Death and divorce are traumatic periods in life where people are at their most vulnerable yet often have to make important decisions regarding property and other assets. Quite often they are forced to sell a property, but don’t want to meet four or five estate agents, nor work out what the asking price should be, never mind haggling over the eventual price and all that can go with a sale.
It’s during such major life events that people need shielding from an overcrowded, unregulated property market. This is where INHOUS can help your clients. We work as your client’s representative with the appointed agents and other people associated with the property sale. If your client is getting divorced or has recently lost someone close to them, they are unlikely to be in the right place to deal with all this without assistance.
It is well documented that the London property market is flourishing, with Rightmove reporting that asking prices rose across all boroughs in April to hit another record high. Kensington & Chelsea saw the biggest jump in asking prices over the year with a 13.8 per cent increase, followed by Havering with a 11.3 per cent rise and Westminster at 11.2 per cent.
Properties are also selling faster than this time last year, taking an average of 51 days to secure a buyer, compared with 64 days in April 2021. Shortage of stock, combined with pent-up demand and low mortgage rates, are fuelling the market, presenting opportunities for sellers but also bringing immense pressure with them.
Selling a property can be stressful at the best of times but when your client is dealing with loss and is trying to navigate a competitive property market, it is even more difficult. Our managed sales service is designed to navigate this.
There are plenty of potential pitfalls which need to be avoided. With such an acute shortage of stock, some agents are overvaluing in a desperate bid to gain the instruction. It might be tempting to go with the highest value but if it is unrealistic, and the property lags on the market when a speedy sale is required, it may not achieve its true potential when it does eventually sell. This is because it will have gone ‘stale’, with potential buyers wondering what is wrong with it, even if it’s down to nothing more than the asking price being too high in the first instance.
With our managed sales service, we act as an independent adviser, speaking to the agents, discussing the price, handling viewings and generally reducing your client’s stress. Family lawyers who recommend us to their clients know that if INHOUS handles the sale, we will give accurate advice on valuing the asset and manage everyone’s expectations from the outset. If two parties are divorcing, we will be impartial and fair to both.
We also ensure assets are sold discreetly, so they don’t hit the open market – often the best course of action to take, depending on the value of the property. In our experience, if your client is selling a property at the upper end of the market, say £10 million-upwards, it is best not to expose it on the portals. Buyers at this level wish to be discreet; they don’t want everyone knowing what they paid for a property or even that they are moving. The lower profile the sale, the better; we can ensure we reach the right buyers without going to the portals and over-exposing the property to the market, something which is likely to suit your client as much as the purchaser.
Sometimes your clients will need more handholding than others, or they may be based overseas with a London asset that needs disposing of. We can tailor our service to suit your client; if required, we can address the presentation of the property before it hits the market. The INHOUS team works as your client’s trusted advisers and handle all the aspects of the transaction.
Quite often with probate there will be a number of beneficiaries involved; an independent adviser offering an alternative route to high-street estate agents provides everyone with peace of mind.
As well as our managed sales service, INHOUS also works with clients who are buying property. Family lawyers often recommend us to help their client’s children, or even grandchildren, with their property search, particularly if they are funding the purchase. They want to ensure their offspring is advised correctly; they may have a healthy budget but are still first-time buyers with little or no experience of buying or selling. They need an adviser to ensure they buy well and do not fall victim to the potential pitfalls of a highly competitive market.
The property market may be moving quickly but we believe it is important to give people time to make the right decisions. Your clients may well be emotional or under a lot of pressure and the last thing they need is even more pressure. We work closely with many family lawyers and their clients, and firmly believe that it’s about matching the right people, depending on the personalities involved.
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Tenancy charges may vary, depending on the agreement we have with you, so it’s best to ask the INHOUS lettings department.
The following payments may apply when entering an Assured Shorthold Tenancy:
| First month’s rent | In advance |
| Tenancy Deposit | 5 weeks, or 6 weeks if annual rent is over £50,000 |
| Holding Deposit | One week’s rent, put towards your first rent due |
| Early termination when requested by the tenant | A charge not exceeding the financial loss experienced by the landlord |
| Default charge for late payment of rent | A maximum of 3% above Bank of England base rate, charged when rent is more than 14 days late |
| Default charge for replacement of lost key or security device | Equivalent to cost incurred |
| Changing the tenancy documents after the commencement of the tenancy, including change of sharer | £50 incl. VAT |
The following payments may apply when entering a Non-Housing Act Tenancy:
A Non-Housing Act Tenancy is formed when the annual rent exceeds £100,000 or the property is occupied by a Company rather that an individual.
| Inclusive of VAT | |
| Tenancy Setup Fee drafting and execution of tenancy agreement if supplied by us, collecting and holding the Security Deposit as Stakeholder, issuing protection certificates, if applicable, Open Banking type referencing of tenant and initial Right to Rent Checks | £360 |
| Check-in Fee checking into the property and reviewing inventory | minimum of £130 |
| Tenancy Continuation negotiating and drafting an extension | £150 |
| Change of Sharer – Deed of Assignment | £120 |
| Early Termination – Deed of Surrender | £120 |
| Guarantor Referencing Fee (each): | £30 |
| Deed of Guarantee Fee: | £50 |
| Late payment of rent | 3% above the Bank of England base rate |
This guide is for tenants and landlords in the private rented sector to help them understand their rights and responsibilities. This guide includes a checklist and further detail on each stage of the rental process.
Tenancy charges may vary, depending on the agreement we have with you, so it’s best to ask the INHOUS lettings department for a full breakdown of costs. Here’s a list of what you can typically expect to pay:
| Lettings Service Only: | 10%+VAT (12% inc. VAT) – Including rent collection |
| Letting and Management Service: | 16%+VAT (19.2% inc. VAT) |
| Short Let (less than 6 months): | 24%+VAT (28.8% inc. VAT) |
| Lettings Renewals Service: | 8%+VAT (9.6% inc. VAT) |
| Lettings and Management Renewal: | 14%+VAT (16.8% inc. VAT) |
| Short Let Renewal (less than 6 months): | 24%+VAT (28.8% inc. VAT) |
Additional non-optional fees and charges
We will not be charging clients fees for referencing, tenancy agreements or deposit registration.
The costs of a clean, EPC, gas safety, EICR, PAT and inventory are set by third party suppliers and prices may vary. The below schedule is to give you an idea of what you would typically pay.
All fees stated are inclusive of VAT (calculated at 20%):
During the tenancy (if required
INHOUS is a member of and covered by the ARLA/Propertymark Client Money Protection (CMP) Scheme.
We are also a member of a redress scheme provided by The Property Ombudsman www.tpos.co.uk.