Monday, 19 January 2026

leasehold management packs

A leasehold management pack (often called an LPE1 pack in England & Wales) is a set of documents provided by the freeholder or managing agent when a leasehold property is being sold.

What it’s for

It gives the buyer and their solicitor key information about how the building is managed and what costs/obligations come with the lease.

What’s usually included

LPE1 form (standard enquiries)
Ground rent details (amount, review dates, arrears)
Service charge accounts (usually last 3 years)
Current & future service charge budgets
Buildings insurance policy and schedule
Planned major works (Section 20 notices)
Fire safety / EWS1 info (if applicable)
Deed of Covenant / Licence to Assign requirements
Notice fees payable after completion

Who provides it

The managing agent or
The freeholder (if self-managed)

Who pays

Almost always the seller
Fees typically range from £200–£500+, though some can be higher

How long it takes

Commonly 1–3 weeks
Delays are a frequent cause of hold-ups in leasehold sales

Why it matters

Buyers’ solicitors will not exchange contracts without it, so ordering it early is critical.

If you want, I can help with:

Whether you need one (selling vs buying)
How to chase/manage delays
Whether a quoted fee is reasonable
What to do if the freeholder is unresponsive

Just tell me your situation.

Thursday, 15 January 2026

Problems with a property title examples

Here are common problems with a property title, with clear examples for each. These are issues that can affect ownership, sale, or financing of real estate.

1. Liens on the Property

Example:
A previous owner failed to pay a contractor for renovations. The contractor filed a mechanic’s lien, which must be cleared before the property can be sold.

2. Unpaid Property Taxes

Example:
The seller owes two years of back property taxes. The local government has a tax lien against the property.

3. Errors in Public Records

Example:
A deed misspells the owner’s name or lists the wrong lot number, creating confusion about who legally owns the property.

4. Unknown or Missing Heirs

Example:
An owner dies without a will. Years later, a previously unknown heir appears and claims partial ownership of the property.

5. Boundary Disputes

Example:
A neighbor claims part of the driveway actually belongs to them based on an old survey that conflicts with the current one.

6. Easements

Example:
The utility company has a legal right to access part of the backyard to maintain power lines, limiting how the owner can use that land.

7. Encroachments

Example:
A garage or fence was built partially on a neighbor’s land, or vice versa.

8. Fraud or Forgery

Example:
Someone forged the owner’s signature on a deed and transferred the property illegally.

9. Improperly Recorded Documents

Example:
A mortgage was paid off, but the release was never recorded, making it appear the loan is still outstanding.

10. Judgments Against the Owner

Example:
The owner lost a lawsuit, and a court judgment is attached to the property as a lien.

11. Illegal Deeds or Transfers

Example:
A property was sold by someone who did not have legal authority (such as a co-owner selling without consent).

12. Zoning or Use Restrictions

Example:
The title reveals restrictions preventing the property from being used for commercial purposes, even though the buyer intended to open a business.

Why These Matter

Can delay or cancel a sale
Can prevent mortgage approval
May require legal action or title insurance claims

Sunday, 23 November 2025

Property transfer of equity

Here is a clear, simple explanation of Transfer of Equity in property, including what it means, when it happens, costs, legal steps, and examples.

What Is “Transfer of Equity”?

Transfer of Equity means adding or removing someone from the ownership (title) of a property without selling the whole property.

It changes who owns how much of the home but does not usually involve a full sale.

✔ You can transfer the whole share
✔ Or only part of your share (e.g., transferring 50%)

Common Situations Where Transfer of Equity Happens

Marriage / Relationship
- Adding a spouse/partner to the property title.
Separation / Divorce
- Removing a partner from the ownership.
Family Transfers
- Parents adding children to the title
- Transferring part of a home for inheritance planning
Buying out a Co-Owner
- One owner pays another to take full ownership.
Tax or Asset Planning
- Moving shares to reduce tax liability (consult a tax professional).

Who Must Be Involved?

✓ A conveyancing solicitor

Handles the legal work.

✓ Your mortgage lender

If there is a mortgage, the bank must approve the transfer.

If someone is being added → they must pass affordability checks.
If someone is being removed → the remaining owner must qualify for the mortgage alone.

If the lender refuses, you may need to remortgage.

Basic Steps of a Transfer of Equity

Instruct a solicitor
Apply for lender consent (if there’s a mortgage)
Solicitor prepares transfer deed (TR1 form)
Sign the deed
Pay Stamp Duty (if required)
Land Registry updates the ownership record

Costs Involved

1. Solicitor / Conveyancing Fees

Typical range: $300 – $1,000+, depending on complexity.

2. Mortgage Fees (if applicable)

Lender’s administration fee
Remortgage charges (if refinancing)

3. Stamp Duty / Taxes

You may owe stamp duty only if money or mortgage debt is being transferred.

Example:
If your partner takes on half the mortgage, that half counts as “consideration.”
Depending on your country’s tax rules, this can trigger stamp duty.

4. Land Registry Fee

Usually small, based on property value.

Examples (Easy to Understand)

Example 1: Adding Your Spouse

House value: $300,000
Mortgage: $200,000
You add your spouse to the title. No money exchanged → likely no stamp duty.

Example 2: Divorce – One Buys Out the Other

Two owners each own 50%.
One partner buys the other’s 50% share.
Stamp duty may apply if the buying partner takes on part of the mortgage.

Example 3: Parent Adding a Child

Parent adds child to the title for inheritance planning.
If no money changes hands → often no stamp duty, but tax implications exist.

What Documents Are Used?

TR1 form – main transfer deed
ID1 form – identity verification
Mortgage deed – if refinancing
Stamp Duty Land Tax return (if applicable)

Important Notes

A transfer of equity is not the same as selling the property.
Anyone added becomes legally responsible for the mortgage.
Tax and legal consequences vary by country—always seek professional advice.

Tuesday, 11 November 2025

floating freeholds

A floating freehold is a type of property ownership arrangement in England & Wales that can create practical and legal problems.

✅ What it means

A floating freehold occurs when:

A part of one freehold property physically overhangs, underlies, or is otherwise supported by another freehold property; and
There are no legally enforceable rights of support, access, or repair between them.

Common example:

A first-floor room belonging to one house extends over a passageway or ground-floor room belonging to a neighbour.
Each portion is owned as separate freeholds instead of being in one freehold with a lease between them.

✅ Why it’s a problem

Lenders often dislike floating freeholds because:

There may be no guaranteed right of support, meaning one owner could legally alter their structure and undermine the other.
There may be no right of access to carry out necessary repairs.
It can be hard to insure, as neither party is fully responsible for shared structural parts.
It can complicate buying, selling, or remortgaging.

✅ How the issue is usually resolved

Options include:

Deed of Grant to provide rights of support, access, and repair.
Mutual covenants between owners.
Converting the arrangement to one freehold with a long lease to the other party.
Title indemnity insurance (a last resort for lenders).

✅ Should you be concerned?

If you’re buying or selling a property and the solicitor says there is a floating freehold, it’s important to:

Understand exactly what part is affected.
Check whether rights already exist.
Confirm your lender is satisfied.
Get proper legal advice before exchanging contracts.

If you want, I can explain:
✅ whether your situation likely counts as a floating freehold
✅ if a lender will accept it
✅ how complex the fix is
✅ how to negotiate with the seller or solicitor

I can check whether your situation counts as a floating freehold — I just need a description of the layout.

Please tell me:

What part of your property overhangs or sits under someone else’s?
(e.g., “the first-floor bedroom extends over my neighbour’s passageway”)
Are the parts owned under separate freeholds?
(If you’re not sure, say so — we can figure it out.)
Has your solicitor mentioned anything about rights of support or access?

Once you give me those details, I can tell you very clearly whether it’s a floating freehold and how serious it

**When lenders usually accept a floating freehold**

Most mainstream lenders will consider it if all of the following apply:

1. There are proper legal rights in place

A Deed of Grant or similar document gives:
- Right of support
- Right of access (to inspect, repair, maintain)
- Right of shelter / protection from weather

If these exist and are enforceable, many lenders are satisfied.

2. The floating part is not too large

As a rough rule:

Lenders are okay if the overhanging/underlying area is under 20% of the total floor area.
If it’s a whole floor, lenders become more cautious.

3. The arrangement is common in the area

Example: Victorian terraced houses where a flying freehold bedroom sits over a neighbour’s alleyway — lenders accept these all the time if rights exist.

4. Indemnity insurance is available

Some lenders accept a floating freehold if:

A Flying Freehold Indemnity Policy is taken out.
Your solicitor confirms risks are minimal.

❌ When lenders may refuse it

A mortgage is likely to be rejected if:

There are no rights of support or access, and the neighbour refuses to sign anything.
The floating element makes up a large structural portion of the property.
There is a history of disputes between the properties.
The lender has a strict policy (Nationwide & Santander can be stricter).

✅ What most big lenders say (general guide)

Barclays, HSBC, NatWest: Usually OK if rights are in place.
Nationwide: More cautious; often require strong legal rights or may decline.
Santander: Case-by-case; often require indemnity insurance.
Halifax: Generally reasonable if solicitor gives a clean report.

Tuesday, 14 October 2025

What is the advantage of doing ltd company buy to let other than sole name

Good question — setting up a limited company (Ltd) for buy-to-let property investment has become increasingly popular in the UK, especially since tax rules changed for individual landlords.

Here’s a clear breakdown 👇

🏢 Advantages of a Limited Company Buy-to-Let

1. Tax Efficiency (especially for higher-rate taxpayers)

Individuals pay Income Tax on rental profits (up to 45%).
Companies pay Corporation Tax on profits (currently 25% in 2025 for most companies, sometimes lower for smaller profits).
You can leave profits in the company to reinvest rather than drawing them as income — great for portfolio growth.

2. Mortgage Interest Relief

Individuals can no longer deduct full mortgage interest from rental income (since 2020, replaced by a 20% tax credit).
Companies, however, can still deduct 100% of mortgage interest as a business expense before tax — a major advantage.

3. Limited Liability

Your personal assets are protected — only the company’s assets are at risk if things go wrong.

4. Easier to Share Ownership or Pass On

You can add shareholders (family, partners) or transfer shares for inheritance or tax planning.
This can make estate planning and succession easier.

5. Reinvestment Flexibility

Profits can be reinvested into more properties without drawing income (and paying personal tax).
Helps compound portfolio growth.

⚠️ Disadvantages / Things to Consider

1. Higher Mortgage Costs

Limited company buy-to-let mortgages often have higher interest rates and fees.
Fewer lenders offer them (though this is improving).

2. Accountancy & Setup Costs

You’ll need company accounts, annual filings, and possibly accountant fees (£600–£1,200+/year).
Incorporation adds admin complexity.

3. Double Taxation (when taking profits personally)

If you take money out (e.g., as dividends), you’ll pay Corporation Tax + Dividend Tax — though still often more efficient than income tax for higher earners.

4. CGT & SDLT Issues if Transferring Existing Properties

Moving properties you already own into a company can trigger:
- Capital Gains Tax (CGT)
- Stamp Duty Land Tax (SDLT) (including the 3% surcharge)

🧮 Summary Table

Factor	Individual Ownership	Ltd Company Ownership
Tax on Rental Profit	Up to 45% Income Tax	19–25% Corporation Tax
Mortgage Interest Relief	20% tax credit only	Fully deductible
Liability	Personal	Limited
Reinvestment	Personal funds taxed	Profits reinvested pre-tax
Mortgage Rates	Lower	Higher
Setup/Admin	Simple	Complex
CGT/SDLT transfer	Not applicable	May apply

Tuesday, 30 September 2025

WHAT IS CLASSED AS COMMERCIAL PROEPRTY

Commercial property (also called commercial real estate) generally refers to property that is used for business activities rather than for residential living.

Here’s what is usually classed as commercial property:

1. Retail

Shops, shopping centres, supermarkets
High street stores, retail parks

2. Office

Office buildings (single-tenant, multi-tenant, or entire skyscrapers)
Co-working spaces

3. Industrial

Warehouses and distribution centres
Factories, manufacturing plants
Workshops

4. Hospitality & Leisure

Hotels, hostels, guesthouses (if run as a business)
Restaurants, cafés, bars, pubs
Gyms, cinemas, theatres

5. Mixed-Use

Properties that combine residential and commercial (e.g., shop on the ground floor with flats above, where the shop element is classed as commercial).

6. Special Purpose Commercial

Petrol stations
Care homes (if run as a business)
Medical centres, dental practices
Schools, nurseries (private/independent)

👉 The key distinction:

Residential property = used as a dwelling (houses, flats).
Commercial property = primarily used for business purposes, to generate income, or provide services.

Would you like me to also explain how HMRC, UK law, or lenders define commercial property? (It can vary slightly depending on whether we’re talking tax, planning, or mortgages.)

Tuesday, 23 September 2025

A freehold flat is a type of property ownership where you own the flat outright, including the land it’s built on, rather than just having a lease for a set number of years. However, freehold flats are extremely rare and unusual, especially in countries like the UK. This is because flats are normally sold as leasehold, while freehold usually applies to houses.

Here’s a clear breakdown:

🏢 What is a Freehold Flat?

A freehold flat means:

You own the property and the land beneath it completely.
There is no lease, so you don’t pay ground rent or deal with lease extensions.
You are fully responsible for the building’s maintenance, unless there’s a shared agreement with other owners.

⚖️ Why Freehold Flats Are Rare

Flats are stacked on top of each other, so multiple people share structural elements like:

Roof
Walls
Staircases
Foundations

If each flat were completely freehold, legal and practical issues arise, such as:

Who repairs the roof if it leaks?
Who is responsible for insurance and common areas?
How to enforce maintenance standards if one owner refuses to pay?

Because of these complications, most flats are instead:

Leasehold – you own your flat for a set period (e.g., 99–999 years) but not the land.
The freehold is usually owned by a landlord or management company, or sometimes collectively by all the flat owners through a company structure.

🗝️ Typical Alternatives to Freehold Flats

If you like the idea of a freehold but want a flat-like arrangement, consider these:

1. Share of Freehold

Common in the UK.
Each flat owner owns the lease to their flat plus a share of the freehold through a company or jointly.
This gives you more control over building management and costs.
Still technically a leasehold, but with no ground rent and usually 999-year leases.

2. Commonhold

Introduced in England and Wales in 2002 as an alternative to leasehold.
Each flat owner owns their flat outright (similar to freehold) and shares responsibility for common areas through a commonhold association.
Very rare so far but becoming more popular due to leasehold reform discussions.

💰 Pros & Cons of Freehold Flats

Pros	Cons
Full ownership – no lease expiry.	Extremely rare and hard to mortgage.
No ground rent or lease extension costs.	Legal complexity around shared areas.
Greater independence and control.	Harder to sell due to rarity and legal uncertainty.
No landlord involvement.	Owners must self-manage everything.

🏦 Mortgage Issues

Many mortgage lenders refuse to finance freehold flats because of the legal risks.
If you find a freehold flat for sale:

Expect fewer mortgage options, higher deposit requirements, or even a cash-only purchase.
A solicitor will need to check legal documents carefully to avoid future disputes.

Would you like me to help you find freehold flats currently for sale in a specific area? That way, I can show you what’s available right now.