Archives for 2020

Many families in the UK provide financial help to their children when it comes to buying a house – but it’s important to be clear if this money is given as a gift or a loan.

As property prices have increased, young people find it harder to get on the property ladder so it’s not surprising that more and more are turning to their parents to help them buy their first home. The so-called “bank of mum and dad” is now the tenth largest lender in the UK and is involved in twenty percent of property transactions.

It is estimated some £6.3billion has been lent to family members during 2019 alone, and that the average loan is £24,100.

However, the number of families ending up in court regarding the financial help given by mums and dads for buying their sons or daughters’ properties has also increased – which is why it is important parents state from the outset if the money is a gift or a loan.

Gift Or Loan Clarity

Before entering into the buying process, make sure you’re clear from the outset if the money you are giving to your son or daughter is a gift or a loan.

This may sound simple but the conveyancing process can complicate matters.

Ask yourself questions including the following:

• Do you want the money to be repaid?
• Does the buyer need a mortgage?
• Does the buyer need a mortgage from a conventional lender?
• Is the buyer purchasing the property alone or with others?

The more detail you have on the purchase itself, the easier it will be to state your intentions clearly. For example, you may want the money to be repaid but depending on mortgage arrangements, it might mean it’s declared as a gift.

Mortgage With A Family Gift

When buying property, the buyer must tell the conveyancer where their funds are from, which in turn the conveyancer has to disclose to the lender. Depending on the source of funds, this could affect the lender’s view of the buyer’s ability to afford the mortgage.

Often, where a mortgage is involved, any family help is by way of a gift rather than a loan.

Mortgage With A Family Loan

Some lenders won’t agree to a mortgage if part of the deposit is funded by other loans – and this includes a family loan.

To treat money from family as a loan can complicate the conveyancing process when the buyer needs a mortgage, and generally won’t be acceptable to a mortgage lender if it involves repayments by regular instalments.

However, there are mortgage companies that may allow a family loan if the repayment is postponed until the property is sold in the future.

What If There Is More Than One Buyer?

Many first-time buyers are young couples who buy with the help of one or other of their parents. The couple would get joint ownership of the property and would need advice on the best way to proceed – it’s a good idea for couples to set out their contributions to the property in a declaration of trust if these are unequal.

A declaration of trust can also be used to state what happens to the gift should the couple later separate.

Protecting The Loan

If your financial assistance to your child is a loan, it’s important that your investment is protected and you should seek advice from your own conveyancer.

Options to consider include:

• Do you want to be on the property title even if you don’t live there?
• Do you want to take a mortgage over the property for the amount of the loan?
• Would you rather enter into a declaration of trust to state what your share is, rather than be on the title?

There are many factors to consider, including Stamp Duty Land Tax. As a lot of mums and dads who lend their children money for their first house purchase already own a house, it may mean exposure to additional tax and that the first-time buyer rate may be lost.

The surcharge would still be payable even if you didn’t go on the title deed but stated your share in a declaration of trust.

If you took out a separate mortgage to cover your share in the property, the surcharge may not be payable but the buyer’s lender may not be happy with this arrangement and may not agree to fund the purchase.

How We Can Help You With Bank Of Mum And Dad Matters   

Buying property is a complex process and even more so when the bank of mum and dad is involved – there are many factors to consider to ensure all parties are happy and protected.

You should seek professional advice if your money is not being given as a genuine gift but rather as a loan for your children’s property purchase.

Our conveyancers are experienced at handling a range of conveyancing matters and treat every client as an individual.

We will take the time to understand your situation and establish exactly what your intentions are when it comes to the property buy – today and in the future. This will enable us to give you tailored advice that considers all the details and provides you with the protection you need for your investment and enables your child’s house buy to go ahead in a relatively straightforward and stress-free way.

We will provide advice and guidance at the outset as well as throughout the conveyancing process to ensure you and your children are happy with the property purchase.

To speak to one of our specialist conveyancing solicitors about gifting or loaning money to your children for their house purchase, or about any other aspect of conveyancing law, contact us on 0800 988 3674 or email advice@bartletts.co.uk

For clinical negligence cases valued at less than £25,000, the Government is proposing changes to the way these cases are handled and fixed costs could become law in the next year or so.

A working group of the Civil Justice Council published a report recently on how a fixed costs scheme could work for clinical negligence claims, although the claimant and defendant representatives didn’t reach agreement on what the fixed costs will be or how solicitors’ fees can be incorporated into the costs.

“Any fixed costs scheme needs to be fit for purpose or there’s a risk of inadvertently limiting how easily society’s most vulnerable individuals can access justice,” says Trevor Morris, Solicitor and Director at Bartletts Solicitors.

“Lower value claims can still be hugely complicated and tricky, and the Government needs to ensure that specialist solicitors are still able to dedicate the time needed for a case if and when the costs are capped and fixed.

“If the fixed costs are set too low, it could mean many specialists are unable to take on certain cases where the costs are relatively low but the complexity of the individual case is high – and that would be a bad thing for people wanting to access the justice system.”

Clinical negligence claims vary from the minor to the major, and include a range of incidents such as misdiagnosis, delay in getting treatment, complications after surgery, and A&E negligence.

What Fixed Costs For Clinical Negligence May Mean For You

The concern is that victims of more serious negligence claims that are still relatively low-value, may be unable to access justice. Fixed costs could result in clinical negligence solicitors not taking on cases where the damages are relatively low if the amount of work required would make it unfeasible for them at the capped cost.

“The Government consultation is ongoing and we will continue to monitor developments closely,” adds Trevor Morris.

“Ultimately, our paramount concern is being able to deliver the highest standard of service and support to all our clients with cases of clinical negligence, as we do now – whether the claim relates to a relatively minor incident or to a life-changing set of circumstances.

“The fees are yet to be decided and we hope the Government considers all the factors involved with clinical negligence claims and adopts fixed costs regime which means those with genuine claims can still obtain legal representation.”

To find out more about our clinical negligence claims services or to speak to one of our specialist solicitors at our Chester or Wrexham offices about making a claim, contact us on 0800 988 3674 or email advice@bartletts.co.uk

If you go through a separation or divorce, it’s a naturally stressful time with so many pressing matters to consider – but business owners need to be mindful of their business at this time also or there can be consequences.

It may not be priority for you if your family breaks down, as you will understandably want to resolve serious issues such as whom the children live with and who keeps the house. However, it’s important to appreciate that your business would be included in the list of assets available for division between you and your spouse.

Family Law Act And Business

According to the Family Law Act, a business is part of the property collection that you and your spouse will divide between you upon separating or divorcing.

It’s not as simple as thinking it’s your business so you’ll keep it as part of the settlement. Depending on the value of the business, this can impact on the division of other assets to be shared.

Your Business As Part Of The Shared Properties

To be considered as part of the property portfolio that you and your spouse will divide between you, you need to have it valued.

The valuation can be done in one of two ways:

1. You and your spouse agree on its value
2. The business is professionally valued

The value of your business depends on a number of factors, including:

• Its structure
• Whether a buyer would want the business without your continued involvement in it
• The resale value of assets and equipment held by the business
• The value of the brand or goodwill

How We Can Help With Your Business And Separation  

If you’re struggling to agree on the value of your business, we’d advise having it professionally valued – this way, both you and your spouse will know its value and how best to divide this and the other properties between you both.

We’ve helped many individuals after their relationship has broken down, to divide properties in the fairest way. We can advise you on the worth of your business and help you to navigate your separation or divorce in the most straightforward and least stressful way.

To find out more about our family law services or to speak to one of our specialist solicitors at our offices in Chester about the value of your business and how best to incorporate it in the property pool to be divided between you and your spouse, contact us on 0800 988 3674 or email advice@bartletts.co.uk

Leaving a conditional gift in your Will can sometimes cause unintentional problems for loved ones in the future, which is why a gift with conditions attached needs careful consideration.

“You may have the best possible motives for leaving a conditional gift in your Will,” explains Nina Sperring, Solicitor and Director at Bartletts Solicitors.

“However, occasionally things can go awry with conditional gifts, when the beneficiaries fail to meet the conditions and as a result forfeit the gifts. The failure to fulfil conditions can be due to a number of reasons, including an unawareness of the conditions in the first place.

“Best intentions are not always enough when it comes to Wills and conditional gifts, and it’s important you regularly review and update your Will to avoid future issues arising for loved ones after you die.”

What Happens When The Conditions Of A Gift Aren’t Met?

The importance of having an up-to-date Will when conditional gifts are involved, is highlighted by a recent High Court case.

This High Court case resulted in two adult children missing out on their share of a farming partnership their father would otherwise have had due to a failure to meet the condition set by their grandfather in his Will that they didn’t even know about.

Background To The Case

Mr Hines was the owner of a family farm and left his interest in the farm to his wife and two of his children, John and Philip, split equally between the three of them, in his Will.

The gift to John and Philip was made with a condition, however. The condition was that within nine months of his death, each had to pay their brother Basil and sister Beryl £15,000. If this condition was not met, their inheritance would pass to Basil and Beryl.

Condition Not Met

Mr Hines’s death meant the time limit on the conditional gift was 4 October 1992.

John failed to meet the deadline and his interest passed straight to Basil and Beryl.

Philip, however, had died two years before his father, in 1990, so obviously could not meet the condition stipulated in his grandfather’s Will.

Philip’s children, Judith and Janet, brought the case to the High Court claiming they should have their father’s share of the farm. They argued they should either inherit free from the condition imposed on their father in the Will or be excused of their obligation due to their ignorance of the condition.

The judge ruled that they shouldn’t inherit, as the condition within Mr Hines’s Will was very clear and that the children of a beneficiary are bound by the same conditions as the beneficiary. Furthermore, a beneficiary’s ignorance of a condition or the ignorance of the beneficiary’s children does not make that condition impossible to fulfil.

Hence, Judith and Janet did not inherit and their share of the farming estate passed to Basil and Beryl.

Important Lesson

Had Mr Hines updated his Will after Philip’s death, he could have made his condition surrounding the gift for his two sons clearer and Philip’s children would likely have been able to meet the condition and inherit accordingly.

How We Can Help You With Conditional Gifts   

It is important to write down all your wishes for loved ones in your Will, including any conditional gifts you want to leave to beneficiaries. However, it is even more important to ensure your Will is carefully drafted by a professional solicitor and that you review and update it on a regular basis, especially where conditional gifts are concerned.

We’ll ensure all your wishes for your estate are detailed in your Will, including any gifts with conditions attached, and that your Will is as legally watertight and current as possible, to help avoid disputes down the line.

To speak to one of our specialist Wills and probate solicitors about making or updating your Will to incorporate a conditional gift, contact us on 0800 988 3674 or 01244 311 633 or email advice@bartletts.co.uk

The personal injury specialists at Bartletts Chester office recently helped a local cleaner to secure compensation for respiratory symptoms, which had been caused by living in unfit housing conditions for two years.

The 42-year old cleaner had been living in the below-standard property with damp and mould, that ruined many of her clothes and made her susceptible to chest infections, coughs and colds during the winter months.

As a result, she suffered from respiratory symptoms far more frequently than the average person experiences winter coughs and colds.

Luckily, she decided to use the personal injury services available from the Bartletts Chester office, and the team was able to use the photos of the damp house that the client had taken as evidence. She also had been in touch with her GP, despite self-medicating for her symptoms, and there was a record of her ailments as a result. Although there was no evidence she had complained to her landlord, the landlord had failed to comply with housing protocol and was at fault for not doing so.

The personal injury specialists at Bartletts Chester helped her to successfully claim compensation for her respiratory symptoms caused by unfit housing, as well as for damaged clothing and possessions.

In addition to the compensation, she was moved to new accommodation and no longer suffers the symptoms caused by her previous unfit home.

Our experienced property solicitors have handled all types of claims against landlords for disrepair and are here to help you if you’ve suffered an illness or injury, stress or loss, due to property disrepair and want to make a claim for compensation.

For advice and guidance on your housing situation or to speak to one of our property solicitors about making a housing disrepair claim, contact us on freephone 0800 988 3674 or Tel Chester: 01244 405 399 or email advice@bartletts.co.uk