Case study: purchase of 4 year old home on an estate from the first owners

30+ years qualified solicitor and founder Julie West explains issues that crop up when buying a house on an estate, especially where the estate was built recently

Buying a property on a private estate should give you control over shared spaces, limits on building/noise/use, plus shared services and maintenance.  However, these schemes are complex and title defects with individual properties damagethe value of the whole.

Defective documents and impossible deadline

Terms were agreed and all seemed straightforward. But we discovered that the original transfer deed omitted to grant a right of way over the private road. Then we found that all the original transfers for the estate were defective. Our solicitors had to contact the original developer to organise a deed of variation. The seller imposed an impossible deadline and this could only be achieved if we took the initiative and drafted the documents.

Managing agents employed by the estate supplied inaccurate and misleading information, and imposed requirements for documentation that our deeper investigation showed to be wholly unnecessary.

What’s more, a restriction on the title required third party consent before we could register change of ownership at Land Registry. That third party was a company intended to manage the estate and a SUDS - sustainable urban drainage system. This company was unresponsive for weeks.

Our solicitors has to make a case to Land Registry for the restriction to be disapplied due to inactivity on the part of the company.

Deadline met and defect cured

Julie West

Founder, 30+ years qualified property solicitor

Our clients were able to meet the deadline and secure the property because our solicitors cracked on with tackling every legal issue.

We also cured a serious title defect that would otherwise have caused major problems with a future sale or mortgage.

“We are in and very happy! I just wanted to thank you for making a potentially stressful process really as painless as it can be!”

— Joanna, Leatherhead

Cash boost for first time buyers stamp duty land tax discount

First time buyers have been given a boost in the Budget announced today with a discount on stamp duty land tax for properties with a value of up to £500,000.  JWS solicitor Emma West explains...
 

What is stamp duty land tax (SDLT)?

SDLT is a tax you pay on completion of your purchase of a property (whether freehold, leasehold or transfer of part).

SDLT is calculated in percentage bands on the value of the property above the threshold of £125,000 for residential properties.

Standard SDLT rates:

Standard rates for those who have bought a home before or who will not qualify for first time buyer rates are as follows:

Tax on value up to £125,000 = zero
Tax on value £125,001 to £250,000 = 2%
Tax on value £250,001 to £925,000 = 5%
Tax on value £925,001 to £1.5 million = 10%
Tax on remaining amount above £1.5 million = 12%
What are the new rates for first time buyers?

You will qualify for SDLT relief if you are buying your first home, you complete your purchase on or after 22 November 2017 and the value of the property you are buying is less than £500,000.

The new rates are as follows:

Tax on value of property up to £300,000 = zero
Tax on value of property £300,001 to £500,000 = 5%
 
This means first time buyers that complete their purchase from today will qualify for an SDLT saving of up to £5,000.

Emma West - solicitor, operations and strategy

“As a solicitor acting for many first time buyers, as well as having experienced being a first time buyer myself, this is great news.  First time buyers are under immense pressure to find cash to cover their deposit, legal fees and moving costs.  When you have spent time budgeting, saving and counting each penny - every little helps!

This initiative from the government, as well as others such as lenders favouring cash back over “free legals”, will free up cash for first time buyers to invest in quality legal advice that will ease the process of buying and protect their investment for the future.”

— Emma West, Solicitor

Use the HM Revenue and Customs calculator to calculate your SDLT saving: https://www.tax.service.gov.uk/calculate-stamp-duty-land-tax/#/intro

5 reasons making Lasting Powers of Attorney should be your New Year's resolution

Legal assistant, and future JWS trainee solicitor, Becky Baker explains why Lasting Powers of Attorney should be at the top of your list of things to think about in 2018:

Lasting Powers of Attorney

Essential tools for lifetime planning

What are Lasting Powers of Attorney?

Lasting Powers of Attorney (LPAs) can be used to give your loved ones the power to make decisions about different parts of your life if you become unable to.  Although it can be distressing for you and your family to consider loss of health or capacity to make decisions, making LPAs can also be a reassuring process as you discuss with trusted family members what is important to you.  You can appoint several people, or attorneys, to help manage your affairs.

There are two types of LPA. The LPA for Health and Welfare covers medical treatment and care, from daily routine to life-sustaining treatment.  Financial matters such as bank accounts, bills, pensions and dealing with property are governed by the LPA for Property and Financial Affairs.  

In both types of LPA, you can express your preferences and give binding instructions, so your chosen attorneys will know and act on your intentions and wishes.

Your attorneys are only permitted to make decisions under your Health and Welfare LPA if you have lost capacity to do so yourself.  In contrast, under the Property And Financial Affairs LPA, you can opt for your attorneys to be able to act straight away.  This means your attorneys can help you with everyday jobs like going to the bank.  

From the team at JWS, here are our 5 reasons to put making LPAs on your New Year’s resolution list this year:

1.  Your choice

When you make your LPAs, you can choose every detail of the process.  You can choose who you appoint as attorneys, how and when they can act for you, what you want them to do, and you can discuss further details with your solicitor to best protect the interests of you and your attorneys.  Making LPAs guarantees your choices will be respected.

2.  You’re in control

Even though your Lasting Powers of Attorney give decision-making powers to others, you can control how much power is given to your attorneys.  You can put limitations on what they can do. 

You cannot be forced to make LPAs; making LPAs must be discussed with a certificate provider who can verify that you are not being coerced into signing and you know exactly what you are agreeing to. 

3.  You’re protected

Not only are your choices protected and clearly laid out for your attorneys, if attorneys ever act against your best interests, this can be reported and the Office of the Public Guardian will step in and help. 

If you change your mind, you can revoke your LPAs at any time.  

4.  You’re prepared

Making LPAs now will save you and your loved ones both time and future expense.  To register LPAs requires a one-time fee, whereas to appoint a family member as a deputy later on requires annual fees and frequent reporting.  LPAs are ‘lasting’ by definition; once they are made and registered, they can be used by you and your attorneys and no further payments or administration are necessary.

5.  Your peace of mind

You and those close to you can enjoy the reassurance that the future is in safe hands, and your arrangements are legally protected.  People are living longer, everyone is at risk of becoming unwell or losing capacity in the future, with LPAs in place your attorneys are prepared to handle your affairs and can act without delay if the need arises.

Becky Baker - legal assistant

Do you need a solicitor to make LPAs?

You do not need a solicitor to make LPAs.  You can find out more and make an application for registration using the Office of the Public Guardian online system: https://www.lastingpowerofattorney.service.gov.uk/home 

However, there are many advantages to using a solicitor to help you make your LPAs.  LPAs are complex documents which create powers with serious consequences.  Relying on interpreting the basic guidance published by the government is unlikely to achieve the best possible result for you.  If you choose to appoint a solicitor you will receive expert advice tailored to your situation. 

At Julie West Solicitor our team of solicitors have the necessary experience to ensure everything you need is covered.  We offer competitive fixed fees and bundled deals for LPAs.  We have helped hundreds of families get their affairs in order, in other words, we've seen it all.  We work hard to make the process as painless as possible for you, including keeping our advice friendly, approachable, simple and free from jargon.  

To get an estimate and find out your next steps, complete our enquiry form:

Case study: acting on the sale or purchase of a freehold reversion

30+ years qualified solicitor and founder Julie West explains issues that crop up during sale or purchase of a freehold reversion

Sometimes leaseholders buy the freehold from their landlord. We have experience of acting for both leaseholders and landlord in this situation. We have a detailed knowledge of the law as well as the ability to manage a major project. 

Where we got involved

In one case involving 6 flats built over commercial premises we got involved because the landlord wanted to dispose of the freehold and the leaseholders had a statutory right to acquire it. A landlord that disposes of the freehold must comply with a statutory procedure.

In another case a majority of leaseholders called on the landlord to sell its freehold interest to them. The leaseholders collectively engaged JWS to acquire the freehold on their behalf. This involved initial advice, preparing and serving the required notices, preparing the transfer documentation, and using an existing residents’ owned management company to buy the freehold interest. 

In a third example a handful of leaseholders whose own leases derived from an intermediate head lease combined to buy the freehold reversion by private negotiation from the original builder. Leaseholders were not all in a position to participate in buying the freehold. We needed to devise a means for future leaseholders to buy into the freehold at a later date.

How we made progress

Whether acting for the freeholder or one of numerous leaseholders, we investigated the legal position, analysed the facts and applied the law. Paying attention to detail we identified and observed important timeframes so that no rights were lost.

Individual leaseholders that took a lead role in these procedures valued the fact that we are local, so that consultations could easily be arranged to iron out the details and ensure smooth progression.

We managed the costs, a major aspect of the job, as well as holding the leaseholders’ financial contributions in a secure client account.

Added value

Julie West

Founder, 30+ years qualified property solicitor

Freeholder complied with the procedures for notifying qualifying leaseholders of a proposed sale and completed the sale of the freehold confident in the knowledge that the transaction could be challenged. With our help the transaction was secure.

With our expert guidance leaseholders seized the opportunity presented by the freeholder giving notice of an intended sale to exercise their right to buy the freehold, thereby taking control and becoming able to manage their development themselves.

Leaseholders found themselves in a position to waive or even terminate ground rent provisions in their leases. More importantly the leaseholders acting collectively were in a position to agree to extend their leases, thereby eliminating the risk of having to shell out wads of cash in the future for a lease extension.

“Client quote...”

Secrets of a conveyancer: how to foil criminals and protect your property from fraud

In this edition of "secrets of a conveyancer", 30+ years qualified solicitor Celia Perry shares some simple steps you can take to protect yourself from property fraud

Its a jungle out there

don't let fraudsters get the better of you

In these days of increasing property values, it should be no surprise that criminals are on the look out for opportunities to target these valuable assets.

Relevant to all property owners, but particularly to those with rental properties, a holiday home or executors managing a property that forms part of a deceased person's estate, here are six steps you can take to make sure you do not become a victim of property fraud:

Step 1: check and update Land Registry address for service

Check the title information Land Registry hold for your property to make sure your address for service is up to date so you do not miss any important communication about your ownership of the property.

Make sure you change your address for service each and every time you move.  

You can even include an email address in addition to a postal address.

Find out more about updating your address for service on Land Registry's website at this link.

Step 2: inspect regularly

If you don't live at the property make sure you or some you trust inspects the property on a regular basis. 

Recently a landlord only found out his enterprising tenant had put the house he was renting up for sale in his own name when the landlord drove past the house and saw a "for sale" sign outside...

Step 3: set up Land Registry property alert

Using just the title number of your property and an email address, Land Registry will allow you to monitor up to ten properties without any charge.

Once you have registered Land Registry will send you an email if there is certain activity or changes to the information Land Registry holds about the property.

It is worth knowing that you do not have to live at or own the property to use this service.  If you have elderly relatives who own a property and are concerned they may be vulnerable, you can set up an alert for their property too.  Land Registry will not tell the property owner that an alert has been set up.

Step 4: make an application for first registration 

If you own a property where the title is not registered at Land Registry you should make an application for first registration.

Until a property is registered, Land Registry will not have any contact details for the owner.  Giving Land Registry your details makes fraudulent activity more difficult.

An advantage of registration is that if you are an innocent victim of fraud and suffer financial loss you may be eligible for compensation from Land Registry.

Step 5: beware of emailed bank details

Emails are constantly under attack from fraudsters hoping to insert their own bank details in your communications to divert funds away from you.

Always check bank details before you send money by ringing the recipient on a number you have used before. Try devising your own set of "security questions".  

Celia Perry

30+ years qualified residential property solicitor

Step 6: if you suspect it report it

If you suspect any fraudulent activity or an attempted scam contact the Land Registry on the dedicated fraud line 0300 006 7030 (Monday to Friday) or email Land Registry at reportafraud@landregistry.gov.uk and also report it to Action Fraud on 0300 123 2040 (24 hours).

Contact Julie West Solicitor

The Julie West Solicitor team have many years of property experience and can give you further guidance on other steps you can take to protect your property from fraud.  Speak to one of our expert team today by calling 01372 383273.

Secrets of a conveyancer: five questions to think about if you are planning to buy a new home with your partner

In this edition of "secrets of a conveyancer", 30+ years qualified solicitor Celia Perry shares five things to think about if you are planning to buy a property with your partner

Love or loathe?

What matters to you most about your new home?

You have found your life partner and want to move on to the next stage of committing to the relationship by buying your first home together.  Here are some questions to discuss:

Question 1: where do you want to live?

Location, location, location.  One of the questions that is likely to need the most thought.

Here are starting points to consider when trawling estate agent's websites and sales boards:

1. Transport links: how do you want to travel to work and how do you prefer getting around in your spare time? Could you, or would you want to, drive or use public transport? Is there easy parking? Would you like your children to be able to walk to school? 

2. Local services/amenities: what do you need to have and what would you like to have within easy distance of your new home? Supermarket or farm shop? Gym or yoga studio? Woodland or parks to walk your dog? Coffee shop? Library?

3. Feel-good factor: what would make you happiest in your new home? A real wood fire or a log burner? A big garden to play in? A view, sunrise or sunset? 

4. Future value: short of painting the entire interior of your new home in a neutral shade of magnolia, what decisions can you make in choosing your property that will appeal to other people and potentially secure a buyer in the future? Is there potential to extend? Is there potential to fit a new kitchen or bathroom?

Question 2: do either of you own another property?

If you are both first time buyers: you will be entitled to a stamp duty land tax discount of up to £5,000 if the purchase price of your new home is £500,000 or less.

If either of you own another property: if you intend to keep that property it will significantly increase the amount of stamp duty land tax you will have to pay when you buy your new home.

Question 3: what is your budget?

You will need to work out how much you have saved, your outgoings and income and then work out the monthly mortgage payments you can afford. 

As a general rule, the larger the amount of money you are able to put down on the property from your own resources (the deposit) the lower the mortgage interest rate becomes.  

A lower mortgage interest rate means you will make higher capital repayments giving you more equity in the property when you come to sell in the future.

Question 4: will you own your home equally or will you own different shares?

In either case you should consider asking your solicitor to prepare a declaration of trust to record your interests in the property. 

No-one goes into a property purchase with someone else thinking things won’t work out, but if the worst happens it is better to have a properly drawn up document which you both thought about when times were better, setting out what would happen in the event of relationship breakdown.

Question 5: if one of you dies, should the survivor be able to stay in the home?

Without wishing to be morbid, the time to think about this is before you buy not afterwards when it may be too late.  Anticipate, plan for and deal with this scenario now so that the bereaved person is not even more distressed by the fear of losing their home.
 

Celia Perry

30+ years qualified residential property solicitor

Choosing your solicitor

There is plenty to think about when you are buying a property, some things are obvious, some not so obvious.

You need to make sure that you appoint a solicitor who has the ability to advise you properly and the capacity to make sure you are never left in the dark.  A good solicitor will always be there to talk things through with you.

It is a good idea to get your solicitor on board at an early stage so they are available to you to offer guidance and reassurance through each stage of the process of buying your new home.

The solicitors in our team at Julie West Solicitor have many years of experience working with clients like you who are looking to take the next step and buy a property with their partner.

In order to work with us all you need to do to get started is give us a call on 01372 383273 or drop us an email info@juliewest.co.uk.