What do I do if my buyer doesn’t complete?

When buying or selling a property, it is important to adhere to the contractual date and time for completion. Failure to do so, particularly where a chain of transactions is, can lead to chaotic results.

If a buyer fails to complete, you can pursue various remedies such a court order for specific performance, or an order for sale in the county or high court. If you wish to pursue a remedy in equity, you can also apply for an order for specific performance. Ultimately it will depend on what your end goal is. Continue reading “What do I do if my buyer doesn’t complete?”

What do I do if my buyer doesn’t complete?

When buying or selling a property, it is important to adhere to the contractual date and time for completion. Failure to do so, particularly where a chain of transactions is, can lead to chaotic results.

If a buyer fails to complete, you can pursue various remedies such a court order for specific performance, or an order for sale in the county or high court. If you wish to pursue a remedy in equity, you can also apply for an order for specific performance. Ultimately it will depend on what your end goal is.

If the buyer is unable to complete due to death or any other factors that can amount to a delay but not a failure to complete, the seller may not wish to rescind the contract or apply for an order to complete, immediately.

If the sale does eventually take place, the seller can then claim against the buyer for damages incurred due to the delay, such as rearranging removals and storage costs.

If, however, the buyer cannot complete for any reason, the seller can retain the buyer’s deposit and resell the property. The seller can then claim for any losses he may have suffered due to the failure to complete.

The most appropriate remedy will depend on the buyer’s situation and whether or not the buyer has the financial ability to reimburse the seller for any damages.

If you find yourself in a situation like this, our experienced team of solicitors at Aston Bond can advise you on the best course of action to take, depending on your situation. Call us today on 01753 486 777 or email us at info@astonbond.co.uk.

 

Amarjit Atwal, Trainee Solicitor 

aawal@astonbond.co.uk

Good news for home-buyers at last! Stamp Duty Fee’s reform

Infographic Stamp Duty - Aston Bond Law FirmClick here to see the infographic in full size

 

Home buyers will be pleased to hear that there is good news for them at last (apart from having wonderful solicitors). Stamp duty will now be banded in the same way as other taxes, so you will now not be moving into a higher percentage rate just because you pay £1 more for your property!

The bands are as follows:

£0 – £125,000 – no tax payable (as now)

£125,000 – £250,000 – 2%

£250,000 – £925,000 – 5%

£925,000 – £1,500,000 – 10%

£1,500,000 upwards – 12%

Below are some examples:

As before no tax payable on property at £125,000.

On a price of £185,000 the first £125,000 is tax free and 2% is charged on the remaining £60,000 – this gives a total of £1,200, a saving of £650 on the present system.

On a price of £510,000 – the first £125,000 is tax free and 2% is charged to £250,000. Then between £250,000 and £510,000, a charge of 5% takes place. This gives a total of £15,500 with a saving of £4,900 on the present system.

It is estimated that this will benefit 98% of people who pay stamp duty, with it being more expensive only for those in the higher price bands.

Here is a link to a fantastic stamp duty calculator that breaks down exactly the percentage you’ll pay under the new system: Stamp Duty Calculator

 

 

Helen Barnard, Senior Solicitor

hbarnard@astonbond.co.uk 

Notice to complete – A contract’s teeth

To ensure parties to a contract for the sale or purchase of property or land complete on the date set in the contract for completion, there is usually a contractual condition covering what happens if either party does not complete on the completion date or by the completion time.

If completion does not take place on the correct date and by the correct time, the party not in breach will have their solicitor serve on the defaulting party’s solicitor a notice to complete, making time of the essence. This is usually 10 working days after service (depending on the contract conditions) and will require the party in breach to pay interest until completion takes place. Depending on contract conditions this may involve other payments on a daily basis until completion takes place.

If the defaulting party pays the amount before the expiry of notice, completion takes place, and the parties move on the date when breach is paid.

If when the notice expires the contract remains uncompleted, then the party not in default may terminate the contract and forfeit the deposit, and claim damages for any losses that may have occurred and which are covered by the contract if the buyer does not complete. However, if the seller does not complete, then the buyer will have to recover their deposit and claim damage flowing from the breach such as abortive costs and the cost of finding alternative property to buy etc.

Your solicitor will have to advise you if a transaction does not proceed after the breach and this may include other remedies such as specific performance and prevent other parties buying in place of the innocent party.

For all your property needs, contact our friendly team of solicitors at Aston Bond on 01753 486 777 or come down to our offices at Windsor Crown House, 7 Windsor Road, Slough, SL1 2DX.

 

Nick Powe, Senior Property Solicitor

 

When completions go wrong for silly reasons

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Recently we were acting on a sale and purchase of a property. The sale completed by 11am and the money went to the seller’s Solicitor via the banking system at 11:15. This went into the solicitors client account and the clients were notified by the seller’s solicitor in the usual way. At 12 noon, the seller’s solicitors informed us they had not yet got the money but promised to check with their bank see why it had not reached them. By 12:30 they said that no money had yet been received, and could we check whether it had been sent by our bank, which it had. We asked the sellers Solicitor to check the account number they had given us. They then realised us that they had given us the wrong client account number, and still could not release the keys until the funds were received by them, even though the error was theirs. It then took over 2 hours without the client being able to move, and for our bank and the seller’s Solicitors bank to sort out the issue. The problem all stemmed from one error; the seller’s Solicitors providing the incorrect account number.

Finally the banks found the money in the incorrect account, and moved it to the seller’s Solicitor. Completion then took place a few hours later, due to a simple error which involved many calls, emailing and took up far more time than it should have. This also delayed the buyer’s removal company from doing their job as intended, due to the long delay.

The conveyancing process is made far more difficult when human errors are a factor, and the solutions to such issues is often complicated and time consuming.

 

Nick Powe, Senior Property Solicitor 

npowe@astonbond.co.uk

Problems with Passages

Flying freeholds exist where two freeholds overlap with one another. Problems can occur when common passageways exist, particularly in ex-council owned properties. Passageways providing access to a rear garden or parking area were often built underneath houses, with a separate passageway above. They were built in this manner to cut costs, and while they don’t usually pose a problem when the property is rented, it can become difficult when the property is sold under the ‘Right to Buy’ scheme.

 

passageway communal gardens passage

Potential problems that can occur

  • Passages only work if used for the purpose intended and whilst there is cooperation regarding maintenance, repair and access.
  • Putting a padlock on the access to the passage may be useless to other owners and may prevent sales.
  • Lack of use may mean the access is lost due to being abandoned by a user over a long time period and may become difficult to reinstate when it comes to the sale.
  • Changes in lifestyles, for example when a shared driveway is in use, can prevent a house being extended.
  • People may not be using the shared parking areas as intended, for example they may be parking unused or abandoned vehicles there.
  • Drastic action in the courts may be necessary to regulate but could be expensive.

The above is not a comprehensive list, as anything shared by unrelated people can cause problems in the future as disputes have to be notified when a property is sold.

 

Solutions for purchasers

There are ways for purchasers to get around this issue of flying freeholds:

1. Purchasers can enter into a Deed of Mutual Consent with others who use the property, but this is cumbersome as both parties have to be available to sign when each property is sold. This method also relies on co-operation between the property owners, which isn’t always forthcoming.

2. Flying freehold indemnity insurance covers lenders for any loss in value incurred as a result of a lack of maintenance or repair of the adjoining property. It is a cheap fix to cover future sales with only top-up cover needed during the policy term.

3. The Access to Neighbouring Land Act 1992 can allow access to the other property for the purposes of a quick maintenance or repair but it is imperative that the other property is not improved or disturbed.

 

For help with your property matters, contact Aston Bond today by popping into our offices at Windsor Crown House, Slough, SL1 2DX or giving us a call on 01753 486 777.

 

Nick Powe, Senior Property Solicitor

How to Buy a Flood Proof Home and Avoid Flood Damage

The flooding disaster across the country at the moment is devastating lives, destroying properties and testing local communities to the extreme.  Many people believed that their properties would be safe from river flooding but instead many are being affected by ground water levels rising above the surface of the land.

When purchasing a property, there are certain steps you can take to assess whether the house is built on land that has a risk of flooding.  An environmental search, which is mandatory when obtaining a mortgage, will identify the initial issue of flooding and will suggest whether it is necessary to carry out further searches.  A specific flood search can be carried out which identifies multiple causes of flooding within a certain number of years, and the risk of any flooding occurring in the future.

Many local council websites contain a plethora of information on an area, so it is always helpful to look there for any information too.  Even looking at an ordinance survey map of the local area can reveal whether the property is situated on flat land or on higher ground.

Global warming may be a truth or a myth, but our planet does appear to be rising in temperature which in turn is causing sea levels to rise.  In a world where flooding is becoming a major issue for all, researching flood risk is now becoming essential when looking to buy a property.

Aston Bond’s conveyancing solicitors in Slough can help you make the right decisions when trying to buy a property that may be affected. Our conveyancing solicitors assist clients across England and Wales including Windsor, Datchet and along the Thames Valley.

For more information on how our solicitors can assist you please call us on 01753 486 777 or email info@astonbond.co.uk.

Francesca Shaw, Conveyancing Assistant

fshaw@astonbond.co.uk


Aston Bond’s solicitors in Slough specialise in conveyancing. If your buying or selling a property please contact our specialist conveyancing solicitors by emailing info@astonbond.co.uk or calling 01753 486 777. Alternatively, you can visit our offices at 135 High Street, Slough, Berkshire, SL1 1DN.

When to Make an Insurance Claim on Damaged Property and/or Contents after a Flood

As the United Kingdom endures the highest amount of rainfall for over 200 years residential and commercial properties across the country have been severely damaged, as have the contents within them. However, if you were lucky enough to have prepared for the recent UK floods the likelihood is that you invested in property insurance and/or contents insurance.

Within this blog post I will advise you on when and how you should make a claim to your insurance company and how to gain the highest pay-out when the water recedes.

Firstly, the most vital part of any insurance claim after a flood is the initial contact and the time between the initial damage and the initial contact with your insurance company.

While individual insurers will have their own terms and policies in place it is recommended by industry experts that you make the initial contact by telephone within 24-hours of the initial damage. Furthermore, it is also recommended that you call the insurance company regularly to advise them on any further developments such as further damage to property or contents.

Once you have made the initial contact the insurance company should open a claim. At this point you will be contacted by an independent loss adjuster who should contact you within a 24-hour period after you made the initial contact with the insurance company.

The loss adjuster will then arrange an assessment to take place, and during this assessment the loss adjuster will document any damage caused and may in some circumstances require the opinion of a qualified building professional that will be able to provide further advice on the costs and importance of the damage caused.

However, you should always ensure that the loss adjuster is both independent and qualified, as are any professionals they consult with. You should also ensure that the damage assessment is made after the flood waters have receded as this is when the overall damage is visible and measurable.

Moreover, if you have undertaken any repairs before the initial assessment takes place you should ensure that you keep all receipts and the contact details for the professionals you hired to undertake the work; and you should ensure that you have taken pictures of the damaged caused and keep it in case it is required at a later time during the claims process.

Once the initial contact has been made and the assessment has been successfully undertaken the insurance company will calculate the amount you are entitled too. This price will often be dependent on both the amount of damage caused and the cover you have. It is then your decision to accept or decline any offer which is made to you by your insurance company.

And finally, our team of solicitors in Slough would like to wish all property owners who have been effected by the recent UK floods luck with their insurance claims.

Ashton Hudson, Online Marketing Executive 

ahudson@astonbond.co.uk


Aston Bond Solicitors in Slough assist clients across Datchet, Windsor and the Thames Valley with litigation matters between property owners and insurance companies. If you believe your claim has been wrongfully denied or you have not received the correct amount please contact our solicitors by emailing info@astonbond.co.uk or calling 01753 486 777. Alternatively, you can visit our offices at 135 High Street, Slough, Berkshire, SL1 1DN. 

Conveyancing assistant/secretary role

Aston Bond are now accepting applications for a new position at our Slough based law firm. The new position, conveyancing assistant/secretary, is open to individuals with experience within the industry. Look below for more information on the position.

We are a growing full service law firm in Slough. We are currently recruiting a conveyancing assistant in our rapidly expanding conveyancing department.

Day to day responsibilities will be to assist fee earners. Experience is needed in the following areas:

  • Dealing with post exchange work i.e. dealing with mortgage companies and clients
  • Preparing draft completion statements
  • Pre-completion searches
  • Attending to completions
  • Dealing with stamp duty and registering at the Land Registry
  • Dealing with clients and third parties by telephone and e-mail

Role is suitable for a legal executive, part qualified legal executive or an experienced legal secretary.

Job type: permanent, full-time
Date posted: 28 November 2012
Salary: competitive
Start date: immediate

To apply or enquire about this role, please send a CV and cover letter to Stephen Puri by e-mail to spuri@astonbond.co.uk.

Dion McCarthy, Litigation & Employment Solicitor Advocate

dmccarthy@astonbond.co.uk


Our Solicitors in Slough can be contacted by calling 01753 486 777 or emailinginfo@astonbond.co.uk. Alternatively, you can visit our offices at 135 High Street, Slough, Berkshire, SL1 1DN.

Point of No Return in a Property Sale

English Law prescribes that until contracts are exchanged or an auction property is “banged down” there is no binding agreement.

Therefore, the excitement of buying or selling a property means nothing and no plans or celebrations should take place until your solicitor tells you the magic words, “contracts are exchanged” or you have succeeded with a bid at auction.

Until that happens either party can run up expenses such as surveys, searches or legal costs without any security that the property is successfully bought and either party can change their mind without having to pay any compensation to the other party as can anyone in the “chain”.

Nothing the selling agent tells you is binding until the exchange of contract has occurred and celebrations mean nothing. Just because the selling agent says the seller or buyer has accepted your offer, it is “subject to contract” and therefore not binding until the contracts are exchanged.

Aston Bond conveyancing solicitors specialise in buying and selling property as they know what these phrases mean.

Nick Powe, Senior Property Solicitor

npowe@astonbond.co.uk