Legal considerations if you are tempted to buy a holiday home

Summer is around the corner, and it is not uncommon to want to prolong that holiday feeling and dream of investing in a holiday home which allows you to return to your favourite spot more frequently. Holiday home ownership has boomed recently and in 2021 second homes accounted for more than 24,000 purchases. Many of these were on the coast or other areas of natural beauty, where house prices have also seen rapid growth. ‘If you are planning to buy a holiday home, it is important to consider the issues carefully and not get swept away by enthusiasm or high-pressure sales tactics,’ says Holly Stevens, Director & Head of Residential Property with Ware & Kay in York. ‘Buying any property is a major investment, and holiday home ownership can involve additional considerations with long-term consequences, so…

Transferring property between partners

Your home is often your most important asset, and you may be lucky enough to own other property such as a holiday home or a buy-to-let investment.  Over time, if your personal circumstances change; you may want or need to transfer a share in a property.  This could be the transfer of a share in the value of your home to your former spouse if you are getting divorced, or to a new partner if you have moved in together. ‘Transferring property between family members is not always straightforward,’ warns Holly Stevens, Director and Head of Residential Property in York. ‘Your plans will need to take account of ownership structure and should be consistent with your longer-term goals.’ Holly looks at the issues to consider when transferring property between partners. Establishing the legal and beneficial interests…

Key considerations when helping your children onto the property ladder

First-time buyers today must find, on average, a deposit equal to a year’s salary. With almost half relying on parental assistance, the ‘Bank of Mum and Dad’ has never been so popular. House price affordability and the phasing out of the Help to Buy scheme make this trend set to continue. It is natural to want to help your children onto the property ladder if finances permit. However, if you are considering making a financial contribution, get the right professional advice first and ensure the agreement is documented to reduce the risk of problems arising later. Plan for the long term If you have built up savings, you may prefer to help your child now rather than pass on those assets through inheritance, but it is important to make sure you will still have enough left…

Bridging to buy a new home

Recent reports in the financial press suggest more homebuyers are taking out bridging loans so that a purchase can proceed before they have sold their existing property.  A shortage of supply in sought-after locations has made some buyers reluctant to lose a property that they really want. If you are selling your home and buying another, you will usually aim to complete the two transactions back-to-back. You can then use the income from your sale to fund your purchase, and there is generally a chain of interdependent transactions where each buyer, except the one at the bottom of the chain, relies upon selling their own property before they can proceed. ‘Taking a loan, which helps you bridge the gap between acquiring your new home and later completing the sale of your old one, can let you…

Selling a rental property

One in five landlords plan to sell, citing increased regulation and less favourable tax treatment as reasons, according to a recent survey by a leading building society. ‘If you have a tenant, a key decision will be whether to sell with them in place or with vacant possession,’ says Tracie Middleton, Solicitor in the Residential Property Team with Pearsons & Ward in Malton (part of Ware & Kay Solicitors). ‘Talking to your professional advisors can help you weigh up all the pros and cons, and plan for the additional things to consider if you want your transaction to go smoothly.’ You can sell your property subject to the existing tenancy, which means your buyer will effectively step into your shoes as landlord. In contrast, if you sell with vacant possession, you must ensure your tenants leave…

Wood burners and open fires, what to consider when buying a new home

A wood burner or open fire is an attractive feature in a property, especially as the nights draw in and temperatures drop. If are buying a property with one, or you plan to install a log burner in your new home, there are important things to consider. Most people know gas boilers and electrical wiring need to meet certain standards but are less aware about the rules for solid fuel.  This can cause problems further down the line, especially as the regulations in this area are becoming more stringent. Here we explain the issues to look for and how your solicitor can help. Smoke control areas When you buy a property, your solicitor will make pre-contract searches which will show whether it is in a smoke control area. These tend to be in urban conurbations. Tell…

The hidden costs of leasehold property

You may have seen recent media reports on the so-called leasehold scandal. First, escalating ground rents, which increase exponentially after periodic reviews. Then, the cladding crisis, which has spotlighted the costs landlords can pass on through service charges. So, if you are buying a new home, should you avoid leasehold properties? ‘There are definitely more issues with a leasehold home than a freehold one,’ agrees Holly Stevens, Head of Residential Property with Ware & Kay at York.  ‘However, this does not mean you should discount a leasehold property. While there may be extra things to consider, we will help you to mitigate risks and there are also government reforms in the pipeline, which will increase protection.’ Here we look at some of the issues and the additional costs which arise with a leasehold property. Ground rents…

Don’t fall out over the fixtures and fittings

A home buyer on an internet forum asked, ‘What is the pettiest thing your seller has removed?’ Most replies are light-hearted: a loo roll holder, the curtain rails, a basketball hoop from above the garage door. Some tell a different story of buyers moving in and discovering missing kitchen units or damage from ripped out features. Others tell of an attic stuffed full of junk. Fixtures and fittings can quickly become a source of irritation for buyers and sellers alike. In some cases, their removal may even result in a costly dispute. I Here we examine the thorny topic of fixtures and fittings and how your conveyancer will stop them spoiling your next home move. What are fixtures and fittings? Generally, fixtures are physically attached to the property and form part of it. In contrast, fittings…

Options for structuring the ownership of a residential property

Low interest rates combined with high demand for rental properties and a boom in self-catering holidays have fueled growth in property investment. Flexible finance options also make it easier to pool resources to invest in property or to buy a second home with friends or relatives. ‘When buying a residential property with others, there are a number of options for how you structure the ownership,’ Holly Stevens, Head of Residential Property with Ware & Kay in York explains. ‘To decide on the best route, you will need to consider the particular circumstances of each person involved, the property itself and the proposed use. Speak to your solicitor first to discuss the best way to structure your ownership as this can have important ramifications later.’ Consider the risks Buying a property is a major financial commitment and…

Home improvements, plan for your next move

The pandemic has seen record numbers of us undertaking DIY projects or getting tradesmen in to improve our homes. Our enthusiasm shows no sign of abating either, with the waiting list for builders stretching into next year. Ware & Kay agrees this trend is likely to continue. Here we look at some of the issues, and how to ensure your home improvements do not cause problems when you later put your home on the market. Planning permission, do you need it?  Not all alterations require planning permission. Generally, you will only need it if your proposed works constitute development. This has a special meaning under planning rules. It includes structural alterations and the sort of work a builder would ordinarily do. Non-structural work to the interior, like repainting the walls or replacing window frames, does not…