Cardiff Archives - Page 5 of 8

Sep 9

Do I need to pay Council Tax for a property while it’s being renovated?

We have bought a very old property that is in need of major renovation and are living in a caravan in the garden while the work is carried out. Should we still be paying the full Council Tax for the property while we are not in it?

Depending on the individual circumstances, you can apply for a Council Tax exemption if the property is unfurnished while the renovation work takes place (eg any furniture could go into storage).

If the property remains furnished while the work is going on then there can be no exemption.

If the exemption is accepted you could receive a 100% exemption for the first six months and up to 50 % exemption for another six months after that.

If you apply for an exemption, the Council is likely to send an inspector around to check the property is unfurnished.

* Emyr Pierce is Managing Partner 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

Sep 9

I’m struggling to afford my mortgage – how can I avoid losing my house?

I am experiencing severe problems with paying my mortgage as my working hours – and salary – have been reduced by half. What can I do to ensure I don’t lose my house?

With increasing unemployment a consequence of the current economic conditions, more and more people will experience difficulties in meeting their mortgage repayments. The critical point to bear in mind is to ensure you approach your Lender immediately you are experiencing difficulties as there are various options open to both you and them in addressing short-term problems.

Sadly, the majority of people, probably due to the stress of the situation, stick their heads in the sand and do nothing, allowing arrears to build up over a period of months. Inactivity and the reluctance to meet the problem head on will cause more problems than it solves, as your Lender will become sceptical as to your genuine willingness to find re-employment or resolve your financial problems.

By contacting your Lender immediately you can discuss the various options available. Depending on the extent of mortgage involved your Lender may be able to offer you a “payment holiday” period while you find re-employment or get yourself back on your feet or maybe transfer a repayment product on to an interest free arrangement temporarily depending on what you can afford.

Do not pretend that there isn’t a problem. Meet your problem head on. You may be relieved to hear there may be short terms solutions for your predicament.

Aug 28

Can I have double-glazing repaired on warranty?

I bought a bungalow about a year ago with a double-glazed front door fitted by the previous owners. The seals on the double-glazing have started to fail. Can we claim on the warranty to get them fixed?

Provided the glazing was guaranteed and the guarantee was either for the benefit of all future occupiers or, if not, the guarantee was assigned (put in your name) to you as buyer, then you have the benefit of the guarantee and can claim under it – as long as the period has not expired.

If the double glazed front door was fitted after April 1, 2002, then it should also have a FENSA Certificate confirming the glazing meets current safety standards. You should have received both the guarantee and FENSA Certificate (if applicable) on completion of the purchase of your bungalow.

Any notice of change of ownership for the guarantee is usually required within three months of purchase, and unless this has been submitted the contractor may refuse to recognise the right of the owner to claim under the guarantee.

Aug 28

How do I buy my Council house?

I have been living in my Council house for 26 years and I would like to buy it. What do I have to do?

As you have lived at the property for so long you are eligible to buy your Council house at the appropriate discount – calculated on the length of time you have occupied the property – and capped at £16,000. Contact the Council who will arrange for the property to be inspected by their Valuer. They will then issue you with an offer notice containing the terms on which they are prepared to sell you the Freehold Interest. This will also quote the appropriate level of discount which they are offering you. If these terms are acceptable, you need to instruct solicitors to act on your behalf in the purchase and respond to the Council formally accepting the offer made.

Please be aware that a proportion of this discount will have to be repaid if you dispose of the property within five years of your purchase, and it is only the Council Tenant who has occupied the property during the qualifying period who will be entitled to acquire the Freehold Interest under the Right to Buy legislation and benefit from the discount.

Aug 28

Can I stop my home being repossessed by selling it to my son?

I am currently experiencing serious financial problems. My son has lived with me for the last 22 years. Could I sell the property to him to prevent the property being repossessed? If so does it have to be for the full market value?

Any transfer to your son either for no consideration (a gift) or at an undervalue (less than market value) could be deemed to be a deliberate attempt on your part to defraud your creditors under the provisions of the Insolvency Acts, and could be subsequently overturned by your Trustee in Bankruptcy should you be declared bankrupt within a period of five years from the date of the gift.

Provided there is sufficient equity in your property then you can of course sell to anyone you wish (including your son) for the full market value provided of course there is sufficient to repay the amount owing on the mortgage, inclusive of all arrears and costs. If the sale value is less than the amount owing on the mortgage (negative equity) you can only proceed with any such sale with the express consent of the Lender.

You would not be able to transfer the property to your son, or anyone else, without first repaying the mortgage as the Lender has a Restriction registered against your property title preventing any such dealings without them first being repaid their loan. In the event of a negative equity situation you would need to negotiate a settlement or they will repossess and sell at auction. It may of course be in the Lender’s interest to agree to a sale even though they will not receive the full repayment as they will save the costs of repossession and subsequent remarketing and will receive a larger sum from the net proceeds.

Mar 31

Don’t do DIY to make a 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.

Mar 31

Landlord opened 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.

It is not illegal for anyone to open your mail. It is certainly discourteous, but not illegal. You should have arranged for all your mail to be forwarded to your new address through the Royal Mail Redirection Service so that the only mail that would continue to be delivered to the property is junk mail.

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. One always relies on the integrity of either new occupiers or former Landlords to forward unopened mail, but of course there is no obligation on anyone to do so and certainly not for any indefinite period.

Jul 25

Do I need a HIP to sell to a member of the family?

We are hoping to sell our house to my wife’s cousin who is moving to the area to work. Is it true that we won’t need a HIP as we are selling to a member of the family?

A HIP is now required in the event of a property being offered for sale to the general public.

However, in the event of a privately-negotiated sale no HIP is required – whether or not this is a sale to a member of your family, provided it has not been marketed in any way.

Marketing includes a sign in your garden or window advising that the property is for sale. You will, however, still require an Energy Performance Certificate.

Should you have placed your property on the market only for a member of your family to end up buying it, then a HIP will be required as you cannot market your property without one.

Jul 25

Shall I tell the mortgage company I rent a room?

Our son has just returned from abroad and will be living at home and paying a small rent to us. Do I need to tell my mortgage company about this?

It is a condition of all mortgages that if you have anyone living at the property, other than the Borrowers, who is over the age of 17 and who resides at the property as his or her main residence, you are obliged to notify your mortgage company immediately as they will require that individual to sign a form effectively postponing that individual’s right to occupy the property in favour of the mortgage company’s rights under the mortgage.

The reason for this is that the Borrowers will have entered into a binding legal contract with the Lender whereby, in return for the money borrowed, the Borrowers charge the property in favour of the mortgage company. This contract is personal to the mortgage company and Borrowers.

In a case 20 years ago it was established that any person other than the Borrowers over the age of 17 who occupy the property as their main residence have the right to occupy that property – a right that ranks in priority to any other interest which a third party may have in the property, such as a mortgage company.

This decision was far reaching and resulted in all mortgage companies addressing the problem by requiring a formal Deed from the occupier whereby the occupier postpones his or her interest in the property.

Failure to obtain such a form would result in your son being entitled to remain living in the property in the event of you falling into arrears on your mortgage and being re-possessed.

You would, however, be liable for any loss suffered by the mortgage company due to your breach of your mortgage conditions.

Jul 25

What is a Certificate of Title?

I am buying my first home and have been told my mortgage company is waiting for the Certificate of Title. What is this and could it cause a hold up?

The solicitor acting on your behalf in the purchase of your new home will, usually, also act on behalf of your lender providing you with the mortgage funds required for your purchase.

Your solicitor will need to satisfy very strict and extensive conditions and requirements which all lenders require from solicitors and conveyancers. This obliges your solicitor to report to your Lender any issues arising out of any pre contract investigations, either in respect of the title of the property, or your own personal circumstances, insofar as these differ from the position reflected in your mortgage offer, the most common variation being a change in the purchase price.

Only when your solicitor is satisfied on all aspects will he be prepared to submit to your Lender his report on the title of the property, otherwise known as the Certificate of Title.

This is the form which confirms to the Lender that all matters relating to the property are acceptable, that there are no onerous covenants or lack of rights of access or services to the property, and that, in the opinion of the solicitor, the property has a good and marketable title. The certificate will also specify the completion date on which the funds are required.