Ask the Estate Agent – Details, episodes & analysis

Here are some top tips to help you sell through the competitive festive season.

The interior of the house sells it more than anything, so it is important to get the basic decorating inside the house right.

If you have any garish colours in any rooms, get rid of them and replace with creams and beiges. Bright and striking rooms will attract attention, but they will be far more likely to turn buyers away.

Similarly, get rid of any large pieces of furniture that make the rooms look cluttered. Space sells, and the fewer items you have in the house, the more spacious it will look.

As much as the interior of your house will sell it, getting the marketing right will attract the buyers in the first place – you can’t sell a home if no one comes to see it.

Make sure you get the property online and ensure that it is well described and photographed in order that people can get a good idea of what they are coming to see. The more they know, the more likely they’ll book a viewing.

Dimensions and Floor Plan is a must!

We all know the importance of first impressions when meeting new people, and it is no different when you are selling your house. The first impression people get will be all important to them.

Make sure your garden is clean and tidy and well pruned. Fences should always be painted and in a good state of repair. Anything out of place is a negative in the eyes of buyers, and it is important to minimise these to increase the chances of selling.

As a listener we want your questions to answer. Whatever your worries, concerns or needs are, contact us via our social media channels or our website below and we’ll answer your questions in our future episodes.

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We hope you find this resource useful and that helps to educate as well as dispel any myths or uncertainty around getting on the property ladder or making that next move.

So don’t forget to contact us with any subjects you would like us to cover or questions you would like answering in the coming episodes and until next time I would like to thank you for listening and goodbye for now.

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Dreaming about moving into your new home only to discover you have noisy neighbours, non-stop traffic whizzing past, or next-to-no wi-fi signal? Here's how to do your research…

Whether you are looking for a new home to buy or rent, you’ll want to be sure that it’s a relaxing and enjoyable place to live.

But what if you move in only to discover that you’re living next to the neighbours from hell? Or the incessant noise from the road drives you crazy? Or that there’s planning permission for an industrial project right on your doorstep?

Here we look at the information that a seller or landlord is legally required to give you – as well as the stuff that it is ‘good manners’ for them to pass on to you.

If you are buying your new home, the seller is required to disclose certain pieces of information to you – and if they fail to do so, they could end up in court.

For example, a seller must tell you about a ‘defective title’ if there is no way you could reasonably find out before exchanging contracts. This might, for example, include a right of way across the property that isn’t on the title deeds.

Sellers are also required to fill in a Property Information Form (or TA6) which gives the buyer lots of information that they would otherwise be unable to find out through surveys or the standard searches.

This includes:

•       Information on boundaries – including those between you and your neighbours
•       Details of any disputes or complaints with neighbours
•       Notices of development or planning permission of properties nearby
•       Alterations and building work ever done on the property (including details of planning permissions and building regulations approvals – or the absence of)
•       Information about guarantees and warranties
•       Buildings insurance details
•       Information about environmental matters, such as flooding, energy efficiency and Japanese Knotweed.
•       Details of rights and informal arrangements, such as access or shared use.
•       Information about parking – including whether the property is in a controlled parking zone or local authority parking scheme.

This form is part of the pre-contract documents, so it’s legally binding. This means that you, as the buyer, can make a claim for compensation if the seller deliberately tries to conceal something – even after the sale has gone through.

As part of the conveyancing process, the seller’s solicitor should provide certain additional information to your solicitor.

This includes details such as where the gas and electricity meters and stopcock are located, and what fixtures and fittings will be left as part of the sale.

However, there is certain information the seller’s solicitor is unlikely to provide, such as the strength of the phone signal and what day the bins are emptied. On these matters, the key is to collect the information yourself and don’t be afraid to ask those questions while you can.

If you are renting, there are certain legal obligations on the landlord that can’t be ignored.

This includes the safety of the electricity and gas supplies, fire safety throughout the property, protection of deposit funds, and the landlord’s responsibilities for maintenance and repair.

In addition, there are certain issues which fall under the ‘Consumer Protection Regulations’. These include:

•       Planning activity
•       Off-road parking
•       What furniture and other items are being left and
•       Public rights of way – if a right of way goes through the grounds of the property

These regulations are all-encompassing and require both landlords and agents to tell tenants all ‘material’ information necessary, in order for the tenant to make an informed decision. The law is about what tenants need to know – not what they want to know.

So that concludes this episode of Ask the Estate Agent Podcast. I hope you found this topic useful and highlights a few key areas you should pay particular attention too when searching for your next property.

As ever please do get in touch with your feedback and comments and also let us know about your experiences in negotiating the property market. We would love to hear from you.

You can contact us anytime using the links below:

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Website: www.asktheestateagent.co.uk

So don’t forget to contact us with any subjects you would like us to cover or questions you would like answering in the coming episodes and until next time I would like to thank you for listening and goodbye for now.

This podcast is brought to you by Liberty Gate www.libertygate.co.uk

Nottingham's multi award winning Estate Agency

Source: Zoopla

Hosted on Acast. See acast.com/privacy for more information.

If you're buying a home, you'll want a survey to ensure its bricks and mortar are sturdy and not concealing any nasty defects – but which type should you go for?

Buying a new home is a major financial commitment – probably the biggest you’ll ever make. But how can you determine exactly what it is you are paying for?

The answer is by commissioning a home buyers survey, also known as a property survey.

In simple terms, a home buyers survey is a health check on a property. And if it reveals any problems, it puts you in a position to ask the seller to fix them before you proceed with the purchase.

Alternatively, you may choose to renegotiate the final sale price to account for the cost of fixing them yourself – or you may opt to pull out entirely.

It’s not a legal requirement to have a home buyers survey on a property you are buying. And, at a time when your bank account feels like a bucket with a hole in the bottom, it may seem like an unnecessary expense.

However, a home buyers survey could actually save you money – not to mention a lot of stress – in the long run.

It's a good idea to have a home buyers survey on most types of property, but it's especially important if you're looking to buy a home that's unusual in structure, has a thatched roof or timber frame, is listed, or just very old.

You probably won't need a home buyers survey if you are buying a new-build home, which typically comes with a 10-year NHBC guarantee.

However, you may still want to get a snagging survey done, which checks the property for defects and poor finishings such as wonky guttering and bad paintwork.

Important note! If you are getting a mortgage to buy your home, the lender will carry out a valuation of the property. But this is not a home buyers survey and shouldn’t be treated as one. The sole purpose of the mortgage valuation is to demonstrate to the lender that the property is worth the sale price before it gives you the green light for the mortgage.

It's important to use a surveyor who is a member of a recognised governing body, such as RICS or RPSA, to carry out your home buyers survey.

Bear in mind that home buyers survey quotes vary between surveyors as well as properties, so it’s best to source a number of different ones first.

Professional industry body, RICS offers three types of home buyers survey, which vary in depth of inspection.

What is it? A Condition Report is the most basic survey and usually therefore the cheapest. It will typically take around one to two hours to complete, and a day to return.

What will the property survey do?

• Check the basic condition of the building, services – such as gas and water supply – garage and any other outbuildings. It uses a simple traffic light system which will flag any problems that require attention

• Provide a summary of issues and risks for your solicitor or property lawyer to look in to. For example, bad electrics, ownership of boundaries and planning permission for extensions or other building work.

How much does it cost? Fees are normally based on the purchase price, and start from £300.

When should I get one? A Condition Report is suitable for newer properties and homes that are in a general good state of repair. Get one if you will be happy with just a broad-brush overview of the property’s condition.

What is it? A HomeBuyer Report is a kind of middle ground. It’s more extensive than the Condition Report – and typically costs more too. It is offered either with or without a property valuation.

It typically takes one to two hours to inspect the property and another hour to complete the valuation.

You can expect to receive the HomeBuyer Report within two days.

What will the property survey do? The survey-only HomeBuyer Report will include all of the features of the Condition Report, plus the following:

• More far-reaching inspection. However, like the Condition Report, this will be limited to what the surveyor can actually see – they won’t be lifting up floor boards or moving furniture

• Clear summary of problems that may impact the property's value

• Tailored advice on repairs and maintenance

• List of issues that require closer attention to avoid serious damage or dangerous conditions

• General information on the area, environment and energy efficiency

• Any legal considerations.

What will the property survey do? This version of the HomeBuyer Report comprises the survey, as outlined above, as well as the estimated cost of rebuilding the property, for building insurance purposes, plus the value of the property on the open market.

How much does it cost? Costs will vary according to the value of the property but budget for at least £350 for the survey-only report and £450 for the survey and valuation.

When should I get one? A HomeBuyer Report is suitable for most modern and older homes that are in a reasonable condition. Get one if you have any specific concerns about the purchase, or would just feel better about a more comprehensive survey.

What is it? A Building Survey is the most comprehensive survey – and, of course, the most expensive.

It can take several days to complete (depending on the property) and up to a fortnight to return.

What will the property survey do? The Building Survey will include all the features of a HomeBuyer Report, plus the following:

• Thorough inspection and report on a variety of issues

• Summary of defects (even insignificant ones) and potential problems caused by hidden flaws

• Advice on repair options, their estimated cost and the potential consequences of failing to address them

• Advice and considerations for your solicitor.

How much does it cost? Costs vary according to the value of the property but typically start at £500.

When should I get one? A Building Survey is suitable for large, old, unusual, listed or dilapidated homes. Also, for buildings that are undergoing a change-of-use, such as a barn conversion.

RPSA, a body of independent surveyors, offers three types of home buyers survey, which all include the following:

• Inspection for subsidence, damp, rot, woodworm and other major defects

• Photos to highlight features and areas of concern

• A review of environmental issues impacting the property

• Colour-coded condition ratings to highlight the importance of issues.

How much do they cost? Prices ranges from £400 through to £900, depending on the survey and property.

What is it? This home buyers survey is appropriate for modern or simpler types of property.

What will the property survey do? 

• Review of the condition of the property, highlighting major issues and defects

• At least 20 photos.

What is it? This home survey is suitable for all properties but is often used for older or more unusual properties, or properties where problems are suspected.

What will the property survey do?

• More detailed review of the condition of the property

• Advice on the nature of the repairs necessary, and the anticipated performance of the property in future

• At least 40 photos.

What is it? This format is similar in style to the Mi Home Condition Survey. It is the only survey aimed specifically at buy-to-let property.

What will the property survey do? 

• Add a Decent and Safe Homes (DASH) review of health and safety matters that tenants could raise within the 2019 Homes (Fitness for Habitation) Bill.

What is it? In Scotland, a seller is required – by law – to produce a Home Report pack within nine days of marketing a property.

You might still want to consider getting your own home survey done though, particularly if you have any concerns about the property. And some properties, such as new-build homes, conversions or those purchased through Right to Buy, don’t require a Home Report.

What will the property survey do?

• Survey and property valuation

• Energy Report, including an Energy Performance Certificate

• Property questionnaire covering issues such as council tax and electricity provider.

How much does it cost? Between £585 and £820, according to RICS. But remember that's for the seller to pay. If you are just buying a house in Scotland, a Home Report will not cost you anything.

So hope this helps explain the various survey options available to you and give you some guidance about which one is most suited to your specific circumstances.

So that concludes this episode of Ask the Estate Agent Podcast. You can contact us anytime using the links below:

Facebook: www.facebook.com/asktheestateagent

Instagram: www.instagram.com/asktheestateagent

Twitter: www.twitter.com/asktheEA

Website: www.asktheestateagent.co.uk

So don’t forget to contact us with any subjects you would like us to cover or questions you would like answering in the coming episodes and until next time I would like to thank you for listening and goodbye for now.

This podcast is brought to you by Liberty Gate www.libertygate.co.uk

Nottingham's multi award winning Estate Agency

Source: Zoopla

Hosted on Acast. See acast.com/privacy for more information.

Buying and selling homes in Scotland is slightly different to England and Wales. Here are the main differences and how they work in practice.

In Scotland, once a seller has agreed an offer price on a property, it is taken off the market. In fact, solicitors in Scotland must decline to act for the seller if they later accept an offer from another party – that is, unless the original offer has fallen through.

This means the practice of ‘gazumping' – where a seller goes back on an agreement in favour of a higher bidder – is very rare in Scotland, although it's not theoretically illegal.

In Scotland, solicitor firms are often responsible for marketing properties, rather than estate agents. This is because most residential conveyancing firms in Scotland also have an estate agency department.

Homes in Scotland are either marketed as offers ‘over' a specified price, or at a fixed price. If it's at ‘over' a given price, interested parties will be asked to give sealed bids and timescales of purchase. The highest bidder will win and will be informed on the same day.

If it's at a fixed price (most common when market conditions are challenging or the seller wants a quick sale), the first person to offer the required amount becomes the successful party.

In England and Wales, homes are marketed by estate agents at an ‘advertised price' which is negotiable and are only financially tied in after contracts have been exchanged.

In Scotland, almost all residential properties are required to have a ‘Home Report’ before they can be marketed for sale. The only exceptions to this are new-build homes and buildings that have been recently converted into residential accommodation.

A Home Report contains a survey, a report on the home’s energy efficiency, and a detailed property questionnaire completed by the seller.

By contrast, the only upfront information required in England and Wales to market a home is an energy performance certificate. Once an offer has been accepted the buyer can then choose to organise a survey of the property.

Back in 2007, the Government attempted to replicate the Scottish system with the introduction of Home Information Packs. But, after a disastrous roll-out, the packs were finally scrapped in 2010.

Stamp duty in Scotland was replaced in 2012 by Land and Buildings Transaction Tax (LBTT).

It applies to homes worth more than £145,000, compared to the £125,000 first stamp duty threshold in England.

In Wales, Land Transaction Tax (LTT) applies to properties of £180,000 or more.

First-time buyers in Scotland will only start paying LBTT on homes worth £175,000 or more, whereas in England relief is available on the first £300,000 of the value of all properties up to £500,000.

When a bid has been successful, which is reported on the same day it was made, the buyer's solicitor will confirm their mortgage with the lender, agree an entry date and deal with legal enquiries about the property.

But instead of a single contract, a buyer's solicitor in Scotland will exchange a series of formal letters, known as the missives with the seller's solicitor.

Once the missives are concluded, the deal becomes legally binding and the seller must convey the legal title of the property to the buyer. Failure to do so gives the buyer the right to be released from the contract and claim damages against the seller.

In England and Wales, no legally binding agreement exists until contracts are signed and exchanged so either party can withdraw from sale up to this point.

So that concludes todays episode

Do you think England and Wales should move towards a Scottish system?

You can contact us anytime using the links below:

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So don’t forget to contact us with any subjects you would like us to cover or questions you would like answering in the coming episodes and until next time I would like to thank you for listening and goodbye for now.

This podcast is brought to you by Liberty Gate www.libertygate.co.uk

Nottingham's multi award winning Estate Agency

Source: Zoopla

Hosted on Acast. See acast.com/privacy for more information.

With half the nation worried about a lack of money in retirement, we consider whether equity release presents a viable option.

With almost half of those set to retire this year worried they’ll run out of money in retirement, it’s no wonder people are looking for more ways to increase their income – and sooner rather than later.

It’s a genuine concern. It’s predicted that one in 10 men and one in six women in the UK will be living on less than the recommended minimum income when they retire.

Despite these troubling statistics, it’s thought that the over 50s are sitting on an enormous £2.8 trillion worth of property in the UK.

With this in mind, it’s unsurprising that so many retirees want to unlock some of the cash in their family home to make up for their shortfalls.

Equity release is a popular route, though it’s not right for everyone and there are significant risks involved.

Equity release schemes have a chequered past and still struggle with their reputation.

However modern schemes which follow the guidelines of the Equity Release Council have considerable protections including ‘no negative equity’ guarantees.

If you’re over 55, there are a range of products available for you to release money tied up in your home. The two most common are lifetime mortgages and home reversion plans.

The most common option, and essentially where you borrow a percentage of your property’s value. There will be interest on this loan, but instead of having to pay it each month, it’s usually rolled up (added back on to the amount you have borrowed), and then paid off when the property’s sold. This means that the amount you owe would increase every month.

This is where you sell off a chunk of your home to a home reversion company but continue to live there. This can be expensive, because you’ll only usually get a fraction of the value of the chunk you’re selling, and when the property is sold, the home reversion company takes a percentage of the sale.

If, for example, your house was worth £200,000, and you sold half of it, you might get just £50,000. If the property value then rose to £250,000 when you came to sell it, the home reversion company would take £125,000.

If you can’t bring yourself to downsize, or you’re unwilling to sever the emotional ties with the family home, these schemes could help you free up some cash.

When your inheritance tax bill is eventually calculated, the mortgage and any interest is subtracted from the value of your property.

If you’ve spent the equity or given it away at least seven years before you die, it won’t be counted. So there may be less tax to pay. But remember that tax rules can change and the benefits will depend on your individual circumstances.

In the right circumstances, equity release can work. But for most people, the additional costs outweigh the benefits of your other options, such as downsizing.

The interest being added to a lifetime mortgage can have a big effect on the sum you owe to the equity release company. Even at an interest rate of 3.5%, over 20 years, your debt will double.

This might not be a problem if the value of your house rises faster than the rate your equity release mortgage increases by, but there are never any guarantees.

These costs will impact the value of the inheritance you leave to your loved ones, so talk to those affected before you make a decision. If you’re unsure about a financial decision, you should seek advice.

The money you release could mean you’re no longer entitled to means-tested state benefits like pension credit and council tax benefit. So, you’ll need to know what you stand to lose, as well as gain.

If you go the home reversion route, once you’ve sold a portion of your property, you’re giving up any potential future growth in value on that portion too.

Equity release isn’t necessarily the most affordable choice to release cash, and it’s also not the only option.

It’s not just the financial implications. Being able to stay in the family home may seem like a real bonus to begin with, but could seem like a far less attractive option later.

If you stay in the family home, you will face the ongoing hassle and cost of maintaining and running the property. That might feel perfectly manageable in your 60s and early 70s, but as you get older, you may regret your choice.”

Downsizing to a smaller property or moving to a different location could be a better option for you to help with cash flows.

Seek advice if you’re unsure from your accountant or tax advisor.

So that concludes this episode of Ask the Estate Agent Podcast. You can contact us anytime using the links below:

Facebook: www.facebook.com/asktheestateagent

Instagram: www.instagram.com/asktheestateagent

Twitter: www.twitter.com/asktheEA

Website: www.asktheestateagent.co.uk

So don’t forget to contact us with any subjects you would like us to cover or questions you would like answering in the coming episodes and until next time I would like to thank you for listening and goodbye for now.

This podcast is brought to you by Liberty Gate www.libertygate.co.uk

Nottingham's multi award winning Estate Agency

Source: Zoopla

Hosted on Acast. See acast.com/privacy for more information.

There’s an ever-growing labyrinth of dos and don’ts in the private rented sector. So if you’re a landlord – or considering becoming one – it’s important to stay on top of your legal obligations.

So to help you get started in the right way here are nine top tips for landlords.

First things first. Check with your local council to see if you need a landlord licence to rent out your property. Legislation was introduced in 2006 and some areas have implemented selective licensing to clamp down on rogue landlords.

That means rigorously referencing new tenants to make sure they are reliable. This includes checking their credit eligibility, getting references from their previous landlords and ensuring they have the right to lawfully live and rent in the UK.

You risk a fine or even a jail sentence if you fail to carry out Right to Rent checks in England under the Immigration Acton 2014. However, this may change as Right to Rent has been challenged in the High Court as a breach of human rights so watch this space but remain compliant in the meantime.

You must protect tenants’ deposits safely in a government-accredited scheme within 30 days of receiving it. And once you’ve done that, you’ll need to give your tenant the Deposit Protection certificate and Prescribed Information.

You’ve got a choice of three schemes: Deposit Protection Service (DPS), MyDeposits or the Tenancy Deposit Scheme (TDS).

Since the June 1, 2019 when Tenant Fees Bill landed, the amount of deposit you can take from a tenant is capped at five weeks' rent or six weeks' if the rental costs are more than £50,000 a year.

Make sure your property is up to scratch in terms of its energy performance – and hand a copy of the Energy Performance Certificate (EPC) to your tenant.

As of April 1, 2018, your property must be rated at least ‘E’ in the EPC. If you’re rumbled arranging a new letting without ensuring your property is up to this standard, you may be fined.

In addition, since April 6, 2018, you risk being banned from managing your property. That would mean your local council would take control of your property and collect the rent. But you would still be liable for the mortgage and any other costs, such as maintenance.

You are legally required to have all gas appliances in the property checked by a Gas Safe-registered engineer every year – and provide tenants with a Gas Safety Certificate within 28 days of the annual check.

But that’s not all. Fire alarms should be fitted on every floor of the property from the start, and carbon monoxide detectors must be in any room where solid fuel, such as wood or charcoal, is used. Test both alarms on the first day of the tenancy.

You must make sure that your rental property in England is fit for human habitation. If you fail to comply with standards set out under the Housing Health and Safety Rating System, your tenants can take legal action against you.

It’s not a legal requirement but getting a tenancy agreement drawn up and signed by both you and your tenants is really crucial. Make sure it's an Assured Shorthold Tenancy Agreement as that's the type of contracts that renting rules and legislation applies to.

It’s a good idea to regularly check the state of your property. But you are legally forbidden from entering without the tenant’s permission. It’s best practice to give your tenants 24 to 48 hours’ written notice – and this should be stipulated in your tenancy agreement.

A good insurance policy will cover loss of rent, damage, legal expenses and liabilities.

Remember that most standard building insurers do not provide the protection you’ll need as a landlord so it’s worth hunting around for specialist landlord cover. If you don’t tell your buildings insurer that you’re renting out your property, you risk invalidating your policy.

Think about who your target tenant is – and make sure the property is ready for them. If you are offering your property as a furnished home, make sure it's modern decor with wide appeal. Above all, it must be clean, tidy and safe.

So that concludes this episode of Ask the Estate Agent Podcast. You can contact us anytime using the links below:

Facebook: www.facebook.com/asktheestateagent

Instagram: www.instagram.com/asktheestateagent

Twitter: www.twitter.com/asktheEA

Website: www.asktheestateagent.co.uk

So don’t forget to contact us with any subjects you would like us to cover or questions you would like answering in the coming episodes and until next time I would like to thank you for listening and goodbye for now.

This podcast is brought to you by Liberty Gate www.libertygate.co.uk

Nottingham's multi award winning Estate Agency

Original source: Zoopla

Hosted on Acast. See acast.com/privacy for more information.

The Tenant Fees Act sets out the Government’s approach to banning letting fees for tenants. The key measures of the Act include:

• Tenancy Deposits must not exceed the equivalent of five weeks' rent (unless the annual rent exceeds £50,000 in which case deposits are capped at six weeks’ rent).
• Holding Deposits will be capped at no more than one week’s rent.
• The amount that can be charged for a change to a tenancy will be capped at £50 unless the landlord demonstrates that greater costs were incurred.
• The Consumer Rights Act 2015 is amended to specify that the letting agent transparency requirements should apply to third-party websites.

Alongside rent and deposits, agents and landlords will only be permitted to charge tenants fees associated with:

• A change or early termination of a tenancy when requested by the tenant.
• Utilities, communication services and Council Tax.
• Payments arising from a default by the tenant where they have had to replace keys or a respective security device, or a charge for late rent payment (not exceeding 3% above the bank of England base rate).

A breach of the fees ban will be a civil offence with a financial penalty of up to £5,000.

You can see all the government guidance on the Tenant Fee Act by clicking here.

It's also worth noting that the government released a new updated version of the Right to Rent Guide as well as a new Section 21 Form to factor in changes from the Tenant Fee Act.

Please see links to the updated documents here:

How to Rent Guide

Section 21 Form

So that concludes this episode of Ask the Estate Agent Podcast. You can contact us anytime using the links below:

Facebook: www.facebook.com/asktheestateagent

Instagram: www.instagram.com/asktheestateagent

Twitter: www.twitter.com/asktheEA

Website: www.asktheestateagent.co.uk

So don’t forget to contact us with any subjects you would like us to cover or questions you would like answering in the coming episodes and until next time I would like to thank you for listening and goodbye for now.

This podcast is brought to you by Liberty Gate www.libertygate.co.uk

Nottingham's multi award winning Estate Agency

Hosted on Acast. See acast.com/privacy for more information.

Considering gifting a property to your loved ones? Make sure you understand the financial implications first. Before giving a property to your children, make sure you understand the rules, and any costs involved. Otherwise, what could be a wonderful gesture can leave a bitter financial taste.

There may be a number of reasons you want to hand over your property. You may have another home to live in or be moving into care, or you might want to help your children on to the property ladder.

It may also form part of your estate planning, with the aim of slashing the amount of inheritance tax (IHT) you’re liable for over the long-term.

The good news is that rules state that you can give your property to your children – even if you’re currently living in it. But there are potential costs, and it's important to understand what these are. 

If you gift a property to your child to cut the value of your estate for IHT purposes, this is a so-called ‘potentially exempt transfer’.

If you die within seven years of making the transfer, then the property will be considered as part of your estate value for IHT purposes.

But if you live for seven years or longer, there will be no IHT to pay on the value of the property, and you’ll have managed to reduce the overall value of your estate.

In this case, gifting a property is considered a ‘gift with reservation of benefit’. This means that you keep the right to benefit from the property, ie. live in it, and it will form part of your estate on death. That’s even if you live for more than seven years after gifting the property to your children.

You may be able to get around this particular rule by paying rent to your children, if you want to take your property out of your estate for IHT purposes. But it’s important to seek professional advice, as the rules can be complicated.

If you give a property to your children, the council may consider this a “deliberate deprivation of assets” – or, in other words, a way of avoiding paying for potential care home fees.

The council may think you are trying to hide wealth tied up in your property to avoid paying for care later down the line because whether you are liable to pay for care, depends on the value of your assets.

In this case, the transfer of ownership may be reversed, and you find the property is back in your name.

You will no longer be the legal owner of the property if you sign it over to your children.

There may be issues further down the line, if you regret the decision, or there’s a family dispute.

In theory, you could be asked to leave your own home by your own children, if they want to rent or sell the property. Though, of course, you’d hope this wouldn’t happen.

Also, if your child is married, and you sign over your home, and they then divorce, bear in mind that their ex could have a rightful claim over the property.

There are plenty of scenarios you may want to factor into your decision-making, before giving a property away.

Seek professional advice before gifting a property to children, or anyone else, including on tax and other financial issues that may arise as a result of this.

So that concludes this episode of Ask the Estate Agent Podcast. You can contact us anytime using the links below:

Facebook: www.facebook.com/asktheestateagent

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Website: www.asktheestateagent.co.uk

So don’t forget to contact us with any subjects you would like us to cover or questions you would like answering in the coming episodes and until next time I would like to thank you for listening and goodbye for now.

This podcast is brought to you by Liberty Gate www.libertygate.co.uk

Nottingham's multi award winning Estate Agency

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Landlords are currently responsible for vetting their tenant's legal right to rent in the UK under a Government scheme. Here's how it works.

Right to Rent, a government scheme which makes landlords responsible for checking their tenant has a legal right to rent in the UK, is ‘in breach of the Human Rights Act', according to a recent High Court ruling.

The Home Office has been granted permission to appeal, which could take several months.

As things stand, landlords and lettings agents will need to adhere to Right to Rent rules. So here's a rundown.

Right to Rent is a set of rules which puts the onus on landlords to check their tenant (or lodger) has the legal right to rent in the UK. It was introduced in England by the Government as part of The Immigration Act 2014 to clamp down on illegal migrants.

Right to Rent applies to all tenancies that started on or after 1 February, 2016.

In the Government’s own words, a landlord is someone who, “lets accommodation for use by one or more adults as their only or main home”. If you take in lodgers, sublet an existing rental property or even act on behalf of a landlord, this means you too.

If you use a lettings agent to let your property, Right to Rent checks will be their responsibility. However, this must be agreed with the agent in writing or you could still be held responsible.

Any and every potential tenant aged over 18, regardless of whether they are British and even if they are not named in the tenancy agreement. All tenancy agreements are affected, not just Assured Shorthold Tenancy Agreements (ASTAs).

There are two groups of people that have the right to rent in the UK; those with unlimited right to rent and those with a time-limited right to rent. Here’s the difference:

• Unlimited Right to Rent: This group includes British citizens, EEA (European Economic Area) nationals or Swiss nationals. It also refers to people who have the right of abode in the UK and those that have been granted indefinite leave to remain, or have no time limit on their stay in the UK.

• Time–limited Right to Rent: Anyone who falls outside the above categories will have a time-limited right to rent (so long as they also have valid leave to enter or remain in the UK for a limited period of time. Time-limited right to renters also include people that are permitted to enter or remain in the UK as a result of Acts of Parliament, European Union Treaties and Immigration Regulation

In short, anyone seeking residential accommodation who requires permission to be in the UK – but does not have it. If you find the potential tenant does not have the Right to Rent, you must not offer them accommodation.

By walking through the following Right to Rent checklist:

1. Confirm that the tenants will be using your home as their main residence.
2. Gather original supporting documents from your tenant to verify their identity and their right to rent in the UK. Documents could include a passport or driving licence and birth certificate – and/or, if the tenant is time-limited, a residence card, visa and/or immigration status.

More details around the documents you need, as well as a printable checklist, are available in this Home Office user guide. This Home Office video may also help.

You will need to check all documents are valid in the presence of the tenant.

1. Record the date you made the check and keep all copies of the documents for at least 12 months after the tenancy ends.
2. If the tenant has an ongoing immigration application or appeal, the Home Office will run a free Right to Rent check on your behalf.

If your tenant is categorised as time-limited, you’ll need to make follow-up checks before either:

• Your tenant’s permission to stay in the UK expires
• 12 months has passed since your previous check

If your follow-up check reveals your tenant no longer has the right to rent, you must make a report to the Home Office.

You’ll have to conduct your Right to Rent check within 28 days before the start of a new tenancy. But if it’s being arranged from overseas, you’ll need to carry out the documents before the tenant moves in.

If you are found to be letting your property to someone who does not have the right to rent in the UK – and you are unable to show you carried out the correct checks – you could be fined up to £3,000. Find out more about the penalties for illegal renting here.

The Right to Rent rules only apply to private landlords. Local authorities social housing, care homes, hospitals and hospices for example, will all be exempt. Student accommodation also falls outside the rules as do temporary holiday lets.

However, the Home Office recommends that if your property is being let for three months or longer, this could indicate it’s being used as a main residence, so checks should be carried out regardless.

So that concludes this episode of Ask the Estate Agent Podcast. You can contact us anytime using the links below:

Facebook: www.facebook.com/asktheestateagent

Instagram: www.instagram.com/asktheestateagent

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Website: www.asktheestateagent.co.uk

So don’t forget to contact us with any subjects you would like us to cover or questions you would like answering in the coming episodes and until next time I would like to thank you for listening and goodbye for now.

This podcast is brought to you by Liberty Gate www.libertygate.co.uk

Nottingham's multi award winning Estate Agency

Hosted on Acast. See acast.com/privacy for more information.

Got a spare room and in need of a little extra income? Using the Rent a Room scheme to get a lodger could be worth considering.

Landlords typically get taxed on income they earn from renting property. But under the Government’s Rent a Room scheme, householders could earn an income from letting spare rooms – and receive tax relief on it.

No. Rent a Room is available to both homeowners and tenants with furnished accommodation. If you’re a tenant, you can still sublet spare rooms under Rent a Room, but make sure your own lease agreement permits it first – as many will not.

You can earn a maximum of £7,500 tax-free each year from letting furnished spare rooms. If you let jointly with others, the relief is split.

So, if you arrange with your partner to have a lodger for example, you can earn £3,750 per year from him or her before having to pay tax.

You can top up your rental income by charging for additional services, such as cleaning or laundry. But remember that all income received from letting spare rooms during the tax year will be taken into account under the Rent a Room scheme.

The tax exemption under Rent a Room is available for a room or an entire floor – so long as the accommodation is furnished and within your only or main residential property. So long as you meet the criteria, you can also apply Rent a Room to furnished space in bed and breakfasts and guesthouses.

Rent a Room doesn’t apply if you are renting space, such as an office, but not living there. And you cannot take advantage of the relief if your property has been converted into flats.

If the total income you receive from letting your spare rooms each year is less than the Rent a Room threshold, then your tax relief is automatic. You don’t have to do anything.

But if it’s over the threshold, you must complete a tax return to HMRC. You have two choices here:

Claim your relief on the first £7,500 on your tax return.

Don't sign up to the scheme and instead record your income and expenses on the property pages of your tax return.

There are thought to be 19 million empty bedrooms in homes across England alone, according to Matt Hutchinson, director of flat and house share site, SpareRoom.co.uk and apartment share site, SpareRoom.com in New York.

And freeing up just 5% of these rooms would accommodate almost a million people – equivalent to a city the size of Birmingham.

So that concludes this episode of Ask the Estate Agent Podcast. You can contact us anytime using the links below:

Facebook: www.facebook.com/asktheestateagent

Instagram: www.instagram.com/asktheestateagent

Twitter: www.twitter.com/asktheEA

Website: www.asktheestateagent.co.uk

So don’t forget to contact us with any subjects you would like us to cover or questions you would like answering in the coming episodes and until next time I would like to thank you for listening and goodbye for now.

This podcast is brought to you by Liberty Gate www.libertygate.co.uk

Nottingham's multi award winning Estate Agency

Hosted on Acast. See acast.com/privacy for more information.