What is a Credit Score? What is a Credit Record?

When you apply for a loan, the Credit Provider to enable them to make a decision will compile a credit score. Your credit score is a financial assessment of your credit risk - ie. whether a Credit Provider should lend you money or whether they shouldn't, all based on whether you are deemed as a high or low risk. How this score is devised is kept confidential and is individual to each Credit Provider. However there some common themes with compiling this score and they are as follows:

Credit Score looks at your current and past financial history, plus other personal details, and using mathematics, analyses what type of 'risk' you are.

By 'risk' I mean whether it is likely you'll pay back the money borrowed; whether you can really afford the repayments etc.

Factors that can affect your score include:

* Late or missed payments in the past

* County Court Judgements and arrears

* How much you currently owe - even if all your payments are up to date

* You not being on the electoral roll

* Applying for lots of new credit accounts - this is viewed that you are someone likely to or are getting into financial trouble

* The length of your credit history

* Financial associations - other people listed on your credit file that have bad debts can affect your credit rating

Why Your Score Matters?

Your Credit Scores matters because it is probably the most influential factor used by Credit Providers in deciding whether they will give you a loan/mortgage/other credit.

However, it is the lender who makes the final decision and they may well take in to account reasons for past credit problems. Apart from checking out your financial history, they will also need to look at your occupation; whether you have any equity in your mortgage, your income and savings etc and also your marital status and dependants.

The lower your credit score, the less chance you have of getting credit as a low credit score equals there being a high risk of you not paying your debt back on time.

It also shows whether you are on the electoral roll (which, if you are not, can affect your chances of getting credit as your home address is not 'proved') and any financial associations. A financial association is someone who you have been financially associated with now or in the past. It could be an ex-partner, your mum or dad or even a person who lived at your address before you did and has not been removed from your file.

If the person or people named as a financial association are not associated to you - ie. you have no joint financial obligations and the person is not living with you - then you can request that the credit reference agency have the details removed.

Keeping them on your file - particularly if they have experienced financial difficulty in the past - can have an adverse affect on you getting any credit.

When looking at approving a loan, Credit Providers will also look to see how much you are paying out on other existing debts - if you have lots, they may well turn you down for a loan even if your credit rating isn't that low. This is as they may feel that you would be financially overstretched with a further debt to service.

Your credit record - which is held by all the major credit referencing agencies such as Experian and Equifax and Call Credit plc. When you apply for a loan, the Credit Provider will carry out a credit search - and will give you a credit score based on the information within your file.

Common Consumer Complaints with Estate Agents

The UK still does not a have a system of regulating Estate Agents. Anybody can set up shop as an agent. Halifax Estate Agents and others are calling for regulation and so they should. Please see below the common problems and complaint areas:

• Putting excessive pressure on customers to use their mortgages brokers and solicitors to enable them to earn even more commission.
• Unfair contracts – The use of a ‘Sole selling right’ clause which results in the clients paying commission even if they sell or let to a friend! This is not the same as a 'Sole Agent' contract where the client can sell or let themselves and not pay the commission.
• Agents refusing to perform viewings!
• Staff with no experience – Sending someone who has no experience in negotiating or knowledge of the marketed property.
• No feedback after viewings – No suggestions or advice on marketing effectively.
• The Agent not effectively managing tenants
• Misuse of display boards - Displaying 'for sale' and 'to let' boards at properties not on their books, and even taking down competitor’s boards is very common. This is illegal practice and anyone who is aware of this should inform Trading Standards.
• Not advertising the property effectively and allowing the property to go ‘stale’.
• Overvaluing properties. Many agents will overvalue a potential client’s property in order to obtain the instruction.
• Failure to inform client of ALL offers - This is another illegal practice, as an agent must tell the client of all offers.
  

REPORT DISMISSES NEGATIVE EFFECTS OF IMMIGRATION AND EQUITIES ON BUY-TO-LET MARKET

Fears that a thriving equity market and a drop-off in immigration from other European
Union countries may bring about a downturn in the buy-to-let sector were dismissed
today in a report published by a specialist lender that Easy4life loans & Mortgages
deals with on a regular basis.

In the latest of its six-monthly reports on buy-to-let, the lender says that immigration
from other EU countries, which has given significant support to the buy-to-let sector in
some parts of the country by providing a ready supply of new tenants, is unlikely, as
some have predicted, to decline over the next few years.

The lender also says that the revival which the equities market has experienced
over the past 18 months does not present a threat to investment in buy-to-let, as the
two markets carry very different profiles in terms of risk and liquidity.


Immigration

According to the government’s Accession Monitoring Report which was published in
August, 427,000 workers from Eastern Europe registered to work in the UK between
May 2004 and June 2006. When the number of self-employed is added, the true figure
is believed to be closer to 600,000.
The Lender states “Most of these people are renting and, in some parts of the country,
they form an important part of the rental community for buy-to-let properties. This has
been particularly beneficial for landlords in these areas, as it has helped to keep void
periods to a minimum whilst maintaining rents at a reasonable level,”
Recent government restrictions on immigration from Bulgaria and Romania, which join
the EU next year, coupled with a drop-off in the number of workers coming from
Poland, could lead to a downturn in the buy-to-let sector in areas where large numbers
of foreign workers are concentrated. However, the Lender does state that this
scenario is extremely unlikely.
“Young foreign workers have provided substantial support to the UK economy over the
past couple of years and, as net tax contributors, they take little back in the way of
support or benefits,”
“If the number of people coming to the UK does ever begin to fall off, it is likely the
government will alter regulations to enable workers from other European Union
countries to take their place”.


Equities

In 2002, equity prices fell by 23.7%, whilst house prices grew by 25.3%. The slow
recovery in equity markets experienced since the downturn has been regarded as one
of the factors contributing to the rapid expansion of the buy-to-let sector, with some
seeing investments in bricks and mortar as having greater long-term benefits than
putting money into shares.
However, since April 2005, equity prices have been growing faster than those of
houses. In the past year to October 2006, Nationwide figures show that the average
house price increased by 8.0%, whilst equity prices grew by 14.7%. This reversal is
being seen in some quarters as an indication that investment may now flow back
towards the stock market in preference to the buy-to-let sector.
The lender goes on to state “If equities continue to outperform property over
the next couple of years, It would not be surprised if this has a slight downward effect
on buy-to-let purchases, but they think this would be much smaller than some might
expect, as professional landlords are unlikely to pull back,”
“Equities are very liquid investments and decisions can be taken at very short notice
on whether you want to buy or sell. This contrasts with the buy-to-let market, where
purchases are generally made with a ten or fifteen year outlook for returns.
“Also, it is the relatively easy access to funding, providing you have the minimum
deposit and are able to cover fees, coupled with the UK’s fondness for investing in
property that is one of the main factors behind the growth of the buy-to-let sector.
The Lender further points out that share prices have only just returned to the level
they were at in 2000, having previously reached a low in 2003. So, whilst the current
rise in the fortunes of the equity sector may encourage some investors to direct future
investments into equities rather than housing, it is likely that many investors will need
to see a sustained period of positive growth before feeling confident enough to switch
their allegiances.

buy-to-let market report by specialist lender (20 Buy to let Hot Spots)

A report on the buy-to-let market published by a specialist UK lender points towards continued growth in the sector and highlights a number of UK hotspots where investors currently see the greatest potential from property investment.
Of the 65 towns and cities in the report, the following 20 are listed as those where the
most profitable investments can often be found at present:

• Aberdeen
• Belfast
• Bournemouth
• Brighton/Hove
• Dundee
• Exeter
• Glasgow
• London
• Middlesbrough
• Newport
• Nottingham
• Peterborough
• Preston
• Sheffield
• Southampton
• Stoke
• Sunderland
• Swindon
• Walsall
• Watford

The lender said that “Investment in buy-to-let property has been particularly strong over the past six months. In the first half of this year, lenders advanced £17.5 billion on 152,500 buy-to-let mortgages, surpassing all records since the market took off ten years ago, Cities such as London are now back on the agenda for many property investors, as house prices have not risen as quickly here as they have in many other parts of thecountry over the past few years. The increase in people coming to work in the UK from other EU countries, coupledwith the growth of universities, has also helped to expand the number of tenants looking for properties, giving landlords new opportunities for profitable property investment.”

Reclaim your Bank Charges- Bank Accounts & Credit Cards

Reclaim your Bank Charges - Business and Personal bank and Credit Cards

Banks and credit card providers charge penalties if you breach your Account terms by defaulting, making a late payment, going overdrawn, returning a bounced cheque, or if a direct debit or standing order fails. It has been ruled by the Office of Fair Trading (OFT) that they are not allowed to do this.They are allowed to cover the administrative costs that arise from from you breaching your terms but only by as much as their reasonable charges.

However the question that has been asked is how much can it cost for a computer to print off an automated letter, or to not process a direct debit? Not £25 to £40!As many of you will have heard, the OFT ruling has decided that banks and credit card companies should charge no more than £12 for such breaches of contract. However, the only reason they set this figure was: "In order to swiftly reduce charges and avoid heavy-handed regulation." In other words, the charge is still too high, but they just quickly set a limit to help all consumers immediately. If they delayed over regulation instead, we'd take longer to see the benefits. Also, it would cost businesses money to implement new regulations, and those costs would filter ultimately down to all consumers.
Since the OFT report, many people have already successfully recovered all of the charges plus interest that occurred in the past six years. (Six years is as far back as you can go in the courts.) You can do this too, whether you're claiming against your bank's charges or your credit card provider's.
If you email me, I will be happy to send you a template letter for your use. If you are unsure of the process or would like me to handle this for you. then this can be done on a no-win-no fee basis.

email: info@easy4life.com

badtenants.co.uk - a service for landlords

A West Midlands team of Landlords have set up a website call badtenants.co.uk to assist landlords in obtaining informartion and providing others with information on bad tenants.

The team state that "Landlords should have information about potential bad tenants available to them at the click of a button. We believe that Landlords should have the right to warn other Landlords about tenants who have damaged their property, or caused other similar damages. We do not believe that such people should be allowed to keep moving from place to place causing havoc.
This information can be used to make sure that none of your current tenants, or any new tenants that you take on have a history of causing damage to property, or such.
You can also use the services of this website then to file your own complaints about tenants, so that other Landlords can benefit from this knowledge.
Tenants will be listed alphabetically, by last known location, and also by date of action taken by the landlord. This should make finding the information you need, quick and easy."


http://www.badtenants.co.uk

WITH PROFITS & INVESTMENT BONDS

WITH PROFITS & INVESTMENT BONDS

Literally billions of pounds remain invested in With Profits Funds, as they were the investment of choice for many Independent Financial Advisers & Bank based Advisers over several decades.

Investments issued by Life Assurance Companies (as opposed to their Unit Trust Divisions) such as With Profit Bonds are generally highly inefficient from a tax point of view. They are ideally suited to individuals paying Income Tax at 40% and habitually utilising their annual Capital Gains Tax (CGT) Allowances.

However, the vast majority of With Profit Bond Investors are not in that category. All income and gains within the Bond are taxable on the Provider and you are unable to use your annual CGT Allowance, which currently allows you to draw profits of up to £8,800 per annum tax-free, to offset this tax.

A recent report, commissioned by the Government and drawn-up by Industry Expert, Ron Sandler, concluded that there were a series of concerns about with-profits products from the perspective of competition and efficiency. In particular, the review highlighted the opacity of with-profits in terms of being able to ascertain the true returns on the funds invested. The review also focused on value-for-money, in so far as charges are not routinely reported to investors in the way they are for other investment products. The ability for the Provider to make unilateral decisions on bonus payouts was also criticised.

From double digit bonuses in the late 1980s and early 1990s returns have in some cases collapsed. Some Bonds issued by previously leading With Profits Providers are paying nothing in the way of Annual Bonuses and many others are paying less than 1% per annum. Even the current market leaders are paying no more than 3.25% per annum.With some Bonds, following the recent strong performance of share markets, there is no longer a Market Value Reduction (MVR) (some provider prefer to call this a Market Value Adjustment (MVA)) being applied.

With other Bonds the MVR has been reduced, but not removed altogether. Unfortunately, however, a number of Providers are continuing to maintain high MVRs. Many in this latter category have not participated in the recovery in share markets because the Actuary has forced the Investment Managers to substantially reduce the exposure to this asset class. In this case there is a "double whammy" - the likelihood that the MVR may never be removed and continuing poor long-term returns, meaning little or no profits to distribute by way of bonuses.

With the relatively high Stockmarket content to the underlying portfolio, which is what gives rise to the MVRs, With Profits Funds are generally outside of the risk profile of many Investors.

If you believe that you have been mis-sold your investment bond – please contact me to start your financial claim on a no-win no fee basis. We charge a flat fee of 10% (inclusive) on any compensation awarded. No other hidden costs.

Email: info@easy4life.com

Finance for Leasehold Retail Businesses - Leasehold Business Loans

A leasehold retail business is one that is operated by the leaseholder, who rents his premises from the landlord (freeholder). A newsagent, pub, fish and chip shop or other leasehold business can provide the purchaser with source of income and usually a family home. It offers a relatively cheap way to solve two of life's basic challenges: finding shelter and a livelihood - which is precisely why the UK is so densely populated with these businesses.

Most retail business premises are held on a 21-year lease (or less) at a commercial rent, and the leaseholder is usually protected by the Landlord&Tenant Act 1954, which safeguards renewal. In essence, however, a leaseholder is a "tenant" renting the premises to carry on retail business.

The real value of a leasehold business is determined primarily by the volume of turnover. Other factors such as level of rent, location and competition do have a significant bearing on value, but income is ultimately the most important factor. It must also be remembered that even the best-equipped business, set in a prime location, will be worth only fraction of the going-concern value, if it is closed.

At least 25% of them change ownership each year, so it is probable that every week around 20,000 buyers are looking for a commercial loan in a financial marketplace where there are precious few sources of finance.

Similarly, it would be reasonable to assume that many existing owners of retail businesses will require a commercial loan during the course of a trading year in order to either buy out a partner, discharge an outstanding VAT bill or refurbish their premises and will usually encounter rasing funds from the usual High Street sources.

easy4life Loans and mortgages can provide you with access to leasehold business loans for variety of leasehold businesses ranging from Retail Outlets such as general stores, newsagents, off-licenses, post office stores, DIY shops, Dry Cleaners, Drug Stores to Catering Businesses such as Pizza/pasta/kebab/fish & chip shops, takeaways, cafes, snack bars and all other types of fast food outlets. Finance is also available for Pubs, Wine Bars, Bistros and types of restaurants.


The lending terms are:

Max loan considered is £250,000 or 60% of purchase price or valuation whichever is lower. The facility will be payable over half the unexpired term of the lease or a maximum of 120 months.
If additional security is available then 100% of purchase price is available with a lower start monthly payment plan.
For refinance of existing business the maximum that will be considered is £100,000 or 50% of the valuation whichever is the lower.

Please contact me with all enquiries on easy4life@gmail.com / mobile: 07974 650 751.

DEBT REDUCTION ADVICE IS FREE

Towards Financial Intelligence- Debt Reduction Advice and Counselling by easy4life

Having worked in finance for most of my career -I decided it was best to share some experience about money management with this group. It is frightening to see how many people do not know how to manage their own money effectively. There are many companies out there that instead of encouraging better money management are encouraging people into more debt by encouraging people to let them handle their debt...For a Fee!

Please if you know anyone who is in personal debt, discourage them from going down this route! The only person who should be really handling their debt is themselves or if there is help, then it should be free..not putting the person in more DEBT!. Contact me, or point a friend to contact me for my personal debt guide management guide first before they commit to doing such a thing.

Safaraz Ali
info@easy4life.com

easy4life debt management programme

INTEREST STOPPED OR FROZEN
*
95% OF YOUR DEBTS COULD BE WRITTEN OFF
*
A PAYMENT YOU CAN AFFORD
*
FREE ADVICE
*
DEBT STRESS GONE IN 24 HOURS
*
IVA
*
DEBT MANAGEMENT
*
CONSOLIDATE YOUR DEBTS
*
Get your life back on track TODAY
*
Tenants welcome

Please contact me on easy4life@gmail.com or 07974650751

Your Credit Report & Information held on you.

There are three main credit reference agencies that all lenders consult before they make any lending decision, Experian and Equifax and also Call Credit. They record a number of details about you based on your current and previous addresses. This includes the following:

1. Electoral (Voters) Roll - whether you are on the Voter's roll. Some lenders have this as a basic requirement before they can lend.

2. County Court Judgments (CCJs) - These arise when you have been taken to court by a debtor to enforce payment of a debt and the debtor received a judgement in his favour against you. The court hold this information for six years from the date of the judgment. They also record if you subsequently paid the judgement.

3. Individual Voluntary Arrangements (IVAs) & Bankruptcy- This is where you are unable to pay your debts. Once you have been made bankrupt and the debts have been settled then you become a discharged bankrupt.

4. Credit Accounts - these are all your loan accounts that have been active in the last six years and whether you have ever defaulted on them. Typical accounts are your mortgage account, credit and store card accounts and personal loans.

5. Repossessions - details of any house repossessions that have ever occurred.

6. Previous searches - these are previous credit searches by other lenders that you have made a credit application with.

7. Gone Away Information Network (GAIN) - this is where you have moved home and not forwarded on the new address and not satisfied the debt.

8. Credit Industry Fraud Avoidance System (CIFAS) - this is where the lender suspects fraud and just flags it up.

Your credit file dictates the mortgage you can get. The key factors are CCJs or defaults. If you have any CCJs or defaults you will be restricted to adverse credit lenders who charge higher interest rates. If you have an IVA, repossession or GAIN on your file you still will be able to get a mortgage depending on when you had debt problems but your choice would be limited.

There is one key thing you should remember when filling out any application form or passing on any information to your Broker - do not lie! The credit reference agencies are becoming more and more sophisticated. They log every bit of information you put on every credit application and if you submit an application that was slightly different from a previous application they will flag it up.

SELL YOUR ENDOWMENT POLICY

Don't Surrender - Get More!

If you are interested in surrendering your endowment policy - DON'T. Try selling it because you could get up to 45% more than the surrender value offered by the life office.

As a Broker and Finance Specialist I aim to get you the best price for your endowment policy by offering it to over 12 potential buyers ensuring that one stop gets your endowment policy the maximum exposure, which saves you the time in ringing numerous companies and should ensure that you get the best price for your endowment policy.

If your policy is saleable, this almost always ensures a higher price than the surrender value offered by the life office because the surrender value almost always incurs penalties which do not occur by selling your endowment policy.

Unlike some Traded Endowment Companies who are owned by market makers and are not totally independent - my aim is to get you the highest price for your endowment policy.
I will assess any traditional with profits endowment or whole of life policy offered to me but I am especially interested in policies from:

Britannic, CIS, Clerical Medical, Commercial Union, Friends Provident, General Accident, Irish Life, Legal and General, Liverpool Victoria, Norwich Union, Pearl, Prudential, Royal London, Scottish Amicable, Scottish Mutual, Scottish Widows, Standard Life.

If your policy is tradeable, you will have the opportunity to forward your full details to me and I will aim to get you the best market price within 72 hours.


Please email me for list of information that is required.

DEALING WITH PERSONAL DEBT - A Guide Published by Safaraz Ali, easy4life loans and mortgages

Dealing With Personal Debt by Safaraz Ali

I have produced a guide to dealing with personal debt. DO NOT CONTACT ANY DEBT COUNSELLOR / ADVISER UNTIL YOU HAVE READ MY GUIDE. PLEASE EMAIL ME AND I WILL FORWARD THIS GUIDE TO YOU. IT CAN SAVE YOU THOUSANDS!!!

The contents and brief guide includes a step by step guide including template letters as listed below:

STEP 1 - Contact all Creditors
STEP 2 - Decide priorities
STEP 3 - Prepare financial statement
STEP 4 - Maximise income
STEP 5 - Review expenditure
STEP 6 - Negotiate with priority creditors
STEP 7 - Negotiate with secondary creditors
Court proceeding
Conclusions- the future
Some DOs and DON'Ts

Property Post International article written By Safaraz Ali

Have you claimed your endowment compensation?

TIME is running out to claim compensation if you were mis-sold a mortgage, states Sajid Hussain, of Birmingham based Endowment Claims UK in an exclusive interview with the Property Post International.

Millions of mortgage borrowers face shortfalls on their home loans at maturity if they miss the looming deadlines for seeking redress. Mostly all the endowment companies have introduced deadlines after which mis-selling complaints will be outlawed.

Nationwide Building Society became the latest major institution to come clean over endowments when it recently admitted that policyholders who bought contracts via their branches are being timebarred.
Along with Legal & General and the Prudential it had consistently pledged not to impose timebars. Recently L&G reconsidered its position and has decided to begin outlawing complaints from September.

Elsewhere, Friends Provident and the companies acquired by Resolution Life, including Britannic Assurance, Royal & Sun Alliance, Alba Life and Swiss Life began timebarring as long ago as 2003. Guardian began to introduce timebars in 2004.

However, the big tidal wave of timebars, which is expected to trigger an enormous surge of complaints via endowment specialist companies such as Endowment Complaints UK begins this May, when the first Standard Life deadlines loom, followed rapidly by timebars at Norwich Union and Legal & General.

Some 155,000 Norwich Union customers, 13% of mortgage endowment holders, will lose the right to claim compensation this year, with 55,000 (just over half) of CIS similarly outlawed by the end of the year.

But the biggest group of time-barred customers will be the 428,000 Standard Life policyholders who will lose the right to complain by December 31.

Almost all companies give six months notice of their intention to timebar complaints three years after the customer is sent a so-called red letter, notifying them of the possibility of a serious shortfall.

Companies facing the largest number of customers with shortfalls include Standard Life, Friends Provident, Abbey National Life, and Alba Life where nine out of 10 contracts are facing big shortfalls.

The clock's ticking: there is a deadline on endowment mis-selling complaints

The issue of time-barring is controversial. Endowment Complaints UK argue the time limits are "grossly unfair" on policyholders and that widespread consumer ignorance could leave millions missing out.

Sajid Hussain is concerned that homebuyers will not understand the implications of warning letters, and will miss the chance for ever to make good their mortgage shortfalls. "Companies are not being fair to customers and in many cases are giving very misleading information."
"Consumers are losing valuable rights to claim compensation on the basis of letters which are legally unsafe," Sajid says. "In any other situation, if someone is losing a legal right to claim compensation then that notice must be served on them in person. All these institutions have to be able to prove is that the letters were posted."

The Financial Services Authority has laid down rigid guidelines which require firms to ensure that policyholders must receive a warning at least six months before the date of the time-bar, and that the warnings are clear and prominent. A number of firms have already been fined following their mishandling of endowment customers.

Sajid Hussain of Endowment Complaints UK, says: "The FSA wants companies to resolve any disputes as quickly as possible. This is where Endowment Complaints can make the whole process of complaining easy, stress free and in the best interest of the customers."

Endowment complaints UK can assist in cases where even the endowmnt has been surrendered or is no longer being used for mortgage purposes. They can in many cases assist in obtaining up to 35% more than the surrender value offered by the endowment provider.

How to complain Endowment Compensation UK are a based specialist Financial Services Claims Company who have claimed more than £650,000 worth of compensation for their clients on an No Win No Fee Basis and they can be contacted on 0121 523 9699 7 days a week 9.00am to 9.00pm.

10 Things You Must Ask Before Buying Your Overseas Property-

Considering a property purchase overseas?

A quick quide for you to read before you sign or commit to anything- Please make sure you have confirmed:

1) Who actually owns the property. Please, please don't take for granted that the person trying to sell you the piece of real estate...actually owns the piece of real estate. Verify title using your own (not the property developer's) attorney. I would also strongly suggest you invest in title insurance. It's not expensive.

2) The developer's background and experience. Ask what else he's done. Go to see his other projects if possible.

3) The development timeframe. What is the schedule for planned infrastructure and improvements? Does it fit in with yourown time scales

4) The developer's capital adequacy. Does the developer have the resources and financial resources to do what he's promising? This is more important if no infrastructure is yet in place.

5) The plan for basic utilities - electricity and water. If these services are not in place...when will they be...and where will they come from

6) The distance from an improved major road.

7) Plans for the homeowners\' association...and the related costs to you.

8) Any build requirements and other owners covenants. A build requirement isn't a bad thing...but you don't want to commit to building a house in 12 or 24 months without realising it.

9.) All associated carrying costs (property taxes, other fees, etc.).

10.) If your physical presence is required for closing. If it is, you may want to prepare a power of attorney so someone can stand in for you.

Property Post International Article - Changes to Home Information Packs

The news story was published by Property Post who contacted me tor my comments on the changes to the Home Information Pack. Please see the full article below:

No more Home Information Packs?

In June 2007 it will become compulsory for anyone in England and Wales who decides to sell a house or flat to put together a home information pack, which will be given to prospective buyers. Since first announcing the packs, the government has made major changes to the rules about what they will contain. One of the most controversial elements, the home condition report, has been dropped, while energy ratings for the property have been introduced.

Commenting on the government’s change of policy on home information packs (HIPs), Paul Marsh, Law Society deputy vice president and spokesman on HIPs, says:
”This is a welcome decision. The Law Society has consistently opposed compulsory home condition reports (HCRs), on the grounds that they would disrupt the house buying process because buyers could not sensibly rely on a survey commissioned and paid for by the seller.

”The revised form of HIP without the mandatory HCR could bring real benefits for consumers. The Society has long advocated sellers preparing as much information as they can at an early stage so that the transaction can move quickly once a buyer is found. The revised form of HIP will build on the work the Society has done.

”The Law Society will continue to work constructively with the government in the lead up to the launch of HIPs and to help shape the scheme to ensure that it will operate in the interests of the public.”

Safaraz Ali, head of Birmingham based - easy4life loans and mortgages, said that the change had caused the Government to lose face, though he stressed that he always said that there would be a shortage of qualified inspectors to meet the initial deadline. He also added that there was “little benefit in transferring the expense of the legal searches from the buyer to the seller.” The

Association of Home Information Pack Providers (AHIPP) said that there would be consumer demand for the HCR since inspectors would still be needed to carry out compulsory energy performance checks.

The new changes will decrease the financial burden on homeowners who would have likely dished out anywhere between £600 to £1000 for HIPs under the previous plan. Without the inclusion of HCRs, the cost will be around £200-£300.

You will, however, still have to put together title deeds and local authority searches, in addition to the standard questions your potential buyers may have. You will also be required to provide Energy Performance Certificates (EPCs), which will need to be conducted by a Home Inspector, so you may want to consider including an HCR.

By providing such information upfront, you may save yourself valuable time. However, it is possible that potential buyers may want a second opinion to double check what you’ve done.

If fewer people are selling because of the change in the system, house prices could go up and you could make a tidy profit.

If you’re looking to purchase a home, HIP law may work to your benefit. Buyers will be required to provide you with certain documentation upfront, saving you time and money. Mandatory Energy Performance Certificates (EPCs) will let you know how energy efficient the home is and how any problems can be improved upon.

The Energy Saving Trust estimates that following the advice on an EPC could save the average homeowner up to £300 a year on fuel bills – a hefty packet and it’s good for the environment!

Unfortunately, with the change in law, you’ll still be stuck with the costs for HCRs, which could add up if you are looking at multiple properties. But remember that any sensible buyer will want to perform extra checks of their own anyway.

In addition, changes in property law and too few qualified Home Inspectors means that less people will be willing to sell, or could be waiting in line to get a certified person to provide an EPC. Fewer houses on the market may mean that house prices could go up.

The good news is that once people get used to the changes, market prices should stabilise and you’ll get more information from the seller upfront without having to hunt for it yourself.

Environmental policies for businesses

More and more businesses are asking their suppliers / customers to see an environmental policy statement to comply with the requirement of internal quality standards e. ISO 14001.

Why are they asking for one?

This is because the company you are contracting with is likely to have ISO 14001 accreditation, or similar management system. On requirement of ISO 14001 is to employ businesses that provide sufficient resources to minimise their impact on the environment.

What you have to do?

In most cases, it really does not have matter much what is contained in the statement. Environmental statement are not like health and safety policies as there is no legal requirement to complete one nor is there any any legal minimum requirements of what it should contain.
Any policy document that you produce contain reference to ISO 14001 at some point. Do not over commit or even commit to anything, so it is best to avoid stating that you will achieve the standard by a certain time.

The best advice on this matter is to keep it simple and do not over commit to too much change and also make reference to the standard without committing to achieving accreditation.

AN opinion on valuations after HIP (Home Information Pack) day.

There has not yet been a definitive comment from lenders as to whether they will choose to use the information in the Home Condition Report (HCR) to count towards a valuation together with an automated valuation.

The fact is the HCR comments in some detail on the ‘fabric’ of the property and contains a rebuild cost, it is merely missing the valuers opinion.

Some possible reasons why a Lender may decide not to use this include:

(a) The interpretation of the report is labour intensive unless this is done by an intelligent scoring system which may be uneconomical for the smaller lenders.

(b) If the lender securitises (sells on) it’s loan book periodically, the value of this book may be lower without a full valuation.

(c) High loan to value loans represent a higher risk to the lender and a physical valuation is regarded as more secure (although some evidence suggests that the AVM (automated or desk top valuation) is just as accurate)

(d) Some properties (in rural areas for example) have too few comparables locally to be valued from a desk top.

(e) Lenders often employ their own valuers and make a profit from the valuation itself.


So what could lenders do to remove the need for a full valuation in addition to the HCR?

(a) Take a pragmatic view on low loan to values

(b) Make more use of ‘drive bys’ or a stand alone valuation by a qualified valuer to add a valuation to the HCR information

(c) Use an automated valuation model supported by audit via sample physical valuations

In other countries where the equivalent of the HIP has been introduced a valuation has become an inclusive part of the HIP. A valuation module has already been proposed for Home Inspectors but this would depend on lenders recognising this as an appropriate qualification.

So where does that leave prospective providers of HIPS and th rest of us?

For the time being we have to assume that a physical valuation will be required on a reasonably high proportion of properties in addition to the HCR. As lenders unveil their post HIP model naturally there will be competitive pressure on them to either cheapen or remove valuations – essentially lender A does not require valuation, lender B does – more business flows to lender A and lender B will have to follow the pack.

Housing Act 2004 - HMO licensing

Housing Act 2004 - HMO licensing

The Housing Act introduces two new licensing regimes for private rented properties. There is a new requirement for sellers or estate agents to produce a home information pack before marketing any residential property for sale along with provision for an ombudsman scheme for estate agents. The Act makes other provision about housing, including changing the right to buy scheme, strengthening the rights of park home owners, extending the power of the Housing Corporation to give social housing grant to non-registered social landlords and enabling local authorities to secure occupation of long-term empty private sector homes. It also establishes tenancy deposit schemes to safeguard deposits paid in connection with assured shorthold tenancies. Finally, it requires local housing authorities to assess the accommodation needs of Gypsies and travellers in their area, and produce a strategy on how these needs can be met.Although the Housing Act covers various housing issues, the basis of this brief is to provide more information on HMOs (Houses of Multiple Occupancy) and how it effects my clients and other Landlords . This part of the Act comes into effect in April 2006 and it only affects properties in England and Wales. The Welsh will be implementing the legislation after England and cannot give a specific date as yet. Scotland and Northern Ireland have their own legislation. DefinitionAs from October, the definition of an HMO became:A building, or part of a building which is entirely occupied by more than one household and in which more than one household shares an amenity (or the building lacks an amenity) such as a bathroom, toilet or cooking facilities; or,Which is occupied by more than one household and which is a converted building which does not entirely comprise self contained flats (whether or not there is also a sharing or lack of amenities); orWhich comprises entirely of converted self contained flats and the standard of conversion does not meet, at a minimum, that required by the 1991 Building Regulation and more than one third of the flats are occupied under short tenancies.And is ‘occupied’ by more than one household:- as their only or main residence, or, - as a refuge by persons escaping domestic violence, or, - during term time by students, or,- for some other purpose that is prescribed in regulations.And the households comprise:- Families (including foster children)and current domestic employees- Single persons - Co-habiting couples (whether or not of the opposite sex).Certain types of buildings will not be HMOs for the purpose of the Act, other than Part one Housing Health and Safety Rating System (HHSRS) and are, therefore, not subject to licensing. These include those:Buildings or parts of buildings, occupied by no more than two households each of which comprise a single person (i.e. two person flat sharers’).Building occupied by a resident landlord with up to 2 tenants.Managed or owned by a public body (such as the police or the NHS) or an LHA or a Registered Social Landlord.Where the residential accommodation is ancillary to the principal use of the building e.g. religious establishments, conference centres etc.Student halls of residence, where the education establishment has signed up to an Approved Code of Practice.Buildings regulated otherwise than under the Act, such as care homes, bail hostels etc, and the description of which are specified in regulations.Buildings entirely occupied by freeholders or long leaseholders.Compulsory Registration as HMOs.There are certain categories of HMOs that must be licensed by Local Housing Authorities (LHAs) and these comprise of three storeys or more and are occupied by five or more persons, who comprise two or more households. In calculating three storeys, regard should be had to attic or basement accommodation used, or capable of being used, for residential purposes. It is also intended that any part of a building not used for residential purposes, such as commercial premises on the ground or upper floor of a building, will form part of the HMO for determining the number of storeys, but shall be excluded for all other purposes. Basements in purely commercial use will not be included.A LHA can make an additional licensing scheme that may apply to HMOs (other than those that are exempt from licensing/ definition or subject to mandatory licensing) in its area, or any part of it. The additional licensing scheme may apply to such categories of HMOs as the LHA considers appropriate.

Fines The licence holder or manager of an HMO who allows it to be occupied by more persons than are permitted under the licence commits an offence and can be fined up to £20,000. If that person otherwise breaches or fails to comply with a condition of the licence he will also commit an offence and may be fined up to a maximum of £5,000. CessationA licence may be revoked when a house/property ceases to be an HMO. It is also ends automatically after 5 years or after the period specified in the licence (if that is different).A licence ceases to be in force on the death of a licence holder and for the first three months following the death of that person no licence is required as if a temporary exemption notice had been issued and was in force.Civic Government (Scotland) Act 1982 (Licensing of Houses in Multiple Occupation) Order 2000This differs from the Housing Act 2004 in that it was introduced from October 2000. The definition is:A house is an HMO if it is the only or principal residence of three or more qualifying persons from three or more families.FinesIt is a criminal offence to operate an HMO without a licence. The maximum penalty is level 5 (currently £5000).Information taken from the Scottish Executive website.The Housing (NI) Order 2003Definition of House in Multiple OccupationThe Housing (NI) Order 2003 revised and clarified the definition of HMO to;"A house occupied by more than 2 qualifying persons, being persons who are not allmembers of the same family".The person registered as the manager of the HMO must be resident in Northern Ireland.Information taken from the Northern Ireland Housing Executive website.

Information taken from
http://www.opsi.gov.uk

Have you invested in a poorly performing bond?

There are many individuals who have invested in bonds, hoping that they would provide a guaranteed income and /or capital growth.
Most are now finding that they have next to nothing as a return on their investment and even in some cases that they have lost some of their initial capital.

The following is a list of bonds that have been commonly mis-sold:

a) Fixed term Investment bonds
b) Growth Bonds
c) High Income Bonds
d) Guaranteed Investment bonds
e) Stock Market Guaranted Bonds
f) Capital Investment Bonds

I work on a no win, no fee basis and will put in a comprehensive complaint that in the majority of cases will win you compensation. You seriously have nothing to lose and potentially £1,000s to gain. If you also unfortunate enough to have a market value adjuster / market value reduction applied to your investment please contact me to help you put in a professional claim for compensation. Safaraz Ali - 07974 650 751.

To Fail in property investment?

These are some reasons why some property investors fail before they even start:

Many of the experts say you can't lose if you put your money into Bricks & Mortar. This statement is not true. Many of you are aware and/or remember when these sorts of phrases where commonly thrown around in the boom/bust days. However regardles of the state of the housing market-hundreds of investors who have lost their savings through property investment will tell you a different story. There is no such thing as a perfect investment - including property. A successful property investor will learn the reasons why some fail in property and will learn from others mistakes.

This is my personal views on why some fail:

1) "Lack of investment - time wise!!! "The main complaint is that the would-be investor has a job and family and therefore very little time to devote to this investment opportunity. The truth is, if they cut down on wasted time, such as watching television, or surfing the Internet, they would have the time to put into creating financial independence for them and their family in the future.

2) "They don't know anything about it" The excuse is that the would-be investor doesn’t have the knowledge to get into this business. The reality is that most people who have investigated n property investment would have done some study or talked to successful people. The best way to learn is to read books, or take seminars or join up courses. The other aspect to enlist is the help of others. You don’t have to know everything yourself, but you need to have people you can call on who will help you while getting started. Please don't take this to the extreme- just take key ideas and do you own research, please don't do what I have done to me where people have just sat back and got me to do all the donkey work!

3) "Money makes money and I don't have any " The complaint is that you need money to make more money. The truth is that if you find the right property deal, the money will find you. Lack of funds is never an issue with the experienced investor. Lack of a good deal, however, is. If you can find a good deal and negotiate a good price on a property there will be plenty of people willing to put up the money. There is money to be made from sourcing property and introducing this to established investors. Speak to me if you have any properties you can obtain below market value and i will go through your alternatives with you!

4) "My credit record is not any good- who will give me a mortgage" The excuse is that you need good credit to buy houses. The reality is that good credit does help, but you don’t need it if you want to make money in property investment. There are other options- You can always use a partner with good credit to get into investment howver i can truthfully state that my work as a impartial mortgage broker dealing with over 60 lenders I can assure you that I can obtain a mortgage/ loan for you. It won't even cost you any extra for me to do this for you- just call me 07974650751.

5) "There is too much competition" People often make the same excuse when thinking of busines ideas- this is usually never the case . The truth is that there are far more deals available than people. At any time there are many properties available in the marketplace, waiting for the right investor. The reality is that most people who say they are investors simply sit around waiting for a property to pop up. Don’t be one of these people. Go out and create your own opportunities and make your own deals.

6) "The estate agents are too hard to deal with" A common complaint is that estate agents don’t like cooperating with property investors. The truth is that if you find the right estate agent, they can be your best asset in your investing business. The estate agent is there to make his or her commission. If you are successful they will be involved in the deals you do. This means they will create income for themselves, while helping you. Make sure you have one or two agents you work with and let them know you will be giving them business over and over again, as you increase your property portfolio.

If you wish to add to this list, please feel free to do so.

endowment mortgage -are you at risk?

YOUR ENDOWMENT MORTGAGE, ARE YOU AT RISK?


Most mortgages sold in the late 1980 and 1990 were endowment mortgages. If you had taken a mortgage during this period, the likely hood is that you have taken an endowment policy.

At present your mortgage company may have written to you telling you whether your endowment mortgage will have enough savings to repay your endowment mortgage or if you need to take action, this information sheet is designed to help you decide what action to take.

The Facts

There are over 9 million policies in the UK
It is unlikely that endowment policies will grow enough to repay the amount you borrowed at the end of the mortgage term.
Most endowment policies are high risk
You will need to increase your monthly payments to repay you mortgage
The longer you leave the policy at this stage the bigger the gap

What Can I Do?

You need to complain now
Find your paperwork relating to the policy -Speak to me for free advice

Propety investors - sourcing property deals

easy 4 life - sourcing property deals

One of the fastest grwoing markets for property investors is to target indivdiuals who may be looking to sell their house quickly. I have penned the advertorial for a property investor in Birmingham and he is doing remarkably well after a leaflet drop was done in areas of Birmingham such Northfield, Stirchley, Castle Bromwich, Shard End. I have edited the name of the investor and input my own details. All else is exactly the same as what has been sent out.
Please feel free to contact me for any advice on this matter or your thoughts.....

"If you need a cash sale of your house, flat, commercial property or investment property but want to avoid dealing with unscrupulous estate agents and dozens of uninterested timewasters, here's some great news for you...
But first...
As long as you are selling a house, flat, commercial property, investment property in the UK and you are seeking a quick sale, then Balot Property Trust will like to hear from you.
Sell your property at absolutely no cost to you whatsoever.
· This is the technique and trick only savvy sellers know, they are in control and get serious cash buyers rushing to them.
· Avoid estate agents who will try their best NOT TO sell your house in under 10 days
· Maintain absolute confidentiality when selling your property
· Save yourself thousands of pounds when selling your property
· Stay Clear from timewasters and profit hungry builders claiming to have cash available, but are only interested in profiting from your situation.

Do you want to control the sale of your property without being taken advantage of?
Maybe you are just thinking of selling, or more likely you have been trying to sell your property for quite some time with no results.
You may have even placed your property with an estate agent, who, for some reason has failed to get the sale you need. Here are some more reasons why you should contact Balot Property Trust:
1. You have absolutely nothing to lose.
2. Estate agent failed to deliver? deal with cash buyers, ready and able to buy your home in just 10 days.
3. Suffering from a broken chain? Divorce? Bankruptcy? Debt? Do you need to sell quickly? Don't delay! Fill in the enquiry form and send it off today.

4. By contacting us your confidentiality is protected. Balot Property Trust and no other firm or person will know that you have contacted us. Your e-mail address and other details will never be revealed to anybody else.


What would you rather do when selling your property?
Pay an estate agent £1,500 to phone a cash buyer friend of his.
Contact Balot Property Trust and have cash buyers calling you!
Trust me on this one; the following is exactly what an estate agent will do when you agree to let them sell your property quickly.
He'll pick up the phone, call his 5 best cash buyer friends and charge you 1.5% commission for the privilege.
Crazy!
On a £100,000 property that 1.5% commission comes to £1,500 just for one measly phone call!
It's all under your control

Selling to cash buyers is far simpler than the outdated estate agency route. To succeed in selling to a cash buyer you only need to follow these 3 steps, each one directly under your control
STEP 1 – Complete the enquiry form for Balot Property Trust. Or Telephone Safaraz Ali - Managing Director on his personal mobile: 07974 650 751
STEP 2 - Set the price for your property
STEP 3 - Set the completion date for when you would like the money
If you master the "Big 3" your sale MUST succeed.
Why?...
Because there is nothing more to do when dealing with genuine cash buyers.
Better still you will never again have to suffer with:
Smug estate agents
Wasted time preparing your property
Having your property price plastered all over the local newspaper - we offer 100% confidentiality
Viewings and no shows
Money wasted on expensive and unnecessary improvements to your property
Estate agent boards spoiling the look of your property
Loss of control
Get to know what cash buyers need from you, set an asking price, tell them when you need the money. That's it.
Let them do the rest of the work, after all...
They're paying for it!
It's the sellers who should be calling the shots - That's YOU! If you are genuinely interested in a hassle free and speedy sale of your property please do not delay.