1 in 11 Coventry Properties are Leasehold

There are 23.36 million properties in England and Wales with 64% being owner occupied and 36% being rented either from a private landlord, local authority or housing association.

Over nine out of ten of those English and Welsh owner-occupied properties are a whole house or bungalow. Now, most people would assume they would be freehold – however, of those renting nearly half of rental properties, 44% to be precise, lived in other leasehold apartments and flats.

It might be wise to quickly explain the difference between freehold and leasehold. When someone owns the freehold of a property they own it outright, including the land it is built on, whilst with a leasehold property the leaseholder owns the property for the length of their lease agreement. Leaseholders must pay the person who owns land (the freeholder) ground rent and other fees. When the leasehold ends, ownership returns to the freeholder although the leaseholder can extend the lease or they can buy the freeholder out, but there are rules and regulations with regards doing that.

Therefore, it would be safe to assume that houses are freehold and flats are leasehold .. wouldn’t it? Not necessarily! Most houses are freehold but some might be leasehold – usually through shared-ownership schemes – but more and more new homes builders are selling houses on a leasehold as well. The protection of the law afforded to leaseholders who own a flat is massive, but sadly lacking to leasehold houses sold privately.

Looking specifically at the figures for Coventry, at the last count in CV2 there were 28,615 properties. Since 1995, 20,685 properties in CV2 have changed hands and have been sold. Looking further at those 20,685 transactions in CV2 since 1995, using data from Land Registry and solicitors practice My-Home-Move, 9.13% have been leasehold (lower than the national average of 15%).

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However, I am concerned about a few new homes builders selling new houses (not flats – houses) as leasehold. There has been a growing (yet small) trend for new-build houses to be sold as leasehold in recent years. While not all house builders use this model, those that do maintain it helps make developments financially viable.

The issue comes when builders sell the freehold separately to an investment company without informing the lease holder  – which they are legally allowed to do without telling the leaseholder. In England and Wales, the “right of first refusal” to buy the freehold is written in law to leaseholders of flats i.e. the freeholder must offer it to the leaseholders of all the flats of the building first), but not leaseholders of houses.

.. and this is the point I am trying to get across. If you are buying a new home and it’s a house (i.e. not a flat) – please check very carefully indeed whether its freehold or leasehold. If it is a leasehold, whilst you do have rights, they are not as strong as for those people buying a leasehold flat. I appreciate I am only talking about a very small percentage of the property market, but potentially this could end up costing thousands of pounds to those affected.

To see the value of your property, please visit Newman.uk.com where you can get an instant online valuation of your own property.

Please subscribe to my new YouTube channel; Coventry Property TV found at https://www.youtube.com/channel/UCRxB2n1Kh-5XwOOpHC4yDTg

If you would like to save time and want me to source the whole market and all agents to bring you the best buy to let opportunities, please follow me on twitter: @CovBuy2Lets

For my comments on Coventry’s Property Market, please visit CoventryPropertyMarket.co.uk

For visual idea’s, please visit my boards on Pinterest: uk.pinterest.com/CovBuy2Lets/

My office is located at 2 Greyfriars Court, Greyfriars Road, Coventry, CV1 3RY

For more information, hints & tips, please call me on 024 7650 0005. I am also contactable via email: heenay@newman.uk.com

REMEMBER We are also located in Southam, Leamington Spa and Rugby.

We are experienced in Lettings, Property Management, Block Management, Portfolio Management, Sales and Financial Services.

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Dear Coventry Student Landlords, What if….? (You’re gonna love this!)

 

What if …. you could tell 25,000+ under-graduate students, that you have a property to rent?

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We will pro-actively market your property to a database of students.

Just one reason why I’ve been working so hard to have access to this database is today (18th June 2017), Rightmove is advertising over 2,500 rooms, but most students have already signed up and there are only around £750 students which will be offered a place through Clearance.

So if you’re looking to market your property by a precise targeted method, please call me on 024 76 500 005.

Please subscribe to my new YouTube channel; Coventry Property TV found at https://www.youtube.com/channel/UCRxB2n1Kh-5XwOOpHC4yDTg

 

If you would like to save time and want me to source the whole market and all agents to bring you the best buy to let opportunities, please follow me on twitter: @CovBuy2Lets

 

For my comments on Coventry’s Property Market, please visit CoventryPropertyMarket.co.uk

 

For visual idea’s, please visit my boards on Pinterest: uk.pinterest.com/CovBuy2Lets/

 

My office is located at 2 Greyfriars Court, Greyfriars Road, Coventry, CV1 3RY

 

For more information, hints & tips, please call me on 024 7650 0005. I am also contactable via email: heenay@newman.uk.com

 

REMEMBER We are also located in Southam, Leamington Spa and Rugby.

 

We are experienced in Lettings, Property Management, Block Management, Portfolio Management, Sales and Financial Services.

Coventry Flats Out Perform Property Market Average by 7%

According to the Land Registry’s latest House Price Index for Coventry and the surrounding locality, the value of apartments/flats are rising at a faster rate than terraced/town houses and semi-detached properties.

 

Values of apartments in Coventry have increased by 10.43% over the past year, which is proportionally 7% more than the Coventry average rise of 9.74%. The last time flats/apartments in Coventry out performed all the other types of property was back in the summer of 2003. For comparison, the other property types performed as follows ..

 

  • Detached homes rose by 11.27%
  • Semi-detached homes rose by 9.71%
  • Terraced/Town-Houses rose by 9.25%

 

This moderately increasing rate of property value growth is opportune – but no one should confuse it with a strong and vigorous healthy Coventry property market. Instead, it is somewhat an indicator of the long-lasting lack of property on the market. In fact, I have spoken about the lack of homes for sale in Coventry on a number of occasions in my Coventry Property Blog and whilst it isn’t as bad as it was 12 months ago – choice is quite limited for buyers.

Graph

The average property value in Coventry now stands at £190,800.

When split down into property types ..

  • Coventry Apartments at £130,800
  • Coventry Detached at £401,500
  • Coventry Semi-Detached at £211,100
  • Coventry Terraced/Town-House at £148,100

 

So why have Coventry apartments performed so well, and is it just a Coventry thing? When I scrutinised the figures for the rest of the UK, it appears that apartments are pacemakers in the clear majority of the country. Of the 379 local authority areas in the UK, the value of apartments is rising faster than detached, semi-detached and terraced houses in 320 of them.

So, should Coventry apartment owners be getting out the Champagne? Well, I would keep it on ice as the Land Registry figures are notorious for short term fluctuations. It’s hard to have faith in the fact that Coventry house values rose rapidly last month given that, in the last six months, the Land Registry has frequently made downward revisions to their first published House Price Index figures.

Thankfully, the bigger picture from the Council of Mortgage Lenders (CML) stated that home buying activity last month was up 2% over the same month in 2016 – not bad as we have had the Autumn, Winter and now Spring since Brexit. The CML stated first time buyer’s levels of affordability was being squeezed and that the average amount borrowed by those first-time buyers dropped slightly last month, but the overall amount borrowed (by all buyers) was an impressive 12% higher than the same month in 2016.

So, what next for the Coventry Property market? I believe the uplift in the values of apartments is a short-term blip. The real issue is with the way wage growth might not keep up with inflation as the effects of 2016 exchange rate sucks in inflation (meaning real wage growth stagnates). This will mean buyer demand growth will be curtailed and with property values already so full, I believe a renewed hastening in house price growth is unlikely.

I believe we are starting to return to the housing market we saw in the mid 1990’s, Steady demand, steady supply – nothing silly when it comes to house price growth. Therefore, I believe, with what is happening around us – this isn’t a bad thing at all. HMS Coventry Property Market…. “Nice and steady as she goes”, says the Captain

To see the value of your property, please visit Newman.uk.com where you can get an instant online valuation of your own property.

Please subscribe to my new YouTube channel; Coventry Property TV found at https://www.youtube.com/channel/UCRxB2n1Kh-5XwOOpHC4yDTg

If you would like to save time and want me to source the whole market and all agents to bring you the best buy to let opportunities, please follow me on twitter: @CovBuy2Lets

For my comments on Coventry’s Property Market, please visit CoventryPropertyMarket.co.uk

For visual idea’s, please visit my boards on Pinterest: uk.pinterest.com/CovBuy2Lets/

My office is located at 2 Greyfriars Court, Greyfriars Road, Coventry, CV1 3RY

For more information, hints & tips, please call me on 024 7650 0005. I am also contactable via email: heenay@newman.uk.com

REMEMBER We are also located in Southam, Leamington Spa and Rugby.

We are experienced in Lettings, Property Management, Block Management, Portfolio Management, Sales and Financial Services.

Video

This is why we have a long waiting list of Student Tenants, in Coventry….

 

By understanding the needs of the consumer; Student Tenants and using my experience to assess the market, I’ve identified a niche.

Its to no surprise that the accommodation we offer, gets booked so quickly and we still have a long waiting list of students.

If you’re a Landlord looking for student tenants, for Coventry University or University of Warwick, please call me immediately on 02476 500 005.

 

Video

Newman Student Lettings – Launch

 

I’m very pleased to announce the launch of Newman Student Lettings. We’ve analysed the market and carried out extensive research to enable our landlords to achieve high rental yields whilst minimising the risks.

By using our tried and tested template, we GUARANTEE success. For more information, please call me on 02476 500 005.

I will be releasing a series of short video’s, outlining our key learnings and highlighting our USP’s.

Please subscribe to my new YouTube channel; Coventry Property TV found at https://www.youtube.com/channel/UCRxB2n1Kh-5XwOOpHC4yDTg

If you would like to save time and want me to source the whole market and all agents to bring you the best buy to let opportunities, please follow me on twitter: @CovBuy2Lets

For my comments on Coventry’s Property Market, please visit CoventryPropertyMarket.co.uk

For visual idea’s, please visit my boards on Pinterest: uk.pinterest.com/CovBuy2Lets/

My office is located at 2 Greyfriars Court, Greyfriars Road, Coventry, CV1 3RY

For more information, hints & tips, please call me on 024 7650 0005. I am also contactable via email: heenay@newman.uk.com

REMEMBER We are also located in Southam, Leamington Spa and Rugby.

We are experienced in Lettings, Property Management, Block Management, Portfolio Management, Sales and Financial Services.