you’ll inevitably face situations like this. As a landlord, you risk losing money due to a variety of factors, such as maintenance and vacancy.

It’s crucial to have a contingency fund in case of such unforeseen costs. One strategy for doing this is to put money aside on a regular basis. You won’t have to take money from your emergency fund or any of your other sources of income to address any unforeseen costs that may arise.

The team at Looksy Inventories joins the nation and commonwealth in mourning the death of Her Majesty Queen Elizabeth II.

It’s likely not news to you that a viewing is a crucial part of selling your home.  You can select a trustworthy estate or letting agent, but if they don’t conduct a viewing in a professional, educational, and enriching manner, you’re not going to get an offer, no matter how nice your home is.

A successful showing will highlight your home’s best qualities and encourage potential buyers to visualise themselves in your space. Here, we provide the most effective strategies for making your home more appealing to potential buyers and increasing the likelihood that they will make an offer before they leave.

How To Prepare Your House For A Viewing

Before you conduct a viewing, give your house a thorough cleaning and make sure everything is in working order. At this point, you should be thinking about your potential buyers and how they could envision living in your property. Keep reading to find out more. 

Give Your House Some Kerb Appeal

In the real estate market, the first impression is crucial. This is why you need to conduct a great viewing. Most buyers will have multiple houses scheduled for viewings and may have already viewed several before they see yours, making it difficult, if not impossible, to sway their opinion if they aren’t impressed upon first glance.

Make your house more presentable by cleaning up the outside. Consider this question: what will a viewer observe right away? Take the time to maintain your front garden by cutting the grass and trimming the bushes. Keep the driveway free of litter, and put your rubbish bins somewhere out of the way. You should clean the windows and maybe repaint the front door (just remember to steer clear of particularly garish colours).

Think About Your Pets

You can’t expect potential buyers to share your enthusiasm for beloved pets. Give your home a thorough airing and vacuum up any loose hairs from the carpets, rugs, and soft furniture before you conduct a viewing. The smell of a wet dog or litter tray is not going to make a favourable impression. Since you’ve probably grown accustomed to your pet’s aroma, a friend or neighbour with a more objective nose could be of great assistance here. If your pet gets overly excited when meeting new people, consider having someone else take care of it during the viewing.

Show Off Your Floor Space

British homes are increasingly smaller despite the popularity of open floor plans and light, airy interiors. Among British residences constructed after 1930, LABC Warranty found that the largest dwellings were constructed in the 1970s. Sizing has decreased since then. While newer homes have smaller living rooms than those built in the 1970s by around a third, the average number of bedrooms has decreased to just under three from 3.6 in the 1980s.

If your home is modern and on the smaller side, you may want to give the impression of more room than there actually is when you conduct a viewing. Make the most of the extra square footage your older home has to offer. You can accomplish either of these aims by getting rid of unnecessary items and old furniture, but don’t just stuff everything into the loft or the garage; viewers should want to look there if they are serious. 

Provide As Much Information As Possible

There will be a set of questions ready and waiting for each potential purchaser. Your estate agent will have less time to accomplish the crucial business of selling your house if they have to spend the entire viewing answering these queries. Therefore, give as much information as possible in advance of the viewing. Is off-street parking possible on your property? Do you know if there are any authentic era details? How wonderful is the garden, if there is one? However, don’t be too dismissive of problems either (we’ll go into this more later).

Be Honest

Earlier, we mentioned that you shouldn’t feel pressured to cover up any imperfections you could find in your house. Caveat emptor (“buyer beware”) has traditionally applied to sales of residential property, however deceiving potential buyers is exceedingly unlikely to result in a sale.

If you’re worried that the truth about your home might scare off potential buyers, the best thing you can do is make sure your estate agent or viewing expert knows everything there is to know about it. Pretending that everything is well with the neighbours when you’re actually in the middle of a heated disagreement over the fence or the volume of your music might seem like a small thing to embellish. The truth always emerges in these cases, and if you’ve already sold the house by then, the buyer will likely try to get some kind of compensation from you.

Leave It To The Experts

You could be tempted to conduct viewings yourself – after all, who knows your property better than you? We recommend, however, that you have an expert conduct a viewing instead. This could be your estate agent, but if they aren’t able to attend a viewing or you want to have a little more control – or you’ve opted for a less expensive package that means you conduct the viewings yourself – Looksy can be there for you. Since giving tours of homes is our day-to-day work, we are in the ideal position to point out the most noteworthy features, address any queries, and determine whether or not the prospective buyer is interested. Get in touch today if you want to know more.

Furthermore, potential buyers may not feel at ease touring a home with the current residents present, increasing the likelihood that they will be too polite to raise pertinent questions and thus delay making an offer. Keep in mind, maybe most crucially, that anyone viewing your home should feel like they could actually live there. That might be hard with the current owners there. 

Whether you’re buying or selling, the process can be very demanding. That’s why you shouldn’t go through it by yourself. It’s often best if you can use an estate agent to get you through the process from beginning to end. Hiring an estate agent can help you in many ways; read on to find out more. 

You Learn More When You Use An Estate Agent

If you’ve never bought or sold a house before, it can be hard to figure out what to do. You might make a mistake that keeps you from getting the house of your dreams. If you are trying to sell your home but don’t do the right things, it could sit on the market for months. A good estate agent will explain the process to you so that you can buy or sell your home as easily as possible. In other words, you’ll learn more when you use an estate agent.

They’ll Do The Negotiating

People know that estate agents are good at making deals. Your estate agent can help you get the best price for your home when you sell it. If you want to buy a house, they might be able to help you make a deal with the seller. This means that you might be able to buy a house without spending all your money when you are working with an estate agent. 

They’ll Point Out Problems

If you are trying to buy or sell a home, you may run into many red flags. Things like problems with the roof, mould, and bugs need to be fixed before you move in. When you hire an estate agent, they can take care of all of these problems for you.

Also, if you want to sell your home, your estate agent will make sure it is in good condition. Your home’s value can also go up if you fix the problems.

They’ll Handle The Paperwork

No matter if you are buying or selling a home, you will have to fill out a lot of paperwork. When buying or selling, it’s important to pay attention to the little things. Your estate agent will go over all of the paperwork and contracts with you to make sure you understand everything. They will also check that the contract’s terms and conditions are fair.

To help you buy and sell property, you need to have an estate agent. They can teach you how it works. They can also help you negotiate to get more money or a good deal. Your estate agent will be able to see warning signs that you might miss. They can also help you fill out the paperwork you need to sign.