Blog

Details

Published: 14 November 2022

Hits: 260

A First Time Buyer’s Guide To Gifted Deposits

What Happens If A Family Member Gives Me Money Towards A Deposit On A Home?

For first-time buyers, saving up for a deposit can be a significant obstacle when it comes to getting on the property ladder. However, that’s where a gifted deposit can come into play. More first-time homebuyers than ever before are turning to their parents for help so the team at Warren Powell-Richards has drawn up this first-time buyer’s guide to gifted deposits so that you can understand how it works.

What Are Gifted Deposits?

First things first – gifted deposits are financial gifts used to cover part or all of your mortgage deposit given by a family member in the form of a lump sum. It is not a loan, therefore, there is no legal requirement for the homebuyer to repay it and the person who is gifting the money must have absolutely no design on becoming the owner of any part of the home being purchased. The gifter holds no stake in the property and gets no mention on the deeds or mortgage application. Put simply, gifted deposits must genuinely be a gift, and there mustn’t be any expectation of any returns being received in exchange.

Can Anyone Gift A Mortgage Deposit?

Although in theory, anybody can gift a mortgage deposit, in practice most are given to grandchildren or children by grandparents or parents. Although a friend or other relation may gift a deposit, most lenders will require more checks to be carried out, and gifters face a more rigorous burden of proof which can slow the home-purchasing process down significantly.

Are There Limits Of Gifted Deposits?

Some lenders may stipulate limits, but in many cases, there isn’t any upper limit on gifted deposits. Nevertheless, a larger sum could be subject to inheritance tax. Everybody is entitled to give away up to £3000 every year. This amount may also be carried over from the last year. Therefore, if both of your parents are still living, as much as £12,000 is able to be given as a gift with no worries about inheritance tax so long as no other financial gift has been given elsewhere in that 2-year period.

What Type of Proof Is Needed For A Gifted Deposit?

The person who is giving the gift will be asked to provide some documents. They may include:

• A gifted deposit letter.
• Proof of identification – a photographic form and two different address ID forms.
• Proof of available funds, for example, bank statements. 

Do I Have To Pay Back A Gifted Deposit?

Just like loans aren’t considered to be gifts, gifted deposits can’t be loans, so a gifted deposit does not have to be paid back.

For more information about deposits, mortgages, and purchasing your first home, get in touch with the Warren Powell-Richards team now or at This email address is being protected from spambots. You need JavaScript enabled to view it. to get the advice you need.

Details

Published: 26 September 2022

Hits: 324

What is ‘Rent-to-Rent’ and How Does it Work?

Rent to rent is not that widely known, but it could be a way for you to make an income without having to buy a property.

Like many things, rent to rent comes with positives and it comes with negatives – the best thing to do is to weigh up the pros and the cons and come to a decision on whether you are willing to take the risk.

Rent to rent can certainly be another way for you to build a property income portfolio if you don’t have the cash reserves to buy.

You’ll see why we say “build a property income portfolio” in a moment because we’ll explain what rent to rent actually is and why it could be an option for you.

Don’t forget, we are more than happy to help explain things further so give our office a call on 01483478200 and we will run through it with you.

What is “rent to rent”?

As the name implies, rent to rent is where you rent a property from the owner, and you then rent it to a third party.

You rent somewhere to then rent it out further. Sounds simple really, doesn’t it?

The trick of course is to make money by renting it out for more than you yourself are renting it for in the first place.

You can see why some people do it, particularly if they don’t have capital to invest.

Is rent to rent a good option?

Well, in many ways, yes. As we have said, you don’t need the big cash outlay, and you don’t need to arrange a mortgage. You sign the contracts with the owner and then go about getting a tenant who pays you more than the rent you are paying. You look after the property and get the financial reward.

The owner sees the benefit of a regular income without having to do very much, particularly as it is up to you to ensure he or she gets paid.

So it’s all good then?

Well, here’s the thing. There are things to think about. In effect, you take on the responsibilities of the owner. Maintenance costs will be yours, the condition checks and certificates are likely to be your responsibility. Insurance too.

If you were the owner of the property, you’d have all these costs too – but at least you would be the owner.

What happens if rent isn’t paid to you on time? As the person who rents from the owner, you’ll still have to pay the rent to them, whether you get yours or not.

If a tenant leaves for some reason, you are the one who will have to find a new tenant and go through all the processes associated with that.

Will you make money if the property goes up in value? You’re the renter so not the owner – so no, you won’t benefit from the property going up in price, although you might benefit if the area has gone more upmarket, meaning you can charge a higher rent.

Remember though, right at the start of the agreement, you will need to set a fixed rental price with the owner. If you don’t do this, they could put their rent up and you won’t see any benefit at all.

Is it legal?

The big question! You will have probably heard that sub-letting is not always legal. This is true but only if you don’t have the owners permission. Rent to rent is a perfectly legal way to operate. It does take a lot of understanding, and it is fair to say that not everyone thinks it is a bona fide system. But, it’s actually a system that works well in the commercial property sector.

Think of all the car parks and buildings that are managed by an organisation that is not the owner. Think of the social media companies or web-based businesses where you rent a room or get a lift somewhere. They make money from the service, but do not own the property or the car.

What’s the trick to getting it right?

You can earn an income from rent to rent, but everyone has to understand it. You also need to find a property where you can add value to it. Imagine if you rented an unkempt house, perhaps a two up, two down, for a low rent, then made it good, sparklingly clean and updated and then charged a much higher rent from your tenant.

That’s how best to make the best of rent to rent.

This is of course just a short summary with a few of the pros and cons of rent to rent, and we hope it gives you food for thought. If you want to know a little more, we can help you.

Warren Powell-Richards are your local property experts for the area. Call us or email This email address is being protected from spambots. You need JavaScript enabled to view it. to chat with a member of our friendly and experienced team.

Details

Published: 26 September 2022

Hits: 246

Japanese Knotweed and Your Property. What You Need to Know

Sorry to be the bearer of bad news, but Japanese knotweed can be disastrous for your property and so there are some important things you need to know!

Although not toxic to humans, this aggressive plant can seriously damage your home. Every homeowner should understand how to identify the plant, and how to eradicate it from their property successfully.

This is particularly relevant if you are in the process of selling your home. As the seller, if you have Japanese knotweed, you are obligated to inform your buyer of your knowledge of the plant on your property’s land – a responsibility put in place to help stop the spread of Japanese knotweed.

What is Japanese Knotweed?

Originating from eastern Asia, Japanese knotweed was brought to the UK in the 1840s.

It is a highly invasive plant that thrives wherever there is a water source. Across the UK, it is rife near lakes and along riverbanks. However, it is also unfortunately common in residential gardens.

Japanese knotweed can be extremely difficult to spot, as to the amateur gardener, the plant looks remarkably like many other weeds present in our gardens. One of the unique characteristics of Japanese knotweed is its heart-shaped leaves, which are generally around 10cm in length. The spring shoots of Japanese knotweed are distinctive in their deep red and purple colouring.

What are the Dangers of Japanese Knotweed?

Luckily, Japanese knotweed is entirely harmless to humans. It is not toxic and will not hurt humans or animals if they are in contact with, or even ingest the plant. However, it is incredibly damaging to the environment and can cause devastating destruction to human-made and natural landscapes.

Japanese knotweed is known to have destroyed robust, vital structures such as flood defences and railway lines. So, if found on a residential property, it must be dealt with immediately.

There are no natural predators of Japanese knotweed, so the plant can quickly grow out of control. It develops a massive root system, which spreads underground without us realising. Meaning, it can easily destroy drainage systems and the foundations of buildings.

Is Japanese Knotweed Illegal?

Whilst it is not illegal to simply have the plant on your land, it is your responsibility as a homeowner to ensure the plant, and its dangers, do not spread to your neighbours and around your local area.

How do I Get Rid of Japanese Knotweed?

Homeowners are not under a legal duty to remove the plant from their land. But you could face a hefty fine if you choose to remove, and do not dispose of it safely. This is why it is always preferable to hire a professional to deal with the issue.

There are two common ways to get rid of Japanese knotweed. The first is with a chemical treatment. Although this can be highly effective, it can actually take several years to kill the plant due to its extraordinarily fast-growing and durable nature.

Alternatively, you may decide to dig up, physically remove and bury the plant elsewhere. In which case, you must use an authorised landfill or disposal site.

If not disposed of correctly, the plant will simply begin to regrow and cause even more issues. The vehicle used to transport it must be jet washed afterwards to reduce the plant’s revival chances.

Japanese Knotweed Is Your Responsibility

The first rule as a homeowner is to be honest.

Pretending you were not aware of Japanese knotweed existence on your land can have serious repercussions later down the line. As the seller, you can get into a legal battle should it become an issue for the new owners. As a buyer, the existence of Japanese knotweed can affect your mortgage entitlement.

Can Japanese Knotweed Affect My Home’s Value?

Unfortunately, it can drastically affect the value of your home. If the problem has been left to develop, there could be substantial structural damages, meaning the house could be worth significantly less than you imagined.

Luckily, if caught in the early stages, Japanese Knotweed is not ridiculously expensive to deal with. The professionals know how to eradicate and dispose of the plant, ensuring it does not return to your property.

Japanese Knotweed and Purchasing a New Home

If a home seller is aware of Japanese knotweed on a property, they are under a legal obligation to declare this on the property documentation.

So, as a new buyer, when you are finalising the documents, you will be aware of the plant’s presence. If you are the seller, you must declare the presence of Japanese knotweed. Mortgage lenders will require proof that the knotweed will be eradicated before finalising any mortgage agreement.

This doesn’t necessarily mean they will not offer a mortgage to a home with Japanese knotweed, but that they will want to see a professional eradication plan in place before guaranteeing the property.

If you are thinking of selling in the area, call Warren Powell-Richards or email us at This email address is being protected from spambots. You need JavaScript enabled to view it. for an appraisal of your home.

Details

Published: 26 September 2022

Hits: 292

Japanese Knotweed and Your Property. What You Need to Know

Sorry to be the bearer of bad news, but Japanese knotweed can be disastrous for your property and so there are some important things you need to know!

Although not toxic to humans, this aggressive plant can seriously damage your home. Every homeowner should understand how to identify the plant, and how to eradicate it from their property successfully.

This is particularly relevant if you are in the process of selling your home. As the seller, if you have Japanese knotweed, you are obligated to inform your buyer of your knowledge of the plant on your property’s land – a responsibility put in place to help stop the spread of Japanese knotweed.

What is Japanese Knotweed?

Originating from eastern Asia, Japanese knotweed was brought to the UK in the 1840s.

It is a highly invasive plant that thrives wherever there is a water source. Across the UK, it is rife near lakes and along riverbanks. However, it is also unfortunately common in residential gardens.

Japanese knotweed can be extremely difficult to spot, as to the amateur gardener, the plant looks remarkably like many other weeds present in our gardens. One of the unique characteristics of Japanese knotweed is its heart-shaped leaves, which are generally around 10cm in length. The spring shoots of Japanese knotweed are distinctive in their deep red and purple colouring.

What are the Dangers of Japanese Knotweed?

Luckily, Japanese knotweed is entirely harmless to humans. It is not toxic and will not hurt humans or animals if they are in contact with, or even ingest the plant. However, it is incredibly damaging to the environment and can cause devastating destruction to human-made and natural landscapes.

Japanese knotweed is known to have destroyed robust, vital structures such as flood defences and railway lines. So, if found on a residential property, it must be dealt with immediately.

There are no natural predators of Japanese knotweed, so the plant can quickly grow out of control. It develops a massive root system, which spreads underground without us realising. Meaning, it can easily destroy drainage systems and the foundations of buildings.

Is Japanese Knotweed Illegal?

Whilst it is not illegal to simply have the plant on your land, it is your responsibility as a homeowner to ensure the plant, and its dangers, do not spread to your neighbours and around your local area.

How do I Get Rid of Japanese Knotweed?

Homeowners are not under a legal duty to remove the plant from their land. But you could face a hefty fine if you choose to remove, and do not dispose of it safely. This is why it is always preferable to hire a professional to deal with the issue.

There are two common ways to get rid of Japanese knotweed. The first is with a chemical treatment. Although this can be highly effective, it can actually take several years to kill the plant due to its extraordinarily fast-growing and durable nature.

Alternatively, you may decide to dig up, physically remove and bury the plant elsewhere. In which case, you must use an authorised landfill or disposal site.

If not disposed of correctly, the plant will simply begin to regrow and cause even more issues. The vehicle used to transport it must be jet washed afterwards to reduce the plant’s revival chances.

Japanese Knotweed Is Your Responsibility

The first rule as a homeowner is to be honest.

Pretending you were not aware of Japanese knotweed existence on your land can have serious repercussions later down the line. As the seller, you can get into a legal battle should it become an issue for the new owners. As a buyer, the existence of Japanese knotweed can affect your mortgage entitlement.

Can Japanese Knotweed Affect My Home’s Value?

Unfortunately, it can drastically affect the value of your home. If the problem has been left to develop, there could be substantial structural damages, meaning the house could be worth significantly less than you imagined.

Luckily, if caught in the early stages, Japanese Knotweed is not ridiculously expensive to deal with. The professionals know how to eradicate and dispose of the plant, ensuring it does not return to your property.

Japanese Knotweed and Purchasing a New Home

If a home seller is aware of Japanese knotweed on a property, they are under a legal obligation to declare this on the property documentation.

So, as a new buyer, when you are finalising the documents, you will be aware of the plant’s presence. If you are the seller, you must declare the presence of Japanese knotweed. Mortgage lenders will require proof that the knotweed will be eradicated before finalising any mortgage agreement.

This doesn’t necessarily mean they will not offer a mortgage to a home with Japanese knotweed, but that they will want to see a professional eradication plan in place before guaranteeing the property.

If you are thinking of selling in the area, call Warren Powell-Richards or email us at This email address is being protected from spambots. You need JavaScript enabled to view it. for an appraisal of your home.