The property market can be daunting for first time buyers and add Covid-19 into the equation and you have a challenging situation. However it’s not all doom and gloom as property expert Samantha Pattle explains:

The property market is facing unprecedented demand partly fuelled by the changes the pandemic has brought with it.

At Battens Solicitors, we appreciate that trying to get on the property ladder for the first time can be a difficult experience, but especially for those who have been trying to secure a mortgage in the last year. In 2020 interest rates were rising and the majority of Mortgage Lenders were no longer accepting deposits as low as 5%. This was because Mortgage Lenders were limiting the distribution of mortgages offered and only typically accepting those who needed to borrow a smaller amount from them and who had a higher deposit. This made it almost impossible for the majority of first time buyers who would only be expected to have smaller deposits.

Now that the economy is starting to open up again, we have seen a rise in mainstream Mortgage Lenders such as Natwest, Nationwide, Halifax and Santander beginning to accept not only 10% deposits, but also 5% which is great news for those now buying for the first time or even those looking to purchase on again.

What is a 95% Mortgage?

• A 95% mortgage; known as a 95% loan to value (LTV) mortgage, is a mortgage to purchase a property with a small deposit (at least 5% but less than 10% of the purchase price).

This mortgage will be provided on completion with a term set and you will then pay the mortgage off monthly once the purchase transaction has completed.

• Your deposit is the amount of money that you need to put towards the property to make up 100% of the final purchase price.

What does this mean for a First Time Buyer?

A Mortgage Lender is likely to allow you to borrow more than they would have done in recent years. You can find a property to buy once you have saved at least 5% of the purchase price and, as long as the Mortgage Lender believes this is affordable for you, they will lend the remainder of what you need to purchase the property. This means that you could be eligible to buy your first home even earlier than you thought and you don’t have to save quite as much money to do so and get onto the property ladder.

Should you, a friend or colleague be looking to purchase a first home, please do not hesitate to get in contact with a member of Battens’ residential property team for a quote or further information which we should be happy to provide.

For further information please contact Samantha Pattle on 01935 811317 or email [email protected]

Expert monthly help from the team at Porter Dodson LLP.

In my January column, I expressed a hope that the Chancellor would give us early warning  of any extension to the stamp duty holiday and a plea to clients to help us achieve deadlines by being proactive in doing essential initial paperwork so valuable time was not lost…..roll the clock forward: eight months on, where exactly are we now?

The year to date has been stressful and exhausting for everyone moving home and more so for all the professionals in the process: agents, conveyancers, surveyors and lenders.  In this part of Dorset, I can report it is far from over yet.  June 2021 saw the Porter Dodson Sturminster Newton conveyancing team opening more conveyancing files than any month in the prior twelve-month period with higher value transactions where stamp duty savings are not the drivers.

The market in the south west is still extremely active: some would-be buyers report that agents are unwilling to engage in discussions unless already exchanged on their sale or sitting on cash.  Sealed bids are back with a vengeance and properties sell even before brochures can be produced.  Some properties sell for well in excess of the first asking price in a matter of days.  But sellers are struggling to find next homes and those deciding to break their transactions and head to rented accommodation in between are also discovering a shortage of suitable rental properties. 

The continuing buoyancy belies the expectation that the end of the full stamp tax holiday and the impending end of the reduced relief are what has stimulated all this activity:  rather, it comes from a reassessment of what people want from their homes, the fact that many people managed to save during the numerous lockdowns and finally, that mortgage rates remaining attractively low for those not worried about  job security.  Oh – and we live in a wonderful and highly desirable corner of the UK and we should not forget it!

So, what happens next?  There certainly is a need for the return of an orderly market.  I hope that those who have purchased in this overheated market at generous prices do not come to regret it in future.  I hope that the economy strengthens across the board and employment levels are strong so that jobs do not disappear, and we have no fear of once again encountering the spectre of negative equity that caused havoc in the 1990s and again, around 2008.  But as to where we end up this time next year, only time will tell!

Jenny Cottrell

We all know how important it is to have an up to date will. But what if someone loses the mental capacity to make or update their will?

1 in 14 people over the age of 65 and 1 in 6 people over the age of 80 suffer from dementia, plus people lose testamentary capacity from head injuries or other health issues. Not having the ability to execute a will where family circumstances have changed, can lead to real problems and huge upset for families.

Under an old will or the intestacy rules (which apply if someone dies without a will) the deceased’s estate may pass to an estranged spouse or an estranged child; a long term partner, child or grandchild may be left out; or there may be a larger than necessary inheritance tax bill to pay. These are just some of the possible consequences resulting from the deceased having been unable to update their will.

Frequently, such situations lead to protracted and expensive probate dispute. However, there is, in many cases, a solution in the form of a statutory will. A statutory will is a will which is drafted and signed on behalf of the person who lacks capacity and approved by the Court of Protection. The court will approve a statutory will where it finds that is in the best interests of the person who lacks capacity.

Statutory wills are not commonly applied for, mainly because firms don’t have the knowledge or experience to do so. We are experienced in dealing with statutory will applications, having made 4 recently and having 3 solicitors that specialise in this area of the law. We also specialise in contentious probate, Inheritance Act claims and disputes relating to Court of Protection matters. If you would like advice about any of the above please contact Lucy Mignot on 01305 217303 or [email protected].