Home Information Packs - Information For Sellers

In the current property market sales are slow. Beleaguered buyers are less than keen on the introduction of new policies that might slow down the sale or make it even more expensive than it is already…and understandably so. The advent of Home Information Packs places an obligation on the seller to provide certain information ready for anyone who might want to buy their property, but how onerous is that obligation and is it likely to quicken or elongate property purchases?

Home Information Packs, or HIPs as they have become known, were introduced gradually from 1 August last year. As from 14 December 2007 every home in England and Wales needs a HIP, unless that home meets certain exceptions. In brief, these are:

- Accommodation that is used for holiday lets at least 11 months a year. But the accommodation must be restricted to holiday use by planning regulations – the owners’ intentions on property use are not enough.

- Accommodation or land that is sold as a ‘mixed sale’, i.e. part of another sale. This is a complicated ruling but might, for example, apply to farms where barns, sheds or outbuildings are considered part of the lot for sale.

- Park homes.

- New builds.

- Properties about to be demolished (where planning permission to demolish has been granted) and properties considered as unsafe to enter.

- Properties for sale without vacant possession, i.e. with a tenant in situ.

This is only a basic list and you are advised to consult an estate agent or solicitor to find out the details for your own situation. Most homes for sale do need a HIP if they are to be sold on the open market; the cost of preparation can range from a few hundred pounds upwards.

Commentators have yet to agree on whether HIPs are worthwhile. Some are holding to the opinion that the information provided in a HIP is unlikely to be of much use should the sale take several months to conclude. However, potential buyers are able to see the HIP at an early stage in negotiations and at least they have the opportunity to take note of any factors that might stop them going ahead. There is some evidence that the necessity to prepare a HIP is holding back home owners from putting their property on the market. In overall terms the HIP is a relatively small part of the ‘moving house’ budget, so one could draw the conclusion that deterring the less than serious vendor is no bad thing.

Forecasters say the market is unlikely to pick up over the next few months. For some, the delay is frustrating but little more than inconvenient. But for others, delays can mean splitting up their family or risking financial meltdown. If you find yourself in this situation call Property Rescue. They guarantee to make an offer for your home whatever its condition or location. Best of all, selling privately to Property Rescue means you don’t need to prepare a HIP…hooray! For more information on Selling your home fast, click here

 

For more information call Property Rescue in complete confidence. There is no obligation to proceed and no pressure will be put on you if you feel their offer isn’t what you want.

Home Information Packs

The government started to roll out Home Information Packs, or HIPS, earlier this year and from 14 December the HIP will be compulsory for every home owner who wants to sell, regardless of the size of property or number of bedrooms.

The idea behind HIPS is that prospective buyers will have a degree of information at their finger-tips before they make an offer, but the scheme has been criticised heavily by many in the industry as being expensive, cumbersome and responsible for slowing down an already depressed market. There is also concern that various aspects of the information provided in HIPS, such as local searches, will be out of date by the time the property is actually sold and will, therefore, have to be re-done by the purchaser’s solicitor. Mortgage lenders and lawyers are unlikely to place reliance on information that might be several months or even close on a year old.

Nevertheless, the law is the law and sellers will have no choice but to comply with the regulations. In brief, the Home Information Pack will contain the following:

• An energy performance certificate that will rate your property from A to G
• A statement of the terms of the sale
• Copies of the title deeds and any planning and building regulations consents
• Local authority searches, plus those relating to drainage and water

It is difficult to give an accurate indication of what a HIP will cost as they are still in their infancy and therefore subject to market forces. Realistically however, home owners should expect to pay between £250 and £700 for a HIP to be prepared on their behalf. One of the main problems seems to be finding an assessor to rate the property’s energy efficiency, as to date few assessors have been accredited in this relatively new specialism.

Selling your home through Property Rescue will avoid the need to prepare HIPS as the sale will be classified as private. This could save you up to £700 as well as avoid the necessity of getting solicitors involved before you even put your house up for sale.

Property Rescue quote a price for your home that is the price you will receive; no deductions are made other than repayment of your outstanding mortgage or any loans you may have on your property. There are no hidden fees, no legal fees on the sale, and no HIPS.

Give Property Rescue a call to find out more. They explain everything to you in clear detail and take care of the paperwork and legal necessities. If at any time you decide not to proceed, you are free to walk away without any obligation.