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For further help or information regarding the articles below, please contact Steven Quy sq@gross.REMOVE-THIS-BARRIER-BEFORE-SENDING.co.uk

CO-OWNERSHIP OF PROPERTY

What happens if….?

The purchase of residential property is perhaps the single most important financial transaction most people make in their lifetime. Great care must be taken over such transactions and co-habiting partners must give careful consideration to what will happen to their respective interests in the property and address the unthinkable; what happens if the relationship breaks down and they fall out over what they do and not do not own?

These are some of the issues that need to be considered:

These matters can be best dealt with by entering into a Deed of Co-ownership. Parents might have something similar drawn up if they are providing funds for their child to purchase a property for example.

Steven Quy sq@gross.REMOVE-THIS-BARRIER-BEFORE-SENDING.co.uk

BUILDING ON OR NEAR YOUR PROPERTY’S BOUNDARY

If you wish to build on or near the boundary of your property you may have to follow the procedures set out in the Party Wall Act 1996 which came into force on 1st July 1997.

The Act provides a framework for preventing and resolving disputes in relation to party walls, boundary walls and excavations near neighbouring buildings. Anyone intending to carry out work of the kinds described in the Act must give notice to Adjoining Owners even where work to an existing party wall will not extend beyond the centre line of the boundary.

A wall is a “party wall” if it stands astride the boundary of land belonging to two or more different owners and is either part of one building, separates two or more buildings or is a “party fence wall” being a wall that does not form part of a building but stands astride the boundary line between land belonging to different owners such as a garden wall.

The Act covers three situations:

  1. Various work (such as demolishing or rebuilding a party wall or inserting a damp proof course all the way through the wall) to be carried out directly to an existing party wall or structure.
  2. New building at or astride the boundary line between properties.
  3. Excavation within 3 to 6 metres of a neighbouring building or structure depending on the depth of the hole or proposed foundations.

FIRST TIME BUYERS - HOME SWEET HOME

First time buyers of residential property will welcome the Government’s latest initiative to encourage the younger generation in taking their first steps on the property ladder.

Since 24 March 2010, legislation within the Finance Bill 2010 introduced relief from land tax payments - Stamp Duty - on properties transferred to first time buyers up to a value of £250,000. The time period given by the Government for this relief is from 25 March 2010 until 25 March 2012.

In order to qualify for this relief the first time buyers must confirm that they will be occupying the new property themselves as their main or only home and that they have never owned a similar interest in property anywhere in the whole world!

As a reminder, the current stamp duty rates are 0% for first time buyers up to £250,000; 0% for purchasers up to a value of £125,000; 1% up to a value of £250,000; 3% up to a property value of £500,000 and thereafter 4% applies to property purchases over £500,000, but up to £1M. From April 2011, a fifth band will be introduced and anyone buying a property costing more than £1m will pay 5%.

PROTECTING YOUR PROPERTY FROM FRAUDSTERS

The Land Registry has recently launched a campaign to help protect homeowners who are most at risk from property fraud, where the title to the property is registered at the Land Registry.

Fraudsters often target properties on which there is no mortgage, and where the owner lives elsewhere. They attempt to acquire ownership of a property by using a forged document to transfer title into their own name, or by impersonating the true owner. The groups most at risk are those who do not live in their own home (such as elderly persons living in residential care), homeowners living abroad and buy-to-let landlords. The Land Registry has said that one way to stop fraudsters is for homeowners to ensure that their contact details are up to date.

You can find out more information on how to do this by visiting the Land Registry’s website at: www.landreg.gov.uk/propertyfraud or contact our Conveyancing Department and we will be happy to assist.

Planning Permission - A Summary

Since the recession hit the property market, many home owners have decided to stay put and extend/improve their homes rather than moving. VAT will return to 17.5% at the end of 2009, and many home owners are taking the opportunity to undertake home improvements now, while VAT holds at 15%. Bear the following in mind when considering home improvements:

Front gardens and drives

Planning Permission is necessary for hard-surfacing of more than 5 metres of domestic front gardens/driveways, unless the surface to be laid is permeable and all surface water is kept within the home owner's property.v

Roofs and Loft Conversions

Providing roof alterations and loft conversions are not undertaken in conservation areas or areas of outstanding natural beauty and providing they meet strict size/volume regulations, these home improvements do not need planning consent.

Extensions and Additions

As with roof and loft conversions, providing strict guidelines concerning size are adhered to, planning consent is not necessary.

Regardless of whether or not you need Planning Permission or Building Regulations Approval, all home owners should check their Title Deeds carefully, to see whether any alteration or additions to the property may be in breach of a covenant on the legal title, and particularly whether they require a previous owner's written consent before work can begin. This is commonly overlooked by home owners, and it can cause additional expense and delay when a property comes to be sold, because retrospective consent has to be obtained from the former owner.

IS YOUR PROPERTY REGISTERED AT THE LAND REGISTRY?

If you have owned property or land for many years, it is quite possible that the title to your property/land is not registered with the Land Registry. Whenever a property or land is sold or has a mortgage registered secured against the Title, the property automatically becomes registered land. If you are not intending to sell your property/land in the foreseeable future and have not done so for some years, you may like to consider the benefits of voluntarily registering the Title to your property/properties. There are many benefits to registration, some of which are:

1. Reduces risk – lost deeds or encroachment on land by neighbouring property owners.

2. Improved efficiency – the title can be viewed securely and quickly online.

3. Time and resource saving – voluntary registration makes property transactions faster and easier.

4. Easier to prove title – especially important for large portfolios for landlords or for farm land.

5. Improved asset management – registration consolidates complex legal information or historic data about land holdings.

6. Protection – registration gives greater security of title, providing better protection against claims like adverse possession (prescriptive rights).

Only 66% of property in England and Wales is registered at the Land Registry. Voluntarily registering a property is a straightforward process, and the Land Registry reduces the fee payable by 25% when you voluntarily register.

Although you may have no plans to sell your land or property at this time, taking the opportunity to voluntarily register it now has financial benefits. In the long term, when you do come to sell your property, the benefit of having a registered Title, weighed against the disadvantages of having to prove an unregistered title, will become readily apparent.

A registered Title proves you own your land. It protects you against claims on your land if someone were to try to encroach on it and is the most effective way to bring all your documentation up to date. It also gives you the added bonus that your title register is easily accessible online.

LANDLORD'S OBLIGATIONS WHEN LETTING RESIDENTIAL PROPERTY

It has become very popular to invest money in buy to let property.

Many obligations are placed on the property owner to ensure that tenants live in a safe environment.

Tenancy Deposit Scheme
Since 6.4.2007 landlords are required to pay tenancy deposits into one of two schemes: a custodial scheme where the deposit is paid into a designated account held by the scheme administrator, or an insurance backed scheme, where the landlord retains the deposit but takes out an insurance policy to protect the tenant's deposit. This is in order to safeguard deposits for the tenant and facilitate the resolution of disputes arising in connection with deposits. If the landlord does not comply with these requirements he loses the ability to obtain possession of the property on two months notice under Section 21 of the Housing Act 1988, and can be ordered by the Court to pay back an amount equivalent to three times the deposit

Safety Obligations
Landlords are under a duty to ensure that the tenants of their property are living in a safe environment and there are obligations regarding gas and electrical equipment and furnishings. Failure to comply can result in fines of up to £5000 and/or custodial sentences where death or injury to a tenant occurs. For example, Landlords are required to have safety checks carried out on all gas equipment every twelve months.

Energy Performance Certificates
Energy Performance Certificates were introduced last year as part of the Home Information pack regulations. From 1st October 2008 landlords will be required to supply them to all prospective tenants, although there is no obligation to carry out any of the energy saving measures recommend in the certificate. The certificates will be valid for 10 years. Failure to comply can result in a £200 fine through the Trading Standards Authority.

Steven Quy