Changes brought by the Leasehold Reform (Ground Rent) Act 2022

Changes brought by the Leasehold Reform (Ground Rent) Act 2022

Changes brought by the Leasehold Reform (Ground Rent) Act 2022

If you are a leaseholder or if you are considering purchasing a leasehold property, keep reading.

The Leasehold Reform (Ground Rent) Act 2022 comes into force on 30th June 2022 and brings with it major changes to the rules governing ground rent and lease extensions. The Act is part of the government’s plan to make leasehold properties more affordable and fairer. In effect the Act will prevent the Freeholders from charging more than a ‘peppercorn’, also know as ‘zero’, ground rent on all new residential long leases granted after the Act comes into force. This new rule equally applies to lease extensions, effectively bringing the ground rent to a ‘peppercorn’ as it would with a new statutory lease. However, for lease extensions, the ground rent will be set at zero once the period for the new lease starts and will not have effect immediately as it would in the case of an all-new lease. Therefore, you will still be liable for the ground rent set in the old lease until the new period added to the lease by the extension commences.

The Act does not affect any short-term tenancies, business leases, community housing leases, home finance leases or any leases that are already in existence. Nevertheless, from 1 April 2023 the rules set in the Act will also apply to retirement properties.

Freeholders need to be careful when granting new leases and/or extensions as the Act brings with it strict penalties of up to £30,000 if Freeholders are still charging ground rent or any administration fees for collecting the ground rent after 30th June 2022. Developers need to be equally aware of the new rules if they intend to sell the properties as separate leaseholds and grant new leases as it is crucial to ensure they are compliant with the Act.

If you are looking to buy a new leasehold property or to extend your existing lease or you would simply like to know more about how the new rules affect you, please contact our Conveyancing Team. You can call us on 01206 577676 or send us an email at [email protected]

For more information on leasehold property

Contact our Colchester office on 01206 577676 or you can email [email protected]

Buying a house with a septic tank!

Buying a house with a septic tank!

Buying a house with a septic tank!

GoodyBurrett LLP serves rural and town clients alike and we get a large number of residential property transactions for houses that are not connected up to the mains sewerage systems and have to have independent options. 

The most popular are modern sewage treatment plant systems that attend to the waste and then produce a treated, clean water (suitable for discharging into nearby water courses or ditches). However, there are other options such as septic tanks which you are likely to find in an older property.

What is a sewage treatment system?

These are usually quite small systems, often located above ground, that will work quickly and odourlessly to attend to the household waste.  Some very modern solutions have panel displays to alert you straight away to issues within the system.

While ongoing maintenance and emptying is required it is needed much less frequently and is a much smaller job than with traditional systems like septic tanks.

As mentioned above, because the water produced by these types of systems is much cleaner there are fewer environmental issues to attend to and much less paperwork re: permits etc.

What is a septic tank?

It is a tank usually located underground that collects waste matter from the house and uses the natural bacteria within the waste to encourage decomposition. Any waste-water from the system needs an area to drain into, preferably a soak away or drainage field.   It will need regular maintenance and emptying which can easily be attended to by local specialists.

It is likely any septic tank will have been in situ for decades as the more modern options are more cost effective and space saving and appeal more to rural developers.

A septic tank is likely to require a permit and other formal paperwork to ensure that any emissions from the tank flow to a secure area.  This is important to ensure there is no compromise to local wildlife or beauty spot.

General

In many cases both septic tanks and sewerage systems are shared between households (i.e. neighbours) so it is important to be aware of the capacity and location of the system itself so maintenance can easily be arranged when required.

If you are looking to install a new system you may need planning permission and you will be building regulations. As referred to above depending on the system you may also need further environmental paperwork.

If you are looking to sell a property with an existing sewage system you must make sure you meet the General Binding Rules 2020 which are the regulations keeping track of the safety and cleanliness of the systems used in this way.

If you have any questions about buying or selling a house which is not connected to mains sewerage we will be more than happy to assist.  You can call us on 01206 577676 or pop us an email to [email protected]

If you would like any advice on buying / selling your house

Contact GoodyBurrett on 01206 577676 or email [email protected]

How to protect yourself against conveyancing scams?

How to protect yourself against conveyancing scams?

How to protect yourself against conveyancing scams?

Numerous scams have recently been reported in the press in relation to the conveyancing process. Clients can become victims if communications between them and their solicitors are intercepted by scammers. The Law Society has reported more and more cases of instances where victims have been defrauded of thousands of pounds.

How do the scams work?

The scammers gather information about the property transaction, then right before exchange or completion they send fake emails. These emails look like they were sent by their solicitor and ask for the balance of funds for the property transaction to be sent to an alternative bank account. Scammers typically target individuals who are purchasing properties without mortgage funding and trick them into sending the deposit or the balance of funds to their account. The Law Society together with the National Economic Crime Centre and Action Fraud are issuing warnings of the risk of payment diversion fraud.

A homebuyer was tricked, using the above method, into paying £640,000 to an alternative bank account. The bank details were provided to him on headed paper identical to the one used by his solicitors. The actual solicitor later informed the client that the funds were not requested by the firm and that he has been scammed. Unfortunately, the money was not recovered and as a result the homebuyer lost all his savings and the property he was trying to purchase.

How to protect yourself from conveyancing scams when purchasing?

The Law Society has issued the following tips so you can avoid becoming a victim of scammers.

  1. Whenever you receive an email from your solicitor requesting a transfer of money or for your bank account details, you should call your solicitor to confirm the request has come from them. If the bank details provided in the email are different from the ones provided in the client care letter (or any other secure communication between you and your solicitors) then you should confirm the changes over the phone. This should always be a red flag as law firms rarely change their bank details.
  2. You should double check that the sender’s email address is correct. This will usually be incorrect but as scammers find new ways to hack into emails or create new ones resembling the law firm’s you should still contact your solicitors to confirm if they requested the payment if you are even slightly unsure.

In addition to the above, we would recommend that you always use a secure and private internet connection when transferring funds to your solicitor.

If you receive an email from anyone at GoodyBurrett requesting your bank details or requesting monies, always phone our office immediately to confirm the details before making payment. Please be on notice that it is a policy of GoodyBurrett not to send or accept bank details via email.

For more information on how we could help with your conveyancing needs, feel free to contact us for a free, no obligation quotation.

If you would like any advice from our conveyancing department

Contact GoodyBurrett on 01206 577676 or email [email protected]

Buying a house?

Buying a house?

An update on Buying a Home

Tenants and home buyers in England, Scotland, Wales and Northern Ireland are still permitted to move home, despite current lockdown measures being imposed in response to the Coronavirus outbreak on 6th January 2021.   So, what does that mean for the property world?

Can I move home?

It has been confirmed that home buyers and renters are allowed to continue to move home during this lockdown in all parts of the UK.  This is subject to following social distancing rules and the correct procedures.  This means that people looking to move home can continue with planned moves and view new properties to move in the upcoming months.  Estate and lettings agents, removers, valuers and people in sales and letting offices and show homes are able to continue working.

Guidance suggests arranging in-person house viewings by appointment.  Social distancing measures must be adhered to and washing hands when first entering the home. Virtual viewings are also available in certain circumstances and can be arranged if you do not feel comfortable visiting the property. 

Can I still get a mortgage payment holiday?

You are still able to apply for a mortgage payment holiday up until the 31st March 2021.  How long a deferral you may be able to qualify for will depend on whether you have already had one since the start of the Covid-19 outbreak or if this is a new request.

If you haven’t already taken out a payment holiday yet, you can request deferrals up to a maximum of sixth months.  Or, if you already have a payment holiday, you can extend this until you reach the six-month limit. 

How can we help you?

If you are worried about the process of buying a home during lockdown or asking for a mortgage deferral, then GoodyBurrett have a fantastic property department to help with the buying process.  If you are interested, contact us at 01206 577676 or at [email protected]

 

For more information on buying or selling your home

Contact our Conveyancing Department on 01206 577676 or email [email protected]

Client care at GoodyBurrett

Client care at GoodyBurrett

Client care at GoodyBurrett

Client care is so important to us here at GoodyBurrett. Not only is it the right thing to do and we want to keep our clients happy, but there are also Statutory Requirements in relation to client care.

Delivery – We want to ensure that at the end of your matter, we arrive at the final outcome having kept our promises to you, our client.

Timeliness – We strive to do everything in a timely manner. If we are going to face delays due to outside influences beyond our control, you will be kept informed.

Keeping you informed – We will always provide you with comprehensive and accurate information in relation to your matter as and when we receive it.

Professionalism – Your matter will be dealt with by staff that are competent, knowledgeable, professional and client focused, who have a thorough understanding of your matter.

Staff attitude – All of our staff are approachable, friendly, and understanding of your needs. We will assist you in an open and transparent way.

At GoodyBurrett we have our Golden Principles:

# PUT YOURSELF IN THE CUSTOMER’S SITUATION – Have compassion and try to understand what the client is going through whilst remaining objective.

# FIND THE REAL ISSUE AND WHAT THE CLIENT NEEDS – Good communication skills are paramount along with the ability to listen to your client and really understand what the real issue is for them.

# INVOLVE THE CLIENT IN THE ANSWER – Talk to your client and understand their goals and outcomes.

# ACCEPT ACCOUNTABILITY – If there is a problem or an issue, personally deal with the problem as soon as you are aware of it.

# FOLLOW UP – if there has been a problem or an issue arise, once resolved, always make sure you check that the client is now satisfied.

In the words of Bill Gates,“ Your most unhappy customers are your greatest source of learning”. If we do not know what is wrong, we can’t fix it and learn from it. However, if we do not know what is right, we can’t do more of it. If there is something you are unhappy about, we need to hear from you to enable us to solve the issue. BUT … if there is something we are doing great, please do shout out to us and let us know, we’d love to hear from you too.

We are always here to help.  You can contact us via email [email protected] or call us on 01206 577676.

We are always here to help

Contact GoodyBurrett on 01206 577676 or email [email protected]

Selling or buying a Property at Auction

Selling or buying a Property at Auction

Selling or buying a Property at Auction

In light of the current Stamp Duty Land Tax (SDLT) holiday, many homeowners will be looking to move home before the deadline in March 2021. As such, more and more people are considering auctions to get a quick sale and make the most of this tax break.

Those familiar with the BBC’s ‘Homes Under the Hammer’ will be sceptical of this method, given the show’s frequent coverage of fixer uppers and abandoned sites being sold in this way. However, in this new post-outbreak market a new type of auction has emerged and with it, new opportunities for buying and selling properties.

As such, what do buyers and sellers need to know about this mysterious new way to buy and sell homes and what implications does it have for the conveyancing involved?

What is a modern Auction?

This ‘modern auction’ as it is known combines traditional marketing techniques with an eBay-style online bidding system. Initially, a local estate agent will take photos of the house and market it in the local area, much the same as if it were marketed on the open market. This however, is where the similarities end from the traditional method.

At this point the reserve price will be discussed. The reserve price will be the minimum price that you are willing to accept and a sale will not be reached if no offer reaches this value. This price is kept secret from all potential buyers and is just between you, your estate agents and the auctioneer.

The property’s ‘market price’ is set at less than the reserve price to entice in buyers on Rightmove, Zoopla and other sites. The approach here, in contrast to the traditional open market method of marketing higher than the price you expect to receive, is to entice buyers in at the low price, forcing them to bid higher and higher against their competition. After this marketing phase the auction can begin.

If everything runs according to plan, the property should sell 20 business days after the beginning of the auction for the highest bid. At the point of the digital gavel being struck, contracts are exchanged with a completion date set for 20 business days later (unless specifically requested otherwise). At this point, the buyers pay a significant non-refundable deposit to the Auction House, locking them into the sale.

After this timeframe has elapsed the property is sold and you will receive the value of the highest bid, minus the conveyancing fees and any agents’ fees that have been included.

Pros and Cons

Aside from a quick sale, there are other perks involved in selling at auction.

For starters, upon completion of the auction, contracts are then exchanged, meaning that the price is fixed. The buyer also then pays a non-refundable deposit to the auction house. This means that the likelihood of the sale of falling through is much lower, and that you are guaranteed the price agreed on auction day. Auction buyers tend to also be cash buyers, meaning that you aren’t usually dependent on a chain.

There is also the added benefit of passing on some of your fees (minus the conveyancing) onto the buyer: meaning that the highest bid at the end of the auction is what you actually receive. In some cases, the estate agent’s commission and auction fees are all paid by the buyer.

It is worth noting that you may not receive as much by selling at auctions as you would on the open market. As the buyers have to pay a higher price than they actually bid (if the fees are included), you could expect your bids to be lower as a result.

The other factor to contend with the timescale requirements related to buying at auction, you can limit the number of potential buyers . As such, it is important to consider your own personal circumstances before making a decision on how to market your property.

Effect on conveyancing

If you have decided on auctioning your property, it is important to let your conveyancer know early as they will have to prepare a legal pack in preparation for the auction and work on a very fast turnaround after the auction has ended. It is therefore imperative that your conveyancer is made aware of the timescales involved.

How can GoodyBurrett help?

If you are thinking about buying or selling your property at auction, or have any other conveyancing needs, we are here to help!  Contact us on 01206 577676 or email [email protected] 

If you would like any advice from our Conveyancing department

Contact GoodyBurrett on 01206 577676 or email [email protected]