News Archives - Page 3 of 18

Jan 27

Why are there Prohibition Orders against the property I’m purchasing?

I am purchasing a property but my solicitors have advised me that the Local Authority Search has revealed there are Prohibition Orders registered against the property. What does this mean?

Occasionally, searches will reveal Enforcement Notices registered against properties. This will relate to Planning Conditions having been breached or the Local Authority declaring the property unfit for habitation.

A Prohibition Order is a little more serious googletest. This prevents the property from being used for a particular purpose until conditions set down by the Council are satisfied – for example the inability to use a property or part of a property, for residential purposes because certain alterations, usually unauthorised, are a risk to the health of any occupier googletest googletest googletest.

You need to consult with the Local Authority to establish what is required to satisfy these Orders as the cost of satisfying these requirements need to be included in your anticipated budget.

One other important point to note is that such entries revealed by the local authority search may have been satisfied but the entries remain on the Local Land Charges Register. If an entry is therefore revealed by the search your lawyer will need to enquire of the local authority as to whether the Notice remains valid or whether it has been satisfied.

* Emyr Pierce is Managing Director of Emyr Pierce Solicitors in Rhiwbina, Cardiff, Western Mail Conveyancer of the Year, specialising in Domestic and Commercial Property googletest. Contact www.emyrpierce.co.uk or email law@emyrpierce.co.uk

Jan 27

What happens in a jointly owned home if one person sells their half of the property?

Three years ago my mother (who is now 79) put my name on the deeds to her bungalow so that we owned it in joint names. If mum needed to go into residential care would she have to sell it to fund her care and what happens to my half?

There is excellent guidance available on the Age Concern website with regard to whether or not such a gift into joint names three years prior to entering into residential care would amount to a dissipation of assets.

In other words would it be a transaction that could be questioned by the Local Authority whereby it could be argued that your mother deliberately transferred the property into your joint names in an attempt to avoid having to pay Care costs. If it was deemed that this was the case, then the gift three years previously would be capable of being overturned and the property could be sold with a view to funding your mother’s Care.

If you lived there with her prior to, and since, the date of transfer into your joint names then obviously there would be an argument for saying that your mother was doing so to protect your position as you had lived there for some time and presumably contributed towards its maintenance, repair and outgoings.

I would strongly advise anyone considering these matters to consult carefully the websites of Age Concern and other organisations where invaluable and useful information can be obtained on this complex subject or take formal advice from a lawyer specialising in this field.

* Emyr Pierce is Managing Director of Emyr Pierce Solicitors in Rhiwbina, Cardiff, Western Mail Conveyancer of the Year, specialising in Domestic and Commercial Property. Contact www.emyrpierce.co.uk or email law@emyrpierce.co.uk

Jan 27

If my partner is a student, am I entitled to Council Tax discount?

My partner and I have a joint tenancy agreement on our flat and are both named on the Council Tax bill. He is a full-time student and exempt from paying Council Tax. Should I be entitled to a single person’s discount?

You are entitled to a single occupier discount. Your partner will need to provide a certificate to the local authority confirming he is a full-time student, at which point you will become entitled to the discount which is 25 per cent of your Council Tax bill. You will only be entitled to that discount while your partner remains a full-time student and once he completes his course and leaves full-time education he will need to inform the Council of his new situation.

Jan 27

I changed my mind about buying a new house – can I get my deposit back?

I have made a commitment to buy a new property from a national developer. I have changed my mind and do not wish to complete. Will I be entitled to the repayment of my deposit?

Sometimes a prospective buyer will commit to buying a new plot from a developer, although the anticipated completion date of the plot can often be up to 12 to 18 months later. All developers now require prospective buyers to make a commitment to purchase at the earliest opportunity and, in most cases, within 28 days of paying a reservation fee on their plot.

While these deadlines are often extended to accommodate delays in the receipt of mortgage offers and other issues, the builder will proceed with the prospective buyer provided he is satisfied that the buyer is making genuine attempts to reach as early an exchange of contracts as is practicable.

The danger is that the projected completion dates for these new build properties can be up to 18 months in the future.

On exchange of contracts a contractual commitment is made on the part of both parties whereby the buyer is obliged to complete within 14 days of the developer notifying the buyer’s solicitors that the property is structurally complete. If the buyer wishes to withdraw following exchange of contracts, the buyer is strongly advised to contact the developer immediately.

The developer may sympathise with the buyers’ predicament and agree to cancel the contract and return the deposit. However, there is no obligation to do so and the risk is the developer will keep any deposit already paid.

Worse, the developer may hold you to the terms of the contract and insist you see it through. This would mean that you would have to complete when the building was structurally complete and then to immediately re-sell.

These are the dangers of committing to a purchase so far in advance. Personal circumstances can change.

Dec 6

Why must I pay Stamp Duty to re-mortgage my property?

I own a property valued at £410,000.00 in my sole name. I have recently married and am in the process of re-mortgaging my property to get a better deal. To secure the best deal I need my wife’s salary to be taken into account by the Lender and I intend to transfer the property into our joint names as this will be a requirement of any mortgage in our joint names. My existing mortgage is £295,000.00 and I am looking to borrow precisely the same amount from the new Lender. I am astounded to find out that my Solicitors have advised that Stamp Duty will be payable on the transfer into our joint names, why is this?

Stamp Duty Land Tax is payable on any consideration payable for an interest in land.While no money is actually changing hands in this example, there is a substantial consideration being made by your new wife.

At the present time the property is in your sole name with your being solely liable for the existing mortgage. What is being proposed is that the new mortgage, albeit for the same amount, will be the responsibility of both of you and in respect of which the property is being transferred into your joint names.

In other words, your wife is receiving one half of your property in return for her becoming liable for one half of the mortgage debt (despite the fact that you will both be jointly and severally liable for the debt in any event). In this instance there is effectively a consideration made by your wife of one half of the mortgage debt in return for her receiving a one half interest in your property.

Sadly, in your case, as your mortgage is substantial, one half of the mortgage debt amounts to £147,500, which is in excess of the Stamp Duty threshold of £125,000 and, accordingly, a Stamp Duty charge of 1% of the consideration (£1,475.00) will be payable.

Dec 6

What will happen to my mortgage if I’m made redundant?

I have been warned I may be made redundant in the next few months if my company’s business does not pick up. I am very worried about losing the home I bought 15 years ago on which there remains a mortgage which I continue to pay. Is there anything I can do to ensure that I remain in the property if I lose my job and can’t find another quickly?

If you have a mortgage and you encounter employment difficulties, or are made redundant, then the best advice is to speak to your Lender immediately. There is every chance that you may be able to find alternative employment relatively quickly and any difficulty which you may have making mortgage repayments will, hopefully, only be temporary.

Most Lenders will be willing to co-operate and assist you during such difficult times and it is always better to contact them immediately you are aware of a problem, or potential problem, rather than sticking your head in the sand, being unable to make payments for a few months and then be the subject of arrears proceedings.

The Lender may be able to offer you an extended term, repayment holiday or, indeed, advise you as to ways in which mortgage repayments can be reduced during your period of unemployment.

There may also be schemes available whereby you could be assisted by Housing Associations who may be interested in purchasing your property on a Shared Ownership basis to assist you in such circumstances if the prospect of your re-employment was not great.

Dec 6

If I sell off part of my land, can I dictate its use?

I intend to sell a corner plot of land in the garden of my home in Carmarthen for building, but I do not want any buyer to build a property higher than single storey so as not to spoil my view. Is there anyway I can ensure that this happens?

If you are selling off part of your land on which your purchaser intends to build a dwelling, or if the piece of land is sold with the benefit of Planning Permission for a single dwelling, then you are in a position to dictate those restrictions, or covenants, which will forever bind the use of the land to be sold.

As in large developments, the Transfer to the Purchaser will contain restrictions, or covenants, together with the usual rights over, and reservations in favour of, your Retained Land. The fact that you will continue to live immediately next to the new building, or building plot, emphasises the importance of your ensuring that these restrictions, while not too onerous so as to render the plot unattractive, will ensure that the type of development which takes place is controlled and subject to your strict criteria.

Covenants will usually include restrictions on its use as a single private dwelling house, no business use, a restriction on its height, the maintenance of boundaries and criticlly the need to obtain your consent in the event of the building being altered in any way in the future.

You must ensure that you are clear as to what restrictions you wish to impose before the plot is sold so they are made clear to your lawyer who can incorporate these into the transfer document and ensure that any prospective purchaser is aware of these from the outset.

Dec 6

Can I create a DIY Will?

We have just bought our first house and need to make a Will. A friend of mine has created a DIY Will using a special pack bought from a local stationery business. Is this something I can do fairly simply?

One thing you can always guarantee is that when somebody intends to make a Will they will claim it is straightforward and simple.

If this were the case then it would be perfectly in order for everyone to simply draw up their Will on the back of a cigarette packet. However, half an hour with a Lawyer specialising in Will drafting will identify many aspects that you may not have considered.

You may well have a good idea of what you want to leave – and to whom – but it is the provisions within the Will that take into account certain unforeseen circumstances or, in particular, people dying in the wrong order, which can often be critical.

Ensuring that provision is made for surviving children, even if you do not have any at the time of making your Will, along with the appointment of Guardians for young children, ensuring that your share of any joint matrimonial assets will actually end up with any children from your first marriage, (and similarly for your wife), and above all else your specific wishes recorded in a legally binding document are all critically important.

Do yourself a favour – and consult a specialist to draw up your Will. In the round it really isn’t that expensive and increasingly we are seeing more and more Estate disputes as the consequences of poor or home-made Will drafting becomes apparent.

Nov 8

Is it illegal for my former Landlord to open my mail?

Is it illegal for my former Landlord to open my mail? I moved out of the flat last month and he has opened two letters addressed to me at the property he rented to me.

Interfering with mail is technically an offence under the Postal Services Act 2000 Section 84. Proving it, however, is often difficult and in such circumstances former tenants can often leave debts and hoards of letters chasing outstanding payments etc.

Sometimes these have to be opened in order to establish the position if only to advise the author that the individual no longer resides at that address. Sometimes mail is genuinely opened accidentally.

In any event you should ideally have arranged for all your mail to be forwarded to your new address through the Royal Mail Redirection Service. Any subsequent mail received at the property could either be binned, opened, or destroyed by either the new occupant, or the Landlord and you would be none the wiser.

Nov 8

What will happen to my parents’ Estate if they go into residential care?

My wife and I are considering selling our home and moving into my elderly parents’ house to look after them. My parents’ Will leaves their Estate to me and my sister but we would buy her share of the house on the death of my parents. How safe are we though if one or both of my parents has to go into residential care and the only asset they have is the house?

If you moved into your parents’ home it would be sensible for your parents to transfer the property into the joint names of themselves and yourselves as this would take advantage of an exemption available to your parents in that they have transferred one-half of their interest in the property to those who also occupy the same.

This could safeguard against the whole of the property being taken to pay for future care fees, as only the half which your parents retained would remain in their ownership and would technically represent the half to which your sister would otherwise have been entitled in the event of your parents’ death.

Should your parents move into care in the meantime then it may be that only the remaining half share in their name would be assessed as evidence could be supplied to show the reason why the property had been transferred into your joint names.

Should your parents die without having to go into care then you would have to buy out the remaining half of the property from your sister as, technically, the half remaining in your parents’ names would pass to your sister on their death as you had already received your share during your parents’ lifetime.