Latest News – Unravelling The Legals For You

Conveyancing News

Home Information Packs (HIPs) - (Added 20 May 2010, source BBC)
Hips scrapped by coalition government
The coalition government has suspended the use of Home Information Packs (Hips) by home sellers.

Hips were introduced in 2007 in England and Wales.  The aim was to speed up the house selling process by obliging sellers to provide much of the required conveyancing information when properties are first put up for sale.

The packs are paid for by sellers and contain property information, title deeds, and local searches.

"Today the new government is ensuring that home information packs are history," said Housing Minister Grant Shapps. "By suspending home information packs today, it means that home sellers will be able to get on with marketing their home without having to shell out hundreds of pounds upfront. We are committed to greener housing so from now on all that will be required will be a simple energy performance certificate," he added.

Budget - March 2010 - (Added 24 March 2010)

Stamp Duty For First Time Buyers
Chancellor Alistair Darling announced his 2010 budget today.  There are several notable issues raised for our clients.  For first time buyers, the Chancellor has doubled the first Stamp Duty Land Tax (SDLT) threshold to £250,000.  This means that if you are purchasing your first property for £250,000 or less you will not have to pay any SDLT on completion.  At the other end of the scale, the rate of SDLT charged on purchases over £1,000,000 will increase from 4% to 5%. 

Inheritance Tax Threshold
There is less good news for our older clients as the Inheritance Tax (IHT) threshold has been frozen at the current rate of £325,000 for the next four years.  This is to help pay for the cost of care for older people.  The result of this change is that as the value of houses increases again more people will be pushed over the IHT threshold and will be subject to tax on their estates.  If you are concerned about the changes to IHT and would like to discuss minimising your estate's tax liability please contact us and make an appointment to speak to a solicitor.

Winter Fuel Allowance
Lastly, the higher Winter Fuel Payment of £250 for pensioners, and £400 for the over-80s, are guaranteed for another year.

If you have any questions about how the above changes will effect your conveyancing transaction or your estate planning please contact us.

Commercial & Business News

Changes to Company Trading Disclosure Regulations - (Added 13 February 2009)
On 1 October 2008, the Companies (Trading Disclosures) Regulations 2008 came into force making many changes to the requirements as to where and when company trading names, names of directors, etc. need to be shown. In particular Companies should note the provisions of Section 6 which specifies that every company must disclose its registered name on:

• business letters, notices and other official publications; 
• bills of exchange, promissory notes, endorsements and order forms;
• cheques purporting to be signed by or on behalf of the company; 
• orders for money, goods or services purporting to be signed by or on behalf of the company;
• invoices and other demands for payment, receipts and letters of credit; 
• applications for licences to carry on a trade or activity;
• all other forms of its business correspondence and documentation; and
• its website

Commercial Leases - (Added 13 February 2009)
We are coming out of a period of rising rents during which Landlords and their agents have had a fairly free run, not only on rents but also other Lease terms.

In the new environment, good sound tenants are greatly sought after.  It is important to recognise this and negotiate firmly when agreeing a new Lease.

Tenants should be prepared to show their (or their company’s) financial strength.  In the case of privately owned small companies you will normally need to show good accounts going back over some period, so have your accounts ready when negotiating.

How long a Lease?
During the strong lettings market Landlords have been insisting on longer Lease periods in order to make their premises more valuable.

Now in the new Tenant’s market Tenants should be prepared either to refuse to sign up for an unduly lengthy period or alternatively insist upon concessions in return (for example rent free periods or a contribution to initial fitting out expenditure) and also to seek Break-Options which would allow earlier termination (for instance a nine year lease but with a Break-Option at the end of years two and four).

Consider also assignment (i.e. sale) of the Lease.  The market is down at the moment in most sectors.  If your business is sound you may well want rid of the premises in a relatively short period of time as the market improves (i.e. there is a relatively high probability that the premises will become too small for you).  Insist on the option of either transferring your Lease or underletting.  Bear in mind that if the transferee is an unknown quantity financially, by underletting you increase your chances of the Landlord being obliged to agree.  They will retain your promise to pay the rent and are thus less able to criticise your prospective undertenants.

We will be seeing a different pattern emerge in commercial lettings over the next year as people adjust to a weaker lettings market.  Enquire in all cases what the previous rental level was for any premises in which you are interested, if only because you want to make sure that you are negotiating for a lower rental to reflect the current market.

Conveyancing News

Home Information Packs (HIPs) - (Added 13 March 2009)
Changes to the regulations mean that, as from 6th April 2009, a property cannot be put on the market for sale until the HIP is actually in place.  Formerly it was sufficient that the HIP had been ordered. 

In addition, the HIP must include a new form, the Property Information Questionnaire, which has been designed by the Government to give a certain amount of basic information to potential buyers.

The third change is that, from 6th April 2009, all HIPs must include searches which have answers to ALL questions and do not contain gaps in information covered by indemnity insurance.  This last change will not lead to any variation in the way in which we produce our HIPs, as we have always used proper official searches in our HIPs.  They are, in our view, the most reliable and the information contained in them is guaranteed by the Local Authority. 

At Brown & Company, we can help you comply with these new requirements.  In the Market Harborough, area we can compile a HIP in 3 to 5 days, so, provided you give us at least 5 days notice of the fact that you are putting your property on the market, we can compile your HIP and have it ready to deliver to you and/or your estate agent in whichever format is most suitable i.e. electronic, CD-rom or paper, or all three.

Energy Performance Certificates - (Added 17 October 2008)
From 1st October 2008, all buildings that are not dwellings (such as offices), that are constructed, sold or let and all dwellings (houses, flats etc) that are let will require Energy Performance Certificates (EPCs). Of course, EPCs within a Home Information Pack (HIP), are already compulsory for the sale of dwellings.

Houses or flats which are already let do not require an EPC, but when they are re-let they will. The good news for landlords is that, although they will have to obtain an EPC for their rented property, that EPC will be good for 10 years and so the property can then be re-let or, indeed, sold without acquiring a new EPC.

We can help by commissioning EPCs for our clients. Currently these cost £76.38 and take less than a week. So, if you need an EPC, either because you are selling your house or because you are renting it out, just give us a ring on 01858 434204.

New Permitted Development Rights - (Added 17 October 2008)
On 1st October 2008 new permitted development rights came into force which, in many cases, may remove the need for the expense and time delays of the planning process.  So what are the main changes?

Extension – you can now extend a detached or semi-detached house, depending on conditions, by up to 70 cubic metres without permission.

Outbuildings – you can now build single storey outbuildings and garages without planning permission provided they lie in line with or behind the property’s front elevation and do not cover more than half of the original garden.

Lofts – you can now add up to 40 cubic metres in the roof spaces of terraced houses and 50 cubic metres in semi and detached houses without permission.

You need to remember though that structural work will need to meet building control regulations and it is always wise to seek professional advice before embarking on any building projects.

Wills & Probate News

‘The dangers of failing to write your will’ by Emma Wall.  Source: www.telegraph.co.uk - (Added 20 May 2009)

Increase In Statutory Legacy - (Added 13 February 2009)
The Ministry of Justice has announced increases in the statutory legacy (the amount which married couples and civil partners whose spouse or civil partner dies without leaving a will receive absolutely). The previous levels were set at £125,000 (if the deceased is survived by a child or children) and £200,000 (if there are no surviving children). These figures were increased from 1st February 2009 to £250,000 to £450,000 respectively.
 
These increases are long-overdue, but still to be welcomed.  However, there is no substitute for a well-drafted will to ensure that those you wish to benefit on your death are provided for and to allow your executors to take control of your affairs immediately following your death. Dying intestate is definitely the second-best option.

This is particularly so for people who are cohabiting and have not married or registered a civil partnership.  In those cases where one party dies without making a will the surviving partner may end up with nothing at all.  In addition, step children are not covered by the statutory provisions, so even if step children were living with the deceased as part of the “family” they will not receive anything.

The simple answer is to make a will setting out your wishes.  If you would like to make a will then please contact us on 01858 434204 and arrange an appointment.  Thursday evening and Saturday morning appointments can be arranged for those not able to come during the day and home visits are also possible.