Archives for March 2020

The new build property market has seen some developers placing excessive restrictions on new build properties and catching householders unawares.

This has surfaced following the change of law regarding new build properties in summer 2019, when the Government abolished leasehold ownership for new build homes. This was done to prevent developers from maximising their profits by doubling ground rents in some cases.

Now all new build homes must be sold as freehold.

However, there are some developers who have switched the unfair leasehold charges with unfair restrictions on new freehold properties instead.

What Does Freehold Mean For Homeowners?

If you buy a freehold house, the property and land it is built on should belong to you and you should have the freedom to make changes to it, within reason, as you wish. Compare this to a leasehold property, which is only yours for a set number of years and comes with more restrictions and service charges, and the option to buy freehold should be an appealing one.

The Unfair Restrictions On New Build Freehold Homes

Some new build freehold houses are being sold with restrictive covenants on them, limiting what the householder can and can’t do with it. When this happens, homeowners are finding out too late that they need permission from the developer to extend the property or improve it in certain ways – restrictions that aren’t the norm on freehold properties.

As some developers are placing the same covenants in freehold contracts as used to be found in leasehold contracts, this is catching buyers out. There have been issues for some homeowners when it comes to selling the house because of the restrictions and extra charges in place.

Top Tips For Potential Home Buyers

Buying a home is already a stressful experience, without the risk of falling victim to a scam in the process. To help prevent this happening to you if you’re looking to buy a new build freehold home, we strongly recommend the following:

• Seek legal advice if you have concerns about the property
• Find a conveyancing solicitor to check all the covenants in the contract
• If covenants are found that you don’t like, ask your conveyancer to negotiate for their removal
• If the developer refuses to remove restrictive covenants, consider carefully whether you want to go ahead with the house purchase

How We Can Help You With Your New Build Purchase

Our property solicitors have helped clients with a wide range of legal transactions, from the straightforward through to the complex – and every one is handled in a friendly, efficient and effective way that ensures the desired outcome is achieved for every individual.

Our conveyancing solicitors will advise and guide you on the purchase of your potential new build freehold home, and will thoroughly check every document related to the house buy. There to support you at every stage, our conveyancers will notify you of any restrictive covenant or excessive charges found within the contract and negotiate with the developers on your behalf.

We are also able to help if you have been caught out by a developer with a new build freehold home, and can assist you on the best way for you to approach the situation.

To speak to one of our specialist property solicitors about buying a new house or your current new build home situation, contact us on 0800 988 3674 or email advice@bartletts.co.uk

Now that we are well into 2020, have you made the changes you wanted at the start of this new year and for your future? If you haven’t already done so, now is the time to get your personal affairs under control should be priority.

Alongside the more usual New Year resolutions of joining the gym, giving up alcohol and spending less money, should be plans for making a Will and appointing a Power of Attorney in case the worst happens.

We have some tips for ensuring the New Year is a happy and peaceful one, thanks to your personal affairs being in order.

What Personal Affairs Plans Should I Make In 2020

Plan Your Will

If you don’t already have a Will, make it your priority to write one in the New Year. Your Will is there to express your wishes for your estate when you die, including who your beneficiaries are, your executors and how you want people to inherit. You can state who gets what asset and on what terms. Not having a Will means the rules of intestacy decide who inherits and this isn’t always what is wanted.

Update Your Will

It’s a good idea to check your Will every 5 years or whenever your family or financial situation changes. If you get married or have a baby, be sure to reflect this in your Will so loved ones are protected when you die. You may also want to change beneficiaries or executors over time or alter plans depending on any new tax rule changes so that loved ones can inherit in the most tax efficient way.

Check Your Living and Working Circumstances

If you live with your partner but are not married or in a civil partnership, your partner will not automatically inherit when you die unless you stipulate this in your Will – the rules of intestacy can deviate from this.

If you own your house, make sure the title deeds are up to date as this helps ensure loved ones are taken care of when you die.

It’s worth checking your life policies and pension policy to make sure your arrangements are up to date and provide your loved ones with the best protection upon your death. Financial advice will help you with your policies and tax efficiency. It’s also worth having a plan in place for your business that outlines what happens if a partner or shareholder dies, so that this happening does not impact on the worth of the business.

Power Of Attorney

Illness or an accident that changes your life and leaves you mentally incapacitated can happen at any time – which is why it makes sense to have a Power of Attorney in place today. Appointing someone to handle your affairs should you no longer be able to make decisions means you have the peace of mind that no matter what the future holds you can continue to protect loved ones.

Foreign Assets Rules

If you have assets within Europe, the changes to succession law in August 2015 mean it’s possible Scots Law can be used rather the law of that particular country when it comes to inheritance. If you hold assets outside of the EU you need to consider having a Will in these countries that unites well with your main Will.

How We Can Help You With Your Planning

New Year is a great time for making resolutions and putting plans in place for your future. Organising or updating your personal and financial affairs will not only give you peace of mind but also ensure you can provide for loved ones in the best possible way, today and tomorrow.

To speak to one of our specialist Family Law solicitors about planning for 2020, including Wills, trusts, estate planning and Power of Attorneys, contact us on 0800 988 3674 or email advice@bartletts.co.uk

Top Legal Tips For Buying A House With Friends

High house prices are making it harder for young people to get on the property ladder – which is why more and more are choosing to buy a house with friends.

On the surface, pooling your resources with friends to buy a property can seem like an ideal solution to tackling the dilemma of how to get on the first rung of the property ladder. However, there are many factors to consider and it’s important you think carefully before going ahead with such a joint purchase.

Top 3 Considerations When House Buying With Friends

How Are Payments On The House To Be Made?

When it comes to finances, consider whether you and your friends will pay the deposit, mortgage payments and other bills equally or not? Also, what happens to a person’s share of the property if they die?

You need a declaration of trust to cover all the details regarding payments. The declaration should state the shares everyone owns in the property and how the shares are to be divided when the property is sold, as well as what happens to the shares if someone dies.

How Easy Is It To Buy Another Property At A Later Date?

If a co-owner wants to take his or her money out of the house in order to buy somewhere else, does the property need to be sold? Or can you and the other co-owners buy out the person leaving and on what terms could you do this?

Other considerations on this topic include Stamp Duty Land Tax as buying a second place means you’re no longer considered a first-time buyer. If you or a co-owner can afford to buy another property whilst retaining interest in the co-owned house, an extra 3% Stamp Duty Land Tax on the purchase price has to be paid.

What Does Joint And Several Mortgage Liability Mean?

Mortgage liabilities are joint and several, meaning if a co-owner leaves or another is no longer able to pay due to job loss, you and the others are liable to pay the mortgage.

How We Can Help You With Your Joint House Buy    

Our professional conveyancing team has extensive experience when it comes to helping individuals as well as co-buyers to purchase their property in the least-stressful and most beneficial way.

If you’re thinking of buying a house with friends, it’s important you only undertake such a venture after seeking professional legal and financial advice first.

We will tailor our advice to your specific needs and the type of buying relationship you have with your friends, to ensure you’ve considered every aspect of your house buy – for today and for the future too.

To speak to one of our specialist conveyancing solicitors about buying a house, contact us on 0800 988 3674 or email advice@bartletts.co.uk