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JUL
06

London Property Market - A Real Opportunity for European Buyers

housing squareThe majority decision of the British electorate on 23 June 2016 to leave the European Union heralds a new dawn in the property market.

The uncertainty created by ‘Brexit’ has created new pricing opportunities for buyers who may otherwise have been unable to afford their first property purchase and encouraged overseas buyers, attracted by the cheaper pound, to purchase an array of properties at the higher end of the market.

Moreover, those clients who are selling their main residence and buying a new one, are now exercising greater flexibility in their pricing strategy. By accepting in some cases a lower price on their sale and successfully negotiating a larger discount on their related purchase.

The British Government as well as the Bank of England have also issued important and decisive policy announcements to embolden the country’s economy in today’s new era. Macro-economic policy changes include the Chancellor’s recent statement that he intends to lower the rate of Corporation Tax to under 15%. Mark Carney, the Governor of the Bank of England, has also stated that the Bank will step up its monetary measures to increase overall levels of confidence in the nation’s economy. Parts of the British press also believe that Mr Carney has already signalled his intention to lower in the near future, perhaps by this August, the benchmark rate of interest from 0.5% to 0.25%.

At Lewis Nedas Law, we as a team of property professionals are geared up for this new frontier in transactions- as we offer a Partner led group of conveyancers who can act quickly to achieve your objectives.

We also act for overseas clients from a range of countries including France, Spain, Italy and beyond- who require a more hands-on approach and greater level of advice during the course of their transactions.

To our prospective French speaking clients, we say: Nous vous invitons à considérer notre cabinet d'avocats. Nous offrons un service amical et un prix compétitif.

To our prospective Italian clients, we say: Vi invitiamo a prendere in considerazione il nostro studio legale. Offriamo un servizio amichevole e prezzi competitivi.

To our prospective Spanish clients, we say: Damos la bienvenida a considerar nuestro bufete de abogados. Ofrecemos un servicio amable y un precio competitivo.

And to one and all, we say: Welcome to Lewis Nedas, where we offer a friendly and competetively priced service on a range of property transactions.

 

If you are about to embark on a property transaction, please call Richard Greenby, Senior Associate  in our Property Dept on 0207 691 4560 for a free quote, or complete our online enquiry form here.

 

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1851 Hits
JUN
17

Wily Developers have been Outwitting London Boroughs when it comes to Affordable Housing'

affordable housing comicIt seems that London developers in London and the South East have been outmanoeuvring London Boroughs, not one London local authority has met it’s ‘affordable housing’ targets.

Affordable housing is defined as housing whose value is 20% less than the open market.

At the same time, there are 7,500 empty local authority properties in London and an overall figure of 21,000 lying empty when taking the private sector into account.

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1241 Hits
JUN
17

More Warnings for those who buy former Local Authority Properties on Estates or High Rise Buildings

housesAfter decades of underinvestment, many local authorities are having to find huge amounts of money to fund major works, and purchasers have found themselves presented with huge contribution bills.

The Guardian reports that in Oxford, 50 local authority property purchasers have been presented with bills of £50,000 each) towards these major works - there are no 'right to manage ' provisions which are available to leaseholders in the open property market, and those who cannot afford to pay are finding themselves having to surrender amounts of their equity to the local authority in lieu of payment.

It's an expensive lesson, but before buying such a property, do your research and make sure that your solicitor asks the right searching questions of the local authority and their plans for the future.

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924 Hits
JUN
17

At Long Last, the Mortgage Market is Waking Up

Housing questionThe mortgage market has finally realised that people are living for longer and the majority of property owners are asset rich and cash poor, and likely to lose out at the older end of the market to Equity Release, which has seen a huge surge over recent years.

After the early horrors of the early Equity Release products, the current offerings are clear, comprehensive but expensive.

Smaller specialist mortgage lenders have been prepared after the last financial crisis to lend to older borrowers but now the mainstream lenders have entered that older borrower market.

The Nationwide are prepared to lender BTL investors up to the age of 105, and The Halifax will lend to residential borrowers up to the age of 85 years.

Young people now fully expect to have a mortgage during their working lives and into retirement and so the mortgage market had to react to this and dispense with their ageist policies of refusing to lend after 65 years of age.

What is the best choice - Mortgage (mortgage extension) or Equity Release?

Equity Release, as we have already said is undoubtedly more expensive but it prevents repossession of the property. The ER borrower remains in the property until death or removal to a Care Home.

There is also the 'no negative equity guarantee'; i.e. that a borrower cannot owe more than the value of the property.

The huge increase in negative equity is used by borrowers to: assist family to get onto the property market; pay for grandchildren’s university education; meet the cost of home adaptations so that the borrowers can remain in their homes or to pay off existing debts There also remains the issues of potential beneficiaries, many of whom are shocked to learn after probate that their parents have obtained Equity Release against the family home, often the main asset. It's best to ensure that all potential beneficiaries are made aware, in writing, of your ER intentions before you go ahead.

If on the other hand you have an income in retirement it would be cheaper to mortgage or extend a mortgage but there always remains the threat of repossession should you default.

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1348 Hits
JUN
17

So Just How are Buy to Let Investors reacting to the Increase in Stamp Duty?

buy to let signMost assume that the increase, together with the reduction in tax relief, will be passed to the Landlord’s tenants.

Some investors are setting up corporate structures in which mortgage interest could still be set off against tax; we would advise consulting a specialist tax accountant if you are thinking of doing this.

Allsop, the auctioneers, are reporting that they witnessed the largest turnout to date at one of their more recent property auctions, though they noted that the bids on property  were lower than the past.

Overall, the increase in stamp duty does not appear to have deterred BTL investors.

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