• Posted by admin
• 06 July 2012
• conveyancing, News, Property law

With effect from 2 April 2012  the maximum right to buy discount for council tenants has been increased to £75,000.

This constitutes a considerable change in policy by the present government. Previously, right to buy had become unattractive , by capping the amount of discounts according to location. In most of greater London for example the maximum discount was only £16,000.

The right to buy discount available depends on the amount of time the tenant has occupied the property. For freehold houses, the discount starts at 35% and increases at 1% per year to 60%. For leasehold flats the starting figure is 50%, rising to 70% at 2% per annum. For example, if you wanted to buy a flat worth £200,000 and had been a public sector tenant for ten years, you would qualify for a 60 per cent discount (£120,000). However, the maximum discount is £75,000. This means that if the flat was worth £200,000, you could buy it for £125,000. It is also important to realise that if the property is sold within 5 years of the right to buy then some of the discount will have to be repaid. More information on eligibility and discounts  can be found on the Direct Gov website.

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• Posted by admin
• 22 March 2012
• conveyancing, News, Property law

Following the recent budget announcements there are changes to Stamp Duty Land Tax for 2012 and beyond.

As expected the first time buyers relief for purchases up to £250,000 has been withdrawn. All other rates and bands remain the same for both residential and non- residential property. However, a new rate and band has been introduced at 7% for residential properties over £2 Million pounds. There has also been a tightening of Stamp Duty avoidance for such properties (see note (2) below)

Notes:

(1) From Mid July 2011 onwards, bulk purchases of residential property will only be subject to Stamp Duty Land Tax at the average value of each property rather than the total value of all the properties being purchased in bulk. See example here.

(2) Residential properties over £2,000,000 and purchased by "non natural persons" i.e. a  limited company, will be subject to 15% stamp duty from 22 Mar 2012. This closes the previous 'loophole' where property could be transferred into a limited company therefore becoming a company asset. The property could then be purchased by buying the companies shares which only attracted 0.5% stamp duty rather than 5% (2011). This article gives interesting insight into how these changes might affect the buoyant Central London housing Market.

HMRC Rates and Allowances 2012

• Posted by admin
• 16 May 2011
• conveyancing, News, Property law

Most have heard about the rise in identity theft which was recently highlighed by a report in the Observer online and hopefully we are all taking steps to minimize the chances of it occurring. But many will not be aware of Property Title Fraud where fraudsters also ‘steal’ legitimate property titles.
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• Posted by admin
• 27 April 2011
• Blog, conveyancing, News, Property law

This will very much depend on whether the title to your property is registered or unregistered. If your land is Registered Land.....
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• Posted by admin
• 02 April 2011
• Blog, conveyancing

At the present time, if you were to purchase a number of properties from the same Seller, whether at the same time or at different times, then these purchases, for Stamp Duty Land Tax (SDLT) purposes, would be considered “linked” transactions.  This means that the total value of the properties purchased would be added together and SDLT would be paid upon the aggregate value - total purchase price.

The Government announced in the recent budget that it planned to change the way SDLT was charged on such transactions by taking the mean value of the properties – their individual value. The proposed changes are due to take effect with the introduction of the Finance Act 2011 in mid July 2011.
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• Posted by admin
• 21 March 2011
• Blog, conveyancing

Stamp Duty Land Tax (SDLT) in the UK  is a tax paid by purchasers on the purchase price of a property.

Properties valued at below £125,000 are below the SDLT threshold and no SDLT is payable upon the purchase price.

For properties valued £125,001 - £250,000 SDLT is payable at 1% of the full purchase price and not just the amount over the £125,000 threshold.   From £250,001 - £500,000 the rate is 3%, from £500,001 - £1,000,000 it is 4% and above £1,000,001 it is 5%.

For more detailed information on current Stamp Duty Tax bands click here (also includes download of all HMRC tax rates & allowances for 2011-2012)

Unlike other taxes, eg income tax there is no gradient to the tax payable.  Once you are in the higher tax bracket for SDLT the tax is paid on the full purchase price.   This  “slab” taxation method is held by many to be unfair and to distort the property market.

The 1808 Campaign was setup to campaign for Government reform of SDLT.   It is supported by many property professionals including; the National Association of Estate Agents (NAEA), Association of Residential Letting Agents (ARLA) and the Council of Mortgage Lenders (CML), to name but a few.

If you would like more information on the history of SDLT and/or to see a reform of  SDLT visit the “1808 Campaign to reform Stamp Duty” website to register your support.

This article is intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.

• Posted by admin
• 14 March 2011
• Blog, conveyancing, Property law

Traditionally, first time buyers have been the foundation upon which the housing market has been based.  Without the first time buyer at the bottom of the property ladder, those already on the way up the rungs had been unable to continue to move on up.

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• Posted by admin
• 17 February 2011
• Blog, conveyancing, Property law

This Weeks “Hot” Property & Planning News has to be the story reported in the Daily Mail of the Pensioner from Crewkerne, Somerset, who painted her Grade II Listed Cottage a pale shade of blue to compliment her garden. Unfortunately for the Pensioner, there were those who did not share her colour preference and following complaints to the Council she was issued with an Enforcement Order to return the Cottage to its original colour and gained a criminal conviction. For the full story Click here

The moral of the story has to be that if you own, or are thinking of buying, a Listed Building which you wish to alter in any way, you must ensure, before commencing any work, that planning permission has been granted. The Planning requirements for a Listed Building are far more onerous and apply to any alterations, internal and external, including the colour that you can paint a traditional Grade II Listed Cottage!

If you require further information on how Newnham & Jordan Solicitors can assist with planning issues we would be pleased to have an informal chat with you over the phone or in person.  So why not contact us now for "Coffee & Chat" to see how we can help?

This article is intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.

• Posted by admin
• 07 February 2011
• Blog, conveyancing, Property law

With a  housing market that is still trying to recover from the 2007 crash you could pick up a real bargain at Auction.  According  to a recent Savills report many properties are selling for 20% below market value.   You will need to be aware of the many pitfalls when buying at Auction and, if you are new to it then it is recommended that you go and "sit" in on a few Auctions, with no intention of buying,  just to get a "feel" for it.   Although bargains are certainly to be had, it is also possible to get caught up in a "bidding" frenzy and pay way over the odds, or purchase a property which is a legal or structural nightmare.  You need to keep in mind that if you are successful in your bid, then a contract to purchase is entered into on the day and a 10% deposit is payable. You will normally have one month from the date of the Auction in which to complete the purchase or lose your deposit.  It is therefore vital that you do your homework well prior to attending an Auction at which you intend to bid.

If having attended an auction or two you decide that you'd like to have a go for real, then here's our short guide to help you through the process :

• Obtain the Auction Brochure well in advance of the day.
• Short-list a couple of "Lots" that you are interested in and look promising.
• Obtain an Auction Pack in respect of all the Lots that you like - there may be a fee for copying the Auction Pack
• Get the Auction Pack reviewed by an experienced Property Lawyer to ensure that the property's legal title is satisfactory and there are no onerous covenants, restrictions or third party rights over the land that would affect the future prospects that you have in mind for the property - the Lawyer will require a  fee in respect of the review, but it will be money well spent to ensure that you do not buy a "nightmare" property from a legal aspect.
• Go and view the property.  We would also recommend having a full survey carried out.  There will be a fee for this payable to the Surveyor.  Again, this will be money well spent to ensure that you are not buying a property with expensive structural defects or, if you decide to proceed anyway, that the price reflects the cost of the work required to rectify the defects.
• Having received reports from your Legal Adviser and Surveyor you should take advice from an independent Valuer and decide upon the maximum price you are prepared to pay for the property.   Keep in mind any issues that may have been revealed by the legal review and survey.  If you decide to bid on the day, stick to the maximum price you decided on and don't let your heart, or a bidding frenzy, let you pay over the odds!

Happy Bidding!!

Newnham & Jordan can review your auction pack and provide you with a full title report on the legal matters affecting the title to the property.  Why not contact us now for an informal chat over the phone or in person over coffee.

This article is intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.