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.