Stamp Duty Holiday – Survival of the quickest

Now is a good time to sell your property.

Houses and even flats are flying off of the market like hot cakes.

Now that buyers with as little as 5% deposit are in the mix, they have more choice and are competing with first time buyers and home movers for properties that would have previously been unaffordable and out of their budget.

In terms of applying for a mortgage, the same affordability factors apply (i.e annual salary, debt to income ratio and stress testing).

This new initiative means that those who can generally afford a £200,000.00 property, but just didn’t have £20,000.00 for a 10% deposit, can now buy a property within that price range with a 5% £10,000.00 deposit.

It’s important to note that nothing is ever done as a good will gesture. This kind of lending does present risks to lenders which is why you’ll find that interest rates are a lot higher when a buyer is presenting less deposit and borrowing more (loan to value).

Before the pandemic and the 5% deposit initiate, a 90% mortgage which meant the borrower would of been presenting 10% deposit, had interest rates in and around the 1.89% region. Now for the similar kind of mortgage, you’re looking at 3.49% interest rates. Shocking! That’s almost double!

  1. Find out how much a bank is willing to lend you & get a decision in principle (known as a DIP or AIP)
  2. Look for properties within your budget. See it, view it & make an Offer on the property within 24 hours.

“I called the Estate Agent to arrange a viewing as soon as the property came on the market and within minutes it was gone!“

You snooze, you loose

Remember, it’s survival of the quickest!

The evil chain that stole my dream home – House hunting in a pandemic

Part 2

When we started house hunting in March 2020 it was a ghost town.

We had agents at our beck and call and were spoilt for choice. The houses that were on the market had been there for a while, no real haste and vendors were happy to get people through their doors.

As the months progressed we took our time, looked around and didn’t make any real commitments.

Once the Chancellor made the stamp duty holiday announcement in July 2020, everything changed dramatically!

We noticed that as soon as a house came on the market, it was gone within 7 days.

I was set up for email alerts and was quite quick to book viewings, but before we could get through the door, the house had been sold subject to contracts!

A trend that was quite apparent was that home movers were making the most out of this stamp duty treat.

The stamp duty holiday meant that people could use this time to size up, relocate and make money! (Equity)

Let’s bear in mind that we were in the thick of a pandemic and forced to stay indoors for the foreseeable. If your 24 hours, 7 days a week is going to be your home, then it may as well be somewhere you feel comfortable and love being.

We saw city lovers opting for properties in the country/the outskirts of the M25 due to the flexibility of working from home and not having to commute in to corporate inner city offices. Not forgetting to mention that you get a lot more for your pound outside London.

What you’d spend on a 2 bedroom London flat, you could buy a 4-5 bedroom house with generous garden space outside London.

Ultimately the housing market was booming, it was the right time and everything was working in every home owners favour.

UNTIL we were all reminded time after time that we are in a pandemic, people are dying and services aren’t running at their usual speed.

Our chain fell apart because the upper upper chain had a Covid fatality and the middle chain participants had quite a bit of strain placed on their relationship due to lockdown Covid side effects.

All in all house hunting in a pandemic is not for the faint hearted.

Resilience, empathy and speed are key.

Chains fall apart, people let you down, but our lives are priceless and as long as we hold on tight to those, we have all that we need!

The evil chain that stole my dream home – Background Story

Part 1

In this series I will be detailing the personal experience of trying to buy & sell property throughout the COVID-19 pandemic.

2 weeks ago I shared disappointing news on my Instagram I had received a week prior. 

My husband and I were in the process of selling our flat and buying a new family home with a garden in acknowledgement of our son turning 1 and the need to size up. 

This all fell through 1 day before exchange was due and 2 weeks before completion was due.

Many had questions, many were scared, many didn’t want this to happen to them, so here we are.

Enjoy the 4 part series.

March

In March 2020 we put our property on the market. A week later the country was placed in a lockdown due to the rapid spread and threat of the COVID-19 virus.

This was not a great start to a journey we thought would be quite simple given my background and the fact that we’ve bought a property before with ease.

Everything was bought to a dramatic holt. No movement.

May

Things began to ease and we started to house hunt and made Offers on 2 properties – these were accepted. Now we just needed to find a buyer for our flat. Fast forward a few weeks – we lost house 1 because we took too long. With the seller being on haste, she sold the house to a chain free first time buyer for a lesser amount.

The second house was still in the works and both the agent and seller were patient with us.

July

In July 2020 the Chancellor announced the stamp duty holiday. This was great news for us. This stamp duty holiday meant that our expenses were to be bought right down. We then understood that we had more money to play with. It was a matter of, do we look for bigger houses? Or continue with what we had been looking at, presenting more deposit bringing our mortgage down/doing a more luxurious Reno job. 

August

At this point we’ve had around 5 viewings. No serious offers and everyone commenting on our slightly dated kitchen. 

September 

Aware of the stamp duty holiday potentially coming to an end in March 2021, we started to house hunt in September 2020 with the hope to exchange contracts and complete on our Sale/Purchase around December 2020 – January 2021

October

The second house we had made an offer on in May had been sold at this point due to our lack of a buyer. We were okay with this as we wasn’t too keen on all of the works the electrics needed. The house was a detached Edwardian home and needed a full rewiring (alarm bells).

Later this month we had a buyer! We began to give up hope until this lovely man came for a viewing with his business partner, shook hands with my husband and determined a gentleman’s contract had been made. 

We began to scramble because we no longer had a house we wanted. We immediately started to view properties, short list and then we found the one!

It was beautiful, had a drive, garage and a newly fitted modern wood burning fireplace.

We made an offer, it was accepted and the rush was on!

Days later our solicitors couldn’t get hold of our buyer and he advised that he was no longer looking for an investment flat as he had previously only dealt with houses due to leases bla bla bla. 

This was very disheartening and meant that we were now causing delays for the house we were buying.

November 

The agent that was orchestrating  our purchase of the house was great and quickly helped us find suitable buyers. We had viewings after viewings and eventually accepted an offer with the condition that things had to proceed quite quickly. 

December 

Searches had been paid for. Leasehold paperwork had been paid for. The solicitors we’re going through the motions and satisfying as much as they could.

Everyone in the chain was getting itchy feet. Things were dragging and our buyers were taking their sweet time. Eventually they got their mortgage sorted, searches back and we all awaited exchange/completion dates. Given the festive season, we knew this wouldn’t take place until the New Year

January 2021

COVID-19 was lurking. Some in the chain became victims and there were layers knocked off of the upper chain – this meant that it went from 6 parts to 4 parts.

It was understood by all parties that completion had to take place 2 weeks after the exchange of contracts due to the top of the chain’s situation.

14th January – the day before the anticipated exchange of contracts. We receive a call from the agent letting us know that unfortunately the sellers of the house we were hoping to buy are no longer proceeding for personal reasons. Everything fell apart. 

FAQ’s

What is the Stamp Duty Holiday? 

On 8 July 2020, the Chancellor of the Exchequer announced a temporary stamp duty holiday that cut the rate of stamp duty to zero per cent for all properties £500,000 or under until 31 March 2021.

What is Stamp Duty?

Stamp duty is the tax governments place on legal documents, usually in the transfer of assets or property. … These taxes were called stamp duties because a physical stamp was used on the document as proof that the document had been recorded and the tax liability paid.

What is a Chain?

A chain is a series of linked house purchases which are mutually dependent for a successful outcome. Your chain consists of the person you’re selling a home to, and the person you’re buying from.

Join me next Monday for post 2 of 4.

There will be a New Post every Monday of February 2021

8th February 2021 – “The evil chain that stole my dream home – House hunting in a pandemic”

15th February 2021 “The evil chain that stole my dream home – No chain, no pain. New builds”

Coming soon “The evil chain that stole my dream home – Recovery. What’s next?”

How to Guide: Starting a New Job remotely

It’s that season. Lockdown, COVID and redundancies. But it doesn’t all have to be doom and gloom. 

Some have found better opportunities, progressed and attained better paid jobs saving more (on travel) whilst working remotely. 

Others were made redundant and forced to finally kick start their passion or made huge U turns in their careers they were previously too scared to do – 👏🏾 you’ve got this!

The field you work in will determine your onboarding, training and use of numerous systems.

Today I will be focusing on those who work in fields that doesn’t require physical labour and are able to work remotely.

5 Tips to starting a new job remotely – learn quick and stand out:

  1. Research the company. Understand it’s infrastructure, values and whose who

  2. Be bold. Add relevant people on LinkedIn. Diarise catch ups so that you can get to know as many people in the company as possible. Don’t get lost in the matrix or simply be an employee number at HR.

  3. Screen record! If you’re being taught a new system or process, screen record it! This will enable you to watch it back as much times as you want and use the video in real time when you’re carrying out the task. This limits the amount of time you bother people and will help you to be more efficient.

  4. Use a diary, notepad or virtual sticky note to bullet point your tasks. Add to the list as new things pop up and cross them off as you complete them. Use a scorecard system. What is urgent? What is time sensitive? What can be done tomorrow?

  5. Take your breaks! It is so easy to start early, eat on the job and finish late. Don’t do this! Work life balance is important and overworking will quickly turn what you thought was your dream job in to something you resent, not to mention the risk of burn out. Whilst it’s important to perform, it’s also important to work smart, not hard. Use spreadsheets, put forward innovative ideas that eradicate those mundane tasks and know that you’ve got this! Believe in yourself! 

Starting a new job remotely can be daunting, but I promise you that if you do my top 5 tips, the whole experience will be a lot easier!

All the best and congratulations on your new role! 

If it doesn’t happen now, it never will…

Sometimes we put an irrational amount of pressure on ourselves to achieve our financial goals. When we aren’t feeling at our best, we beat ourselves up, especially when we unconsciously compare ourselves to our ‘age mates’ which at times can feel like they are winning this invisible race society has created.

Make no mistake, I don’t question the happiness of those people who have posted their version of success on social media (which at times could be glitter not gold) however, what I question is our ability to asses whether we are allowing said news to contribute to the ridiculous amounts of pressure we put on ourselves, all because:

“I’m almost *insert age here* and I’m not married”

“I’ve been working my butt off, but can’t seem to save” 

“I Should be further ahead in my career at my age”

“I should be buying my 1st home by now”

“I  *insert negative self talk*

Social media has amongst other things created urgency to achieve things simply because everyone on our feeds are sharing their wins all at the same time.

Once upon a time in what we now call the dark ages (before facebook) we didn’t really have exposure to so many other ‘lanes’. Of course we would hear about other people’s successes, but it wouldn’t be so in your face.

What’s your point Joseph?! In short I’m pretty certain we as a society have become impatient. We are a generation that thrives of INSTANT gratification. 

This is by no means a message to bash social media or encourage you to go off grid, but actually the key message I want you to take away from this is to stop. Take a breather. Stop putting yourself under the wrong kind of pressure. I guess it is a longer way of saying trust the process, and stay in your lane. 

Task:
Think about the thing that is distracting you from your lane, realign yourself and go at your pace. 

P.S. the more time you spend worrying and beating yourself up the less time you are spending on achieving your dreams. You’ve got this!