Residential Property
For a free without obligation quotation on any aspect of moving home or re-mortgaging please complete the Moving Home Quotation Request. You will also receive our free "Moving Home" guide with our quotation.
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Buy to Let
For many people, buying their home is likely to be the most important and expensive purchase they will make, and will be their only venture into the property market. However, an increasing number of people are now investing in property other than for personal occupation, by buying residential property to let out to tenants.
The potential return on this investment can be attractive, both in terms of income and capital growth. Independent reports have previously suggested that property has beaten other investments, outstripping the UK Stock Market, Building Society savings accounts, gold and even vintage wines. Additionally, lenders see buying to let as relatively secure, and are increasingly offering potential purchasers/investors tailor made mortgage packages.
There is, however, a downside to be considered. Landlords of residential properties have clear responsibilities which cannot be passed to tenants. Furthermore, whilst potential income available from letting property can seem attractive compared with the cost of borrowing, and compared with income through other investment options, it is important to remember that to enjoy an income from the property, it is necessary to have a tenant – if a property is unlet and therefore non income producing, mortgage payments on the original borrowing still have to met.
In order to maximise the potential benefits of buying to let and to appreciate the potential risks involved, access to sound and professional advice is important. Band Hatton has many years experience in handling the legal aspects of property work, including purchase and residential letting, and we have created a tailor-made buy to let legal package for our clients.
The combination of sound and professional legal advice, which is accessible and personal in its nature, is the cornerstone of the service which we seek to provide. We try to build a good working relationship with you as our client.
We will keep you informed of what is going on throughout the transaction, but if there is anything you are not certain about, do please tell us. It is very important to us that you are completely clear on what is happening at all times.
We also see our role as your Solicitors as wider than the legal process itself.
As experienced professionals in the property field, we can provide invaluable guidance in connection with a number of other related aspects of your buy to let purchase, such as the right type of survey for the property you are buying and the choice of a surveyor to carry out the work, and the choice of a managing agent (if you do not propose to manage the property yourself).
In the event of you experiencing problems with your tenant, we also provide a comprehensive debt recovery and possession service.
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House Sale and Purchase
Buying or selling your home is likely to be the most important financial transaction you will ever enter into. Property law is complex and constantly changing, so sound and professional legal advice is essential. Moving house is ranked alongside changing your job, getting a divorce and having a baby, as the most stressful times in our lives. It is therefore essential that the legal advice which we provide is accessible to you, personal and responsive to your needs.
The combination of sound and professional legal advice, which is accessible, personal and responsive in its nature, is the cornerstone of the service which we seek to provide. We try to build a good working relationship with you as our client – as one of our clients wrote to us "It was nice to be treated as a person and not as a number".
We will keep you informed of what is going on throughout the transaction, but if there is anything you are not certain about, do please tell us. It is very important to us that you are completely clear on what is happening at all times.
We also see our role as your Solicitors as wider than the legal process itself. As experienced professionals in the property field, we can provide invaluable guidance in connection with a number of other related aspects of your house move, such as the choice of an estate agent on the sale of a property, the right type of survey for the house you are buying and the choice of a surveyor to carry out the work, house insurance, and your mortgage arrangements.
Explanation of Searches
As well as the mandatory searches which have to be carried out on a property when you purchase there are also further searches which can be carried out to obtain more in-depth information. These are -
Environmental Searches
Has your prospective home been built on a landfill site, refuse dump or former industrial premises which could be letting out toxic emissions? Are you aware that if not discovered it could be your responsibility as the owner of the land to clear any contaminative substances.
- What will an Environmental Search reveal?
The search will look at the history of the property, in particular the history of the land on which the property has been built and will provide information on its former uses. Past industrial sites which may have contaminated the ground have already been converted into housing developments throughout the country. There are also 1000s of landfill or waste sites which have the potential for contamining and polluting land. Your seller does not need to inform you of the former use of the land or of any existing or potential contamination, even if the seller is aware of this.
- How is the information collected?
An Environmental specialist will collect the information from data providers such as Ordnance Survey and Environmental Agencies on contaminating and polluting processes, past and present, and in respect of landfill and waste treatment sites.
- How does this affect you if contaminative substances are revealed?
Provided that contracts have not been exchanged, you will have the choice to withdraw from the transaction before you are legally committed to purchase the property. If you proceed, with the transaction and contamination is revealed, not only may the value, saleability and possibly in some cases your health, be affected, but also you may be responsible, through new legislation, to clear the land of any contaminative substances - which could prove to be a very disruptive and expensive affair.
- How much does an Environmental Search cost?
The current search fee is £41.95, which we believe to be very reasonable for the peace of mind that the search will bring. What to do if you would like a search to be done? Speak to any member of our Residential Property Department.
Radon Gas
Radon is a radioactive gas that occurs naturally. It has no taste, smell or colour; in fact, special devices are needed to detect it. Radon is everywhere, usually at levels that pose negligible risk. We do not hold ourselves out as having any specialist knowledge or expertise in the particular field, but we have carried out some research in the matter by obtaining a Report from the National Radiological Protection Board. On the basis of the information which has been provided to us, it does not appear on current information available that Radon is a major problem in the West Midlands, Warwickshire and Leicestershire, although naturally this is a matter upon which you must form your own personal opinion.
It seems that about 100,000 homes in England, almost 0.5% of the total housing stock of 19 million, have Radon Gas levels above the Government Action level of 200 becquerels per equal metre of air. This estimate is given in a Report for the Department of the Environment published in 1992 by the National Radiological Protection Board. The average level of indoor Radon in England, 21 becquerels per cubic metre, is apparently relatively low compared to an estimated world average of 40 becquerels per cubic metre. However, homes with Radon levels 100 times this value, over 2000 becquerels per cubic metre, haves been found in some parts of the country.
Most of the measurements and most of the high Radon results are in Cornwall and Devon, which are regarded by the National Radiological Protection Board as Radon affected areas. Derbyshire, Northamptonshire and Somerset at the next most affected counties, and there are some indications of high levels elsewhere, but the major population centres have, on the whole, low Radon levels.
The data provided by the National Radiological Protection Board suggests that in the West Midlands the average Radon is between 16 and 23 becquerels per cubic metre of air, whilst in Warwickshire it is between 38 and 31, and in Leicestershire between 21 and 43. These figures are based upon statistics provided by the National Radiological Protection Board in 1992.
The Board's general advice to house purchasers is not to let the matter of Radon influence their choice of a place to live, but the Board do offer a measurement service to householders, and are able to supply Radon detectors for use in dwellings and to undertake subsequent analysis. Householders or prospective purchasers who are concerned about this subject should write to the National Radiological Protection Board, Chilton, Didcot, Oxfordshire OX11 0RQ - in areas where the Board consider measurements are not necessary, there is a standard fee for the supply of two detectors, subsequent analysis and the reporting of the result
Radon is a radioactive gas that occurs naturally. It has no taste, smell or colour; in fact, special devices are needed to detect it. Radon is everywhere, usually at levels that pose negligible risk. We do not hold ourselves out as having any specialist knowledge or expertise in the particular field, but we have carried out some research in the matter by obtaining a Report from the National Radiological Protection Board. On the basis of the information which has been provided to us, it does not appear on current information available that Radon is a major problem in the West Midlands, Warwickshire and Leicestershire, although naturally this is a matter upon which you must form your own personal opinion.
Plan Search
The Local Search, one of the mandatory searches carried out against a property when you purchase, is specific to the property you are purchasing and does not reveal any information as to other activities in the area, such as planning applications for residential or commercial developments in the vicinity to the property you are intending to purchase. This information may only come to your knowledge after purchase.
It is possible to carry out a Plan Search at a cost of £32.90, which will provide more local information as to plans and proposals for the area.
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Part Exchanges
The main type of part-exchange is where a property developer allows a part-exchange of your property on a brand new home. The normal offer is around 90-95% of the market value of your property, but there is no chain, a guaranteed sale and no estate agents to pay.
To be eligible you must be a homeowner looking to purchase a new build property. The developer will arrange for independent valuations of your existing home and make you an offer based on their suggestions. Once this has been agreed between you and the developer, and your property has received satisfactory surveys, the developer becomes your buyer.
We have experience of dealing with developer's documentation and can help you every step of the way.
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Relocation Work
Our Residential Property Department has many years experience in acting for clients relocating to this area. As local Solicitors we know the area very well and in addition to providing a first class legal service we are able to provide further assistance to clients relocating to our area.
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Re-mortgaging
As mortgage products available from time to time may provide more attractive interest rates, you may decide to change your mortgage lender. We have vast experience in dealing with re-mortgages including the repayment of your existing mortgage and registration of your new mortgage.
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Residential Lettings (Landlord or Tenant) - Tenancy Agreements
A tenancy agreement is a contract between a landlord and a tenant. The agreement gives certain rights to both landlord and tenant, ie. the tenant's right to occupy the accommodation and the landlord’s right to receive rent for letting the accommodation.
The landlord and the tenant may have made arrangements about the tenancy, and these will be part of the tenancy agreement as long as they do not conflict with law. Both landlord and tenant have rights and responsibilities given by law.
The tenancy agreement can give more than statutory rights, but cannot give less than statutory rights. If a term in the tenancy agreement gives either the landlord or the tenant less than your statutory rights, that term cannot be enforced. These are rights given by law or arrangements established by custom and practice.
We have experience with the preparation of tenancy agreements tailored to specific requirements.
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Shared Ownership
Shared Ownership purchasers acquire a lease, for which they pay a premium representing a percentage of the market value of the property, and rent in respect of the remainder. They may be able to make further capital payments (which will increase their share and reduce the rent payable) and ultimately to acquire the freehold.
Shared ownership buyers are generally first time buyers. We have the experience to assist first time buyers with all the documentation involved in shared ownership schemes and explain the procedure in plain english.
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Stamp Duty and Acceptable Fixtures and Fittings
The Stamp Duty thresholds are as follows -
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£0-£175,000 = 0% (this may be reduced to £125,000 on 31.12.2009)
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over £175,000 - £250,000 = 1%
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over £250,000 - £500,000 = 3%
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over £500,000 = 4%
In a small number of areas ("designated areas") no stamp duty is payable up to £150,000.
Where the consideration for the conveyance or transfer on sale of a property includes an amount attributed by the parties to fixtures and fittings, that amount will not normally be charged to stamp duty provided the fixtures and fittings pass by delivery and are not covered in the document.
Case law provides that where assets of different character are agreed to be sold for one consideration for the whole, any apportionment between the chargeable and non-chargeable property must be a bona fide one. This is taken to mean that it must be based on the commercial value of the property concerned.
A contract for sale based on a false apportionment may be unenforceable because of its improper intent and can therefore have more far reaching consequences. In addition, the Inland Revenue may treat such a contract as an attempted fraud on the Revenue, which is a criminal offence.
The Stamp Office of the Inland Revenue reports that during in recent years, there has been a steady increase in the number of cases where the amount of consideration attributed to items claimed to be fixtures and fittings is more than a small percentage of the total consideration. Apparently, but not surprisingly, this is especially the case where this brings the chargeable amount just below the £250,000 or £500,000 thresholds.
Warning from The Stamp Office
The Stamp Office has warned that in cases where it appears that an excessive amount of the consideration has been artifically attributed to non-chargeable items, a full inventory and breakdown of the consideration will be required by the Stamp Office.
The Stamp Office does not provide a comprehensive list of items which are accepted as fixtures and fittings, since many cases need to be considered on their own merits and case law is evolving in this area all the time. However, we are advised that items which will generally be accepted as fixtures and fittings include - carpets, curtains, light shades, pot plants, free-standing kitchen white goods and portable electric/gas fires.
Items which are generally unacceptable are - fitted kitchen cabinets and cupboards, fitted kitchen white goods, fitted bathroom sanitary ware, central heating systems, plants growing in the soil, central heating systems and gas fires connected to a piped gas supply.
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Town and County Planning
Town and Country Planning is the land use planning system the Governments use to balance economic development and environmental quality. Each country of the United Kingdom has its own planning system that is responsible for town and country planning.
The requirement to obtain planning permission extends not only to new construction, but also in substantive changes of use of a property. There are various 'use classes', and change of use to a different use class generally requires Planning permission. The main classes affecting residential property are C2: residential institutions and C3: dwellinghouses. We can assist with guiding you through the planning laws.
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Transfer of Equity
Where there has been a divorce or separation - or where there is some other adjustment in your property affairs - we can process the necessary documents to transfer equity from joint names to a sole name or from a sole name to joint names and can help with any associated mortgages. We can explain the procedures in a clear and sensible language and advise about the different types of joint ownership.
It is also necessary to be aware of the implications of transferring a property from sole name to joint names including tax and insolvency implications. We will be happy to discuss these implications so that you are aware of future implications of such a transfer.
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Valuations and Surveys
A Mortgage Valuation
Your lender (bank, building society or other institution) will require a mortgage valuation and will either arrange this to be carried out by its in-house survey department, or alternatively, will instruct a local chartered surveyor to do this. This report will be for valuation purposes only, to satisfy the lender that the property is apparently worth at least the amount of the proposed mortgage loan.
The report will probably cover the age and type of property, construction and general state of repair, and any serious apparent defects. However, such a report is very limited in its scope, and is prepared for the benefit of the lender for the sole purpose of establishing that the value of the property is not less than the amount of the loan (which is often very different from the purchase price), and in our view a buyer should always consider commissioning their own more comprehensive survey, either a House or Flat Buyer's Report and Valuation or a Full Structural Survey.
For an additional fee, it may be possible to arrange for the lender's valuer to carry out the more detailed survey and report for the borrower at the same time as the mortgage valuation, which may be less expensive than commissioning another surveyor to carry out a separate inspection. A typical mortgage valuation will involve an inspection of no more than 20 minutes
House or Flat Buyer's Report and Valuation
This is a "middle of the range" report, is a detailed and economical report on the condition of a house or flat extending to some 7/8 pages and includes a valuation. The Surveyor will inspect the main structure including the roof space, if it is accessible, and will take moisture-level readings. In the case of a leasehold flat, the Flat Buyer's Report and Valuation will also cover the condition of common parts and services such as central heating. A typical House or Flat Buyer's Report and Valuation will usually involve inspection of an hour's duration.
Full Structural Survey
This is particularly useful for old or large properties, but should not be discounted in other cases. The surveyor will report on everything that is visible. The outside of the roof will be examined and a sample of floorboard will be taken up, where practicable. The survey will cover the structure of the building, outbuildings, nearby trees that may cause damage, and water services and drainage. The surveyor may suggest that you have further tests, for example, if wet or dry rot is suspected, or a structural engineer's report, if structural problems are detected. A full structural survey may involve an inspection lasting some 2-3 hours, or more in some circumstances
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Further information
For further advice please contact :
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