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Monthly Archives: May 2011

Uplift in Fees on Winding up and Bankruptcy Petitions

With effect from Wednesday 1st June 2011 and pursuant to The Insolvency Proceedings (Fees) (Amendment) Order 2011 the Official Receiver’s deposit collected by the court on the presentation of any winding-up or bankruptcy petition will increase as follows:

  • in relation to a winding-up petition in respect of a company, the deposit will increase from £1,000 to £1,165
  • in relation to a bankruptcy petition in respect of an individual to be presented by the individual himself, the deposit will increase from £450 to £525
  • in relation to a bankruptcy petition in respect of an individual to be presented by a creditor (which includes a petition that is presented by the supervisor of a failed voluntary arrangement) the deposit  will increase from £600 to £700.

 

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Builders’ call on planning may boost residential conveyancing

House-builders have welcomed a report on the National Planning Policy Framework (NPPF) which says the Government and local authorities must take the opportunity to change planning regulations to tackle the housing crisis with a consequent boost for construction of new homes and residential conveyancing.

In making its recommendations, the building professionals’ Practitioners Advisory Group stresses the acute house shortage in the UK with building at its lowest level for 90 years, first-time buyers unable to become home owners because of the shortage of mortgage funds and five million people on social housing waiting lists wanting to move to accommodation appropriate for their needs.

It emphasises the additional importance of home sales in boosting economic recovery in the UK because of the hundreds of thousands of jobs created by the building industry and consequent work for all those involved in the property market.

The official NPPF draft will be published in July. It has been described by the executive chairman of the Home Builders’ Federation, Stewart Baseley, as the most important planning legislation since the 1947 Town and Country Planning Act.

“If Government is serious about tackling our housing crisis, now is the time to prove it.  It needs to deliver a planning system that creates real economic growth alongside the homes our country desperately needs,” he said.

The Practitioners’ Advisory Group suggests local authorities should produce a strategic housing market assessment to establish the need for affordable housing in their area, and work with the business community to identify areas of growth. Local authorities should then produce one local plan, rather than the current planning frameworks.

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Malta goes to the polls to decide on divorce law

Malta is the only member state of the European Union which has not introduced divorce law into its body of legislature and, with the Phillipines, is one of only two countries in the world which does not allow spouses to legally end a marriage

Married Maltese couples are able to legally separate – and there are rules and procedures for financial settlements and maintenance payments – but they are not allowed to marry any further partner as they remain formally joined to their original spouse.

However, all this could soon change, as the country is about to vote in a referendum on the subject.

Pro-family campaigners in the tiny country of just 400,000 residents have said it could cause a sudden surge in family break-ups and cause an “unhealthy” society, but, despite the population being 95% Catholic, the island nation is divided and the outcome is far from clear cut.

The ballot paper will pose the following question, “Do you agree with having the option of divorce for married couples who have been separated for four years when there is no reasonable hope for reconciliation, and when adequate maintenance is guaranteed and the children are cared for?”

The “No” vote is being championed by the Church and the conservative, Nationalist-run government, while the Labour Party remains relatively impartial.

“Yes” voters are said to be largely made up of young people and a major proportion of the island’s middle class residents who wish to see Malta brought into line with the rest of Europe and the world. The “Yes” vote is also being heavily promoted in the nation’s press.

For many, the decision has been too long in the making, as one 73-year old Maltese man told the Telegraph.

“I am being forced by the state to call the person with whom I was living 31 years ago my wife while the person I have lived with for 19 years is just my partner, ” he said.

“That is hypocritical and I just cannot accept that kind of hypocrisy.”

For many Maltese residents, an introduction of divorce law would mean they were able to finally marry a person they have lived with for many years, so, perhaps, any change to the legislature would have a knock-on effect of causing an upsurge in weddings rather than merely creating a market for divorces.

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Conveyancing solicitor work put off for five years by deposit shortfall

Many first-time buyers are now expecting to save for at least five years before having enough money to put down as a deposit for a house purchase, find their dream home and approach a .

Research by Santander Mortgages has found that 23% of potential home-owners believe they will have to wait five years before gathering a deposit, which may be as much as 20% of the purchase price, depending on the mortgage lender.

Although a few 5% deposit deals are available, the credit crunch has seen all the most attractive offers disappear, leaving many more people renting or living with parents when they would rather be in their own homes.

This is especially true of London and popular areas of the South East, such as Brighton, where property prices are higher than the rest of the UK.

The report also revealed that 54% of first-time buyers did not think their savings would be enough for a deposit until they had put money aside for three years but 11% thought the goal of getting a foot on the first rung of the housing ladder could be achieved in a year and they could then begin the residential conveyancing process.

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Sir Paul Coleridge calls for independent family law reform

The most recent attack on the outdated state of English and Welsh family law has come from Sir Paul Coleridge, as reported in The Telegraph, who has called current divorce law a “dead parrot” in need of a “comprehensive root-and-branch overhaul”.

The comments were made by the High Court judge, who presides as Mr Justice Coleridge, during a speech made before a meeting organised by the Christian charity, Care, in London.

He said that current legislation affecting divorce and cohabiting couples was “no longer fit for purpose” and that government after government had failed to tackle the important issue of law in these areas.

Sir Paul expressed concern that a high-level enquiry had not been carried out in respect of divorce law reform since the 1950 Royal Commission and noted how different society is now.

He told the audience, “The world we inhabit today is not the same world as we inhabited in 1950. Socially, society is unrecognisable. The norms of behaviour, the stigmas and the taboos have all changed or evaporated.”

Adding, “We need a fresh look by an independent non-political commission.”

One area of family law which Sir Paul sees as ripe for reform is the rights of unmarried partners. He also suggested that pre-divorce information sessions for couples should be introduced as a precursor to visiting their divorce lawyers.

Sir Paul argued that even though the rate of family breakdown was increasing persistently politicians had not addressed the issue, thus leaving the courts to mete out their decisions whilst attempting to take into account the changes in society – a kind of law reform by “stealth”.

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Top tips for landlords to avoid tenant disputes

Daniela Catuara, of the dispute resolution team, offers ten tips to help landlords avoid disagreement with tenants when a tenancy comes to an end.

  1. Have a written, signed and witnessed tenancy agreement.
  2. When taking a deposit make sure it is protected within 14 days with one of the authorised deposit protection schemes such as My Deposits, The Deposit Protection Service or the TDS.
  3. Instruct an independent company to carry out a check-in inspection and inventory and take dated photographic evidence of the condition of the property at the start of the tenancy. Where possible make sure the tenant is present and ask them to sign the inventory / check-in report.
  4. Write to the tenant near the end of the tenancy to remind them of their obligations under the Tenancy Agreement.
  5. Open communications can prevent potential disputes so liaise with the tenant to discuss whether any money will be claimed from the deposit for breach of any of the tenancy agreement terms.
  6. Where appropriate, invoices, receipts, estimates and/or quotes should all be obtained and retained in relation to the cost of repair / replacement work being carried out.
  7. Where landlords wish to make deductions for cleaning costs they will need to ensure the cleanliness of the property at the start and end of the tenancy was sufficiently recorded and detailed in the check-in and out reports. These charges do need to be reasonable and proportionate therefore if ‘standard charges’ are to be applied then it would be best to include such a provision in the tenancy agreement setting out what they are as this will be signed by the tenant.
  8. Remember that the tenant is only obliged to return the property in the same state of cleanliness  as the start of the tenancy, after allowing for fair wear and tear.
  9. Rent account statements / bank statements should be retained by the landlord evidencing rental payments made by the tenant to evidence any rent arrears.
  10. If all else fails and an agreement as to the amount to be retained by the landlord from the deposit cannoy be met the adjudication procedures set out under the deposit scheme should be followed.

By following these tips landlord and tenant disputes can hopefully be avoided and the final transition of tenancy will be as smooth and hassle-free as possible.

May 2011

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Brownfield building sites alert for conveyancing solicitors

A leading insurance company has issued a warning to home buyers to be wary of moving onto a brownfield site where there may be hidden toxic contaminants, subsidence potential or poor drainage and urges them to insist their conveyancing solicitor makes thorough searches to assess the risk before committing to the purchase.

Managing director of LV=, formerly Liverpool Victoria, John O’Roarke, says that one in ten homes built on reclaimed industrial land in the past ten years have suffered problems.

“About 74,000 new-build homes have been adversely affected by the land they were built on in the past 10 years.

“But because of the lack of affordable housing and the need to protect greenbelt land, over the next decade another 500,000 homes will be built on redeveloped ex-industrial sites that could pose risks to homeowners and their properties,” he said.

Industrialised cities and towns in the North and Midlands, where manufacturing has moved out, provide the majority of the building plots but London’s Docklands and former Ministry of Defence land in the South East may also be involved.

Increased building and property sales on ex-industrial locations are likely to be generated with government policy that one in eight new homes should be developed on such sites. Many are bought by first-time buyers because of their price, position and size.

The National House-Building Council (NHBC) provides ten-year warranties on most new-build homes, including those on brownfield land, but this does not cover potential flooding problems, not caused by failures in the construction, because decisions on land for building are taken by local authorities and based on government policy.

First-time buyers and home-owners moving to a new area should be particularly careful in selecting a residential conveyancing lawyer who will be aware of the issues of a specific development and can be alert to underlying problems of a site.

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Family lawyers want clarity on cohabitation law

Family lawyers in Brighton, London and throughout the UK are eagerly awaiting a ruling of the Supreme Court in the appeal case of Kernott v Jones [2010].

A decision is to be made upon whether a court can reasonably deduce the relevance of an agreement made by an unmarried cohabiting couple who share equally the rights to their family home at the time of their separation “to the effect that thereafter their respective beneficial interests should alter”.

Family lawyers have suggested that the presiding decision on the subject, Stack v Dowden [2007], is showing considerable “fault-lines”.

Lord Walker of Gestingthorpe, Lady Hale of Richmond, Lord Collins of Mapesbury, Lord Kerr of Tonaghmore and Sir Nicholas Wilson are hearing the case.

Rebecca Bailey-Harris and John Wilson QC, writing for Famiy Law Week, suggest that family lawyers attempting to advise cohabitees on the law relating to their homes upon relationship breakdown find themselves in a similar dilemma to the Supreme Court judges in this case and they may in fact be negligent in advising clients to go to hearing when the law itself is not fully asserted in this matter.

They also consider that current injustices in the system have not been dealt with by successive governments and ask whether it is constitutionally appropriate for the Supreme Court to take it upon itself to deliver such a significant cohabitation law ruling at this time.

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Home builders suggest mortgage help for first-time buyers

Property builders and developers, who are fearful of continuing depression in new home sales, say that a shortage of mortgage funds is the biggest bar to a revival of the property market.

In the 2011 Housebuilder survey, organised by leading London-based estate agent Knight Frank, rises in interest rates and weak UK economic growth were other causes of concern and 39% of those consulted suggested subsidised mortgages should be made available to first-time buyers.

They are also fearful that changes in planning rules may slow down obtaining consent for permissions to build.

At current rates of house building, the number of new homes completed annually is 50% less than the number needed for the growing demand.

Family homes with three or four bedrooms are the most popular, leading to ideas that fewer high-density town schemes, including flats, will be built.

The survey respondents said some house builders were concentrating on better well-planned sites with more family-focused properties.

Although land values are down 40% from their 2007 peak, some sites are becoming available through distressed sales and developers are using a variety of funding, such as phased payments, in order to buy them.

Property solicitors and others involved in the home sales industry will hope that Knight Frank’s analysis of the situation is accurate in predicting a recovery in demand for all types of housing, particularly in the South East, where an increase in the new homes’ supply will then trickle down into the market and re-start buying and selling activity.

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Family law specialists wary of divorce iPhone app

Some family law specialists have criticised a new iPhone app which offers legal advice on divorce law.

The app is described as giving “the first line of information to anyone considering divorce or separation and who wants to be better informed about the process”.

A London firm of family law solicitors has been involved in producing the app and it contains a warning that the text is not a substitute for consultation with a divorce lawyer if its users are seriously contemplating marriage break-up.

A spokesman said the purpose of Divorce? was to make people aware of the implications of divorce before starting on the formal stages of separation.

One ‘pro-family’ campaigner said the app could help persuade people to try to save their marriages if they realised the procedure of walking away from a relationship was not as simple as celebrities made it appear.

However, a representative of pro-marriage campaigners Christian Voice has attacked the app for possibly deterring people from seeking to save their relationship.

Stephen Green told The Guardian, ” It could encourage divorce by normalising the decision, making it seem as easy to make as any other lifestyle choice.”

Other commentators have said that the app, which has been available in a similar form in the United States for some time, is most likely to be used by the curious rather than those who are seriously in need of divorce legal advice from a family law specialist.

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