When most people buy or sell a property, the usual process is that an offer for that property is accepted, solicitors are appointed, the due diligence process takes place and once all parties are ready, exchange of contracts takes place with an agreed completion date.

However if a property does not sell, it may be put into an auction where a lot of properties are usually listed to be sold on that same day.

At an auction, a legally binding sale is agreed as soon as the hammer falls and purchasers have to pay a deposit 10% on the auction day. Should the purchaser withdraw for any reason then they will forfeit this 10% deposit. Purchasing at auction also provides certainty for the purchaser as there is less likelihood of the seller withdrawing or being gazumped by another interested party.

When buying or selling property at auction, the key is to prepare in advance.

When selling:

If you are selling a property at auction, ensure you instruct a solicitor at least 2 months before the date of the auction to assemble an auction pack, which can then be made available through the solicitor or through the auctioneer. The auction pack will contain details of the title, copy of the Contract and a number of searches which any interested party can view so they can be satisfied with the title prior to the auction.

When buying:

If you are considering purchasing a property at auction, our main advice is to do your research. Once you have found a property that you are interested in making a bid on, you should consider instructing a solicitor to review the information in the auction pack. You should also consider having the property surveyed so should you be successful at auction, you will know exactly what you are buying either legally or from a structural point of view.

Auctioneers will set a guide price for a property which is normally quite low to entice buyers. However any potential purchaser at auction should always set themselves a budget as it is easy to get carried away once the auction is under way.

You should also get an indication from the auctioneer as to what interest there has been in any particular property you are interested in.

Any potential purchaser at auction should also have their finances in place as if you are the successful bidder you normally have 4 weeks in which to complete the purchase when the remaining 90% of the purchase price will need to be paid.

For further information in connection with buying or selling at auction, please contact our experienced solicitors in our Property Department on telephone number 01267 237441 or by email at mail@utk.co.uk who will be able to assist further.

 

What is a Prenuptial agreement?

A prenuptial agreement is a formal written contract entered into by two people who intend to marry or enter into a civil partnership.

The agreement details all assets currently owned by each party and sets out what is intended to happen to those assets if the marriage was ever to breakdown. They can also detail intentions in relation to any anticipated assets within the marriage (e.g. Inheritance).

Admittedly a prenuptial agreement is not the most romantic topic to be discussing when preparing for your big day, but they can help clarify the financial position should the worst happen.

Why would one be needed?

There are a number of reasons to enter into a prenuptial agreement:

• to ring-fence assets an individual already has to ensure that they pass to children from a previous relationship/marriage

• to ensure that a person retains control of their business if the marriage was ever to break down

• to protect long standing family assets e.g. farm, land or other valuable assets

• to safeguard anticipated inheritance

• to make clear that liabilities brought into the marriage will remain the full responsibility of the person who was responsible for accruing the debts.

Are they legally binding?

Technically not. There is, at the moment, no statutory provision which binds the U.K. Courts to apply whatever has been agreed in a prenuptial agreement. However case law makes clear that they are to be given high evidential weight as to the intention of the parties and they will be generally upheld by the Family Courts, unless the terms are seen to be inherently unfair.

In a nutshell, if they are dealt with properly (in line with the Law Commission’s recommendations) and your circumstances have not changed to such a degree that it would be inequitable for the Courts to apply the terms of the agreement, your prenuptial agreement will be upheld.

The Law Commission guidance – what does it say?

The Law Commission have made some key recommendations of formal requirements that they believe should apply before the prenuptial should qualify:
1. the agreement must be contractually valid and enforceable
2. the agreement must be made by deed and signed by both parties
3. the agreement should be made 28 days before the date of the marriage or civil partnership
4. at the time the agreement is formed, both parties must have received disclosure of material information about the other person’s finances; and
5. both parties need to have had independent legal advice (a waiver is not possible).
What happens if there is no prenuptial agreement?

Essentially, any and all assets that are held within the marriage at the time of the breakdown of relationship will be considered as part of the matrimonial pot.

Despite the fact that there are a number of factors that guide the court when considering how best to split the pot, one of the key considerations in each case will be the needs of the parties. To find out more about the approach of the Court in these situations, please refer to our earlier article ‘Divorce: Financial Factors – What do the Courts look at?’ which can be found in our blog history.

In the event that you require further advice in relation to prenuptial agreements, please contact Nia Thomas on 01267 237441. We can offer a 30 minute free consultation and a fixed fee quote for a tailor made prenuptial agreement that will best safeguard your circumstances.

 

 

 

After last weekend’s chaos due to the IT problems at British Airways which resulted in delays and cancelled flights, many people may be looking for compensation.

However Brexit could undermine the right of British airline passengers to claim future compensation for delayed and cancelled flights under EU consumer protection legislation known as EU261.

At present, the Government will only confirm that the existing compensation arrangements will remain in force until Britain leaves the EU and would not be drawn on any commitment about the future of EU261 afterwards.

Currently in order to claim compensation for a delayed flight, then you can only claim for EU-regulated flights. An EU flight is where the flight departs from an EU airport, regardless of the airline OR where an EU airline lands at an EU airport. Under this law, EU airports also include those in Iceland, Liechtenstein, Norway and Switzerland. So a delayed Manchester to Miami flight qualifies, regardless of the airline. Yet for Miami to Manchester, you would be entitled to compensation flying Virgin or KLM, but not on Air India.

How far back can I claim?

In theory you can apply for compensation for any past delays stretching back as far as February 2005 – but in practice it’s extremely unlikely you’ll be able to go back further than 2010.
However in England, Wales and Northern Ireland, due to the statute of limitations, if you need to take the airline to court to get the compensation, then you can only go back six years. In Scotland, it’s five years. So older claims can be tricky.

How do I check how long my flight has been delayed for?

Don’t remember how long your flight was delayed for? You can check this using sites such as FlightStats. You may need to register to use them, but many are free although they may not show older flights and they will not tell you what caused a delay.

When am I entitled to compensation?

You are only entitled to the compensation if the delay was something within the airline’s control such as staffing problems and underbooking – political unrest in a country or strikes cannot be claimed for.
The rule about claiming for compensation for delays is about when you arrive at your destination, not when you leave. So if you’re on a flight that takes off four hours late but lands 2 hours 55 minutes late, you’re not over the three-hour delay needed to be eligible for compensation. Your arrival time however is actually deemed to be when the plane opens at least one of its doors, not when it touches down.

What can I claim?

Compensation claims are also per person but if a passenger travels free of charge – a child, for example – you cannot claim. Compensation payments are also based in euros, meaning the amount you’ll get in sterling will fluctuate, depending on the exchange rate at the time the payment is made.
Compensation is calculated for a delay, not a refund of the flight ticket cost, so the amount you are due is fixed dependent on the delay length and distance travelled:
1. if you are delayed for 2 hours or more, reclaim the cost of food and drink ( reasonable costs and not the gastro pub!). If you need to phone a friend or keep them up to date by email from your smart phone -reclaim this cost. If you are forced into an overnight stay at the airport then reclaim the cost of a room. Airlines normally give you the vouchers at the airport, but failing that, keep your receipts to reclaim expenses later.
2. if you are delayed for 3 hours or more in addition to the above ( provided it is the airline’s fault) you are entitled to set amounts of compensation which depend on the distance of the flight of anywhere between €250 (for flight less than and up to 1,500km ) to €600(for flights over 3500km).
3. if the delay is more than 5 hours then, regardless of whose fault it is, you can get a full refund or, if you are part way through the journey, a flight back to where you started in addition to the above rights.
4. likewise, if your flight is cancelled you can get a full refund.

What if the airline rejects my claim?

If the airline has rejected or put your case on hold, this doesn’t necessarily mean they are correct. If you feel you’ve a legitimate claim but have been fobbed off, you can take your case to the relevant regulator or ombudsman to look into.

We hope you get to where you are going on time but, if you need help or clarification regarding your rights if you do not, then please contact us on (01267) 237441.

 

Property Purchase in Joint Names – What You Should Know

Where a property is owned by two or more people, under English and Welsh Law the co-owners must hold it by one of two methods, namely as beneficial joint tenants or as tenants in common. Both methods have very different implications on the death of one of the co-owners.

As tenants in common, co-owners of property can specify in what shares the property is owned between them, for example a wife might own 70% of the property while the husband owns 30% depending on what each may have contributed to the purchase price of the property. On the death of one co-owner, their share will pass under their will or according to the laws of intestacy – it does not automatically pass to the other owner(s). This is often a popular choice where a co-owner has children by a previous marriage.

As joint tenants, co-owners of property together own an equal and undivided share in the property, regardless of their contributions. On the death of one co-owner, their entitlement passes automatically to the surviving co-owners. This might be a sensible choice for an unmarried couple where they would wish the surviving partner to remain in the property. The share does not form part of the deceased’s estate for administrative purposes, although it does for the purpose of Inheritance Tax. Please note that Inheritance Tax is not payable on dispositions between husband, wife or civil partner.

For informed and comprehensive advice on how to hold your joint property, or indeed on any aspects of buying or selling a property, please contact our Conveyancing Team on 01267 237441.

We are often asked in the Property Department at Ungoed Thomas and King, the reason why Environmental Searches are so important.

The Environmental Searches that we undertake make reference to plans and assess whether the property is likely to be affected by flooding as a result of river, coastal or surface water flooding. It would also assess the likelihood of the property flooding and how often, so that you can make an informed decision about whether to proceed with your purchase.

We advise all our clients who purchase a property to undertake an Environmental Search and Environmental Searches are undertaken by us at the outset of the transaction and we then advise our clients upon them as soon as they are received. If there are any concerns with regard to flooding, we would normally raise additional enquires with the solicitors acting for the seller about the flooding history of the property.

We would also advise our clients to make specific enquires with their proposed building insurers to ensure that they are able to obtain insurance at a reasonable premium and also to ensure that any damage arising from flooding will be covered under the policy.

If you are having a mortgage, your lender will probably insist upon us undertaking an Environmental Search in any event, but even if you a cash buyer purchasing a property, we would always advise that an Environmental Search is undertaken, in addition to other normal searches which we undertake.

For further information in connection with the conveyancing process, whether you are buying or selling, please contact our Property Department on 01267 237441 or mail@utk.co.uk.