Q & A with Kate Faulkner from LBC Property Hour week 13, sponsored by Direct Line Landlord Insurance.

publication date: Mar 31, 2017
author/source: Kate Faulkner, Property Expert and Author of Which? Property Books

This week’s Property Hour featured our special guest Jane King and, as usual, was run by the awesome Clive Bull, thanks to support from Direct Line Landlord Insurance.

We answered plenty of questions on the last show of the series and I’ve featured the Q&As below and given you some additional links to help you if you find yourself in the same boat.

Q – I want to get a mortgage and I hear the term leasehold a lot, what does the 99 years lease mean? I want to leave the property to my children and potentially grandchildren

A – For a great description of the difference between leaseholds and free holds click here. If you want to leave the property to your children on-going then consider the option and cost of extending the lease before you pass it on. Alternatively you could look to purchase a freehold property instead which doesn’t have any time restrictions on it.

Need to extend a lease? Here's how to choose an expert to make the valuation and extend the lease for you.

Q – Are there companies who will provide a mortgage to buy a property abroad?

A – It can be quite difficult because lenders find it difficult to take hold of properties overseas if people default on their payments. It is worth considering a mortgage from a company in the country that you wish to buy in, instead or go to a specialist broker such as Mortgage Overseas or Alexander Hall.

Q – I've got a joint mortgage with my brother and he wants to buy my share in the property, what are our options?

A – You can approach the lender and ask them to take you off the mortgage and increase it by enough to buy you out or you can redeem the existing mortgage and your brother can apply to another lender assuming it is affordable. The only issue you may find is when it comes to stamp duty.

Anything advice relating to mortgages needs to be given by a qualified broker, so make sure you find a good one: read how to choose a mortgage broker and if securing a mortgage, checkout how to secure the right one.

Q – I am selling a property that I've been renting out and will be receiving about £300,000. I want to use it to pay towards my £325,000 residential mortgage, will I be taxed on the capital growth that I've achieved from the rental property?

A – Yes, absolutely. The specific amount will depend on your personal circumstances and any other wealth that you have. Speak to a property tax expert.

If you missed it above, here's my expert checklist on buy-to-let tax and also speak to Rita4Rent if you want someone nearer to London to help you.

Q – What are the property predictions for 2017?

On this week’s finale of the Property Hour, Kate Faulkner talks to Clive Bull about her predications for the rental market in 2017.

Q – My son bought a leasehold flat from a private developer and on all the paperwork it said there would be gas central heating. There is a boiler and radiators but no gas supply to the flat so no heating or hot water. The seller won't respond to our calls or emails and our solicitor and his solicitor won't get involved?

A – The legal company used should be getting involved as if this is the case it potentially wasn't bought as sold so contact them first for advice. If they won’t help (and they should) then go to specialist solicitor with experience in dealing with new build issuesAnother tack to take is that in the legal pack you have it should state on the Property Information Form who the gas supplier was, so it is worth checking that out and also getting in touch with them to find out why the supply isn’t there.

When it comes to making complaints about developers, there is the Consumer Code for Homebuilders.

Q – I'm a first-time buyer and receive a payment £600 per month due to a medical issue with my leg. I'm allowed to use this payment for a number of things but wanted to check whether I can put it towards a mortgage?

A – Yes you can, most lenders will want to know that you will be receiving the money long term but otherwise it will be fine.

If you need help finding a mortgage, especially because your circumstances aren’t ‘standard’ then do contact a mortgage broker here's how to choose one and here is how to secure how to secure the right one.

Q – My daughter and son-in-law are falling out, they have three mortgages on the house, what can they do?

A – The assets can be split up in mediation. From a mortgage point of view there could be an early mortgage repayment penalty but it's vital that whatever happens, the mortgages get paid so the house isn’t repossessed.

If you need a mortgage broker to help here's how to choose one and if you need to sell sharpish, find out how to sell to a professional buyer.


All our information is brought to you by Kate Faulkner, author of Which? Property books and one of the UK's top property experts.
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