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Tag: Kintbury

Buying your freehold

Signing a document, to illustrate someone buying their freehold, having received legal advice from property solicitors in Hungerford

If you live in a leasehold flat and fulfil the relevant qualifying criteria, it is possible to purchase the freehold of the building from the current freeholder.

This will give you several advantages, including:

1. Control over the management of the building, including insurance, maintenance, repair and decoration;

2. Control over the charges you pay for the management of the building;

3. It is likely to increase the value of your property.

Before you proceed with a freehold purchase, you will need to discuss the matter in depth with the leaseholders of the other flats in your building and obtain a commitment as to those who are going to participate. This can be done by a “participation agreement”.

FREEHOLD PURCHASE PROCEDURE

Qualification

Check that you qualify. Briefly, you will need the building to be self-contained, or to be a self-contained part of a building; any non-residential parts should be less than 25%; 2 or more flats must be held by qualifying tenants; flats of qualifying tenants must be at least 2/3rd of total flats; and participating tenants must be not less than 50% of total flats.
Valuation

It is strongly recommended that you seek a valuation and advice from a suitably qualified surveyor. They will give you a suggested purchase price and any other pertinent valuation information.
Forming a company and organising the Participants

If there are more than two flats involved it is best to form a freehold company. We can arrange this for you. You should also set up a fund so that all participants can contribute towards the costs.
Notice

A notice must be served on the current freeholder of your right to buy the freehold, stating the offer price and giving at least 2 months for them to respond. This notice ought to be registered against the freehold title so that the freeholder cannot sell the building without notice to you.
Counter-Notice

The freeholder provides a counter-notice within the two month deadline giving the price it is willing to accept for the freehold.
Negotiations

If the freeholder’s price is not agreeable, negotiations commence, usually between the respective surveyors.
First Tier Tribunal (Property Chamber)

If no agreement can be reached, an application should be made to the Property Tribunal, within 6 months of the counter notice, for a determination of the purchase price.
Completion

Once an agreement is reached as to the price, funds will need to be collected from all participants and the purchase can be completed.
Costs

Under the relevant legislation, you will be responsible for your landlord’s reasonable costs. This is limited to legal and valuation costs i.e. the landlord’s valuation, legal costs of transferring the freehold and checking your right to buy the freehold. This is a brief overview of the process. Buying your freehold can be complex and we would strongly recommend seeking professional advice at an early stage.
Download this resource as a pdf

To discuss this and to obtain more information contact:
Julian Dickins or Deborah Wason at Dickins Hopgood Chidley Solicitors,
The Old School House, 42 High Street, Hungerford, Berkshire, RG17 0NF 01488 683555

Joint Ownership

Row of Cotswold cottages - illustrating legal advice for jointly owning a house, from property solicitors in Hungerford Berkshire

When two or more people are buying a property together, a decision needs to be made about how to own the property. There are two methods of joint ownership:

  • Joint Tenants: Each of you has an equal interest in the property and if one of you dies, the survivor will automatically inherit the whole of it.

  • Tenants in Common: Each of you has your own interest in the property, distinct from the other, which may be an equal or an unequal part. Your own share in the property would pass by your Will to whomsoever you choose. The amount of your share is usually based on your contribution towards the cost of the property or any work on it.

    • The method of ownership is important to consider in all cases, but particularly in certain circumstances:

    1. Where an unmarried couple is buying a property. The declaration made at the outset is the strongest evidence of intention in the event of a later dispute.

    2. Where you are making unequal contributions towards the purchase price and costs. The person contributing the larger amount of equity may wish to ensure that interest is protected in the event of sale of the property

    3. Where a third party (such as a parent) is contributing to the price or costs. The third party will be advised to obtain independent legal advice on the transaction and it is strongly recommended that an appropriate deed be drawn up setting out the respective interests or contributions of each party.

    4. Where you are buying the property as a buy to let investment. The method of ownership is likely to have tax implications which should be considered before the purchase.

    If any of these circumstances affect you, you must tell us before you purchase the property so we can ensure you receive the right advice and, if appropriate, enter into a declaration of trust. If there is no agreement between you at the outset, there may be problems in the event of separation, divorce or death and a division of the equity which does not truly reflect your intentions could result.

    Joint owners who wish to hold their property as tenants in common should consider entering into a declaration of trust to set out clearly the individual financial responsibilities for the property. Matters to consider are:

  • Who is responsible for the mortgage payments and in what proportions?
  • Who is responsible for the other outgoings (utilities, council tax etc.)?

  • Who is responsible for maintenance and repairs?

  • What happens if there is a change in those contributions?

  • What happens if one of the co-owners stops living at the property before it is sold?

  • What happens if one party wants to sell their share? Would the other party have a right to buy him or her out?

  • What happens if one of the co-owners dies?

    • We would also recommend that a restriction be placed on the property title to protect the interests of co-owners or third parties

    The law relating to joint ownership can be complicated and you may need to seek financial or tax advice before deciding what to do. Please speak with your conveyancer who will be able to refer you to a member of our private client team for further advice, if appropriate.

    Download this resource as a pdf

    To discuss this and to obtain more information contact:
    Dickins Hopgood Chidley Solicitors,
    The Old School House, 42 High Street, Hungerford, Berkshire, RG17 0NF 01488 683555

    Conveyancing process – flowchart for sellers

    Initial Contact

    When you get in touch with us, we will discuss your
    requirements and provide you with a fee for the work involved.
    We will send you a client care letter, setting out our commitments to you and our terms of business, and some property information forms for completion.
    Instructions

    We will receive a memorandum of sale from the estate
    agents, giving us details of the offer, the buyer’s solicitors’ details and any special conditions.

    We will contact the buyer’s solicitors.
    Contract Package

    We will prepare a draft contract and obtain copies of the Land Registry title, and send these together with information forms to the buyer’s solicitors.

    If the property is a leasehold property, we will apply to the freeholder or management company for details relating to service charge, maintenance, insurance etc.
    Replies to Enquiries

    The buyer’s solicitor will carry out searches and the buyer may carry out a survey.

    When they have all of this, they will send us enquiries and we will go through these with you and rep
    Exchange of Contracts

    When you and the buyer are ready, contracts can be exchanged. This is the point at which the transaction becomes legally binding on both of you. The buyer will provide a deposit, which is usually 10% of the purchase price unless otherwise agreed. At this stage the completion date is set.
    Conveyancing process - How to sell a property, from Dickins Hopgood Chidley solicitors - illustrated with a picture of a black front door.
    Completion Day

    When you have moved out of the property you should leave at least one set of keys with the estate agent and we will advise them when keys may be released.

    When we receive the completion money from the buyer, we will complete the transfer documents, arrange to redeem any mortgages, pay the estate agent and our fees and send you the net proceeds.
    Preparation for Completion

    The completion date, agreed on exchange, is the date by which you should move out of the property. You will need to ensure your removal arrangements have been made so that you will be able to vacate the property by the time we advise, usually around lunchtime.

    We will send you a completion statement at this stage, advising you of the net sale proceeds. You will also need to sign a transfer deed which we hand over to the buyer on completion.
    Download this resource as a pdf

    To discuss this and to obtain more information contact:
    Dickins Hopgood Chidley Solicitors,
    The Old School House, 42 High Street, Hungerford, Berkshire, RG17 0NF 01488 683555

    Lasting Powers of Attorney

    Berkshire solicitors, a person signing a document giving someone lasting powers of attorney

    A Lasting Power of Attorney (“LPA”) allows you to appoint an attorney to look after your affairs if you become incapable of doing so. It can only be made in advance, by a person who is still capable of making decisions.

    Why make a Lasting Power of Attorney?

    If no provision is made, and you lose capacity to make decisions for yourself, there would be no-one with legal authority to manage your affairs. The person wanting to help you with this task would have to apply to the Court of Protection for a deputyship order. Whilst we are happy to assist with this, it is a time-consuming and expensive process, and means that your appointee can do nothing until a Court Order is made. The person wishing to be appointed may not be the one you would have chosen!

    If an attorney has been appointed in advance, and the document registered, they may carry out your wishes and act on your behalf without delay or further formality.

    A Lasting Power of Attorney also helps relieve those close to you of responsibility for trying to guess what you would have wanted, and will help in the situation of there being conflicting views within a family, or indifference, as to the best way to care for you if you are unable to look after yourself.

    What is a Lasting Power of Attorney?

    The Lasting Power of Attorney is a legal document which allows decision making to be delegated to your chosen attorney or attorneys, so that they can make decisions for you when you are unable to do so. attorney or attorneys, so that they can make decisions for you when you are unable to do so.

    There are two types of Lasting Powers of Attorney:-

    1. Property and Financial Affairs Lasting Powers of Attorney

    A Property and Financial Affairs LPA enables your attorney to manage and sell your property, manage your bank accounts and investments, and pay bills on your behalf.

    2. Health and Welfare Lasting Powers of Attorney

    A Health and Welfare LPA enables you to set out how you want to be cared for if you lose your mental capacity. It covers medical treatment, where you live, what sort of care you receive, and day-to-day decisions about your welfare.

    How do I make a Lasting Power of Attorney?

    We will go through the forms with you and help you to decide what type of power of attorney is right for you, and the conditions you wish to place on it. When the Powers are created, an independent person has to certify that you are signing it of your own free will and that you understand what you are doing. We can do this if appropriate. In some circumstances, a Doctor may be asked to certify the LPA.

    The LPA then has to be registered with the Office of the Public Guardian before it can be used, even if the donor (the person making the LPA) still has mental capacity. As part of the registration process, at least one person can be notified of the LPA so that they can raise any concerns with the OPG. The registration process takes between 6 and 16 weeks, depending on the workload of the Office of the Public Guardian, so we recommend registering straight away, so that the LPA is available to be used as soon as it is needed.

    Download this resource as a pdf

    To discuss this and to obtain more information contact:
    Emily Payne at Dickins Hopgood Chidley Solicitors,
    The Old School House, 42 High Street, Hungerford, Berkshire, RG17 0NF 01488 683555