Buy with an investor

If you‘d rather live alone. buying with an investor is an option. But whether you strike a deal with a parent. a friend or an acquaintance. make sure you have a rock solid legal agreement. wams Professor Robert Rennie. lecturer in conveyancing at Glasgow University and partner at Harper MacLeod in Fxlinburgh. ‘l‘ve been in property for 35 years and in my experience money and friendship do not mix.‘ he says.

He also advises looking carefully at the terms of the mortgage to check that it is appropriate for people planning shared ownership. ‘There might be an issue where there is a sleeping partner as there is a standard lending condition used sometimes that states you must live in the property.‘ he explains. ‘You need to make sure you look at the different types of mortgages thoroughly and chose the right one.‘

Think hi and rent 0“ r00 5 Another option is renting out a room in your home. This is easy to organise although a legal lease will have to be drawn up. Renting out one room could cover a substantial part of your repayments. Some mortgage lenders will agree to take your tenant‘s rent into account as extra eamings. allowing you to take out a bigger mortgage. The govemment has launched a rent a room scheme which allows you to earn up to £425() a year in extra earnings without having to pay tax. so one lodger paying £350 per month would be under the tax—free entitlement. You can claim expenses for cleanin". maintenance and utility bills.

Ali MacGregor. 32. an assistant TV producer

bought her three-bedroom flat in the west end of

(ilasgow with the help of her parents and rents otlt a room.

‘I soon realised that buying a bigger flat and renting out a room was going to work out to be cheaper for me because I would be sharing all

The experts’ view

PROPERTY SPECIAL

Kirstie Allsopp and Phil Spencer from Channel 4 series Location, Location, Location give their top ten tips for buying a property

1 Put yourself in a strong position Before you view any properties, make sure you know your budget and get yourself a mortgage promise in place. This will show the seller that you are a serious and eligible purchaser.

2 Remember all the costs

As well as the purchase of the property. remember to budget for the extra costs. including the survey and conveyancing costs. Get a solicitor in place early so you can shop around for the best quotes.

3 Viewings - get in there quick

Don't just check websites. talk to the agents they will know what is coming onto the market. It is best to get in there quick and view properties asap. as being the first to see a property gives you a head start.

4 Know what you want but be prepared to compromise

Having a clear idea of what you want before you go through the front door is great. but make sure this doesn't close your eyes to potential. Being realistic is also key you may want four bedrooms for ClOOk but that doesn't mean you'll find it.

5 Don't be put off by other

people's taste

Even if avocado walls aren't to your taste. don't let decor get in the way of recognising a good property: a lick of paint and it could be as good as new. Also. don’t be swayed by a swanky interior you can buy that flat screen later. The ‘feel‘ of a house is important but you also need to make sure that the practical considerations have been covered check when the property was last rewired. the central heating was fitted. whether it has been damp-proofed. and if you already own furniture then take a tape measure.

6 Get to know the area

Make sure you check out the area before you buy. It is a good idea to visit at different times of the day a quiet residential area by morning could turn into a party hot spot after dark. Issues such as safety. proximity to shops. transport links and the neighbours could alter your experiences. Also. check with the local authority if any developments are planned that c0uld affect your property.

7 Surveying is the way

A survey is the best way to identify any potential defects in a property. While a valuation survey tells you what the property is worth it will not highlight problems. Getting a building Survey on older buildings may be a big pay out. but could save you thousands in the long run.

8 Getting the offer right

Offering in Scotland can be a tough business. Do your research and check out sold prices for the street and area. as well as gauging what the correct offers over percentage is for the area by speaking to agents.

9 Sealed Bids

Once a property goes to sealed bids you need to decide what it is worth to yOu. Yeti won't know how many people yOu are up against or their financial position. but you can do your homework and make sure the entry date you give suits the seller. Also don't bid in round numbers. you have more of a chance of your bid being accepted by the vendor if you put in an odd figure.

10 Consider the re-sale

If houses have been on the market for a long time. find out why. Is it a noisy area: is it on a busy road? Anything that worries y0u now will worry future buyers too.

12 26 Apr 2007 THE LIST 19