Ask the Estate Agent

1. Before the move, talk to the children about why you are moving and integrate the idea into their daily life – they can create some art for the new home or create a map of their new area.
2. If possible, take them to their new home and let them see and plan out the layout and colour scheme of their new bedroom before the move.
3. Visit the new area several times before you move and find a local park or playground so that when the children ask about the move, you can remind them that they’ve been to the area before and stop their anxiety.
4. Give your children the responsibility of packing their most important bits into one box. Use this as a good time to have a clear out too, so the new bedroom of the new home can be a new exciting adventure.
5. Pack the children’s boxes last into the removals van so they’re the first boxes out and you can set the kids up with their toys whilst you’re offloading the rest of the stuff.
6. Pack an essentials box for each member of the family. You’ll need toilet roll, PJs, toothbrushes – and nappies or toiletries for the little ones. This way, you don’t have to unpack everything to find all your important bits. Let the kids pick one teddy or toy to accompany them in the car.
7. If able, ask friends or family to look after the kids for some of the day, so you can pack up, move and unpack swiftly and effectively.
8. On the first night, get the kids’ stuff unpacked and get them surrounded by their comfortable items, then have a break and have a family dinner so they have a chance to settle in and have a bit of a break from the chaos. If you don’t have furniture yet, why not make a bedsheet tent for the kids’ first night adventure!
9. Let the kids plan a welcome party in the new house where they can have their friends over for dinner or a sleepover. This will give them something to look forward to.
10. Get the kids busy in their new home baking cookies to take round to your new neighbours. This will keep them busy, get them used to their new surroundings and give them something exciting to think about – making new friends!

So that concludes this episode of Ask the Estate Agent Podcast. You can contact us anytime using the links below:

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So don’t forget to contact us with any subjects you would like us to cover or questions you would like answering in the coming episodes and until next time I would like to thank you for listening and goodbye for now.

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In this episode we are delighted to Welcome Julie White from Cornerstone Tax to the Podcast

Julie is a Chartered Accountant who has specialised in Tax for the last 30 years and specifically Property Tax since 1999. She has worked in a number of large accountancy firms from Pannell Kerr Forster in Nottingham where she trained, to KPMG in Nottingham, Arthur Andersen in Cambridge and London and more latterly at RSM UK in Nottingham and EDF Tax in Nottingham.

Julie began to specialise in property tax when she moved to a client of Arthur Andersen  a FTSE 100 company British Land where she began to specialise in property tax and particularly SDLT. She has since advised many entrepreneurial businesses with regard to minimising their tax position.

Julie began working with Cornerstone Tax earlier this year.  Cornersrone are a niche property tax consultancy founded in 2006, with a particular focus on Stamp Duty Land Tax, SDLT as it most commonly referred to in the tax world. Cornerstone has grown to become the leading firm of Chartered Tax Advisers in this field.

Cornerstone advise solicitors on how to calculate the SDLT liability on individual transactions as the SDLT legislation has become increasingly complex over recent years and the rates have, of course, increased significantly. Cornerstone also advise individual property investors, property purchasers, property portfolio holders, entrepreneurial property business owners and corporate entities to maximise their tax efficiency when it comes to purchasing property and holding it in a tax efficient environment. Much of Cornerstone’s recent work has centred around assisting clients in forensic reclaims of overpaid SDLT on historical transactions and helping clients minimise the SDLT paid on current property purchases.

Cornerstone are based near Market Harborough, with a particular strength therefore in the East Midlands, but are a national practice and have clients all over the UK and internationally.

• Who are Cornerstone Tax
  We are a niche property tax practice based in Kibworth near Market Harborough, dealing with all property tax issues but with a particular focus on Stamp Duty Land Tax (SDLT)
  We were founded in 2006 by David Hannah who is a Chartered Tax Adviser with experience in property tax matters and SDLT.
  We have a team of Chartered Tax Advisers, Chartered Accountants, Tax Consultants’ and Tax Technicians with many years experience in dealing with property tax issues.
• –  How can Cornerstone help those who buy or hold property?
  Our team can advise individual landlords, property investors, property developers, property partnerships, and companies on how to plan effectively to minimise all taxes relating to transactions involving property. This could be property purchases, the restructuring of holding property portfolios, transferring properties between individuals and other entities, transfers of properties between family members or leaving assets such as property for future generations.
• –  What is Stamp Duty Land Tax or SDLT?
  It is a tax based on the percentage of a price paid for a property or its value if transferred between parties. It is paid for by the purchaser of a property.
• –  How much is SDLT?
  The current tax is structured based on a “stepped” system whereby a buyer now pays a fixed percentage for each “slice” in value of a purchase up to a total amount. On residential property if the purchase price is:
  < £125K = 0%
  £125K – £250K = 2%
  £250K – £925K = 5%
  £925K – £1.5m = 10%
  >£1.5m = 12%
  For companies owning a residential property 15%

So a residential property costing £750K, the SDLT would be £27,500 (£125K@2%+£500K@5%One costing £1.5m the SDLT would be £151,250.

On non-residential (commercial) property Up to £150K = 0%
£150K-£250K = 2%
>£250K = 5%

• –  Current status of SDLT
  SDLT is a tax that used to be a relatively insignificant tax to the Treasury, but in these days of challenging economic conditions, there is a perception that those who own property, rightly or wrongly, are doing well relative to many others.

Since the introduction of Stamp Duty Land Tax in 2003 when the tax was split away from Stamp Duty (which is a tax on the purchase or transfer of shares), the rates have increased steadily, to those that we see today with a top rate of 12%. Gone are the days when buying a property meant an irritating 1 or 2% on the mortgage.

SDLT currently generates more than £13bn of tax receipts a year. That’s more than Capital Gains Tax of £7.9m and Inheritance Tax of £5.2m and almost a quarter of what UK Corporation tax brings in at £54bn. So SDLT has become something of a stealth tax since its inception in 2003 and certainly one where buyers need to take notice in order to minimise their liability.

– What are the current hot topics specific to SDLT?

There are a few things I want to focus on:

1. The increasing complexity of the SDLT legislation is leading to a situation where there are huge overpayments of SDLT made by purchasers. This shows that the SDLT legislation is, indeed, far too complex even for most conveyancing solicitors who act almost as unofficial tax collectors for HMRC. Solicitors are not tax advisors but the sheer complexity of the legislation is leading to fundamental errors in the calculation of SDLT on property transactions. The SDLT Tax calculator on the HMRC website is not fit for purpose as it asks a handful of basic questions, which does not delve deep enough into the circumstances of a transaction to ascertain whether any of the plethora of the SDLT tax reliefs that exist might be available to a taxpayer to reduce their SDLT liability. According to HMRC figures refunds of, £111m were made in the first 3 months of 2018 and £80m in the second 3 months of 2018. This compares with £47m in the last 3 months of 2017 and £57m in the 3 months before that. An increasing trend and worrying for all property purchasers who don’t know if they are paying the right amount of SDLT. We at Cornerstone estimate that as many as 1 in 6 transactions may have overpaid SDLT and estimates are that as much as £2bn a year in SDLT is overpaid.
2. As if to highlight the fact that property owners are being targeted by the Government for increasing tax receipts, the SDLT Additional Rate tax of 3% was introduced back in 2016. The Additional Rate of SDLT is due on residential property purchases (the legislation talks about dwellings), which are second homes or buy to let properties, whether they be for investment purposes or a taxpayers’ main residence if they still own another residence. For the last year, Additional Rate tax transactions accounted for 24% of all liable transactions, so it has raised a significant amount of additional revenue receipts for SDLT since its introduction.
3. In the last couple of years as a result of changes to the deductibility of finance costs (interest on mortgages) for landlords introduced by s24 FA (no.2) 2015 (which we will discuss more fully later on), there have been significant moves on

the part of landlords and owners of buy to let properties to incorporate their property businesses if they operate as sole traders or in partnership. Moving properties into a company, even where technically there has been no change of ownership if the current owner is also a shareholder in the company, will result in an immediate SDLT liability.

• –  How has the introduction of the SDLT Additional Rate surcharge of 3% affected property purchases and the property market generally?

The 3% additional rate surcharge applying to the purchases of second homes and but to let dwellings has had an impact on the buy to let market. Many landlords and property investors have taken the view that the increased burden of SDLT taken together with the restriction on the tax deductibility of finance costs are abridge too far in the investor property market. There is simply not enough profit on rents to make a property letting business viable. This has led to the offloading of an increasing number of buy to let properties on the market, with less uptake from buy to let investors. This has inevitably led to a depression of market prices in some parts of the country.

• –  How can purchasers find out if they have overpaid SDLT and what happens if they have?

Much of the work that Cornerstone have undertaken for clients in the last couple of years has involved ascertaining whether clients have overpaid SDLT and obtaining refunds for them.
Some examples of cases we have worked on recently:

1. A client overpaid £28K on the purchase of a residential home for £850K
   2. A developer client obtained a £128K refund when purchasing land with planning permission to build 18 dwellings

Cornerstone can assist clients who have purchased properties in the last four years (the time period in which a refund can be claimed), by carrying out a forensic review of all transactions to ascertain if any reliefs are available to reduce the SDLT that should have been paid.

The things to look out for in particular are properties with:
(i) Land over half a hectare (1.24 acres)
(ii) Any commercial or non-residential buildings on the land ie.stables, workshops etc
(iii) Annexes, flats, cottages in the grounds
(iv) Any rights over or interest in land that does not benefit the dwelling ie.

(v) Common rights to wander over nearby parkland that may or may not be in the title

• –  What are the implications for landlord and property owners on the introduction of s24 FA(2)2015 Landlord Tax? How has this affected the property investment market?

The introduction of this provision in April 2017 is being phased in gradually where the tax relief available on mortgage interest to set against income received on property is being reduced. The provision is phasing out higher rate relief for mortgage interest for property investors and only basic rate relief could be claimed. So for most property investors who are higher rate taxpayers, this means effectively a reduction of 20% on what they can claim.

For many property investors, the effect of this provision combined with the tightening of the rules regarding claiming a tax deduction for expenses like maintenance and decoration, has made it not as efficient or profitable investing in property.

It has led to many property investors deciding to offload their portfolios or to incorporate their property investment business, as a corporate vehicle can continue to claim full tax relief for property finance costs.

• –  What other taxes can Cornerstone advise on specific to property?

Cornerstone are a niche property tax consultancy and in addition to SDLT, they can advise on Capital Gains Tax, Inheritance tax, Corporation Tax and Income Tax surrounding property matters.

We advise on restructuring of property portfolios into tax efficient vehicles and to maximise wealth.

• –  Why use Cornerstone Tax?

Cornerstone have been operating in the niche property tax sector for over 10 years and has an experienced team of Chartered Tax Advisors, Chartered Accountants, Accounting Tax Technicians and STEP (Estates) qualified consultants.

We provide straightforward, comprehensive, bespoke advice for our clients. We pride ourselves on being able to deliver efficient tax solutions for all clients’ specific circumstances.
Our bespoke services includes:

• –  ongoing support for any tax enquiry raised by HMRC in respect of any transaction that Cornerstone has advised on
• –  Representation of tax matters to Tribunal level
• –  Annual reviews of your tax affairs to ensure your tax position is optimised
• –  Transaction tax audit service for large volume purchasers, developers, property investors and dealers and/or solicitors.

You can contact Julie at Cornerstone Tax using the details and links below:

Website: www.ctatax.uk.com

Telephone: 01858 439033
Email: [email protected]

Twitter: www.twitter.com/Cornerstone_Tax

Cornerstone Tax,

Milestone House,
18 Nursery Court,
Kibworth Business Park,
Kibworth Harcourt,
Leicester LE8 0EX

You can contact us anytime using the links below:

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Website: www.asktheestateagent.co.uk

So don’t forget to contact us with any subjects you would like us to cover or questions you would like answering in the coming episodes and until next time I would like to thank you for listening and goodbye for now.

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When you’re looking for a new home, whether you’re buying or renting, getting swept up in the excitement of possibly finding your next happy home can mean you don’t ask all the sensible questions that you wanted to.

To save you the job of having to dampen your excitement, here are some questions you may want to ask.

• Why is the owner selling? How long did the last owner live here? Have they already found somewhere else to live? Gauge the situation and establish if there are any iffy circumstances straight off.
• Who are the neighbours?
• What’s this area like to live in?
• What offers have they had so far? What’s the lowest amount they’d sell for? The agent is likely to be honest about this if they have been instructed to sell quickly.
• How much are the service charges and ground rent if there is any? What is the council tax band?
• How old are the drains and guttering? Have there been any problems with damp? Check the home thoroughly, including walls and behind furniture for possible leaks or cracks.
• Ask some basic questions about the workings around the home. How is the pressure in the shower? Do the windows lock? Are all of the sockets and taps working? Feel free to ask to test them – it’ll save you the hassle of another small thing to sort out when you move in.
• Is there a TV aerial and phone socket?
• When was the electric last rewired?
• What kind of boiler it is – a combi-boiler? How old is it? Does it have a guarantee?
• Have you got an outdoor space? If there’s a garage, find out if there is electric in there. It’s also worth asking if you legally own the driveway.
• Remember to check the EPC to see what the energy efficiency is like in the property.
• Do your research on Rightmove’s ‘Sold Prices’ section to see what similar properties in that area are going for.

• Does the flat come furnished? If the agent says yes, have them point out what’s included and send an inventory over before you sign the contract.
• Which bills are included? If the previous tenant is available, see if you can find out how much previous bills roughly were.
• Does it come with parking? If not, do you need a permit to park outside the property?
• Why are the previous tenants moving out?
• What parts of the property are you responsible for maintaining? For example, the garden, balcony, windows.
• What’s this area like to live in?
• Am I allowed to decorate or add changes to the décor?
• Can I have pets? You need to ask as it may be in your contract that you can’t, but they may be flexible if you ask at this early stage.

This may seem like a lot of questions, only some of which will be relevant to your situation, but some of these probes could help unearth essential information about the property. Some things on the list may be easy for you to sort once you move in but might give you more price negotiating power if you ask on a viewing! So give them a go, let us know how you get on and most of all good luck on your hunt for your new home!

You can contact us anytime using the links below:

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Website: www.asktheestateagent.co.uk

So don’t forget to contact us with any subjects you would like us to cover or questions you would like answering in the coming episodes and until next time I would like to thank you for listening and goodbye for now.

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Adding a touch of luxury to a room through carefully-placed accessories, colours and fabrics can instantly give it a show home worthy look and feel, often for a minimal budget.

So to help you get that Luxury look I’ll talk you through five quick and simple ways to transform your interior into a luxurious abode:

1. Accessories

Adding metallic accessories such as a gold drinks tray or a statement mirror can make a room look stylish, yet remain functional. Complement the look with this year’s Pantone Colour of the Year, ‘Greenery’, by adding a statement plant to bring the outdoors inside, in a luxurious way.

1. Fabrics

Achieve that luxury hotel look by using a variety of textures and finishes – luxurious fabrics that feel great against your skin and make your bedroom a comfy but stylish haven. Add thick pile towels in your bathroom and en-suites as well as luxurious fabrics to curtains, carpets and soft furnishings.

1. Artwork

Create your own personal ‘wall of fame’ at home by placing your favourite family photographs into a mix of metallic and dark wooden frames and place them on a statement coloured wall. This look is sophisticated and a great talking point – particularly when paired with a feature sideboard.

1. Colour

Thoughtful use of colour can create a feeling of luxury and adding furniture and accessories to a room in a neutral palette will give the room a sophisticated look. This year, you may want to use on trend shades of stone, praline and green enhanced with metallics.

1. Lighting

Nothing says luxury more than the right lighting in a room. Consider investing in a statement pendant over your dining table to create a real focal point, and add a dimmer switch to control the mood. Lighting up the best features of your room using beautiful lamps and well-placed candles are perfect for illuminating a room’s luxurious side.

So that concludes this episode of the Podcast so thank you for listening and I hope you find this content helpful.

As a listener we want your questions to answer. Whatever your worries, concerns or needs are, contact us via our social media channels or our website below and we’ll answer your questions in our future episodes.

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So don’t forget to contact us with any subjects you would like us to cover or questions you would like answering in the coming episodes and until next time I would like to thank you for listening and goodbye for now.

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There are several different methods of selling a property which we have outlined below along with a few reasons why each method is typically used. If you’re thinking of selling then each of these methods should be assessed as to which one meets your goals and objectives best.

The methods most commonly used are:

1. Private Treaty
2. Traditional Auction
3. Modern Method of Auction
4. Informal Tender
5. Formal Tender

Now lets go through each method in a bit more detail:

1. Private Treaty

The process called “For Sale by Private Treaty” is the method employed by most estate agents, preparing descriptive details of the property and quoting a definitive asking price. Details are circulated: potential buyers may view the property and either agree to buy at the asking price or submit an offer to purchase. Agreement to buy at this stage (for England and Wales) is subject to formal contracts being prepared between the vendor and the purchaser and those contracts being signed and exchanged between the two parties.

If several interested parties are introduced to the seller those parties will be invited for “best & final offer” thus ensuring the vendor receives the optimum price.

When used:

The vast majority of presentable residential property where the seller is looking to move from one home to another.

Average time to sell from initial marketing to completion is currently around six months at the time of recording so this potential and varied timescale should be considered when choosing Private Treaty.

At present approximately 30% of transactions collapse before exchange of contracts and the average amount a homeowner loses in that process is around £2,900.

1. Traditional Auction

The property is advertised for sale by Auction, rather than at a fixed price. Those interested in buying attend a competitive auction, conducted by an Auctioneer, at which the person who bids highest buys the property.

The successful bidder is legally bound to purchase when the Auctioneer’s hammer falls on his bid. He pays a 10% deposit there and then and has to complete the purchase on the stated completion date – normally 4 weeks after the auction date. The buyer has to arrange finance and make any enquiries (including carrying out a survey) before he bids. It is too late afterwards.

When used:

Properties for which there is likely to be strong competition – so that it does not matter if some prospective buyers are not able to bid.

Properties that are most likely to appeal to cash buyers (rather than those with a property to sell or needing to borrow) – for example building plots and properties needing renovation or redevelopment.

Properties with serious defects, where there is a fear that buyers by Private Treaty might keep pulling out because of concerns over the risks they are taking

Those where it is very difficult to predict the likely sale price.

When the seller needs completion within a certain timeframe.

1. Modern Method of Auction

New concept more commonly known or referred to as online auction.

The successful buyer is required to pay a Buyers Reservation Fee/Deposit and sign a Reservation Agreement. The property is then reserved to the buyer. The buyer and seller are then required to unconditionally exchange contracts and complete the transaction within 56 days.

This allows buyers time to raise finance so opens the auction to more potential buyers.

No Agency fees and the seller receives the full auction price achieved.

Often an upfront charge for the auction pack paid for by the seller.

When used:

Properties for which there is likely to be strong competition.

Can offer a wider range of buyers with the right marketing due to extended timescale between reservation and exchange of contracts. This allows buyers to raise finance for the purchase if required.

Those where it is very difficult to predict the likely sale price.

When the seller needs completion within a certain timeframe.

1. Informal Tender

In the process known as ‘For Sale by Informal Tender’ the asking price will not be stated generally a guide price will be given. Written offers will be invited (sealed bids) and a closing date for such offers published. All offers are opened at the same time. Generally, the vendor is not committed to accepting the highest or any offer. The offer is not binding and on acceptance of any offer the transaction proceeds subject to contract.

When Used:

Properties where competition is strong and a choice of buyer is likely or anticipated. Properties that require modernisation (defects highlighted at survey).

Where a closure date  for accepting offers is required or desired.

1. Formal Tender

When a property is sold by formal tender, as with an informal tender, the sale will be advertised with a deadline by which prospective purchasers must submit their bid.

Each tender document from the bidders must include the full legal contract for sale and all bids have to include a bankers draft as a deposit on the contract. The bids are opened by the vendor or agent (representative). As soon as the “best bid” is selected, the bankers draft is accepted and contracts are automatically exchanged. The successful bidder is then committed to the contract and will have to complete the sale on the appointed date. If the successful bidder fails to complete the sale they will forfeit their deposit and further costs may be incurred.

Generally rarely used due to its complexity.

When Used:

Some land transfers and highly desirable, unique properties.

When the seller urgently needs to be completed within a certain time frame.

That concludes this episode of the Podcast so thank you for listening and I hope you find this content helpful.

As a listener we want your questions to answer. Whatever your worries, concerns or needs are, contact us via our social media channels or our website below and we’ll answer your questions in our future episodes.

Facebook: www.facebook.com/asktheestateagent

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Website: www.asktheestateagent.co.uk

So don’t forget to contact us with any subjects you would like us to cover or questions you would like answering in the coming episodes and until next time I would like to thank you for listening and goodbye for now.

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