28 April, 2008

Valuation clause

The House of Lords has suggested what a valuer should do if a contract provides for a payment to be made after a valuation but the parties do not agree on the proper basis of the valuation.

It may be that the valuer needs to give the valuation on alternative bases and leave it to the parties what to do next. But if the valuer does this, they should indicate which basis the valuer prefers otherwise it may take a court ruling for there to be a definitive valuation.

21 April, 2008

Beneficial ownership of investment property

In a recent case before the Court of Appeal, the court confirmed that the presumption of joint ownership can apply to personal relationships other than cohabiting couples (here a mother and daughter).

14 April, 2008

HIPs duties extend to all homes

From 6 April 2008, unless a residential property is not available for sale with vacant possession, it will be subject to the HIPs regime. Previously residential property that were built to certain energy efficient standards were exempt.

Planning fees are increased

In England most planning fees have been increased by about 25%.

7 April, 2008

Capital Gains Tax and Buy to Let

From 5 April 2008 the new single Capital Gains Tax rate of 18% will apply replacing the 40% rate. Winners will be ‘Buy to Let’ investors and short term speculators. In this tight economic climate, investors may take this reduction in tax as a sign to dispose of ‘Buy to Let’ properties.

31 March, 2008

Limits on claiming rights over others’ land

A couple who owned a house, and their predecessors had used an access way leading from a public road to their house across a strip of land forming part of Wimbledon Common for more than 40 years. It is possible to claim a right to do something over someone else’s land, known as a positive easement after 40 years’ use if there has been no written consent to the use and the use was as of right.

The couple therefore claimed that they had such a right and sought to register this as a private right of way over the land. The Common was vested in the Conservators of the Commons who were prevented from selling, leasing, granting or in any manner disposing of any part of the commons. The Conservators claimed that this meant they were not capable of granting a right over the common. Under previous case law this would mean that the couple could not obtain a right due to long use.

The Court of Appeal has decided that the right could be granted as the easement did not amount to a disposal of the Commons. However, the court stated that a strict approach would be adopted if there was not such a right to grant. Whilst giving their decision the court suggested that the law requires clarifying in this area which the Law Commission is currently seeking to do.

17 March, 2008

New HIPs rules coming into force

The Home Information Pack (Amendment) Regulations 2008 come into force on 31st March. These amend the 2007 regulations and have two main objectives:

The first is that when a new home is to be marketed it must include a sustainability certificate. This is a certified assessment of the home against standards in the Code of Sustainable Homes. This does not apply to existing homes which are being converted but to new homes being designed or constructed, or those which have been constructed but never occupied.

The second is to extend to 1st January 2009 the current arrangements under which personal search companies can use insurance to back up their searches when unable to access local authority records.

10 March, 2008

Buy-to-let investors to be targeted by HMRC

HMRC are set to go after buy-to-let investors in a major crackdown which is expected to net millions of pounds. Those investors who have not paid tax on the money they have made from letting or selling property are the target for the Revenue.

The Revenue has written to hundreds of landlords this week as they seek to recoup unpaid taxes dating back six years. Additional fines and penalties equal to 100% of the total tax owed may also be levied against the landlords. The letters demand details on any property investment activity over the last six years as well as a breakdown of all costs such as repair work and professional fees.

Those receiving the letters are being advised to take them seriously and consider early disclosure as part of a negotiated settlement. With nearly 1 million buy-to-let landlords in the UK, the Revenue has grown worried that some have sunk below the tax radar. The letters sent out this week are just the start of a full investigation.