Author: Sophie Pollard

There Are Several Reasons Why The Process Of Exchanging Contracts Could Be Held Up

The process of selling your property can be a stressful one, especially if you’re worried about the date completion being delayed. There are several reasons why the process of exchanging contracts could be held up, but the good news is that many of those are avoidable. Our team of experts at MyHaus property have some advice to help prevent any delays from arising during your sale.

What Can Delay Exchanging Contracts?

The exchange of contracts is a key step in all property transactions as it’s the point which everything becomes legally binding. It can be an arduous process to get there and all transactions are different, and there are lots of variables that come into play. Here are some common reasons for delayed completions.

1. Searches, Queries, And Communication

If one of the search results hasn’t yet arrived, the contract exchanging will be halted until it turns up. Unanswered queries are another cause of delays. Both the seller and buyer’s solicitors ask questions of the other party, and the exchange of contracts can only proceed after they receive an answer. If one of the solicitors is slow or unresponsive, further delays can occur.

Any of the parties involved in the property sale could cause a hold-up if they’re slow in responding to information requests or documentation. But you can speed up the process as much as possible at your end by answering any questions promptly, reading, signing, and returning paperwork quickly, and keeping in touch regularly with your solicitor and estate agent.

2. Issues With The Chain

Most property sales involve a chain, and if there is a problem anywhere along its links, every sale and purchase will be held up. For example, if a buyer’s mortgage lender finds something dishonest or untoward about the applicant or property, they can stop the process by withdrawing an offer.

Unfortunately, in some cases, a buyer may also develop cold feet, bringing a halt to the process. Using the services of a reliable estate agent like MyHaus property is the best way to prevent this, as your agent will communicate with the buyer to find out what their issue is and to offer solutions that will get the chain moving again.

3. Market Conditions

Sometimes, conditions in the property market will affect the length of time you need to wait until completion can happen. If the market is overwhelmed with a lot of sales and purchases, searches will take longer to be returned, and estate agents and solicitors may experience backlogs. Although this only happens rarely, it can be a frustrating cause of delays.

4. Gazundering And Gazumping  

Although the practices of gazundering and gazumping are frowned upon, they still exist in the property market. Until contracts are exchanged, these practices are entirely legal, albeit unethical.

How To Minimise Completion Delays

Although there is little that you can do to prevent delays further down the property chain, choosing the right team of professionals is the best way to avoid issues. Our team of passionate negotiators at MyHaus property are highly experienced and always work with your best interests at the fore making us a solid choice to handle your sale.

Get in touch today at info@myhausbrighton.co.uk or on 01273 286788 to find out more.

If you’re selling a property in Brighton & Hove you may have heard about Capital Gains Tax and may be wondering whether or not you’re liable to pay it. As experts in property, our team at MyHaus are on hand to give you all the guidance and information you need.

Capital Gains Tax – An Overview

Capital Gains Tax (or CGT) is taxation on the profits if you sell an asset that has grown in value. This definition can be confusing, so here’s an example of how it works.

If you bought a property for £400,000 and then sold it for £450,000, the profit you have made is £50,000. That means you would need to pay CGT on the £50,000 profit, not on the full sale price of £450,000.

Do All Property Sales Incur CGT?

Not every property sale is liable for Capital Gains Tax. If the property you’re selling is your primary residence, you’ll automatically have eligibility for Private Residence Relief so long as:

• You’ve lived in the property as your primary home throughout the entire period you’ve owned it.
• Part of it hasn’t been let out (this doesn’t include having lodgers).
• No part of the property has been used exclusively for business purposes.
• Its grounds are under 5000sqm.
• The property wasn’t purchased solely to make gains.

For these reasons, most sellers won’t be liable for CGT.

When Must CGT Be Paid When Selling A Property?

If you’re selling a second home, you’ll usually need to pay CGT.

You’ll also usually be liable for Capital Gains Tax if you’re selling a buy-to-let home.

If you inherit a property, you won’t need to pay any Capital Gains Tax until you decide to sell it, and if you’re gifting property to your civil partner, spouse, or a registered charity, no CGT is usually owed.

How Do I Calculate Capital Gains Tax?

To calculate the amount of CGT you owe, you need to subtract the price you paid for your property from its selling price to work out the profit. The government website has a handy online calculator that you can enter this figure into to determine the amount you need to pay, but there are some considerations to take into account first, since they could affect how much you owe overall:

• The Capital Gains Allowance.
• Your share of a jointly owned property.
• Allowed deductions such as estate agent and solicitors’ fees and home improvements.
• Tax relief.
• Special circumstances such as compulsory purchase.

We always recommend you consult a Capital Gains Tax professional who will be able to answer questions relating to your individual circumstances.

Selling Your Home

If you’re ready to sell a property in Brighton & Hove, whether it’s your primary residence, a buy-to-let property that you own, or a second home, get in touch with us here at MyHaus. We can help you with all your selling needs, and as experts you can count on us to offer you an exceptional level of service. Give us a call today on 01273 286788.

Data circulating the property industry provides a clear message – landlords don’t like tenants keeping a pet.

With only 7%[1] of UK rentals advertising themselves as pet-friendly, we think there’s a lot of missed opportunities from landlords sticking with the ‘no pets allowed’ policy.

In this article, we’ll explore what the UK law is on tenants keeping pets, what the benefits of being pet-friendly are for landlords and share our advice on how to safely allow your tenants to keep a pet.

What is the Law on Letting With Pets?

Ultimately, it’s the landlord’s decision as to whether a tenant can keep a pet in their property.

However, the UK government encourages more landlords to allow pet-friendly renting through the Model Tenancy Agreement. This is the government’s recommendation for what a good shorthold tenancy agreement should look like.

This contains two crucial elements about pets in rentals, including:

• Landlords shouldn’t have a blanket ‘no pets allowed’ policy and;
• Landlords should consider any request from a tenant seriously and only decline for good reason

Should I Let Tenants Keep a Pet?

While there can be risks associated with a tenant having pets (like them damaging the property or causing a nuisance to neighbours), there are benefits, too.

By allowing tenants to keep pets and advertising your property as pet-friendly, you can:

• Attract better tenants in the future
• Sign longer leases (which can mean less chance of voids)
• Stand out from the crowd
• Keep existing tenants happy

How to Safely Let Your Property as Pet-Friendly

1.   Ask for Records

Depending on the animal, you may want to check that it’s up to date on its vaccinations. An owner that stays on top of vaccinations is a good sign that they are responsible. Plus, it can reassure you that the animal is healthy and protected from diseases.

2.   Check Training

If your tenant is requesting to keep a hamster, cat or reptile, checking training records isn’t important. But if your tenant wants to keep a dog in your property, make sure you ask about their training. Ask questions like who trained them and how much training they’ve had.

3.   Arrange a Meet and Greet

If you’re concerned about how well behaved your tenants’ pet is, arrange a meet and greet to see what they are like in person. Or ask for a video call with the pet.

This is a great opportunity to see just how well trained they are (which is particularly important if it’s a dog) and assess how comfortable you are letting the animal stay.

4.   Set Boundaries

Before agreeing, consider setting boundaries around the tenant keeping a pet. For example, you are allowing them to have this pet only and any new ones need prior approval.

5.   Agree Terms

Whatever you decide to agree about letting your tenants keep a pet, make sure it’s documented in the terms of your lease.

Include information about what boundaries you set and what responsibilities the tenant has when it comes to cleaning up after the pet.

Conclusion

Allowing your tenants to keep a pet is ultimately your decision as a landlord. Numerous benefits are available to landlords if they allow pets, but you still need to ensure you’re always protecting yourself and your property.

For more advice on letting your property, our friendly team of agents at MyHaus are happy to help. If you need advice about renting your Brighton, Hove property, get in touch today on 01273 286788.

Whether you want to invest in property or save for retirement, there are plenty of pros and cons for each. If you’re unsure what’s best for you, this guide should help to give you a few handy tips to fit your circumstances.

Property – The Pros

If you find the right property then you could have a fixed income for life. Rental yields can be as high as 8% in some cities, and demand for rental properties is very high, especially in cities.

With demand often outstripping supply, there’s no reason why your property can’t remain permanently occupied if it’s in the right location.

Another advantage of a property vs a pension is that you can cash in at any time.

Of course, a property sale can take many months, and if you need the money by a certain point then you’ll need to plan ahead, but a property can essentially free up a large amount of cash relatively quickly.

Property is also generally considered to be a solid long-term investment. Although the market can fluctuate, house prices tend to go up over the long-term, so unless you’re in a position where you need to sell quickly and potentially make a loss, you can ride out any storms in the housing market to ensure that you sell for a tidy profit if and when you need to cash in

Property – The Cons

Owning a buy-to-let property isn’t as simple as buying a place, renting it out and watching the money roll in.

Although rental income can be quite lucrative, there are often lots of additional factors to consider, such as maintenance costs, letting agent fees, and landlord insurance, which can all eat away at your profit.

Void periods are another consideration you’ll need to think about, particularly if you’ve got a mortgage on the property, as a few months without tenants can quickly lead to significant extra costs.

Changes in government legislation in recent years have also made owning a second property far less profitable than it once was, with increased taxes affecting profit margins for landlords.

You should also bear in mind that being a landlord can be quite a hands-on role, even if you employ a letting agent or property management company to look after the property. Ultimately, things like repairs and maintenance costs will fall on your shoulders, and a lot of would-be landlords are surprised by the level of responsibility that comes with owning a buy-to-let.

Pensions – The Pros

Compared with property, a pension is usually a far more hands-off way to grow an investment. In many cases it’s as simple as putting money into a pension pot each month and watching it grow, and especially if you have a financial adviser that you can trust to manage your affairs.

After all, there are no tenants or maintenance repairs to think about when you compare it to a buy-to-let property for example.

Another major plus point for pensions is the fact they attract tax relief. So instead of seeing lots of your investment go into the government’s pocket, you’ll actually be benefiting personally, with pensions being the most efficient investments from a tax perspective.

Pensions – The Cons

The main downside to a pension is that you can’t access any of the money until you’re at least 55. However, as it’s an investment for your retirement, this shouldn’t be an issue, and in some ways, this can be a blessing, as it stops you from pulling the money out on a whim.

Another possible downside to a pension is the fact it’s invested in stocks and shares, meaning it could fluctuate. However, as with property, it tends to go up over time, and you have the option to decrease your risk if you wish to.

The Verdict

Ultimately, it comes down to personal circumstances to determine what’s right for you.

When it comes to tax benefits, pensions are the clear winner as they attract tax relief, whereas landlords have been hit with ever-increasing tax bills in recent years.

However, when it comes to growth, property fares better than pensions, with house prices reaching record highs in recently, especially in certain parts of the UK.

As with any investment, there’s risk involved with both options, and while property can be more lucrative if you find the right place, it’s also widely considered to be the more risky of the two options.

If you’re unsure how to invest your capital then it’s always a good idea to consult a financial adviser.

Have questions about investing in property or becoming a landlord?

MyHaus are your local property experts for the Brighton, Hove area, Call us on 01273 286788 or email info@myhausbrighton.co.uk to find out more about investing in Brighton, Hove.