Purchasing Property in the UK Mr Stefano Lucatello Senior Partner Kobalt Law LLP Office 5 Fairbank Studios, 71/85 Burnaby Street, Chelsea, SW10-0NS Web: www.kobaltlaw.co.uk Email: email@example.com Tel: 0207 739 1700 Regulated by the Solicitors Regulatory Authority UK.
Who are we? • Languages spoken within the firm: 15 • Countries we advise on: Approx. 50 • Solicitors and International lawyers based in London. • Offices in Monaco and Northern Cyprus. • Regulated by the Solicitors Regulation Authority. • English and Internationally qualified lawyers under one roof.
Legal Services • Residential and commercial property. • Review of contracts. • Due diligence. • Estate planning. • Wills. • Legalisation of documents. • Commercial law. • Civil litigation. • Incorporation of companies in England.
Agenda • Background on the UK property market. • Conveyancing process in the UK, for Leasehold and Freehold. • Pitfalls of Buying in the UK. • Protection against Pitfalls.
UK Property Market • Property prices are now 1.9% higher than a year ago. • Average Property price is £163,600 up from £157,767 in 2009 (National Average) • House prices are expected to rise across the UK over 2013 with sales continuing on modest upward trend. Halifax 03/2013
Why buy in UK? • 50,000 more employed in the last 12 months. • More competitive loans from banks and mortgage brokers. • Confidence is growing in UK consumer debts & confidence in the UK economy itself. • Funding for Lending Scheme: Reduction in cost of borrowing by banks being passed on to consumers.
Why buy in UK cont..? • Deposits asked for by banks falling below 20%. • Base rate to be kept at 0.5-0.75% by BoE for 2013 • London property prices less sensitive to economic conditions. • Rental properties in high demand due to rising house prices “Rental Boom”
Purchase Process • Taking Instructions. • Investigate Title: Registered? Unregistered? • Pre-contract searches & enquiries. • Planning Permission? • Finances? • Approve Draft Contract. • Exchange of Contract. • Prepare Transfer Deed. • Pre-Completion Searches. • Completion. • Post-completion matters: SDLT& Registration.
Pitfalls • Unregistered Land: Root of Title & Epitome of Title. • Stamp Duties. • Description of Land. • Incumbrances. • Execution. • Any Trustees to the Land? • Co-Owners? • Tenancy in Common / Joint Tenants • Outstanding Mortgages? • Leasehold/Freehold? • Contract Race?
Pitfalls • Easements: • Right of Way? • Right for Services? • Access to maintain the above? • Right of Light? • Right of Support?
Pitfalls • Covenants: • Restrictive: Burden runs with the land • Positive: Burden does notrun with the land • Common Covenants: • Restriction of use • Restrictions on building • Not to cause nuisance or annoyance • To erect and maintain boundary fence/wall • Contributions towards maintenance of shared facilities
Protection against Pitfalls • Investigation of Title: • Searches: • Mines & Minerals: CON29M • CON29R & CON29O • Land Charges Search: K15 & K16 • Local Land Charges Search LLC1 • General Enquiries of Seller: GE30C • CPSE: For Commercial Properties • Environmental and other searches: Chancel Repairs (Wallbanks Story ), Highways, Railways, Flooding, Land Adjoining rivers and canals.
Protection against Pitfalls • Indemnity Insurance: • If any Covenants are breached, Indemnity Insurance will indemnify buyer. • E.g. First Title Insurance plc.
Thank You Mr Stefano Lucatello Senior Partner Kobalt Law LLP Office 5 Fairbank Studios, 71/85 Burnaby Street, Chelsea, SW10-0NS