by Saqib Khan | May 7, 2024 | Conveyancing, General, Landlord and Tenant Law, People
Introduction
Buying a home is a significant milestone in one’s life, but it often comes with a hefty price tag. Many aspiring homeowners find it challenging to accumulate a substantial deposit for their dream home. This is where 100% mortgages come into play, offering an alternative path to homeownership. In this blog, we’ll explore the concept of 100% mortgages, how they work, their advantages, disadvantages, and whether they are a viable option for prospective homebuyers.
What Are 100% Mortgages?
A 100% mortgage, as the name suggests, allows you to borrow the entire purchase price of your home without the need to provide a deposit. Traditionally, lenders require borrowers to contribute a deposit, typically ranging from 5% to 20% of the property’s value, to secure a mortgage. However, with a 100% mortgage, you can buy a home with no deposit, which may seem like an attractive proposition, especially for first-time buyers.
How Do 100% Mortgages Work?
- Guarantor Mortgages: One common form of 100% mortgage in the UK is the guarantor mortgage. In this arrangement, a family member, usually a parent, acts as a guarantor for the loan. They offer their property or savings as collateral, ensuring the lender has a safety net in case the borrower defaults on payments.
- Joint Borrower Sole Proprietor Mortgages: Another option is the joint borrower sole proprietor mortgage. In this scenario, a family member joins the mortgage application with the borrower, typically to increase the borrower’s income and improve their affordability. However, the co-borrower does not have any ownership rights to the property.
- Specialist Lenders: Some specialist lenders offer 100% mortgages, but they often come with higher interest rates and stricter terms compared to traditional mortgages. These lenders may also require additional collateral or charge higher fees.
Advantages of 100% Mortgages
- No Deposit Required: The most significant advantage of a 100% mortgage is that it allows buyers to enter the property market without having to save for a deposit, which can take years.
- Access to the Property Market: It provides an opportunity for first-time buyers and those with limited savings to get on the property ladder sooner rather than later.
- Family Assistance: It enables families to support their children or relatives in purchasing their first home by acting as guarantors or co-borrowers.
Disadvantages of 100% Mortgages
- Higher Interest Rates: 100% mortgages often come with higher interest rates compared to traditional mortgages, which can lead to higher overall costs over the life of the loan.
- Limited Lender Options: Not all lenders offer 100% mortgages, and those that do may have stricter eligibility criteria.
- Risk to Guarantors: In guarantor mortgages, the guarantor’s property or savings are at risk if the borrower defaults, potentially putting their financial stability in jeopardy.
- Less Competitive Terms: Borrowers with a larger deposit typically receive better interest rates and more favourable mortgage terms.
Are 100% Mortgages a Viable Option?
While 100% mortgages can be a lifeline for some aspiring homeowners, they are not without risks and limitations. It’s crucial to carefully consider your financial situation and long-term goals before opting for a 100% mortgage. Here are some key factors to consider:
- Affordability: Can you comfortably make the mortgage payments, including interest, insurance, and property taxes, without straining your finances?
- Future Financial Stability: Assess your job security and future income prospects. A sudden change in circumstances could make it challenging to meet mortgage obligations.
- Alternatives: Explore other homeownership schemes and government-backed initiatives like Help to Buy, Shared Ownership, or the First Homes scheme, which might offer more favorable terms.
- Seek Professional Advice: Consult with a mortgage advisor or financial expert to assess your suitability for a 100% mortgage and explore all available options.
Conclusion
100% mortgages can be a valuable tool for prospective homebuyers who lack the funds for a traditional deposit. However, they come with their own set of challenges and risks. It’s essential to thoroughly research and consider your financial situation, long-term goals, and available alternatives before committing to a 100% mortgage. Make informed decisions to ensure that home ownership is a rewarding and sustainable journey for you and your family.
Whilst we cannot offer mortgage advice, please call our property department with any other concerns you may have on 0161 850 9911.
by Saqib Khan | Apr 11, 2024 | Conveyancing, Landlord and Tenant Law
Introduction
The question of whether purchasers or tenants can demand that pets be allowed to live with them in their flats is a topic that has sparked heated discussions and legal debates for quite some time. While the UK is known for its love of animals, it’s also a nation with a significant number of people living in flats or apartments, where pet policies can vary greatly. In this blog, we’ll explore the rights and responsibilities of both property owners and renters when it comes to keeping pets in flats.
Understanding the Landlord-Tenant Dynamic
Before diving into the specifics of pet policies, it’s crucial to understand the legal relationship between landlords and tenants. Landlords have a legal right to set the terms and conditions of their rental agreements, which can include pet policies. Conversely, tenants have rights as well, including the right to a quiet and peaceful enjoyment of their rented property.
Pet Policies in Rental Agreements
The inclusion of pet policies in rental agreements is a common practice. Landlords have the right to impose restrictions on whether pets are allowed in their flats. These restrictions can range from a complete ban on pets to more lenient policies that specify the types and sizes of pets that are permitted.
However, it’s important to note that since January 2021, the UK government has amended its model tenancy agreement to make it easier for renters with pets to find suitable accommodation. These changes encourage landlords to consider allowing pets in their properties, provided that tenants meet certain criteria and agree to adhere to responsible pet ownership guidelines.
Reasonable Pet Policies
A reasonable pet policy should strike a balance between the rights of landlords to protect their property and the rights of tenants to enjoy the companionship of their pets. A reasonable pet policy might include the following considerations:
- Pet Deposit: Landlords can ask for an additional security deposit to cover potential damages caused by pets. This deposit should be refundable if no damage occurs.
- Pet References: Tenants may be asked to provide references from previous landlords or neighbours to vouch for their responsible pet ownership.
- Pet Size and Breed Restrictions: Some landlords may have size or breed restrictions on the pets they allow in their flats.
- Responsible Ownership: Tenants should agree to clean up after their pets, prevent excessive noise, and ensure that their pets do not cause a nuisance to neighbours.
- Pet Clauses: Specific pet-related clauses should be added to the tenancy agreement, outlining the rights and responsibilities of both parties regarding pets.
Challenging a No-Pet Policy
If a flat has a strict “no-pets” policy, tenants do have some options to challenge it:
- Negotiate: Tenants can try to negotiate with the landlord to allow a pet, especially if they have a well-behaved animal and are willing to comply with any reasonable conditions.
- Check Local Laws: In some cases, local housing laws may override a “no-pets” policy, so it’s essential to research the specific regulations in your area.
- Appeal to a Tribunal: If all else fails, tenants can appeal to a tribunal or court to challenge an unreasonable “no-pets” policy, especially if they believe it infringes on their rights to quiet enjoyment and a family life.
Conclusion
The issue of whether purchasers or tenants can demand pets be allowed to live with them in their flats involves a delicate balance between the rights and responsibilities of landlords and tenants. While landlords have the right to set pet policies, recent changes in tenancy agreements encourage a more lenient approach, making it easier for responsible pet owners to find suitable accommodation. Communication, negotiation, and awareness of local laws are key factors in resolving any disputes regarding pet policies in flats. Ultimately, finding a middle ground that respects the interests of both landlords and tenants can lead to more harmonious living environments for everyone involved.
by Saqib Khan | Apr 9, 2024 | Conveyancing, Landlord and Tenant Law
The most recent ruling from the Upper Tribunal offers valuable insights into the application of the Building Safety Act 2022 concerning recoverable service charges. Specifically, it pertains to instances where there’s a request to bypass the section 20 consultation procedure for urgent major works.
Usually, if a freeholder landlord plans works that will cost a leaseholder more than £250, they must adhere to the consultation process outlined in section 20 of the Landlord and Tenant Act 1985 (LTA 1985). However, there’s an exception for urgent works, particularly those related to occupant safety, allowing landlords to apply to the First-tier Tribunal (FtT) for dispensation from the formalities. This exception now includes urgent works under the Building Safety Act 2022 (BSA 2022).
In the case of Adriatic Land 5 Ltd v Long Leaseholders at Hippersley Point [2023] UKUT 271 (LC), the landlord sought dispensation for urgent safety repairs at Hippersley Point. While unconditional dispensation was granted, a condition under section 20C restricted the recovery of application costs from service charges. Despite the landlord’s appeal and subsequent review, the First-tier Tribunal upheld this condition through a costs order, essentially preventing the recovery of application costs via service charges.
The appeal in the Upper Tribunal centered on two key points:
- Whether the FtT had the authority to impose a costs condition concerning service charges.
- The relevance of Paragraph 9 of Schedule 8 to the BSA 2022, which had just come into effect before the review decision.
The Upper Tribunal ruled that the FtT had erred in its decision by imposing the costs order without input from the involved parties. Furthermore, it emphasized that Paragraph 9 of Schedule 8 in the BSA 2022 outlined that leaseholders aren’t liable for service charge costs related to legal or professional services incurred due to relevant defects after June 28, 2022. This provision protects leaseholders from incurring costs for dispensation applications related to building safety works under the BSA 2022.
Essentially, this ruling signifies a shift in the liability for service charge costs incurred after June 28, 2022, exempting qualifying leaseholders from these expenses. It’s a critical consideration for landlords undertaking urgent property works, as it establishes a cut off for recoverable legal costs from service charges post-June 28, 2022.
If you have any concerns regarding the above, please feel free to contact our property department.
by Saqib Khan | Apr 1, 2024 | Conveyancing, General, Litigation
In recent years, the UK has witnessed a surge in the construction of new homes, promising modernity, comfort, and sustainability. However, amidst this housing boom, a concerning trend has emerged – the increasing prevalence of poor quality in new build properties. From structural defects to inadequate insulation, homeowners are facing a myriad of issues that undermine the very essence of homeownership – security and peace of mind.
At Khan Mather, we believe in advocating for the rights of homeowners and ensuring that they receive the quality they deserve. In this blog post, we delve into the root causes of the problem, its implications, and the legal avenues available to those affected.
Understanding the Causes
The reasons behind the decline in the quality of new build homes are multifaceted. One major factor is the pressure to meet high housing demand, leading to rushed construction schedules and cost-cutting measures by developers. Inadequate oversight and regulation exacerbate the problem, allowing substandard workmanship to go unchecked.
Moreover, the complexity of modern building techniques and materials has created challenges for both builders and inspectors, increasing the likelihood of errors slipping through the cracks.
Implications of Poor Quality New Build Homes for Homeowners
The consequences of purchasing a defective new build home can be devastating. Structural issues, dampness, and poor insulation not only compromise the safety and comfort of residents but also diminish the value of the property. In many cases, homeowners find themselves facing hefty repair bills, legal disputes with developers, and prolonged periods of uncertainty.
Beyond the financial implications, living in a defective property can take a toll on one’s physical and mental well-being, causing stress, frustration, and a sense of insecurity.
Legal Recourse
Fortunately, homeowners are not without recourse when faced with the ordeal of a poorly constructed home. Various legal avenues exist to hold developers accountable and seek redress for damages incurred.
One option is to pursue a claim under the Consumer Rights Act 2015, which provides protection for buyers against goods that are not of satisfactory quality or fit for purpose. Additionally, homeowners may have recourse through the NHBC Buildmark warranty or other structural insurance policies, which cover certain defects within a specified time frame.
Alternatively, if the defects are severe and widespread, homeowners may consider collective legal action, such as a group litigation order, to pool resources and strengthen their case against the developer.
Our Commitment
At Khan Mather, we are committed to standing by homeowners who have been affected by the scourge of poor quality new build homes. Our experienced team of solicitors specializes in construction law and will tirelessly advocate for your rights, guiding you through every step of the legal process with compassion and expertise.
If you find yourself grappling with the distressing reality of a defective new build property, don’t hesitate to reach out to us on 0161 850 9911. Together, we can work towards achieving the justice and resolution you deserve.
by Saqib Khan | Mar 26, 2024 | Conveyancing, Landlord and Tenant Law, Litigation
Introduction
Leasehold property ownership has long been a common way to own a home, especially in urban areas. However, many leaseholders face challenges and uncertainties when it comes to properties built using the Rapidly Applied Affordable Construction (RAAC) method. RAAC is a construction technique that was popular for its speed and cost-effectiveness but has since raised concerns due to issues related to building quality and safety. In this blog, we will discuss what leaseholders can do if their property was built using RAAC and what steps they can take to address potential issues.
Understanding RAAC Construction
RAAC construction is characterized by its rapid assembly of pre-fabricated components, often using lightweight materials. While this approach can deliver homes quickly and at a lower cost, it has also been associated with certain problems such as structural defects, inadequate insulation, and issues with fire safety.
Challenges for Leaseholders
Leaseholders of RAAC properties may face several challenges, including:
- Structural Concerns: RAAC properties may be more susceptible to structural issues, such as cracks in walls, due to the construction method. These issues can be costly to repair and may impact the property’s value.
- Fire Safety: Some RAAC properties have been found to have inadequate fire safety measures, which can pose significant risks to residents.
- Energy Efficiency: RAAC properties may not meet modern energy efficiency standards, resulting in higher energy bills for leaseholders.
- Warranty Issues: RAAC builders and developers may no longer be in business, making it difficult to claim on warranties for defects.
Steps for Leaseholders
If you are a leaseholder of an RAAC property, there are several steps you can take to address these challenges:
- Review Your Lease Agreement: Start by carefully reviewing your lease agreement to understand your rights and responsibilities as a leaseholder. Pay attention to any clauses related to maintenance and repairs.
- Join a Leaseholder Association: Consider joining or forming a leaseholder association with fellow residents. This can provide collective bargaining power and support in dealing with property-related issues.
- Seek Legal Advice: If you encounter structural defects, fire safety concerns, or other issues, consult one of our solicitors who specializes in property law. We can help you understand your legal options and potential claims against developers or builders.
- Engage with Local Authorities: Contact your local council and fire authority to report any concerns about fire safety or building quality. They may conduct inspections and take action if necessary.
- Energy Efficiency Improvements: Investigate energy-efficient upgrades that can improve the performance of your RAAC property. This may include better insulation, efficient heating systems, and double-glazed windows.
- Explore the Building Safety Act: Stay informed about developments in building safety legislation, such as the Building Safety Act. This legislation aims to improve building safety standards and may provide additional protections for leaseholders of RAAC properties.
- Consider Leasehold Reform: Keep an eye on proposed leasehold reform initiatives, which could change the legal framework for leasehold properties. These reforms may offer solutions for leaseholders facing RAAC-related challenges.
Conclusion
Leaseholders of RAAC properties face unique challenges related to building quality, safety, and energy efficiency. However, by understanding their rights, seeking legal advice, and engaging with local authorities and community organizations, leaseholders can take steps to address these issues. It is essential for leaseholders to stay informed about changes in legislation and actively advocate for their rights and the safety of their homes.
Please call us with any concerns you may have on 0161 850 9911.
by Saqib Khan | Mar 19, 2024 | Conveyancing
Buying your first property is an exciting milestone in life, but it can also be a complex and daunting process. As a trusted UK law firm, we understand that our clients often have many questions and concerns when it comes to purchasing their first home. In this blog post, we aim to provide guidance on what to consider when buying your first property in the UK.
- Budgeting Wisely
Before diving into the property market, it’s crucial to establish a realistic budget. Take into account your savings, income, and any potential financial assistance, such as loans or gifts from family members. Remember that the purchase price is just one part of the financial equation. You’ll also need to budget for legal fees, survey costs, stamp duty (if applicable), and ongoing expenses like mortgage payments, insurance, and maintenance.
- Location, Location, Location
The old adage holds true in property hunting. The location of your new home can significantly affect your lifestyle, commute, and property value. Consider factors like proximity to work, schools, public transport, amenities, and the local community. Think about your long-term plans and how the location aligns with them.
- Property Type and Size
Determine the type and size of property that suits your needs. Are you looking for a one-bedroom flat, a family house, or an investment property? Think about your current living situation and how it may evolve over time. Will you need space for a growing family or anticipate downsizing in the future?
- New Build vs. Older Property
Each has its advantages and drawbacks. New builds often come with modern amenities and energy-efficient features but may lack character. Older properties can have unique charm but may require more maintenance and renovations. Consider your preferences, budget, and any potential renovation costs.
- Property Condition
When viewing potential properties, pay attention to their condition. Are there any visible issues or signs of neglect? It’s wise to hire a qualified surveyor to inspect the property thoroughly. Their report can help you make an informed decision and negotiate the price if necessary.
- Legal Matters
Engaging a solicitor or conveyancer is a crucial step in the property-buying process. They will handle the legal aspects, including property searches, contracts, and the transfer of ownership. Ensure you choose a reputable firm with experience in property transactions to guide you through the legal complexities.
- Financing Options
Explore your financing options, such as mortgages and government schemes like Help to Buy or Shared Ownership. Different lenders offer various mortgage products, so compare interest rates, terms, and fees to find the best fit for your financial situation.
- Additional Costs
In addition to the purchase price, be prepared for other costs like stamp duty land tax (SDLT) or land transaction tax (LTT), depending on the property’s location and value. Your solicitor will help you calculate and pay these fees.
- Chain Issues
Property transactions in the UK often involve chains of buyers and sellers. Be prepared for potential delays or complications in the process, especially if you are in a long chain. Communicate openly with your solicitor and estate agent to navigate any issues that arise.
- Future Planning
Consider the long-term implications of your property purchase. Are you planning to live in the property indefinitely, or is it an investment for the future? Think about your exit strategy and how the property fits into your overall financial goals.
Purchasing your first property is a significant life event, and it’s natural to have questions and concerns. At our law firm, we’re here to guide you through the process, ensure your interests are protected, and make your property journey as smooth as possible.
If you’re considering buying your first property in the UK, please don’t hesitate to contact our experienced team of solicitors and conveyancers. We’re here to help you navigate the legal intricacies and provide you with the support and advice you need to make informed decisions throughout your property purchase journey.
