Category: Conveyancing

An updated fourth version of the LPE1 (Leasehold Property Enquiries) form has gone live. The changes are said to make the conveyancing process more efficient.

The lease coincides with a change in lender policies to enable them to lend on properties in remediation schemes, or those covered by leaseholder protections.

This LPE1 form includes a number of additional questions which cover :

• Whether the leaseholder deed of certificate has been served on the landlord in relation to the sale of the property or remedial works required?
• Whether a landlord’s certificate has been served?
• Where there is any outstanding enforcement action against the landlord or accountable person (as they will become known once Part 4 of the Building Safety Act 2022 is commenced), such as outstanding enforcement notices?

Law society president Lubna Shuja stated ‘ the forms were amended as part of efforts to ensure people wanting to buy or re-mortgage flats affected by building safety issues can access mortgage finance’.

The form also includes new requests for documents covering the leaseholder deed of certificate, the landlord’s certificate, and any known enforcement action taken.

 Definitions for the ‘leaseholder deed of certificate’ and the ‘landlord’s certificate’ have been added, and an amendment has been made to the definition of a ‘right to manage company’.

The updated LPE1 forms can be downloaded from trade/representative bodies’ websites.

Shuja also stated ‘the Law Society had also taken the opportunity to make process improvements to the TA13 completion information and undertakings form. These include arrangements for the seller to hand over not just the keys, but also any equivalent electronic devices, passcodes and alarm codes’

At Aston Bond, we  hope that this new procedure works in our interest and does indeed ‘ make the conveyancing process more efficient’ as the agency has promised.

HM Land Registry (‘HMLR’) are working on the agency’s latest initiative to tackle lengthy delays. For conveyancers this means that we could be required to confirm that information contained in applications to HM Land Registry are true.

The Law Society is working with the Land Registry to ensure that this process does not cause further pressure on solicitors.

However, the Land Registry believes that this approach will ‘improve trust in the application’. This procedure is in fat already adopted in land registries around the world.

HMLR has said the process will ‘… involve a regulated professional confirming that the facts stated in the application are true, to the best of their information and belief.’

‘For example, we will be asking them to confirm the transfer or mortgage has been executed and the transaction completed. HMLR will still make the decision as to whether guaranteed title should be registered. That is our responsibility. We will just ask for the facts about transaction. The legal professional will know the facts themselves or can find out from others in their firm.’

The president of the Law society, Lubna Shuja has said ‘We have been working with the Land Registry and others to ensure that no further risks will be assumed by conveyancing solicitors as part of the drive to automation. We are keen to see the results of the pilot and assess how the plans work in practise.’

At Aston Bond, our very own conveyancing team deal with communicating and making the appropriate Land Registry applications. We understand that it is crucial that all applications go through a procedure to ensure all information is true and accurate.

We hope that this new procedure works in our interest and does indeed ‘ improve trust in the application’ as the agency has promised.

For more information, please contact kconner@astonbond.co.uk

Conveyancing is the legal term for transferring ownership of property if you’re buying or selling.

A solicitor or conveyancer will handle all the legal aspects of buying and selling a property.

They will;

1. Handle contract & transfers
2. Give legal advice & guidance
3. Carry out standard local council searches
4. Deal with Land Registry
5. Transfer the money to pay for your property

A good conveyancer and their team will keep you updated regularly and can support you by answering questions about the process of buying a property.

At Aston Bond, we act for a variety of developers on residential sales ranging from single residential sites to larger developments.

Our residential property service is tailored to meet your individual needs and to pre-empt problems where possible through clear communication.

We understand the complex or tricky issues that are sometimes involved in residential property transactions, and we use a practical approach.

Buying a house can be stressful. But having a solicitor or conveyancer who can answer any queries can make it a lot easier.

For more information, please contact Kulbir Conner (Head of Conveyancing) on kconner@astonbond.co.uk

On 26 May 2020, the government announced amendments to Building Regulations Approved Document B (Fire Safety). These amendments affect blocks of flats and form part of the government’s response to the Grenfell Tower disaster.

Under present regulations, the trigger height for when sprinklers are required in a block of flats is 30 metres. However, from 26 November 2020 sprinkler systems will be required to be installed where a building is 11 metres or taller. These sprinklers should be provided within the individual flats.

The updated amendments also provide a new provision for wayfinding signage for the fire service. The government have stated that each floor in a block of flats more than 11 metres above ground level should have floor identification signs and flat indicator signs provided.  Such signs should be located on every landing of a protected stairway and every protected corridor/lobby in a format and at a height that makes them easily visible.

The full amendments can be found at:

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/887210/AD_B_2019_edition__May2020_amendments.pdf

The Energy Performance of Buildings (England and Wales) Regulations 2012, known as the EPB Regulations, make it a legal requirement to have a valid Energy Performance Certificate (EPC) when a property is constructed, rented out or sold.

With the current ‘lockdown’ and social distancing rules in place, it may be wondered whether this legal requirement remains in force and how it can be complied with under current circumstances when you intend to sell or grant a lease of your property.

Guidance issued by the government confirms that the legal requirement to obtain a valid EPC before selling or letting a property remains in place, for both domestic and commercial premises. The position has not been relaxed due to the current Covid-19 pandemic.

Where a property remains vacant, it should be fairly straightforward to arrange for an EPC assessment to be carried out that complies with the social distancing guidelines.

However, where a domestic or commercial property is occupied, either by the owner or tenants, more consideration is required to ensure an EPC assessment is carried out in accordance with the social distancing guidelines and in a manner that is safe to all parties involved.

Government advice is that that any energy assessments should be conducted in accordance with the following:

• Government advice on staying alert and staying safe during this period
• Government advice on working safely during Covid-19
• Government advice on moving home during the Covid-19 outbreak

This may involve measures such as the occupiers of the property temporarily vacating the property whilst the assessment is carried out, ensuring the person carrying out the energy assessment wears a facemask and appropriate PPE, and wiping down any surfaces the energy assessors has been in contact with. 

Suggestions include:

• Assessors communicating with households prior to any visits to discuss how the work will be carried out to minimise risk for all parties.
• No assessments should be carried out whilst an individual within the property is isolating with symptoms. Unless it is to remedy a direct risk to safety.
• Prior arrangements should be made to avoid any face-to-face contact where possible.
• In properties occupied by a tenant, landlords should consult with the tenants to ensure there is no one at the property showing symptoms, self-isolating, considered clinically extremely vulnerable or shielding.

June 2019 brought in new legislation called the “Tenant Fees Act” which introduces a series of rules on what tenants can be charged for by landlords and letting agents.

So what does this new legislation mean for renters?

Well, firstly the Tenant Fees Act will apply to new tenancies and renewals of tenancies. This’ll eliminate those pesky and sometimes unfair admin fees which are notorious, additionally tenancy deposits will now be capped to five weeks.

So what can a landlord or letting agent now charge you for?

• A refundable “holding deposit” (of up to a maximum of one week’s rent)
• Deposits now have a maximum of 5 week’s rent for annual rent below £50,000, or 6 weeks’ rent for annual rental of £50,000 and above)
• Utilities and communication services; Internet, TV licence, council tax, telephone, etc..
• Replacement costs for things like keys and security.
• Contractual damage costs for repair.
• Payment for tenancy agreement changes. Like change of sharer, this is capped at £50 or, if higher, any reasonable costs.
• Early termination of tenancy (Capped at landlord’s loss or the agent’s reasonably incurred cost)
• Interest payments for the late payment of rent (up to 3% above Bank of England’s annual percentage rate)

What can a landlord or letting agent not charge you for?

• Admin costs will no longer be a charge.
• Check out and renewal fees.
• Cleaning fees, unless there is certain proof that the property requires a deep clean.
• Reference checks, credit checks, guarantor requests and insurance policies.
• Gardening services.
• To view a property. 

Importantly, the legislation state that unless a fee is listed as one of the permitted fees, it will not be allowed.

If you’re interested in reading the full legislature, then follow this link to the Tenant Fees Act 2019

But remember, the Act states that landlords or letting agents do not need to pay back any fees which were charged before 1st June 2019. This also means fees which are added contractually like checkout or renewal fees past the June date still stand.  This lasts until May 2020.

Additionally if an agent or landlord breaks the Tenant Fees Act it shall be counted as a civil offence and could land them a fine of up to £5,000.

It is particularly important for landlords to be aware of and consider these changes in the future.  Especially so as landlords who have charged an unlawful fee will not be able to evict a tenant until they have repaid these fees. Failure to comply with the legislation can therefore have serious ramifications.

If you require further advice on your obligations as a landlord, please contact us on 01753 486 777 to discuss your issue.

On the 20th March 2019, a new law came into force to make sure that rented houses and flats are ‘fit for human habitation’.  Essentially, this should mean that they are safe, healthy and free from things that could cause serious harm.  This new law will help tenants and make sure irresponsible landlords improve their properties or face prosecution – landlords could be served with a penalty notice to improve and/ compensation to the tenant if found to be in breach.

The Act references a number of other acts (primarily the Landlord and Tenant Act 1985 and the Housing Act 2004) in relation to what could constitute the term “unfit for human habitation”.  This does not make it ideal for light reading but has meant that the breadth of definitions has been increased so as to cover a wider variety of matters.   There is however a further criteria which also needs to be met which states that the property is only unfit for human habitation if “it is so far defective in one or more of those matters that it is not reasonably suitable for occupation in that condition”.  Ultimately, it will be down to a Court to decide and no doubt case-law will shape these distinctions with time. An example of the matters which would be considered as defects are listed below, although it is important to note that any prescribed hazard” – which means any matter or circumstance amounting to a hazard acts as an effective catch-all and means the list below is not exhaustive.

Matters which would be considered as defects

Damp and mould growth	Food safety (inadequate provisions)
Excess Cold	Personal hygiene, sanitation and drainage
Excess heat	Water supply
Asbestos and MMF	Falls (baths, between levels, level surfaces and stairs)
Biocides	Electrical hazards
Carbon monoxide and fuel combustion products	Fire
Lead	Flames, hot surfaces etc
Radiation	Collision and entrapment
Un combusted fuel gas	Explosions
Volatile organic compounds	Position and operability of amenities etc
Crowding and space	Structural collapse and falling elements
Entry by intruders	Lighting
Noise	Domestic hygiene, pests and refuse

Tenants can rely on the Homes Act immediately if they signed the tenancy agreement on or after 20th March 2019.  For those that signed before 20th March 2019, the Act will only be enforceable from 20th March 2020.  After 20 March 2020, everyone who has a secure or assured tenancy, a statutory tenancy, or a private periodic tenancy, can use the Homes Act regardless of when their tenancy began. Anyone who is still on the fixed term of a private tenancy that began before 20 March 2019 cannot use the Act until the end of that fixed term.

Furthermore, the Homes Act only applies to tenants in England and does not cover people who have ‘licences to occupy’, instead of tenancy agreements i.e. lodgers.

Exceptions the landlord is not responsible for:-

– Problems caused by tenant behaviour

– Events like fire, storm, floods (sometimes called ‘acts of god’)

– The landlord will not repair your possessions or furniture belonging to previous tenants

– If the landlord hasn’t been able to get permission or access from certain other people.

Inspection

In order to assist the landlord in fulfilling their obligations to ensure the property meets this new criteria, there is also an implied covenant that the landlord may enter the dwelling for the purpose of viewing its condition and state of repair although this is only permitted –

• at reasonable times of the day, and
• if at least 24 hours’ notice in writing has been given to the occupier of the dwelling.

Your kids have fled the nest to attend University – to study and get a “good job”. Then, they graduate, but have been struggling to get the job they hoped for and subsequently they return home, unable to take that first step onto the property ladder. This move back home can be very stressful for both children and parents, especially when lifestyles have adapted to the new environment.

You decide you would like to do something to help your child, but all your assets are tied up in your property. Someone mentions a “Transfer of Equity”, whereby you could transfer some or all of the property’s assets to your children and that way, they would have something of their own.

In this case, there are a few matters you need to consider: firstly, the Tax implication of making the Transfer; and secondly, whether your child would be able to draw up a second charge on your property in order to purchase another of their own. Assuming your child is able to obtain the finance for their new property, have you considered what would happen should your child be unable to repay the 2nd charge on your family home? In addition, have you considered the Tax implications? At the very least, there are possible Inheritance Tax implications for you transferring a share of your family home to your children as well Stamp Duty Land Tax considerations for your children as they will be deemed to own two properties.  What if your child becomes bankrupt in the future? The share of your property which they own would automatically form part of their estate and it would be for the trustee in bankruptcy to distribute, along with anything else your child owns, in accordance with their duties.

All of the above factors, and more, need to be considered. This has become an increasingly common situation in today’s property market and we work together with our clients, tailoring our services to their individual needs. If this has raised any queries concerning your personal situation in relation to a potential transfer of a property, Inheritance Tax, Trusts, or you simply find yourself in a position to purchase your first property – we are here to help!

Nicola Darby

Conveyancing Secretary