If you are thinking of a move to one of the most scenic and popular countries then you should be aware of the costs before you go. Moving away from the UK is currently extremely popular for many reasons including the costs rising and the disappointment many feel for the UK government in helping the public.

Canada is known for beautiful lakes, fun cities and a fairly transparent government which people appreciate. Despite Canada being a popular move for brits, Canada is also very expensive to live and the prices are only rising too.

The cost of living in Canada

For a family of 4 living in Canada excluding the cost of rent, their monthly costs average at around £3,065 ($5208.07).

This is 7% higher on average than the cost of living in the UK.

Rent in Canada is around 10.5% higher than the average rent in the UK as well.

The high inflation and interest rates which are at the highest level in 22 years, are causing prices to become unbearable for many residents.

Where to live in Canada

The most expensive place to live would be Vancouver and small towns in Quebec are the cheapest areas to live.

Why are prices so high?

The rising prices of houses and rented property is due to the limited supply and high demand in cities like Vancouver and Toronto. This increases the prices of living here as there is a massive increase in the population here.

Due to the rising population, 315,000 new residences will need to be built every year between now and 2023 to keep up with the demand.

The government is trying to solve their housing crisis by building more homes including affordable housing. They aim to bring down the cost of building and helping cities to create homes quickly and efficiently on a lower cost.

Your mortgage should be your top priority debt over any other forms as missing or falling behind on payments could result in serious consequences.

What will happen If I can’t pay it back in full?

Most lenders will allow for 3 missed payments before they start taking action.

If you have taken out a mortgage and are now struggling to pay back the full amount then you could be in danger of being taken to court to have your property repossessed.

The mortgage lender will take possession of your property so they can sell it and cover the costs of your repayments with the value of the house. You will no longer own your house and could only buy the house back by making a lump payment

What you could do

• Ask your lender if you can pay your debt over a longer period of time.
• Talk to your lender if there has been a sudden, unexpected change in your household income.
• You could be allowed to have a pause on payments for a few months.
• You could switch to a cheaper mortgage

The UK property market has seen sky rocketing prices including rising mortgage rates making it more difficult for people to get on the property ladder. House prices have been falling slowly even in places like Manchester.

Where has seen the biggest price falls?

East of England, South East and South West have seen the largest price falls in the last year with the average home costing £344,000.

This is still +30% above the UK average.

The Property market 2024

Zoopla has recorded that there is currently an increase in sales and demand for house meaning on either side of the transaction this could be getting easier

There is 15% more property sales agree than in 2023.

An 11% uplift in buyer demand as buyers return to the market.

There are also 21%  more homes for sale which is increasing the choice for buyers.

The most expensive places to buy a house

London will always win the top spot and currently the average price here id £523,400 which is almost two times more than the UK Average.

Introduction

Property development finance plays a pivotal role in the Scottish real estate landscape, enabling developers to transform concepts into tangible assets. Whether you’re a seasoned developer or a newcomer, understanding the intricacies of financing is essential. In this guide, we delve into the specifics of property development finance in Scotland.

1. Mechanics of Property Development Finance

Understanding the mechanics of property development finance is crucial. Here are the key components:

2. Loan Amount

The loan amount typically represents a percentage of the property or land purchase price. Additionally, lenders consider funding for refurbishment costs or ground-up construction. As a developer, you’ll receive the necessary capital to kickstart your project.

Property Development Finance: Typically, property development loans in Scotland can be used for a borrowing requirement of £750,000 to £50,000,000 with a loan term of 9 to 36 months.

Bridging Loans: Typically, bridging finance can be used for property development projects with a borrowing requirement from £50,000 to around £2,000,000 with a loan term of 3 to 24 months.

3. Loan Term

Property development finance in Scotland can span from 6 to 30 months. Repayment occurs either from the sale proceeds or through refinancing. The goal is to complete the project efficiently and repay the loan promptly.

4. Monthly Drawdowns

Throughout the development process, lenders release funds based on Quantity Surveyor reports. These reports ensure that the funds align with the project’s progress. As milestones are met, you can access the necessary capital to keep the project moving forward.

5. Choosing the Right Solution

Selecting the right financing solution depends on various factors:

• Project Scale: Consider whether your project involves light development, extensive renovation, or ground-up construction.
• Experience: Your track record as a developer influences the financing options available to you.

6. Popular Uses for Property Development Finance

• New Residential Projects: Property development finance is ideal for ground-up developments, such as building new housing estates or apartment complexes. It covers land acquisition, construction costs, and infrastructure development.
• Renovating Existing Properties: Developers can use property development finance to transform old or dilapidated buildings into modern, desirable spaces. This includes renovations of historic properties or repurposing industrial sites.
• Property Conversion - Change of Use: Property development finance supports converting existing buildings for different purposes. For instance, turning a former office building into residential apartments or converting a warehouse into creative workspaces.
• Private Rented Sector (PRS) Schemes: These involve developing residential properties specifically for renting. Build to Rent schemes cater to the growing demand for high-quality rental accommodation.
• Commercial Developments: Property development finance can fund the construction or renovation of commercial spaces such as offices, retail centres, and warehouses. These projects contribute to economic growth and job creation.
• Mixed-Use Developments: These combine residential, commercial, and sometimes leisure spaces within a single project. Examples include live-work developments, where residents can run businesses from their homes.

Conclusion

Property development finance bridges the gap between vision and reality. Seek advice from experts, explore your options, and embark on your Scottish property journey with confidence. Remember that each project is unique, and finding the right financing partner is essential.

Before you Begin the Application Process:

Consult with an Expert Property Development Finance Broker: At Evolve Finance we understand how property development finance works and can guide you through the intricacies of the process, helping you explore all available options.

In the dynamic world of property development, the concept of Build to Rent (BTR) has emerged as a transformative force, reshaping the approach to residential projects. At its core, BTR is a strategy that caters exclusively to the rental market, diverging from the traditional focus on sales. This innovative financing model is not just about constructing buildings; it’s about fostering communities and redefining urban living.

Understanding Build to Rent Development Finance

Build to Rent Development Finance is a specialised loan designed for professional property developers and landlords with an eye on the burgeoning rental market. Unlike traditional property development loans, BTR finance is tailored to support the construction of properties intended solely for renting. This financial solution effectively bridges the gap between the upfront costs of development and the subsequent rental income.

How It Works

BTR Development Finance operates similarly to a traditional mortgage, where a sum is borrowed and repaid over time. However, it distinguishes itself in several ways:

• Funds are released in stages, corresponding with the development milestones.
• The loan is secured against the properties under development.
• Repayment is typically sourced from rental income or refinancing post-completion.

Who Benefits?

This type of finance is ideal for developers aiming to create multiple rental properties and landlords seeking a bridging solution to manage development costs before the rental income stream begins.

The Advantages of Build to Rent

The BTR model offers numerous benefits:

• Stable Income Stream: Long-term rents provide a consistent revenue source.
• Community Building: Developments often include communal spaces, enhancing tenant satisfaction and retention.
• Attractiveness to Investors: The predictable returns appeal to institutional lenders, such as pension funds.

Key Considerations

When considering BTR Development Finance, developers should weigh several factors:

• Market Demand: Ensuring a strong rental market is crucial for the project’s success.
• Quality of Development: High standards can command higher rents and attract long-term tenants.
• Financial Planning: Accurate cost projections and cash flow management are essential.
• Exit Strategies: It’s crucial to have a well-planned exit strategy, a long-term commercial mortgage can be put in place before the start of the build to repay the BTR finance upon completion of the build. Alternatively, development exit finance can be utilised when the project is nearing completion and whilst waiting on the long-term mortgage completing.

Conclusion

Build to Rent Development Finance is more than just a funding mechanism; it’s a catalyst for innovation in the property development sector. By aligning financial strategies with the needs of modern renters, developers can not only profit but also contribute to the evolution of urban housing.

Before you Begin the Application Process:

Consult with an Expert Broker: At Evolve Finance we understand how build to rent development finance works and can guide you through the intricacies of the process, helping you explore all available options.

The government has announced that they will be increasing the cost of council tax due to the rate of inflation in the UK.

How they calculate your council tax

The cost of Council tax is determined from the valuation of the property from 1991 in England and Scotland and 2003 in Wales. If your property did not exist then it would have a valuation completed by the Valuation Office Agency (VOA). New builds will be compared to similar properties in the area.

The VOA value the property based on…

• Size
• Layout
• Character
• Location

The property will be placed in a band where Band A is the cheapest through to Band H which is the most expensive.

Council tax varies depending on each county and the needs for the area. Your local council will set the price for each band’s council tax bill.

Council needs include, street cleaning, community infrastructure, the police and fire services in your area, street lighting, rubbish collection and more.

How you pay your council tax

If you are moving into a house soon and are unsure how council tax works, there is no need to panic. Once you move into the property you will be sent a letter from the government with your council bill included along with the process to pay it. You will be sent this letter once a year in April when you expected to pay, you should then set up direct debits to ensure this is paid on time.

The payments are usually split into 10 monthly payments form April- January starting from the month you possess the property.

You can pay your bill online, or alternatively there would be pay points in your area, such as, the post office.

Extra costs of buying a house such as council tax is why it is important to understand how much of your salary should be spent on your mortgage so you can afford all the costs included in moving into a house.

Can I get a reduction?

You could be eligible for a reduction or exemption from council tax if you meet the criteria below.

• You are on a low income
• You are a student or live with t a student
• You live alone or are the only adult in the property
• You are a member of the armed forces
• You have a severe mental impairment or live with someone who does
• You have moved into a care home or the hospital

According to Zoopla, the average UK rental price is currently £1,223 which is a +7.8% increase over the last year.

Are rental prices rising higher than the growth of wages?

The Guardian have reported that there is an expected further 13% increase in rental prices by 2027. The Office for Budget Responsibility have found there is only a predicted 7.5% increase in wages for the average worker over that same time period.

The affordability of rental homes will become more difficult as wages don’t match the cost of homes.

The minimum wage in the UK has recently been increased, however, this is still not enough to combat the cost of living.

Why are rental prices increasing?

There are almost a 5^th (18.8%) of UK homes which are privately rented as of 2023. This mean with so many people renting the demand for property is increasing, due to the accessibility to buying a home has become more difficult for the population. Despite House prices falling, they are still too much for many to start their journey on the property ladder which leaves many still renting.

There is a short term fall in prices

The increase in rental prices is slowing and despite the +7.8% increase, this is the slowest rate of growth seen in the last 2 years showing a gradual decline.

The demand for rented homes has dropped by a 5^th over the last year as well which is causing landlords to reduce their asking prices.

Data from Rightmove shows that the average time a property is listed before either being let or placed under offer has gone from 33 days to 39. Landlords are being forced to decrease the prices and renters are saving.

Chesterton’s letting agency in London revealed there has been 41% more rental property available than in January 2023. With more property available renters can take longer to decide and also be more specific with what they want.

Rental prices are slowly falling with London experiencing the biggest inflation slowdown, currently rising at +5.1% compared to last year’s rates of +15.3%.

Despite this inflation slowdown rent is still 29% higher on average than pre-pandemic levels and this is not expected to last into the coming years.

London

London residents are paying at least 50% more for rent that anywhere else in the UK according to USwitch.

London remains the most expensive place to live and rent in the UK with the average rental prices at £2119 per month.

Your mortgage is going to be a huge financial investment and something new to factor in to your budget and financial abilities. When deciding what mortgage to borrow both yourself and the lender will have to evaluate your current financial situation including any existing debt to decide what repayments you can comfortably make.

Before you start the mortgage application process you should know how much to expect.

Mortgage to Income ratio

It is sensible to keep this ratio as low as possible to ensure you will be able to sustain it. If you miss payments or cannot make the re payments you could have increased interest added on as well as more severe consequences such as repossession.

Using  no more than30-40% of your post-tax income for your mortgage is a popular method for home owners and mortgage lenders too.

Lenders will generally prepare to lend 4.5 times your annual salary.

For Example…

If your annual salary is £50,000 and you have no debts then your maximum mortgage will be £255,000.

If your annual salary is £30,000 and you have no debts then your maximum mortgage will be £135,000.

If you are applying as a joint holder with somebody else then the lender will review both finances and your mortgage loan could be higher.

A big move is expensive and everything you need will add up very quickly so it is vital you have started saving before you begin.

You should try to save up to 3-6 months’ worth of living expenses so you can afford the move and to settle in. You will need enough to cover all the initial costs such as insurance, a car, finding your new living space and more.

For example the estimated living costs for Melbourne, is $2500 a month.

If you have your visa ready and are getting prepared for the move there are some ways you can keep the costs down.

6 hacks to use to keep the cost of moving to a minimum.

• Sell your belongings before you move

In the months leading up to your move you should gradually begin selling your belongings, furniture, kitchen ware and anything else you don’t need. You will be able to buy these things when you move and this will save you time and money in the long run as the shipping costs will be large.

• Open a bank account before you move

You are able to start the process to open a bank account in Australia before you get there, meaning once there you only have to go in the bank branch with proof of your documents and then you easily have a new bank account. This will save you on transaction fees and you will be able to easily spend money in your new home. Without an Australian bank account you will be charged fees when you withdraw or spend any money.

• Think about the timing

Often the prices of moving as well as rent prices will fluctuate throughout the year, this could be because in September, students are moving and this raises the prices. You should research what your new city is like as this could impact the time of year that is best to move.

• Don’t take your car with you

Not only are the shipping costs to get your car to Australia expensive there are also hefty import taxes you are required to pay. For any move abroad you will be better off selling your car or vehicle in the UK before you move and finding a new one once you are settled.

• Invest in proper travel insurance before you start the journey

Travel insurance is a vital part on your check list and will protect you from a large cost in case of emergencies. Don’t skip on travel insurance as there are many reasons you should invest.

• Start the house hunt early

When moving to Australia you should definitely be searching for your new home as early as you can as there are so many others who are looking for property too. If you find a place to stay quickly you will be able to cut down on the costs of staying in a hotel during the search. This will also help you find somewhere to live for a decent price.

Rent prices in Australia have been rising and currently the average price of renting in Sydney is $750 per week and in Melbourne it is around $550 per week.

So you have found your dream property and have had your offer accepted, now you are ready to handle the nitty gritty mortgage details.

You will have to find the best mortgage deal that works for you and then you can apply online or over the phone. You may choose to go with a broker to help you get the best deals.

Do you need a mortgage broker?

A broker is a qualified and regulated mortgage advisor. They should remain unbiased and be there to help you wade through all the offers and find you the best deal for your situation.

Having a broker will save you time and effort trying to find the best deal, they will also be able to handle the negotiations with the lender for you. A broker will help you understand the mortgage rates and know what you will need.

Make sure to be upfront with the broker about your finances and credit so they can do their job properly.

You either pay them a broker fee which is usually around £500-1000 or they will receive a procuration fee from the lender, which won’t affect your total.

If you are confident you can find the best deals yourself then you can skip this step and move on.

What you need for your application

You will need original copies of all the forms listed below, make sure you have these ready before starting the process, this will help you speed things up.

• A form of ID, e.g. a passport
• Details of your current employment
• At least 6 months’ worth of payslips
• Proof of current address
• Proof that you have the deposit
• Tax return forms, if you are self-employed
• Your latest P60 tax form

A mortgage in principle

This is a conditional offer from a lender with no guarantees this will go through to completion. This helps buyers to have a sense of confidence during the process whilst the lender continues with their checks

The lender will complete credit checks, these could damage your score so make sure not to have too many in short space of time.

‘Soft’ credit checks leave a less visible sign to the next lender so check which type they are using.

Don’t rely on your existing bank or building society as this vastly limits your options and cuts the market short.

Fees

On top of all the big payments you’re making to buy a house it is important to factor in all the other fees you have to think about too.

Arrangement fee

You will pay this to the lender and it can go up to around £2000 which you can pay upfront or add on to the price of your mortgage. If you pay upfront be aware that this is a non-refundable sum even if your offer falls through.

Booking/reservation fee

Some lenders will charge this fee to secure a fixed-rate, tracker or discount deal. This will be around £100-200 and is again non-refundable which you can pay upfront. Sometimes this will be rolled into the arrangement fee and won’t be a separate charge.

Valuation fee

The lender will carry out checks on your chosen property to determine the value in case you miss payments and the property is repossessed. The cost of this will depend on the property value. You can also ask for a survey at an extra cost which will check for any hidden damages and structural problems which is especially important if you are buying an old house.

Legal fees

This is paid to your solicitor and covers all the legal work needed when buying a house including, conveyancing which searches local authorities data for hidden damage on the property. This will cost roughly £500-1500.

Stamp duty

This is a tax paid to the government which some developers will offer to pay if you are buying a brand new home.

The price depends on the property value.

If the property price is between £300,001 to £925,000 then you will pay 5% in stamp duty.

The application process in total can take months to reach completion which is why before you start, it can be helpful to make sure you have all the information, are sure you can cover all costs and have all the correct documents.

Happy Mortgage hunting!

As of March 2024 below are the best 2 year and 5 year fixed term mortgage rates.

With a fixed term mortgage you will not be affected by changing interest rates and you will often pay lower rates than if you were on a variable rate mortgage.

If your fixed term is coming to an end this year and you are worried about the rise in mortgage rates then make sure you are comparing the best deals.

2 year fixed term mortgages

Barclays

• LTV – 60%
• Interest rate – 4.5%

Natwest

• LTV - 60%
• Interest rate – 4.64%
• deposit – 40%

Halifax

• LTV – 60%
• Interest rate – 4.6%

5 year Fixed term mortgages

Natwest

• LTV- 60%
• Interest rate – 4.24%
• Minimum loan amount - £25,000
• Minimum Deposit – 40%

HSBC

• LTV - 60%
• Interest rate – 4.24%
• Maximum loan amount - £5,000,000
• Offers a 10% annual overpayment allowance

Is a 2 or 5 year fixed term better?

As seen above, currently 5 year fixed term mortgages offer lower interest rates meaning you will have to pay back less over time.

A 5 year fixed term is a long term commitment so you have to make sure you will be able to make your repayment for the whole duration.

Pros of a 2 year fixed term

• You will be able to switch lender to get a better deal after only 2 years so that when rates fall you can benefit.
• You are usually able to make over payments in a 2 year term meaning you will be able to pay off your loan quicker, saving on interest over time.

Cons of a 2 year fixed term

• You will have to remortgage sooner and could have to pay fees to do so.
• At the end of the two years, interest rates could be higher giving you a more costly rate.

Pros of a 5 year fixed term

• This offers you stability knowing what your monthly payments will be each month regardless of what happens to the base rate. This can help you with budgeting and financial planning.
• If you know your current financial situation won’t change and you are happy with the rate then this a great way to avoid the hassle for a while.

Cons of a 5 year fixed term

• If you want to take advantage of the changing interest rates then you will be unable to do so with this term.
• You will paying out for a longer time and so will have less disposable income.

London, a city where history and modernity converge in a stunning tapestry of architectural marvels, stands as a beacon of heritage and innovation. The city's diverse skyline, shaped by centuries of cultural and historical influences, not only defines its aesthetic charm but also sets the stage for one of the world's most coveted real estate markets. This article delves into the essence of London's architectural allure, explores the prestigious real estate market it nurtures, and offers a guide to navigating the complexities of buying property in this iconic city.

The Evolution of London's Architecture

From the cobbled streets of the Roman Londinium to the soaring glass facades of The Shard, London's architectural journey is a testament to its enduring legacy and constant evolution. The city's landscape is a living museum, showcasing an array of styles from the timber-framed houses of the Tudor period to the grandeur of Georgian symmetry and the ornate designs of the Victorian era. In more recent times, the skyline has been punctuated with modernist and postmodernist influences, creating a dynamic juxtaposition that captivates both residents and visitors alike.

Iconic Districts and Their Architectural Significance

The architectural diversity extends into London's various districts, each with its own unique character. Mayfair and Belgravia exude elegance with their Georgian townhouses and leafy squares, while the Gothic spires of the Houses of Parliament and the intricate facades of the Victorian era tell a story of London's imperial past. The contemporary skyline, featuring structures like 30 St Mary Axe (the Gherkin) and the London Eye, speaks to the city's forward-looking ethos, blending seamlessly with the historical backdrop.

The Allure of London Real Estate

London's real estate market is as varied as its architecture, with properties ranging from historic homes in conservation areas to luxurious modern apartments overlooking the Thames. This diversity, coupled with the city's global financial and cultural significance, creates a high-demand market, particularly for luxury and heritage properties. The scarcity of such properties in desirable areas like Kensington, Chelsea, and Westminster further adds to their exclusivity and value.

The Global Attraction

The city's architectural heritage and cosmopolitan lifestyle continue to attract a global audience, making London a hotspot for international investors and affluent buyers seeking a home and a piece of history and prestige. This international demand plays a significant role in driving the market dynamics, keeping London at the pinnacle of real estate desirability.

Navigating the Purchase of Property in London

Buying property in London is a journey through a market renowned for its complexity and competitiveness. Prospective buyers face a myriad of considerations, from understanding the nuances of leasehold vs. freehold to navigating the intricacies of the city's planning and conservation regulations.

Financial Considerations and the Role of High-Value Mortgages

Setting a realistic budget is the first step, encompassing not just the purchase price but also additional costs like stamp duty, solicitor fees, and potential renovations. For many, especially those looking at the higher end of the market, securing a mortgage is a key part of the financial equation. Here, bespoke mortgage solutions providers like Henry Dannell come into play, offering tailored services to navigate the unique challenges of high-value property transactions with unparalleled expertise and personalised attention.

The Step-by-Step Purchase Process

The process of buying a property in London involves several key steps, starting with an in-depth market research to find the right property. Once a suitable property is found, the process moves to making an offer, conducting legal checks, and finally, completing the sale. Each step requires careful consideration and, often, the guidance of experienced professionals, from real estate agents to solicitors and financial advisors.

The Future of London Real Estate

Looking ahead, London's real estate market continues to evolve, with sustainability and innovation at the forefront of new developments. The city's commitment to green spaces and energy-efficient buildings is setting new standards, ensuring that London remains a desirable and livable city for generations to come.

Conclusion

London's architectural splendour offers more than just aesthetic pleasure; it forms the foundation of one of the world's most prestigious real estate markets. For those aspiring to own a piece of this historic city, understanding the market's complexities and seeking expert financial guidance, such as that provided by specialists like Henry Dannell, is key to turning aspirations into reality. In the end, buying property in London is not just an investment in real estate but an investment in a lifestyle enriched by history, culture, and architectural beauty.