Why Should You Instruct a Commercial Solicitor for Your Commercial Purchase?
In a typical commercial transaction, the seller’s solicitors will draw upon a contract for the sale of a commercial property, whether it is for the sale of their freehold interest or the grant of a new lease.
If you are a prospective business tenant or buyer, it is always recommended that you instruct a trustworthy and reliable commercial property solicitor to advise you on the terms being proposed and to ensure that the contract or lease does not contain any onerous terms, as well as to assist you with post-completion formalities at the HM Land Registry and Inland Revenue. More importantly, the due diligence process is an integral part of your commercial transaction for reasons as explained in this article.
Buying a Commercial Lease
Modern leases are typically drawn up on a full repairing and insuring basis. This means that the obligation to repair and maintain the part of the building being leased to you falls upon your shoulder. Depending on the specific definitions in a lease, this responsibility may extend to parts of the building, including the structure and roof where you are liable for repairs and contributions and which is beyond the property demise. The consequence of such provisions could be impactful. In that regard, you should assess the annual rent which should reflect the state of repair of the building.
If you are a small start-up and proposing to take a short-term lease of five to seven years with or without an option to ‘break’ the lease, we would emphasise the importance of ensuring that you are satisfied as to the state of repair of the building. Even though the lease will be short-term, it will incorporate provisions concerning maintenance and repairs for which you will be liable as above, and depending on the age of the building, it could be expensive. In that regard, we would recommend conducting a commercial survey beforehand.
However, as well as the proposed terms of the lease, there are pertinent questions that may arise during a commercial transaction, such as results revealed from commercial property searches that may be alarming to your proposed use both from a practical and planning point of view. You should also consider the identity of the landlord or the person you are liaising with. Do they have legal standing in the property? Are they an offshore company? Should the sale be classified as a transfer of a business as a going concern (TOGC)?
At Beverley Morris & Co., we raise appropriate due diligence enquiries to ensure you do not find yourself in a muddle down the road and that your business venture is not adversely affected in the years to come.
If you are buying the freehold interest or a long leasehold interest in a new-build property, we will advise you accordingly to ensure that there are no conditions that would detract a buyer should you, one day, come to sell the property at a future date.
Get in touch today on 020 8852 4433 or email enquiries@beverleymorris.co.uk to find out more.
Granting a Lease or Selling Your Commercial Property
Whether you are the freehold owner or the owner of an existing lease, instructing a commercial property solicitor is vital so that your solicitor can work out exactly what is involved from a legal point of view. This is particularly so since you will have the duty to provide an adequate contract/lease that correctly reflects the building as a whole.
You may be granting a lease of a part of the building or the ground floor shop premises, or you may be selling your existing Lease, or your freehold interest. Whatever it is, we will make your sale process seamless and accurate, and, more importantly, stress-free.
Parallel to a commercial purchase, as the landlord/seller, you may be asked by the tenant’s/buyer’s solicitors to complete commercial property standard enquiry forms. The relevant form will depend on the nature of your proposed sale (i.e., grant of lease; assignment of lease; sale of freehold). These forms are updated regularly to reflect ever-changing rules and regulations. In that regard, we will assist you in your answers to ensure that you are not unintentionally putting forward any misrepresentations as the seller/landlord.
If you are granting a lease to a prospective tenant, we will incorporate provisions to protect you in the event of default by the new tenant. We will obtain supporting references from your prospective tenant (and guarantor) to ensure they will be a responsible and satisfactory lessee so far as the rental and money-laundering regulations are concerned.
In preparing the draft lease, it will be necessary to consider the tenant’s proposed use of the property and since modern Use Classes are variably wide and we recommend limiting the permitted use to the specific use proposed by the tenant.
If you are selling your existing lease, it will be necessary to approach your landlord, as you will require their consent for the assignment of your lease. In that regard, we will ensure that the sale of your lease is concurrent with the sale of your business, should that be the case.
Conveyancing Solicitor Blackheath
At Beverley Morris & Co., based in Blackheath, south east London, we understand that your business venture is as important as your legal paperwork, and we strive to ensure that your legal papers are in place to keep up with ever-changing rules and regulations.
Whether you are looking for a place for your café, restaurant, retail store or office, whatever your personal circumstances, we are here to help.
We pride ourselves in acting, at all times, in the best interests of our clients so that they do not find themselves in a muddle down the road. After all, any future problems arising out of you and your Landlord/Tenant will depend much on the terms of the contract or lease you are entering into.
To find out more, call us today on 020 8852 4433, or email enquiries@beverleymorris.co.uk.
Alternatively, please fill in this contact form, and we will get back to you.
Author
Wing Shuen Ng – Trainee Solicitor
National Conveyancing Week at Beverley Morris & Co.
This year, National Conveyancing Week is taking place for the first time between 20th and 24th March 2023. According to the official National Conveyancing Week resources, the purpose of the week is to: Inform, Educate, Assist, Motivate, Reassure, Help recruit new entrants, Improve the profile of conveyancers and conveyancing and ensure that fees can be set at and kept at an acceptable level.
We have been practising law at Beverley Morris & Co. in Blackheath, South East London and surrounding areas for over 16 years. During this time, we have helped countless clients in their property transactions and understand the concerns that many people have about buying or selling a property. With that, we always do our utmost to help our clients feel at ease throughout the process, ultimately leading to a smooth and efficient conveyancing process.
As part of our support for National Conveyancing Week, we wanted to answer a few of our most frequently asked questions.
What is conveyancing?
Conveyancing involves transferring legal ownership of land or property from one owner to another or granting an interest in a property, such as a lease. This includes, but is not limited to, buying or selling your home or a buy-to-let property.
We understand that the process can be stressful, but at Beverley Morris & Co., we strive to make your transaction run smoothly by providing a practical solution to any problem. Our fees are transparent from the beginning, and we keep you informed at every stage of the process.
What does conveyancing involve?
In the conveyancing process, two main stages must be considered, known as ‘exchange of contracts’ and ‘completion’. Exchange of contracts is the point at which a transaction becomes legally binding. At any point up until then, either party may withdraw. For example, the buyer may find another property they prefer or the seller may decide not to move after all. Neither party has any claim against the other for expenses they have incurred up to the point of exchange of contracts. Completion is the point at which the property becomes yours and you can collect the keys and move in or let it to tenants.
Several tasks need to be undertaken before exchange of contracts and completion can take place. These include:
- Investigation of the title.
- Obtaining searches against the property.
- Raising enquiries of the seller’s conveyancer.
- Ensuring written confirmation of the mortgage offer and being satisfied that all conditions contained in the mortgage offer can be met.
- Commissioning all relevant surveys and inspections.
- Making sure that all the parties in the chain are ready to exchange contracts.
- Agreeing the completion date.
- Payment of the deposit.
- Exchange of contracts.
- Final formalities, including the seller signing the transfer deed, the buyer signing the mortgage deed, ordering mortgage monies and so on.
- Completion.
- Payment of Stamp Duty Land Tax.
- Registering the purchase at HM Land Registry.
What does exchange of contracts mean?
Nowadays, this is achieved by a telephone call between the conveyancers. It becomes more complicated when there is a chain of transactions involved. Both parties, i.e. the buyer and the seller, will have signed identical contracts. The conveyancers agree to exchange them, and the buyer’s conveyancer agrees to pay the deposit. This makes the deal legally binding. All formalities are finalised after this point, and it is time for completion.
Conveyancing Solicitor Blackheath
At Beverley Morris & Co., our conveyancing professionals have extensive experience in assisting, advising and supporting clients through their conveyancing process, whether buying or selling a property.
We understand how overwhelming the process can be, so we always take the time to explain carefully to our clients what to expect and keep them fully updated from start to finish.
If you are looking to buy or sell and want the support of a trusted and experienced solicitor, please call 020 8852 4433 or email enquiries@beverleymorris.co.uk today.
Can I contest the validity of a Will? – Priscilla Presley’s challenge
In order to contest a Will in the UK, there are specific reasonings that your argument must fall under for your claim to be valid. Recently, Priscilla Presley, the ex-wife of Elvis Presley, filed a legal challenge over the “validity and authenticity” of an amendment made to the Will of her daughter, Lisa Marie, in the US.
It was reported that Priscilla disputed an amendment to the Will of her daughter, Lisa Marie, who died in January 2023, aged 54, since the amendment would see Priscilla replaced as the overseer of her daughter’s estate.
The Court case has been based on there being “many issues surrounding the authenticity and validity” of the amendment to the Will. Find out more about the ongoing Court case here.
Contesting a Will UK vs US
The laws surrounding contesting a Will differ in the US and UK. However, in the UK, the grounds for contesting a Will are as follows:
- Undue Influence
Where excessive persuasion was used to compel the writer to make drastic changes to their Will or estate plan.
- Lack of Capacity
Where the person making the Will did not have sufficient mental capacity at the time of writing the Will.
- Fraud or Forgery
Where the Will was subject to deceit or fraudulent activity, including signature forgery.
- Lack of Due Execution
Where the Will was signed without the proper legal requirements being in affect.
- Inadequate provision
If a person was financially dependent on the deceased when they died, and the Will does not make ‘adequate provision’ for them.
Is it difficult to contest a Will?
In most cases, it is difficult to prove misconduct or issues in the drafting and implementation of a Will. However, if you believe you have a case, you should seek the advice of a trusted solicitor who can provide the appropriate guidance and assist you in identifying whether or not you have a case that is likely to succeed.
For Priscilla, it will be interesting to see how her case pans out, as there will be conflicting opinions with any case of this nature.
Why dispute a Will?
Executors or beneficiaries might dispute a Will for a variety of reasons, including:
- Asset value
- Trusts
- Interpretation
To avoid disputes arising regarding these circumstances, it is essential to take the advice of a trusted solicitor who can assist you in drafting, signing or amending your Will.
Solicitor for Contesting a Will
At Beverley Morris & Co., based in Blackheath Village, South East London, our Will writing solicitors can assist you in writing, signing or amending a comprehensive and conclusive Will. We will take the time to get to know you and your circumstances to ensure that, no matter what your situation, the chances of a dispute arising in relation to your Will are reduced.
To speak to one of our friendly and compassionate solicitors today, please call 020 8852 4433 or email enquiries@beverleymorris.co.uk.
Supporting a Charity in my Will
Over the years, the private client team at Beverley Morris & Co. have assisted countless people in drafting and amending their Wills. We can guarantee that no two Wills are ever the same.
Your Will should be personal to you and cover comprehensive details about your wishes and circumstances. Therefore, you may decide to leave your money, property and possessions to whomsoever you wish, including charitable organisations.
Making a Will
A Will is a legal document that carefully outlines how you would like your estate to be distributed when you die.
It is always advisable to instruct a Will writing professional to assist you in drafting, signing (and possibly later amending) your Will. Although it is possible to create a ‘DIY’ Will, this is not advised since you, or your family after you are gone, are increasingly likely to face issues, no matter how straightforward you might deem your estate to be. Find out about some issues relating to online Will writing here.
How to leave money to a charity when I die
In order to leave a gift to a charity in your Will, there are some considerations that you should make. There are different ways in which you can leave money to charity, including:
- donating a fixed amount set out in your Will
- donating whatever sum of money remains once other gifts have been distributed
- donating a specific item.
For most people, they will know to which charity or charities they wish to donate a part of their estate. Typically, the testator/testatrix will have been a long-time supporter of the charity or charities, will be familiar with their work and wish to support them by way of a donation in their Will. There is also a Charity Directory if one is undecided as to which charity or charities one wishes to leave a gift in one’s Will and it is possible to carry out appropriate research.
Tax on Charitable Donations
When someone dies, their executor(s) is/are responsible for paying any Inheritance Tax due. By giving to a charity, the net taxable value of a person’s estate is reduced.
In cases where a gift is more than 10% of the estate, there could be a reduction in the rate Inheritance Tax paid.
Giving land, shares or property in your will to charity is not taxable.
To find out more about potential tax implications of giving to charity, please get in touch with Beverley Morris & Co. on 020 8852 4433 or email enquiries@beverleymorris.co.uk.
Which charity should I donate to?
If you have not already decided which charity or charities you would like to support in your Will, here are a few further key steps you might wish to follow to ensure that you make the right decision for you.
- Online research
The Charity Commission’s online database of UK charities contains information about hundreds of thousands of charities in England and Wales. The information on this site includes what the charity does, their trustees and whether they have ever had any action taken against them.
- Check their activities.
Most people wish to support charities that have a positive impact on the greater good. Charities publish annual reports outlining their activity, goals and achievement information so that you can see the work that they are doing.
- Ensure they are reputable.
If you are researching a charity that is subject to a statutory inquiry, this means that it is being investigated for mismanagement or misconduct. For many people, this will make them reconsider donating as they wish to ensure that their money is going to a cause that is benefitting the most people.
YouGov has listed the five most popular charities in the UK according to their data (list correct as of February 2023):
- Macmillan Cancer Support
- Guide Dogs
- British Heart Foundation
- Cancer Research UK
- Great Ormond Street Hospital
Wills Solicitor Near Me
At Beverley Morris & Co., based in Blackheath, South East London, we have many years of experience in assisting people in drafting, writing and amending their Wills.
To speak to a friendly and professional solicitor today, please call 020 8852 4433 or email enquiries@beverleymorris.co.uk.
What is transfer of equity?
A transfer of equity alters the legal ownership of property and involves an existing owner of a property adding or removing one or more people to or from the title to the property. This differentiates transfer of equity from a sale or purchase of a property.
Transfer of equity solicitor – Why transfer equity?
There are a variety of reasons as to why property ownership might be transferred. Some common reasons include:
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Revisiting joint ownership
In the current market, it is common for families or friends to pool their resources to purchase property. If in the future, one or more of these parties wish to ‘buy out’ the other joint owner(s), a transfer of equity is required.
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Separation or divorce
Where there has been a relationship breakdown and a couple own a property together, they may decide to sell the property or transfer the property to one partner.
Depending on the circumstances and the agreement between the parties, the transfer to one party may be made for consideration (money) payable to the outgoing party.
If you are going through a divorce or separation and require legal advice and a solicitor for the transfer of equity, please speak to the Beverley Morris & Co. team today on 020 8852 4433 or email enquiries@beverleymorris.co.uk.
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Tax efficiency
In some cases, transferring equity to children or other family members may be appropriate for tax purposes. In these circumstances, the property is treated as a gift, thereby minimising the tax owed.
Mortgage Transfer of Equity
A mortgage is a loan agreement. When a mortgaged property requires a transfer of equity, the outgoing party (if applicable) will need to be released from the loan agreement with the consent of the existing lender prior to completion of the transaction.
Alternatively, the new owner(s) can choose to obtain a new mortgage to enable the existing mortgage to be redeemed (paid off).
Where there is a new incoming owner and an existing mortgage is to be retained, the lender’s consent will be required. The lender will carry out various financial checks before issuing the required consent.
This is to ensure the new owners can pay the mortgage.
Where a mortgaged property is to be transferred, there are, therefore, a number of options available in terms of the borrowing required. We recommend you speak to a transfer of equity solicitor to determine the best option for you.
Tax Implications
Depending on the nature of the transfer, there may be tax implications to consider. These will depend on the circumstances and/or legal status of the parties and, in some cases, the reasons for the transfer. There may be Capital Gains Tax implications and Stamp Duty Land Tax implications.
In some cases, transfer of equity can help reduce inheritance tax (IHT) payable by beneficiaries.
To learn more about the potential tax implications, please get in touch today.
Equity Transfer Solicitors
At Beverley Morris & Co., our experienced solicitors can assist with all aspects of transferring equity, no matter your circumstances.
Find out more here or, for information about how we can help you, please call 020 8852 4433, email enquiries@beverleymorris.co.uk or fill in this online enquiry form.
The Essential Conveyancing Guide for Sellers in 2023
As mortgage rates slowly start to decrease again following a recent hike, we expect to see an increase in the number of properties being bought and sold.
When selling a property, there are a variety of steps that must be followed.
If you are ready to sell your property, please call 020 8852 4433 or email enquiries@beverleymorris.co.uk today.
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Instruct a Conveyancer
When you initially instruct your conveyancer or solicitor, they will send you a letter containing the instructions you provided to them. With this, you can be sure that you are on the same page. This letter will contain critical factors, including terms of business and fixed fee costs.
The first task for your conveyancer or solicitor is to carry out proof of identity checks, ensuring that you are who you say you are to prevent fraudulent activities. Following this, your conveyancer will send you fittings and contents and property information form(s) to be completed.
For leasehold properties, more information may be required by your conveyancer.
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Organise Land Registry documents
The Land Registry is a government organisation that oversees and records information about ownership of and interests that affect land and property in the UK. The Land Registry must be notified using specific documentation when selling or buying a property.
Your conveyancer or solicitor will, at this stage, obtain an official copy of your title together with copies of any documents referred to in your title from the Land Registry. (NB At one time, your title deeds would have been held by your mortgage lender. However, nowadays, proof of ownership is simply provided by way of an official copy of the Land Register.)
Following this, the contract and accompanying documentation will be prepared by your conveyancer and sent to your buyer’s conveyancer.
At this time, your buyer may ask any questions regarding the property, and your conveyancer or solicitor will reply.
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Completion
Once your buyer is content with the various aspects of the property, including search and survey results, has had sufficient responses to their pre-contract queries and received their mortgage offer, then provided all the parties in the chain are ready, a completion date will be agreed.
At this point, the contracts are ‘exchanged’ formally. A 10% deposit is usually paid and, with this, both the buyer and seller are formally committed to the transaction.
For completion to happen, all parties must align their responsibilities. The estate agent, mortgage lender and solicitors for both the buyer and seller must be well-organised and prepared for completion. If there is an issue with any of these parties, completion may be delayed, which can be costly and frustrating.
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Transfer Deed
Your conveyancer or solicitor will obtain a settlement figure to repay any outstanding amount on the existing mortgage (if applicable).
As the seller, you will promptly receive the transfer deed drafted by the buyer’s conveyancer that will need to be approved and signed by you in the presence of a witness.
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Final Day
On the day of completion, you should vacate the property by the agreed time and adhere to any pre-agreed arrangements regarding keys and other property security features. This is usually done through the estate agent.
The buyer’s conveyancer will send the balance of the sale price to the seller’s conveyancer. The seller’s conveyancer will then send the title deeds, transfer deed and any other relevant documents to the buyer’s conveyancer. They are sent with an undertaking to use the proceeds of the sale to discharge the existing mortgage (if applicable).
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Final Stages of Selling a Property
In relevant cases, your conveyancer will pay the estate agent, repay your mortgage lender and take payment for their services.
Once these payments have been made, the remaining money will be transferred to you, typically by way of a bank transfer.
Conveyancer Near Me
You should instruct a trusted solicitor or licensed conveyancer when selling a property. If you are uncertain where to begin, the Beverley Morris & Co. team will be able to guide you through the process carefully.
For more information about how to get started, please call 020 8852 4433 or email enquiries@beverleymorris.co.uk.
How much does it cost to make a Will with a solicitor?
The cost for a solicitor when making a Will varies, depending on various factors.
When making a Will, it is essential that you do not cut any corners. Homemade Wills are often invalid as the template provided is too simplistic. Very few estates are as straightforward as the online ‘do it yourself’ kits suggest. Therefore, in recent years there has been a definite and recognisable increase in the number of Wills contested in the UK.
Make a Will Solicitor
Your location, the size of your estate, and the solicitor you instruct will affect the amount you pay for a Will.
At Beverley Morris our fee for making a simple, straightforward Will is from £350 + vat for a single Will and from £550 + vat for mirror Wills. If you want to change or update your Will or your requirements are more complex we are happy to talk with you to discuss the likely costs depending on your specific requirements. Speak to our team today on 020 8852 4433.
Cost of making a Will with a Solicitor
It is not advisable to create or amend a Will without the guidance of a legal professional, as even though there is no legally set structure regarding how a Will should be formatted, a Will is not legally binding if it is not formally witnessed.
Lawyer for Will Near Me
If you want to create or amend your Will, it is essential to speak to a trusted solicitor to ensure that all of your wishes are catered for when you die.
If you are uncertain how your estate should be organised or want to speak to a trusted solicitor, please call 020 8852 4433 or email enquiries@beverleymorris.co.uk.
How long do lease extensions take?
Extending the term of a lease is known as a lease extension. A person might want to extend their lease for a variety of reasons. If a person wants to sell their house or flat but the property has a short lease, they will want to extend it. Properties with longer leases are more valuable. Furthermore, the lower the lease, the more expensive it becomes to extend, giving an incentive to people to extend their lease sooner rather than later.
A mortgage lender is unlikely to lend money on a property with a short lease, meaning the property will be challenging to sell. The owner, in this case, should extend the lease not only to add value, as abovementioned, but to ensure that the property is likely to sell on the housing market.
Timeframe for Lease Extension
The Leasehold Reform Housing & Urban Development Act 1993 outlines specific timeframes during which particular tasks must be completed.
The freeholder will be presented with an opening offer following a surveyor’s valuation. The figure is then served in a section 42, ‘Tenant’s Notice’ on the freeholder. Once the notice has been served, there is a 2-month timeframe in which the freeholder must respond and serve their own notice (section 45 notice).
If the parties involved cannot reach an agreement within a two to six month period, an application can be made to the First Tier Tribunal (FTT). This organisation can then decide on a fair price. However, the process can be expensive, so it is advised to try to reach agreement within the two to six months’ period, where possible.
Once agreement has been reached, your solicitor will complete the required paperwork for your new lease followed by the time it takes to register your new lease at the Land Registry.
Fees for lease extension
To find out how much your lease extension might cost, click here.
Property Solicitor Near Me
At Beverley Morris & Co. solicitors, we are experienced in assisting clients to extend their lease. We understand the various factors to consider and can advise accordingly.
Please get in touch with our property team in Blackheath on 020 8852 4433 or email enquiries@beverleymorris.co.uk. Alternatively, fill in this contact form.
What is equity transfer?
There are a few circumstances in which you might wish to change the co-ownership status of your property.
These might include:
- Adding your spouse or partner to the property
- Removing a former partner from the property (or a former spouse if you have divorced)
- Reducing inheritance tax liability in the future
Adding or removing someone from the title deeds of a property is known as a transfer of equity. At least one of the original property owners will remain.
What is the process of transfer of equity?
When transferring equity, you will wish to instruct a trusted solicitor to guide you through the process. If someone will be joining your title (ownership of the property with you), both parties can be represented together. However, if someone is to leave – during a divorce process for example -, the parties will need to have separate legal representation.
The key stages of a transfer of equity are as follows:
- Your solicitor will download from the Land Registry copies of the title deeds to the property and review these in order to check for any restrictions on the title. For example, in the case of a leasehold property, any change of ownership may require the consent of a management company. It may also be necessary for the ownership of a share of freehold or the ownership of a share in a management company to be transferred.
- Your solicitor will draw up the transfer deed document.
- Written consent will be needed from any third party such as a mortgage lender before you can proceed. Any such entity will need to be a party to the transfer deed for the transaction to be able to go ahead and it is important to be aware that any mortgage liability will pass to the transferee.
- You will meet with your solicitor and a witness in order to sign the transfer deed which will then be sent to your mortgage lender for signature and return to your solicitor. NB Your mortgage lender will likely charge a fee to sign the transfer deed.
- Save in the case of a transfer of property in the context of a divorce, stamp duty will be payable if the property is transferred in exchange for any payment PLUS any “assumption of debt” by the party assuming responsibility for the other party’s share of the mortgage exceeds the stamp duty allowance applicable at the time. The rate of stamp duty increases if the party responsible for paying it or their spouse already owns another property. A property lawyer will be able to advice you of any liability obligations.
- The Land Registry must be notified. The Land Registry fee will range between £20 and £305 depending on the circumstances.
Transfer of Equity Solicitor Blackheath
At Beverley Morris & Co., we will gladly support you through the equity transfer process, no matter what your circumstances. For more information surrounding Transfer of Equity, contact our team on 020 8852 4433 or email enquiries@beverleymorris.co.uk.
In 2023, there are set to be updates surrounding Capital Gains Tax, with couples no longer needing to settle their estate within a year of the divorce and pay Capital Gains Tax bills. Learn more here.
Separating assets after divorce: dividing property
During the divorce process, you must consider a variety of factors. Not only will you have to agree on children arrangements and the division of your finances but you will also have to consider how you will split the property you own. If you wish to transfer ownership of the property from one to the other, you will need to go through a process called ‘transfer of equity’. To do this, you will need to employ the services of a regulated professional.
Whilst the process may be relatively straightforward, in some cases it can be more complex – especially where the property is the main asset within the financial settlement of the divorce.
Equity Transfer
Transfer of Equity is the legal process required to add or remove someone from the title deeds of a property. If you are removed from the title deeds, you are removed as an owner. Money (or a monetary equivalent) may need to change hands and the remaining owner may need to take over liability for an existing mortgage or re-mortgage the property with a different lender.
Selling a property is quite different from an equity transfer. If equity has been transferred, at least one of the parties remains an owner of the property, namely, the person who receives the equity transfer.
Who owns the property after divorce?
During the divorce process, you and your spouse may decide that you wish to sell the marital home and divide the net sale proceeds or you may decide that you wish to transfer the equity so that one spouse becomes the sole owner of the property. Your decision will be based on a number of factors including the financial income of the parties, the original owner of the home (if one spouse moved in after the other party already owned the property) or if one of you is planning that the children will remain living with you at the property.
Overall, it is up to you during the divorce to decide how the property and your other assets will be divided. This will be outlined and included in your final divorce settlement.
What is a consent order?
A consent order is used to record the details of a divorce settlement. It is used when you have agreed on the details of your divorce, including assets, liabilities, pensions and income. Once finalised, a consent order is presented to the Court to make it legally binding. Thereafter, one party will be unable to make future claims against the other relating to their finances or other assets which is why obtaining a consent order is advisable.
If you are unsure, consult a trusted solicitor to talk you through the process and ensure that all necessary grounds are covered to protect your future.
Capital Gains Tax Updates 2023
As of April 2023, the rules surrounding transfer of equity are being updated. The update will mean that couples will no longer need to settle their estate within a year of divorce and pay Capital Gains Tax (CGT) bills. The update will bring a period of up to three years during which to make no gain or no loss transfers of assets between spouses when they no longer live together. In cases where the assets involved are the subject of a formal divorce agreement, there will be no time limit.
With existing law, when a couple separates, no gain or no loss treatment is only available concerning disposals during the remainder of the tax year in which the separation happens. Following that, transfers are treated as normal disposals for CGT purposes.
For more information about the CGT update, click here.
Equity Transfer Solicitor Near Me
It is inadvisable to attempt to complete a transfer of equity by yourself. It will also not be possible if a mortgage is involved since any mortgage lender will require a solicitor to represent them. It is also essential that any dealings with the property are correctly registered with the Land Registry.
Solicitors Financial Settlement Blackheath
At Beverley Morris & Co., we understand that although you may believe your separation to be amicable and straightforward, issues surrounding equity transfer and your financial settlement may not be so straightforward, therefore we recommend that you take advice from an experienced solicitor.
Our divorce and property teams will work harmoniously to ensure that all relevant ground is covered, prioritising your understanding of your legal rights and all your available options.
Contact us today for more information about how our Family Law solicitors in Blackheath may be able to assist you.