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First Time Sellers, Second Time Buyers

First Time Sellers, Second Time Buyers

About the current Property Market in Edinburgh

2018 has started off pretty much as we found the market in 2017. There does seem to be a lack of properties coming on to the market which is driving prices up as there are plenty of first time buyers out there looking to get their first step on the property ladder.

This is good news for people like you who are thinking of moving as many properties are achieving sale prices well above Home Report value.

But the downside is and you have probably found this if you have been keeping an eye open for properties on the ESPC website that there a probably not so many properties that take your fancy and those properties too are likely to be popular with many buyers and so you too will probably have to offer above Home Report value.

The hope is that in 2018 we shall see more properties coming onto the market and with that, we will see a balance in the market.

Are you worried that you are stuck in a mortgage with an Early Repayment Charge?

It is worth checking your mortgage to see if you are tied-in to a mortgage that has a penalty payment if you pay-back your mortgage early.

If you have such a deal, then one of the ways of avoiding paying that penalty is to port your mortgage.

What is “porting”?

Porting is transferring your mortgage from your current home, to the next home. Although the process is often simplistically described as taking your mortgage with you when you move, what in fact happens is that you repay your existing mortgage when you complete the sale of your current home and resume the mortgage on the same terms with your new property.

The advantage of porting the mortgage is that this often means that you do not have to pay the penalty payment for paying off the existing mortgage early. And this can sometimes be a substantial saving.

What you have to bear in mind is that you can only port your mortgage with the same lender and any increase in the debt will be on the lenders current terms, which may not be the most competitive on the marketplace.

It may therefore still be worth considering the paying of the penalty and going with a different lender. Of course it is important to take advice from an independent mortgage adviser, as then you will get independent and individual advice based on your specific circumstances.


Are you thinking of starting a family?

One of the main reasons for people wanting to sell and move up to a larger property is because the need the space for children.

Often people wait until their first child is born before thinking of moving but here’s a tip: If you are thinking of starting a family and foresee the need to move into a larger property because of this, it may, in some cases, make sense to buy the larger family home first, and then start the family.

The reason for this is that lenders will always do an affordability check when you apply for a mortgage and the costs of looking after the child or children is taken into account and may possibly reduce the amount you can borrow.

The same applies if one of you is thinking of giving up work for a couple of years once the first baby arrives. Move now to be able to get the maximum mortgage.

Related Articles: Selling and Buying with Children and Moving Day with Children.


Get in touch

If you think it would be useful to have a chat to discuss what you might get as a mortgage, or about porting your mortgage, then get in touch.

David Lauder
Mortgage Adviser at the ESPC
[email protected]
Tel: 07810 522 422

The information provided in this article is provided in good faith. Whilst every care has been taken in the preparation of the information, no responsibility is accepted for any errors which, despite our precautions, it may contain. The contents of this article should not be taken as being a personal recommendation. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOANS SECURED AGAINST IT.

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ESPC House Price Report Feb 2018

ESPC House Price Report Feb 2018

If you haven’t already had a chance to read the latest ESPC House Price Report then it makes for interesting reading.

In many ways the Report confirms what is already acknowledged in the property profession in Edinburgh; namely that property prices continue to rise in and around Edinburgh and that the most likely explanation for this is that fewer properties are being brought to the market creating an imbalance between sellers and buyers in favour of sellers and resulting in property price increases.

And certainly we are seeing evidence of this every week with buyers ( particularly first time buyers) in competition at closing dates and having to offer well over the home report value and we mean significantly more. And almost all of the properties we list are getting multiple interests and selling at closing dates.

Which areas of Edinburgh are experiencing bigger price increases?

This is the interesting part of the Report. It compares property prices over the quarter Dec 2017 – Feb 2018 with the quarter for Dec 2016 – Feb 2017.

Now it has to be said that these are just averages but this is what the Report tells us:

  • The average price of a 2-bedroom flat in Portobello/Joppa increased by 28.6%
  • The average price of a 2-bedroom flat in Trinity/Newhaven/Inverleith increased by 23.4%
  • The average price of a 1-bedroom flat in Dalry/Gorgie/Slateford/Chesser increased by 28.5%
  • The average price of a 3-bedroom house in Liberton/Gilmerton increased by 28.2%

Those are huge increases.

More locally to us:

  • The average price of a 1-bedroom flat in Leith Walk/ Easter Road / Pilrig / Bonnington increased by 17.1%
  • The average price of a 2-bedroom flat in Leith/ The Shore / Granton increased by 10.8%

Not all areas of Edinburgh are experiencing these high price increases. The report shows:

  • The average price of a 3-bedroom house in Corstorphine/ Clermiston/South Gyle/ East Craigs fell by 9.3%
  • The average price of a 1-bedroom flat in Polwarth/Shandon/Tollcross fell by 2.2%

What does this mean for Sellers in Edinburgh?

Without a doubt, the current property market in Edinburgh favours sellers but if you are a seller looking to move up the property ladder then you will probably find that (1) there are fewer properties for you to choose from and (2) since you are likely to be in competition for those properties you have to expect to have to pay a premium (ie offer well over the home report value) for those properties.

And this is of course part of the reason why there are fewer properties coming onto the market. Sellers looking to move up are finding nothing they want to buy.

The fear for such sellers is that they will put their property on the market, sell quickly and make a tidy profit but will then find themselves unable to find a new property they like enough to want to buy. The end result would be that they will then be forced into rented accommodation until they then find a suitable property. So, two moves instead of one and renting can be quite expensive when compared to paying a mortgage.

It is possible to buy before you sell but the property industry is still a little prejudiced by this and prefers a buyer who already has their property under offer. But this is likely to become more common and it is hoped that the professionals in the property market will become a little more tolerant of such sellers/buyers as we go through 2018.

But there are several types of seller which really do stand to gain from the current market:

  • Sellers looking to move away from Edinburgh to places like Midlothian and Fife
  • Sellers looking to move into a new build property
  • Sellers looking to downsize
  • Landlords looking to sell an investment property
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Leith History – Mulberry Harbours

Leith has always held a strong history in Edinburgh but perhaps one of the less known achievements is the involvement in constructing the Mulberry Harbours used at D-day; floating harbours which were used to provide Port facilities in the later days of World War 2, until an existing French Ports could be captured.

The Mulberry Harbours consisted of 3 parts – pier-heads & quays, floating roadways, and breakwaters. It was the pier-heads which were constructed in Leith in between 1943-1944, within the space where Ocean Terminal is now located.

Over 400 parts were required for the Mulberry Harbours, each constructed in areas of the UK. Once complete, they were shipped to Normandy across the English Channel in June 1944 for D-day and constructed within a matter of days.

Unfortunately due to the worst storm seen at Normandy in 40 years, only one of the two Mulberry Harbours survived long enough to play a defining part in the War, being used to provide equipment and supplies to troops invading the German military occupied nations.

The Mulberry Harbours played a vital part in the end of World War 2, allowing the Allied troops access through the Atlantic Wall and a successful invasion of mainland Europe, most of which was under German military control. Following their placement in June 1944, the surviving Mulberry Harbour remained in use until the October, with the war finally ending in the August 1945.

Leith History - Mulberry Harbours Edinburgh

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Luxury retirement village in Granton

Granton

With the new Marina Development in Granton given the go ahead in 2016, we are now starting to see what is really in store for the regeneration.

Reports today – tell that as well as the proposed commercial, retail and leisure plans of the £500 million redevelopment, we can also expect a Luxury Retirement Village.

The 104-home development on the Granton waterfront will include a library, landscaped gardens and a 24-hour concierge service for residents. It will be exclusively for residents over the age of 55 and will provide a new kind of retirement experience for the residents of Edinburgh. Plans also include a bistro, sauna and cinema within the retirement village, all reserved for private use of it’s residents.

Just 2 miles from Edinburgh’s city centre it is also hoped that the tramlines will eventually extend to Granton, giving the area even better connections to the rest of the city.

Full plans of the Luxury Retirement Village are expected early this year.