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The number of years left on a lease is of huge importance, both to buyers and flat owners, and if you leave it too late you could find yourself with a home that sellers and mortgage lenders avoid like the plague. If you own a leasehold property you have the right to live in that property for a set number of years, but it is the freeholder who usually owns the ground beneath the flat and the building around it. When flats are first built leases are typically for 99 or 125 years but they are not automatically renewed, so in theory, after this time the ownership reverts back to the freeholder. Lower house prices are usually helpful if you're looking to extend a lease as the less your property is worth, the cheaper the lease. But getting in early is crucial as the cost rises the longer you leave it. While this may only account for a few extra hundred pounds every year at first, once the lease falls below 80 years, the cost starts to rise disproportionately because something called ‘marriage value’ takes effect and it could be closer £1,000 extra per year. Buyers become very aware of the increased costs associated with undertaking a lease extension for a flat with less than 80 years remaining. For example, the premium on a flat worth in the region of £300,000 with an 82-year lease would typically be around £6,000, whereas the same flat with a 79-year lease would be around £10,400. The second point is the issue of mortgage finance: lenders are really clamping down when it comes to properties with short leases. You may find that their lending criteria are stricter and that they alter interest rates depending on how many years are left on the lease. They may even refuse to lend completely, so if you wanted to sell, your only options would be to find a cash buyer, or hope for the best at auction. The importance of protecting your leasehold interest is so great that it is even worth borrowing more on your mortgage to pay for it if you do not have the spare cash available. Most lenders are happy to give you a further advance for this because they see it as enhancing the security of their loan. However, if you already have a high loan-to-value mortgage, you may not be able to borrow the full amount of the cost of extending your lease. The method for calculating leasehold extension premiums is complicated and influenced by a number of disputable factors, making the process seem more of an art than a science. These factors include local property prices and predictions of future investment returns, which are used to calculate the sum you would have to give the freeholder to compensate for his not receiving the property back for several more decades. You normally have to pay your freeholder's legal costs, your own legal costs and surveyors fees. The process of lease extension can take a few months, so it is also worth starting early so that it can be concluded well before you want to sell or re-mortgage a flat. An alternative is to take over the freehold so that you are at liberty to grant leases lasting for 999 years at no extra premium. Over the years’ new laws have made it progressively easier for leaseholders to own a share of the freehold. There may not be a huge difference between the cost of extending a lease and buying a share of the freehold, so it is usually preferable. Buying the freehold, or a share in it, means you will no longer have to pay ground rent and service charges. You also have greater control over the building's management, a big plus when the managing agents are not delivering an effective service. It should also increase the value of your home and make it more attractive to buyers. Doing nothing may feel like the attractive option today, but grasping the nettle and tackling your short lease problem could help protect your biggest asset from disappearing into thin air. Gibson Young Solicitors have a vast experience in advising on all areas of leases and lease extensions. We are friendly and approachable and our advice is clear and straightforward. If you would like to speak to our expert Conveyancing team about your lease, please get in touch by calling 020 7924 2919 or e-mail reception@gibsonyoungsolicitors.com . All initial enquiries are completely free of charge and without any obligation.
A Prenuptial or Postnuptial Agreement is like health insurance in many ways. You don’t plan on ever having to use it, some people go through their whole lives without ever having any need for it but if you don’t have it, and unfortunately do require it, you may end up paying a lot more.
Get sound legal advice from Gibson Young Solicitors in and around Putney, Clapham and the surrounding areas - Divorce is never simple, but it is a lot easier with a reliable team by your side.
Gibson Young strive to make family law more straightforward to comprehend and recognise that each case is unique, requiring tailored support and careful handling.
When families have stepchildren, issues of inheritance can become complicated and it is important to put a Will in place that accurately deals with the situation to avoid disputes. When families have both birth children and stepchildren, there is always a risk that someone could be left out if inheritance matters are not carefully considered. If someone dies without a Will, then depending on the circumstances, children or stepchildren could be disinherited. Providing for your children after your death If you wish to adequately provide for your children after your death, it is essential that you put a Will in place, particularly if you have remarried. In the event that you do not have a Will in place when you die, the bulk of your estate will pass under the Rules of Intestacy to your spouse. Even if you have written a Will, your children could still inherit nothing if you leave everything to your spouse, by virtue of what is known as ‘the sideways disinheritance trap.’ Understanding the sideways disinheritance trap Where a couple have left all of their estate to each other and one of them dies, there is a risk that their children may ultimately miss out on inheriting anything. If the surviving partner remarries, then any existing Will is automatically invalid. If the surviving partner dies without making a new Will, then most of their estate will pass to their new spouse, along with anything that they hold jointly together such as a property owned as joint tenants and any shared bank accounts. If the new spouse also dies without making a Will, the whole of the estate will be passed onto their children or other blood relatives, leaving the children of the original couple with nothing. The new spouse also has the option to make a new Will leaving the money where they wish, which could again exclude the first couple’s children. There is also a risk that the money will be spent, for instance, in a bad investment or in paying for care home fees. Fortunately, there is a way to deal with this that ensures that children will not be excluded. Leaving a life interest trust in your Will By leaving a life interest in your property and assets to your spouse, you can ensure that they can continue to live in any shared home for the rest of their life, but when they die, your interest will pass to those you have named in your Will, which would commonly be your own children from your first relationship. Providing for your stepchildren after your death If you wish to provide for stepchildren after your death, it is essential that you make a Will. If you die without making a Will, then your estate will be distributed to your family members in accordance with the Rules of Intestacy. The Rules do not make any provision for stepchildren. Others in a close relationship with you could also miss out, such as a cohabiting partner, as only blood relatives are included in the list of those who will inherit. In the event that you name your stepchildren in your Will, you should consider the position of any birth children you may have. If you do not leave them anything, then there is a chance that they could contest the Will under the Inheritance (Provision for Family and Dependants) Act 1975. Dealing with issues of inheritance can be complicated, especially when a stepfamily is involved. It is advisable to seek expert legal advice to ensure that the arrangements you make are legally sound and well thought-out and that they have the best chance of going unchallenged. Where a Will has been professionally prepared, it can minimise the risk of a disagreement arising after your death. Discussing matters with your family where possible can also help to prepare those involved and ensure that they understand what your wishes are and why you have made them. At Gibson Young we offer both legal expertise and outstanding client service. We are friendly and approachable and our advice is clear and straightforward. If you would like to speak to our expert Wills and probate team about having a bespoke Will drawn up, please get in touch by calling 020 7924 2919 or e-mail reception@gibsonyoungsolicitors.com . All initial enquiries are completely free of charge and without any obligation.
Why are Lasting Powers of Attorney so important?
18 December 2024
A Lasting Power of Attorney (LPA) is a legal document which enables you to decide who you trust to make decisions about your finances, property or healthcare, in the event you are no longer able to do so and appoint them as your Attorney.
Age-related issues such as dementia are often the reason that people are no longer able to make such decisions. However, an event such as an accident or illness could also have this impact.
Without an LPA (or a valid Enduring Power of Attorney, which was the precursor to LPAs). Those closest to you could be faced with an application to the Court of Protection to give them authority to act on your behalf with regards to finances and, less commonly, in relation to health and welfare, as a court appointed Deputy.
Th application process for being appointed as Deputy can be drawn out and the costs are higher. Most importantly, however, the choice of who to appoint to act in your best interests’ rests with the Court based on the evidence provided to it, not with you.
A Property and Financial Affairs LPA
covers decisions your Attorney may need to make concerning your property and finances. This includes the more mundane matters such as managing your bank account, but also includes significant decisions, for example selling you your home and investing the proceeds for your use and benefit, in the event you need care in a residential setting.
Under a Health and Welfare LPA, unless you add restrictions, your Attorney will have authority to make all personal welfare decision on your behalf, save for:
• Life sustaining treatment, unless you have expressly authorised this: and
• Where you subsequently make an Advance Decision (Living Will) to refuse treatment.
These decisions can only be made on your behalf if you lack the capacity to make these decisions yourself.
A specialist solicitor will be able to help you with structuring and drafting your LPAs, and will manage the process of registering the LPAs with the Office of the Public Guardian. As the specialist solicitors at Gibson Young regularly assist with the ongoing running of LPAs, we understand how LPAs should be drafted to ensure the smoothest running of them if they need to be implemented. For example, there are several powers which are very useful for Attorneys to have when operating an LPA, but which are not included by the general law. We can advise on including these in your LPAs. We are friendly and approachable and our advice is clear and straightforward.
If you would like to speak to our Private Client team about your LPA, please get in touch by calling 020 7924 2919
or e-mail reception@gibsonyoungsolicitors.com. All initial enquiries are completely free of charge and without any obligation.
The number of years left on a lease is of huge importance, both to buyers and flat owners, and if you leave it too late you could find yourself with a home that sellers and mortgage lenders avoid like the plague. If you own a leasehold property you have the right to live in that property for a set number of years, but it is the freeholder who usually owns the ground beneath the flat and the building around it. When flats are first built leases are typically for 99 or 125 years but they are not automatically renewed, so in theory, after this time the ownership reverts back to the freeholder. Lower house prices are usually helpful if you're looking to extend a lease as the less your property is worth, the cheaper the lease. But getting in early is crucial as the cost rises the longer you leave it. While this may only account for a few extra hundred pounds every year at first, once the lease falls below 80 years, the cost starts to rise disproportionately because something called ‘marriage value’ takes effect and it could be closer £1,000 extra per year. Buyers become very aware of the increased costs associated with undertaking a lease extension for a flat with less than 80 years remaining. For example, the premium on a flat worth in the region of £300,000 with an 82-year lease would typically be around £6,000, whereas the same flat with a 79-year lease would be around £10,400. The second point is the issue of mortgage finance: lenders are really clamping down when it comes to properties with short leases. You may find that their lending criteria are stricter and that they alter interest rates depending on how many years are left on the lease. They may even refuse to lend completely, so if you wanted to sell, your only options would be to find a cash buyer, or hope for the best at auction. The importance of protecting your leasehold interest is so great that it is even worth borrowing more on your mortgage to pay for it if you do not have the spare cash available. Most lenders are happy to give you a further advance for this because they see it as enhancing the security of their loan. However, if you already have a high loan-to-value mortgage, you may not be able to borrow the full amount of the cost of extending your lease. The method for calculating leasehold extension premiums is complicated and influenced by a number of disputable factors, making the process seem more of an art than a science. These factors include local property prices and predictions of future investment returns, which are used to calculate the sum you would have to give the freeholder to compensate for his not receiving the property back for several more decades. You normally have to pay your freeholder's legal costs, your own legal costs and surveyors fees. The process of lease extension can take a few months, so it is also worth starting early so that it can be concluded well before you want to sell or re-mortgage a flat. An alternative is to take over the freehold so that you are at liberty to grant leases lasting for 999 years at no extra premium. Over the years’ new laws have made it progressively easier for leaseholders to own a share of the freehold. There may not be a huge difference between the cost of extending a lease and buying a share of the freehold, so it is usually preferable. Buying the freehold, or a share in it, means you will no longer have to pay ground rent and service charges. You also have greater control over the building's management, a big plus when the managing agents are not delivering an effective service. It should also increase the value of your home and make it more attractive to buyers. Doing nothing may feel like the attractive option today, but grasping the nettle and tackling your short lease problem could help protect your biggest asset from disappearing into thin air. Gibson Young Solicitors have a vast experience in advising on all areas of leases and lease extensions. We are friendly and approachable and our advice is clear and straightforward. If you would like to speak to our expert Conveyancing team about your lease, please get in touch by calling 020 7924 2919 or e-mail reception@gibsonyoungsolicitors.com . All initial enquiries are completely free of charge and without any obligation.
A Prenuptial or Postnuptial Agreement is like health insurance in many ways. You don’t plan on ever having to use it, some people go through their whole lives without ever having any need for it but if you don’t have it, and unfortunately do require it, you may end up paying a lot more.
Get sound legal advice from Gibson Young Solicitors in and around Putney, Clapham and the surrounding areas - Divorce is never simple, but it is a lot easier with a reliable team by your side.
Gibson Young strive to make family law more straightforward to comprehend and recognise that each case is unique, requiring tailored support and careful handling.
When families have stepchildren, issues of inheritance can become complicated and it is important to put a Will in place that accurately deals with the situation to avoid disputes. When families have both birth children and stepchildren, there is always a risk that someone could be left out if inheritance matters are not carefully considered. If someone dies without a Will, then depending on the circumstances, children or stepchildren could be disinherited. Providing for your children after your death If you wish to adequately provide for your children after your death, it is essential that you put a Will in place, particularly if you have remarried. In the event that you do not have a Will in place when you die, the bulk of your estate will pass under the Rules of Intestacy to your spouse. Even if you have written a Will, your children could still inherit nothing if you leave everything to your spouse, by virtue of what is known as ‘the sideways disinheritance trap.’ Understanding the sideways disinheritance trap Where a couple have left all of their estate to each other and one of them dies, there is a risk that their children may ultimately miss out on inheriting anything. If the surviving partner remarries, then any existing Will is automatically invalid. If the surviving partner dies without making a new Will, then most of their estate will pass to their new spouse, along with anything that they hold jointly together such as a property owned as joint tenants and any shared bank accounts. If the new spouse also dies without making a Will, the whole of the estate will be passed onto their children or other blood relatives, leaving the children of the original couple with nothing. The new spouse also has the option to make a new Will leaving the money where they wish, which could again exclude the first couple’s children. There is also a risk that the money will be spent, for instance, in a bad investment or in paying for care home fees. Fortunately, there is a way to deal with this that ensures that children will not be excluded. Leaving a life interest trust in your Will By leaving a life interest in your property and assets to your spouse, you can ensure that they can continue to live in any shared home for the rest of their life, but when they die, your interest will pass to those you have named in your Will, which would commonly be your own children from your first relationship. Providing for your stepchildren after your death If you wish to provide for stepchildren after your death, it is essential that you make a Will. If you die without making a Will, then your estate will be distributed to your family members in accordance with the Rules of Intestacy. The Rules do not make any provision for stepchildren. Others in a close relationship with you could also miss out, such as a cohabiting partner, as only blood relatives are included in the list of those who will inherit. In the event that you name your stepchildren in your Will, you should consider the position of any birth children you may have. If you do not leave them anything, then there is a chance that they could contest the Will under the Inheritance (Provision for Family and Dependants) Act 1975. Dealing with issues of inheritance can be complicated, especially when a stepfamily is involved. It is advisable to seek expert legal advice to ensure that the arrangements you make are legally sound and well thought-out and that they have the best chance of going unchallenged. Where a Will has been professionally prepared, it can minimise the risk of a disagreement arising after your death. Discussing matters with your family where possible can also help to prepare those involved and ensure that they understand what your wishes are and why you have made them. At Gibson Young we offer both legal expertise and outstanding client service. We are friendly and approachable and our advice is clear and straightforward. If you would like to speak to our expert Wills and probate team about having a bespoke Will drawn up, please get in touch by calling 020 7924 2919 or e-mail reception@gibsonyoungsolicitors.com . All initial enquiries are completely free of charge and without any obligation.
Get sound legal advice from Gibson Young Solicitors.
Putney, Fulham, Chiswick, Clapham, Clapham Junction, Wimbledon, Richmond and the surrounding areas in South London. To book an appointment, call 020 7924 2919
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