Conveyancing Tips: First-time Buyers Guide to Purchasing a Property

 

 

 

 

 

 

 

Purchasing your first home is such a huge achievement and should be a really exciting time. However, with so much information to take in and new jargon to learn, it can sometimes be a little difficult to process it all. But it’s incredibly important to be as clued up as possible about the process. 

 

Surveys and Searches

Surveys and searches are an important part of the home buying process. It’s a good idea to get the property checked by a surveyor to shed light on any problems that the property may have. Depending on the type of survey you choose, you’ll find that the cost will vary. Your conveyancing solicitor will conduct a number of searches which are usually carried out with the local authority, water and drainage provider, and environmental searches. There may be some additional searches required depending on the property. 

Exchange of Contracts

Exchange of contracts is the point where all parties become legally bound to the purchase. At this stage, you’ll transfer your deposit to your conveyancing solicitor. If you were to pull out, you would more than likely lose your deposit and if the seller was to pull out they would be forced to pay penalties too. You’ll now be financially responsible for the property which means that it’s important to ensure that you have building insurance in place at this stage too. 

Completion and Beyond

Congratulations! The final stage in your home buying process has finally arrived. At this stage, you’ll be required to pay any remaining fees and balances. It’s also the most exciting point of the process as you’ll be able to pick up your keys and move into your new home! Your conveyancing solicitor will arrange the filing of stamp duty land tax return to HM Revenue and Customs (HMRC). They will also register the property in your name with HM Land Registry or register the lease in your name if you’re purchasing a leasehold property.

 

 

 

 

 

 

 

 

 

 

 

 

What is Conveyancing?

 

 

 

 

 

 

 

 

 

 

 

 

Conveyancing is the branch of law specifically relating to the legal side of moving home. Conveyancers are lawyers that specialise in the legal side of moving home.  A conveyancer will go through the legal process to transfer the property ownership from one person to another.

Like most people, you’re probably wondering how the conveyancing process works, how long it will take and how much it will cost.

There are two major phases of conveyancing; exchange and completion. Lots of work goes into the process before these stages, which can often mean the whole process can take a number of weeks or months to complete.

Why do I need a conveyancer?

Whether you’re getting your foot on the property ladder or moving into your forever home, the buying and selling process can feel overwhelming. A conveyancing firm will complete the legal work to transfer the ownership of your chosen property. They will also be there at each step to guide you through the whole process.

The conveyancing process starts once your offer on a house has been accepted and ends once your ownership is registered at the Land Registry. As soon as you have confirmation that your offer has been accepted, you will need a conveyancer to get started on the legal work that is involved in transferring ownership of a home.

When using a conveyancer there is a specific process that needs to be carried out in order to transfer the legal ownership of property.  

The conveyancing process:

Step 1: ID checks will need to be carried out as part of the conveyancing firm’s due diligence. They will then also check the house title to make sure everything is as it should be.

Step 2: For purchases, a conveyancer will carry out the required searches for the property, for example the environmental and drainage searches of the property.

These local checks will flag up any potential issues with the property or land, which will be required by the mortgage provider.

For sales, a conveyancer will provide the correct forms you will need to complete for your buyers and the transaction.

Step 3: Your conveyancer will work with the other party’s conveyancer to progress the transaction, make enquiries on your behalf and iron out any issues which may have developed as a result of the searches and surveys.

Step 4: If you’re purchasing with a mortgage, they’ll check the mortgage offer and deal with any special conditions

For sales with a mortgage, they will conduct work with your lender, which may include getting a redemption statement.

Step 5: They’ll work with the other conveyancers in the chain to arrange dates for exchange of contracts and completion.

Step 6: Prepare a financial statement so you know what funds you need for both parts, and transfer funds for the stamp duty if required.

Step 7: Finally, they will register the change of ownership with the land registry for you. If you are selling, this will be taken care of by the buyer’s conveyancer.

It may seem all very complicated…but in retrospect a good conveyancer will strip out the legal jargon for you and help make the process a lot smoother and seem easier to understand.

For more useful information about conveyancing and the process, read through our Complete Guide to Conveyancing.

Who does the conveyancing?

Unless your mortgage provider stipulates a specific firm, it is up to you who you get to do our conveyancing. While all solicitors will be qualified to undertake this type of legal work, not all will be experienced in this area. So, it makes sense to opt for a conveyancing expert that specialises in residential property transactions or to go with a dedicated licensed conveyancer. Licensed Conveyancers are regulated by the Council for Licensed Conveyancers and solicitors are regulated by the Solicitors Regulation Authority.

Conveyancing Costs

Buying property is an expensive business, but the good news is that you needn’t pay a fortune for your conveyancing. Costs vary and depend on the value of the property. For more detailed information on this, take a look at our guide to conveyancing fees.

To get an up to date and competitive quote you can use https://www.movingbricks.co.uk/  The amount quoted will include the cost of the conveyancer’s time and the fees for registering with the Land Registry and any searches undertaken. When you receive a quote from us, we will give you a price that includes everything. We don’t have any hidden extras or hide things in our small print. For those buyers who are concerned about a sale falling through and winding up out of pocket, we also offer a no-completion, no fee service.

 

 

Nearly 70% Of Solicitors Suffer High Levels Of Stress

 

 

 

 

 

 

 

 

 

 

 

 

Two thirds (66%) of solicitors are currently experiencing high levels of stress, according to the latest findings from the Bellwether Report 2019 titled ‘Stress in the Legal Profession: Problematic or Inevitable’, published by LexisNexis UK.

It highlights that stress is an endemic issue in the legal profession but most solicitors working for law firms are seemingly happy in their jobs and confident about the future of their role and the firm that they work for, despite the industry facing numerous challenges.

However, the findings of the report suggest that there is an issue of stress embedded in their jobs but many feel that stress is part of their job description.

Over three-quarters of the solicitors felt that stress/mental wellbeing in the legal industry is a major issue, with 1 in 4 solicitors think that more can be done to support them in the workplace – while over a third of solicitors experience stress at work on a daily basis.

Jon Whittle, Market Development Director, LexisNexis UK said:

“We found a robust, optimistic profession which continues to believe that hard work pays off in a bright successful future. Last year the Government positioned the law as a professional occupation with the highest levels of work-related stress, depression, and anxiety which we believe is cause for concern. However, our respondents don’t agree on whether size of firm equates to stress levels.  55% of solicitors believe that enough is being done while 75% of our respondents feel that while stress is a major issue there is a sense of confusion and resignation in attitudes to it. It’s important to understand that while the future looks bright there are shadows at work.”

According to leading experts in mental health, one in four will develop a diagnosable psychological condition over the next year. The mental health crisis sweeping the UK has sparked businesses to look at their employees’ wellbeing, putting in place programmes to support employee welfare and combat stress in the workplace.

Due to the mental health epidemic, is it time for the wellbeing of the legal profession to be supported? One solicitor comments on stress and the impact on the legal profession, saying “There’s competition and constant pressure. It’s all about ticking the right boxes and saying the right things. I can’t see things changing.”

Being a conveyancer can be a challenging and demanding role, due to the fast-paced nature of the role, moving from client file to the next client file is a juggling act which can be stressful -especially on Fridays as this is the busiest day of the week for conveyancers where most completions take place. It is also commonly referred to as “Friday Fraud” where fraudsters will capitalise, due to conveyancers being preoccupied, thus, making it easier for a dishonest email to slip into the system.

 

 

 

Stages of the Conveyancing Process

 

 

 

 

 

 

 

 

 

 

Conveyancing covers the legal and administrative processes by which the ownership of a home is transferred safely from one person to another. It is our intention to ensure that your move proceeds smoothly and that ownership passes from the seller to the buyer. It is important for all parties concerned to have some understanding of the conveyancing process.

To help your sale or purchase transaction proceed smoothly and with as little stress as possible, we have produced this step-by-step guide with our best conveyancing advice.

Step 1: Instructing a Conveyancing solicitor and initial stages

Firstly, you need to instruct a conveyancing solicitor to help you sell or buy your house, so once you secure a buyer or purchaser, they will be able to move to the next step immediately. 

The solicitor will send you several questionnaires for completion. Here, the buyer and their solicitors will rely upon your full and correct replies in deciding whether to proceed and, if so, on what terms. Incorrect or misleading responses may result in the buyer being entitled to claim damages/compensation or even refusing to complete the purchase from you after the exchange of contracts.

For preliminary matters, if you are selling your property, you must commission an Energy Performance Certificate (EPC) before you put your property on the market. In any event, you must produce the EPC to the buyer before the exchange of Contracts.

Speedy return of the forms will enable us to obtain your deeds, assess your current mortgage(s), and assemble the information needed to prepare the contract for sale. Please note that in almost every case, when a property is sold, all mortgages or loans secured against the property must be repaid on completion. We will only repay mortgage/secured loans on completion. We will not deal with any debt or loan which is not charged upon the property title. 

Step 2: Enquiries and conveyancing searches

The seller's solicitor's task at this stage is to obtain the certificate of ownership (title deeds), their Building Society, Bank or the Land Registry, together with a large amount of information. They will then prepare a contract for the sale of the property and will send the buyers’ solicitors information about the property, comprising proof of ownership, a list of contents to be included in the sale and a host of other points relating to boundaries, neighbours, planning, rights of way etc.

As part of the conveyancing process, there are always searches when buying a house to make sure there are no adverse matters that the buyer should be aware of, as there are things you may not have noticed about the property when viewing it with an estate agent. Some of the searches could be Environmental Matters, Local, Drainage, Mining, and Chancel Searches; these are things you should consider with great care before committing to buy.

If there are queries on the property, this process can become quite long. In a chain of transactions with several people moving simultaneously and dependent upon each other, the whole chain can only proceed at the speed of the slowest person in the chain. In total, the conveyancing searches usually take 2-6 weeks to complete. 

Step 3: Securing your mortgage and house survey

Once we have received the results of the searches, a report of the property is created. Then the buyer will apply for a mortgage. It is essential that your lender is provided with all the correct, requested information. They will then conduct a valuation of the property to ensure it is worth the agreed sum and in the lender’s best interest to give a mortgage.

If the valuer misses important items or defects, it is most unlikely that the buyers will be able to take any action against the valuer at a later date. Therefore, the buyers must arrange a more detailed survey of the property, either a Home Buyers’ Survey or, in some cases, a building survey, to understand the building they are buying and its costs.

When the buyers apply for a mortgage, they will usually be able to ask the lender’s surveyor to carry out a Home Buyers’ Survey at the same time as the valuation. However, the buyers can arrange this independently if they so wish. Arranging a mortgage takes approximately 4 weeks in total. 

Step 4: Signing the Contract

Once the buyers’ solicitors have received all the paperwork from the sellers’ solicitors, together with the result of the searches and a copy of the buyers’ mortgage offer, they will arrange to go through all the documentation with the buyers or send the buyers a written report to advise them fully about the property and to discuss a number of other issues as follows:

1. Do I need buildings insurance?

It is important that the building's insurance arrangements are made at an early date. If you choose to have a mortgage, the lender will insist on the property being insured. It may be cheaper to make your own insurance arrangements, however.

You also may need to start the insurance from the exchange of contracts. If in doubt, check with your lender or us.

If you are not getting a mortgage or choose not to let the lender deal with insurance, you will be responsible for the necessary arrangements. The contract will provide that if the property is damaged or unusable between the date of the contract and completion, the buyer will nevertheless be obliged to complete the purchase. The seller has no obligation to the buyer to insure, other than in certain circumstances where the property is leasehold. Therefore, the buyer must have their own cover from the exchange of contracts.

2. Mortgage repayment

By this time, the buyer has discussed with the lender the arrangements you wish to make to repay your mortgage. Suppose this is to be in conjunction with a savings policy, a life insurance policy, a pension, or any other similar policy. In that case, arrangements must be in place by this stage.

3. Options on ownership

If there is more than one buyer, you will be “joint owners”. There are two methods of jointly owning property, and you must discuss these with us. Sometimes it might be sensible to consider putting the property in the name of a relative, for example, your adult children. Please discuss with us at an early stage if this is a possibility.

4. Deposit

The contract you sign will provide that you will pay a 10% deposit of the purchase price to enable the exchange of contracts. If you borrow more than 90% of the purchase price, your solicitor will have to negotiate a reduced deposit on exchange of contracts. If you are buying and selling, the deposit paid by the person at the bottom of the chain is usually passed up through the chain. This means that one or more parties will likely accept a reduced deposit. Please be aware that if you pay a reduced deposit, the seller can normally claim the balance of 10% off you if there is a later problem.

5. Money

It is important to ensure that the money for the deposit and/or the purchase of the property is not locked away in a Bank or Building Society requiring several weeks or months' notice to extract it. We will require any cheques to be used in connection with the purchase at least seven working days before the completion date.

6. Wills

If you have not already made a will, it is wise to consider the implications of your proposed purchase in the event of your death. If you have already made a will, it would be prudent for you to consider whether any amendments should be made in light of the transaction.

Once the buyer’s solicitors have dealt with all these points, the buyers will be asked to sign the contract to buy the property.

It is important to note that signing the contract is not the same as an exchange of contracts. Only once the contracts have been exchanged does the deal become legally binding; both parties will sign their own contract sometime before.

Step 5: Exchange of contracts

Once the buyers’ and the sellers’ solicitors are satisfied that everything is in order, they will then arrange an exchange of contracts. At that stage, the date for moving (the completion date) is inserted in the contract. It is vital to remember that until the contracts have been exchanged, both you and your buyer are not legally committed to proceed. Up to that point, either party may withdraw.

It is also wise to bear in mind that a gap of at least seven days and preferably longer should be left between the exchange of contracts and completion since neither party is guaranteed a particular completion date until the formal exchange of contracts has taken place. On average, the exchange of contracts to completion is usually 1-2 weeks.

Following the exchange of contracts, all parties involved are aware that the matter is to be completed on a particular day. The solicitors on both sides will be busy dealing with various administrative tasks, including obtaining the money from the lender if there is a mortgage. By the completion date, the buyer’s solicitors will have received sufficient money from the buyers and their lenders to enable them to pay for the property.

Step 6: Completion – the big day!

Prior to the completion of your purchase, we will send you a completion statement. If there is money due from you to complete the transaction, then we must receive payment of this sum in full a few days before completion so that we have cleared funds in time for completion. It is your responsibility to ensure that you have available all the money needed to pay the balance of the purchase price, including our fees, but excluding the amount of your mortgage loan (if any).

The buyer’s solicitors will, on the completion date, transfer to the seller’s solicitors sufficient money to buy the property. In return for the money, the buyer’s solicitors will receive the legal transfer document, together with all the other relevant documents for the property. And for the seller’s solicitors to authorise the seller or their estate agents to hand over the keys to the buyers. It is important for the sellers to be aware that they should not authorise the release of the keys until they know that we have received the money for the property. You can find out more about what happens on completion day here.

Step 7: After completion

Both the sellers and buyers would have reached their goal once the completion has taken place. The sellers will have their money, and the buyers will have the house and usually a mortgage to pay. The buyer’s solicitors, however, have a number of tasks to perform after completion, including the payment of any stamp duty land tax, the registration of the property at the Land Registry and notification of the freehold owner if the property is leasehold.

This is a general guide to a basic form of transaction, which we hope you have found to be helpful. Although the administrative and legal procedures in each transaction are similar, every single piece of property is different. It goes without saying that all sellers or buyers have their own particular expectations and requirements. 

The average time for the complete conveyancing process is usually 8-12 weeks. However, Muve offers a as part of their service. This upgrade guarantees exchange in 5 weeks for a freehold property and 8 weeks for a leasehold, or you get your upgrade fee back for every week over the timeline.

 

 

 

 

Should I Choose Fixed Fee Conveyancing?

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Fee Conveyancing 

Fixed Fee Conveyancing is where a pre-agreed price is set for the conveyancing service being given. The Conveyancing Quote agreed at the beginning should be the price you pay at the end. The term ‘fixed fee’ relates to the price of the legal services offered. However, the fixed element of the quote rarely includes conveyancing disbursements since it’s difficult to predict exactly which searches are required and their costs.

Fixed fee conveyancing is common throughout the UK. However, some conveyancing solicitors still use an hourly rate service. It’s important to make this distinction when comparing conveyancing solicitors so you can budget accordingly.

Customers often prefer fixed-rate services as it allows them to budget for the expected costs. Otherwise, if you have an estimated amount, you may encounter hidden fees. 

What Are Conveyancing Fees?

Conveyancing fees are the fees charged by your conveyancer to cover their work. It covers the legal work involved in property sale and/or purchase. Conveyancing fees are split into two parts: 

• legal fees – what you pay for the time and expertise of the solicitor or conveyancer, and
• disbursements – third parties charge for other services like searches.

Some conveyancing fees apply only to sellers whilst others are only paid by buyers.

How Much Are Solicitors Fees When Buying A House?

Legal fees must be itemised on your conveyancing quote. They should cover the work carried by the conveyancing solicitor. Whilst conveyancing costs vary, they normally fall between £800-£1500. It is important to check whether disbursements will be included with this fee.  

Other factors can influence the price you pay for conveyancing; leasehold properties and listed buildings cost more as there is more work involved. If the transaction is particularly complicated or you live in London, your bill will be higher.

It is important to remember that higher fees do not necessarily mean a better quality service. At the same time, suspiciously cheap quotes for conveyancing should ring alarm bells. If it looks too good to be true, it usually is. Always Compare your conveyancing quote with others.

Disbursements

Disbursements frequently cover the following:

 

Searches from £199

Conveyancing Searches are done to find out more about the property you’re buying. Typically they include environmental, drainage & water, local, Land Registry and coal where required. If your searches are much lower than this price ensure they include all of the above.

Bankruptcy search fee from £3 per person

Made to check the buyer is not bankrupt or on the verge of bankruptcy.

ID check from £10

You will need to provide two forms of ID to your conveyancer. These can be your driving licence and passport. ID checks are made to prevent money laundering.

Title Register from £6

Checks are made with the Land Registry with regards to a property.

Land Registry fee between £20 – 270 (unregistered land is double)

The fee paid to the Land Registry for them to update the property records.

Land Registry pre completion £3

Pre completion searches are to prevent entries being registered against a property after exchange and before completion.

Stamp Duty Land Tax (SDLT)

If you’re buying a home in England or Northern Ireland and paying more than £125,000, you will have to pay Stamp Duty. It also applies if you are paying more than £40,000 for a second property. This tax applies to both freehold and leasehold properties and whether you are buying outright or getting a mortgage.

 

5 Most Affordable Commuter Towns Near London Location isn’t everything, but it’s high up on the list when it comes to house shopping in commuter towns.

 

 

 

 

 

 

 

 

 

 

 

 

So, if it’s a shorter commute you’re after,  grab your shopping checklist and read up on these top commuter towns for 2018.

Hunting for property in our experience usually starts with weeding down your ideal location (s).

Price then tends to be the clincher for most people. As much as it’s important that the location you’ve set your heart on ticks the boxes, price and commute are as important as anything.

Overspending can cause stress, but settling for a cheaper location and trying to convince yourself that a larger commute is ok ( when it’s really not ), can cause just as much worry.

Struggling to settle?

If you’re struggling to find somewhere to settle down that is not only affordable but in acceptable distance from the city, your family or your place of work, then this list of affordable commuter towns in the South of England does the job.

We recommend the areas that will suit your needs and budget, whilst delivering you to London in enough time to listen to your daily podcast, but not enough to binge-watch an entire Netflix series.

We know that you probably appreciate a good coffee and a decent brunch before your Yoga class or woodland stroll on a weekend. Personal social needs are as important as location and price, so we’ve ordered the following locations in terms of interests and dweller habits.

 

Luton, Bedfordshire: Best for first time buyers ( who need decent schools and pretty villages ) .

Where: Luton is only 23 minutes from St Pancras station, which is one of the reasons why first-time commuters are getting their money’s worth in now.

Who for: Luton is great for those on a tighter budget. Families benefit from an array of quality schools with a large majority of them being rated as ‘good’ by Ofstead.

Why choose here?  Property starts with older, medium-sized semi-detached homes, to sparkly, ‘pick your own tiles’ new builds. The surrounding areas are picturesque villages such as ‘Lilley’. For those who like to get sweaty, they all seem to have a selection of larger gyms and fitness classes scattered around the area. The town centre is also going through renovation throughout the next few years, but the foodie and coffee options will please the pickiest of people.

Price for commute: £4,176 for annual 2018 season train ticket

Average house prices: £252,896

Berkhamsted, Hertfordshire: A mix of country and town.

Where: Just down the train line from Euston and the rambler friendly Chiltern Hills.

Who for: Those who love to spend time in nature and forget about the city grind.

Why choose here?  The selling point for us is the quick 30 mins train ride into London. Not to mention the impressive Grand Union Canal that flows right through the town. The whole place is full of history and interesting structures to wander through. The area is within The National Trust Ashridge Estate, famous for its fields of bluebells and wildlife. For those who are less nature lovers and more ‘Nandos and a movie’  then film buffs can treat themselves to The Rex, a cool, retro cinema when the British weather shows itself up.

The main private school; Berkhamsted School has boarding available and the local primary schools have been rated as ‘outstanding’.

Price for commute: £4,900 for annual 2018 season train ticket

Average house prices: A three-bedroom Victorian terrace house will set you back about £650,000 to £700,000.

 

Chatham, Kent: Affordable homes along historical rivers, perfect for boat life.

Where: Chatham is one of the Medway towns.

Who for: Young families and couples who prefer a well rounded, active life and good coffee.

Why choose here? Chatham to central London takes 37 minutes.

Chatham has also recently become a bit of a yearly tourist attraction, especially with the Festival of Steam taking place over the Easter holidays. The Dockyard is open all year and exhibits steam trains and cool classic cars. There If you’re a bit of a foodie, you’ll find the usual chain restaurants surrounded by small, busy independent restaurants and cafes. If Chatham isn’t your thing, then Roan built in Rochester, is just down the train line for pretty weekend days out.

Price for commute: £10,424 for annual 2018 season train ticket

Average house prices: £650,000 to £900,000 for a three- or four-bedroom house.

Chippenham, Wiltshire: Best for flexible workers.

Where: A historic market town in Wiltshire.

Who for: ‘Coffee shop and remote workers’  who work part-time in the city.

Why choose here?  It takes less than an hour to reach Paddington Station. Those with a larger budget will fall for stunning period properties. If that’s ot what you’re looking for, then check out; Hullavington, Great Somerford, Biddestone, and Sherston.

All these towns host communities made of active young professionals.  Alongside everything that makes a countryside fabulous (we’ll let you fill in the blanks) these towns also have excellent fitness facilities like the Santosha Yoga Studio and schools.

Price for commute: £10,424 for annual 2018 season train ticket

Average house prices: Prices start from £650,000 to £900,000 for a three to four-bedroom house.

Basildon, Essex: Budget-conscious buyers ( but secret shopaholics ) .

Where: Basildon is the largest town in the county of Essex.

Why choose here? It’s 34 mins to London. The centre of the town,

over the next 15 years will have more than £1 billion spent on it to give it a fresh new look and open opportunities for businesses. the town its new look.

With large green spaces and Festival Leisure Park close by, there is always plenty to do for all kinds of buyers.When it comes to education, the Beauchamps High School in Wickford and Mayflower High School have recently been classed as ‘outstanding’ in their last Ofsted inspections.

Who for: Shoppers, foodies, and theatre lovers will thrive in this close to the city location. With plenty to do no matter what the weather does, there’s always something on to keep you busy. Sports lovers can hang out at  Basildon Sporting Village which has two swimming pools, eight sports halls, and an impressive indoor climbing wall and athletics stadium.

Basildon dwellers are also spoilt for choice when it comes to the great outdoors. With over four hundred acres of woodland and flower-filled meadows found in Langdon Hills Country Park near the Thames Estuary walks.Walkers and cyclists will be in their element. For shoppers, as well as multiple malls and department stores, the town has been hosting its own weekly market for the last 50 years.

Price for commute: £4,088 or annual 2018 season train ticket

Average house prices: £262,964

Nearly 70% Of Solicitors Suffer High Levels Of Stress

 

 

 

 

 

 

 

 

 

 

 

 

Two thirds (66%) of solicitors are currently experiencing high levels of stress, according to the latest findings from the Bellwether Report 2019 titled ‘Stress in the Legal Profession: Problematic or Inevitable’, published by LexisNexis UK.

It highlights that stress is an endemic issue in the legal profession but most solicitors working for law firms are seemingly happy in their jobs and confident about the future of their role and the firm that they work for, despite the industry facing numerous challenges.

However, the findings of the report suggest that there is an issue of stress embedded in their jobs but many feel that stress is part of their job description.

Over three-quarters of the solicitors felt that stress/mental wellbeing in the legal industry is a major issue, with 1 in 4 solicitors think that more can be done to support them in the workplace – while over a third of solicitors experience stress at work on a daily basis.

Jon Whittle, Market Development Director, LexisNexis UK said:

“We found a robust, optimistic profession which continues to believe that hard work pays off in a bright successful future. Last year the Government positioned the law as a professional occupation with the highest levels of work-related stress, depression, and anxiety which we believe is cause for concern. However, our respondents don’t agree on whether size of firm equates to stress levels.  55% of solicitors believe that enough is being done while 75% of our respondents feel that while stress is a major issue there is a sense of confusion and resignation in attitudes to it. It’s important to understand that while the future looks bright there are shadows at work.”

According to leading experts in mental health, one in four will develop a diagnosable psychological condition over the next year. The mental health crisis sweeping the UK has sparked businesses to look at their employees’ wellbeing, putting in place programmes to support employee welfare and combat stress in the workplace.

Due to the mental health epidemic, is it time for the wellbeing of the legal profession to be supported? One solicitor comments on stress and the impact on the legal profession, saying “There’s competition and constant pressure. It’s all about ticking the right boxes and saying the right things. I can’t see things changing.”

Being a conveyancer can be a challenging and demanding role, due to the fast-paced nature of the role, moving from client file to the next client file is a juggling act which can be stressful -especially on Fridays as this is the busiest day of the week for conveyancers where most completions take place. It is also commonly referred to as “Friday Fraud” where fraudsters will capitalise, due to conveyancers being preoccupied, thus, making it easier for a dishonest email to slip into the system.

Moving Home Checklist

 

 

 

 

 

 

 

 

 

 

 

 

Moving can be a stressful time. Even when you’re finally setting up in your new home and you’re ready to rest, you need to set up various things to start getting comfortable. You may think the brunt of work should be over now, but you’ll be able to enjoy your new place much better if you get some big steps out of the way first. 

To make things easier on you, simply work your way through this checklist of essential things to do right as you move.

Make Sure All the Paperwork is Settled

The last thing you need is legal issues, especially since a move will already put enough on your plate. Make sure you have a residential property lawyer to help you sort out all of your ownership paperwork. This is necessary whether you are selling your previous home, buying a new home, or both.  

It’s also a good idea to ensure you’ve got the billing system and information in order at your new place. Talk to the previous owner to make sure utilities are billed to you and that there is no balance left from their time there. 

Sweep Through the Property

This means a visual sweep, of course. Simply do a thorough inspection as you walk through the entire property once more. Do this before unpacking anything and setting up so you can get a feel for the space and make sure that everything is as it should be. 

If you have specific agreements with the previous owner, this is the time to make sure they came through. This can reveal any issues that weren’t present in your initial viewing and any possible breaches against your sale contract.

Conduct a Deep Clean

Now, you can do the literal clean sweep. A good and thorough deep cleaning will help you make sure that everything is spick and span. It’s more extensive than a general cleaning, so you can rest assured that any built-up germs and dirt will be tackled. This should also give you a great clean slate to start with.

Double Check the Plumbing and Electrics

You’ll want to ensure that all the outlets, wiring, plumbing and lighting fixtures, switches, and pipes are working as intended. You should also check out where your water valves and fuse box are and make sure they are accessible. 

Figure Out Your Layout

You’ll have a much less painful time sorting your furniture and belongings if you have already mapped out your layout for each room. Consider where each item will be placed so you can put the corresponding boxes in the right rooms. You should also have an idea of the placement so you can just haul the furniture to the actual area where it will be set up. 

Install Any Pet or Child Proofing Essentials

If you have any pets or children, start installing all your proofing as needed. You can do this quickly and set up a zone for them to stay in while you’re still setting up some of the more hazardous things like kitchen chemicals, sharp tools, and breakables.

Letting your tenant go: consenting to assignment and underletting

 

 

 

 

 

 

 

 

 

 

 

 

 

If you are a landlord of commercial property, you will have chosen your tenants carefully.  A landlord wants to be sure that a tenant will pay the rent and service charge, and that the tenant will comply with the obligations in the lease so that the property is kept in good repair.  At the same time, a business tenant will want the right to move out and either pass on the lease or sublet to another business if their circumstances change.  There are legal penalties for landlords who are found to be unreasonable in objecting to a tenant’s proposals, so good legal advice is essential for landlords who want to avoid a dispute while still controlling who becomes their tenant.

‘Letting commercial property isn’t just about collecting the rent,’ according to Abraham Khan, an associate solicitor in the commercial property team with Hatten Wyatt. ‘The income is vital, but landlords are also looking at the credentials of tenants while trying to maintain the attractiveness of their properties.’  That makes it all the more important to be able to exercise some control over who takes on a lease if the original tenant moves out.  

The landlord’s duty to be reasonable

The law on when a landlord can refuse consent to an assignment or underletting has evolved over almost a century.  The starting point is the Landlord and Tenant Act 1927.  Most leases will state that the tenant may not assign without the landlord’s consent.  The 1927 Act says that where landlord’s consent is required, the landlord may not unreasonably withhold it even if that is not set out expressly in the lease.  Sixty years later, the Landlord and Tenant Act 1988 turned this into a positive obligation, creating a statutory duty for a landlord to give consent within a reasonable time, unless it is reasonable to refuse it, and not to impose unreasonable conditions.  The landlord must also set out in writing any conditions for giving consent or, if consent is refused, the reasons for the refusal.

The concept of reasonableness is intended to allow flexibility to reflect specific circumstances; what is reasonable in one case might not be in another.  The problem for landlords is to work out how long they can reasonably take over their decision and when they will be reasonable in rejecting a proposed assignee or undertenant.  Fortunately, there is plenty of case law that helps and your lawyer will be able to advise you.

Reasonable grounds for refusal

The first place to look is the lease itself.  Since 1996, landlords have been allowed to include in a lease specific circumstances in which they will be entitled to refuse consent to an assignment and specific conditions they will be entitled to impose.  A circumstance for refusal might be where a proposed assignee is a foreign company; an agreed condition might be that the assignee provides a satisfactory guarantor.  Any of these circumstances or conditions will automatically be reasonable.  This applies only to assignments and not to an underletting, but where there is an underletting the landlord can still enforce the lease obligations against the tenant.

The landlord may also refuse consent or impose conditions for other reasons, if this is reasonable.  The court has established the principle that to be ‘reasonable’, a landlord’s grounds for withholding consent must be linked to the landlord and tenant relationship.  That means it is reasonable to withhold consent if the tenant cannot produce accounts and references that show that the proposed assignee is financially sound and able to pay the rent and comply with the rest of the lease.  A landlord may not refuse consent to secure a personal advantage, so it would be unreasonable to refuse consent because the landlord wanted to use the property themselves, or if the landlord wanted to persuade the proposed assignee to take a lease of a nearby unit the landlord also owned.

Another helpful bit of case law made it clear that if a landlord has several units or properties close to each other and has set out a formal ‘tenant mix’ policy, it is reasonable to refuse consent to a proposed assignee or undertenant whose business would not fit with that policy. 

How long is too long?

The requirement to give a decision within a reasonable time is another potential trap for landlords.  The best practical advice is to move quickly once a tenant makes a formal request for consent.  Beyond that, there are some useful pointers in the case law:

• As a rule of thumb, the landlord should aim to give a written decision, with reasons, within 21-28 days, although there may be situations where 21 days is too long, or where it would be reasonable to take longer.
• If the tenant explains that there are particular reasons for needing a fast decision, the landlord should take this into account, as it could mean that the reasonable period is shorter than it might otherwise have been.
• The clock only starts running when the tenant has provided all the information the landlord needs to make a reasoned decision.  If the initial request is accompanied by only sketchy financial information, the landlord should ask for whatever they need and they are entitled to wait for it before giving a decision.

 

 

 

Knowledge is power when purchasing property

 

 

 

 

 

 

 

 

 

 

 

 

Sarah is here to help house buyers and sellers get to grips with the conveyancing process. This month, she explains why knowledge is power when purchasing a property…

I have heard the phrase ‘buyer beware’ used in relation to property purchases. What does it actually mean?

‘Let the buyer beware’ is the literal translation of the Latin ‘caveat emptor,’ which applies to all property transactions that are contractual arrangements.

It means the purchaser is obliged to establish for themselves the condition of the property they are buying. This might be with the help of a surveyor, or any other contractors you wish to use, to determine if there are any structural issues or problems with the gas, boilers, electrical installations, etc.

Any conveyancer acting on the purchase of a property will advise you that ‘caveat emptor’ is a fundamental element of the transaction. It is, therefore, important that before you exchange contracts, you obtain an appropriate survey, inspection reports and any other items relating to work that has been carried out.

There is no legal obligation on the seller to provide any of these reports or information. As the phrase suggests, the purchase of a property is the buyer’s risk, so it is up to you to do the appropriate due diligence. If issues come to light, look to liaise with the estate agent involved in the transaction to agree a price reduction or allowance to carry out the necessary repairs.

Once contracts have been exchanged, the transaction becomes legally binding and you are then committed to buying the property. This means you are required to pay the seller the price stated on the contract and responsible for putting right any issues that are discovered after completion.

A final inspection

It is recommended that you do a final check on the property just prior to exchange, as several weeks or months may have passed since your first viewing. Changes may have taken place or there may be issues you wouldn’t spot without a thorough inspection.

This is especially important if the property is rented. You will need to ask the tenants to vacate, so you can carry out a visual inspection to ensure they have left it in a satisfactory condition and that you are still happy to proceed with the purchase.

If you are buying a vacant property, this final inspection is also particularly important. For example, you need to check that the heating hasn’t been turned off completely in cold weather, as this can lead to problems with the system and damage from burst pipes. If you find the boiler has been switched off, turn it back on again to ensure it is in good working order. It is fundamental to living comfortably in the property and can be expensive to replace.

A huge commitment

Buying a property is one of the biggest financial investments you will ever make, so it is vital you have as much information to hand as possible before proceeding with the purchase

The effect of school catchments on property purchases

 

 

 

 

 

 

 

 

 

 

 

It's that time of the year again – back to school season. Little ones, and not so little ones, have in the last few weeks been returning to infants, primary or secondary schools in their droves after the long summer break. 

School catchment areas also become a pivotal consideration for parents around this time. Parents, eager for their children to be in the best-performing schools, want to be in the right catchment areas to make this possible – and it seems are often willing to pay a premium to realise their dreams. 

Parents are willing to spend big to get their children into the ‘right’ school, with a quarter moving house to ensure they are in the ‘right’ catchment area. 

Research carried out by Santander Mortgages has revealed that prices in desirable areas are being pushed up by nearly £27,000 by parents determined to secure a place for their children at their chosen school. 

According to the findings, one in four parents with school-age children have either purchased or rented a new property with the right address for a particular catchment area. What’s more, they are willing to pay an additional 12% on top of the market value of a home to set their children on the right path. 

Some 51% sold their previous home to finance a move to a specific catchment area, while a fifth are renting and a further third acquired a second home. In some cases, the financial impact of this is considerable, with a quarter of parents admitting that they have overstretched themselves on their mortgage. 

Are school places encouraging lifestyle changes?

Drastic lifestyle changes are also sometimes needed, with a fifth having to downsize and a fifth having to change their job for the sake of their children’s educational needs. 

For some, though, the move is purely tactical and temporary. A quarter of families say they will move out of their area once their child leaves school. For others – four in 10 in fact – it’s even more temporary than that. Once their child has secured a place at their desired school, they plan to move out immediately. This trend is particularly prevalent in London, where an astonishing two thirds of parents plan to leave their new home as soon as the paperwork from the schools come through. 

What is the ‘education effect’ in London?

“Buyers with children of school age will do and pay anything to get their children a place,” said Jeremy Leaf, former residential chairman of RICS and currently an estate agent in north London. “It is quite normal for buyers to check the local Ofsted reports before they read the particulars for their preferred
properties. The education effect on property prices can extend well beyond the school run boundaries.”

In London, the catchment premium is most stark. Here, a third of all parents say they have purchased or rented a particular property with the school catchment area in mind – as a result, homes with the right addresses have seen their prices rise by around £81,000. 

What are the price premiums in other regions?

The catchment premium isn’t simply isolated to London and the South of England, however. The premium paid is £18,200 in the North East, where nearly four in 10 parents have bought or rented property close to good local schools, while in the East of England the premium is approximately £29,000 – although moving for the catchment area is much less common, with only one in 10 families in this region taking such action. 

Similar research carried out by Rightmove earlier this year into premiums in key catchment areas found that the average nationwide catchment area premium surrounding schools earmarked as “outstanding” by Ofsted stood at £52,000. 

While less affluent parents may therefore be effectively priced out of getting their kids into the best
performing state schools – in turn causing problems with social mobility and barriers for disadvantaged households – parents with the financial means and determination are willing to go to extreme lengths. And, when compared to fees for boarding or independent schools, the premiums parents have to pay are much, much lower. 

What sacrifices would parents make for the right school?

Still, sacrifices do, more often than not, have to be made when it comes to parents securing a school place for their child. As well as changing jobs and downsizing, the survey – which spoke to 4,014 parents with children of school-age – found that 19% had moved to an area they deemed unsafe, 26% moved to a location that was far away from family or friends, and 25% paid more for their new property than they can realistically afford. 

Living within a particular school catchment area, while desirable to many, is likely to include financial and lifestyle sacrifices, with such addresses nearly always coming with a premium attached. 
Nonetheless, it’s a trend that is showing no signs of fatigue, with 40% of those surveyed saying catchment areas will dictate where they choose to live if they move house before their child finishes school. 

Why are school places so important to parents?

The main motivation behind all this, of course, is for parents to ensure their children get the best possible start in life, at the best possible school. Such motivations aren’t going anywhere, so it seems highly likely that parents will continue to pay premiums for certain catchment areas.
Properties in London, for example, are already prohibitive, but in popular catchment areas price tags are likely to be even more hefty and competition fierce. Buyers are warned to not overstretch themselves financially, to do their research beforehand and to ensure they have the right mortgage deal where repayments are affordable. 

Catchment areas have long proved to be a divisive issue, and with many parents feeling obliged to pay premiums to secure their child a place at the best state schools, it is an issue that will continue to rear its head on a regular basis. Solution: ensure all schools are rated good or outstanding and give parents less reasons to move to particular catchment areas. In reality, though, such a proposition seems more than a tad fanciful. 

The effect of school catchments on property purchases

 

 

 

 

 

 

 

 

 

 

 

 

  It's that time of the year again – back to school season. Little ones, and not so little ones, have in the last few weeks been returning to infants, primary or secondary schools in their droves after the long summer break. 

School catchment areas also become a pivotal consideration for parents around this time. Parents, eager for their children to be in the best-performing schools, want to be in the right catchment areas to make this possible – and it seems are often willing to pay a premium to realise their dreams. 

Parents are willing to spend big to get their children into the ‘right’ school, with a quarter moving house to ensure they are in the ‘right’ catchment area. 

Research carried out by Santander Mortgages has revealed that prices in desirable areas are being pushed up by nearly £27,000 by parents determined to secure a place for their children at their chosen school. 

According to the findings, one in four parents with school-age children have either purchased or rented a new property with the right address for a particular catchment area. What’s more, they are willing to pay an additional 12% on top of the market value of a home to set their children on the right path. 

Some 51% sold their previous home to finance a move to a specific catchment area, while a fifth are renting and a further third acquired a second home. In some cases, the financial impact of this is considerable, with a quarter of parents admitting that they have overstretched themselves on their mortgage. 

Are school places encouraging lifestyle changes?

Drastic lifestyle changes are also sometimes needed, with a fifth having to downsize and a fifth having to change their job for the sake of their children’s educational needs. 

For some, though, the move is purely tactical and temporary. A quarter of families say they will move out of their area once their child leaves school. For others – four in 10 in fact – it’s even more temporary than that. Once their child has secured a place at their desired school, they plan to move out immediately. This trend is particularly prevalent in London, where an astonishing two thirds of parents plan to leave their new home as soon as the paperwork from the schools come through. 

What is the ‘education effect’ in London?

“Buyers with children of school age will do and pay anything to get their children a place,” said Jeremy Leaf, former residential chairman of RICS and currently an estate agent in north London. “It is quite normal for buyers to check the local Ofsted reports before they read the particulars for their preferred
properties. The education effect on property prices can extend well beyond the school run boundaries.”

In London, the catchment premium is most stark. Here, a third of all parents say they have purchased or rented a particular property with the school catchment area in mind – as a result, homes with the right addresses have seen their prices rise by around £81,000. 

What are the price premiums in other regions?

The catchment premium isn’t simply isolated to London and the South of England, however. The premium paid is £18,200 in the North East, where nearly four in 10 parents have bought or rented property close to good local schools, while in the East of England the premium is approximately £29,000 – although moving for the catchment area is much less common, with only one in 10 families in this region taking such action. 

Similar research carried out by Rightmove earlier this year into premiums in key catchment areas found that the average nationwide catchment area premium surrounding schools earmarked as “outstanding” by Ofsted stood at £52,000. 

While less affluent parents may therefore be effectively priced out of getting their kids into the best
performing state schools – in turn causing problems with social mobility and barriers for disadvantaged households – parents with the financial means and determination are willing to go to extreme lengths. And, when compared to fees for boarding or independent schools, the premiums parents have to pay are much, much lower. 

What sacrifices would parents make for the right school?

Still, sacrifices do, more often than not, have to be made when it comes to parents securing a school place for their child. As well as changing jobs and downsizing, the survey – which spoke to 4,014 parents with children of school-age – found that 19% had moved to an area they deemed unsafe, 26% moved to a location that was far away from family or friends, and 25% paid more for their new property than they can realistically afford. 

Living within a particular school catchment area, while desirable to many, is likely to include financial and lifestyle sacrifices, with such addresses nearly always coming with a premium attached. 
Nonetheless, it’s a trend that is showing no signs of fatigue, with 40% of those surveyed saying catchment areas will dictate where they choose to live if they move house before their child finishes school. 

Why are school places so important to parents?

The main motivation behind all this, of course, is for parents to ensure their children get the best possible start in life, at the best possible school. Such motivations aren’t going anywhere, so it seems highly likely that parents will continue to pay premiums for certain catchment areas.
Properties in London, for example, are already prohibitive, but in popular catchment areas price tags are likely to be even more hefty and competition fierce. Buyers are warned to not overstretch themselves financially, to do their research beforehand and to ensure they have the right mortgage deal where repayments are affordable. 

Catchment areas have long proved to be a divisive issue, and with many parents feeling obliged to pay premiums to secure their child a place at the best state schools, it is an issue that will continue to rear its head on a regular basis. Solution: ensure all schools are rated good or outstanding and give parents less reasons to move to particular catchment areas. In reality, though, such a proposition seems more than a tad fanciful.  
 

 

 

 

 

 

 

 

 

 

 

 

 

What does conveyancing involve?

 

 

 

 

 

 

 

 

 

 

 

 

Buying or selling a home can be a daunting process, no matter what type of transaction’s involved. There’s a lot of legal work to be done that absolutely must be completed by a professional. Failing to carry out the proper steps in time could be a costly mistake and potentially even lead to the transaction or chain falling through.

Our conveyancing solicitors here at Slater and Gordon Lawyers can help with:

• Drafting contracts. At the heart of any property transaction is the contract, which lays out the terms and conditions of the sale which will be agreed upon by both buyer and seller. An experienced conveyancing solicitor is needed to draft such a contract, as well as checking it thoroughly on the buyer’s side. There may also need to be negotiation and compromise on the terms of the contract before an exchange of contracts can take place.
• Conducting searches and checks. If you’re purchasing a property, you’ll need a trained legal professional to conduct certain searches and checks on your behalf. These include Local Authority searches which investigate the property’s boundaries, rights of way, planning constraints or permissions and any disputes. Other searches include environmental, water, drainage and land charges, as well as any other checks you may wish to have carried out.
• Property surveys. A conveyancer can advise on valuation surveys, homebuyers reports and full structural surveys that may need to be carried out on a property you plan to purchase.
• Exchanging contracts. When everyone’s happy with the terms of the contract, conveyancing solicitors on both sides will set a date to exchange contracts. On this date, both parties are committed to the transaction.
• Handling completion day. This is one of the most important dates of any property transaction when the property purchase is completed. Between the date of exchanging contracts and completing, a solicitor can help with any last financial checks and set the date for completion. On this crucial day, the services of a solicitor are essential as everything needs to happen at exactly the right time. Your conveyancer can handle the transfer of funds to pay the balance of the purchase price and, once the keys have been handed over, register the purchase with the Land Registry on your behalf. They can also arrange for stamp duty (if applicable) to be paid.

Ultimately, your conveyancing solicitor acts as your legal representative at all stages of the transaction. Most people underestimate the amount of back and forth involved in buying or selling property, from raising and answering queries to negotiating on important contract terms. A highly trained Slater and Gordon solicitor can take this time-consuming work off your hands, helping to move progress along as quickly and efficiently as possible while you focus on other things.

Crucially, our conveyancing solicitors will keep you updated at every stage of the process. We won’t leave you in the dark or use over-complicated legal jargon, and we’ll be available to answer any and all questions quickly, explaining everything in plain language.

Remortgaging

As well as assisting with property purchases and sales, our conveyancing solicitors are also highly experienced in handling the process of remortgaging. We can represent you when speaking to the lender, helping with:

• Proof of identity
• Checking the title deed
• Property searches
• Legal work relating to remortgaging leasehold properties
• Requesting a redemption statement
• Explaining and discussing the terms of the new remortgage offer
• Final checks (including bankruptcy searches, investigating changes made to the property title since the remortgaging process began) and arranging completion
• Handling the transfer of funds on the completion date and, once the Land Registry has completed the registration, supplying you with a copy of the title deed.

Why is Right to Buy being phased out in Scotland and Wales?

 

 

 

 

 

 

 

 

 

 

 

 Scotland and Wales have decided to bring an end to the Thatcherite Right to Buy scheme.  Right to Buy has been a controversial, divisive scheme since it was first introduced by the Thatcher government in 1980. In essence, it is a policy that allows secure council house tenants and some housing association tenants the legal right to purchase, at a large discount, the home they reside in. Since 1980 some 2 million people have brought their home in this way. 

Supporters of the scheme say millions of people who wouldn't have been able to buy a home otherwise have been able to thanks to Right to Buy, in turn helping to secure the financial futures of these families as well as giving a boost to the national finances. Home ownership has long been a British obsession, those in favour of Right to Buy say the policy has helped to increase levels of it. 

Critics, however, point to the loss of social housing stock (which hasn't been adequately replaced), the creation of a national house price bubble and the fact that valuable council assets were sold off at below market value, leading to a shortage in homes for low-income households. What's more, a 2013 report found that 36% of homes (52,000) sold under Right to Buy in London are now in the hands of private landlords, suggesting that the core ethos of the policy – to increase home ownership levels – has not actually been achieved. 

While Right to Buy is still ongoing and being expanded in England – it was, after all, a key policy for the Conservatives during their surprise election win last May – both Scotland and Wales have decided to abolish the scheme. As of August 1 2016, the Scottish government ended Right to Buy for all council and housing association tenants as a part of the Housing (Scotland) Act 2014. This followed a consultation on the future of Right to Buy in 2012 and a decision in July 2013 to abolish the scheme by 2017. 

The move was fully welcomed by Scottish housing bodies, with the Scottish Federation of Housing Associations (SFHA) stating that the ending of the scheme “hasn't come a moment too soon”. In the last 37 years a total of 494,580 council and housing association homes were sold under Right to Buy in Scotland. However, critics have said this has contributed massively to an acute shortage of social housing and the scheme has no place in modern Scotland, with a housing policy based on making social housing truly affordable for people on low incomes. 

Kevin Stewart, Scotland's Housing Minister, said the decision to end Right to Buy will help to protect the country's social housing stock, with 15,500 social homes safeguarded from sale in the next decade. The Scottish Conservatives, unsurprisingly, have criticised the move to scrap the scheme, calling it 'political dogma'. 

While the scheme is already dead in Scotland, Wales is set to follow in scrapping one of the flagship policies of the Margaret Thatcher era. Although no exact timetable has been given for when the policy will be ended, Wales is expected to introduce similar legislation to Scotland within the next 12 months. Across Wales, nearly 140,000 homes have been purchased by council and housing association tenants under the Right to Buy scheme since 1980. 

Again, though, the criticism is that these homes have not been replaced. In fact, Welsh Labour says the number of homes sold as a result of Right to Buy accounts for 45% of the principality's social housing stock. Furthermore, research suggests that 40% of Right to Buy property in Wales has either directly or indirectly ended up in the private rented sector. 

Carwyn Jones, first minister for Wales, said when announcing his devolved government's plans to scrap the scheme: “We must safeguard our social housing stock. This bill will seek to protect that stock from further reductions. The analogy I have used before is that it is like trying to fill the bath up with the plug out.”

With the government in England determined to revive and expand a scheme that many think has had its day, the administrations in Scotland and Wales have decided to scrap Right to Buy to protect their remaining social housing stock. 

Housing bodies, those on low incomes and those who think Right to Buy has simply helped to exacerbate the housing crisis by reducing stock and inflating house prices, will be very pleased with the news and will be hoping that Theresa May has a rethink of her own. Supporters of the scheme, however, say it smacks of anti-aspiration and anti-ambition – a politics where the government knows best, not the individual. 

There seems little appetite for an extension of the Right to Buy scheme – which would appear to have little relevance to the housing market as it currently stands – but that is what the current government plan to do. The Welsh and Scottish governments have taken a very different approach. It will only become clearer, over time, who has called it right.

Knowledge is power when purchasing property

 

 

 

I have heard the phrase ‘buyer beware’ used in relation to property purchases. What does it actually mean?

‘Let the buyer beware’ is the literal translation of the Latin ‘caveat emptor,’ which applies to all property transactions that are contractual arrangements.

It means the purchaser is obliged to establish for themselves the condition of the property they are buying. This might be with the help of a surveyor, or any other contractors you wish to use, to determine if there are any structural issues or problems with the gas, boilers, electrical installations, etc.

Any conveyancer acting on the purchase of a property will advise you that ‘caveat emptor’ is a fundamental element of the transaction. It is, therefore, important that before you exchange contracts, you obtain an appropriate survey, inspection reports and any other items relating to work that has been carried out.

There is no legal obligation on the seller to provide any of these reports or information. As the phrase suggests, the purchase of a property is the buyer’s risk, so it is up to you to do the appropriate due diligence. If issues come to light, look to liaise with the estate agent involved in the transaction to agree a price reduction or allowance to carry out the necessary repairs.

Once contracts have been exchanged, the transaction becomes legally binding and you are then committed to buying the property. This means you are required to pay the seller the price stated on the contract and responsible for putting right any issues that are discovered after completion.

A final inspection

It is recommended that you do a final check on the property just prior to exchange, as several weeks or months may have passed since your first viewing. Changes may have taken place or there may be issues you wouldn’t spot without a thorough inspection.

This is especially important if the property is rented. You will need to ask the tenants to vacate, so you can carry out a visual inspection to ensure they have left it in a satisfactory condition and that you are still happy to proceed with the purchase.

If you are buying a vacant property, this final inspection is also particularly important. For example, you need to check that the heating hasn’t been turned off completely in cold weather, as this can lead to problems with the system and damage from burst pipes. If you find the boiler has been switched off, turn it back on again to ensure it is in good working order. It is fundamental to living comfortably in the property and can be expensive to replace.

A huge commitment

Buying a property is one of the biggest financial investments you will ever make, so it is vital you have as much information to hand as possible before proceeding with the purchase.

Copies of all expert reports should be forwarded to your solicitor, so they can deal with any queries or obtain confirmation from the seller’s solicitor that any points raised have been addressed.

10 Ways To Protect Yourself From ‘Friday Afternoon Fraud’

 

 A new form of cyber attack is on the rise. Fraudsters target the conveyancing solicitors of those in the process of buying a house, infiltrating the company’s email and diverting the funds of the buyer. reallymoving has 10 top tips to avoid losing it all.

 This so called ‘Friday Afternoon Fraud’ (named as hackers take advantage of a busy working day, where transactions can be hurried through before the weekend) can have a huge impact on buyers, with some victims losing their savings, and the property they intended to buy.
The Howard Mollett case this year was particularly painful, where the victim, in attempting to buy his first home, lost £67,000 when scammers used his solicitor’s email address to convince him to send the money to alternate bank accounts. He is still trying to retrieve this money, and no one can decide who is to blame. 

On one hand, legal firms have an obligation to highlight the risks, with 3 in 10 UK law firms being subject to cyber attacks in the last year. However, in research undertaken by tm group, 58% of firms felt not particularly threatened, or not threatened at all. Whilst understanding protection from cyber crime was important, only 13% strongly agreed that they had spent a high proportion of resources securing their communications.

So, whilst the legal profession focuses on considering the safety of their processes, there are things you can do to protect yourself, your property, and your money.

1.    Money and the human approach

If you’re making a bank transaction, or money is changing hands, call your lawyer, using the number you’ve always used for them. Don’t email bank details, and do not automatically transfer money to a bank account given in an email. If your lawyer emails you with bank details, call them and confirm. When you’ve made the transaction, call them again. We get used to needing a paper trail, but when large sums of money are involved, it’s better to talk directly. If the number in the email is not your usual solicitor’s number, or you get forwarded to an automated system, do not call it. Get in touch with your solicitor using the number you’ve used previously, and check whether they meant to send that email.

2.    Don’t underestimate a hacker

As victim Howard Mollett said, “This is not someone claiming to be the cousin of the President of Nigeria asking me to wire money to them.” This was not even a similar email address that had one letter different to his solicitor’s. It was his solicitor’s email address. The hacker replied to previous threads, commenting on recent Mollett’s work trips, making it look genuine. 
Everything you know about hacking – recognising dodgy misspelt emails, or fake companies – does not quite hit the level here. These hackers are more than competent – they have found a way to impersonate the person you trust with your money. 

3.    Stay wary, even if expecting an email

Don’t lower your guard because you have been expecting an email requesting the money – that’s how the hackers make it easy. You’re not being asked for money from nowhere, you are anticipating paying this money, and so it’s not at all strange that you’re being asked for it. Even if you’re waiting to give your payment, call your solicitors when an email arrives. Check that the numbers, email and other details match, but ask them to confirm the email, the bank details and the amount. It is too easy to expect to pay, and to be eager to get on with the process. Do not jump in without double checking every time you pay an amount.

4.    A change of bank account should set off alarm bells

If your legal firm says that they want you to use a different account to one previously used, or a different account because you’re abroad, or the amount is different – question it, and call them directly. Changes in banking are not the norm, and if issued by email, should be checked carefully. 

5.    Know when you’re at risk

You are more likely to be the victim of fraud if you have previously had your identity stolen, along with not having a mortgage, or if you’re living overseas. You can also be more at risk if going through a break up or in the middle of a family dispute, as you are more likely to be distracted and rushed when attempting to finalise a deal. Be extra vigilant and pay attention to your accounts.

6.    Register your property

If your property is not registered, you are more at risk. Check with the Land Registry, ensuring your contact details are correct. You can also sign up for alerts if anyone tries to change your property details, for example, attempting to get a mortgage using your property. You can also pay £40 to stop the Land Registry from registering any sale that is not registered under your name and confirmed by a solicitor.

7.    Don’t leave your property empty

Whether you’re a landlord, own a holiday home, or have inherited an empty property, don’t leave it empty. Be vigilant about registering it, and either visit it, or get someone to keep an eye on the place and collect the post. Having an empty property puts you at a higher risk.

8.    Pick a solicitor who understands the risks and has a plan

This is a hot topic right now, and some firms are responding by using technology to assess conveyancers on the other side of the transaction. When you’re transferring large amounts of money, you want to be sure that not only your solicitors are taking the right precautions, but the other side are as well. Talk to your solicitor about what they do to avoid ‘Friday afternoon fraud’ and ask any questions you need to.

9.    Checking the account first

Another way to be completely sure, if you’re particularly concerned, is to send a small ‘tester’ sum to the account, and then call to check it has been received. If your solicitor can confirm arrival of the money, then you can send the rest. 

10.    Ensure you’re well protected

Whilst it is definitely down to your lawyer to ensure their systems are secure, you also need to make sure yours are too. That means using very secure passwords, which are not used for anything else, and are changed regularly, as well as keeping anti-virus software up to date, and avoiding using insecure servers to make payments. 


Whilst this list should ensure your money arrives to the right people safely, ensuring you have done everything you can to make sure the transaction is secure will be important if anything does go wrong.
Everyone thinks this will never happen to them, or that they are well versed in recognising fake emails, but as the money you put towards your new home is likely to be most of your savings, it is better to be safe than sorry. Always talk to people directly, don’t wait days to see what has happened to the money, and be more wary than you feel necessary. Once the money is gone, it is difficult, if not impossible, to get any of it back.