How to survive Brexit
July 6, 2016
As some of you may know, Enness was founded back in 2007. On the very day of our launch party, the run on Northern Rock happened and the market ground to a halt. Luckily, the only way was up; we have gone from strength to strength since then. All this is to say that, when it comes to financial crises, we have a lot of experience – and expertise – to offer to UK and international buyers, sellers, investors and developers. Below are our top tips for the coming weeks and months.
- Make sure you secure your family home. You can do this by considering a slightly longer timeframe on a loan to make sure you are protected from having to refinance in a potentially tough lending market. Instead, look to stretch the short-term to a five-year period and don’t forget to plan for things like your children’s schooling or your retirement.
- Fixed rates are low, but the cost of fixing, and accompanying loss of flexibility, can sometimes be high. Make sure you consider all options, including split loans, caps, and easy switch products, before you jump straight into a five-year plan.
- Interest only is a key product but it’s worth considering whether you can use it to protect your cash flow position. Remember, there are more products available now than there have been for quite a while.
- Plan for opportunity; for example, in 2007, we saw a tiny window of low activity before the smart money moved in. Can you use the equity in your home or other property holdings to react to good investment opportunities as and when they present themselves? Flexible positions, offset, and hunt funds are also all available. Brexit or not, the UK still has a significant housing deficit.
- Consider your structure – is your current property holding structure robust enough and are your other assets secured? Do you have cash-backed, or Lombard lending (which has a currency risk attached)? A review of whatever structure you have in place is wise at this stage to check it is still the most appropriate option for you.
- Stay informed. We are in a state of flux right now. In terms of interest rates, for instance, the Bank of England’s current thinking is that a recession is the biggest threat; pundits are suggesting interest rates could be at zero by 2017. Watch this space…
Our most important piece of advice is to act now. Lending appetite, liquidity, and product choice are currently very high and we simply don’t know what is around the corner. At Enness, we are available to assist with any planning, or contingency planning, as owners and potential buyers alike look to move forward.
Shared from the Enness Private website: http://www.ennessprivate.co.uk/market-analysis/how-to-survive-brexit/
You May Also Enjoy
What can I do as a landlord to ‘future-proof’ my business?
Here Allison Thompson, National Lettings Managing Director, Leaders Romans Group gives some pointers on how to future proof your lettings investments. What can I do as a landlord to ‘future-proof’ my business? Buy-to-let is a medium to long-term investment. To maximise your returns and see the benefit of capital gains – allowing for the market’s…
Read More 
Woodbridge in Suffolk crowned happiest place to live
Woodbridge in Suffolk has topped Rightmove’s annual list of the happiest places to live in Great Britain for the first time The study, now in its 13th year, was completed by over 35,000 people across Great Britain, and asked residents how they feel about a number of factors in their area The London borough…
Read More 
2025 Predictions for Residential Property Investment
Andy Jones, Group Director of Corporate & BTR at Leaders Romans Group (LRG), thinks that 2025 is set to be a good year for residential property investment. Government support for increased professionalism in the rental sector Fortunately for property investment, the government’s political ambition – and self-imposed, non-negotiable target – of delivering 1.5 homes this…
Read More 
2025 Must be the Year that the Government Supports Shared Ownership
Peter Hawley, Director of SOWN, (part of Leaders Romans Group) thinks the government needs to support shared ownership in 2025. One of the greatest omissions from October’s Budget was support for first time buyers – in fact we saw the reverse: 5% more Stamp Duty on properties priced between £300,001 and £500,000 and a…
Read More 
Dangerous Cladding – Questions raised by Remediation Acceleration Plan
The government has published its Remediation Acceleration Plan, and pledges that dangerous cladding will be fixed on all high-rise buildings on Government schemes within the next five years. The plan sets out that by the end of 2029, all buildings over 18 metres tall – defined as high-rise – with unsafe cladding that are on a Government…
Read More 
Nationwide data showing house prices rose – Thoughts from the Industry
The latest Nationwide data showing house prices rose at much higher pace than expected at 1.2%. Here are some thoughts from the property industry. Daniel Austin, CEO and co-founder at ASK Partners: “We continue to see a month-on-month rise in house prices, which is hopefully the sign of an upward trend developing for the…
Read More