Vendors

How do I maximise my property’s value?
Every property and marketplace is different and should be treated as such. It is always best that you seek professional advice before carrying out any works as this can also bring down the value of your property. The easiest, and often cheapest, answer is to ‘de-clutter’. There are companies around that will store furniture during marketing and sale and will then arrange for delivery to your new address once everything is done and dusted (ask staff about the ‘myspacemaker’ service). What you can do is, of course, limited by your budget but anything from a fresh coat of paint to a complete overhaul can make a huge difference. Some agents often recommend that properties are a ‘blank canvass’- this is a safe option but, if you truly want to achieve the best price, it is usually best to stylise your property. It is better to have 3 people absolutely love your property than 10 people just like it!

Why do the agents’ appraisals of my property vary so much?

The easiest way to win an instruction in property is to over-value it. Money is an easy way to trick Vendors into instructing an agent but remember- just because an agent tells you a price doesn’t mean they will get it for you. Research the market yourself before the agents attend or, in hindsight, research their valuations and see what is available- visit the major property portals such as www.findaproperty.com or www.rightmove.co.uk as well as sold price sites like www.nethouseprices.co.uk. Be honest with yourself- whilst an extra £50K might sound nice, is it realistic? Equally however, don’t be fooled into down-valuing your property for a quick and easy sale. If you are in no particular rush you can afford to test the market at a slightly higher price and move on from there.

How do I choose an agent?

There are several factors to consider- advertising, professionalism, reputation, regulation, fees…….in reality, however, the best way is to choose an agent you actually like. This is a long journey and you want to know you have picked an agent you can communicate well with. Cheap fees are always tempting but, like with anything in life, you get what you pay for. If you are only prepared to pay peanuts, don’t complain when you get monkeys! Regulated agents are always advised as they are bound by ‘codes of practise’ to ensure you are dealt with professionally. We would recommend you only ever use a regulated agent- to start try: www.naea.co.uk or www.oea.co.uk

I want to change/instruct other agents- what do I do?

Before you do anything- check your current agreement. Most agents will have a minimum term which you cannot break. Also, be careful- if you instruct a ‘Sole Agent’ and then instruct another estate agent without the necessary notice you could end up paying 2 companies if your property gets sold.

How do I choose a solicitor/conveyancer?

Much like choosing an agent this can be a truly difficult process. There are so many to choose from and their fees will vary enormously. If you do not have a specific lawyer in mind it is often best to ask the agent handling the sale of your property. Most agents will have established relationships over the years with lawyers and law firms that they know deliver good results and they work well with. This is often one of the most important factors. Before instruction however, always do your ground work- are they a member of the law society, can you talk to a referee, etc. Here at base we have several companies we can recommend highly- feel free to ask at any time.

How long does a sale take?

This varies enormously according to the type of property (Leasehold/Freehold) and whether or not there is a chain of properties involved. As a general rule we advise clients that, from point of offer, a sale will take approximately 3 months. Sometimes this is quicker but not by much and can take longer! Be prepared, the process is a lot slower than most people expect.

What are HIPs, do I need one and how can I get one?

HIPs, or Home Information Packs, are fast becoming an essential part of the selling process. Currently only 3+ bedroom properties need these however, from 14^th December 2007, all residential sales properties will require a HIP, which includes a home energy rating. The Pack includes an Energy Performance Certificate (EPC), containing advice on how to cut carbon emissions and fuel bills. Also included are documents such as a sale statement, searches and evidence of title. The idea is that this will speed up the selling process but proof of this is yet to be seen. You can organise your own HIP, many providers of which can be found online, although most agents should be able to recommend one to you. base recommends My Sale Pack Plc as they are not only competitively priced but also offer various payment options including sale upon completion (avoid any ‘up front’ costs)- contact the base office for more information.

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Purchasers

I have found a property I like, what now?
First of all make sure your finances are in order- if you haven’t already spoken to a mortgage broker do so- now! Before you enter negotiations regarding a property it is always wise to decide on your ‘maximum’- that is to say the highest amount you are prepared to pay for the property. Once you have established this contact the Agent and make your offer. Make sure that you are specific about your buying position (1^st time buyer, chain free, on market, sold, etc) and financial position. If buying using finance, it is often worthwhile informing them how big your deposit is- this can sometimes help secure the property, particularly if there is another party involved. Finally give them your offer and be precise what you expect for that price. Properties in London are often sold including fixtures and fittings but not appliances, furniture, etc- be clear what your offer is for as this can cause huge problems later.

My offer has been accepted, what next?

You now need to arrange two/three services as a matter of urgency. Firstly, you must speak to your Lender/Broker and advise them that you have had an offer accepted on a property. They will take details from you but will usually wish to liaise with the agent to get all the information and book a valuation/survey. Secondly, you will need to instruct a solicitor to act on your behalf- if you don’t already know one it is worth asking your agent. Most agents will have one, if not several, that they can recommend. I advise that you take this route first as the agent should have an established relationship helping the processes go more quickly. Finally, you may have decided that you want a full structural survey if one is not provided by your lender. Many lenders nowadays just have valuations or basic inspections done; although an extra expense, this is often worthwhile as it can highlight any major issues hopefully avoiding unexpected costs in the future.

Now my offers been accepted, when can I move in?

This varies enormously according to the type of property (Leasehold/Freehold) and whether or not there is a chain of properties involved. As a general rule we advise clients that, from point of offer, a sale will take approximately 3 months. Sometimes this is quicker but not by much and can take longer! Be prepared, the process is a lot slower than most people expect.

What is Stamp Duty Land Tax?

You pay Stamp Duty Land Tax on property like houses, flats, other buildings and land. If the purchase price is £125,000 or less you don't pay any Stamp Duty Land Tax at all. If it's more than £125,000, you pay between one and four per cent of the whole purchase price, on a sliding scale. In London, if you buy under £125K you have done very well! Otherwise, the tax brackets are as follows:

£125,000-250,000- 1%

£250,001-500,000- 3%

£500,000 & up- 4%

This will be payable on top of the property price and will not be covered by your mortgage. Make sure you have adequate funds to cover this expense.

What other expenses are there?

This will vary according to your personal circumstance but do consider all of the following expenses that you may need to cover after Stamp Duty: Solicitor Fees, Local Searches, Money Transfer Charges, Mortgage Arrangement Fees, Furniture, Removals, Cleaning, Locksmith, etc. And , of course, don’t forget a nice bottle of something for your agent when the whole matter is done and dusted!

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Landlords

Why do the agents’ appraisals of my property vary so much?
The easiest way to win an instruction in property is to over-value it. Money is an easy way to trick Landlords into instructing an agent but remember- just because an agent tells you a price doesn’t mean they will get it for you. Research the market yourself before the agents attend or, in hindsight, research their valuations and see what is available- visit the major property portals such as www.findaproperty.com or www.rightmove.co.uk and focus on properties market ‘Let’ or ‘Under Offer’. Be honest with yourself- whilst an extra £50 per week might sound nice, is it realistic? Equally however, don’t be fooled into down-valuing your property for a quick and easy sale. If you are in no particular rush you can afford to test the market at a slightly higher price and move on from there.

How do I choose an agent?

There are several factors to consider- advertising, professionalism, reputation, regulation, fees…….in reality, however, the best way is to choose an agent you actually like. This can be a long term relationship and you want to know you have picked an agent you can communicate well with. Cheap fees are always tempting but, like with anything in life, you get what you pay for. If you are only prepared to pay peanuts, don’t complain when you get monkeys! Regulated agents are always advised as they are bound by ‘codes of practise’ to ensure you are dealt with professionally. We would recommend you only ever use a regulated agent- to start try: www.naea.co.uk or www.oea.co.uk

I want to change/instruct other agents- what do I do?

Generally speaking (although do please consult your Terms and Conditions) Letting Agents do not have minimum term periods or ‘sole agency’ terms. This therefore means that you can dis-instruct an agent or instruct additional agents at any time. If you are not happy with the service you are getting from an agent, do something about it! If their service is generally poor, dis-instruct them- they haven’t delivered what they promised and, should they find you a tenant, this will probably only be the start of your problems. Taking longer to rent your property than expected? Get other agents on board! Only a weak agent will fear competition. Competition is a large part of this industry and can help ensure that your property is let as soon as possible for as much as possible. Don’t worry, if an agent isn’t successful this time round, they may be more motivated to find someone for you next year!

Do I need a Gas Safety Certificate?

These are a legal requirement for any residential property with a gas supply that is being rented out. A Gas Safety Inspection (or GSI) must be carried out by a Corgi registered engineer, and a Landlords Gas Safety Certificate issued or be in place before any tenancy can be allowed to commence. base can easily arrange this on behalf of our Landlords. We use and recommend NCS Property Maintenance and the usual cost is just £60 + VAT. Of course, you are welcome to instruct any Corgi registered engineer you choose but we must be issued with a copy of the certificate before we will allow any tenancy to commence at the property.

Do I need an Electrical Safety Inspection?

This is currently not a legal requirement however we do recommend that you have one done every 3-5 years just to be safe!

Do I have to register my Security Deposit with you?

No, this is merely a service we offer free of charge to all of our Landlords. You are entitled to register with any scheme you are eligible for but we do require notification as to where this will be and you must notify the tenants once you have done so.

What is an Inventory and am I required to get one?

An inventory is a detailed record of your property, its contents, fixtures, fittings, appliances and their condition and cleanliness. There are many companies out there that provide them but we only use and recommend Spectrum Inventories. Whilst these are recommended by base and most Tenancy Deposit Schemes, they are not a legal requirement.

How can I maximise my return?

Rental properties are an investment and should be treated as such. Therefore you should always be looking for viable ways to increase the demand for your property and therefore drive up the value. Each property is different due to its style, layout, size, amenities and location and therefore any advice here is general. The majority of rental properties in London are rented furnished. This is what the greatest demand is for and therefore it is often best to comply with this. However, don’t just put in cheap, basic furniture. Your furniture must match the section of the market you are targeting. This doesn’t necessarily mean you need to spend a lot of money, but be stylish and choose quality- usually quality items work out cheaper in the long run as they last longer. Also, in our experience, it is often best to stand out from the crowd. Don’t be afraid to use a bit of colour and give your property a bit of character. In an ideal world, it is better to have 3-5 people LOVE your property than 30 people just like it. People will often pay over the odds for a property they love and it is not uncommon to have people bid against one another in order to secure a unique, high spec property. You can either do this yourself by doing research through the internet and interior design magazines or can employ professionals, like base’ interior team, to help you achieve your goals whilst keeping the focus on financial gain. Always look to minimise or even eliminate vacancy periods at your property where possible; remember, every week your flat sits empty is money out of your pocket!

How should I furnish my property?

Again, this may not be necessary so check the market first before going and spending any money. However, should you decide to furnish a property, the level to which you decide to furnish is up to you. Most Landlords will supply the following furniture for a furnished property: Bed, Mattress, Bedside Tables, Chest of Drawers and Wardrobe for each bedroom, Sofas and/or Armchairs to accommodate tenants and at least a couple of guests, Coffee Table, Dining Table and an appropriate number of Dining Chairs. Should you decide to furnish a property you MUST ensure that all the furniture supplied complies with the ‘furniture and furnishings (Fire) (Safety) (Amendments) act of 1993’. Some Landlords choose to go further supplying everything from Crockery to Artwork and Kettles to TVs. Whilst this can often help maximise rent achieved you must remember that anything you provide you are obliged to maintain. Therefore if you buy a kettle or even a TV and it breaks down during the tenancy (due to no faulty of the tenant) you are legally obliged to get this repaired quickly. Be warned, this can become costly!

What maintenance should I carry out on my property?

This will be dictated partly by what market you target and also how careful your tenants are. Some Landlords redecorate their properties every year, or at the end of each tenancy, to ensure their properties are always provided in immaculate working condition. Others leave their property for years and often see rents decline as a result. In truth, there is no fixed guide but in reality you should look to re-decorate your property every 3-5 years and use this time to carry out any minor or essential maintenance works at the property too. This will ensure that your property continues to achieve top rent and also requires little or no maintenance during tenancies.

I am thinking/planning on moving abroad, what do I do next?

There are several factors to consider here and legal requirements to meet. Contact the base lettings team to find out more.

What are my tax liabilities?

Again, this will vary immensely according to your personal circumstance and income, contributing factors relating to the property and where you are based. Contact our lettings team to find out more where we will; be able to offer detailed advice and also put you in contact with highly recommended specialist professionals.

What Insurance do I need?

In reality, other than any obligations put on you by your Lender, Freeholder, etc. there are no Insurances that are currently mandatory in the lettings arena. However, there are some amazing products available today specially designed with Landlords and multiple property owners in mind. These can often save you time and/or money and can help protect you against a rainy day! Call base to find out more about the products on offer through our recommended financial providers.

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Tenants

Why do I need to pay a Holding Deposit?
In order to show genuine commitment to a property and have it removed from base advertising you need to financially commit. base will also incur expenses processing your application and undertaking admin and the costs for this must be covered should the tenancy not proceed.

If the tenancy does not go ahead, do I get my Holding Deposit back?

If you choose to withdraw from the property or you fail the referencing process, then no. If, for any reason, the Landlord/base has to withdraw the property then this will be refunded less any references costs that have been incurred.

What is your standard Security Deposit?

As with most agencies in London our standard deposit is a minimum of 6 weeks rent. On some developments on the outskirts of London (such as Ilford or Greenhithe) this is sometimes just 1 month, in line with the local market, but this is rare.

Is my Security Deposit safe?

Since 6^th April 2007 strong legislation came into effect nationwide to ensure better protection for you, the tenant. Deposits now have to be registered with 1 of 3 nationwide schemes. Once registered, you will be provided with a certificate, as proof, and there are strict guidelines as to how this money must be handled. There are also strict guidelines in place now as to how much can be deducted from a deposit and why. base are proud members of TDS (the Tenancy Deposit Scheme) and the vast majority of our deposits will be registered with us under this scheme. Wherever your deposit goes, you will be informed accordingly before the tenancy commences.

What is a typical contract length?

Our standard tenancy agreements are 12 months. This is usually preferred by both Landlords and Tenants as it offers a certain amount of security. We do have a unique ‘early termination clause’ in all our tenancy agreements however- just in case the unexpected happens.

Do I have to keep the utility providers that are with the property?

No- it is your legal right to choose who you want but do please notify the Landlord if you change them.

Can I hang pictures, etc on the walls?

This is really at the discretion of the Landlord or Managing Agent. Most will permit this on the condition that you only hang a few items and picture hooks (rather than nails) are used. At the end of the tenancy some will require these to be removed and any damage made good, others will simply ask you to leave the hooks in place. To be safe, ask before you do anything!

Can a tenant change during a tenancy?

Yes- base must be notified, any incoming tenant will need to be referenced to ensure they are suitable and there will be an admin fee to pay for the tenancy agreement to be updated. These costs are usually covered by the incoming party. However, you cannot simply move someone else in without notifying base/Landlord. This is a breach of contract and can result in serious penalties.

How long will it take me to get my deposit back?

This is really up to you. No deposits are returned until base/Landlord has received proof that all final utility bills have been paid in full. The quicker we get these, the quicker we can return the deposit!

Do I need to get Insurance?

No, but in a busy City like London it is highly recommended. base have an affordable insurance product designed specifically for tenants that not only covers specific cover for your own possessions but also protects some of the Landlords too helping to protect your Security Deposit. You are, of course, welcome to source your own insurance but do make sure that it is applicable for tenants.

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