You will no longer be able to bank on your Bank to sort things out after your death

HSBC, formerly known as the Midland Bank, have taken the decision to stop offering a probate service.

If you have appointed HSBC or the Midland to act as your executor, they will no longer undertake this role so now is a good time to review your appointed executors.

Hartley and Worstenholme have a wealth of experience both acting as executors and advising and supporting family members who have been given this role. We offer a personal and thorough service to ensure that your estate is dealt with appropriately in the event of your death.

If you would like to appoint alternative executors or if you would like to revise your will for any other reason, contact reception today and make an appointment’

A poll conducted by the Law Society has found that the most stressful aspect of buying a new home is the time it takes to advance the matter to completion. In fact, 65% of homebuyers indicated that they were willing to pay more in legal fees in exchange for a speedier transaction.

The conveyancing process takes, on average, 11.3 weeks to complete. At Hartley & Worstenholme, we aim to progress the matter to completion within this time frame, or sooner, without ‘hiking up’ our fees.

To speed up the conveyancing process, we aim to:

–          open your file and produce the initial paperwork within a week of receiving sales instructions

–          deal with correspondence as soon as possible

–          liaise with estate agents and brokers who are helpful in progressing the matter

–          schedule a review of your file at appropriate intervals so that you are always on our radar

–          tell you up front what we need from you to proceed as quickly as possible

Sometimes, transactions cannot be completed within the anticipated time period for many reasons – for example, where there are issues with funding, whether there are title defects or whether there is an uncooperative seller. Of course, we strive in these situations to keep you fully informed of any delay and to get the matter to completion as quickly as possible.

You can help us keep the process efficient by:

–          arranging funding prior to making an offer on the property

–          promptly replying to our correspondence

–          keeping in touch with the estate agent

Hartley & Worstenholme aim to ensure that our pursuit of a speedy and efficient transaction does not affect our thorough, diligent and tailor-made service.

The European Union (‘EU’) have recently announced new mortgage rules to be introduced in all countries that are members of the EU.

England and Wales will therefore be affected by the new regime which, by March 2016, must be implemented in relation to all residential and commercial mortgages.

The new rules will mean that, rather than producing mortgage offers as we know them today, financial institutions such as banks and building societies will make an ‘offer binding on the creditor’ along with a seven day period for the consumer to reflect on the offer before accepting or declining it. The ‘offer binding on the creditor’ will mean that, once the financial institution has approved a borrower as a candidate suitable for a mortgage, there will be a trigger where the offer becomes irrevocable (for example, by the submission of a request for funds by the conveyancer). The rules are said to be aimed at allowing borrowers to fully assess the offers, think about the implications of entering into the life-changing loan and thus make an informed decision whether to enter into the agreement or not.

This differs from the current regime as, when a mortgage offer is produced, there is an expiry period (usually of 6 months) whereby the buyer can either draw down the funds and use them or allow the offer to expire. A buyer is not bound by the terms of the mortgage until the monies are drawn down by the conveyancer and used to buy a property.

It is feared that, when these rules are incorporated into our domestic law, this will place some significant strain and cost on the industry, remove some consumer protections and design a new framework for conveyancers and consumers to work within. The government have, however, given us some hope that they will limit the effect of the new regime by altering only a minimal part of the framework we currently work within.

Hartley & Worstenholme are preparing themselves for the changes and training its staff on the new regime so that, once introduced, we can hit the ground running.

A recent case in the High Court has provided guidance on what should be considered when a spouse applies for  maintenance payments.

Spousal maintenance, put simply, amounts to payments made from one spouse (‘Payer’) to another (‘Payee’)on a regular basis so that the Payee may continue to cope financially and transition to a financially independent life. Such payments are often made when one spouse cares for the children following divorce or if, prior to divorce, one spouse was supported financially by the other.

The guidelines set out by the Court will help family lawyers determine what criteria should resolve the issue of maintenance. They are also useful for divorcees when considering what type of information, along with supporting documentation, they could produce to assist their lawyers in making a good case.

Points to consider are:

1. Why should the Payer be liable for the financial maintenance of the Payee?

Maintenance may be appropriate where, for example,: one has been a home-maker and forsaken their career, one has earned significantly more than the other and that person has come to rely on the additional income

2. What are the Payees’ needs?

The focus is on needs not wants

3. Will the Payee suffer any significant financial hardship of maintenance is not paid?

4. What level of maintenance is needed, and how long is it needed for?

Emphasis is placed on the transition to independent life and a reasonable term should be considered (maintenance to be paid for, say, five years) unless undue hardship would be suffered after the order has expired

5. What standard of living did the family have during marital life?

This is relevant to how much maintenance should be paid, but is not the decisive factor

6. Does the Payee have to produce a detailed itemised budget that will be scrutinised for errors and economics?

No. The court say that a global view should be taken of the total budget and consider whether it represents a ‘fair proportion of the Payers’ available income’

Very often maintenance depends on balancing the Payer’s available income against the Payee’s financial needs.

If you believe that you are entitled to spousal maintenance, you should make an appointment to see one of our expert family lawyers who will be able to discuss your case further.

When couples divorce, they sometimes informally agree what will happen to the matrimonial home. They might agree that the wife should live there until the youngest reaches adulthood, that the property be sold and the proceeds be divided (not necessarily equally) or for the outgoing party to be ‘bought out’ by the person who stays. The matrimonial home is often the most valuable asset that a couple own – it is therefore very important that any agreement relating to it is set out with certainty, for both you and your future.

It is essential, when you are in the process of obtaining a divorce, that you carefully consider what you wish to do with your home (and other property you own). If you and your ex-spouse can reach an agreement this can be embodied in a document called a separation agreement or into a document which is then approved by the Court (a ‘Consent Order’). Otherwise, if you cannot agree, the court may make its own order regarding how the property will be divided. Whilst a separation agreement only shows the intention of the parties, either of the types of order may ‘set in stone’ what will happen with your property (and other assets) and should bring an end to any future claims which your ex-spouse may bring against you.

If you are already divorced but, at the time, you did not seek an order, it is possible that your ex-spouse may still be able to claim financial support from you. It is advisable, if you are concerned about this, that you speak to us so that you can be clear on your position. Because of this, when we are approached by clients who wish to ‘buy out’ their ex-spouse or sell the property some years after the divorce, we advise that you seek our advice regarding ‘closing the door’ on future claims.

If you are divorced or divorcing and currently own a property with your former spouse, please do not hesitate to contact our Family Department for further advice and to start the ball rolling. Our Conveyancing Department works closely with the Family Department to ensure a smooth and efficient process.

Hartley & Worstenholme Senior Partner, Chris Wilton, has been consulted by the Land Registry ahead of it’s proposals for reform to Local Land Charges.

The Land Registry is proposing widespread reforms of the way in which Local Land Charge records are searched – something which affects the vast majority of land transactions, from residential conveyancing to complex commercial property matters.

At present, if you were to buy property, your solicitor will carry out a ‘Local Search’ which searches records of the local authority for any ‘charges’ or entries which may affect the property. The response time of Land Charges departments can vary greatly, and it is increasingly important that the results are provided by the local authority quickly. Some local authorities provide an efficient service, often returning local searches within 24 hours. Other local authorities can take up to a month to provide results. Where such delays occur, this can often have a knock-on effect to the property transaction, and is extremely frustrating for clients and solicitors alike.

The Land Registry is now proposing a central service which searches the records of local authorities’ Land Charges departments, with a view to streamlining the whole process. The new system will provide a much quicker return, meaning that those dealing in property won’t be sitting waiting (and losing money) whilst local searches are carried out.

Senior Partner Chris Wilton (right) with Jamie Winch, Stakeholder and Policy Manager in the Local Land Charges Team at the Land Registry.

“The proposed reforms to Land Charges can only bring about a positive result for law firms and for clients. In today’s market, time is often the key factor in any transaction, with expectations on solicitors to complete matters within the shortest timeframe possible. The Land Registry is constantly trying to streamline their practices, and we are very pleased to continue to be consulted by the Land Registry in their proposals here.

“We were involved in the consultation process for the e-DRS system, which enables us to lodge applications online with the Land Registry, rather than having the post off cumbersome bundles of paper and deeds. We hope the new Land Charges system will provide similar benefits, in both time and cost, which our clients will ultimately benefit from,” Chris Wilton, senior partner at Hartley & Worstenholme and head of the Commercial Property department commented.

Hartley & Worstenholme now lodge 94% of dealings of whole by e-DRS which provides a 50% reduction in the fee charged by the Land Registry. This saving is passed on to clients on all matters which sets us apart from some other firms that continue to use the old ‘paper’ format. Using the e-DRS often means land is registered in the name of the new owner much more quickly, something that is increasingly important in a market where land changes hands so frequently.

To read more on this subject, please visit the Land Registry Blog.

A survey by the Federation of Small Business (‘FSB’) in 2013 showed that 7% of small businesses were paying out more in business rates than they were in rent. Additionally, a further 6% said the business rates they paid were equivalent to rental payments.

Research has shown that many small businesses don’t know about the reliefs which they may be entitled to claim in respect of business rates. Reliefs can be up to 100% for some businesses, reducing overheads with a view to enabling continuing success and growth.

The Government recently announced extensions to these reliefs as part of it’s commitment to encouraging growth of small business. The FSB have welcomed the extensions with open arms and are confident that many small businesses will receive benefits from the reforms. A further review of the ratings system will also take place in the future, with a view to making the current system much more accessible, and reliefs more readily available.

Will you qualify?
Briefly, if you occupy one business property and the current rateable value of your property is less than £12,000, you will qualify for relief.
Your rateable value is decided by the ratings department of your local authority. If you are unsure of your rateable value, you should contact your local authority as soon as possible to avoid overpayments.

What reliefs can you claim?
If your rateable value is £6,000 or less, you can claim 100% relief – ie. you won’t pay any business rates up to 31 March 2015. This was previously 50% so small business should act soon to ensure they are getting the maximum relief.
For rateable values between £6,001 and £12,000, the relief tapers down from 100% to 0%.
If your rateable value is between £12,001 and £17,999, you won’t qualify for relief but you will still be deemed a ‘small business’ and you will be charged business rates on a separate scale to larger businesses.

How do you claim?
Applying for business rates is simple, and can be done either over the phone with your local authority or via your local authority website.
For businesses in the Wakefield district, more information on small business rate relief can be found here. The page also contains a downloadable form which can be filled in and submitted to claim relief. Businesses will be pleased to note that the form is only one side of A4 and isn’t time-consuming to complete.
Most local authorities will have similar guidance, so the above should help if you’re struggling to work out whether you qualify.

Small businesses should continue to monitor the changes in relation to business rates as any further reforms could mean entitlement to different reliefs. When the new system is introduced (whenever that may be), small businesses should be able to understand their position more clearly, thus being able to focus on running their business with minimal interruption.

If you would like any further information on the above, please get in touch with us via the Contact Us page.

Joint Ownership of Property – for couples and investors!

If you are considering purchasing a property with your spouse, partner, relative or friend, either as a home to live in or an investment property, there are some important things you need to know.

When you buy a property with another, you will both be legal owners of the property. However, there are several ways in which you may ‘own’ the equity.

Beneficial Joint Tenants
With this type of arrangement, the equity is owned as if by ‘one person’; that is, each owner does not own a specified share of the equity. This type of arrangement means that, if one owner died, the property would pass by survivorship to the other(s). This type of arrangement usually suits the needs of spouses and partners.

Tenants in Common holding equal shares
A second common alternative is to hold the equity in equal shares; that is, each would own a specified 50% share of the equity. This type of arrangement means that, if one owner died, their share would not automatically pass to the other(s) by survivorship but would be administered in accordance with the deceased’s will (or under intestacy). This type of arrangement usually suits the needs of those who are purchasing an investment property where you have each contributed equal capital or similarly in circumstances where partners have contributed equal deposit monies.

Tenants in Common holding unequal shares
Finally, it is possible to own the equity in unequal shares; that is, each could specify exactly how much of the equity would be owned by whom. This type of arrangement would mean that, if one owner died, their specified unequal share would be administered in accordance with the deceased’s will (or under intestacy). This type of arrangement usually suits the needs of partners who are contributing unequal deposit monies or investors who are contributing uneven capital.

The need for a Will
Even when you own property as Beneficial Joint Tenants, the need for a will is vital when one is a property owner. A will allows you to have a ‘say’ in what happens to your property should the worst happen, as well as allowing you to make arrangements in relation to your other assets and even the guardianship of your children. We always recommend that you have a will.

If you are thinking about purchasing a property with another person, please contact our Conveyancing Department who will be able to provide further advice and a no-quibble quote.

Since April 2013 there have been fundamental changes to Family Law and, more particularly, the way in which clients need to fund family matters.

The Legal Aid, Sentencing and Punishment of Offenders Act 2012 removed Legal Aid from the majority of private family matters. In order to qualify for Legal Aid since April 2013, clients must have suffered domestic violence, have a child who has suffered abuse or be an “exceptional case”.

Unfortunately for most clients evidence of domestic violence seems to be hard to find. The Legal Aid Agency requires certain evidence of domestic violence such as Police evidence, medical evidence or referrals from domestic violence refuges. Clearly, due to its nature, this evidence is often difficult to come by and, therefore, many clients simply cannot qualify for Legal Aid. The result is that many clients are left without assistance.

If this were not enough, the cases which fall under the “exceptional” category are even fewer. In fact, nationally, only 14 of 1012 made last year were accepted by the Legal Aid Agency.

Despite this, Hartley and Worstenholme continue to make successful Legal Aid applications. Additionally, our staff are dedicated to finding a way of providing advice to those who cannot afford to fund it. Each Wednesday at Pontefract and Tuesday at Castleford we offer free legal advice from 4.30pm to 6.00pm for family matters. In addition, Castleford also offers litigation advice.

Hartley and Worstenholme welcome those who may require our help when many firms are turning their backs on those who need it most. We can provide either cost effective solutions or detailed information as to the evidence needed to apply for Legal Help and can assist victims of domestic violence when protective orders (such as injunctions) are needed.

Please contact the Family Department for more information.

Prenuptial (Pre-marriage) Agreements (known to newspapers and gossip columns as ‘Prenups’) are something we hear a lot about in the press and on TV. Most people imagine them to be reserved for celebrities or the extremely wealthy. What are they?

A Prenup is an agreement or contract between you and your soon-to-be spouse. They state, in essence, what would happen should your relationship break down in the future. They seem like a very unromantic idea when embarking upon a marriage to the person you love. However, approximately 42% of marriages end in divorce. Prenups might be unromantic, but they are very clever.

Prenups appeal to those who wish to retain their financial independence, those who want to be sure that they are marrying only for love and perhaps those who have been married before and wish to avoid any acrimony that often follows post-separation.

Although Prenups are becoming more popular among all types of clientele, in England and Wales, they are not yet legally enforceable. However a landmark case heard in the Supreme Court has changed the law’s attitude towards them. The courts are now attaching greater weight to Prenups when deciding in the divorce, ‘who gets what’. In fact, the courts are very likely to enforce a Prenup and follow its provisions unless to do so would be unfair upon one of the parties to the divorce.

Prenups are now so useful, popular and accepted that Parliament has responded to the growing trend. Parliament is proposing a law which would make Prenups legally enforceable.

Those who cohabit but are not married are not being left out either. Cohabitees can enter into a very similar arrangement to a Prenup called a ‘Living Together Agreement’. Again, this is an agreement between couples which can state not only each parties’ responsibilities during the course of the cohabitation but also what is to happen should the relationship break down. As the law currently stands, these agreements may be legally enforceable but there can be no guarantee of this. Cohabitees need also to clearly recording shares in which any joint property is owned, make suitable will provision as well as consider making nominations to receive benefits under pensions and/or life policies upon death.

These are agreements which appeal to clients who wish to feel prepared and protected against the unknown future. Here at Hartley and Worstenholme, we draft and advise on both Prenuptial and Living Together Agreements. Please contact the Family Department if you would like to know more.