Property FAQs

On 6 April 2007 the law relating to tenancy deposits changed. The changes were implemented to protect tenants from the scenario that you have described.

This change means that deposits received, relating to new Assured Shorthold Tenancies or renewals of existing tenancies, must be safeguarded by the landlord in accordance with a Government approved deposit scheme.

Any deposit received by the landlord after 6 April 2007 must be safeguarded within 14 days of receipt. Within the same 14 days the landlord must also provide the tenant with prescribed information about the deposit and the scheme that has been used.

If your landlord has to failed comply with the above provisions you can make a claim through the Court for the return of your deposit. The legislation states that if the landlord has failed to comply with the law, then the Court must make an Order that the landlord pays the tenant an amount equal to three times the deposit, within 14 days.

If your landlord has complied with the provisions, your deposit should be protected with one of the approved schemes and the information provided to you will inform you what you need to do with regard to the release of your deposit. If there is a dispute about how the deposit should be divided, the scheme will hold the deposit until the dispute is resolved. The approved schemes will have their own dispute resolutions service which can be used by both the landlord and tenant.

In England and Wales a house sale is not binding until exchange of contracts has taken place. Upon exchange of contracts the completion date is confirmed. Your conveyancing solicitor will ask you to sign the Standard Conditions of Sale (4th Edition) Contract and ask you to give authority to exchange. The buyer will sign his part of the Contract with his own solicitor.

Exchange is a telephone process between the conveyancing solicitors in the chain. You do not have to be present on exchange. Once exchange has taken place then the sale transaction is binding and your completion date is fixed. The buyers deposit will be forwarded to your solicitor for your solicitor to retain until completion. If there is short time period between exchange and completion then the deposit will be “held to order” by the buyers solicitor. The Contract will include a contract rate clause which can be applied in the event of default of the completion date. The default party can be asked to pay a daily rate of interest 4% above the bank base rate.

Only once exchanged the transaction is binding and neither party may “pull out”. Upon receipt of confirmation the transaction has exchanged from your solicitor you can book your removal van.

The completion date is the day money passes between the parties' solicitors and the keys are released. The seller must clear and clean the property and leave with keys with the Estate Agent by 2 p.m, unless this time has been amended in the contract, on the day of completion. The Estate Agent will release keys to the buyer direct upon receipt of confirmation from your solicitor the sale monies have been received.

Our sale conveyancing fees are competitive and are based on the value of the property you are selling. For a fast, efficient and cost effective service, please do not hesitate to contact Wilkin Chapman LLP for a sale quotation.

If you are buying a property jointly you will need to select the method of joint ownership that you both require. There are two main ways of owning a property jointly:-

1. Joint Tenants – this is a legal term which means that the property belongs to both parties and on the death of either party their share will automatically pass to the survivor. In the event of a sale the net sale proceeds will be divided equally. Any instructions left in a Will do not overrule this situation or
2. Tenants in Common – the effect of holding a property as tenants in common is that each party holds a fixed share which can pass under their Will or on an intestacy to the people entitled to their estate. It is possible to specify different proportions for example 75/25 or 60/40 for this method of joint ownership.

Therefore if you are contributing towards the cost of the purchase of the property in unequal shares you may wish to elect to hold the property as tenants in common in such proportions as reflect your individual contributions. It is absolutely essential that you both make Wills to cover this situation however.

It is possible to specify more complex arrangements in a separate document known as a Declaration of Trust.

If you already own a property as joint tenants and your circumstances change you can convert a joint tenancy to a tenancy in common by serving a formal notice on the other joint owner or owners. This would not of itself affect the shares in which the property is owned however but merely the method of joint ownership.

You should discuss any queries you may have with a solicitor at an early stage of the transaction. We will be able to offer you advice and assistance in considering these matters.

An 'inflation linked' rent review will often use RPI as a convenient multiplier on the rent previously paid, as it is a readily available and widely used figure. This can be advantageous for a tenant in times where inflation is low but can also be risky if the lease is for a longer term and inflation increases, as the level of rent could end up bearing no relation to the 'going rate' rental figure given that RPI has no direct link with property prices.

On longer leases in most circumstances an open market rent will be more appropriate and more usually used. A surveyor will provide a valuation on terms agreed in the rent review clause, sometimes based on the lease itself but often based on what rent would be payable under a hypothetical lease similar to the actual lease. The basis for the valuation is agreed between the parties when the lease is entered into. A number of assumptions and disregards will usually be listed to assist with the valuation and for example, to ensure that the tenant does not end up paying more rent as a result of improvements it has carried out at the premises or to allow the landlord to impose onerous obligations on the tenant without suffering a decreased rental figure.

The provisions for rent review are some of the most important in the lease and professional advice should be taken as the suitability of any given clause will depend on the individual circumstances.

As the Seller has taken the property off the market the Seller can only remarket using the same HIP as long as they do so within twelve months of the first date the property was marketed. If the twelve month period has expired then a new HIP will be required.

If the sale transaction has fallen through, you can remarket with the same HIP provided the remarketing starts within 28 days of the sale falling through.

The Energy Performance Certificate (EPC) in the original HIP will still be valid as residential EPC's last for three years. There will be no need to up date this and this will be reflected in the price of a new HIP.

On 6 April 2009 the HIP law changed meaning a Seller cannot advertise a property for sale privately or through an Estate Agent unless a HIP is available and the HIP documents have been commissioned. A new form, known as a Property Information Questionnaire (PIQ) has been added to the HIP. If your property has been continually marketed you do not need add this to your HIP.

The Local and Drainage searches contained in the original HIP have a life span of six months to a Buyer. If the property has been continually marketed with a HIP and the searches are “out of date” then the Buyers' Solicitor will update the searches. For continually marketed properties, there will be no need to add a PIQ or renew the searches. However, where the property has been removed from the market for sale as above, a new Local and Drainage search will be required for the HIP.

Please contact Wilkin Chapman LLP for a HIP quotation if you require further advice on renewing your HIP. If you already have an EPC our normal HIP charges will be reduced. It is possible for us to prepare a Mini Hip to forward to your Estate Agent to enable your property to be marketed quickly and for the remaining HIP documents (the searches) to be forwarded within 28 days.

The government introduced legislation in 2007 which made it a legal requirement for anybody offering a property for sale on the open market to provide a Home Information Pack (HIP) to be made available to potential purchasers.

Initially the seller was only obliged to commence preparation of the HIP before being able to advertise a property for sale but with effect from 6th April 2009 this has now changed.

As from this date it is unlawful for the marketing of a property to begin unless a HIP is available and all the required HIP documents are commissioned and paid for or arrangements for payment made. The following documents are a minimum requirement before marketing can begin; Index, Property Information Questionnaire, Energy Performance Certificate or Predicted Energy Assessment, Sustainability Certificate (new homes only), Sale Statement and Land Registry Documents.

The Property Information Questionnaire form is a new requirement and is a tick box form in which the seller provides answers to certain standard questions regarding the property.

All other required documents e.g. Local Property Searches and Lease (where applicable) should be added to the HIP as soon as they are available and must be included in the HIP within 28 days of the first point of marketing.

This means if you are intending to advertise your property for sale either privately or through an estate agent you will need to have the minimum HIP documentation as set out above available for inspection by any potential purchaser.

Our competitively priced HIPs start from £199 + VAT and we aim to complete your HIP within 7 days of instruction. For a fast, efficient and cost effective service, please don't hesitate to contact Wilkin Chapman for a quotation.

Due to the slow down in the housing market, many home owners are staying put and renovating their homes rather than trying to move. Improving and enhancing your home could make your property more attractive in a buyer's market.

There are a number of rules and regulations in relation to a refurbishment project and to fall foul of these can lead to problems when the house is later sold.

If you are intending to change the exterior of your property, then it is likely that planning permission will be needed. You must ensure any conditions attached by the planning authority are complied with. Any structural alterations will need building regulation consent and it is important that the local authority carry out a final inspection and sign off the work done with a Certificate of Completion. If the work is not signed off, it will lead to extra delays and expense when you decide to sell the property.

Home owners should be aware that even if major works are not involved, then building regulation consent may be needed. Unless the work is done by an appropriately qualified contractor who can provide the necessary certification, then building regulation consent may be needed for replacement glazing in windows and doors, alterations to electrical wiring and the installation of a new boiler.

It is sensible to keep copies of all required planning permissions and building regulation consents and it is even more important to keep letters and documents showing that any relevant conditions have been observed.

When selling, it is worth remembering that most buyers need a mortgage and lenders have strict requirements. Solicitors will be instructed to make sure that all of the necessary consents and permissions are in place and obtaining retrospective consent to rectify this can take weeks, sometimes months to arrange.

When you signed the contract you agreed to buy at a price of £150,000 and that is what you are legally committed to do. It is not the builders fault that prices have dropped – after all if the house had increased in value (which is no doubt what you were gambling on) you would have been only too happy.

You would be best to ask your solicitor to negotiate with the builders and see if there is a deal to be done- for example some builders are offering interest free loans for 2 or 3 years in the hope that the market will pick up

If no deal can be done the builder may resell the house if you fail to complete and then sue you for the loss – so if the resale is at £125,000 the builder can issue proceedings against you for the £25,000 (less the deposit) plus court costs legal fees etc.

As it happens the worse off financially you are the less likely it is that the builder will sue – it would do no harm to tell the builder the truth about your financial position.

The legal position regarding the condition of a property which is being sold is generally that the buyer purchases the property as it stands and it is therefore the buyer's responsibility to check for themselves that the state and condition of the property is as they expect it to be.

Whilst your mortgage provider will undoubtedly require an inspection of its own to be carried out on the property; this inspection (commonly referred to as a Mortgage Valuation Report) is prepared purely for the lender's purposes and to establish whether in their opinion the property forms a good and marketable security. It is not carried out for the buyer's benefit and it is not in any way a structural survey or a guarantee that the property which you are purchasing is in good and proper order.

It is therefore always advisable to consider carefully whether you should commission your own more detailed survey report in this regard bearing in mind that you would not normally be entitled to any compensation from the seller if defects in the property are found after you have committed to purchase it. To save expense it may, in some cases, be possible to arrange with your lender for them to use your more detailed survey report for their purposes rather than them commission their own Mortgage Valuation Report. You would need to check these arrangements with your mortgage lender at the outset of the transaction.

You should note that a Surveyor's Report will not normally deal in detail with matters such as central heating, damp and timber problems and gas and electrical safety. It is therefore prudent to consider obtaining separate specialist reports on these aspects of the property and any other matters which you consider appropriate. You should, of course, ensure that all these reports are to hand before exchange of Contracts which is the point of legal commitment.

Your Solicitor will be able to offer you further advice and assistance in considering these matters and you should discuss the question of survey with your Solicitor at an early stage of the transaction.

As the credit crunch takes effect landlords are increasingly finding commercial tenants are falling into rent arrears. Dependent upon the terms of the lease these options are available to you.

• Forfeit the lease if the rent remains unpaid after a specific period (often 14 or 21 days from when it falls due). This brings the lease to an end. You can do this by simply taking physical possession (re-entering and securing the building so as to exclude the tenant) but great care needs to be taken to avoid a claim for damages by the tenant. n most cases it is preferable to apply to the court for forfeiture obtaining a Possession Order. You must ensure that the lease contains a right of forfeiture.
• Sue the tenant for recovery of rent arrears through the County Court.
• Serve a Statutory Demand on the tenant threatening bankruptcy/insolvency proceedings. However you may reduce your chances of receiving the arrears in full as, by bankrupting the tenant, you could become one of a number of unsecured creditors owed money.
• The common law remedy of distress dating back to the 13th century allows the Landlord to instruct Bailiffs without a Court Order to go into the premises and take goods as security for the debt. This option is not available if judgment for the outstanding sum has been obtained through the court. Whilst this may seem an easy option, rules must be strictly adhered to, and new legislation is expected soon which will change this procedure.

In the current economic climate consideration should be given to the ability to find a replacement tenant and the view may be that it is better to have the property occupied at a lower rent than empty. Any action taken against a tenant should be done so with caution and legal advice obtained to avoid any potential claims for damages from the tenant.

As part of the sale process the seller of the property will normally be required to complete a document known as a Fittings and Contents form. This form is basically a list of items such as carpets, curtains and other household goods and the seller will indicate on this form whether the relevant item is to be left and included in the sale, removed from the property on completion of the sale or if it is to be offered for sale separately in which case an asking price will normally be specified. A copy of this form should be available to you as a purchaser before you exchange contracts and legally commit yourself to the transaction. The Fittings and Contents form becomes part of the Sale Contract. You will therefore need to check carefully through the form to ensure that it accords with your understanding of the situation.

You should remember that (as with the house itself) you take any contents in their present state and condition only. The seller will not normally be offering any warranty as to the state and condition of these items. This means that for example if a washing machine is to be left and included in the sale price it is your responsibility as purchaser to check for yourself that the appliance works satisfactorily.

Disputes over the unexpected removal of fittings and contents do occur from time to time and it is therefore essential that you check that you have all the relevant information prior to exchange of contracts. Your solicitor will be able to offer you advice and assistance in considering these matters and you should discuss any queries you may have with your solicitor at an early stage of the transaction.

There are certain features of flat purchases which are different from the purchase of a traditional domestic freehold house. A flat will usually be leasehold as opposed to freehold and such leases tend to be from 99 to 999 years in length. Once the initial lease has been granted subsequent changes of ownership in the flat will normally be dealt with by a transfer of ownership of the remaining term of the Lease. It is therefore vitally important when buying a flat that you check that the unexpired term of the lease is adequate both from the point of view of valuation and for acceptability to a mortgage lender.

The legal format sometimes adopted for flat developments is that the freehold title is transferred to a management company. Each individual flat owner would normally have a share in the management company. An annual service charge will normally be payable by each individual flat owner to the management company to meet the cost of providing building insurance, maintenance of communal areas and car parking, etc and also to provide a reserve fund for major capital expenditure which may be required at the development from time to time. You should ensure when purchasing a flat that you are familiar with the service charge fee and are aware this fee may increase year on year. In addition to service charge an annual ground rent may be payable although this is often a fairly nominal sum.

The terms of the lease will inevitably contain various regulations, conditions and covenants regarding each individual flat owners use of the property. On any change of ownership of a flat, notice will normally need to be given to the landlord or management company under the terms of the lease.

This is only a brief summary of some of the common issues involved, proper legal advice should always be taken from a solicitor before embarking on the purchase of any property.

For the last 40 years house owners wanting to extend their house have been able to add on a small extension without the need for planning permission. “Small” has been defined as not more than 10% of the existing footprint. Anything larger has needed planning permission with the cost and delays that follow.

During September 2008 changes have been announced which apply to houses but not to flats. The single most important change is that the 10% rule goes and in its place if you want to extend a single storey extension will be permitted up to 4 metres deep if your house is detached and a 3 metre two storey extension will be permitted on any type of property.

Loft conversions for terraced houses will be permitted and will enable the roof space to be extended by up to 40 cubic metres. Roof extensions for any other property will be permitted by up to 50 cubic metres which would ordinarily be sufficient for at least a bedroom and a bathroom. All these changes will be allowed without the need for planning permission, although building regulation consents will still apply.

One unintended change which may not be welcome by everyone is that without the need for a planning application to be made and the neighbours to be notified we expect that there will be a number of neighbour disputes or problems which will arise as neighbours object to development next door to them which will either over shadow their garden or block light to windows. We do recommend that as building regulation consent will be obtained before any building work starts, you check with the local Council that your planned extension does not need planning approval.

New rules concerning deposits taken by landlords for private rented accommodation came into effect on 6th April 2007. From that date, all deposits taken by landlords under assured short-hold tenancies must be protected by a tenancy deposit protection scheme. If you decide not to take a deposit then the rules do not apply. As a landlord, you will be able to choose between two types of scheme, a single custodial scheme and two insurance-based schemes. Under the custodial scheme the deposit which you receive from the tenant will have to be paid to the organisation running the scheme. Within 14 days of you receiving the deposit, you must give the tenant prescribed information relating to the scheme being used. If at the end of the tenancy, there is rent owing or damage has been caused to the property, the landlord and tenant can agree how the deposit should be divided. The scheme will then repay the monies as per the agreement. If there is a dispute, the scheme will hold the deposit pending resolution of the problem. Disputes will either be resolved by an Alternative Dispute Resolution Service, supported by the scheme, or by the County Court.

Under the insurance-based scheme, the tenant's deposit will be retained by you. You would then have to pay a premium to an insurance company. Again you would have to give prescribed information to the tenant with regard to the scheme, within 14 days of receiving their deposit. At the conclusion of the tenancy, if both parties can agree how the deposit should be divided, then you would return all or the agreed balance of the deposit to your tenant. In the event of a dispute, you will have to pay the disputed amount into the Insurance Scheme and pay the undisputed amount to the tenant pending resolution of the dispute by an Alternative Dispute Resolution Services or the Court.

With the Insurance Scheme if the landlord fails to comply with his obligations and does not make payment to the tenant then the insurance provision protects the tenant and ensures they receive any deposit monies they are entitled to.

You should bear in mind that if you fail to protect a deposit, you will be unable to use “Notice Only” possession procedure and indeed this and also a failure to provide prescribed information about a scheme, could result in a Court imposing financial penalties upon you.

If you require further information on this, please don't hesitate to call.

A “normal” purchase by private treaty allows for negotiation of every aspect of the contract, flexibility of the time schedule and full agreement between both parties before signature and exchange of legal documents.

Auction contracts for buying property are not covered by the same “small print”. A binding and enforceable contract arises as soon as the auctioneer's hammers falls. Usually a deposit will be paid and written contracts confirming full details of the agreement will be signed immediately after the auction.

An auction catalogue will be available from the selling agents a few weeks before the auction, giving details of the property offered for sale. It will also give the seller's solicitors' details to allow prospective purchasers to obtain the “legal pack”, which will contain information about the property, title documents, search results, copy planning permissions and the contract. If there are any queries arising, this should be addressed as quickly as possible through searches or correspondence with the seller's solicitors or selling agents.

Possibly the single most important consideration is financing the purchase. An auction buyer must be able to pay 10% of the bid price as a deposit at the auction and must ensure availability of the balance of funds on the completion date fixed by the contract.

When considering an auction purchase, the key points to remember are:

• The timeframe is dictated entirely by the auction and the seller's contract, so money must be available and any further investigations should be carried out quickly;
• The legal documents will be non-negotiable and should be obtained and checked by your solicitor before the auction;
• As soon as a bid has been accepted and the auctioneer's hammer falls, the buyer is bound into a contract to buy that property on the completion date.

When agreeing to buy a house in England and Wales, there is no legal commitment for you to continue with your purchase until your solicitor has “exchanged contracts”.

When you first agree to buy a property, all your discussions are via the estate agents who will contact the sellers of the property to negotiate terms and conditions between the buyer and seller.

Once the asking price has been agreed, solicitors are instructed to deal with the legal paper work, which includes checking the title deeds for ownership; making appropriate searches and liaising with the mortgage company regarding finance needed. At this stage a survey of the property is recommended to ensure there are no major structural problems.

When all the necessary enquiries and searches have been completed, your solicitor will meet with you to sign the contract to buy the property.

There is still no commitment to buy; It is only when contracts are “exchanged” that you are legally bound to proceed. Exchange of contracts is where the solicitors for both the seller and buyer “exchange” the signed contracts for both parties, at the same time agreeing the final terms of the contract i.e.; the purchase price and moving date (often called completion date).

If you then decided not to proceed with your purchase, or for some reason could not complete on the agreed completion date, you would be liable to pay compensation to the seller under the terms of the contract. This usually includes additional legal fees, interest and the monies due. You would also have to pay 10% of the purchase price as a deposit.

So until exchange of contracts take place, either party can withdraw without any legal commitment to each other.

A deposit is usually paid to a landlord at the start of a tenancy. The purpose of this is to cover the landlord for any losses which he or she may face at the time the tenant vacates. This can cover items such as rent arrears, damage to the property or furniture, or missing items. If you have not caused any such damage, then the deposit should be returned to you. In default of payment you should initially write to the landlord or his agent requesting the money in 7 days and telling the landlord that unless the payment is received then you will issue proceedings in the Small Claims Court. If payment is not forthcoming, then you can issue proceedings at your local County Court. If the Court were satisfied that you had caused no damage to the property, or its contents and there were no rent arrears outstanding, you should be entitled to a judgment in respect of the deposit, which you could enforce through the County Court, if your former landlord failed to pay.

The local search and other searches that will be done on your property by your solicitor will generally only provide information about that piece of land you are buying and no other. In order to obtain information about possible developments on the grassland it will need either, a separate local search being submitted to the local authority on that particular piece of land, a written enquiry by your solicitor on your behalf, or a personal visit by you to the planning department of the local authority, with a plan showing the area of land in question.

If you find out that development is about to commence, you do not have any right to object. It must be assumed that the appropriate consent was granted by the planning department and the period for objections will have expired. If in the future there is an application for development of the land, then the local planning department should notify you with details of the planning application and you will have the opportunity to put forward your objections within a specified time period.

The property can be purchased jointly in two ways; either as joint tenants where you each own the whole of the property jointly and in the event of the death of one party, the other party automatically becomes the sole owner, (subject to any mortgage or other charge), or to purchase it as tenants in common. This requires you and your partner to enter an agreement as to the basis on which the property will be held and could be used to ensure the return of your deposit should the relationship fail. However, please note that as a tenant in common you would not automatically be entitled to the property on his death or vice versa. As you are about to cohabit, now would be a good time to have a Will drawn up if you do not have one, or to review any Will you may already have to see if it accurately reflects your new circumstances.

There is another option to purchasing the property as tenants in common, which is to have a cohabitation agreement with your partner. This may sound unromantic and to some extent it is, but it could save you in solicitors costs further down the line if things don't work out and is capable of dealing with so much more than just the ownership of the house.

Please note that if you and your partner choose at a later stage to marry, the protection afforded by purchasing as tenants in common or entering into a cohabitation agreement will all but disappear and it would be advisable to reconsider your legal position at that time.

Can you afford to take a risk of ignoring environmental issues? The dangers of flooding, landfill sites and contaminated land are regularly reported on by the National Press, ensuring it continues to be a hot topic for many home and property buyers.

Under new guidelines issued to all solicitors through the Law Society, it recommended that anyone buying property or land should be made aware of the possibilities and consequences of any contamination at the property. Consequently most Solicitors are now recommending a search be carried out in every case.

The searches reveal information relating to the historical and current use of the land searched, proximity of landfill site; waste treatment sites; petrol station; as well as the likelihood of problems from flooding, radon gas or risks ground instability; where appropriate giving further recommendations of additional information, which should be requested.
With this in mind it is imperative that purchasers seek the reassurance of a professional opinion of any potential liabilities which they could inherit with their property acquisition. Where problems are found to exist, insurance can be undertaken along with further investigation before buying the land/property.
In serious cases where contamination is found to exist the owners of the land can be forced to “clear up” the contamination. It is quite possible that the cost of remediation requirements, which are legally enforceable, can easily exceed the value of the property and land!
Can you risk not having an environmental search, which will only cost you in the region of £40.00?.

It is very important that both landlords and tenants are aware of their obligations and the implications of occupation of business premises.

A written agreement provides certainty for both parties and sets out the terms of occupation. Leases cover many matters;

1. Levels of rent, when it is due and how it can be increased.
2. Repairing obligations - what the landlord and the tenant will be responsible for in relation to repair of the premises and who has to cover the cost.
3. The length of the lease and how it can be brought to an end by the landlord and the tenant. Also if the lease can be sold to a third party.
4. What the premises can be used for.
5. Who will insure the premises and who has to cover the cost.

All of these matters are important to both landlords and tenants and often lenders if they are providing finance for a business venture.

Another important issue in relation to the length of the lease is whether or not the tenant will be entitled to have a new lease and remain in occupation once the original lease expires. If the premises are used for business purposes and the tenant has occupied the premises for more than 6 months then in certain circumstances the tenant may be entitled to remain in occupation of the premises on the same terms with the exception of the level of rent. This may be problematic for landlords if they wish to have vacant premises, for example, if they wish to sell. This can be avoided but will need to be dealt with at an early stage and arguably before the tenant goes into occupation.

Agreement of the terms of the lease at the outset will enable the landlord and the tenant to assess the cost of complying with the lease terms. It will also save disputes in the future as to what was agreed and avoid costly arguments and the breakdown of the landlord and tenant relationship if an agreement cannot be reached.

Perhaps it is. However if you want a quick sale you might be inclined to give in rather than waste time and energy arguing the point. I am afraid that these days with all businesses having complaints policies and insurance against negligence everyone is very careful to make sure that their customers have no grounds for complaint.

Sure there is absolutely no risk in a case such as this and that is why insurance cover is available at a very modest cost on a simple “one form to fill in” basis at a premium of around £200.00 depending on the value of your house (this is a one-off once and for all payment). However, remember that all solicitors, where there are mortgages involved, are obliged to make sure that they are accepting a good title. If the buyer is paying cash the solicitor will pass the decision on risk back to the buyer.

A Service charge payments can be for both leasehold and freehold properties and are commonly associated with leasehold properties. A service charge payment will usually be made when the property has the benefit of communal or common areas which, are shared with other neighbouring property owners i.e. in the case of a leasehold property, a joint access way, stairway or entrance hall, or in the case of both leasehold and freehold property a courtyard or parking area.

Service charge is paid to cover the running costs for such matters as cleaning, lighting and heating common areas, interior and exterior maintenance, reception or security staff and the upkeep of grounds and lifts. It is likely that a Management Company will be set up to undertake the work and consequently the owners of the properties subject to the service charge, permit the Management Company to undertake the work and therefore have no choice over who does the work and the price in respect of it.

Anyone buying either a freehold or leasehold property which forms part of a development which has communal or common areas, must firstly examine the title deeds to establish exactly what the service charge is for, who the payment is made to, how the payment is calculated and what the payment has been for at least the last three years. This will enable an estimate to be made on the level of additional expenditure which will have to be outlaid annually as the property owner.

At the end of a lease for a business premises a landlord can serve a Schedule of Dilapidations, which is a list of repairs he thinks the tenant should have carried out before leaving the premises (or in some cases during, or before renewing the lease). Sometimes this can amount to a large sum being owed to the landlord by the tenant. In many cases tenants leaving a property are unaware that this can happen.

Whether you are a landlord or tenant you should seek legal advice as soon as possible so that the lease can be considered to see the extent of the tenant liabilities. It is important to ascertain exactly what the landlord and what the tenant is liable for before the claim made is considered further. For example sums may be claimed for repairing the external structure of a building when the tenant is only responsible for internal repairs. Sometimes a Schedule of Condition has been prepared before the start of a lease and will need to be considered as well.

A tenant is responsible for paying the cost of the repairs, or the reduction in the value of the building due to the lack of repair, whichever is the smaller amount. Often a surveyor will need to be instructed to carry out a survey and valuation to assess this.

If you are thinking of taking a lease or granting a lease as a landlord it is important to take legal advice and consider carefully the repairing terms before you commit to them. This will protect both parties and hopefully remove problems in the future.

Transferring a property out of your name does not necessarily mean that it will not be taken into account in a Means Test. An important consideration for both the local council and the Pension Services is whether the action was deliberate or intentional, i.e. when someone transfers a property out of their ownership to put him or her in a better position to obtain assistance.

On the face of the facts set out above it would seem that the local authority would say that this was intentional. Timing is always taken into account, if this took place at a time when the person was fit and healthy and could not have foreseen the need to move to residential accommodation then it would probably be disregarded. However, this does not seem to be the case here.

If someone has deliberately sold their property to ensure they received government funding, they will be treated as having “notional capital” equal to the value of the property which has been given away. The local authority can assess the person as being able to pay the full costs of their care and they do have powers to recover any sums which it pays towards a resident's care costs from the person to whom the property was transferred. This power can only be used if the property was deliberately transferred within six months of the approach to the local authority for funding. However, there is no set time limit beyond which the local authority has to ignore transfer of assets. It would seem, therefore, highly likely that if your father gives the house to the family he would not be eligible for government funding to pay his home fees.

Radon is a natural gas which is present in the ground. It is as a result of uranium decaying which when decayed becomes radium and when radium decays it becomes radon. Uranium is found in small quantities in all soil and rocks but the amounts contained in them vary. Radon rises from soil into the air, however outdoors it is diluted and does not therefore present a great risk. It is found at low levels in all buildings. The National Radiological Protection Board keep records of affected areas where high levels of Radon Gas may be present. In such areas the Board may recommend that measures are taken to reduce radon levels within a building. because research has shown that exposures to high levels of Radon Gas can cause damage to a person's health. Radon Gas can affect both residential and commercial buildings. A simple test can by carried out at the cost of around £40 which involves a safe testing device consisting of one or two detectors being placed in the house for three months. Once the three month period has ended the detectors are sent normally by post for the results to be assessed. If levels are then found to be high than remedial measures can be undertaken at the property owners expense to reduce the level of Radon Gas. In respect of new properties built special regulations are imposed through building regulations to make sure that they are not affected by Radon Gas.

It is important to discover at a very early stage whether you have any legal right of way to the property. If you have, it will be shown on your Deeds and will show that you have an easement to use the passageway to gain access to your garden. If you have a legal easement, it cannot be extinguished other than by a Deed signed by both parties agreeing that the easement shall no longer be exercisable. It is open to you at any time to tell your neighbour to remove the obstruction from the passageway and if he fails to do so you can either remove it yourself or seek an Injunction at Court requiring him to do so.

If your Deeds do not show that you have a legal easement it may still be possible to establish a legal right of way by evidence of long user, by making reference to the provisions of the Law of Property Act, or by establishing grounds which are set out in similar cases which have been decided by the Courts. To establish such a right the Courts wish aggrieved parties to make applications as soon as the problem becomes apparent. It is most important that you should urgently consult your own solicitors to check your Deeds and if necessary take whatever course of action is necessary.

Your local Council should write to you with the details of the extension and give you an opportunity to tell them whether you agree to the plans or whether you object – your views should be passed to the planning committee which will have to decide if permission should be granted.

There is no legal obligation on the Council to inform you, so it would be best for you to contact the planning department to make sure that you can lodge an objection if you want to.

The Council should consider the application on its planning merits – the fact that you may lose privacy or your house may be less valuable does not mean permission will be refused.

If the extension is likely to interfere with the light to your windows, it is possible that you may have a legal right to light and could prevent the extension being built. On that point you need advice from a surveyor or solicitor.

No one likes gazumping. Even estate agents are unhappy about deals being unscrambled particularly if people are being put to the expense of surveys and search fees. It is surprising how many sales and purchases do proceed and perhaps most people when they have accepted an offer or made an offer will not want to let the other party down.

I understand that you have made an offer which has been unacceptable. What you must do is keep in regular touch with the owners of the house, telling them exactly what you are doing and making sure they understand that you are making all the necessary arrangements for surveyors, search fees, solicitors and so on. Ideally you should be forming a fairly close relationship with them so that they feel that they are committed to you (and vice versa) even though nothing has been signed.

If you absolutely feel you must have something more concrete than relying on the word of the seller, it is possible to have a binding lock-out agreement in which they agree not to accept any higher offers during a specified period (say a month) and provided you are able to proceed at the end of that period they are obliged to sell to you. In a market where house prices are rising there is little incentive for the seller to sign such an agreement unless you are prepared to pay good money for exclusivity. If you are willing to pay the seller say £500 for exclusivity for a month he may be willing to sign an Agreement. You will lose the £500 if you decide not to proceed but if it secures the house perhaps it is a risk worth taking.

I suggest that you go back to your solicitor and see whether the seller is prepared to enter into a lock-out agreement and if so on what terms. Otherwise you should keep in regular touch with the seller to make sure that he does not think that you have lost interest and start talking to someone else.

The terms 'joint tenants' has nothing to do with tenancies or paying rent, it is a legal term which means that irrespective of the contents of any Will, upon the death of one owner that person's interest will pass automatically to the surviving owner who then becomes sole owner of the property. This is the usual arrangement between husband and wife.

In the case two or more people buying a property and they are not married or are providing the purchase price in unequal shares (perhaps if they were business partners) then it would be usual for them to hold the property as 'tenants in common'. This means that on the death of one owner his interest in the property will pass under the terms of his Will and will not automatically pass to the other joint owners.

In certain circumstances for inheritance tax purposes it might be beneficial for a husband and wife to own a property as 'tenants in common' thus enabling them on the death of the first spouse to leave the property to their children to avoid the surviving spouse's estate paying inheritance tax when he or she dies.

The provisions are somewhat complicated and you should contact a solicitor and ask him to explain the position to you fully.

Any building works which you carry out are classed as development by Section 55 of the Town and Country Planning Act 1990, therefore planning permission is required. However, certain works have what is called Deemed Planning Permission under the General Permitted Development Order 1995. The enlargement, improvement or other alteration of a dwelling house comes within this Order and therefore it maybe that you will not need to apply for planning permission to the council because planning permission will be deemed to be granted under the Order. However, whether that is the case will depend upon the size of the extension which you are building. There is a limit within the Order and if the extension is greater than that permitted, then a separate planning application will have to be made to the Local Authority. The enlargement, improvement or alteration permitted by the Order depends whether the house is a terraced house and whether the house is situate within a conservation area.

In addition to planning permission, and depending upon the size of the extension, you may need building regulation consent. This is an entirely separate matter from planning.

We would therefore advise that if you are in any doubt as to whether the proposed works come within those permitted by the General Permitted Development Order 1995, you should check with the planning office of your relevant Local Authority.

If the seller has more than one prospective buyer wanting to purchase their property, they could instruct their solicitors to send out a contract to more than one buyer. This would be subject to each buyer being advised that a contract has been sent to another buyer and that the first party to exchange contracts will acquire the property. From a buyers point of view, contract races are best avoided because the buyer can incur considerable expense in proceeding to attempt to purchase which could include surveyors costs, mortgage arrangement fees and legal fees only to lose out on the property. Therefore, as a buyer it would not be advisable to enter onto a contract race unless the buyer and their solicitors can move very quickly to exchange of contracts and are prepared to accept the fact they could end up losing the contract race.

Yes. You should make an application to the local County Court to 'suspend the Warrant of Possession'. Your solicitor or the court staff will be able to help you complete the application.

Your case will then be listed for a hearing before a District Judge. If a Judge is to grant your application you must have a good reason to explain why you were not able to keep to the terms of the Suspended Possession Order and you must be able to demonstrate that you can clear any arrears on your mortgage account within a reasonable period. You should take to court a copy of the letter received from your new employer confirming your appointment and the level of your wages. If you have time it would be helpful if you prepared a budget plan showing your income and expenditure. If the Judge believes you can clear the arrears within a reasonable period, then he will suspend the Warrant of Possession on terms that you pay an extra sum on top of the contractual monthly payment. Providing you keep to the terms of the Order, there is no chance of the building society taking any further action against you.

The term "joint tenants" has nothing to do with tenancies or paying rent, it is a legal term which means that irrespective of the contents of any Will, upon the death of one owner that person's interest will pass automatically to the surviving owner who then becomes sole owner of the property. This is the usual arrangement between husband and wife.

In the case two or more people buying a property and they are not married or are providing the purchase price in unequal shares (perhaps if they were business partners) then it would be usual for them to hold the property as "tenants in common". This means that on the death of one owner his interest in the property will pass under the terms of his Will and will not automatically pass to the other joint owners.

In certain circumstances for inheritance tax purposes it might be beneficial for a husband and wife to own a property as "tenants in common" thus enabling them on the death of the first spouse to leave property to their children to avoid the surviving spouse's Estate paying inheritance tax when he or she dies.

The provisions are somewhat complicated and you should
contact a solicitor and ask him to explain the position to you fully.

A party wall is a wall dividing properties in different ownership. This could either be where the wall is divided vertically in half and each neighbour owns half the wall, or if the wall is entirely in the ownership of one owner but subject to easement and rights in favour of the other owner to have it maintained , or if the wall is divided vertically but each part is subject to cross easements in favour of each other thus giving each owner joint responsibility for repairs and maintenance.

The Party Wall Act 1996 imposes new obligations and responsibilities on home owners who share a wall or fence with their neighbour. Owners now have a right to repair a party wall providing they have served notice on the adjoining owner advising them of their intentions. If the adjoining owner does not respond within 14 days of receipt of the notice, he will be deemed to object and must appoint a surveyor of his choice. If no surveyor is appointed within 10 days, a surveyor can be appointed to act on the neighbours behalf. The two surveyors will then draw up an agreement called a party agreement. The agreement will describe the work to be done and state that if any damage is done it will be repaired at the expense of the neighbour undertaking the work. If the parties still disagree a third surveyor can be appointed. The Act also requires home owners to obtain their neighbours consent before excavating adjoining land or land within six metres of a party boundary.

Your Building Society obtains a valuation for its own use and to assist it in deciding how much money to lend you. Most Building Societies will let you have a copy of the valuation but this is not a 100% rule. Building Societies in any event will make it quite clear to you that the report arranged for them is a valuation and not a structural survey, it would usually point out minor defects but will not give you the same protection that you would have if you had paid for a full private structural survey. It is always prudent, especially with an older property, to consider arranging for your own separate private independent survey but this is likely to cost a minimum of £300 depending on the value of the property. The surveyor may also recommend that Specialist Reports are obtained from Plumbers, Electricians, Damp Proof Course Specialists or Woodworm Treatment Specialists or the like. Some companies will carry out a survey without fee but it is becoming increasingly common for the Specialists to charge. Although this may add up to a considerable additional expense it is certainly worth serious consideration since once you have exchanged contracts for the purchase of the property you have no right to compensation from the owner for anything you find wrong at a later date and you must, therefore, be happy with the condition of the property before you sign the contract.

From the government's point of view, Stamp Duty is a very attractive tax. It costs virtually nothing to collect and the Revenue generated is very welcome.

Documents (Transfers and Leases) which transfer or create an interest in land do need to be stamped if they are to be enforceable in the future. If you are taking a very short Lease and decide to run the risk of not stamping, you may not have a problem as long as firstly you do not want to transfer the Lease to anyone else and secondly provide that you do not fall out with the landlord and need to take him to Court.

What you should remember is that if you need to stamp at any time and have not presented a document for stamping within 30 days of completion, you will have a penalty to pay and the penalty is likely to be at least as much as the original Stamp Duty.

HOW MUCH WILL IT COST?

There are different rates of Stamp Duty depending upon how long the Lease is for. Leases for terms of less than 7 years are liable to Stamp Duty at the rate of 1% of the annual rent plus VAT (that is the rent plus VAT even if VAT is not charged by the Landlord). Leases of between 7 and 21 years carry Stamp Duty at the rate of 2% of the annual rent plus VAT.

In addition, if you are paying a capital sum to the Landlord on the granting of the Lease, if that capital sum exceeds the normal Stamp Duty level of £60,000 or the rent and the Capital payment together would take you into Stamp Duty, an additional sum will be payable.

The first step is to check your deeds to see whether any legal right exists. Even if your deeds do not contain a specific right of access it may be that such a right is implied under established legal principles or under the provisions of the Law of Property Act. If your investigations prove that you have neither an express or an implied rights it would be possible to make an application to the County Court for an Order under the "Access to Neighbouring Land Act 1992".

You would need to show to the Court that the works were reasonably necessary for the preservation of your property and that they could not be carried out any other way.

The Court will grant an access order unless your neighbour can show that the interference and disturbance would be unreasonable. In the circumstances you set out, it is most likely the Court will make an Order but would probably impose conditions requiring you to reinstate your neighbour's property and pay compensation for any loss of privacy or inconvenience.

An Order would not be granted for works of improvement or development or which would involve leaving anything permanently on your neighbour's land including footings or pipes. The order would be binding not only on your neighbour but also on future owners of his property.

You should ask your Solicitor to write to your neighbour explaining the implications of the Act in the hope that your neighbour will see sense and give you access without the necessity of court proceedings.

If you have not invited your neighbours onto your property , each time they come into your garden they are trespassing. You would be best advised to firstly have a friendly word with your neighbours asking them to stop entering your property. Failing this you are entitled to bar their way which could be in person if necessary. Should the neighbours still continue, you may apply to the county court for an injunction. Further more, if the neighbours cause damage to your property while on it, you can claim compensation for any damage done. Many factors will determine the amount of the claim, however, the main factors are the number of times your neighbours have trespassed, the distress and inconvenience it has caused and the damage done to the garden. Therefore anyone considering a claim should keep a record and take photographs of the damage done.

Once the registration of the change in ownership has been completed by the HM Land Registry, the deeds will be returned to your Solicitors. If you have purchased with the aid of a mortgage, then the deeds will be sent to the head office of the mortgage lender where they will be retained as security until the mortgage has been paid off. The deeds will be released to you when you have repaid the mortgage in full. If you have paid cash for the property then the deeds can be retained by yourself or alternatively can be stored for safekeeping in your solicitors strong room. There is usually no charge for this service.

The paying of a preliminary deposit is an obvious sign to a seller of goodwill and intention. However, as such a deposit is instantly returnable at any stage of the transaction before contracts have been exchanged, it will not stop or deter a seller if they want to withdraw from a transaction before exchange of contracts. Therefore purchasers are rarely asked for or offer a preliminary deposit. There are exceptions to this and it is not uncommon for preliminary deposits, sometimes referred to as Reservation Fees or Holding Deposits to be paid directly to a builder/developer or their estate agents to reserve a newly built property or property under construction. This fee is then taken into account at both exchange of contracts and completion. To ensure the payment is not forgotten it is important for the buyer to advise their solicitor of any such payment made.

The seller retains the risk until completion. This means the seller must transfer the property in the same physical state as it was at the time contracts were exchanged. If the seller cannot do this then the buyer would be entitled to rescind the contract. However, the seller is under no obligation to the buyer to insure the property. It is advisable for the seller to keep their own insurance cover until the completion day because if the buyer has not insured, the seller may find it very difficult to get the buyers money. There are exceptions to this general rule and in each individual case the terms of the contract should always be checked.