MICHELLE’S REAL ESTATE ROUNDUP / OCTOBER 2019

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MICHELLE’S REAL ESTATE ROUNDUP

Hi there! I’m Michelle Niziol, chief executive of the IMS Property Group and Michelle Niziol Bespoke Property Investments and this is the third edition of my monthly newsletter, Michelle’s Real Estate Roundup.

Each month we will be addressing the top issues and concerns of both U.K. property investors and hopefuls alike, as we take a dive into fresh topics aimed at helping you establish and grow your property portfolio.

For our fourth edition, we will be covering:

SPECIAL COVERAGE

• #AskMichelle Property Q&A: Changing your move-in date & Insurance through Exchange of Contract

• Success Stories: Claire grows her portfolio without spending a penny!

• Oxford First Time Buyer Event – Free mortgage services for attendants

ARTICLES

• A Guide to Equity Release & Lifetime Mortgages• Damp and Mould – What are your responsibilities?• Graven Hill: your perfect new home, exactly as you

want it• Espresso Architecture – How to plan the timeline for

your home extensions

FEATURED LISTINGS

• IMS Properties of the Month

The U.K. property industry is in a dynamic time of change. It is more important than ever to make sure you are current on industry news, so that you’re not left behind. Tune in every month for our new market updates and insights and as always…

Happy Investing!


MICHELLE NIZIOL

MICHELLE NIZIOL – CEO OF IMS PROPERTY GROUP AND MICHELLE NIZIOL BESPOKE PROPERTY INVESTMENT



Welcome to Michelle’s Property Q&A, my new segment aimed at addressing the public’s top questions and concerns about property investment and ownership in the UK.

Whether you are a seasoned investor or a first-time homebuyer, there will inevitably be times in which you just don’t know what your best options are.

Looking to purchase your first home and don’t know where to start? Considering expanding your portfolio and don’t know which type of property to buy? Want to know if you have enough equity to retire on?

Send your questions to hear my top property tips and strategies gained over my 20 years in the property industry, including hundreds of homes under management and thousands of property purchases for my satisfied clients.

Our first question comes from Hugh Schmider in London, who asks:

WHEN WE EXCHANGED CONTRACTS FOR OUR NEW HOUSE WE AGREED WITH THE SELLER THAT COMPLETION WOULD NOT TAKE PLACE UNTIL JANUARY NEXT YEAR. MY WIFE IS NOW PREGNANT WITH TWINS AND WE WANT TO COMPLETE EARLIER, HOW LIKELY ARE WE ABLE TO DO THIS?Thanks for the question Hugh. As contracts have been exchanged there is a legally binding agreement between you and your seller. The terms of the contract will specify the completion date but if the parties agree, it is possible to vary the terms and bring completion forward.

If the property is still being built, completion can only happen after it has been physically finished. Inform the developer’s site agent of your situation, and also the solicitor who is dealing with your purchase.

If the property is not a new build, and when contracts were exchanged you and your seller simply agreed completion in January 2020, then you will need to try to negotiate an earlier completion date with your seller.

This may not be possible if, for instance, your seller has a related purchase.

In either case, if an earlier completion date is possible, your solicitor should prepare a Supplemental Agreement recording the new terms of the contract.

Our next question comes from Chris Hewes from Oxford, who asks:

MY BROTHER AND I ARE BUYING AN INVESTMENT PROPERTY TOGETHER TO REFURBISH AND LET. HE SAYS WE WILL HAVE TO INSURE IT FROM EXCHANGE OF CONTRACTS RATHER THAN COMPLETION. BUT WE WON’T OWN IT FROM THEN, SO IS HE RIGHT?Excellent question Chris. Once contracts are exchanged there will be a legally binding agreement between you and your brother and your seller.

In most residential property transactions, the Law Society Standard Conditions of Sale are incorporated into the contract for the sale, stating that from the exchange date, the property is at the risk of the buyer.

So unless the contract is amended to place the burden to insure the property from exchange of contracts on the seller, the burden to insure it from exchange will fall upon you and your brother.

Your solicitor should explain the terms of the contract and your obligations under it prior to exchange. Buildings insurance cover should be for an amount equivalent to the property’s reinstatement value.

Do not be surprised if this value is less than the price you’re paying for the house, and be sure to arrange contents insurance after completion if you plan to keep any items of value in the property.

Have a question you’d like me to answer? Message me on:

#ASKMICHELLE PROPERTY Q&AMICHELLE NIZIOL

https://www.facebook.com/MichelleniziolLtd/

http://instagram.com/michelle_niziol_ltd/

https://twitter.com/Michelleniziol

https://www.youtube.com/channel/UCza1d7lQgrYHAIvVkQLbj4Q

https://linkedin.com/in/imsindependentmortgageadvisor/

HAVE A QUESTION YOU’D LIKE ME TO ANSWER?



Earlier this year I sat down with a former mortgage client Claire, whom I helped to purchase a buy-to-let property for. After over ten years of investing in the property industry, Claire had accumulated two partially paid off buy-to-lets plus her family home.

She told me that she didn’t want to dip into the equity of her family home, but that she was willing to utilise the equity that she has accrued in her two buy-to-lets. After analysing Claire’s finances in detail as well as the local property market, I proposed that I remortgage her two buy-to-lets, freeing up £240,000 for me to invest. At this point I used this capital to purchase three more buy-to-lets.

Our stellar reputation in the property market allowed us to achieve property prices for each house at an average of 11% below market value, giving Claire £20,000 in financing left over.

Once we bought Claire’s three properties, we used the left-over funds to completely refurbish each house. Throughout this process we also sourced and vetted potential tenants who were ready to move in once the purchases and refurbishments were completed.

Claire’s three new homes are now all fully let and managed, earning her an extra £1,550 per month after expenses.

Can you or someone you know benefit from smart property investments like Claire? If so, what are you waiting for?

Whether you want to take your first step on the property ladder, expand your portfolio, or simply earn enough income to retire, the property market is rife with potential, if you know how to utilise it and at Michelle Niziol Ltd., we do the hard work for you!

CLIENT SUCCESS STORIES: CLAIRE EXPANDS HER PORTFOLIO WITHOUT SPENDING A PENNY!

MICHELLE NIZIOL

CLAIRE’S THREE NEW HOMES ARE NOW ALL FULLY LET AND MANAGED, EARNING HER AN EXTRA £1,550 PER

MONTH AFTER EXPENSES.



Are you a First Time Buyer looking to get on the ladder but unsure how? IMS is holding an event to help make this happen! Join us at Oxfordshire’s most popular First Time Buyer Event on October 27th at Jurys Inn in Oxford.

As an added incentive we will be offering anyone who attends the event a completely FREE mortgage advice service which means you will save a minimum of £995 on your fees!

We are so passionate about holding these events as we feel there is just not enough information out there to explain what steps you need to take to get on the ladder or how the different schemes work and how they can benefit you. The information which is out there is often confusing and misleading which is why we want to hold these events, to educate you and leave you less perplexed about the house buying process.

The event is completely FREE OF CHARGE and will be held at the Jury’s Inn Hotel, Oxford on Sunday 27th October between 3pm-5pm. There will be experts on hand to answer all of your questions which will include; legal experts, house builders, local shared ownership housing associations and mortgage consultants!

The event’s speakers include:

• Michelle Niziol – CEO of the IMS Property Group• Jasmin Huntley – Director at the IMS Property Group• Cameron Clark – Sales Executive at the Clarion Housing

Association• Connor White – Solicitor at Bower & Bailey

Guests will also have access to a number of exhibitors at the event, including:

• Sovereign Housing - Shared Ownership Housing

Association• Bower & Bailey - Solicitor• Clarion Housing - Shared Ownership Housing

Association• Help-to-Buy South• Ashberry Homes - New Build Development• Heyford Regeneration - Shared Ownership Housing

Association• Dorchester Living - New Build Development• Graven Hill - New and Custom Build Development• Sage Housing - Shared Ownership Housing Association

The event schedule is as follows:

3:00pmHalf-hour welcome reception, where guests can mingle with their fellow property hopefuls, exhibitors and the afternoon expert speakers

3:30pmOur afternoon speakers will cover the main issues facing first time buyers, including; the mortgage application process, Help to Buy equity loans, shared ownership options, solicitors involvement and more!

4:30pmGuests will have the chance to speak to our experts and get booked in for a free of charge mortgage consultation and gather information from the exhibitors

At IMS, we are passionate about getting as many people on the property ladder as possible. Join us at Oxfordshire’s most popular FREE First Time Buyer’s Event and be the next person we help take their first step!

Visit Ticketsource to reserve your FREE spot today: https://ticketsource.co.uk/the-ims-group/t-xxxvdk

OXFORD FIRST TIME BUYER EVENT - FREE MORTGAGE SERVICES FOR ATTENDANTS

MICHELLE NIZIOL



As the nights get colder and the weather begins to turn, the threat of damp and mould in private rented properties up and down the country grows.

There are three different types of damp you may have to contend with depending on the types of property you have.

Condensation is something that everyone is familiar with - it appears on cold window panes when excess moisture in the air comes into contact with them. However, it can also appear on cold walls and lead to mould growth, which is where problems can occur. This happens in winter more often than not, but can be a year-round problem.

Penetrating damp generally occurs when there is an internal leak or plumbing issue within a property, with water coming through the walls or roof.

Rising damp is a problem most often found in older houses, where moisture in the earth below it is drawn up into the bricks or concrete at the bottom of the house.

HOW HARMFUL IS IT?

In terms of the various health issues arising from the presence of mould and damp, things can quickly escalate if the problem is left untreated. It can have a significant effect in terms of breathing and respiratory problems, allergic reactions from spores released by the mould and the exacerbation of issues such as eczema, allergies and weakened immune systems.

With all that in mind, it is in the tenant, landlord and agent’s best interests to remove the mould and stop the cause as soon as possible. Most causes of mould and mildew are avoidable.

WHOSE RESPONSIBILITY IS IT TO DEAL WITH DAMP AND MOULD?

This is always a tricky question to answer, because it depends on the type of mould and the reason it has appeared. Section 11 of the Landlord and Tenant Act 1985 states that the “structure and exterior of the dwelling-house” as well as “the supply of water, gas and electricity” and “heating and heating water” need to be kept in working order. With rising and penetrating damp caused by issues with the structure or the supply of water, whether it’s a leak or the moisture from underneath the house soaking into the underside of the structure, this would appear to be a landlord or agent’s responsibility to resolve.

Mould or damp caused by excessive condensation is another matter - because condensation is usually caused by poor ventilation, this could be as a result of the tenant not opening windows, blocking off an air brick or switching off an extractor fan. Specialist repairs and maintenance software such as Fixflo brings up this possibility if a tenant reports the existence of mould or damp. If this is the case, the tenant should take steps to resolve the issue. However, that responsibility could still lie with the landlord if the condensation is a result of the structure itself not having sufficient ventilation.

WHAT YOU CAN DO?

Responsibilities surrounding repairs and maintenance should be set out in the tenancy agreement. If the tenancy started after 1st October 2015, landlords/agents are legally obliged to respond to a tenant’s repair report in writing within 14 days. In the response, it must state what action is being taken and the timeframe for this to be done. If the mould or damp has resulted from a structural issue such as a

DAMP & MOULD – WHAT ARE YOUR RESPONSIBILITIES?

MICHELLE NIZIOL

leaking pipe or faulty guttering, the landlord/agent has an obligation to resolve the problem within a reasonable time frame.

Firstly, it is important to ascertain which type of damp you’re dealing with and what it’s being caused by. Tenants should look at whether anything they are doing in the property might be the cause, such as drying clothes indoors without any open windows, not using the bathroom extractor fan where there is one or not opening windows when showering. As well as ventilation it is also important

to adequately heat the property, mould can grow on cold walls and especially behind furniture if it is placed too close to the walls, the air needs to circulate. If mould is present but isn’t particularly bad, it may be possible to simply wipe it away and treat the area with a fungicidal wash to ensure it does not return.

If there is a lot of mould, it may be better to call in an expert.



Due to high demand for premium quality, yet budget-friendly homes, Graven Hill has launched a range of new designs to choose from, each customisable from a menu of high specification fixtures and finishes.

SECURE YOUR DREAM HOME FOR LESS THAN YOU THINK

Graven Hill believes that exceptional homes should be accessible to everyone. To make this possible, every Custom Build New Home is available with Help to Buy. Offering a way to make the dream a reality, for both first-time buyers and existing homeowners.Custom Build New Homes start from £315,000 and Help to Buy is available across the range of two, three, or four-bedroom properties.

BUILT AROUND YOUR NEEDS

With something for a range of budgets, Graven Hill has it all.

Whether you’re hoping to step onto the ladder; looking for a larger home; need to downsize in your retirement years or just want a more accessible and flexible property that’s better suited to your needs, there’s no need to look further than Graven Hill.

Introducing: The Eden and The Avon

The Eden and The Avon are both ideal for first-time buyers, young professionals and families. These high-quality, two-bedroom terraced homes are easy to maintain and have been built with modern living in mind.

Each home comes with parking, a 10-year premier guarantee and fast fibre-optic broadband (subject to supplier’s connection) as standard.

Designed with nature in mind, the Graven Hill site is made up of different character areas, featuring woodland play parks, ponds and boardwalks, making it the ideal location for the modern family.

Help to Buy: making the impossible possible From first-time buyers to those looking for a family home, it is easy to apply for a 20% equity loan from the Government, meaning that only 5% cash deposit is needed, and getting 75% mortgage will cover the rest. For some, the idea of buying a home which ticks all of the boxes is a distant dream, something which can feel impossible to save for. However, the experts at Graven Hill, like to think a little bit differently. The priority has always been to create a community with a range of choice which caters to all needs and budgets – so what are you waiting for?

Get in touch with the sales team at Graven Hill or visit the on-site Marketing Suite to find out more!

Press contacts Nick Brown, [email protected], 07792285486 Laura Bradley, [email protected], 07715376279 ABOUT GRAVEN HILLGraven Hill is the UK’s largest self-build and custom build community. The first-of-its-kind site is based in Bicester and will house up to 1,900 beautiful and unique homes which are due to be built over the next 10 years. The development is set to revolutionise the way in which properties are designed and built by offering a flexible alternative to the usual routes. The plots will be surrounded by open, green spaces including woodland, allotments and a network of cycle and footpaths connecting to the town centre and local transport links, including one-hour train services to London. The village will also have a primary school and retail space. Graven Hill prides itself on making dream homes that are out of the ordinary, a reality for many.

The pioneering project is the vision of Cherwell District Council and spans 188 hectares of former Ministry of Defence land. Cherwell District Council is leading the way with its approach to housing provisions and is the fastest provider of new homes in the UK. For more information visit www.gravenhill.co.uk

YOUR PERFECT NEW HOME, EXACTLY AS YOU WANT IT

MICHELLE NIZIOL

The Avon

The Darwin

The Eden The Tilbury

The Swinbrook



I recall a phone call with a client, expecting their first child and asking if we could get an extension built within the next few weeks before junior arrived. At that moment it dawned on me that there seems to be a common lack of understanding as to the length of time the design process takes. So let me quickly break the process down:

The initial feasibility phase can take several weeks or even months depending upon the complexity of a project. For example, on new developments there are likely to be numerous issues to consider above and beyond those for a simple extension. Once the feasibility phase is complete, the design can be ‘fixed’ and moved on to a Planning submission.

A Planning submission will require existing and proposed drawings, supporting statements, application forms etc. This is usually submitted via the Government Planning Portal. Once submitted, the Planning application will sit with the Council’s Planning Department for 8 weeks, sometimes longer on complicated applications.

The exception to this is that some smaller domestic extensions may not need full Planning Permission and might fall under Permitted Development (a topic for another time). Even if a project is deemed to be a Permitted Development, we always recommend ensuring the paperwork is in place for the future and hence we try to obtain a Lawful Development Certificate.

Once Planning Permission is secured, a project will move on to detailed design and a Building Regulations submission. Again, this can take a few weeks for simple projects or a few months for complicated ones.

Only then does tender, contractor lead in and the construction phase to finally follow.

Beyond the Architect, the design team may need to include Structural Engineers, Mechanical and Electrical Consultants, Landscaping and Arboricultural experts, Ecologists….the list goes on. These all need coordinating and given the appropriate time.

As you can imagine, the extension for the aforementioned client was not delivered before baby arrived! So, if you are embarking on a building project, whether it be a modest extension, a one off house or a larger development, make sure you consider timings and discuss with an expert at the outset.

DAVID BABISTER IS DIRECTOR AT ESPRESSO ARCHITECTURE IN BICESTER.

To contact David email [email protected] or check out the website at http://www.espressoarchitecture.co.uk/ or www.facebook.com/espressoarch/

HOW TO PLAN THE TIMELINE FOR YOUR HOME EXTENSIONS

MICHELLE NIZIOL



Are you over 55 and short of funds, or need some extra cash to fund your retirement, and own your own home? If so, there is a solution that you may not be aware of, and that is to equity release.

WHAT IS EQUITY RELEASE

Equity release is a way of extracting cash out of your property, by effectively taking out a loan, secured by your home. It is only available to people over the age of 55, and is repaid once your property is sold, or upon your death.There are two types of equity release schemes; home reversion and lifetime mortgage.

HOME REVERSION

Under a home reversion scheme, a lender pays you a tax-free lump sum for a percentage of your home. A lifetime tenancy is then created, which protects your residency and freedom to live in the property rent-free for the rest of your life. However, because your lender won’t take hold of their percentage of your property until an undetermined, yet (ideally) lengthy amount of time, the amount the lender actually offers to you at signing will be well below the share’s actual value.

For example, if you sell a 30% stake in a property worth £300,000, in return for a lump sum of £45,000, this cash you receive is at a significant discount to the £90,000 this stake is actually worth, at current market prices. Years later, when you die, if your home is eventually sold for £400,000, the provider would then be entitled to £120,000 – 30% of the proceeds.

This means that home reversion plans are more beneficial if property prices stay flatter, as the difference between what your lender invested and what they end up receiving will be

lower. Conversely, it would be more costly on a property whose value rises substantially.

The amount that you will be offered through this scheme depends on several factors, including:

• The age of the youngest homeowner - you must be 60 or older to apply.

• The valuation of your property - minimum value of £80,000.

• The percentage of the property sold – anywhere up to %100 percent of the home’s value.

• Health and lifestyle of the owners. The poorer your health, the larger your loan amount.

Based on life expectancy, the older you are, the more tax-free funds you will be offered. The reason this is that the lender is likely to receive their share of the property proceeds sooner.

LIFETIME MORTGAGES

The far more common type of equity release scheme is lifetime mortgages. Under this scheme, the loan you receive does not come with a fixed term as with traditional mortgages. Instead, lifetime mortgages are designed to span the rest of your life. Like home reversion schemes, lifetime mortgages allow you to live in your property until you die or move into long-term care. However, unlike home reversion schemes, 100% of the home’s value remains in your name until your death.

Lifetime mortgages come with a fixed interest rate, however unlike traditional mortgages, you won’t pay it off in regular instalments, instead your debt is rolled up. This means the interest is calculated on an ever-increasing total and only repaid once the property is sold. The remaining funds left

A GUIDE TO EQUITY RELEASE SCHEMES

MICHELLE NIZIOL

on your property after your passing will then revert to your beneficiaries. Under this scheme, you are also protected against what’s known as ‘negative equity’, meaning you (or your estate) will never owe more to your lender than the value of the property.

There are four distinct types of lifetime mortgages, all of which are tailored to meet your individual needs. These are enhanced lifetime mortgages, drawdown lifetime mortgages, interest-only lifetime mortgages and voluntary repayment plans.

Enhanced lifetime mortgages, also known as ‘impaired’ lifetime mortgages, is an equity release scheme that bases its lending amount on your health and medical records. As with home reversion schemes, the lending amount increases as your health and life expectancy decreases.

Drawdown lifetime mortgages allow you to release funds from your home as needed by providing a cash reserve facility. By taking a smaller initial lump sum, you will accrue less interest, which means a lower balance, and more equity is retained in your property for future use. This drawdown facility prevents you from leaving unused equity release funds in your bank account, costing you more in interest payments on the loan that it is earning you through interest payments through the bank. This means you are never charged interest on the funds left with the lender, only on the funds you withdraw.

Interest-only lifetime mortgages allow you to pay off your interest accrued in order to maintain an even balance. Under this scheme, if you are able to keep up with these payments throughout the life of your loan, there won’t be any extra balance to repay when it ends, only the amount you first borrowed. This type of plan is popular with people who cannot get a traditional mortgage in retirement, as in reality they work in the same way as residential interest-only mortgages.

Voluntary repayment plans allow you to safeguard your estate and your beneficiary’s inheritance by controlling the balance of your equity release scheme. It does this by allowing you to make periodic repayments of interest and/or capital on your loan. Rather than the interest compounding, these optional partial payment plans allow you to repay up to 15% of the original amount borrowed each year (dependent on the lender) with no penalty.

FINAL THOUGHTS

It is now common for people to spend 20 or more years in retirement. These equity release schemes have given countless people the freedom to enjoy their retirement without the stress or worry of finances. If you find yourself in a similar situation, then an equity release scheme may be the solution for you as well.



BLOXHAM ROAD, BANBURY – S/O

Beds: 2 / Bath: 1 / Price: £104,000

TBanbury is a picturesque market town on the River Cherwell in northern Oxfordshire, on the edge of The Cotswolds.

Steeped in history, with strong connections to Oliver Cromwell and the English Civil War, Banbury boasts some wonderful sights including the impressive bronze statue of the “Fine Lady” from the famous “ride a cock horse” rhyme, set close to the Banbury Cross.

HERON DRIVE, BICESTER

Beds: 2 / Bath: 1 / Price: £245,000

Two bed terraced house, located on the popular Langford Village estate in Bicester is offered with NO CHAIN. New to the market this is an excellent opportunity for a first time buyer or investment landlord looking to add to their portfolio.

The property offers a well-proportioned kitchen/diner and living room on the ground floor. On the first floor is a spacious master bedroom with a re-furbished walk in shower room.

THE CROMWELL, BANBURY – S/O

Beds: 2 / Bath: 1 / Price: £96,000

Longford Park Gardens is set on the edge of the busy market town of Banbury with its historic pubs, an excellent choice of high street stores, supermarkets and a good selection of cafes, bars and restaurants.

Built by Baratt Homes, these stylish new homes come complete with fully-fitted kitchen, oven, hob and extractor, downstairs cloakroom, full gas-fired central heating, double glazing and high-performance insulation throughout. Allocated parking, turfed rear gardens and a 10-year NHBC New Home warranty complete the package.

IMS FEATURED PROPERTIES OF THE MONTH

THE BANESBURY, BANBURY – S/O

Beds: 2 / Bath: 1 / Price: £94,000


Built by Baratt Homes, these stylish new homes come complete with fully-fitted kitchen, oven, hob and extractor, downstairs cloakroom, full gas-fired central heating, double glazing and high-performance insulation throughout. Allocated parking, turfed rear gardens and a 10-year NHBC New Home warranty complete the package.

THE WYKHAM, BANBURY – S/O

Beds: 3 / Bath: 1 / Price: £108,000


Built by Baratt Homes, these stylish new homes come complete with fully-fitted kitchen, oven, hob and extractor, downstairs cloakroom, full gas-fired central heating, double glazing and high-performance insulation throughout.

TAY GARDENS, BICESTER

Beds: 3 / Bath: 1 / Offers in Excess of £425,000

IMS have a charming family home for sale, 5 bedroom detached house with garage, parking and South facing garden, located in the popular Greenwood Holmes estate.This family home has two reception rooms and a study with a w.c on the ground floor and large patio, perfect for entertaining guests at a summer barbecue.

Close by you have a range of amenities, including Kings Meadow primary school, Tesco local, a fish and chip shop and a family friendly pub.

W W W.MICHELLENIZIOL .CO.UK | ENQUIRIES@MICHELLENIZIOL .CO.UK | 01869 927 101

MICHELLE’S REAL ESTATE ROUNDUP / OCTOBER 2019 · If the property is not a new build, and when...

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