Renting out a property has been a popular way to make more money, whether you’re a landlord with a portfolio of rental flats and houses, or a homeowner with a spare room suitable for a lodger.
Historically a large proportion of the rental sector has been supplied by “amateur” landlords with one – three buy to let houses. In recent years the government has removed some of the tax advantages seen by private individuals and introduced further legislation designed to improve the standards in the sector; electrical safety checks, minimum EPC standards and the Fitness for Human Habitation Act 2018 to name just a few.
As a result there has been an exodus of landlords from the sector in recent years.
Here’s our beginner’s guide on how to rent out a house, which should help to give you an initial idea of some of the questions you need to ask yourself.
Is the property mortgaged?
If the property is mortgaged you must check with the lender to ensure that they will be happy with this. Unless your mortgage is a specialist buy to let mortgage the terms of your mortgage might forbid you from taking in a lodger for the duration of your loan.
In the worst-case scenario, you could be considered to be in breach of your mortgage terms, and your lender could cancel your mortgage – so be careful.
Do you live in the property?
Are you looking to sub-let part of the property you live in (e.g. by taking in a lodger), or do you want to rent out an entire house while you live somewhere else?
The issues can be a little different – taking on a second property to rent out is a substantial commitment, compared with renting out your spare room.
Again there may be mortgage issues, as you’ll typically need a buy-to-let mortgage on a rental property if you do not live there yourself, and the costs can be higher.
What’s the rental value of your property?
It’s a good idea to get an up-to-date valuation of the rental property before you put it on the market, so that you have a clear indication of where it sits in the market.
While it’s routine to have a property valued before selling or buying it, an RICS rental valuation means you can calculate the rental yield you’ll get when you take on new tenants.
To cover costs and make a profit, it’s normal to seek a rental yield of about 5-7%, although in areas of high demand, or for specific properties in scarce supply, you might reasonably seek a higher yield.
Lettings agents and lettings management
An easy way to rent out a property is to let a professional lettings agent or lettings management agency find a tenant and organise all the paperwork.
If you don’t want to be a phone call away for your tenants, consider working with a full-service lettings management agency, who should handle any repairs and emergencies for an additional fee.
This will eat into your yield slightly, but it can mean a much quieter life.
Buildings and contents insurance
Last but not least, consider comprehensive buildings and contents insurance. You can get specialist landlord insurance policies, designed to cover rental properties.
Make sure you are protected against malicious damage by unruly tenants, or theft at the end of the tenancy.
Finally, consider breakdown cover on items like the boiler, as well as any major kitchen appliances you provide, so you don’t have to cover the full cost of replacement out of pocket if they stop working at short notice.
Get a rental valuation
If you’re looking to rent out your house, speak to the surveying experts at Torus Chartered Surveyors in Altrincham where one of our registered RICS valuers can provide an expert home valuation for your property.
Shared ownership is a form of home ownership which has become more popular in recent years as house price appreciation has outstripped inflation. It is designed to be more affordable and attainable. Instead of owning the entire property (either outright or with a mortgage), you buy a specific percentage of it. You may then be required to rent the remaining percentage from your housing association often at a reduced rate.
Different shared ownership schemes can have different terms. You might never own the remaining shares, or you may have the option to buy all or some of the remaining shares at a later date via “stair casing”. It depends on your shared ownership agreement.
Once you own your share in the property, an RICS Valuation is often required if you wish to purchase more or sell your shares in the property. It is often left to you as the homeowner to source this RICS valuation not the housing association or similar.
It is typical for this valuation to be based 100% market value with no restrictions on resale. RICS Valuers normally need to discount any additional value that may be attributable for the property due to it’s shared ownership nature.
When to get a shared ownership valuation
It is normal for it to be a condition of the lease or shared ownership agreement that an RICS Valuation Report is required whenever you plan to buy or sell shares in your property.
In a fast-moving property market, as any change – up or down – in house prices can significantly affect the value of your and the housing associations shares. It is typical that the valuation must be undertaken within 3 months of your transaction to buy or sell your shares.
Help to Buy equity valuations
Under the Help to Buy equity loan scheme offered by the UK government, many new homes in the UK have been purchased with the aid of a Help to Buy equity loan.
When you want to repay the outstanding equity loan either with cash, re-mortgaging or selling, you’ll typically need a Help to Buy equity valuation by a RICS Registered Valuer.
This estimates the up-to-date market value of your property, from which you can calculate the percentage you still owe.
You can call us on 0161 929 7892 or email info@house-survey.co.uk, or visit our chartered surveyors in Altrincham at Suite 116, 30 The Downs, WA14 2PX.All enquiries are welcome, even if you’re at a very early stage of considering a shared ownership property, and you’ll find all our details on our Contact page.
Moving home can be an exciting yet stressful situation and there are a lot of tasks to do, plans to make, and things to keep track of as the day draws closer.
To help, we’ve created a simple handy moving house checklist of all the things needed to take care of before the big day!
2 months before moving house
Confirm the date of your move with your conveyancers and the house sellers, especially if you find yourself in a chain and need to wait a while for all other transactions to be completed.
Find an RICS chartered surveyor – such as Torus Chartered Surveyors – to conduct a home survey for an expert’s inspection of your new property’s condition.
Inventory your items and decide what you are taking, ensuring that all valuables are covered by your removals company for insurance purposes to avoid any complications.
Start collecting packing material such as different sized boxes and bubble wrap, labelling what to put in each and where your belongings will be placed in every room of your new house.
1 month before moving house
Contact service providers – utilities, banks, HMRC insurance and pension providers, your employer, children’s school, landlord etc. informing them you are leaving and providing a new address to help cancel and rearrange your services as smoothly as possible.
Pack all the non-essential items in the first month before moving house that you can store temporarily in your current home, or look into hiring self storage units if needed. It’s also the perfect chance to de-clutter and clear out anything that isn’t worth keeping.
Order any new furniture, carpets and fittings (including appliances) if you’re looking for an upgrade, with a set out flooring plan to keep you organised.
2 weeks / 1 week before moving house
All important information, possessions and documents are kept in a safe and accessible place, from drivers licenses, passports and house deeds to jewellery, phones and credit cards.
Arrange child / pet care so they can be looked after during the day – make sure to give enough notice to friends and family if they can assist.
Book professional cleaning services if you want to have your new home looking ‘spick and span’ for when you move in. It’s also worth getting a plumber to help with removing any dishwashers and washing machines you plan on taking.
Prepare an essential moving day kit for things you will need on the day and night, such as toiletries, a change of clothes, duvet and bedding, medicine, chargers, and snacks should you get hungry.
Schedule a time to collect the keys to your new home and return the keys back to your landlord or estate agent for your existing property.
The day before moving
Final checks of your current home, ensuring that nothing is left behind and everything is packed up, ready to go for the next day.
Pack an overnight bag for all members of the family, including PJs, toothbrushes, towels, loo & kitchen roll, kettles & mugs for coffee and tea etc.
Gather all keys of your existing home for an easy handover.
Moving House Day
Record your final utility meter readings – water, gas electricity, gas – then turn them off.
Give instructions to the removal company, directing them on which items are fragile and what you are taking in the car so they are not accidentally loaded in the van.
Secure all windows and doors.
Inside your new home
Place boxes and furniture in their allocated rooms, making sure all items are accounted for.
Check all the utilities are up and running, taking a picture of the current readings.
Do a basic run through of the house and garden in case the previous owners left any items, as well as giving the entire property a deep clean before you start to unpack.
Check all keys work for doors and windows.
Sit back, relax and enjoy your new home!
We hope this moving house checklist helps you on your journey to a new home and if you require professional home surveying services in Manchester, get in touch by calling us on 0161 929 7892 or info@house-survey.co.uk and we’ll be happy to assist with your enquiry.
A home valuation provides an estimate of the market value of a property, based on its current condition and any apparent causes for concern.
It is normally defined as:
“The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion”
Because Torus Chartered Surveyors are RICS Registered Valuers, you know the valuation you receive will meet the standards set out by RICS, and this means you can feel much more confident about the findings.
What happens in a RICS home valuation?
A RICS home valuation takes about half an hour for an average-sized property. Larger houses may take longer.
The RICS Registered Valuer will take measurements of the building and the plot on which it stands, make an assessment of the overall condition of the property and take some readings to detect any likely damp problems.
RICS standards no longer require a loft inspection but this can be arranged in advance on request.
A property valuation is not just used for mortgage applications. There’s a long list of other reasons why a home valuation may be useful or mandatory:
When buying a house for cash
When mortgaging or remortgaging
Shared ownership and shared equity
Probate and inheritance tax valuations
Valuations for divorce settlements
Valuations for tax purposes
Retrospective valuations
Help to Buy valuations
Expert Witness Reports.
We provide a fixed-fee Help to Buy valuation survey so you can get an updated market value estimate for your property, if you want to pay back some or all of the equity loan.
Our Help to Buy valuations are guaranteed compliant with Target HCA, so you can have the maximum confidence that our service will meet your needs and provide excellent value.
All enquiries are welcome and if you’re not sure what type of property survey you need, we can help you to decide and make sure you get the kind of valuation and property inspection you need, whatever process you are entering into.
It’s the age old question when it comes to purchasing a house: Do I choose a new build or old build home? Well, that really depends on what you’re looking for in terms of key factors such as style, budget and location.
Some people prefer the quintessential charm and stability of an older existing property, whereas others want a more modern, low maintenance home that’s ready to be moved into.
If you’re still deciding whether a new build or old build home is right for you, we’ve put together a useful list looking at the pros and cons of each to help you find the perfect place to call home.
Pros of a new build house
A blank canvas
One of the main appeals to buying a new build is that you can customise it however you wish, without the need of renovation work.
If you are purchasing off-plan, some house builders will give you the option of choosing your own fittings, furnishings and colour schemes too.
Energy efficient
New build homes are designed to comply with the latest building regulations. This means better insulation for the walls, floors and loft, double-glazed windows and modern appliances are standard to make them as energy efficient as possible.
10 year warranty
Most new homes in the UK come with a 10 year warranty and insurance guarantee – something you don’t get with existing properties.
A warranty may provide cover on any major structural defects or construction issues, from faulty pipes or electrical wiring, to unsealed windows and any issues with the house’s foundations, roofs and ceilings for example.
No housing chain
With a new build property, the buying process is hassle-free as there are no housing chains to hold you back from moving in, so you can unpack and enjoy your new home straight away.
Cons of a new build house
New Build Premium
Like new cars, houses are normally sold with a hefty “new build premium”; this is an element of value which is essentially lost as soon as the house is occupied. A premium of around 10% is quite normal when you compare a brand new house to a very similar one which has been occupied for a few years, (although this figure can alter drastically from development to development).
Delays
Mortgage offers are usually valid for up to six months, however if there are unexpected delays or problems regarding the construction of your new build home, your offer may expire.
This can change the move-in date to be a couple of days or weeks behind schedule. People may also have to find alternative accommodation in the meantime, which will lead to extra costs on rent and storage.
Snagging
Unfortunately, new builds get a bad reputation for a lack of quality. This can be exacerbated during times of high house construction where shortages of skilled trades can result in corners being cut. You may expect snagging issues such as loose tiles, uneven surfaces, scratches to doors and windows, or improper plastering and paintwork.
It’s best to get a snagging survey done before you move in so that the builder can correct any minor or major defects, saving you money in the long-run.
Identical
Finally, more than often, new builds tend to lack character in comparison to older period properties.
This is because developers like to maximise profits by fitting as many houses on one site and ensuring each property is uniformed in the plot space provided, meaning they’re a lot less spacious too.
Pros of an old build house
Unique style
From grand Georgian and Victorian terraced houses, to the charm of a suburban 1930s dwelling, old build houses are rich with history and unique features such as ornate fireplaces, stained glass windows and porches that really makes them stand out to buyers.
Location
It’s all about location, location, location. Modern homes are built on newly developed land that does not have an established neighbourhood, and usually placed on the outskirts of the main town.
Older properties are surrounded by a community of homeowners who have lived in the area for years. They are also nearby important amenities such as shops, schools and public transport, making it easier to commute to work.
Spacious
Typically, older homes were built with spacious rooms, high ceilings and big gardens, which is ideal for growing families and to cater to our modern storage needs.
Cons of an old build house
Renovation & redecoration
When moving into an older existing property, you may want to start renovating or redecorating to make it look and feel more modern, like fitting a new bathroom or kitchen. This is one disadvantage you’ll have to consider regarding your budget.
Less energy efficient
Older houses are commonly less energy efficient than their newer counterparts. Depending on the age of the house and when it was built, there could be a number of reasons – from poorer heating systems which make it harder to heat up an entire house, galvanized pipes that are prone to rusting, a lack of wall insulation or single glazed windows instead of doubled/tripled.
Maintenance costs
As a result, the cost of maintenance and general upkeep is likely to add up, resulting in higher monthly costs and repair work to fix certain features in order for the house to run like a well-oiled machine.
So, whether you decide to buy a new build or old build house, the experts at Torus Chartered Surveyors in Altrincham can help you get the most out of your preferred property.
For advice and more information, please call 0161 929 7892 or email info@house-survey.co.uk. All enquiries are welcome and a friendly member of our team will be happy to answer any questions you may have.
Subsidence affects thousands of properties every year, and could potentially reduce the value of your home if you decide to resell it.
Now it’s more important than ever as new maps from the British Geological Survey (BGS) reveal that climate change is likely to cause an increase in subsidence-related issues for British homes and properties over the next 50 years.
So, how do you spot the signs of subsidence and what should you do if your property has it? Let’s find out!
Subsidence or Settlement?
To put it simply, subsidence occurs when the buildings foundations are not supporting the building’s weight adequately; it can occur when the ground beneath your property gradually collapses or sinks, taking the building’s foundations with it. This causes the building to shift and can cause large subsidence cracks. It would normally require some remedial works such as underpinning to prevent further movement.
Settlement on the other hand occurs due to the natural compaction of the ground normally beneath a newly built house or extension and generally stabilises after some minor movement. This can also cause subsidence cracks, but is more minor in nature and not serious. Normally no remedial works are required.
The causes of subsidence
Leaking drains: Water from drains or gutters, especially after heavy rain fall can wash away the soil, leaving the ground saturated underneath your property and eventually causing it to subside.
Soil shrinkage: Dry, warm weather is one of the most common causes of subsidence. As the groundwater evaporates, porous clay soils are prone to shrink, crack and shift, leading to structural movement.
Tree roots: Trees may look harmless enough, but they can influence subsidence in a couple of ways. Firstly, they are able to extract valuable water from the soil, drying it out. And secondly, if trees are growing nearby, its roots can destabilise the ground and make your foundations uneven.
How to spot the interior signs of subsidence
Visible evidence of subsidence can be found on both the exterior and interior of a home. Here’s how to spot the warning signs of subsidence.
Cracks in the walls
These are the most obvious tell-tale signs of subsidence and they’re not hard to miss. Of course, you’ll get the occasional small hairline cracks in newer built properties or plastered walls, which is perfectly normal.
But if it’s wider than a 5mm, appears to be bigger at the top, and starts at the ground this can be a sign.
Sticking windows and doors
Jammed or sticking windows and doors are found in most properties but can on occasion be a sign of subsidence. If the frames appear to be warped, difficult to use, or surrounded by large gaps and cracks then this can also be a sign of subsidence.
Rippling wallpaper
Finally, does your wallpaper look rippled / crinkled at the wall and ceiling joints, but it isn’t caused by damp? Then it could be subsidence. One effective way to check is seeing if mildew, discolouration or condensation is present or not.
What should I do if my house shows signs of subsidence?
Don’t panic, most buildings do move around and normally minor cracks and movement are nothing to worry about however it is sensible to seek out a professional to help identify and diagnose the issue.
