Residential Property newsletter

Residential Property newsletter
www.henmansllp.co.uk
May 2012
Meet the team
On 2 April 2012, Lesley Pollock became the new head of our residential property team. She is assisted by Kristal Dales and Charlotte O’Driscoll.
Charlotte is currently enjoying maternity leave, and we congratulate her on the safe arrival of the latest addition to her family. Helen Dodd has
recently joined the team and will be with us until Charlotte’s return at the end of the summer.
Lesley Pollock has been a partner in Henmans property department since 2008. She is very experienced, having qualified
as a solicitor in 1980, since when she has always dealt with property transactions. Lesley has lived in Oxfordshire for
more than 35 years and is well-known locally for founding the Thames Valley branch of the national Association of
Women in Property. A home lover and keen gardener, she lists her other interests as skiing and hockey.
Lesley Pollock
Partner and Head of
Residential Property
Helen Dodd
Consultant
Described by one of her clients as “very knowledgeable, tenacious commercial and personable” Lesley says “having been
in the business for such a long time, I know the value of common sense solutions to legal problems. Buying a home is
probably the greatest and most satisfying investment you will ever make. Moving house is however unfortunately one
of the most stressful times in your life. Our job is to use our experience to make sure that any problems that arise are
resolved with as little disruption as we can manage.”
Helen Dodd joined the residential property
team at Henmans on 25 March 2012 as a
consultant solicitor. Helen became a solicitor
in 1997 and has considerable experience
in residential and commercial property
matters. She was previously a partner with
Band Hatton, before deciding to run her own
business. Helen is a keen theatre-goer and
also enjoys films and music. She also loves
travel and is an avid cyclist. Helen’s normal
hours are Monday, Wednesday, Thursday and
Friday 9.30am until 4pm.
Congratulations
Kristal Dales has been a legal assistant in the
team since 2010 and has recently passed with
merit the penultimate set of the Council for
Licensed Conveyancers exams. Kristal now
has just one set of exams to go and will be
taking them later this year.
Kristal Dales
Property Assistant
Conveyancing Quality Scheme accreditation
We are proud to announce that we are one of the first firms of
solicitors in the country to achieve accreditation under the Law
Society’s Conveyancing Quality Scheme (CQS). The Conveyancing
Quality Scheme (CQS) provides a recognised quality standard for
residential conveyancing practices. The scheme is intended to create a
trusted community which will deter fraud and drive up standards based
upon:
• integrity of our people
• good practice management standards.
• adherence to prudent and efficient conveyancing procedures
through the Law Society protocol.
• obligations to ensure staff are fully trained and up to date
• adoption of the Law Society protocol in all residential
conveyancing transactions
• clarity of communications
• transparency of costs
• annual reaccreditation
The advantages for you are:
• the protocol is designed to make transactions smoother and more
efficient
• the quality of our service has been independently tested
• you can rely on us
To achieve accreditation, we went through a rigorous process and we
are subject to a number of obligations, including:
Henmans LLP. Regulated by the Solicitors’ Regulation Authority
For more advice on the topics in this newsletter, please contact:
5000 Oxford Business Park South
Lesley Pollock
Oxford OX4 2BH
Partner and head of residential property
Tel: 01865 781000
lesley.pollock@henmansllp.co.uk
Is your flat still saleable – how long
does your lease have left to run?
Budget 2012 and Stamp duty land
tax update
Did you know that:
The Stamp Duty Land Tax “holiday” for first time buyers buying
properties with a consideration below £250,000 came to an end on
25 March 2012. In the budget on 21 March 2012, the Chancellor
increased rates for high value properties and introduced further
measures intended to clamp down on Stamp Duty Land Tax schemes.
• as the length of time left to run on your lease diminishes, it can
affect the saleability of your flat
• if you are a qualifying tenant you probably have the right to
require the landlord to grant you a lease extension
• you and your fellow flat owners may be able to acquire the
freehold
• the price for a lease extension or freehold acquisition increases
significantly once the lease has less than 80 years left to run
The rules are complex, especially in relation to valuation of the price
you will have to pay for a lease extension or freehold acquisition, but if
you have owned your flat for more than two years and are considering
selling it, you should certainly take our advice before putting the flat
on the market. Even if you do not proceed with the enfranchisement,
serving the right notice can enable you to assign the benefit to a
purchaser, who would otherwise have to wait two years before being
able to enfranchise.
Please contact Lesley Pollock on 01865 781000 or
lesley.pollock@henmansllp.co.uk for further information.
Stamp Duty Land Tax is a tax payable on any purchase for more
than £125,000. The tax is payable by the buyer – not the seller.
Exemptions apply to residential properties in disadvantaged areas
up to £150,000 and new zero carbon homes up to £500,000 until 30
September 2012 (for purchase prices in excess of £500,000 in this
category, the tax is reduced by £15,000).
If the purchase price exceeds £125,000 but is not more than £250,000
then the tax payable is 1% of the purchase price.
Above £250,000 and up to £500,000 the tax is 3%
Above £500,000 and up to £1,000,000 the tax is 4%
Above £1,000,000 and up to £2,000,000 the tax is 5%
Above £2,000,000 the tax is 7% but rules apply to increase the rate to
15% where acquired by certain persons other than individuals.
Joint owners beware!
The recent case of Jones v Kernott [2011] underlines the importance of entering into a declaration of trust to confirm the shares of the owners in
jointly held property. In that case, property was bought in the joint names of a cohabitating couple who were both responsible for the mortgage.
They did not however enter into a declaration to set out the terms of their ownership. When they split up Mr Kernott stopped paying the
mortgage. 18 years later, the question of their shares in the house came before the Supreme Court. It was held that there is a presumption that
joint owners hold in equal shares. That presumption can though be displaced by showing that the parties had a different common intention when
they bought the property, or that they later formed the common intention that their respective shares would change. The starting point is for the
Court to try and work out what can be inferred from the parties’ conduct. If this does not yield results then the Court may impute an intention
that has a fair outcome having regard to the whole course of dealings between the parties. In Jones v Kernott, the Court declared that Mr Kernott’s
share in the property was 10%.
A declaration of trust is a straight forward document which, if it is prepared at the time of a purchase by joint owners, avoids uncertainty and heavy
legal bills if the matter of the ownership of shares has later to be determined by the court.
Have you made your Will?
Do you have peace of mind that your property and assets will pass in accordance with your
wishes on your death? Please ask for our wills pack which includes an information sheet, a list
of our fixed price will charges and a questionnaire for you to complete, to assist you to assess
your situation and decide whether you need a new will. The wills pack can be requested on
privateclientenquiry@henmans.co.uk. Download our frequently asked questions on wills
http://www.henmansllp.co.uk/wills(2)
Our private client team can also help you with Inheritance Tax planning. Please contact
Nigel Roots (nigel.roots@henmansllp.co.uk) or Jane Maitland (jane.maitland@henmansllp.
The firm is not authorised under the Financial Services & Markets Act 2000 but we are able in certain circumstances to offer a limited range of investment services to
clients because we are members of the Solicitors’ Regulation Authority. We can provide these investment services if they are a part of the professional services we are
engaged to provide. Professional advice should always be sought for assistance in specific areas of the law, and we cannot accept any responsibility for any action
based on these articles.