|
BUYING
When you are buying, a number of matters are likely to require
your action or consideration (and our advice).
SURVEY
Once you have made the decision in principle to buy, it is
usually advisable to commission an independent structural
survey of the property. This is usually done by your own surveyor
who will produce an independent report. Alternatively the
mortgagee (eg. bank or building society) may on request be
willing to make available its own surveyor's report or, at
least, a mortgage valuation. In this case you must make it
clear if you want the mortgagee's surveyor to make a full
structural survey report rather than just a simple mortgage
survey and valuation.
OWNERSHIP
Who is to be the legal owner of the property? Is it to be
in your sole name, your spouse's name, joint names, owned
by trustees or a company? Your decision may depend on any
number of circumstances. We can advise on what is likely to
suit your best interests. For example, if you wish to own
the property through an offshore company or trust, tax and
other consequences must be considered. Apart from being able
to advise you on the formation of such a company, we can organise
the additional documentation which is likely to be required
including the company's Memorandum and Articles of Incorporation,
a notarised Power of Attorney and board resolutions.
TAX IMPLICATIONS
For an overseas buyer, the purchase of a property in the
UK could give rise to significant tax consequences which might
affect your UK and foreign status. Whether an overseas or
UK resident, any property purchase should be considered in
the light of UK taxes currently in force, including inheritance
tax, capital gains tax, income tax and stamp duty. We can
advise on the effect of these various taxes, on structuring
the acquisition in the most tax efficient manner, and on the
benefits of reviewing your will in the light of your purchase.
OCCUPATION
Do you wish to buy for owner occupation or as an investment?
Very different considerations apply. If a property is not
to be owner-occupied, then the Rent and Housing Acts must
be taken into account. In particular, you must be aware of
the problems of ensuring that you can still obtain vacant
possession at the end of a lease or licence.
FINANCING
If you need a loan to buy the property, establish at the
outset approximately how much your bank or building society
is prepared to lend. Also consider the best type of loan,
methods of repayment and any tax consequences.
On exchange of contracts a deposit (normally 10%) is payable
to the seller's solicitor. Make sure that on the date scheduled
for exchange, this money is readily available. Do not exchange
contracts until you are totally satisfied that the balance
will be available on the agreed completion date from one source
or another, otherwise you could lose the deposit.
SEARCHES
We will organise local searches unless we can buy them from
the seller's solicitors. Here, speed is essential, for some
local authorities continue to be slow in providing answers.
We can arrange for personal searches to be undertaken by a
specialist search company (but these are more costly and their
accuracy is not guaranteed by the local authority concerned).
CHAIN TRANSACTIONS
If you are buying but also have a property to sell, the date
when you exchange contracts and complete the various transactions
should preferably be arranged to coincide. Synchronisation
may be difficult to guarantee if a chain transaction is involved.
It is in this area that delays can often happen. The alternative
of a bridging loan can be costly.
LEASEHOLDS
When buying leaseholds you may have to provide references
from your bankers, accountants or solicitors to vouch to your
prospective landlord for your acceptability as a tenant. If
you use a company, you may have to guarantee its liabilities
under the lease. Recent changes in the law may allow you to
force the sale to you subsequently of the freehold interest
in the building for an additional premium. In the case of
a flat in a block, such a freehold purchase would have to
be pursued in conjunction with the other tenants in the building.
We can advise you on this complicated area of law.
|
