Effective Communication, Author at Emyr Pierce

Aug 31

Fee Estimates- Uncontested probate cases where all assets are in the UK

Applying for the grant collecting and distributing assets

We anticipate this will involve between 5 and 12 hours work.

Managing Partner’s hourly rate: £195 plus VAT

Senior Associate Solicitor’s hourly rate: £175 plus VAT

Probate Assistant hourly rate: £130 plus VAT

Total costs estimated range between £875 – £2,100 plus VAT

The exact cost will depend on the individual circumstances of the matter. For example, if there is one beneficiary and no property, costs will be at the lower end of the range. If there are multiple beneficiaries, a property and multiple bank accounts, costs will be at the higher end.

We would be happy to handle the full process for you. This general estimate provided above is for estates where:

There is a valid will
There is no more than one property
There are no more than 5 bank or building society accounts
There are no other intangible assets
There are up to 6 beneficiaries based in the UK
There are no disputes between beneficiaries on division of assets. If disputes arise this is likely to lead to an increase in costs
There is no inheritance tax payable and the executors do not need to submit a full account to HMRC
There are no claims made against the estate

Disbursements that are typically incurred are:

Probate application fee of £155.00 plus £1.00 for each sealed copy of the grant
Electronic ID check of £3.96 per person
Office Copy Entries from the Land Registry of £6.00 where there is a property
£7.00 swearing of the oak (per executor)
Bankruptcy-only Land Charges Department searches (£2.00 per beneficiary)
£ x post The London gazette – protects against unexpected claims from unknown creditors
£ x Post in a local newspaper – this also helps to protect against unexpected claims

Disbursements are costs related to your matter that are payable to third parties, such as court fees. We handle the payment of the disbursements on your behalf to ensure a smoother process.

Potential additional costs

If there is no will or the estate consists of any share holdings (stocks and bonds) there is likely to be additional costs that could range significantly depending on the estate and how it is to be dealt with. We can give you a more accurate quote once we have more information.
Certainty Will Search of £95.00 plus VAT if no Will can be located or a later Will is suspected.
If any additional copies of the grant are required, they will cost £1.50 per copy (one per asset usually).
Dealing with the sale or transfer of ownership of any property in the estate is not included.

How long will this take?

On average, estates that fall within this range are dealt with within 6-8 months. Typically, obtaining the grant of probate takes 3-6 months. Collecting assets then follows. Once this has been done, and any debts paid, and Estate Accounts prepared, we can distribute the assets, which normally takes 2 – 4 weeks.

For Estates where Inheritance Tax is likely to be payable or a full Inheritance Account may be required costs are more likely in the region of £3,000 to £8,000 plus VAT depending on the complexity of the estate.

It is difficult to provide a ‘standard’ quote for the type of work as there can be many variations of both circumstances and executor of assets involved.

It is always advisable to contact us first discuss in detail your requirements and we are happy to provide you with guidance and an indication of the overall work and anticipated timescale to properly manage your expectations.

We are happy to provide more detailed quotes once in possession of the full details and the circumstances of your case.

Our main aim is to assist you as sensitively and efficiently as possible at this traumatic and upsetting time.

Please contact us directly where we can provide more accurate costs information based on the specific circumstances and your requirements.

The time taken to collect the assets will depend on how easy it is to release the assets. The main asset is usually a property which can take more time to sell. In other cases bank and building society accounts can be closed relatively quickly.

Jul 27

Leasehold Law Review welcomed, but developers will find a way around it

With the news that the Government is planning to scrap ‘unfair’ leaseholds on new build houses in England, Emyr Pierce, Managing Partner at Emyr Pierce Solicitors, thinks this could have major repercussions for Wales where there are significantly more leasehold houses.

Emyr said, “In England the existence of leasehold houses is a relatively rare commodity whereas in Wales, historically, it has been more commonplace.

“For example, a large part of Cardiff at one time consisted of leasehold houses let on 99 year leases at a nominal ground rent as the land was owned by wealthy land owners such as the Marquess of Bute and Earl of Plymouth. As a result, the purchase of freehold interests in leasehold houses is something with which Welsh lawyers are more than familiar.

“It seems that politicians in England are focusing on the fact that developers nationally are looking to make an even larger profit on the sale of properties by selling them as leasehold and then selling their freehold portfolios in their developments to investors.

“Investors will buy freehold portfolios as they can prove very profitable initially, by charging for consent to carry out alterations which in turn can result in a higher rent or ultimately, charging for either extending the lease term or simply selling the freehold interest of each individual house.

“The mechanism for selling freehold interests in leasehold properties has been governed by the Leasehold Reform Act since 1967 and, in its amended form, enables an owner of a leasehold house the right to purchase the freehold interest after owning the property for two years (no longer having to actually occupy the property for this period) provided the property meets certain valuation criteria set out by the Act. The method of calculation is laid down by statute and the ultimate remedy for unhappy purchasers is to refer the matter to the Lands Tribunal.

“The news this week appears to focus on the fact that developers are now looking to add to their source of huge profit by selling new plots to unsuspecting purchasers as leasehold, and not freehold, without fully explaining what this entails.

“Ultimately it is the buyer’s lawyer’s responsibility to explain to purchasers the difference between freehold and leasehold and the possible cost implications of purchasing a leasehold property.

“This attempt to outlaw the sale of new build properties as leasehold rather than freehold is indeed welcomed as the only people losing out would be the developers. It would remove the opportunity to make more money at the expense of the home owner in the future. However, it will not control the prices at which these new build houses are sold, so the developer may respond to such legislation by simply adding on an additional figure to the asking price to compensate them for any sum that they would otherwise have obtained from selling the freehold interest to an investor. The consumer would therefore not necessarily be protected, contrary to the intention behind any such legislation.”

Emyr Pierce is Managing Director of Emyr Pierce Solicitors in Rhiwbina, Cardiff, specialising in Domestic and Commercial Property.

For an immediate quotation or discuss your requirements with a specialist, please telephone us on 029 20 616002 Monday to Friday 9am to 6pm and on Saturday 10am to 4pm or visit www.emyrpierce.co.uk or email us at law@emyrpierce.co.uk. For more information on our commercial property expertise, please visit http://www.emyrpierce.co.uk/commercial-property.

Apr 25

“Stealth” death tax scrapped by Government

With just one week to go until the Government’s proposed probate fee increase was due to be introduced, it has been scrapped. Whilst many people will no doubt breathe a sigh of relief, it is not yet clear whether the Government will revisit these proposals if re-elected. Speaking for myself and my colleagues, we had been subjected to additional pressure as a result of such proposals as clients expected us to submit applications before the end of this month in order to avoid paying substantially increased fees.

What are probate fees?

Probate fees are the fees payable to the Probate Registry on application for Grants of Probate when someone dies. The Grant is the legal authority given to executors or administrators of the Estate of the deceased to distribute and administer their property, savings and investments.

What was the extent of the proposed Probate fee increase?

The Budget originally put forward proposals to introduce substantial hikes in probate fees payable from May of this year. Currently, the charges are £215 for those who apply personally, or £155 if the application is made through a solicitor. The new ruling would have resulted in an estimated 58% of Estates worth less than £50,000 incurring no fees at all, an estimated 23% of Estates worth between £50,000 and £300,000 paying £300 and an estimated 11% of Estates valued between £300,000 and £500,000 paying £1,000! For an estimated 6% of Estates worth between £500,000 and £1 million, they would have seen their fee rise to £4,000, around 1% of Estates worth between £1 million and £1.6 million would pay £8,000, and 0.3% worth between £1.6 million and £2 million would pay £12,000 and finally, an estimated 0.5% of the Estates in this country, worth over £2 million, would need to pay a whopping £20,000.

The Government’s argument was that roughly 94% of Estates would have paid no more than £1,000 in Probate fees whereas those Estates over £500,000 would pay substantially more.

Critics claimed these fees to be more representative of a “Stealth Tax” as the Probate fee is payable in addition to any Inheritance Tax already payable, at a massive 40%, on the value of Estates worth more than £325,000.

The Government claimed the increases were necessary to ensure that HM Courts and Tribunal Service (HMCTS) is funded adequately now and in the future, and argues that despite the concerns expressed, these increases are necessary to continue to provide “access to justice”. The main problem is, of course, that a bereaved family does not regard a fee payable to obtain a Grant of Probate as necessarily providing “access to justice” and that, unlike a Court fee, which is often calculated on the value of the dispute in hand, this is an administrative fee payable in order to process essential paperwork. It is for this reason that these fees have remained fixed for many years and, whilst currently representing good value for money, and arguably due for review, the extent of the increases previously proposed resulted in allegations that it no longer represents a “fee” but a “Stealth Tax” representative of a further 1% charge on all Estates valued over £50,000.

We will have to wait and see if the Government revisits this issue or whether they have recognised that this may well represent a huge vote loser!

Emyr Pierce

Managing Partner

Emyr Pierce Solicitors

1 Heol Y Deri, Rhiwbina, Cardiff CF14 6HA

Apr 12

Lasting Powers of Attorney (LPA)

Increased Awareness of LPAs

Ten years after their introduction as replacements for the Enduring Power of Attorney, the Public’s awareness of the implication, benefits and value of having Lasting Powers of Attorney has increased substantially during the past few years.

Jun 16

Can I claim against survey oversight?

I have just discovered that the house I bought three years ago has subsidence. We had a full survey carried out before we bought and this was not spotted. I am insured but will have to pay a hefty excess for the repairs. Can I make a claim against anyone for this oversight?

YOU need to obtain an independent report from a Building Surveyor or Structural Engineer to establish whether or not the problem existed at the time you bought. A building surveyor will advise as to whether or not your surveyor should have identified any tell-tale signs that should have been picked up in an ordinary homebuyers or structural survey. If the Report is favourable, then you may have a claim against your surveyor for professional negligence. You should seek the advice of a solicitor specialising in professional negligence. You should also investigate the possibility of the problem being covered by your building’s insurance policy as this may be an easier and more direct way of recovering the cost of the remedial works. In the event of a successful insurance claim, you may still have the right to claim any uninsured losses direct from your surveyor, such as any excess, should you be able to prove negligence. As with all such litigation the cost of pursuing it must be weighed up against the overall cost of the works.

Jun 16

Can I be forced to paint the outside of my house?

MY neighbour is having the outside of his house painted to put on the market and mine is looking very tatty next to it. He says the state of my property is now affecting the value of his and has asked me to get mine repainted. He is threatening me with his solicitors. Can he do this?

NO he cannot. If your property is very dilapidated due to lack of maintenance then the only remedies available to your neighbour would be a local authority enforcement notice declaring the property to be in a dangerous state which would require you to carry out urgent repair works for health and safety reasons, or action by an estate owner who may have the benefit of a restrictive covenant for repair should you live on a development where all properties are subject to various covenants including an obligation to keep the property in a good state of repair, and to decorate the exterior of the property, say, every five years.

Jun 12

Do I need Planning Permission for my boat?

I am considering buying a boat, but the only place I can keep it during the winter months is in the front garden in full view of the neighbours. Will I need Planning Permission for this?

The first thing you need to establish is whether your property is subject to any restrictive covenant preventing you from placing or storing a boat on your property. Many properties are subject to covenants or restrictions preventing the storing of anything other than domestic vehicles on their properties.

Planning Permission is not mandatory in such circumstances, but you will be well advised to check with the local authority planning department first in order to ensure there is no objection. If you can fence around the area where the boat will be stored then this very often helps in appeasing the neighbours, who can see that you are making efforts to consider them by screening what many may regard as an eyesore.

As with all potential planning related issues it would be courteous to discuss this with your neighbours to establish that they have no objection to your storing the boat on your property. Even if there was a restriction on the title preventing you from doing so, it is less likely to be enforced if you have the support and backing of your neighbours. After all, breaches of covenant are often raised directly as a result of objections received from neighbours who are often subject to similar restrictions.

Jun 12

Do I still have to pay my rent after I’ve moved out?

In my Tenancy Agreement there is a clause stating that if I wish to terminate the agreement and move out, I will still have to pay my landlord until a new tenant is found. Is this lawful?

All residential short-term Tenancy Agreements granted for a fixed term of at least six months, but not exceeding 12 months, are deemed to be Assured Shorthold Tenancies. These fixed term tenancies ensure that both the landlord and tenant are committing to a fixed period of a minimum of six months and a maximum of 12 months.

Should you wish to terminate this agreement before the end of the fixed term you may well have to pay your landlord rent for the balance of the agreed contractual term of the Tenancy Agreement unless your landlord can find an alternative tenant to take the premises within that period, in which case the landlord may, but is not obliged to, release you from the terms of your Tenancy Agreement before the end of the fixed term.

If you continue to occupy beyond the fixed term period specified in the Agreement then the Agreement can be terminated by either party giving the other notice to terminate as specified in the Agreement. Provided these notice periods are adhered to then you will be free to leave. Any Tenancy Agreement containing such a term stating that you are obliged to continue to pay rent until an alternative tenant is found for the property is not only unusual, but would probably be unenforceable and considered to be an Unfair Contract Term in so far as it relate to a period beyond the fixed term of the tenancy. The position should be easily clarified by talking to your solicitor.

Jun 2

Can we withdraw our offer?

My partner and I have made an offer on a house which has been accepted and we would due to exchange contracts next week. She has now said it is too soon for us to live together but I can’t afford to buy on my own. Can we walk away from this, or is it too late?

Fortunately, it is not too late as you may withdraw from any transaction prior to contracts being unconditionally exchanged. Despite your being virtually on the point of exchanging contracts, it is possible for either party to withdraw from the transaction. You are, therefore, free to withdraw without any obligation to indemnify the seller for any of his abortive costs or for any inconvenience caused.

A late withdrawal like this often infuriates the innocent party as they have no recourse to make any claim for the recovery of their abortive costs. All you can do is apologise to the seller for your late withdrawal, which is due to a change in your personal circumstances which are clearly beyond your control.

Jun 2

How do I find the owner of the wasteland that I want to buy?

There is a small plot of wasteland at the side of my house which I would like to buy to extend my plot. I have asked around but no-one seems to know who owns it. How do I find out who the owner is?

This is a very common problem. While the majority of land throughout England and Wales continues to become registered land with details registered at HM Land Registry, numerous pieces and parcels of land (many where ownership simply is not known) remain unregistered.

With unknown parcels of waste land it is often difficult to identify the actual owner. You can make enquiries either direct through your solicitor or direct to the Land Registry to establish whether the land is registered. If it is, then identifying the owner is a relatively simple process as you simply obtain a copy of the title which will identify the name and address of the proprietor. If the search shows the land is unregistered, then it is very difficult to establish who the true owner is, particularly if enquiries in the immediate locality prove unsuccessful.

You are, therefore, left with the prospect of having to take steps to claim the land as yours. This will involve initially ensuring that the land is enclosed within your own property in order that you may show that you have enjoyed uninterrupted occupation of the land. You will need to swear a Statutory Declaration evidencing the period during which the land has been occupied solely by you without any interruption or claim from the rightful owner. You can apply to the Land Registry for Possessory Title to the land based on appropriate evidence in support.

If, however, at some time in the future the true owner lays claim to the land then the Land Registration Act 2003 makes it easier for the lawful owner to do so upon production of proof of title – despite the fact that you may have occupied the land for the previous 10 years or so.