Housing – Property & Development Magazine https://www.padmagazine.co.uk News & Reviews for the Residential Property Sector Tue, 20 Feb 2024 07:28:01 +0000 en-GB hourly 1 https://www.padmagazine.co.uk/wp-content/uploads/2023/11/favicon-pad-150x150.jpg Housing – Property & Development Magazine https://www.padmagazine.co.uk 32 32 Invest in Leicester Round Table Explores Public-Private Collaboration for Affordable Housing https://www.padmagazine.co.uk/press-releases/invest-in-leicester-round-table-explores-public-private-collaboration-for-affordable-housing/ https://www.padmagazine.co.uk/press-releases/invest-in-leicester-round-table-explores-public-private-collaboration-for-affordable-housing/#respond Tue, 20 Feb 2024 07:27:59 +0000 https://www.padmagazine.co.uk/?p=22815 Forty key figures from the property and construction sector recently convened at an Invest in Leicester round table,…]]>

Forty key figures from the property and construction sector recently convened at an Invest in Leicester round table, hosted by Leicester City Council. The event focused on collaborative efforts to address the city’s growing need for affordable housing.

Chris Burgin, Director of Housing at Leicester City Council, outlined the significant challenge: to deliver the volume of affordable homes required annually to meet the needs of the community, encouraging a united approach between the public and private sectors.

The round table session served as a platform for open discussion and exploration of collaboration opportunities. Property executives from Leicester and Leicestershire delved into potential strategies including joint venture models, innovative construction methods and best practice examples of utlilising public sector assets.

Chairing the meeting was Richard Sword, Strategic Director of Leicester City Council, who said: “Delivering affordable housing for our residents is a top priority for the council, and the significant interest and attendance at this round table demonstrates the strong appetite within the industry to collaborate and tackle this challenge together. By working hand-in-hand, we can create housing solutions that are sustainable, accessible, and enrich the lives of our residents.”

The roundtable focused on several housing challenges faced by the City Council, which declared a housing crisis in 2022, calling for urgent action from the central government to ease pressure caused by the growing demand for affordable housing.

Leicester’s Deputy City Mayor for Housing, Cllr Elly Cutkelvin, said: “We have an ambitious plan to deliver housing for the residents of Leicester, however, we know that we cannot deliver this alone, and we need to work with the private sector in order to respond to the housing challenges in the city.

We are excited about the opportunity to collaborate with our private sector partners in this endeavour to accelerate the delivery of housing for our residents. The discussions during the recent roundtable have highlighted the enthusiasm of our partners to join forces with us in championing our vision. Together, we are committed to ensuring that our residents gain access to affordable and quality homes.”

The event generated positive feedback from attendees, highlighting the crucial role of public-private partnerships in addressing the city’s housing needs. Participants expressed enthusiasm for continued dialogue and collaborative action.

Rob McGuinn, Vice Chairperson at the property professional services firm MDA Consulting, said: “The collaborative spirit at this round table was inspiring. Collaborating with the council, we can build a mutually beneficial relationship that delivers a future where everyone has access to secure and affordable housing.”

The Invest in Leicester round tables are held quarterly and provide an opportunity for authorities across Leicester City and Leicestershire County to discuss key challenges and opportunities to stimulate collaboration for the good of business and residents.

]]>
https://www.padmagazine.co.uk/press-releases/invest-in-leicester-round-table-explores-public-private-collaboration-for-affordable-housing/feed/ 0
Unique housing initiative begins in Gateshead https://www.padmagazine.co.uk/press-releases/unique-housing-initiative-begins-in-gateshead/ https://www.padmagazine.co.uk/press-releases/unique-housing-initiative-begins-in-gateshead/#respond Mon, 19 Feb 2024 11:01:34 +0000 https://www.padmagazine.co.uk/?p=22807 Construction of 62 new affordable homes – including 20 for Gateshead’s Jewish community – is underway. The Gateshead…]]>

Construction of 62 new affordable homes – including 20 for Gateshead’s Jewish community – is underway.

The Gateshead Regeneration Partnership (GRP) is using finance created from the sale of around 50 houses to be built elsewhere in the borough to part fund the project in Hyde Park Street.

The innovative initiative – which is also being supported by Homes England – unlocks the potential of the 2.88 acre site, formerly occupied by terraced housing, which has stood empty for more than a decade due to prohibitive redevelopment costs.

GRP comprises Gateshead Council, housing, construction and regeneration specialist Vistry North East and affordable housing provider Home Group – which will offer 42 of these new homes for affordable rent and shared ownership.

The development of 20 specially designed homes for Jewish residents has been made possible by a collaboration involving Adler Housing – a registered provider of social housing under the Jewish Community Council of Gateshead – London based Agudas Israel Housing Association and Homes England.

Large enough to accommodate extended families, features in these homes include a room with a sukkah – a retractable roof – and kitchens compatible with observance of Kosher dietary practices, including two sinks and sufficient counter space.

Chaya Spitz, CEO with Agudas Israel Housing Association, said: “I am delighted that this exciting initiative, which has been many years in the planning, is coming to fruition, thanks to joint working by our colleagues from Gateshead Regeneration Partnership and the local Jewish community.”

Eli Halberstadt, chair of Adler Housing, commented: “We are delighted that the Gateshead Jewish community has the opportunity to provide high quality, bespoke housing which would provide ample living space for families. We are especially pleased to partner with Agudas Israel on this project.”

Kitson Keen, Director of Development at Home Group, added: “This is an excellent example of collaborative working which is delivering much needed affordable homes in the Gateshead borough.”

Cllr. John Adams, Gateshead Council’s Cabinet Member for Housing, said “As a local resident I know this area and the local community are crying out for family homes with gardens, so I’m delighted we have been able to play a positive role to make this development happen.”

Sean Egan, Managing Director with Vistry North East, said: “It was a long and complex process to align all the partners but we can now see the value of our efforts as we start work on homes that will meet the diverse housing needs of local people and unlock the potential of this piece of unused land.”

The development which made the affordable homes initiative possible is the construction of two to five bedroomed homes on the site of the former Hookergate School in High Spen.  Work here is well underway with the first homes expected to be available later this year.

GRP’s vision is to create around 2,500 new homes on 16 sites across the borough in a £350 million initiative.  To date around 500 have been built on eight sites.  As well as improving housing quality and choice, the initiative is providing job and training opportunities – a minimum of 25% of which go to local people – and an economic uplift – a quarter of the supply budget is committed to businesses within the borough.

]]>
https://www.padmagazine.co.uk/press-releases/unique-housing-initiative-begins-in-gateshead/feed/ 0
Brand new housing development welcomes its first residents https://www.padmagazine.co.uk/press-releases/brand-new-housing-development-welcomes-its-first-residents/ https://www.padmagazine.co.uk/press-releases/brand-new-housing-development-welcomes-its-first-residents/#respond Thu, 01 Feb 2024 14:59:53 +0000 https://www.padmagazine.co.uk/?p=22569 Local housebuilder, David Wilson Homes North East, has welcomed the first family to its Doxford Green development in Sunderland. The development,…]]>

Local housebuilder, David Wilson Homes North East, has welcomed the first family to its Doxford Green development in Sunderland.

The development, a new community of four and five-bedroom homes set in the heart of Sunderland, has now seen its first happy family settle into their new forever home.

Colette and Ian Todd were keen to find a dream home, and set their sights on Doxford Green. After touring the well-designed show homes, the couple decided on the Drummond house type, which boasts an open-plan kitchen family diner with spacious living spaces, making it perfect for family living. 

Once they set their hearts on the home, the Todds took advantage of the housebuilder’s Part Exchange scheme. Combining two households into one, the scheme enabled them to sell their home to the existing developer, which eliminated the hassle of being in a property chain and paying estate agent fees. With David Wilson Homes as the guaranteed buyer for their property, the Part Exchange scheme made the process much smoother for Colette and Ian.

Speaking on their move, the Todds said: “We are delighted with our new home on Doxford Green, especially as the process was made so much easier with the Part Exchange scheme. Our Sales Advisor, Matt, was so helpful and made sure that we were kept updated with the process the entire way. We would recommend anyone thinking of using the Part Exchange scheme with David Wilson Homes to go ahead.”

Lucy Holmes-Mongan, Sales Manager at Doxford Green, added: “We’re so pleased to be welcoming Colette and Ian Todd onto the Doxford Green development, as one of the first residents to move in. It’s really exciting seeing this community begin to grow, and we look forward to welcoming other households over the coming months.”

Doxford Green offers a stunning community of four and five bedroom properties located in the very heart of Sunderland. Surrounded by open fields, the exclusive collection of 60 homes within phase 1 are available to purchase from £339,995. 
For those who may be interested, please pop into your local Sales Office or visit the website, www.dwh.co.uk/new-homes/doxford-green

]]>
https://www.padmagazine.co.uk/press-releases/brand-new-housing-development-welcomes-its-first-residents/feed/ 0
Rural Herefordshire housing development for sale in Bond Wolfe February auction https://www.padmagazine.co.uk/sales-marketing/rural-herefordshire-housing-development-for-sale-in-bond-wolfe-february-auction/ https://www.padmagazine.co.uk/sales-marketing/rural-herefordshire-housing-development-for-sale-in-bond-wolfe-february-auction/#respond Mon, 22 Jan 2024 16:07:20 +0000 https://www.padmagazine.co.uk/?p=22433 A residential development site in a Herefordshire village, with planning permission in place, is coming up for sale…]]>

A residential development site in a Herefordshire village, with planning permission in place, is coming up for sale in Bond Wolfe’s next livestreamed auction, with a guide price* of £375,000+.

The two-acre plot of land, next to the village hall in Stoke Lacy, was granted outline planning permission for 10 homes, including two three-bedroomed bungalows.

Colin Totney, land and development surveyor at Bond Wolfe, said: “This is a prime opportunity for developers and investors alike, set in a historic village nestled among the hop fields and orchards of the Herefordshire countryside.

“We are predicting highly competitive bidding for this extremely desirable development site when it goes under the hammer at our livestreamed auction on Thursday 8 February.

“It is being offered for sale by the joint administrators on behalf of Res Homes Ltd. Outline planning permission for 10 dwellings was granted by Herefordshire District Council in 2017. However, we understand that a subsequent reserved matters application, submitted by the previous owner in October 2019, is still pending determination.”

The property is an irregular shaped parcel of land extending to about 2.07 acres adjacent to the village hall in Stoke Lacy, which sits about 3.5 miles south west of Bromyard. Hereford is about 11 miles away, and Ledbury 12 miles.

Mr Totney said: “We believe the land was formerly used as a commercial orchard, but was cleared some time ago and it is now just rough grassland.

The village, with the community of Stoke Cross next door, has been the base of the family-owned Wyre Valley Brewery since 1985 and was also the home of the Morgan family who went on to found the world-famous Morgan Motor Company, producers of the iconic open-top Roadster.

The sale of the land is being jointly handled with agents Knight Frank.

Mr Totney added: “Interested parties must also make their own enquiries of the Local Planning Authority in respect of planning and independently satisfy themselves as to the suitability of the site for any use or development they may propose.”

The Stoke Lacy property is just one of 192 lots that are appearing in Bond Wolfe’s next auction, which will start at the earlier time of 8.30am on Thursday 8 February. 

If you have a property you are considering selling, visit https://www.bondwolfe.com/free-property-appraisal/ email auctions@bondwolfe.com or call 0121 312 1212 or 01902 928 510 for advice or to arrange a free no obligation valuation.

]]>
https://www.padmagazine.co.uk/sales-marketing/rural-herefordshire-housing-development-for-sale-in-bond-wolfe-february-auction/feed/ 0
Pioneering new eco-homes given seal of approval by minister for housing and communities https://www.padmagazine.co.uk/energy-utilities/pioneering-new-eco-homes-given-seal-of-approval-by-minister-for-housing-and-communities/ https://www.padmagazine.co.uk/energy-utilities/pioneering-new-eco-homes-given-seal-of-approval-by-minister-for-housing-and-communities/#respond Tue, 16 Jan 2024 09:53:20 +0000 https://www.padmagazine.co.uk/?p=22352 Some of the first homes built to a new pioneering energy-efficient standard have been unveiled in Nottinghamshire. The…]]>

Some of the first homes built to a new pioneering energy-efficient standard have been unveiled in Nottinghamshire.

The Keepmoat housing development, built to the indicative version of the Future Homes Standard, has been given the seal of approval by the new Housing and Communities Minister.

The collection of 33 homes use air source heat pumps for their hot water and heating, have solar panels, electric vehicle charging points and increased insulation compared to homes built to existing standards.

The homes are also fully electrified, meaning they will be zero-carbon in use once the electricity grid decarbonises.

Following her visit at the Gedling Green development, located at the site of the former Gedling Colliery, Minister for Housing and Communities Baroness Penn said:  “It was fantastic to visit the Gedling Green development in Nottingham and see first-hand the future of energy efficient homes.

“The Future Homes Standard will not only make homes more energy efficient, reducing energy bills compared to a typical home, but crucially will reduce carbon emissions, supporting us in our goal to reach Net Zero by 2050.” 

Tim Beale, CEO at Keepmoat added: “We were thrilled to host Baroness Penn at our Gedling Green development in Nottingham where all the homes have been built to meet the requirements of the Future Homes Standard ahead of its introduction in 2025. Gedling Green is the first development in the UK to offer homes built to this specification for sale on the open market. 

“The Sales Centre at this development includes an area dedicated to educating customers about the key features and technologies. This will support our customers in achieving a significant reduction in energy bills compared to a typical new home built to the previous regulatory standards.”

From 2025, the Future Homes Standard, currently being consulted on by the Government, will become mandatory and ensure that new homes produce, on average, upwards of 75% less CO2 emissions than those built to the 2013 standards.

This will ensure new homes are more energy efficient, leading to a reduction in energy bills , compared to typical existing homes, and help the Government meets its Net Zero target.

From 2025, new homes will be future proofed with low carbon heating and very high fabric standards and will be ‘zero-carbon ready’, meaning no further work will be required for them to become zero-carbon when the electricity grid decarbonises. 

]]>
https://www.padmagazine.co.uk/energy-utilities/pioneering-new-eco-homes-given-seal-of-approval-by-minister-for-housing-and-communities/feed/ 0
THE FUTURE OF UK HOUSING HAS ARRIVED – AND IT HAS ZERO ENERGY BILLS https://www.padmagazine.co.uk/energy-utilities/the-future-of-uk-housing-has-arrived-and-it-has-zero-energy-bills/ https://www.padmagazine.co.uk/energy-utilities/the-future-of-uk-housing-has-arrived-and-it-has-zero-energy-bills/#respond Tue, 16 Jan 2024 09:50:30 +0000 https://www.padmagazine.co.uk/?p=22349 The UK housing industry is taking a giant leap forward, with the country’s largest ever “Zero Bills” development…]]>

The UK housing industry is taking a giant leap forward, with the country’s largest ever “Zero Bills” development launching in Newport, Essex. The result of an innovative, long-term partnership between award-winning five-star housebuilder The Hill Group and Octopus Energy, the development – Hollymead Square – will deliver 89 homes that are so energy efficient they have received the coveted Octopus Zero Bills ‘stamp’. As a result, buyers won’t receive energy bills for five years, guaranteed through Octopus’ world-first smart tariff.

Hollymead Square is a blueprint for future energy-efficient housing developments, showcasing how the homebuilding and energy industries can come together to achieve outstanding results that support the UK’s transition to a net zero future with tangible, actionable improvements.

Each property at Hollymead Square features solar panels, storage and smart tech – all optimised by Octopus. Launching Saturday 20th January, the development will provide two-bedroom bungalows and two- to five-bedroom houses, 64 of which will be for private sale. All homes will be kitted out with a heat pump, solar panels and a battery, which enables the Zero Bills accreditation.

Rebecca Littler, Group Sales and Marketing Director at The Hill Group, comments: “We are proud to be showcasing the future of UK housing here at Hollymead Square. As well as supporting families to save thousands of pounds on their energy costs over the next five years, we hope that our progressive work with the energy sector through our partnership with Octopus is something that will inspire people to reduce their carbon footprint.”      

Sustainability has been at the heart of designing the UK’s largest Zero Bills development. New build homes have already been recognised for their environmental and cost-saving potential, with the Home Builders Federation’s Watt a Save report from July 2023 finding that the average new build homeowner saves £2,200 per year on their energy bills.[1] And, new build owners are also collectively reducing carbon emissions by an impressive 500,000 tonnes.

In addition to the properties’ green credentials and lack of energy bills, Hollymead Square is set to delight homebuyers in many ways. The development includes green open space for all owners to enjoy, with selected homes dotted around the boundary, while the lovely gardens of Audley End House & Gardens are a short drive away. Access to local schools is easy too, with Newport Primary and Joyce Frankland Academy both in close proximity.

For commuters, the development provides easy access to Cambridge and London, as well as the North of the UK, with Newport station within walking distance. Additional amenities, which are also within walking distance, include Dorringtons Bakery, Newport Pharmacy and the new Anglian Leisure Joyce Frankland sports centre. The latter provides a gym and fitness suite with Zumba, circuits, HIIT and Boxercise classes, plus AstroTurf and indoor and outdoor courts for badminton, tennis, basketball and more – ideal for an active family lifestyle.

The variety of properties available at Hollymead Square means there is something for everyone, from single buyers and couples to large families seeking plenty of space. The contemporary interiors will suit a range of tastes, while different layouts provide scope for home working among other family-friendly uses. And all with the peace of mind that comes with having zero energy bills for the next five years.

Prices of homes at Hollymead Square start from £489,950 for a detached two-bedroom home. For further information, visit https://www.hill.co.uk/hollymead-square or call 01799 610 831. 

]]>
https://www.padmagazine.co.uk/energy-utilities/the-future-of-uk-housing-has-arrived-and-it-has-zero-energy-bills/feed/ 0
Last chance for homebuyers at Wimborne development https://www.padmagazine.co.uk/planning-developments/last-chance-for-homebuyers-at-wimborne-development/ Fri, 11 Jun 2021 08:04:22 +0000 https://padmagazine.co.uk/?p=12641 Last chance for homebuyers : Demand for new homes in Wimborne is outstripping supply, with just 10 homes…]]>

Last chance for homebuyers : Demand for new homes in Wimborne is outstripping supply, with just 10 homes remaining for sale at a new housing development under construction in the town.

Bellway is delivering 84 new homes at Badbury Reach, off Cranborne Road, including 60 homes for private sale and 24 affordable properties available for local people through rent or shared ownership.

With construction work progressing well, the final homes are expected to be completed at the end of the year – but if sales continue at their current rate, the site will be sold out much sooner.

Kim Caldwell, Sales Director at Bellway Wessex, said: “Demand is far outstripping supply at Badbury Reach as these much-needed new homes are proving to be popular with young, growing families looking for a prime location to settle down.

“There are now just 10 homes left to be snapped up, which is no surprise due to the high quality of craftmanship at the site and the close proximity to local amenities.

“Families are particularly happy to be located opposite a new primary school that has recently been built as part of the wider neighbourhood in Wimborne.”

There are currently 10 homes for sale at Badbury Reach in a range of three and four-bedroom styles. The final home to be released for sale will be the Bowyer showhome, a four-bedroom detached property.

Kim said: “Badbury Reach is in a highly sought-after residential area within walking distance of Wimborne town centre.

“The homes we’re building form an elegant collection of 13 different house types with a mix of two, three and four-bedroom layouts, offering something for a range of buyers.

“Following the success of the development so far, we’re now expecting the final homes to be sold soon.”

Prices at Badbury Reach currently start from £404,995 for the Millwright, a three-bedroom semi-detached home.

For more information about the final homes left for sale at Badbury Reach, visit bellway.co.uk or call the sales team on 01202 088290.

bw332 Last chance for homebuyers at Wimborne development

Property & Development Magazine

]]>
STRAWBERRY STAR AND JJ RHATIGAN & CO STRIKE STRATEGIC ALLIANCE TO DELIVER 2000 HOMES WITH A GDV OF £ 500M+ https://www.padmagazine.co.uk/architecture-design/strawberry-star-and-jj-rhatigan-co-strike/ Wed, 26 May 2021 15:01:45 +0000 https://padmagazine.co.uk/?p=12518 RAPIDLY expanding property developer Strawberry Star Group has today announced a long-term partnership with Irish construction giants JJ…]]>

RAPIDLY expanding property developer Strawberry Star Group has today announced a long-term partnership with Irish construction giants JJ Rhatigan (JJR). This exclusive alliance is the first of its kind for both firms on this scale, enabling JJR to expand their reach in the UK residential sector, whilst strengthening Strawberry Star’s ambitious housing commitment to deliver 2,000 new homes by 2025.

JJR are currently Strawberry Star’s construction partner for its flagship project LU2ON, delivering phase one of the £280m residential-led mixed-use scheme by Spring this year. The construction firm now bring their expertise in the sector to Strawberry Star’s remaining portfolio of projects, which include LU2ON phase two, as well as schemes in Harlow, Wembley and Kenton. The gross development value (GDV) across all four schemes is expected to exceed half a billion pounds.

Chairman of Strawberry Star, Santhosh Gowda, said: “It was a natural fit for us to partner with a construction firm with a track record of delivering excellent quality housing whilst using some of the best sustainability practices in the sector. The trust established between our two businesses based on LU2ON’s initial success has led us to take this relationship to the next level. By forging this long-term alliance, we can leverage each other’s strengths wherever necessary and significantly enhance our delivery capabilities. The partnership will shape our business for the future.”

With 1,000 units already planned or under construction, Strawberry Star is concentrating on the needs of home buyers, home movers, buy-to-let landlords, first-time buyers, as well as providing investors with a fully managed buy-to-let experience. All four of the mixed-use schemes that are underway are set to bring significant regeneration to each area, contributing to the local economy to boost house price growth and entrepreneurial investment.

Santhosh adds: “JJR will play a vital role in realising our volume housing vision; to create 2,000 new homes by 2025 whilst setting new standards in high-quality housing in Greater London.”

Ger Ronayne, C.E.O. of J.J. Rhatigan & Co. stated: “We have a reputation for construction excellence and we share Strawberry Star’s vision to deliver much needed mixed-use schemes that everyone can be proud of. This partnership has evolved from the excellent working relationship and mutual trust we have established with Strawberry Star over the past two years, particularly on the Lu2on project and will provide a strong pipeline of work for J.J. Rhatigan & Co. in the Greater London area over the next few years.  This will provide a springboard for us to grow our business even further in the UK and particularly in the Greater London area.”

“This is the type of collaboration we strive for at J.J. Rhatigan & Co. with all our clients and ultimately it will be mutually beneficial to both our clients and ourselves.” For more information visit www.strawberrystar.com and www.jjrhatigan.com

]]>
Launch of Wayshaper – the decision-making toolkit for community led housing https://www.padmagazine.co.uk/tech/launch-of-wayshaper-the-decision-making-toolkit-for-community-led-housing/ Tue, 11 May 2021 08:44:21 +0000 https://padmagazine.co.uk/?p=12272 Launch of Wayshaper : The Confederation of Co-operative Housing and Community Led Homes are pleased to announce the…]]>

Launch of Wayshaper : The Confederation of Co-operative Housing and Community Led Homes are pleased to announce the launch of Wayshaper, a new tool for community led housing Accredited Advisors. 

Wayshaper helps to simplify, accelerate and support the process when developing a community led housing group model. It provides a way for groups to explore the needs and preferences of their members, map out priorities, explore options and make decisions. 

The interactive toolkit comprises two sets of card sets: 16 group priorities and 70 group options. Each of the options cards are linked to online resources which provide deeper information, helping groups to reach informed decisions much earlier in the process. 

The tool is based on participatory workshops which enables CLH Accredited Advisors to help CLH groups structure their approach to delivering their project, from early prototype models through to a final stable model which can be presented to the community, local authorities, potential partners, lenders and investors. This will help to speed up the process for emerging and forming groups through to the construction and development of the project. 

The idea for this new holistic planning tool came out of a review of the Community Led Housing training and accreditation programme last year. Comments were made by many Accredited Advisors that, whilst they were now more aware of the range of options for owning, developing and managing community led housing groups and schemes, it would be helpful if there was a simple to use tool and resources library which could be used with new and established groups to explore and model their options, and also reveal the incompatibilities which can exist between options at the earliest stage of a group model development.  

The tool is available to CLH Accredited Advisors on a 12 month subscription basis which provides access to the online resources, a set of large workshop cards (for facilitating physical workshops), full workshop instructions and ongoing card updates. Each advisor subscription also includes 10 coupon codes to offer to groups, giving them access to the toolkit for a greatly reduced price. 

wp005 Launch of Wayshaper - the decision-making toolkit for community led housing

Property & Development Magazine

]]>
Building a GrannyFlat? Sort Out the Finances First https://www.padmagazine.co.uk/property-facilities-management/building-grannyfflat-sort-finances-first/ https://www.padmagazine.co.uk/property-facilities-management/building-grannyfflat-sort-finances-first/#respond Fri, 13 Jan 2017 09:00:08 +0000 https://padmagazine.co.uk/?p=6813 More and more families are realising that having an elderly parent living with them could pay off. It…]]>

Thanks to rising property prices and costly care home fees, a growing number of families are
choosing to live with older relatives.

Figures from the Valuation Office Agency show that there are more than 30,000 granny annexes in England in Wales – an increase of 39% in just two years. “A granny annexe can offer a useful bridge between independence and the provision of care,” says Martin Bamford, a chartered financial planner at adviser Informed Choice. “It can be a lot more cost-efficient than providing care either in a separate home or residential care home.”

In the past few years, the government has taken steps to encourage families to live together and has reduced social care costs for the taxpayer by discounting council tax and scrapping stamp duty increases on annexes.

But how do families make it work? And with so much money at stake, how can you decide if this is the right option for everyone? Moneywise takes a look.

How does it work?

Rather than moving a relative into the spare room in your home, setting up an annexe is more complex. Most often, both parties chip in cash to build the annexe. But how you share ownership of the property has financial – and legal – implications.

A ‘joint tenancy’ is where the property is owned in equal shares and if one ‘tenant’ dies, their share is automatically divided equally between the other owners.

In contrast, owning as ‘tenants in common’ means that while each party has a fixed share of the property, the shares may not always be equal and if one of the owners dies, their share will be inherited by their named beneficiary.

It may seem obvious to buy the property as tenants in common, particularly if you have invested different amounts of money.

However, it is vital to consider who would inherit any shares and how this could affect your living arrangements.

To further complicate matters, if a mortgage is needed to buy the property – or even to buy just a share – securing a home loan could prove challenging. Typically, lenders are unwilling to provide a mortgage to buy part of a property. This is because, should you default on your payments, they will be unable to recoup their costs as they cannot repossess and sell a home if someone else owns the rest.

Putting all owners on the mortgage is not an easy alternative either, as many lenders are reluctant to give mortgages to people past retirement age. Mark Harris, chief executive of mortgage broker SPF Private Clients, says: “Lenders routinely ask for details of the dependants living in a property.

“If one generation does not contribute financially, then the lender could make assumptions about how their lifestyle is afforded – for instance, the non-earning dependant becomes a financial drain on the others, which will affect the amount you can borrow.”

What is more, explains Mr Harris, some lenders do not like annexes with a separate entry and no access to the main house because of the risk of it being let out.

Read more at http://www.moneywise.co.uk/home-mortgage/improvements/building-granny-flat-sort-out-the-finances-first

]]>
https://www.padmagazine.co.uk/property-facilities-management/building-grannyfflat-sort-finances-first/feed/ 0