Category: Real Estate

Why Use A Mortgage Broker?

February 26, 2024 / Kristen Porter

Are you thinking about buying your first home? Congratulations on taking this big step! Becoming a homeowner is exciting, but finding the right mortgage can be overwhelming, especially if you’re new to the process.

The complexity of navigating through the different mortgage options available can be daunting, particularly for first-time buyers. This is where engaging the services of a mortgage broker can be a useful strategy.

So, why use a mortgage broker? Let us delve into the number of reasons why entrusting your mortgage journey to a broker can yield significant benefits, particularly for those who have zero experience and are about to take their first steps onto the property ladder.

Expertise in the Mortgage Market:

Mortgage brokers are seasoned professionals with comprehensive knowledge of the mortgage market. It’s their job to stay abreast of the latest trends, rates, and lender policies. This expertise enables them to match you with the most suitable mortgage product tailored to your unique financial circumstances and homeownership goals.

Professional Connections:

Mortgage brokers often collaborate with a network of professionals involved in the home-buying process, including real estate agents, appraisers, and attorneys. Leveraging these professional connections, brokers can facilitate a smoother and more cohesive homebuying experience. Whether it’s coordinating with your real estate agent to ensure seamless communication or recommending reputable service providers, brokers enhance the overall efficiency and effectiveness of your homebuying journey.

Access to Multiple Lenders:

Unlike traditional banks or lenders, mortgage brokers have access to a wide network of lending institutions. This extensive network includes banks, credit unions, and private lenders. By leveraging these connections, brokers can scout the market to find competitive rates and favourable terms that may not be readily available to individual borrowers.

Customised Mortgage Solutions:

Every homebuyer’s financial situation is unique, and one size certainly doesn’t fit all when it comes to mortgages. Mortgage brokers analyse your financial profile, including income, credit history, and down payment capabilities, to tailor a mortgage solution that aligns with your specific needs and preferences. Whether you’re aiming for a fixed-rate mortgage, adjustable-rate mortgage, or specialised loan program, a broker can guide you toward the most suitable option.

Streamlined Application Process:

Applying for a mortgage involves mountains of paperwork and numerous complexities. Mortgage brokers streamline this process by handling the paperwork on your behalf. From gathering necessary documents to liaising with lenders, brokers manage the entire application process efficiently, saving you time and minimising stress.

Negotiation Power:

Securing the best mortgage deal involves negotiation, and this is where mortgage brokers truly shine. Armed with market insights and negotiation skills, brokers advocate on your behalf to secure favourable terms, including lower interest rates, reduced fees, and flexible repayment options. Their ability to negotiate can potentially save you thousands of dollars over the life of your mortgage.

Time and Stress Savings:

The home-buying process is multifaceted and time-consuming, requiring extensive research, paperwork, and coordination with various parties. By enlisting the services of a mortgage broker, you offload much of the legwork and administrative burden onto a skilled professional. This not only saves you time but also alleviates stress and anxiety associated with navigating the complexities of the mortgage process independently. With a broker handling the details, you can focus on other aspects of the homebuying journey with peace of mind.

Personalised Guidance and Support:

Buying your first home is a monumental milestone, but it can also be intimidating. Mortgage brokers provide invaluable guidance and support at every stage of the home-buying process. From explaining complex mortgage terms to offering advice on improving your credit score, brokers serve as trusted advisors, ensuring you feel empowered and informed throughout your homeownership journey.

Objective Advice:

While lenders prioritise their own financial interests, mortgage brokers are committed to serving your best interests. They provide objective advice without any bias toward specific lenders or products. This impartiality ensures that you receive unbiased recommendations that are solely focused on helping you achieve your homeownership goals.

Continued Support Beyond Closing:

The relationship with your mortgage broker doesn’t end once you’ve closed on your new home. Brokers offer ongoing support and guidance, addressing any questions or concerns you may have even after the ink has dried on your mortgage documents. Whether you’re considering refinancing, upgrading to a new home, or exploring investment properties, your broker remains a valuable resource every step of the way.

Conclusion

In conclusion, the decision to use a mortgage broker is a wise choice, particularly for first-time buyers embarking on the exciting journey of homeownership. From their expertise in the mortgage market to their personalised guidance and negotiation prowess, brokers play a pivotal role in simplifying the mortgage process and securing the best possible terms for their clients. So, if you’re ready to take the plunge into homeownership, enlist the expertise of a mortgage broker and take the first step on your homebuying journey with confidence.

Conveyancing: How Much Does It Cost?

December 1, 2022 / Kristen Porter

Conveyancing refers to the process of ownership transfer in legal terms. You can view it as an administrative process that we all need to go through before buying a house.

Looking for a good conveyancer such as MyConveyancingSpecialist is very important in getting your conveyancing fees justified. They will be able to handle stuff such as negotiating with your mortgage lender

Structure of Conveyancing Fees

So before asking exactly how much will these conveyancing fees cost, we will need to understand the structure of it. These conveyancing fees will be the amount you pay to ensure that a house sale is handled appropriately in a legal context.

The fees can be structured into 2 parts, which are:

Legal Fees: These are the service charges by the conveyancer or conveyancing solicitor

Disbursement Fees: These are charges by other companies for handling work scopes beyond the conveyancer or conveyancing solicitor. Eg. land registry fees, and search fees.

How Much Should I Pay?

The conveyancing fees for buying and selling are a little bit different, however here are the average conveyancing fees for both buying and selling:

Buying: An average price of £1,000 to £1,500

Selling: An Average price of £600 to £800

The fees stated above are including conveyancing fees and disbursement fees, excluding stamp duty land tax. The fees are also only applicable to freehold property.

For leasehold properties, there will be other charges such as a leasehold property supplement fee or an unregistered property supplement fee. Just add around £150 to £400 extra on top of that.

Legal Fees

The legal fees will have minor fluctuations due to a few reasons such as :

Leasehold property Or Freehold property
Service Location
Property purchase price
Online or Offline
Are you hiring conveyancers or conveyancing solicitors

Fixed Fee Conveyancing Service

These factors will affect the prices of the conveyancing fees, that’s why there are fixed-fee conveyancing services nowadays. Fixed fee conveyancing services refer to a fixed price on all the services provided without any hidden cost.

When Should I Pay The Fees?

In many cases, conveyancing solicitors will require you to pay conveyancing fees upfront. It depends on different conveyancing firms.

They require an upfront payment as they all cover the cost of the disbursements to conduct searches, checks, and many more.

The remaining balance will be paid by

Why Are Leasehold Properties More Expensive?

Don’t be shocked when you see a higher bill for your leasehold property. Conveyancing fees for leasehold properties tend to be more expensive because there are additional costs to the conveyancing process such as

Deed of Covenant (binds the agreement between landlord and buyer legally)
Leasehold Management Company
Notice Of Assignment or Notice of Transfer

As the prices vary, they can range from £300 to £1000 more.

No Sale No Fee Conveyancing

As the name states, if you don’t get the sale, you don’t pay conveyancing fees. This is one of the marketing tactics used by conveyancing firms.

However, make sure to know the terms and conditions before engaging these conveyancers. Some of them might just waive the legal fees instead of the whole amount. Get a clear explanation and understanding before fully committing to the conveyancing costs

What Are The Cost Of Disbursement?

There are many types of different disbursements, especially if you are buying a leasehold property.

Money Laundering Regulations Checks – £6 – £20
Bank transfer fees – £15 -£30
Transferring Equity – £200 – £300
Local Authority Search – £250 – £450
Fraud Checks – £12 est
Land Registry – Up to £1000
Stamp Duty Land Tax – £2,000 – £2,500
Estate Agency Fees – Depends

Conclusion

There are many conveyancers out there that are ready for your service, but please keep in mind to choose the right one for you such as MyConveyancingSpecialist.

Why buy a property to rent out, rather than live in it?

August 1, 2022 / Martina Teruzzi

When you have money to invest, there are a few things you should consider before putting your money into any one particular investment.

What to do before investing?

First, you need to think about your goals. What are you hoping to achieve by investing your money? Are you trying to grow your wealth over the long term, or are you looking for more immediate returns? Depending on your answer, different types of investments may be more suitable for you.

For example, if you’re looking for long-term growth, investing in stocks or mutual funds might be a good option. Alternatively, if you’re hoping to make a quick profit, investing in real estate or other physical assets might be a better choice.

Once you’ve clarity on your goals, you can start to research different types of investments and figure out which one is right for you. With so many options available, it’s important to take the time to learn about each one before making any decisions. With a bit of careful planning and research, you can ensure that your money is working hard for you and helping you to achieve your financial goals.

The investing in the real estate business

When it comes to investing in the real estate business, there are many factors to consider, because this business is a lot more complicated than just buying and selling property.

Many different factors need to be considered in order to be successful in this industry.

For starters, the real estate market is notoriously cyclical, so timing is everything. You also need to have a keen eye for identifying undervalued properties, as well as the capital and the ability to finance a purchase.

But if you do your homework and invest wisely, the rewards can be substantial. Not only can you make a healthy profit on the sale of a property, but you can also enjoy the appreciation of your investment over time. And with the right property, you can even generate rental income that can provide a valuable supplement to your income.

Additionally, it is important to be able to effectively negotiate deals with buyers and sellers. This includes being able to come to an agreement on price, as well as other terms and conditions.

Finally, it is also important to have a good network of contacts within the real estate industry. This can help you find the best deals on property and also get access to information that you would not otherwise have.

So, if you’re looking for an investment that has the potential to provide both immediate and long-term rewards, real estate should definitely be on your radar.

Benefits of investing in the real estate business

The real estate business offers several benefits for investors.

First, it is a relatively stable industry. Even during economic downturns, the real estate business typically does not experience the same level of volatility as other industries. This stability can provide investors with a degree of security and peace of mind.

Second, it offers significant potential for return on investment. In many cases, investors are able to generate significant profits by investing in the real estate business.

Finally, it provides investors with a tangible asset that can be used as collateral for loans or other purposes. This collateral can provide investors with access to capital that they may not otherwise have.

Buying a house to rent out

For all of these reasons, the real estate business can be an attractive option for potential investors that are drawn to the idea of becoming a rental property owner.

However, there are many things to consider.

First, you will need to have a clear understanding of the rental market in your area. This includes knowing what type of rental properties are in demand and what rental rates you can expect to charge.

Additionally, you will need to create a business plan and budget for your rental property. This will help you track your income and expenses so that you can make a profit.

Moreover, it is important to consult with a real estate attorney to make sure that you’re in compliance with all local, state, and federal laws.

Finally, you need to decide if you want to be an absentee owner or if you want to be involved in the day-to-day management of the property.

Absentee owner

It is an individual who owns a property but does not live on or near the property.

Absentee owners are typically investors who purchase property to generate income from rent or resale value. In some cases, they may also be individuals who inherit property but do not have the desire or means to live on the inherited land.

Regardless of the reason for their absenteeism, absentee owners often struggle to maintain their properties in a manner that meets the needs of their tenants or renters.

As a result, absentee ownership can often lead to absentee landlords, which can create several problems for both tenants and communities.

Day-to-day management of the property

Day-to-day management of the property includes tasks like mowing the lawn, trimming the hedges, and cleaning the gutters. These tasks are important to keep the property looking its best and prevent any problems from developing.

In addition, day-to-day management also involves keeping an eye on the condition of the property and performing small repairs as necessary. By taking care of the property on a day-to-day basis, you can help to ensure that it remains in good condition for years to come.

Tips for becoming a successful rental property owner

Rental property owners can be a great way to generate income and build long-term wealth. However, it’s important to understand the responsibilities of being a rental property owner before taking on this type of investment.

Here are a few things to consider if you’re thinking about becoming a rental property owner:

Do your research: it’s important to educate yourself on the ins and outs of rental property ownership before making any decisions. This includes understanding the financial commitments involved, as well as the legal obligations you’ll be taking on.
Find the right property: not all properties are created equal when it comes to the rental potential. It’s important to find a property in a desirable location that will attract quality tenants.
Screen tenants carefully: as a rental property owner, you’ll be responsible for who lives in your rental unit. Be sure to screen tenants carefully to ensure they’re reliable and will take good care of your property.
Stay up-to-date on repairs and maintenance: rental properties require regular upkeep to remain in good condition. As a rental property owner, it will be your responsibility to stay on top of repairs and scheduled maintenance tasks.

A few perks to becoming a landlord

Being a landlord comes with a lot of perks.

You are your own boss

You set the rules and regulations for your rental property, and you have the final say in who lives there.

Passive income source

Being a landlord can be a great way to generate income. If you own a rental property, you can charge rent to tenants and use that money to cover the mortgage, taxes, and other expenses associated with owning a home.

Build equity in your property

As your tenants make monthly rent payments, you will slowly but surely build up equity in your home, which can be beneficial if you ever decide to sell.

Ability to control your living situation

As a landlord, you can choose your tenants and set rules for how your property is used. This can provide you with a sense of security and peace of mind.

Form lasting relationships

Being a landlord gives you the chance to meet new people. Many landlords develop close bonds with their tenants and even become friends.

Personally satisfying

It can be gratifying to provide housing for others and to know that you are playing a role in meeting the community’s needs.

Conclusion

Unlike renters, who can be forced to move at the whim of their landlord, landlords have the security of knowing that their property is theirs to keep.

As a result, if you’re looking for a way to make some extra money, meet new people, to have a greater sense of control and stability in your life, becoming a landlord might be the perfect option for you.

How does conveyancing work in practise

December 22, 2021 / Kristen Porter

Conveyancing Process

Conveyancing fees vary depending on which method you choose. Online conveyancing typically costs less than using a solicitor, but it’s important to read the small print carefully as some online services may charge extra for things like valuation reports. If online conveyancing is not available in your area, using a solicitor will usually cost more but you’ll have the added security of having a professional on hand if anything goes wrong.

Once both parties have signed the contract and paid their deposits, the conveyancing process can get underway. There are four main steps: exchange of contracts, research on property rights, completion of transaction, and registration of transfer deeds.

At this stage, both buyer and seller must agree to sell and buy respectively under what conditions do they need to complete sale/purchase between themselves / through an agent online via online portals such as ZILLOW or Property Guru or offline with help from a solicitor.

Online conveyancing

Online conveyancing has increased in popularity as it is normally cheaper and has a greater degree of transparency. The good online conveyancers will provide full online case tracking so you can see the stage you are at.

Due to the global pandemic, many conveyancing firms have moved more processes online, which has increased competition in this area. Online conveyancers such as My conveyancing Specialist have been set up to provide high-quality conveyancing services which can provide you with a quote in seconds of entering the property details.

The online system will then provide online documentation to both parties and can be printed online via online portals such as ZILLOW or Property Guru or offline with help from a solicitor.

At this stage, the legal process of transferring ownership is not complete until all relevant information about property rights has been checked thoroughly. This includes checking things like planning permission and sewerage access for the next 20 years, to ensure that there are no unexpected surprises down the line.

Once your contract has been accepted by the seller and you’ve made your offer and paid your deposit, it’s time to get ready for completion day – when you officially take ownership of the property. This is a key stage in the conveyancing process, and it’s important to make sure that everything goes smoothly so that you can move into your new home as soon as possible.

Completion

Completion usually takes place at the offices of a solicitor, and you’ll need to provide ids such as a passport or driving license. You’ll also need to hand over the balance of your purchase price (less any deposits already paid) and sign the transfer deeds. Your solicitor will then register the transfer with HM Land Registry, officially transferring ownership of the property to you.

Once all these steps have been completed, you’re ready to move.