As election fever hits the UK, the housing and mortgage markets are still coming to terms with the headline grabbing announcement from the recent budget regarding Stamp Duty reforms. The initial announcement on the raising of Stamp Duty thresholds was one welcomed by industry but not without a certain degree of concern.
The Council of Mortgage Lenders has gone on record saying that it cautiously welcomes the decision but warns of the practical barriers to effective implementation. They say it would be simpler, although more expensive, to make the new threshold applicable to all buyers as opposed to just first-timers.
Although not all areas of the country will benefit equally with southern regions of England – Greater London the South East and South West likely to see the greatest impact, it’s important that we, as an industry, take the positives from such a move. It’s also worth exploring just how buyers can best utilise the savings that will be shaved from the cost of buying their first property.
This cash saving should be used prudently and a good way to do so would be to use a small proportion of this to upgrade from a lender’s mortgage valuation to a level two survey and valuation. This offers far more comprehensive information that is clear to understand and is prepared for the client, rather than the lender. It creates a private contract, which allows the client access to the valuer should they have any questions or want to discuss any issues raised. The report utilises repair categories which explains the condition of the property and indicates the urgency of repairs, allowing better planning and budgeting for any remedial work.
Despite the recent housing market turmoil it is apparent that buying a home remains a monumental purchase at any time of our lives. There are numerous aspects to take into account at each stage of the process. Indeed, despite this being such a big decision – both in terms of cost and lifestyle choice – people can still often be somewhat short-sighted and cut costs and corners when it comes to surveys.
Getting the right type of survey is vital and can provide peace of mind for one of the most important financial decisions most people will undertake during their lifetime. Colleys offers a range of surveys including a level two survey and valuation, which can actually pay for itself, by highlighting essential works, which may allow the purchaser to renegotiate the price. An extra few hundred pounds for the survey may save many thousands in the long run.
To comply with regulatory requirements, the discussion around the range of surveys available must be positioned as a non-advised process at the mortgage application stage. Clients must decide on the level of survey that is most appropriate for them but advising on the pros and cons could ensure real peace of mind going forward for both for the buyer and for you, the broker.
Dominic Morgan, Premier Client Manager at Colleys
