River James Property

At the heart of the strategy is a new build indemnity scheme that will give a helping hand for up to 100,000 prospective buyers who are currently frozen out of the housing market because of the need for large deposits. Under the proposals, homebuyers will be able to secure loans on newly built homes, the bedrock of the first time buyer market, with only a 5% deposit. The government and house builders will help provide security for the loan, so if the house is then sold for less than the outstanding mortgage total the lender will be able to recover its loss.

Through the scheme lenders will be encouraged to offer mortgages with smaller deposits, increasing demand for new homes and giving a welcome boost to the housing market.

The government will give more support for local areas that want to deliver new, larger scale developments that meet the needs of their growing communities. A new prospectus will be published shortly inviting councils and communities to identify opportunities for locally planned large scale development, which will take advantage of streamlined planning processes, giving communities a stronger say and developers greater certainty.

The new plots could vary in size, from a small expansion of a few hundred homes through to a new market town with up to 10,000 homes. Viable schemes that are sustainable and have strong local support will be given financial assistance to get the work going, and will be prioritised for future infrastructure spending.

Where there are existing building sites that have stalled, a £400 million Get Britain Building funding pot will enable house builders to restart construction, helping to deliver up to 16,000 new homes on sites that already have planning permission, but have been shut down because of economic conditions.

Other reforms set out in the strategy include transferring housing and planning powers from central government to councils and local people, so that they can shape development in their areas replacing top down targets with powerful cash incentives through the New Homes Bonus, so instead of simply feeling the strain that new building projects place on existing services, communities have a reason to support new development.

It also includes supporting private sector growth by reducing regulation and other burdens on house builders, accelerating the release of public sector land with capacity to build up to 100,000 new homes by 2015, and support up to 200,000 construction and related jobs during development.

Work with a unique property sales website that specialises in offering property buyers incentive packages to buy their next home through it. Our job is to find properties to list as we don‘t have enough of them on our site, however we do have a huge number of buyers just waiting for their ideal property to be listed. 

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Cape Verde is a unique and natural paradise, it’s a beach-lovers paradise and more and more people are discovering what these Islands have to offer.

Find out more about this unique investment proposition that can supplement your income and pension for many years ahead. Contact us today.

The French Parliament has passed an important amendment that could have a positive effect for many British owners of French property. The amendment says that the sale of second homes will be exempt from Capital Gains Tax (CGT) when the seller does not own a principal residence. The amendment is primarily aimed at providing relief to French expats but could benefit hundreds, if not thousands, of UK owners of French houses too.

You must have owned the house for at least five years and can't have owned a principal residence for at least two years. In cases of divorce the absent partner can still consider the marital home the principal residence.

Parliament has said that the new rule will come into force on 01 February 2012 to coincide with other property tax reforms. Currently, residents of France are subject to fixed rates of capital gains tax of 19% as well as paying social charges. Non residents, from outside the European Union, pay 33.33% with no social charges. Those non residents who come from within the EU pay tax on French property gains at 19% and do not pay social charges.

The capital gain is calculated as the proceeds from the sale less cost of purchase. A deduction of 7.5% of the acquisition price can also be made in lieu of actual costs, or the costs themselves (if you have proof) can be deducted, as well as any costs of sale such as estate agency and legal fees, transfer tax and Notaire's fees.

Parliament has already agreed a new scale of CGT that comes into effect in February. This means that if you sell your main residence within one to five years of buying there will be no relief. If sold within six to 17 years there will be 2% relief per annum, 4% relief per annum for a sale within 18 to 24 years and 8% for years 25 to 30.

A French property bought by a UK resident for €500,000 in 1996 and sold 15 years later for €1 million, for example, would not pay any French Capital Gains Tax on the €500,000 profit made. 

If the same property, in the same circumstances, was sold after 01 February 2012, only 20% of the profit (€100,000) would be free from taxation. The remaining €400,000 would be subject to 19% tax, resulting in a €76,000 tax bill.

However, a number of countries in the EU have a double tax treaty with France, under which owners of French holiday homes are prevented from being taxed twice on a sale. Those whose primary residence is in one of these countries should therefore seek expert advice on how the tax law change in France affects them.

The impact of the new law means vendors may save a significant amount by selling their property before 31 January 2012 and many holiday home owners are doing just that.

River James are able to introduce you to expert advice on the above as well as present some excellent French properties starting at €5M - email us for further details

While location still matters, a new study reveals that quality is king when it comes to prime property in central London with a huge divergence in value between the top pieces of real estate and the worst. Even within the tightly defined area of the centre of the UK’s capital city prices growth is extremely varied, according to the latest report from international real estate adviser, Savills.

The Savills prime central London index showed average price growth of 87% in the six years to the middle of 2011, significantly higher than the average for the total London residential market which grew 25%.

But a detailed analysis of the period reveals price growth of 151% for the top 10% of the prime central London market ranked by price growth, compared to just 42% price growth recorded in the bottom 10%.

Price per square foot values have polarised, with price growth for top properties and locations hugely outpacing the lower end of prime. Average prices ranged between £900 and £1,000 per square foot across the index in 2005, but now range from an average of £1,400 in the bottom decile to over £2,350 per square foot at the top.

‘This analysis suggests that investors in prime central London need to look beyond the headline averages for real comparables in order to understand value. The extent of the divergence in performance is too big to ignore,’ said Lucian Cook, director of Savills research.

Mayfair has shown the sharpest growth in the past six years, up by 117% on average, followed by Marylebone at 107% and Knightsbridge at 93%. This price growth puts Mayfair in third place on values, with average values at £1,960 per square foot, behind Knightsbridge at £2,007 and Belgravia at £1,982. Mayfair has become an increasingly popular asset class amongst the wealthiest London buyers.

Savills says it should be noted that the index focuses on resale properties so the average values do not reflect that prices being achieved for some of the very new build schemes. Knightsbridge, very much a commercial and retail location a decade ago, has become a magnet for high net worth international buyers and a number of high profile schemes have smashed all previous records. It remains to be seen whether other locations can emulate this success. 

By contrast, values of prime property in St John’s Wood rose by a more modest 69% over the six years to June 2011. ‘This is in line with the wider market for central London as a whole and reflects a broader mix of properties in the area.  However recent buyer demand in these locations, particularly from international investors, and the rise of high value trophy homes suggests lower performing areas such as this have not yet fulfilled their value potential,’ said Cook.

He also pointed out that in the past 12 months Regent’s Park has shown growth of 16.1% compared to the prime central London average of 13.6%, a sign the northern segment of prime central London is moving up the ranks.

The biggest headline growth figures are revealed only by analysing individual types of property. Large houses in Mayfair, in excess of 10,000 square foot, beat all other categories, growing by 150% in six years, a reflection of the value of rarity and scale to high net worth international investors. Such properties now command between £2,500 and £3,500 per square foot compared to £1,800 to £2,100 for the best performing flats in similar locations.

In general terms houses have outperformed, but there have been pockets of high performing flats. Flats within Knightsbridge and Belgravia have been amongst the best performers, attracting buyers from the Middle East/North Africa and Eastern Europe/CIS regions.

Within these areas flats have been developed to meet the demands of the ultra wealthy international buyer and have achieved record prices as a result. The Knightsbridge, reselling at current values of between £3,500 and £5,000, set new standards at launch.

The report says that new developments such as this, followed by One Hyde Park, have raised the bar and pulled up values for the closest comparable properties. Flats with the most famous, established prime addresses, such as Eaton Square, have seen values rise by 130% in the last six years.

Looking forward Savills expect this variation in performance to continue in the short term. 'While all properties are susceptible to market shocks, it will be the quality of location and property, as well as its ability to meet the deepest and strongest strands of demand that will determine how it is priced relative to competing stock on the market,’ said Cook.

Over the past 18 months we have seen a net inward investment by international buyers of almost £6 billion, predominantly from investor buyers attracted to London as a safe haven.  They are adopting a holding position that is reducing the stock in circulation in the market.  In the event of a downturn, this should help shield the best properties and locations from the worst of the falls and ensure a more pronounced recovery,’ he added.

Please contact River James if you have a requirement for Prime London property or wish to discretely sell the same.

Tens of thousands of pounds for you

If, as an individual or as a company, you own commercial property, multi-let houses (HMOs) or furnished holiday letting property within the UK or EEA, please read this carefully. It could be worth tens or even hundreds of thousands of pounds to you.

96% of valid Capital Allowances remain unclaimed

Although it sounds a lot (it IS a lot!) 96% is not a made-up figure. HMRC itself agrees that of all the potentially valid claims for Capital Allowances, only 4% have so far been lodged. But ask any Finance Director and they will tell you that everything possible has been claimed. Ask your accountant and they will assure you that every possible allowance has been squeezed out of HMRC. So what’s going on?

Free, unbiased, independent assessment

With such a mammoth unclaimed pot, though, wouldn’t it be nice to have a free, unbiased, independent assessment of whether you do have a valid claim … whatever your accountant says … just in case?

Find out free of charge

Capital Allowances is a specialist subject: that’s why HMRC reckons that only 4% of possible valid claims have been made. In a moment I’ll explain what capital allowances are and how you can get your share. But, since 96% of commercial properties, HMOs and furnished holiday lets are entitled to unclaimed capital allowances, and you can find out free of charge whether you are one of that 96%, you would surely want to know, wouldn’t you?

What are Capital Allowances?

When you spend money buying or improving a property, HMRC allows you to offset some of that expenditure against your profits or general income for tax purposes, through what are known as Capital Allowances. UK businesses pay tax on their trading profits, and Capital Allowances help them to reduce that tax liability by offsetting some of their capital expenditure against those profits. This can result in either a refund of previously paid tax, mitigation of current taxes due, a reduction in future tax liabilities, or all three. This also applies to individuals who own these qualifying types of property.

Why do they go unclaimed?

Capital allowances apply to “Plant and Machinery” and, as you might have guessed, the definition of which items of plant and machinery qualify is a matter for interpretation. More importantly, that interpretation isn’t static. Case law from successful challenges has changed what is allowable. Historically, movable items such as carpets and office furniture were clearly allowable, and fixed items such as walls and roof were not allowable. But it’s the things in between that create the huge opportunities. Many years ago, things like air conditioning plant and escalators were considered to be fixed assets (freehold or leasehold improvements) and therefore not claimable. How things have changed …

Take an office block bought for £1.2 million.

This is a real example which can be seen on our website (contact me below & I will send you this and other examples). A freehold office block was bought a few years ago for £1.2 million. The previous occupants had removed all the carpets and furniture, in fact everything which could be easily removed. How much do you think the new occupants could claim as capital allowances on plant and machinery before they even started the refurbishment? Remember … the building had been stripped of almost everything that could be easily removed.

How about a claim for £470,000?

Incredibly, those claimable assets which many accountants would consider outside the scope of plant and machinery were valued by a RICS-qualified Quantity Surveyor at £470,000. At a corporation tax rate of 28% that would have generated a tax benefit of up to £131,600. If it had been bought by an individual or partnership (paying income tax at 40% rather than corporation tax) the tax saving could have been as much as £188,000.

What on earth was included?

Starting with the largest items – lift £120,000; air conditioning £60,000; heating £50,000; parking £40,000. And so on up to £470,000. Every single item was valued according to HMRC guidelines, photographed and logged, measured, calculated and apportioned.

Why accountants don’t offer you this service

I suggested that most accountants don’t know the rules applying to capital allowances, but that’s not quite true. Many do know, but haven’t the specialist knowledge or facilities to make an audit-proof case to HMRC. Here’s why …

When you buy a freehold shop, office, hotel, holiday letting property or multi-let property (HMO), your invoice is for the premises. It won’t specify separately the cost of the lifts, escalators, air-conditioning plant, security systems and so on. And if you and your accountants don’t know how much you paid, how can you possibly make a valid claim?

We use RICS-qualified Quantity Surveyors to provide a professional valuation of the cost of providing these assets. Using HMRC-approved techniques, values and ratios, they produce a detailed analysis of each asset’s worth and we build your claim accordingly.

No accountant can do this by themselves, without the professional help of a Quantity Surveyor. They are the missing link without which there could never be a claim. The important point here is that with our Tax Claims’ Quantity Surveyors, their entire method is pre-approved by HMRC.

Compliance is our middle name!

As independent commercial tax specialists, we are passionate about compliance. It’s the foundation on which our substantial business has been built. It is also your reassurance that they will work professionally with your accountants to identify the correct capital allowances claim for you. If HMRC were to question the calculations in our report, they will see they are presented in the approved format with the appropriate supporting evidence, using published data which HMRC has pre-approved. We work closely with them and always follow their rules to the letter.

Who can claim – and for what?

If you own qualifying property, you are on the way. That includes:

·         Commercial property, either freehold or long (30+ years) leasehold in the UK with an original purchase price of at least £200,000

·         Furnished holiday letting property in the UK or even in the EEA with an original purchase price of at least £300,000

·         Houses in Multiple Occupation in the UK with an original purchase price of at least £200,000.

You must be:

·         A UK taxpayer (income tax or corporation tax) who has either paid tax last year or is due to pay tax this year

·         Not a registered charity or a pension fund. They have their own beneficial tax regimes.

£25,000 Guaranteed claim

If you meet these criteria, we undertake to identify at least £25,000 in unclaimed capital allowances for you. If, for any reason, we fall short of that sum, we will give you our report free of charge, for you to claim yourself if you wish.

Not an artificial ‘loophole’ scheme

Some tax-avoidance schemes are short-lived. Based on a loophole in tax law they create artificial ways of circumventing the rules. They rarely last very long before HMRC shuts them down. Capital Allowances are different. We follow the guidelines to the letter and use pre-approved calculations. The fact that such large sums are still unclaimed is simply because the whole area is widely misunderstood.

No Claim – No Fee

Most of our competitors charge survey fees as well as success fees, and their success fees can be as much as 8% of the identified claim. We like to keep things simple and affordable:

·         If we don’t identify at least £25,000 in additional capital allowances for you to claim, you won’t owe us a penny

·         We do not charge any separate survey fees

·         For claims above £25,000 our fees are just 5% (plus VAT) of the total claim identified

·         For properties valued at £3 million or more, a lower percentage fee may be negotiable depending on the circumstances.

The claiming process is painless and can be completed in as little as 10 weeks. We will work closely with your accountant to add value to the service they already provide you. We are never confrontational.

To find out (free of charge) whether you or your company are entitled to claim further capital allowances, just contact Cobus by clicking here

Data released by Land Registry reveals that the rate of monthly price change in July was 1.3 per cent. This reveals a slight change in the prevailing downward trend, taking the average price in England and Wales to £163,049. With the annual rate of change at -2.1 per cent, this represents the largest monthly movement since January 2010.

The number of property transactions has decreased from an average of 49,600 in February to May 2010, to 45,489 in the same months of this year.

The South West experienced the highest monthly growth with a movement of 2.2 per cent (all those "Grockles" buying holiday homes perhaps?). The North East saw the most significant monthly price fall with a movement of -2.3 per cent.

House prices dipped lower during August in a "mildly fickle but ultimately flat" market, figures from lender Nationwide figures revealed today. The 0.6% slide over the month left the price of an average house minus 0.4% off a year ago. The August drop more than cancelled out the modest 0.3% rise the previous month seen in the lender's figures. Nationwide chief economist Robert Gardner expects a stagnant market to move sideways for the rest of the year as sluggish demand eclipses a shortage of new homes on the market, although a weakening economy could drag prices lower.

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The developer is now offering a 15% return on investments of £500,000 and over. Please contact us if you would like to learn more.

UK property-based investment with a guaranteed exit on 12 or 24 months

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As the turmoil on the world stock markets continues & sovereign debt crises (let’s be honest, there’s more than one) send shockwaves through European economies, what effect might it have on the UK housing market?

The crises mean that it is unlikely that the British economy will improve much in the short term and there will be an easing of inflation as the price of raw materials starts to fall worldwide. The Bank of England is very unlikely to raise interest rates for the foreseeable future and the cost of fixed rate mortgages in particular will continue to fall. Whilst we can’t tell you what’ll happen to property prices, what is clear is that, unlike the crash of 2008, the UK is more of an interested onlooker at the moment. If the Euro starts to wobble and the price of gold rises any higher, property in prime central London property may begin to look like a safe haven – in fact we’re already seeing this at River James with interest in the +£5m bracket strong. Unfortunately the current climate will almost certainly dent confidence in the general economy and there is a chance the mortgage drought of 2008-2009 will return, affecting “mere mortals” who can't stretch to Belgravia or Mayfair.

Before the advent of the current turmoil, both the Halifax and the Nationwide noted house prices gently rising nationwide in July. Despite these rises, the volume of transactions is small – like the stock market, thin volumes result in exaggerated price moves. According to the Halifax, mortgage approvals are around 45,000-50,000 per month and have barely changed since the beginning of 2010. Furthermore (according to RightMove) first time buyers account for just 23% of house purchases (where a fully functioning market requires these levels to be around 40%). In London, however, the number of first time buyers is a healthier 41.2% (but what the stats don’t reveal is how many of these first time buyers are being funded by the “Bank of Mater & Pater”).

Frustratingly the housing market had seemed to have stablised till last week’s financial meltdown (curse those American politicians). It is still very unclear exactly what the implications are for house prices, especially since the crisis is centered on the US and the Eurozone. If the EU can produce a unified and credible (ahem) response to the sovereign debt crisis it may yet prove to be a storm in a teacup. Whilst we sit on the periphery here in the UK, domestic banks are heavily exposed to both Europe and the US and the danger is that any losses may affect their ability to lend at home.