Help to Buy ISAs – Is £250,000 ‘affordable’ in the South East?

The Government’s Help to Buy ISA scheme was launched in December 2015 with the aim of helping first time buyers secure an ‘affordable’ home with the Government topping up ISA contributions by 25%, up to a maximum of £3,000.

The scheme is due to close on 30th November 2019 after which time it will not be possible to open a new account and benefit from the Government bonus. As the deadline approaches, we look at whether the Help to Buy ISA is fit for purpose for our clients in the South East.

Any first-time buyer who wishes to take advantage of the Help to Buy ISA must meet several criteria which include a requirement that the property being purchased meets the Government’s definition of an affordable home. There are two thresholds in determining whether a property is affordable – if the home is in London then the maximum purchase is set at £450,000. However, outside of London there is a blanket maximum of £250,000 irrespective of where the property is located and the house prices in that area.

Whilst there are parts of the country where £250,000 can buy you a substantial new home, for example you can quite easily purchase a 4 bedroom detached house in Burnley for £150,000, this is not the case for first time buyers looking to purchase in towns throughout Surrey including in our own town of Dorking.

At the time of writing this article, we carried out a search on Rightmove to see how many properties would be classed as ‘affordable’ for first time buyers looking to take advantage of the Help to Buy ISA bonus and purchase a home in Dorking or the surrounding villages. Having searched within a 5-mile radius ‘as the crow flies’ of our Dorking office, there was only one house being marketed for £250,000 or less – a small one-bedroom terraced property. For those who are content with a one bedroom flat in central Dorking, there are three such properties available ranging in price between £210,000 – £230,000.

Having established the affordable home threshold outside of London is unrealistic for clients looking to buy in the Dorking area, we then searched within 5 miles of our Camberwell office to see whether the higher affordability ceiling of £450,000 which applies there provides greater opportunity for first time buyers to benefit. There were 243 results for houses within the 5-mile radius including a 5-bedroom terraced house with an asking price of exactly £450,000!

Under the Government’s own definition of affordability, it is more affordable to buy a 5-bedroom house in London than it is to purchase a ‘one up one down’ starter home in Dorking.

For those who are considering opening a Help to Buy ISA before the 30th November deadline and looking to purchase in Dorking and surrounding villages – unless you are hoping to purchase a studio flat or find a mortgageable shed your options are limited. You may instead wish to consider the alternative option of a Lifetime ISA  https://www.gov.uk/lifetime-isa which has a £450,000 maximum purchase price across the entire UK instead of benefitting only those who live in London or areas with cheaper house prices. By way of comparison, there are currently 87 houses within 5 miles of our Dorking office which could be purchased with a Lifetime ISA compared to the single house available to those using the Help to Buy ISA scheme.

If you have any queries regarding any aspect of residential conveyancing, please contact Stephen Carr on 01306 884432 or email scarr@meaby.co.uk

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Why do I have to insure the property I am buying before completion?

Most residential sale and purchase contracts in England and Wales incorporate The Standard Conditions of Sale (Fifth Edition).

Condition 5.1.1 of the Standard Conditions provides that the property is at the risk of the Buyer from the date of the Contract. (The point of exchange).

Condition 5.1.2 provides that the Seller is under no obligation to the Buyer to insure the property (unless the contract specifically requires the Seller to do so or, the Seller is required to insure under the terms of any letting or leasehold agreement affecting the property).

If the property is leasehold and the Landlord is required to insure the property under the terms of the lease, we would expect to see a copy of the buildings insurance policy schedule before exchange of contracts.

If you are buying the property with mortgage finance, your mortgage lender will set out their specific requirements in respect of insurance. The mortgage offer may, for example, reflect the minimum level of cover required for the property and state that the excess payment on any claim for subsidence, should not exceed £1,000.

If you are buying a newbuild property, The Standard Conditions of Sale may be varied to reflect that the Seller will retain the risk until Completion.

Although the risk passes to the Buyer under Condition 5.1.1 at the point of exchange, a Seller is unlikely to cancel insurance on a property until completion has taken place.

If the property is damaged or destroyed between exchange of contracts and completion, and the amount paid to a Buyer under their insurance policy is reduced because the property is also insured by the Seller, then in accordance with Condition 5.1.5, unless the Seller was required to insure the property in accordance with Condition 5.1.1 referred to above, the purchase price payable by the Buyer would be abated by the amount of such reduction by the insurance company when settling a claim.

We would recommend that you obtain quotes for buildings insurance cover prior to exchange of contracts so that you are able to arrange for the insurance cover to start immediately before exchange of contracts.

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Should I Amend My Will After I Marry

If you have recently married or entered into a civil partnership, you should be aware of the impact that this will have on your Will.

 

When you become legally married, any existing Will is treated in law as having been revoked. This ensures that a spouse or civil partner is not inadvertently disinherited by a Will that was in existence before the marriage.

 

You therefore need to put in place another will after you are married so that you can direct who inherits your estate, and who shall be responsible for administering your estate. If you fail to do this, the rules of intestacy will apply (the rules governing who shall receive your estate in the event that you die without a Will). The rules of intestacy can be problematic for a surviving spouse, particularly where somebody dies with young children. Under the rules of intestacy, the children may well stand to inherit a share of the first deceased’s estate, and this can restrict the freedom of a surviving spouse to deal with assets such as the family home.

 

When entering into a legal relationship, it is critical to revisit your Will, and to consider estate planning to ensure that your future spouse/partner (and any future children) are adequately protected.

 

Should you have any questions in relation to making a Will, then our Private Client department will be happy to help. Please do not hesitate to call Kathryn McCullough on 0207 703 5034

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Blogs

Buying a Property with Solar Panels

If you are considering buying a property with solar panels you should be made aware that there are a number of legal implications and documents that will have to be obtained in respect of the installation.

If the property is in a consideration area or is a listed building, an application should have been made to the Local Planning Authority. Building Regulations consent will always be required as the panels significantly increase the weight of the roof. The structure of the roof will have to have been improved in accordance with the Building Regulations. The installation would also have to comply with Building Regulations from an electrical aspect as the panels are an electrical installation.

In many instances the panels are not owned by the homeowner but by the solar panel installer. A Lease of the roof space will have been entered into. If you are buying with the assistance of a mortgage, the solar panels could have an adverse impact on the lenders security and will therefore have to be reported to the lender. Certain requirements issued by the Council of Mortgage Lenders will apply. You will also be required to make your insurance company aware that solar panels are fitted.

 

If you have any queries regarding any aspect of residential conveyancing, please contact Marie Waters on 0207 703 5034 or email mwaters@meaby.co.uk. 

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Impact Investing

Recently, I spoke at the Emerging Economies Family Office Summit here in London.  The subject under debate was Impact Investing.  It certainly was a lively discussion.  Impact Investing, of course, is not a new phenomenon, the term first being coined in 2008 by the Rockefeller Foundation and I indeed agree with those that argue that it is a development of SRI (Socially Responsible Investing).  As a sector of the global financial industry, Impact Investing is still relatively small however it is the influence it is exerting over conventional investment strategy which is most interesting.  Then there is the question of balancing a wish for a positive social and environmental impact with the need for a financial return.  When it comes down to the crunch – which takes precedent?  Do feel free to read my article which looks at the growth of Impact Investing, its reach into the conventional financial investment market and the problems it will face in the future.

https://www.linkedin.com/pulse/emerging-economies-family-office-summit-london-2019-olivia-cooper/

Olivia Cooper, Head of Private Wealth and Family Office

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WHAT TO DO WHEN SOMEONE DIES – THE FUNERAL SERVICE

The religious leader or person leading the service will contact you once they have been approached by your Funeral Director/undertaker (or occasionally your solicitor) to conduct the service. They will help you plan the service but thought should be given to the following:

 

Points to consider:-

 

  1. The appropriate hymns, pieces of music and readings, (had the deceased made any particular requests regarding these)?
  2. Would you like a tribute/eulogy?
  3. Who would like to contribute?
  4. Who would prepare it?
  5. Who would read it i.e. friend, relation, religious leader?
  6. Do you wish to have flowers in the place of worship?
  7. Do you require service sheets?
  8. You might like to have a record of who attends i.e. remembrance cards or sheets or a book for guests to sign when going into the place of worship.
  9. You could ask friends or family to assist generally in the seating arrangements
  10. Ask the religious leader to announce if donations are to be given to a particular organisation.
  11. Ask the religious leader to announce, if appropriate, if the congregation are invited to the burial/subsequent cremation (unless already occurred) and refreshments.

 

This is not an exhaustive list but outlines some of the main points to be considered.

 

There are some occasions when the deceased’s close relatives, or friends, may wish, for one reason or another, to have Meaby & Co assist with co-ordinating matters with the undertakers and to help with arranging the service.

It is prudent to check 48 hours prior to the burial/cremation that all the arrangements have been put in to place so that everything goes smoothly at this difficult time.

 

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I am owed money, what do I do?

One of the most common reasons why people have disputes is because someone owes someone else money. Everyone works hard for their money and when you are owed money by someone who is refusing or failing to pay you, it is particularly distressing and can cause various problems, either personally or for a business.

Perhaps you or your company entered into an agreement for the provision of services, and you have not been paid what you believe you are owed, or perhaps you lent someone some money and they agreed to pay you back, but have not yet done so. Whether you are owed money as a company, or personally, there are usually methods by which you can try and recover these sums.

One of the things that needs to be considered very early on in the process is what is the likelihood that the person who owes you the money will be able to pay you. Any advisor will tell you not to throw good money after bad, as it can be costly to try and recover monies owed to you, and if at the end of the day there are no funds available to pay to you, what will you have achieved?

Of course, just because the person who owes you money tells you they don’t have any to pay you or appears on the face of it not to have any, this is not always the case.

The first step will always be to demonstrate, with evidence, that you are owed the money. Whether it is a breached agreement, an email confirming payment or a bank statement showing monies paid across, it will be very important to be able to show that the monies are in fact owed to you, should the matter ever find itself before a Court.

It will also be important to consider how much you are actually owed. Whilst your legal adviser will try to assist you, sometimes based on the sum that you are owed, it can be disproportionate to pay solicitors to recover the money for you. If you are successful in recovering the sum through the Courts, then you would ideally expect to receive your legal costs, however this is not always the case, and you may not recover the entirety of your costs.

Bearing in mind the above considerations, the following are the various methods by which you could seek to recover monies owed to you: –

  1. Serve a Statutory Demand on the owing party – this step should only be taken if the debt is not disputed by the owing party. To issue a Statutory Demand where there is a dispute about the sums owed could be considered to be an abuse of process. If a Statutory Demand is served, and the owing party does not either seek to set aside the Demand, or does not pay it within a limited period of time, then you can seek to wind up the company or make the individual bankrupt.

 

  1. Issue a money claim against the owing party (company or individual). There are several methods by which this could be done, depending on the level of the debt.

Another consideration must be the limitation period. You are only entitled to bring a claim for the unpaid sums within 6 years of the breach of the agreement, if the claim is for a breach of contract. If you attempt to bring a claim against a party outside of any relevant limitation period, your claim will be disallowed.

If you are successful in bringing a claim, and getting a money judgment against the owing party, then there are several methods by which you can try and secure your monies.

For further discussion about how, when and whether you can bring a claim for recovery of monies owed to you, speak with our Litigation Team or contact cboyce@meaby.co.uk.

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The current law on Flexible Working

The Current legislation governing flexible working arrangements is the Flexible Working Regulations 2014 which in turn is supported by an ACAS Code of Practice in this area aimed at ensuring that employers get it right.

Before 2014, flexible working rights were limited to Parents and Carers however the 2014 Act extended these rights to all employees as long as they have 26 weeks’ continuous service as a qualifying criterion, and they have not made a request in the previous twelve months.

It is important to remember that there is no legal right to have flexible working arrangements, only the right to request it.   Employers have the right to refuse flexible working requests as long as they have given serious consideration to such requests.

Flexible working in law is a working pattern other than the normal contractual working pattern.   It can include a variety of different working patterns for example making changes to an employee’s hours of work, the times that they are required to attend work or changes to their place of work.   Here are some examples:-

  • Flexitime arrangements whereby employees are required to be at work during core periods but can otherwise arrange their hours to suit themselves.
  • Compressed hours meaning that employees work the same number of hours over fewer days.
  • Annual hours contracts where employers and employees can agree the number of hours that they will work over the course of the year but where the work pattern can vary from week to week.
  • Staggered working hours where employees can start and finish work at different hours.
  • Job sharing arrangements where for example two employees’ alternate days, half-days or weeks between them.
  • Reducing hours of work which is especially popular for female employees returning from maternity leave.
  • Requests to work from home for periods of time or all the time.
  • Temporary changes to working patterns to care for a dependent or to undertake a training course or an unpaid sabbatical.

The right to request flexible working is open to both full-time and part-time employees but not workers or agency workers, provided that they meet the 26-week continuity of service requirement.

If any employee wishes to make a request for flexible working arrangements then they need to make an application to their employer setting out the changes that they are seeking, clarifying what effect the changes could have on the business and how the business can cope with the changes.   The application also needs to confirm the dates that they would like to change to be implemented and a statement to state that it is a statutory request for flexible working.  The application also needs to state whether a flexible working request has been made previously and when.

Once an employer receives an application from an employee for flexible working arrangements, they will need to arrange a meeting as soon as possible with the employee to discuss their request.   The employee can be accompanied by a work colleague as well according to the ACAS Code of Practice, but this is not compulsory just best practice.    There also does not have to be a meeting and it can be agreed that the matter can be dealt with in writing.

The employer must however give the request serious consideration and weigh the benefit of the changes against any adverse impact on the business.   Once the employer has arrived at a decision then they must inform the employee of their decision as soon as possible.   There is also a right of appeal for the employee to pursue as well.

The most common reason for employers to refuse requests for flexible working are the impact it would have on the business.   This is especially where the employee’s role is client facing and there is a request to work from home.   Clearly in that situation it is going to be challenging to allow an employee to work from home.   Other reasons for refusing a flexible working request can include:-

  • A detrimental effect on the ability to meet customer demand.
  • The burden of additional costs.
  • An inability to reorganise work amongst other employees.
  • Difficulties in recruiting additional employees.
  • Detrimental effect on quality of work and the employee’s performance.
  • Planned structural changes to the business which would not work with the proposals.
  • A deficiency of work at the time that the employee proposes different hours of work.

If an employer isn’t sure about the impact that flexible working would have on the business, then one way around it would be to agree any changes on a trial basis and at the end of the period to evaluate how it is working out.  It is important to advise the employee that if it is not working out that they reserve the right to revert to the previous arrangements.  In the alternative trial periods can be extended if it is unclear how the new arrangements are progressing.

If the changes are successful, then it is recommended that the employer updates the employee’s employment contract to confirm any changes to working hours and any impact on annual leave entitlement.

If the request involves an agreement to work from home, then it is important that employers undertake an adequate risk assessment at the employee’s home and update their insurance provisions to accommodate employees working from home.   Typical things to look out for are the employee’s workstation and seating arrangements, health and safety with for example no dangerous extension leads, that there is adequate lighting , temperature control and ventilation.

If the flexible working request is refused then the employee can formally appeal against the decision and they can also raise a formal grievance, although the grounds will probably be similar or the same for both processes.

Other methods can include the use of external mediation to see if this can resolve any dispute.   Failing this the employee can resort to ACAS and the Employment Tribunal.

The Employment Tribunal can order an employer to reconsider a request for flexible working and to pay compensation up to a maximum of eight week’s pay currently capped at £525 per week.   The employee could also make a claim of discrimination as well where compensation is not capped.   It is therefore important to give real consideration to requests from employees returning from maternity leave or from a disabled employee who wants flexible working as a reasonable adjustment to their working environment to minimise the risk of a discrimination claim.

Above all it is important for employers to be consistent in their approach to requests for flexible working with all employees, where they are permanent, fixed-term, full-time or part-time.  This will ensure that they do not treat employees differently and expose themselves to the risk of a claim in the employment tribunal which they could lose.  This could also attract bad publicity for the business.

Finally, it is also important to remember that it is unlawful to dismiss an employee who asserts a statutory right such as the right to request flexible working and that any dismissal will be automatically unfair where the two-year continuity of service requirements are not required.  It is also unlawful to treat an employee detrimentally because they have exercised these rights which could lead to a legal challenge.

If you have any questions relating to flexible working, then contact Steven Eckett – Partner and Head of Employment at Meaby & Co LLP.  Telephone: 0207 703 5034  E-mail seckett@meaby.co.uk

 

 

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How can I use a letter of wishes when writing my will?

What Is A Letter of Wishes?

A letter of wishes can be used to supplement or accompany a will.  Its purpose is to guide your trustees and guardians, to ensure that your personal wishes are carried out. It can be written at the time that you make your will, or at a later date. The intention is to enable the writer to use plain, uncomplicated English, and to provide guidance on why they made a decision a certain way.

A letter of wishes can be helpful in a number of circumstances; including who your trustees should give your personal possessions to (or why you have excluded someone in particular from your will), as a tool for tax mitigation, to advise guardians on how you would like your children to be raised, or who you would like to take care of your pets.

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Call Us Today For Advice On Wills & Probate


 

Importantly, and unlike a will, the contents of a letter of wishes are confidential.  When an application is made for Probate, the will becomes a public document, but the letter of wishes remains private, to be considered only by your trustees.  

Therefore, it can be used to explain to your trustees why you have left assets in a particular way, perhaps why you may not have included someone in your will, and your reasoning behind this decision.  

Crucially, your beneficiaries have no right to see your letter of wishes, and although they are not immune from disclosure, a Court will not disclose it to your beneficiaries unless there is good reason to do so.

Types Of Private Client Law Covered By Meaby&Co

 

Private Client
Wealth Administration

 

It should be noted that your trustees do not need to follow a letter of wishes – they are under no legal obligation to do so.  There is also the concern that a letter of wishes can be detached from your will and lost.  If you therefore have certain wishes that your trustees must follow, you should consider documenting them in your will instead.

Contact One Of Our Private Client Solicitors Today

Should you have any questions in relation to making a Will or writing a letter of wishes, then our Private Client department will be happy to help.
 


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    Employee Handbooks

    What Are Employee Handbooks?

    It is advisable that all companies have an Employee Handbook which details the procedures and expectations of the Company regarding specific conduct by its employees. Large parts of the Handbook will be deemed to be “non-contractual”, which means that those provisions can be varied unilaterally by the Company and so changes do not need the consent of the employee.
     

    Call Us: +44 207 703 5034

    Call Us Today For Employment Law Advice

    Best Way To Draft Employee Handbook?

    Solicitors are often engaged by companies to draft the Employee Handbooks. If those are “off the shelf”, they are often drafted sufficiently widely to apply to all industries, with the result that they will not apply specifically to the work practices of the Company.

    This approach can often be acceptable – in the case of provisions relating to “disciplinary process” and “grievances”, those are usually drafted to comply with the ACAS Guidelines, which will apply to most industry sectors. In this situation, the “one size fits all” approach works.

    Where it does not work, is in relation to examples of employee behaviour which represents “misconduct” and “gross misconduct”. In the Employee Handbook, examples will usually be given which allow the employees to understand how certain kinds of misconduct will be treated by the Company, and therefore what sanctions may be imposed if they are found to have done those acts.

    It is impossible for the Handbook to provide for every possible breach, but normally around 10 or 12 examples are provided. These should be different categories which it is expected that most breaches could be allocated to.

    Types Of Employment Law Covered By Meaby&Co

     

    Employment Contracts

    Policies & Procedures

     

    Create A Bespoke Employee Handbook

    To be helpful for the employees, and to provide a defence to the Company if challenged, these should apply to the specific nature of the Company’s business. If they are so broad that they could apply to all industries, they will do neither.

    Generic handbooks will often provide around 20 very broad categories of “misconduct” and “gross misconduct”, one of which virtually any kind of misconduct, no matter how low-level, could be applied.

    This may be helpful to the Company as the approach effectively provides “catch all” categories into which most kinds of misconduct can be dropped. However, those are open to challenge if abused.

    Cases of Employee Handbooks Being Used?

    I was recently instructed by a client to defend him against a disciplinary charge of “gross misconduct” in the workplace. A finding of “gross misconduct” is punishable by summary dismissal, with no notice pay payable, with the attendant negative reputational impact, and so it was a matter with far-reaching ramifications for him.

    The employer had a number of divisions, with the Handbook drafted to apply to all of those. It was a “cookie cutter” version which made no reference to the industry in which he worked, deliberately drafted from a high level to apply to all the divisions of the Company. It contained 33 broad examples of behaviour that the Company deemed to be “gross misconduct”.

    Accordingly, it provided no practical guidance to him in his industry, with no specific examples of his day to day conduct which could be deemed to be “gross misconduct” provided. By applying to all, it applied to none.
     

    Call Us: +44 207 703 5034

    Call Us Today For Employment Law Advice


     
    The 33 examples included “Failure to follow Company policies and procedures” and “Failure to follow reasonable management instruction”, which were clearly drafted to catch almost any breach, even if very low level.

    It is likely that if the company tried to shoehorn trivial breaches of this into those categories, and then dismiss the client, he would have a strong claim for “unfair dismissal” as these would fail the “fairness” test which the Employment Tribunal (“ET”) would apply when hearing the claim.  

    Another example of conduct purportedly punishable by summary dismissal was “Use of a hand-held mobile telephone whilst driving on Company business”. If an employee was dismissed for this offence, which carries only a civil penalty of 3 points on a driving license, an ET is likely to find that it was a disproportionate sanction.  

    Merely because a Company deems an act sufficiently serious to be “gross misconduct”, it does not mean that an ET would agree. Categorisations should be objectively justifiable.

    Contact One Of Our Employment Solicitors Today

    Meaby & Co have significant experience in both drafting Employee Handbooks and advising employees on their effect. Should you require advice on the above, or indeed any aspect of employment law, please contact Chris Marshall on 0207 703 5034 or cmarshall@meaby.co.uk.

     


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