Hart Brown named as one of the first firms in the UK to be accredited under the new Conveyancing Quality Scheme
Just 20 firms have been recognised for meeting the Law Society's comprehensive quality standards for residential conveyancing practices.
Hart Brown, a leading law firm with offices throughout Surrey and in London, today announced that, it is one of the first law firms to be accredited under the new Conveyancing Quality Scheme (CQS). Launched by the Law Society, the CQS provides a recognised quality standard for residential conveyancing practices, and will therefore enable Hart Brown to enjoy even greater credibility with its key stakeholders, including regulators, lenders, insurers and its clients. Just 20 law firms have achieved this to date.
In addition to assessing the integrity of the Hart Brown's Senior Responsible Officer and other key conveyancing staff, the CQS also examined the firm's adherence to good practice management standards generally, and to prudent and efficient conveyancing procedures. The scheme, which is supported by the Council of Mortgage Lenders, has been open for applications since December 2010.
"The aim of the CQS scheme is not only to improve the quality of conveyancing, but also to encourage the public to work with firms that have proven their ability to meet these stringent standards consistently," says David Knapp, Partner and Head of Residential Property, Hart Brown. "To be in the first batch of those accredited is a testimony to our excellent quality procedures, the staff involved in the conveyancing process, and also to our accounts team, who also needed to be carefully vetted in order for us to demonstrate compliance with CQS standards."
According to the Law Society, the aim of the scheme is not only to reinforce consistency of standards throughout the conveyancing process, but also to reduce the risk of fraud and give consumers peace of mind when it comes to home buying. Practices applying to join the scheme must undergo a robust assessment and will be required to renew their membership of the scheme each year.
In addition to improving the quality of UK conveyancing, the CQS scheme will help to create a trusted community better equipped to deter fraud. As such, although CQS membership will not guarantee acceptance onto lenders' panels, the Council of Mortgage Lenders (CML) has indicated that membership is likely to become a pre-requisite for firms wishing to join/remain on their panels in the future.
"At Hart Brown we understand that whether you are buying or selling a property, you'll want to have the process explained to you in simple and easy to understand language, be kept informed throughout the process, and have the process proceed as smoothly as possible," David Knapp continues. "Schemes like the CQS help us to highlight our expertise in all of these important areas, and to ensure that one of the most expensive purchases or sales you are likely to make is handled properly, and with clear and consistent communication throughout the entire process."
Find out more about Hart Brown's Residential Property Conveyancing department
David Knapp, Partner, Residential property conveyancing, Hart Brown
Showing posts with label residential property. Show all posts
Showing posts with label residential property. Show all posts
Monday, 21 March 2011
Wednesday, 2 March 2011
Stamp Duty Land Tax - is it avoidable?
Stamp Duty Land Tax (SDLT) replaced stamp duty for property transactions with effect from 1 December 2003 and is charged at 1% for purchases over £125,000, 3% for those over £250,000 and 4% over £500,000. A new 5% band comes into force on 6 April this year for purchases over £1,000,000.
As the legislation was quite complex, it led to a number of schemes (usually for purchases over £500,000) claiming to exploit loopholes and avoid the payment of any SDLT. Although the implementation costs often amount to half the SDLT otherwise payable, the saving to purchasers is still significant. Promoters of these schemes invariably claim that they are watertight, backed by a senior barrister’s opinion and approved by HM Revenue & Customs (HMRC).
This sounds convincing but is it that easy to avoid paying SDLT? At Hart Brown we have always been sceptical. SDLT is a compulsory tax on property transactions. If a person purchases a property for more than £125,000.00 he should expect to pay SDLT at the appropriate rate. This view is supported by HMRC which recently announced that it is challenging these schemes as it does not believe they work or have the effect the promoters claim, adding it “will relentlessly pursue those who deliberately bend or break the rules – including where appropriate seeking penalties”.
Anyone who has participated in such a scheme now faces the prospect of paying the SDLT many months or even years after completion, with interest for late payment and costly penalties, an investigation into his or her financial affairs and, in the worst case scenario, prosecution.
For those still tempted to participate the message is clear – do not be fooled by the promoters’ claims, however persuasive they may appear to be. It is not worth the risk.
Peter Howe, Associate, Hart Brown
As the legislation was quite complex, it led to a number of schemes (usually for purchases over £500,000) claiming to exploit loopholes and avoid the payment of any SDLT. Although the implementation costs often amount to half the SDLT otherwise payable, the saving to purchasers is still significant. Promoters of these schemes invariably claim that they are watertight, backed by a senior barrister’s opinion and approved by HM Revenue & Customs (HMRC).
This sounds convincing but is it that easy to avoid paying SDLT? At Hart Brown we have always been sceptical. SDLT is a compulsory tax on property transactions. If a person purchases a property for more than £125,000.00 he should expect to pay SDLT at the appropriate rate. This view is supported by HMRC which recently announced that it is challenging these schemes as it does not believe they work or have the effect the promoters claim, adding it “will relentlessly pursue those who deliberately bend or break the rules – including where appropriate seeking penalties”.
Anyone who has participated in such a scheme now faces the prospect of paying the SDLT many months or even years after completion, with interest for late payment and costly penalties, an investigation into his or her financial affairs and, in the worst case scenario, prosecution.
For those still tempted to participate the message is clear – do not be fooled by the promoters’ claims, however persuasive they may appear to be. It is not worth the risk.
Peter Howe, Associate, Hart Brown
Friday, 18 February 2011
Real news for first time buyers?
Will the provision of large loan to value mortgages really be the way to introduce confidence into the market and set the first time buyer’s pulses racing? This initiative does not solve the problem of severe job insecurity which is a hurdle that a large number of potential first time buyers are finding impossible to negotiate.
Lenders also have astonishingly short memories. The high % loan to value mortgages in the late 80’s saw properties quickly enter negative equity when the market dropped in value in the early 90’s. The same happened in more dramatic terms in early 2008.
Mervyn King has put forward his thoughts as to the problems in the economy and the spectre of 1.25% interest rates by the end of 2011 is now a real possibility, if not probability. Where will people find the extra amount of interest they need to pay should rates go up when there are few pay rises in any sector? The feeling in the property industry is that any significant rise in interest rates, with 1% being considered very significant, will kill the market stone dead whilst distressing huge numbers of house owners who have struggled through the last 24 months.
All in all, is this really the time for young first time buyers to saddle themselves with a 90 or 95% mortgage?
http://www.guardian.co.uk/money/2011/feb/17/mortgage-lenders-first-time-buyers
David Knapp, Partner
Residential Property
Lenders also have astonishingly short memories. The high % loan to value mortgages in the late 80’s saw properties quickly enter negative equity when the market dropped in value in the early 90’s. The same happened in more dramatic terms in early 2008.
Mervyn King has put forward his thoughts as to the problems in the economy and the spectre of 1.25% interest rates by the end of 2011 is now a real possibility, if not probability. Where will people find the extra amount of interest they need to pay should rates go up when there are few pay rises in any sector? The feeling in the property industry is that any significant rise in interest rates, with 1% being considered very significant, will kill the market stone dead whilst distressing huge numbers of house owners who have struggled through the last 24 months.
All in all, is this really the time for young first time buyers to saddle themselves with a 90 or 95% mortgage?
http://www.guardian.co.uk/money/2011/feb/17/mortgage-lenders-first-time-buyers
David Knapp, Partner
Residential Property
For the next generation of house buyers?
For dinosaurs like me, the concept of receiving mortgage information through my telephone is beyond my brain’s capacity!
My children however would lap it up.
Mortgage lenders are predominantly not interested in dinosaurs as they have a habit of becoming extinct and in any event dinosaurs can use their old fashioned ways to find the “food” source of a money loan that currently exist.
The next generation, well, the next but one (such as my children), will find this a very useful method of sourcing finance, providing they are able to allow themselves 5 minutes from the texts to their friends…..
http://www.guardian.co.uk/money/2011/feb/16/mortgage-assistant-app-of-week
Do you think this app will be a useful tool for house buyers? Let us know!
David Knapp, Partner
Residential Property
My children however would lap it up.
Mortgage lenders are predominantly not interested in dinosaurs as they have a habit of becoming extinct and in any event dinosaurs can use their old fashioned ways to find the “food” source of a money loan that currently exist.
The next generation, well, the next but one (such as my children), will find this a very useful method of sourcing finance, providing they are able to allow themselves 5 minutes from the texts to their friends…..
http://www.guardian.co.uk/money/2011/feb/16/mortgage-assistant-app-of-week
Do you think this app will be a useful tool for house buyers? Let us know!
David Knapp, Partner
Residential Property
Monday, 10 January 2011
UK house prices fell 1.3% in December 2010
Our solicitors comment on the BBC article "UK house prices fell 1.3% in December, Halifax says"
The article comes as no surprise as the last 2 or 3 months have seen pressure on prices. Clients of ours who sold in the late summer, only to lose their buyers and to re sell in November and December are having to take a reduced offer to re sell. Agents are desperate to keep buyers on board where matters have stagnated telling our sellers “you will not achieve this price in the current climate and for the foreseeable future”. Gazzundering, where buyers come in at the last minute requesting a price reduction for no reason other than the market suggests a reduction in value, is common place but does not seem to receive the press coverage expressing the out rage that accompanies the opposite, gazumping, when a seller ups the price at the last minute. Interestingly gazundering is seen as fair game but gazzumping as abhorrent.
There are no indicators as yet that the market is going to pick up at all from a price perspective in the coming 12 months and if anything is going to continue to slide downwards. This is positive from the point of view of first time buyers and those moving up market and so does not deserve the negative press that a sliding market receives. The negative press is generally generated by those having a vested interest in the market flying away upwards, estate agents and mortgage lenders.
Stability and volume is what most people in the interest would like to see.
Find out more about Hart Brown's Residential property team based in Surrey and South London
The article comes as no surprise as the last 2 or 3 months have seen pressure on prices. Clients of ours who sold in the late summer, only to lose their buyers and to re sell in November and December are having to take a reduced offer to re sell. Agents are desperate to keep buyers on board where matters have stagnated telling our sellers “you will not achieve this price in the current climate and for the foreseeable future”. Gazzundering, where buyers come in at the last minute requesting a price reduction for no reason other than the market suggests a reduction in value, is common place but does not seem to receive the press coverage expressing the out rage that accompanies the opposite, gazumping, when a seller ups the price at the last minute. Interestingly gazundering is seen as fair game but gazzumping as abhorrent.
There are no indicators as yet that the market is going to pick up at all from a price perspective in the coming 12 months and if anything is going to continue to slide downwards. This is positive from the point of view of first time buyers and those moving up market and so does not deserve the negative press that a sliding market receives. The negative press is generally generated by those having a vested interest in the market flying away upwards, estate agents and mortgage lenders.
Stability and volume is what most people in the interest would like to see.
Find out more about Hart Brown's Residential property team based in Surrey and South London
Wednesday, 27 October 2010
House prices heading for a fall, surveyors warn
The report does confirm the trend experienced by Hart Brown’s residential property department over the last 2 or 3 months. The number of transactions has reduced with buyers becoming much more circumspect before offering on properties. The first 6 months of 2010 saw activity levels close to those of the heady days of 2007 but this was mainly due to a release of frustration from pent up buyers who had sat on their hands during the worst of the recession.
Once the fears of the public became reality in the form of massive public spending cuts following the election, buyers once again faded away at the same time as a number of sellers put their properties on the market. The political uncertainty at the time of the election saw some sellers holding fire in marketing until after the election which in hindsight can be seen as unwise. Since the election the balance has indeed swung in favour of buyers who, on a supply and demand basis, have more properties to choose from.
Some reports suggest that September’s lending figures show the lowest number of approved mortgages were the lowest for 10 years.
Due to uncertainty over jobs and the medium term concerns over the performance of the property market the % of transactions becoming abortive is higher than for some many months with many sellers who lose buyers selling at a good 5 or 10% less than the original offer.
The rental market is extremely buoyant which is a bad sign for the residential market as potential buyers are moving into temporary accommodation to gauge the market in the hope and now, expectation, of a further drop in prices.
As for the longer term view interest rates hold the key. The timing of any rise in rates will be absolutely key. Any rise ion the next 6 to 9 months would probably kill the market stone dead and cause some house owners huge problems. Coming out of fixed rates or tracker deals into above base rate products would see mortgage payments increase considerably and without pay rises result in many mortgages becoming unaffordable. Fire sales or repossessions would follow. We need to remember that rates came down in huge chunks, 1% and 0.5%, and are likely to go up at a similar rate, especially if inflation keeps running away.
A chill wind will blow over the already fragile residential property market this winter and possibly extend into the middle of 2011
Read the the article here
Read more about Hart Brown's conveyancing department
Article author: David Knapp
Once the fears of the public became reality in the form of massive public spending cuts following the election, buyers once again faded away at the same time as a number of sellers put their properties on the market. The political uncertainty at the time of the election saw some sellers holding fire in marketing until after the election which in hindsight can be seen as unwise. Since the election the balance has indeed swung in favour of buyers who, on a supply and demand basis, have more properties to choose from.
Some reports suggest that September’s lending figures show the lowest number of approved mortgages were the lowest for 10 years.
Due to uncertainty over jobs and the medium term concerns over the performance of the property market the % of transactions becoming abortive is higher than for some many months with many sellers who lose buyers selling at a good 5 or 10% less than the original offer.
The rental market is extremely buoyant which is a bad sign for the residential market as potential buyers are moving into temporary accommodation to gauge the market in the hope and now, expectation, of a further drop in prices.
As for the longer term view interest rates hold the key. The timing of any rise in rates will be absolutely key. Any rise ion the next 6 to 9 months would probably kill the market stone dead and cause some house owners huge problems. Coming out of fixed rates or tracker deals into above base rate products would see mortgage payments increase considerably and without pay rises result in many mortgages becoming unaffordable. Fire sales or repossessions would follow. We need to remember that rates came down in huge chunks, 1% and 0.5%, and are likely to go up at a similar rate, especially if inflation keeps running away.
A chill wind will blow over the already fragile residential property market this winter and possibly extend into the middle of 2011
Read the the article here
Read more about Hart Brown's conveyancing department
Article author: David Knapp
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