Podcast Summary
Exploring LinkedIn for Hiring and Leaseholder Rights: LinkedIn is a popular platform for hiring professionals and 70% of its users don't visit other job sites. In personal finance, leaseholders should be aware of potential exploitation and calls for reform in the leasehold structure.
LinkedIn is a valuable resource for small business owners looking to hire professionals. It's where you can find candidates who might not be actively searching for a new job but could still be open to the right opportunity. In fact, over 70% of LinkedIn users don't visit other leading job sites. Additionally, in the realm of personal finance, it's essential for leaseholders to be aware of their legal rights and the potential exploitation of the leasehold structure by property investors. Over the past few years, there have been growing concerns about the way these investors have been able to impose hefty charges on leaseholders. The situation has prompted calls for meaningful reform. Stay tuned for more information on this topic. And don't forget, if you're planning a trip abroad, be aware of hidden charges when using your bank card. We'll bring you a special subscriber offer at the end of the show.
Leasehold issues for house owners: Escalating ground rents and onerous service charges: Politicians have banned new build houses from being sold as leaseholds and set ground rents at 0, but it doesn't help those already trapped in these arrangements, who must buy the freehold to escape, a costly process made difficult by investment firms who own the freeholds.
The leasehold system for houses, which became common practice among house builders in England and Wales around 2007, has caused significant issues for homeowners due to escalating ground rents and onerous service charges. These issues came to light around 2015 when mortgage lenders began refusing to lend on these properties and the value of the homes plummeted. Politicians have since taken notice, with Sajid Javid announcing a ban on new build houses being sold as leaseholds and setting ground rents at 0 or peppercorn in 2017. However, this does not help those already trapped in these arrangements, who must buy the freehold to escape, a process made difficult by investment firms who own the freeholds and demand large sums for compensation. The leasehold system's wider reforms were recently proposed by the Law Commission.
Simplifying the enfranchisement process: The government is working to make the enfranchisement process simpler and cheaper for leaseholders, while leaseholders and campaigners push for transparency and compensation from house builders.
The process of enfranchisement, or buying your lease from a freeholder, is a complicated and costly process for leaseholders in the UK. The government has acknowledged this issue and commissioned the Law Commission to simplify and make the process cheaper. The Law Commission has proposed suggestions for a simpler and cheaper process for valuing freehold and taking it through the court. Leaseholders and campaigners are pushing for answers regarding the involvement of house builders in selling leaseholds and compensation for affected individuals. Meanwhile, for holidaymakers, it's essential to be aware of foreign currency traps when using debit or credit cards abroad. When presented with a chip and PIN terminal and given the option to pay in GBP or the local currency, it's recommended to always choose the local currency to avoid hidden fees and unfavorable exchange rates.
Dynamic currency conversion: A costly convenience: British travelers lose around £600 million annually due to DCC and unnecessary fees at airports and ATMs. To save money, plan ahead and avoid DCC, use a prepaid travel card, or order currency beforehand.
Dynamic currency conversion (DCC) can cost travelers a significant amount of money despite offering the convenience of paying in their home currency. DCC is a practice where businesses ask customers if they want to pay in their local currency or their home currency, often charging an additional fee for the service. This fee can be up to 8%, making it a substantial expense for consumers. According to research by FairFX, around £600 million pounds is wasted annually by British travelers due to DCC, as well as unnecessary expenses at airports and overseas ATMs. To avoid these costs, it's recommended that travelers plan ahead and avoid using DCC when possible. Instead, consider using a prepaid travel card or ordering currency beforehand to lock in a favorable exchange rate. Additionally, be aware that using a UK bank card to withdraw money overseas can also result in significant fees.
Saving on foreign exchange fees with prepaid cards and strategic credit card use: Prepaid cards with locked-in exchange rates, credit cards with no foreign transaction fees, and researching offers from banks can help travelers save on foreign exchange fees
Travelers can save money on foreign exchange fees by using various strategies. One effective method is using a prepaid card with a locked-in exchange rate, allowing users to buy currency when rates are favorable. Prepaid cards from providers like FairFX and Caxton are options. Another strategy is shopping around for the best exchange rates or using credit cards with no foreign transaction fees, such as the Barclaycard Platinum travel card and Halifax Clarity credit card. Additionally, some challenger banks like Metro Bank and app-based banks like Starling and Monzo offer fee-free overseas spending and ATM withdrawals. However, it's important to note that some offers may not last, so it's crucial to research and choose the right card for your travels.
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