Tag Archives: children
Home valuation rush expected for inheritance tax change in England and Wales
There is set to be a rush of home valuations in England and Wales after the Chancellor George Osborne signalled that properties worth up to £1 million will be scrapped from inheritance tax. Currently the tax is levied on homes from £650,000 but in the government’s mini Budget later this week he will raise the threshold. It means that owners of homes worth up to £1 million can pass them on to their children tax free. An analysis of Land Registry data suggests that owners in Gloucestershire, Yorkshire, Somerset, Dorset and Cheshire may be leading the charge to get their homes re-valued. It could also leave looming insurance problems for up to a third of families living in high value or listed homes which are more expensive to repair or rebuild, according to the study by NFU Mutual, a leading rural insurer and financial advice firm. ‘If you don’t know how much your home is worth, then there’s a real danger that you and your family could lose out. Around three in every 10 homes are undervalued by their owners, leaving families at risk of underinsurance and an unexpected tax bill,’ said Nicki Whittaker, high value home specialist at NFU Mutual. Around 80% of million pound homes sold in England and Wales in the last 15 years are in London and the South East but there are concentrations of expensive homes across the rest of the country, including Gloucestershire, Cheshire and Dorset. ‘We expect there will be a rush to re-value these properties as parents and grandparents look to hand down as much as they can to their families. But many of these bespoke and listed properties need more thorough assessment to establish their true worth,’ explained Whittaker. ‘Figures from our valuation partners show many expensive country homes are dramatically undervalued because owners are often unaware that the cost of rebuilding listed and unique properties is so much greater,’ he pointed out. ‘It’s clear from these results that thousands more people need to take action if they want to make sure their biggest financial asset remains in the family. A valuation and some simple tax planning would help to make sure people are fully protecting what is rightfully theirs,’ he added. The Conservative Party outlined plans for a new transferrable main residence allowance in its election manifesto earlier this year. The move, to be announced by Osborne in his Budget speech on Wednesday 08 July 8, would increase the effective inheritance tax threshold for married couples and civil partners to £1 million. Continue reading
Rich West Africans now buying in London’s prime property sector
Russians and the Chinese are known to be keen buyers in London’s prime property market but now investors from West Africa are entering this prestigious market. Prime London estate agent, Harrods Estates Mayfair Office, is reporting a surge in demand from West African buyers in Mayfair with a 40% rise in sales of luxury property to the nationality in the last 12 months and up 400% compared with the previous year. Shirley Humphrey, director at Harrods Estates, explained that the firm has seen a considerable increase in demand from West African’s looking to purchase a pied a terre in Mayfair. The majority are looking to spend between £2.5 million and £6.5 million on a two or three bedroom apartment, where they can stay when visiting London on business or for pleasure. As with many international buyers, West Africans are seeking apartments in luxury developments, which offer 24 hour security, concierge and spa facilities. ‘Family is very important to them and they prefer to cluster buy more than one apartment in the same building so that they have somewhere for their children, parents and grandparents to stay,’ said Humphrey. She pointed out that Mayfair is seeing resurgence over the coming years, with an array of new luxury developments in the pipeline and the return of many commercial buildings put back to residential use. The area has long appealed to British nobility, aristocracy and high society as well international wealthy individuals from around the world, including Middle Eastern, Chinese, Indian and Russian buyers. ‘Mayfair offers a village lifestyle in a fantastic central location. The excellent shopping on Mount Street and Bond Street, fantastic restaurants and five star hotels, contribute to the areas popularity and with Hyde Park and Knightsbridge a short stroll away, many of our clients love the location as both an investment and lifestyle choice,’ explained Humphrey. ‘West African purchasers are drawn to living north of Hyde Park or just off Park Lane on Upper Grosvenor Street or Mount Street and prefer period buildings with newly refurbished luxury interiors which they can move straight into. Although they are buying property as an investment, the key thing for West Africans is owning a home in London which they can use for a minimum of a few months of the year,’ she added. Continue reading
Research suggests many young people need help from parents to buy first home
Almost half of parents in Britain whose children haven't bought a home, think the only way they will be able to do so is with inheritance from them new research suggests. Many parents feel high house prices and a lack of affordable homes are leaving their children priced out, according to the report from housing charity Shelter. It says that the latest government figures suggest they are right to be concerned, with home ownership levels having collapsed among young adults in the last decade. With the housing shortage making it much harder for young people to get a foot on the property ladder the Shelter poll shows that of those 25 to 34 year olds who have been able to buy, one in six of them relied on inheritance money from a relative, and nearly a third were gifted money for a deposit. This follows another recent report from Shelter which found that those locked out of homeownership have less stability in their finances and careers. Whilst many are also put off parenthood because they don't have a stable home of their own. Richard is one of those currently priced out. He's 28, and has a good job, but is currently living with his parents in their semi-detached home at the opposite side of London to his workplace. 'Even though I save every penny I have and cut costs wherever I can, it never seems to be enough with today's house prices. I hate the thought that losing the people I love most in the world could be the one chance I'll have to secure my own home,’ he said. Campbell Robb, chief executive of Shelter said no parent wants to think the only way for their children to ever own a home of their own is through losing someone they love. ‘It's a tragic consequence of our housing shortage that, even when they are working hard and saving what they can, a generation of young adults have no choice but to rely on the prospect of inheritance to have any hope of buying their first home,’ he added. He believes that the failure of successive governments to build anywhere near enough affordable homes is leaving millions of young adults facing a lifetime of uncertainty. ‘Politicians should give back hope to the priced out generation by making a real and lasting commitment to building the affordable homes we desperately need,’ he added. Buying a home is simply unaffordable for many first time buyers across England, particularly in London and the south, according to a new report by a housing charity. Shelter research says that first time buyers are being placed under increased financial pressure. Analysing homes listed on property listings website Zoopla across England it found that 16.9%, or 42,185 homes, were affordable and suitable for families earning the median income of £30,748 a year. For single people looking to buy a home, only 7.5% of homes were listed at an affordable price while for… Continue reading
