From 1st April, all new rental leases and renewals of tenancies will be required to have an energy performance rating of at least E on an Energy Performance Certificate (EPC). For existing tenancies, the regulations come into force on 1st April 2020.
We wondered how much tenants are prepared to pay for energy efficiency. Properties across England and Wales let in 2017 with an energy performance rating of E achieved 3.1% more per square foot than properties let with an F or G rating. On an 800 square foot property, this equates to an average of £360 per year.
The majority of landlords are well prepared, but we calculate that around 7% of properties let in 2017 still need to be brought up to the standard required. Best prepared are London landlords where just 4.9% of properties let last year were lower than an E rating, while in the South West more than 10% of properties did not meet the standard.
At the top of the scale, properties with an A or B rating achieved, on average, 31% more per square foot than F and G rated properties in 2017. On an 800 square foot property, this equates to an average premium of £3,600 per year.
We would like to take this opportunity to thank you
for your continued support which has made 2017
such a successful year
and we look forward to working with you
in 2018 and beyond.
After months of hard work, our new website finally went live over the weekend and is looking fantastic! Why not have a good look around and see what amazing new features and information are included.
Our new banner has arrived today ready for tonight, and it looks great!! We are proudly sponsoring the Pink Wig event which is part of Falmouth Week and raises funds for vital research projects, the best care for breast cancer patients in Cornwall and a safer future for the next generation.
Mortgages for older borrowers
With the UK population living longer and working later in life, it comes as no surprise that our mortgage requirements are also beginning to change. High house prices have made it all the harder for first time buyers to get on the ladder and many will not buy their first home until they are in their thirties.
In addition many of those entering the market for the first time are choosing longer mortgage terms, possibly as long as 35 or 40 years, in order to make their loans more affordable.
The Council of Mortgage Lenders recently published figures revealing that there are currently 11 million people in the UK aged 65 and over – representing around 17% of our population. By 2034 this is expected to rise to 17 million, or 25% of the population.
That could see more borrowers with a mortgage beyond the current standard retirement age. Lender criteria has got tougher and lenders have typically capped the maximum age to which they will lend, even when it can be show the mortgage would be affordable.
After deciding to relocate in order to be closer to their grandchildren, our clients approached the mortgage service for the Guild of Professional Estate Agents looking for advice. Both applicants were already retired and in receipt of a combination of private and state pension income.
The couple were looking for a mortgage term that would take them up the age of 75. Using the proceeds from the sale of their current property, the couple were able to put down a sizeable deposit. After discussing costings with their mortgage adviser, they felt comfortable that their pension income would be sufficient to support the mortgage payments.
While some lenders would not allow a mortgage term running past the age of 70, the couple’s mortgage adviser recommended a competitive 5 year fixed from a high-street building society. It was able to take a more flexible approach enabling them to secure the mortgage term up to the age that they required.
Guild Mortgage Service, Provided by London & Country Mortgages
YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
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