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Category Archive: Property & Conveyancing

  1. Law Society Guidance on the Impact of Climate Change on Solicitors

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    In a recent ground-breaking release, the Law Society, the professional body of Solicitors in England and Wales, issued their first guidance on the Impact of climate change on solicitors.

    The guidance is in two parts:

    1. The first part sets out how organisations can manage their businesses to assist with the transition to net zero carbon emissions.
    2. The second part sets out in broad detail how solicitors should carefully consider their advice and their duties to their clients in relation to climate change, taking into account both physical and legal risks to the subject of their advice.

    The Law Society openly recognises that this is a quickly evolving area of law. The way that business is conducted, and clients’ expectations regarding the advice given to them, will change in the years to come.

    Detailed and sector-relevant advice will follow in due course, but for now the guidance is a powerful statement of intent in relation to solicitors’ practice.

    Tinsdills consider this to be a very important part of the service that we provide for our clients. For that reason, we took the decision some time ago to offer residential property environmental searches, which include climate change information as part of our standard environmental search.

    This is perhaps the first and most important step in the evolution of the advice that we give to our clients as well as our duties towards them.

    We recognise that there’s a lot more work to do, and work we will. But we take the view that this update is not only important in terms of the advice we provide, but is also in the best interests of the whole community that we seek to serve.

    Keep an eye out on our social media accounts & news page for further updates related to Environmental Law soon. There’s plenty more to come – let’s keep this crucial conversation going.

    Andrew Burrows has a master’s degree in Environmental Law.

  2. The Tempest – Environmental Searches

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    The latest revision of the play of that name dwells on the man made nature of the Tempest and how delicate eco systems are, with Ferdinand, Prince of Naples collecting plastic waste from the sea shore.

    And whilst Prospero claimed to have control over the elements in a way that we clearly don’t, its perhaps a useful reminder of the importance of climate change and environmental considerations for us and for future generations.

    Everything that we do, from zero carbon armed forces to smart water meters, will be affected by environmental considerations.

    But what about where we choose to live? How will we exercise choice based on the information available to us?

    Whilst we’ve known about contaminated land since the 1980s, and the importance of mining searches since before that, both as a result of our industrial heritage, how will these new considerations affect buying a house?

    It may be that properties with renewal energy solutions, or which are capable of these with minimal investment, like solar panels or ground source heat pumps, may be valued differently. Construction will certainly change, and minimal energy efficiency requirements for properties will become the norm.

    But it’s more basic than that.

    Will the house that I am buying now be affected by climate change in the future?

    What about surface flooding, river flooding, subsidence or erosion?

    We think that these are important questions.

    That’s why as our standard environmental search we offer a search which provides a simple to follow analysis to determine if what is probably the biggest investment of your lives will be affected by climate change in the next 30 years.

    This is a ground-breaking addition to our usual high standard of service; it’s so new that we don’t yet have any Law Society guidance, or guidance from lenders or valuers, on how to address climate change considerations.

    We’d like to think that this is the start of a new way of looking at where we live, how we get there and what we leave for future generations.

  3. Residential Landlords – Did you know the rules on EPC’s are changing?

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    As a Landlord, there are certain requirements regarding a Property’s Energy Performance certificate (EPC), which must be adhered to before a Property can be let.

    In 2018 the government introduced a minimum energy rating of “E” or above for all new tenancies granted from 1st April 2018.

    Changes to the Minimum Energy Efficiently Standards were announced in 2021 which will affect Landlords from 2025 and this rule now applies to all tenancies, not just new tenancies or renewals. As a Landlord, if your Property does not have a valid EPC rating of E or above it cannot be legally let.

    After a government consultation in December 2020, changes were announced and it was proposed that by 2025 all rental properties will need an EPC rating of “C” or above. These new regulations will firstly be introduced to new tenancies, followed by a requirement that all tenancies should meet this criteria from 2028.

    The purpose of the new regulations is to make homes more energy efficient and reduce carbon emissions as part of the target to be net-zero by 2050.

    Landlords should also be aware that the penalty for not having a valid EPC will also be raised from £5000.00 to £30,000.00 from 2025.

    If you have any questions regarding the proposed changes please contact one of the Commercial Property Team on 01782 652300.

  4. If you pay ground rent to Estate & Management Ltd, you should read this!

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    There can be many issues with the legal aspects of leasehold properties, and one recent proposal will go some way to resolving problems caused by “doubling ground rents”.

    Doubling ground rent is where a ground rent payable under a lease, doubles over a relatively short period of time, usually every 10 or 15 years. Over a long lease this can mean that a very large amount of ground rent will become payable.

    Leases of with this type of clause in them are essentially unsellable and/or un-mortgageable. Usually the leases have to be varied to amend these clauses through a deed of variation, which can be costly and can take some time.

    Estates and Management Limited (E&M) are managing agents for a large number of freehold investment companies, and collect and administer ground rent on their behalf.

    Recently, E&M have written to the leaseholders of leases where the ground rent doubles more frequently than every 20 years offering to enter into a deed of variation on a voluntary basis, and to pay the legal costs of leaseholders.

    This resolves this problem with the leases, free of charge to the leaseholders, at a time more suitable and less stressful than when you are trying to sell or mortgage the property.

    If you receive a letter from E&M or similar management companies, please contact Tinsdills for advice on 01782 956123 or complete our contact form.

  5. Top Tips for a Swift Property Sale Process

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    Buying and selling houses is stressful.

    The rules and procedures when buying and selling houses are complicated and can often become a minefield for clients. Sometimes the professionals involved forget that the back story to the transaction is you making one of the biggest decisions and financial commitments of your life.

    Over the years, many attempted solutions to ease the process – like “Home Information Packs” for example – have been put in place, with varying degrees of success.

    Whether we like it or not, Covid has changed the market and the way that the service is delivered forever. The lack of housing stock combined with high demand and the momentum still retained from the lifting of lockdown restrictions means that matters can move very quickly in the first instance.

    In order to ensure the process of selling your property is as swift as possible, here are some top tips to keep in mind:

    • Where are the deeds? The Land Registry says that 87% of the land mass of England and Wales has a registered title. That means that 13% doesn’t have an electronic record of ownership and so needs old paper deeds to prove ownership. If a house has changed hands since 2003, the title to the property will be registered at the Land Registry and it is very easy for the solicitor to check this. In most cases title registration commenced with purchase transactions in the late 1980s.

    • If the title isn’t registered, and you need to produce the deeds, establish where they are. They could be with a bank or building society, as security for a mortgage or just for safe keeping, or with a firm of solicitors, perhaps even with your Wills. Locate these deeds and ask your solicitor to look at these to make sure that they are complete, include all of the land that you are selling, and that you won’t have a problem when you come to sell.

    • You don’t need to have a registered title to sell a property and it shouldn’t take any longer because of this. You don’t need to register your title before you sell.  You do, however, need to have some evidence of title and occasionally deeds are lost or destroyed. If you can’t find the deeds, speak to your solicitor regarding the restructure of the title at the Land Registry. This can take some time, even if the application to restructure is expedited by the Registry, and so you need to move quickly on this if you intend to sell.

    • If the title is registered, it may be subject to a restriction. This is a requirement that must be complied with before the purchase can be registered at the Land Registry. Typical restrictions involve a management company on a development where there are common areas to be maintained, and so if you pay any annual payment, there may well be a restriction on the title. Speak to your solicitor to see if there is any action to take at this stage regarding information that will be requested by your buyers’ solicitors regarding this during the course of the sale.

    • If you’re selling an apartment or leasehold house, ask the solicitor to look at the lease to ensure that its terms will be acceptable to any potential buyers. The law is in a state of change in this area and leases which were acceptable a few years ago may be problematic now. If any potential issues are resolved at an early stage, a prompt and cost-effective resolution may be achieved in anticipation of this being raised by the buyers. Also provide the solicitor with information regarding the present ground rent and service charge to see if any action should be taken with this information at an early stage.

    • If you’ve had works carried out at the property, please ensure that you can locate the relevant certificates for these works. This isn’t just planning permission, listed building consent and building regulations consent, but certification regarding replacement windows, gas installations, electrical work and multifuel appliances, like log burners. Make sure that you have all relevant guarantees to hand, and if you have solar panels that you have contacted the energy company to ask what their requirements are on a sale. If you can’t find this, ask your solicitor what action you should consider taking. If you have any form of indemnity policy speak with your solicitor to ensure that you are not intending to take any steps which would invalidate that policy.

    • If the property is less than 10 years old, ensure that you have the relevant structural guarantee documentation available, such as the NHBC guarantee and the local authority consents and supporting documentation for the construction of the property.

    • Finally, check with the solicitor how the move will affect your Will and if your Will needs to be updated in any event.

    In short, if you are thinking about moving house, speak to your solicitor at an early stage, to see what action they recommend so that you stay “ahead of the curve”, and head off any delays that could arise, whilst time is on your side.

    We recognise that getting you where you need to be is a team effort between you and us.

  6. Solar Panels and “Rent a Roof”

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    According to government information, nearly 1,000,000 properties have solar panels and, with the cost-of-living crisis and international events leading to a future reliance on renewable or green energy, the numbers are set to increase rapidly.

    There are 2 ways that you can have the benefit of solar panels and the energy payments that they generate.

    The first way is to buy the panels outright, sometimes with an extension on your mortgage. You need to check that your household insurance allows this, that your lender agrees to it and that the relevant building regulations documents, and where applicable planning permission, is obtained. You should also take early professional advice from a surveyor to ensure that the structural integrity of the property is not affected by the installation of the panels.

    If you own the panels, and you are considering selling your property, you should contact the Feed In Tariff provider, which for newer systems is known as the Smart Export Guarantee, to ascertain what their requirements are to transfer the benefit of the panels to your buyer. Your deeds won’t mention the panels and they will be included in the sale of the property.

    However, if you don’t own the panels, but lease them under a “rent a roof” scheme, there may be more complications on a sale, and it may be advisable to take legal advice to ensure that the legal position of the panels is as it should be. Under schemes such as these, the homeowner gets the free electricity generated by the panels but doesn’t get the benefit of the Feed in Tarif, which is paid to the owner of the panels.

    Rent a roof schemes are not as popular as they used to be, because the reduction of Feed in Tariff payments in 2019 made them less attractive as an investment; however, new schemes such as Solar Buy Back or Solar Equity Release may mean that arrangements like this make a comeback.

    The point being that as the leases for said schemes were usually for 25 years, there are lots of properties that still have this arrangement.

    The length of the lease creates the first potential issue, because leases of this duration must be registered at the land registry so that they are noted on your deeds. We have encountered several instances where this has not taken place, which means that before a sale can proceed, the lease has to be registered at the land registry. This isn’t particularly difficult or time consuming, and the advantage of the land registry’s expediting procedure can be used, but it is one more thing to add to the stress of moving house that could be avoided by taking early legal advice.

    Similarly, not all leases are the same, and some of the earlier leases may not be compliant with your buyers building society requirements. This is resolved by a deed of variation on the lease, which is time consuming and, in some cases, expensive. Again, taking early legal advice could avoid this issue.

    Finally, even though the panels are rented, you still need to find out what the owner’s requirements are, and any fees that may be payable on the sale of the property.

    At Tinsdills we have property experts who can help with all these matters and can provide you with practical advice to help, promptly, if any issues like this are encountered.

  7. When does a residential transaction become commercial?

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    Kelly Myatt, Director and solicitor specialising in residential, commercial and agricultural transactions is often asked to deal with “in-between” jobs. 

    These types of jobs on first appearance seem residential in nature, however, hidden in the depths of the detail can often be commercial elements.

    An example would be the purchase of a residential property situated on a large plot of land. The plot of land and arguably the existing dwelling has potential for development.  What first appeared to be a straightforward purchase of a residential property now has a fresh direction. Dealing with a property of this nature, we would request, review and report on replies to both residential and commercial standard enquiries. Due diligence would be carried out, not only on the existing dwelling, but also on the potential development of the plot, including whether any planning permissions have been secured, and if so, of what nature and to what extent. We would also review and assess to what extent any planning permissions have been implemented or commenced by the current owners. Furthermore, search results would also be considered carefully to ensure there is no adverse impact on any future development and/or plot sale.

    Thinking ahead, once purchased and if developed or additional dwellings are built on the land, we could have a site to “set up” which would turn into plot sales of the individual dwellings. Having first-hand knowledge of the site in this instance is incredibly beneficial and can save time and expense.

    A further example of a “hybrid job” could be the purchase of an HMO (Home in Multiple Occupation). A property used by the occupants as a home but owned by the registered proprietors as a commercial investment. The purchase of an existing or potential HMO has both residential and commercial elements to be carefully considered including planning requirements, health & safety, and fire risk requirements. Again, due diligence would be carried out on both the residential and commercial elements of the property and a full and comprehensive report prepared so that the buyer has the full picture before committing to purchase.

    Aside from the legalities of the transaction itself, is the Stamp Duty Land Tax (SDLT) position. Whilst we are not tax experts we do submit and file returns on behalf of our clients and therefore have a basic understanding of the difference between residential and commercial transactions for SDLT purposes. The devil is in the detail. There is a lot of guidance available from HM Revenue and Customs to assist in ascertaining whether residential rates of SDLT or commercial rates of SDLT apply to the transaction. In some circumstances, we will advise that you take specialist SDLT advice if we consider it appropriate to the type of transaction.

    In short, it is often difficult to decipher what type of transaction a job will be until you are into the detail of it. Kelly’s background in both residential and commercial transactions can bring unique experience and perspective to the job which could save time and cost. Feel free to contact Kelly on 01782 652323 for further detail.

  8. Don’t be shy! A guide for house purchasers

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    We have all done it, there is that moment when you step into a house and think “this is the one”. It’s that perfect mix of location, price and size that makes this house the one that you want. But there is an awful lot that happens between that first buzz and picking up the keys. 

    Despite that emotional connection, taking a step back and really looking at what you are buying is essential. The Title of this article is “don’t be shy” and that should be your guide. Visit the property as many times as you need to ensure that the property is right for you. Let’s look at what you should be looking for.

    Surveys

    Surveys are very important. There are three types of survey: a valuation (normally carried out by a Lender), a homebuyers survey and a building survey. A valuation merely ascertains the current value of the Property and is undertaken by your Lender; a homebuyers survey is a non-intrusive but comprehensive inspection of the property that highlights potential issues and provides advice on future works and repairs; and a building survey is an intrusive survey that looks at the structure of the building. It can be tempting to look at the cost of the more extensive surveys and rely on the Lenders valuation. However, especially during the pandemic, some Lenders have been using remote desktop valuations that involve no physical inspection of the property. The cost of a more comprehensive survey should be seen as an investment: serious issues can be brought to light and price reductions can be negotiated for extensive works that are required. A homebuyers or building survey can also provide a guide for future repairs and works that will be needed over time. 

    Gas and Electrical Reports  

    It is not mandatory for Sellers to provide up to date gas and electrical reports for a property and whilst it has been suggested that the Government legislate for this, there are no current proposals to do so. It may not be mandatory but always ask your solicitor to check if the seller is prepared to have these reports carried out. The boiler and the electrics at the property are essential and repairs can be costly. Any repairs highlighted by the report could either be carried out prior to exchange or a price reduction could be agreed to cover the costs. 

    Outside the Property

    Taking a good look at the outside of the Property is also vital. Take a note of any changes to the building and highlight these to your solicitor. Often sellers fail to include information about historical alterations as they were carried out before their ownership so any additional information you can provide will also be welcomed by your solicitor. Your solicitor can then check if the works were carried out with the appropriate consents. 

    Boundaries

    The fenced boundaries are also important so take a copy of the legal plan supplied by your solicitor with you to the property and check that the fenced or walled boundary matches the plan. Does the Seller use any additional land, is the property accessed via ginnel or small passageway at the rear? You can discuss any issues you found in your inspection with your solicitor. 

    Final Inspection

    During the pandemic skilled tradesman were busier than ever and sometimes those small repair jobs that would be routinely carried out by a seller have been ignored. Before you exchange contracts have a final inspection: check that the showers are all running correctly, the water pressure is adequate, and that the radiators, electrical sockets and lights are all working. Ask for the heating to be switched on before you arrive so that you can check the boiler is working correctly. Sometimes when large furniture is removed, damage can occur so make sure the plasterwork and skirting boards have not been removed or damaged. If you have concerns following your final inspection raise them with your solicitor who can make appropriate enquiries on your behalf. 

    A house purchase is a marathon not a sprint and the aim for you and your solicitor should be to try and ensure that the feeling you had when you viewed the property the first time is matched when you walk in as the owner. As for the unpacking, there is no advice we can provide there other than to get stuck in. 

  9. Registered vs Unregistered Land: An Explanation

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    What is Registered Land? Properties kept on record by the Land Registry.

    What is Unregistered Land? A property with no details recorded at the Land Registry.

    Many people are unaware that there remains a substantial proportion of unregistered land in England and Wales. Currently, 14% of land in England and Wales remains unregistered.

    Compulsory first registration has been in place since 1925 and was gradually rolled out across England and Wales until it applied to all areas from 1990. Compulsory first registration means that when a ‘trigger’ event happens, the property must be registered with the Land Registry. These triggers include a transfer of the property (i.e. the property being purchased or sold), a new mortgage being registered, the property being inherited or the property being gifted. 

    In this blog post, we’ve outlined the differences between registered and unregistered land, including the benefits of owning a registered property. You’ll also find tips and advice if you’re involved in the transfer of an unregistered property or if you wish to register your property.

    Registered Land – Summary:

    The Land Registry keeps a register of all registered land. Each property is given a unique number that is used to identify the property. The Land Registry will also keep an individual register for the property which includes information about the property, information about the ownership and information regarding any mortgages or charges over the property. This is collectively referred to as the title information. 

    As the register for the property is updated any time an event happens that affects the property, it becomes a useful tool for conveyancers as all of the information is at their fingertips. The Land Registry charge a small fee for access to each property’s register. 

    Unregistered Land – Summary:

    Unlike registered land, there are no details recorded centrally to show the information surrounding an unregistered property. A search will be performed via the Land Registry by your conveyancer to identify whether the land in question is registered or unregistered. If the property is unregistered, no information will be held about the property, including who the owner of the land is. 

    When it comes to unregistered land, the owner must demonstrate their ownership of the property through what is called a ‘root of title’. This will provide information about the property going back at least 15 years (to be a good root of title) and hopefully showing the transfer of the property into the current owner’s name. It is very important to keep the deeds of unregistered property safe as these will be vital in showing a good root of title and providing your conveyancer with important information regarding the property. 

    Benefits of owning a registered property:

    1. Matters affecting the property and your ownership are well recorded and clear. The Land Registry provide you with a guarantee for your title and there are less likely to be issues arising in the future.
    2. If you are looking to sell the property, the property may be more likely to appeal to buyers’ if it is registered. The conveyancing process will also be much quicker and more straightforward in this respect. 
    3. If any deeds become lost, destroyed or stolen, your ownership of the property is protected. Anyone can access the Land Registry and see your recorded ownership. 
    4. The Land Registry require your identity to be verified before registering the property in your name. This provides greater protection against property fraud. 
    5. The Land Registry will also have a title plan on their records which will show the boundaries of the property. If any boundary disputes were to arise, this is something that can easily be referred to. 

    What if I am involved in the transfer of an unregistered property? 


    If you are selling a property that is unregistered, you will need to inform your conveyancer that this is the case as early on as possible. You will be asked to provide the deeds to the property (for reasons described above) and the transaction could take longer than if the property were registered. You may also be asked more questions in order to both prove your ownership of the property and to confirm that things present in the deeds are correct. 

    If you are purchasing an unregistered property then, it is worth noting that the conveyancing process can take much longer to complete, but you are unlikely to experience any issues other than a longer process. As the transfer to you will be a trigger for first registration, the property will also automatically be registered with the Land Registry upon completion. However, this process is likely to take much longer than if the property was registered and is more costly. 

    How can I register my property?

    If you currently own an unregistered property, you do not have to wait for a ‘trigger’ event to happen in order for your property to be registered with the Land Registry. As mentioned above there are many benefits to having the property registered as soon as possible. 

    If you do choose to register your property, this is known as voluntary first registration. The Land Registry fees for voluntarily registering your property are 25% lower than if you waited for a compulsory registration trigger. 

    If you would like to find out any more information regarding registration of property or would like the assistance of one of our experienced conveyancers then please contact our Client Service Advisors.

  10. A Guide To: Title Indemnity Policies

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    Title Indemnity Policies (also known as defective title cover or legal indemnity cover) are often used during the conveyancing process where a title defect is found with the property. A title is considered to be defective where there is a potential for a third party to establish a right or interest in the property which could either have a negative effect on the title or result in the owner losing the title of the property altogether. This can include anything from an absence of planning permission for any work carried out on the property, missing or lost title documents, a breach of a restrictive covenant to a lack of formal rights of access to the property.

    In appropriate circumstances, an indemnity policy can often be the most cost-effective and efficient way to deal with a title defect. It is a low-cost resolution that does not result in any delay, any adjustment in sale price or prejudice. The policy will protect the owner of the property (and the lender, if applicable) from the cost of defending any litigation, should a claim or enforcement be attempted.

    The policy will become effective after the payment of a one-off premium. The premium will usually be calculated based on the value of the property and the nature of the defect. Another benefit of using an indemnity policy is that they are usually automatically transferred to any future owners of the property and their lenders.

    Although indemnity policies are commonplace in many conveyancing transactions, there are a few things worth considering before proceeding.

    Title indemnity policies do not remedy the title defect itself. Indemnity policies only deal with defending enforcements.

    If a potential claimant under the indemnity policy is notified of the title defect, this will most likely result in the policy being invalid. For example, if the property has been altered without planning permission, no contact with the local authority should be made in order for the policy to remain valid.

    The policy used will cover the property in its current position when the policy is purchased. It will not apply to any title defects that arise after the policy is purchased, even if they come under the criteria of the policy. It may be possible, however, to purchase another indemnity policy for this title defect.

    If you wish to find out any more information regarding title indemnity policies or how one of our experienced Property Solicitors can assist you further, please contact our Client Service Advisors.