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Apr 01
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LPA Solicitor

What is the difference between lasting and enduring power of attorney?

By | Uncategorized

When it comes to planning for the future, one of the key legal tools that can give you peace of mind is a Power of Attorney (PoA). In the UK, there are two primary types of PoA that can be set up for individuals: Lasting Power of Attorney (LPA) and Enduring Power of Attorney (EPA). While they share a similar purpose (appointing someone to manage your affairs) they differ significantly in terms of legal implications, when they apply, and how they are set up.

We’ll break down the key differences between a Lasting Power of Attorney (LPA) and an Enduring Power of Attorney (EPA), as well as common questions people have about these important legal tools. Whether you’re concerned about health and welfare or wondering about costs and what happens after death, Bromfield Legal has got you covered.

What Is a Lasting Power of Attorney (LPA)?

A Lasting Power of Attorney (LPA) is a legal document that allows you to appoint someone (known as your “attorney”) to make decisions on your behalf in the event that you can no longer make those decisions yourself. There are two main types of LPA:

  1. Health and Welfare LPA: This allows your attorney to make decisions about your medical treatment, care, and general well-being if you become incapable of making these decisions yourself. The decisions can cover anything from where you live to life-sustaining treatment.

  2. Property and Financial Affairs LPA: This grants your attorney the authority to manage your financial matters, including paying bills, managing bank accounts, or selling property on your behalf.

The key feature of an LPA is that it only takes effect once it has been registered with the Office of the Public Guardian (OPG), and the individual (you, the donor) must have the mental capacity to make the decision to create the LPA in the first place.

What Is an Enduring Power of Attorney (EPA)?

An Enduring Power of Attorney (EPA) was the predecessor to the LPA, and while it still remains valid for those created before October 2007, it has been largely replaced by LPAs for new cases.

An EPA is specifically concerned with giving someone the authority to make decisions about your property and financial affairs. It does not cover health and welfare decisions. The key difference between an EPA and an LPA is that an EPA does not require registration with the OPG while the donor is still capable of making decisions. It only needs to be registered once the donor loses mental capacity.

Key Differences Between LPA and EPA

  1. Scope of Authority:
  • LPA: Covers both health and welfare decisions as well as property and financial matters.
  • EPA: Only covers property and financial affairs.

  1. Creation and Registration:
  • LPA: Must be registered with the OPG before it can be used, and the donor must have mental capacity when setting it up.
  • EPA: Does not need to be registered until the donor loses mental capacity, but can only be used for financial matters.

  1. Legal Standing:
  • LPA: Has broader legal safeguards and is more flexible, especially since it can be used to manage both personal care and financial decisions.
  • EPA: Limited to financial matters and cannot be used for health and welfare decisions.

  1. Post-Death Considerations: An important distinction between both documents is that neither LPA nor EPA is valid after death. However, an attorney’s authority under an LPA or EPA ends immediately upon death, and the appointment of an attorney ceases. At this point, your estate would be managed according to your will or the laws of intestacy if there is no will in place.

Setting Up an LPA or EPA: How Does it Work?

Setting Up an LPA: Setting up an LPA requires filling out a form and registering it with the Office of the Public Guardian. Both the donor and the attorney must be in agreement, and a certificate provider (usually a professional such as a solicitor or doctor) is required to verify that the donor understands the LPA and is not being coerced. The registration process can take up to 10 weeks, so it’s advisable to plan ahead.

Setting Up an EPA: For those with an existing EPA, it is important to ensure that it is registered with the Office of the Public Guardian if the donor becomes mentally incapacitated. The process for registering an EPA is simpler than for an LPA, but it is only applicable to those established before 2007.

Costs of Setting Up an LPA

The cost of setting up a Lasting Power of Attorney can vary. On average, the registration fee for an LPA is £82 per document (i.e., if you set up both a health and welfare LPA and a property and financial affairs LPA, the cost could be £164). Additional costs may be involved if you seek legal advice or assistance in drafting the LPA. You can give us a call to find out how we can help assist you and provide a quote.

While the costs for an LPA can seem significant, the potential costs of managing your affairs if you lose mental capacity without an LPA in place can be far higher, both financially and emotionally. As such, it is worth investing in proper legal advice.

FAQ’s

  1. How much does a Lasting Power of Attorney cost? The cost of an LPA varies depending on whether you use legal services or create one independently. The official registration fee is £82 per document, with additional legal fees if you choose to have a solicitor assist with the process. We’d be happy to provide a quote for you.
  2. What happens after death with an LPA? An LPA becomes invalid upon your death. At this point, the appointed attorney can no longer act on your behalf. The estate is then managed in accordance with the instructions in your will.
  3. What happens after death with an EPA? Like an LPA, an EPA becomes invalid once the donor passes away. The attorney’s authority ends, and the estate is handled as per the deceased’s will or the rules of intestacy.
  4. Health and Welfare LPAs – How do they work? A Health and Welfare LPA gives the appointed attorney the power to make decisions regarding the donor’s medical care, treatment, and living arrangements. It can only be used if the donor has lost mental capacity. This type of LPA is particularly important for ensuring that healthcare decisions align with your wishes if you can no longer express them yourself.

 

In summary, while both a Lasting Power of Attorney (LPA) and an Enduring Power of Attorney (EPA) are important tools for managing decisions when you are no longer able to do so, they differ significantly in scope and application. If you are looking to secure both health and welfare as well as financial decisions, an LPA is the most appropriate option. However, if you are simply concerned with managing your financial affairs, an EPA may still be a valid option, provided it was created before 2007.

Whether you are setting up an LPA or an EPA, it’s always advisable to seek legal advice to ensure your documents are valid, and your wishes are accurately represented. At Bromfield Legal, we’re always on hand to help should you need a solicitor. Contact our friendly teams at both Nuneaton and Warwick.

 

Jun 28
0
Prenuptial,Agreement,And,Wedding,Ring,On,Table.,Premarital,Paperwork,Process

The Pros and Cons of a Prenuptial Agreement 

By | Divorce and Separation

A prenuptial agreement, commonly referred to as a ‘prenup’, may be a term that we have heard of, but are not necessarily familiar with. There is a lot of potential awkwardness surrounding prenups, particularly as they have garnered a notorious association with divorce, though this is often misconceived. 

However, a prenuptial agreement should not be overlooked—especially as it can be used as a tool for open communication and financial clarity in any soon-to-be marital relationship. If you or your partner are undecided about whether a prenup is necessary, we have compiled a list of the pros and cons of a prenuptial agreement to help you make an informed decision. 

Keep reading to learn more about the benefits (and drawbacks) of a prenup.   

What is a Prenup?

To put it simply, a prenuptial agreement is a contract between the engaged couple that outlines their individual and joint assets and debts, including their rights, responsibilities, and how these assets will be divided should the couple decide to divorce. This is signed before they are legally married.

The Pros of a Prenuptial Agreement

If you’re wondering whether a prenuptial agreement is worth the hassle, here are several advantages to prenups that you may want to consider…

Financial Security

There are a lot of misconceptions about prenups, namely that they are only required for couples with a significant amount of assets and wealth—this is not true. Any couple can opt for a prenuptial agreement, and in modern society, a prenuptial agreement is a must for couples who wish to be financially secure. Prenups can protect both premarital assets and future inheritances—keeping these separate from marital assets. 

Reduced Stress

Should a relationship, unfortunately, end in divorce, a prenuptial agreement can help reduce the stress associated with potential legal disputes regarding assets. Divorce is a stress-inducing situation in itself, but having a prenup already laid out means that you can avoid possible future legal battles. 

Clarity & Transparency

A prenuptial agreement provides couples with the opportunity to better understand each other’s financial situation and expectations, fostering open communication and transparency. With a prenup, couples can clarify various financial aspects of their marriage, including designating assets as separate or joint. Clear communication is key for any marriage—and divorce. 

Business Ownership Considerations

If you or your partner owns a business, a prenuptial agreement can safeguard business interests and assets in the event of a divorce, preventing them from being divided. 

The Cons of a Prenuptial Agreement

On the other hand, there are also several drawbacks to a prenuptial agreement that you should think about…

Emotional Perception 

As previously mentioned, a prenup often has a bad reputation, namely as being a sign of distrust in the relationship. One report has shown that 50% of married couples without a prenup say that they do not have one because they trust their partner. Many believe that a prenup is a preparation for the end of the relationship. 

Cost

A well-drafted prenuptial agreement will incur legal fees, which can be costly. You can expect to spend close to an average of £1,000 to £2,000 just to enforce the prenup—which not many couples are prepared for. 

Complexity

Prenups involve a range of complex legal considerations. A prenuptial agreement will need to be enforceable, but also compliant with UK laws and legislation. With all of its intricacies, you must consult a solicitor for guidance when it comes to drafting a well-drafted prenuptial agreement. 

Seeking Professional Legal Advice for a Prenuptial Agreement

Whether you or your partner is likely to acquire more in a divorce, or you simply wish to clarify marital assets, obtaining a prenuptial agreement can be beneficial in a number of different ways. For modern couples, the benefits of a prenup far outweigh the drawbacks. 

When looking to obtain a prenup, it’s important that you seek professional legal advice from a solicitor, such as ourselves at Bromfield Legal, to identify whether a prenuptial agreement is right for you and your partner. 

Our specialists can provide expert legal advice and assist with drafting prenuptial agreements, making sure that they are tailored to your specific needs. Contact us today to speak to one of our experts—we are always more than happy to assist with any enquiries that you may have. 

Jun 10
0
family solicitor guiding couple in an office space

Recognising When to Seek Advice from a Family Solicitor

By | Children, Divorce and Separation, Property Law

In the intricate tapestry of family life, certain situations arise where the guidance and expertise of a family solicitor are not just helpful but essential. At Bromfield Legal, with offices conveniently located in Nuneaton and Warwick, we specialise in providing comprehensive legal support that safeguards your interests and ensures peace of mind during challenging times. Here, we explore common scenarios where engaging with a family solicitor can make a significant difference.

 

Divorce and Separation

Divorce and separation can be emotionally taxing experiences, marked by a complex web of decisions about the future. Whether you’re considering initiating a divorce, responding to a divorce petition, or seeking a legal separation, a solicitor can guide you through the maze of legal requirements. The process often involves negotiating terms regarding alimony, child support, and the division of assets, which can be daunting without proper legal advice. Additionally, understanding your rights and obligations can help you make informed decisions that align with your long-term interests.

 

Property and Finance

When a relationship ends, the division of property and finances becomes a crucial issue. Family solicitors are skilled in navigating the legal landscape to ensure fair settlements. This might involve the valuation of assets, negotiations for financial settlements, or court representations. Especially if the property is jointly owned or there are significant financial entanglements, legal expertise is essential to resolve these matters efficiently and equitably.

 

Children

Issues concerning children are often the most sensitive aspect of family law. Whether it’s custody arrangements, visitation rights, or parental responsibilities, a family solicitor can help ensure that the children’s best interests are at the forefront of any agreements. Legal advice is vital to resolve disputes amicably and to formulate parenting plans that work long-term, thereby minimising the emotional impact on children.

 

Domestic Violence

In situations of domestic violence, immediate and effective legal intervention is crucial. Family solicitors can provide urgent assistance, guide you through the options for protection, and liaise with law enforcement if necessary. This can include obtaining restraining orders and ensuring that any legal actions prioritise your safety and well-being.

 

Prenuptial Agreements

Although often overlooked, prenuptial agreements are an important tool for protecting personal assets before entering a marriage. A family solicitor can help draft a prenuptial agreement that is fair, legally binding, and reflective of both parties’ interests. This proactive step can prevent potential disputes in the future, should the marriage not work out.

 

When is a Good Time to Get in Touch with a Family Solicitor?

The best time to consult a family solicitor is before you think you need one. Early advice can prevent problems from escalating and help you understand your legal position from the outset. Whether you are contemplating major life decisions such as marriage or divorce, or if you face immediate issues like domestic violence or custody concerns, reaching out to a solicitor early on can provide strategic advantages and peace of mind.

 

Finding Family Solicitors Near Me

For families in and around Nuneaton and Warwick, Bromfield Legal is your go-to firm for all family law needs. Our team of compassionate and knowledgeable solicitors is committed to supporting you through your family law challenges with dignity and respect.

Navigating family law issues can be daunting, but you don’t have to do it alone. Bromfield Legal stands ready to assist you with expert advice tailored to your unique situation. Contact us today to find out how we can help you achieve the best possible outcome for your family law needs.

Mar 20
0
custody family solicitor in meeting with couple

When to Consult A Child Custody Solicitor

By | Children

In the event of a separation or divorce from your partner, an important consideration is determining who will have custody over your children. This is never an easy decision to have to make and it can be a very tricky time. Custody matters can result in emotional and logistical challenges for all parties involved, but by consulting a custody solicitor at the right time, you can protect the interests of your children and both adults involved. Here, we take a look at when to consult a solicitor for custody matters. 

Understanding custody matters

If you have never had to navigate custody law before, you could initially be confused by how it works. However, you can quickly get to grips with not only technical terms attached to this legislation but also how it can help you to resolve your custody dilemma.

Definitions and types

Physical custody refers to the child’s physical day-to-day living environment. The child may permanently live with one parent but still receive visits from the other parent.

Meanwhile, legal custody concerns the child’s upbringing — including matters relating to education and healthcare.

With sole custody, one parent is given primary responsibility for caring for and controlling the child. Conversely, joint custody sees the two parents making collective decisions about crucial aspects of the child’s life.

General legal framework

If you are unable to reach a custody agreement, the court can intervene, making a ruling in line with the basic legal principle that the child’s welfare is paramount.

Key situations necessitating a solicitor

How can you tell when you actually need a custody solicitor? Here are several scenarios where this professional’s input can play a major part in preventing legal issues from arising.

Initial custody agreement

Even if the divorce is amicable, it is wise for you to ask a solicitor to help you draft an initial custody agreement so that you can ensure it is comprehensive and legally watertight.

Changes in circumstances

There may come a time when substantial life changes take place. For instance, should you, being the sole custodial parent of your child, experience major shifts like moving to a new place or altering your career path, these changes could sometimes negatively impact your child.

Dispute resolution

What if the other parent disputes existing custody agreements or visitation rights? If you fail to resolve this disagreement through direct negotiation with the other party, it would be crucial to seek legal counsel in the form of mediation or court intervention. 

Enforcement issues

If one parent violates the custody agreement, the other parent can ask the court for legal recourse. The infringing parent could be warned and/or fined, or even held in contempt of court.

Complex or unusual cases

Some custody obstacles are much easier to overcome than others. For example, one partner could move overseas shortly after the separation, or be unwilling to compromise on specific details of the proposed custody arrangements. In such scenarios, specialised legal advice would be imperative. 

Benefits of consulting a solicitor

There might be situations where you don’t strictly ‘need’ a solicitor’s thoughts. However, by heeding them nonetheless, you can tap into the following benefits — and take a lot of pain out of what could have otherwise proved an arduous and cumbersome process.

Expert guidance

You can trust a custody solicitor to take your specific circumstances into account before providing you with expert advice tailored to suit, safeguarding your rights and interests as a result.

Mediation and negotiation

If you and the other parent are struggling to agree on custody arrangements, we encourage you to pursue such dispute resolution methods as mediation before involving a court in custody decisions.

As part of the mediation process, a solicitor can act as a neutral third party facilitating constructive discussion between the parents as they endeavour to keep the child’s best interests close to heart.

Legal representation

Despite your best efforts, custody matters could still escalate to litigation. If this does happen, you must be represented in court by a legal professional with specialist expertise in family law. 

A solicitor will be able to argue your case to the court — and help you secure the best outcome for your child. 

Preparing to consult a solicitor

So, you have decided to get in touch with a solicitor. By initially meeting up with them in person, you will have the time to speak at length about your situation. However, it’s important to prepare for this consultation carefully so that you can make the most of it. 

What to bring

By phoning our team on 024 7638 2343, you can learn how to arrange an initial consultation with a custody solicitor. 

In preparation for this meeting, remember to gather evidence of your income, documentation of any existing custody agreements, and details of communication with the other parent.

Questions to ask

At the consultation, you can deepen your understanding of the legal process by asking us about the outcomes it could bring and the costs that would be involved. We are committed to putting your mind at rest.

You are also welcome to ask us questions in advance by emailing enquiries@bromfieldlegal.co.uk.

Mar 01
0
couple-sat-at-desk-using-solicitor-to-write-and-sign-an-amicable-separation-agreement-paper

How a Solicitor Can Facilitate Amicable Separations 

By | Divorce and Separation

Have you and your spouse or civil partner decided to part ways? You could be in an awkward situation if the two of you have yet to decide whether to end the marriage or civil partnership formally or if it has not lasted long enough to naturally come to a close.

In the meantime, you could still sign what is known as a separation agreement. A separation agreement is where you free yourself from the obligation to live with your partner while negotiating future financial arrangements and outlining plans for the care of any children from the union moving forward.

A solicitor can draw up a separation agreement for you —which specifies the details of the separation and deal with any joint assets, arrangements for children and any other pertinent matters. At Bromfield Legal, our team of experts in Nuneaton and Warwick work with you personally to craft an agreement tailored to your unique circumstances, ensuring it aligns perfectly with your needs and objectives.

 

Understanding Legal Rights and Obligations

Separation can be an incredibly stressful time, particularly if it comes as a surprise to one partner. However, both parties will naturally be keen to have an amicable split — and getting in touch with a solicitor can help them achieve this.

By consulting with a legal advisor, you can gain a clearer understanding of your legal standing with your partner and how to make the separation agreement as watertight as possible. This process can provide you with confidence and certainty about the future.

 

Navigating Financial Arrangements 

If your household has historically relied on one partner for the majority of its income, it’s natural to be concerned about how you’ll manage financially in the future.

Fortunately, a solicitor can help to give you a solid financial standing. You can get reliable legal advice on what you will be entitled to financially and, together with your partner, come to agreements about who will assume responsibility for specific financial obligations, including debts, loans, and overdrafts.

 

Child Arrangements and Support

Certainly, the financial provisions in a separation agreement can often hinge on decisions regarding the care of any children from the ending relationship.

Key to ensuring an amicable split is ensuring that you and your partner both put the children’s welfare first as the law does already.

To achieve this, it’s important to encourage your children to maintain relationships with both parents as you navigate decisions about their living arrangements and financial support for their upbringing.

 

Drafting and Formalising Agreements 

We are thoroughly experienced in helping couples to achieve amicable separations. To ask our team to help you get the best possible result, just call our Nuneaton office on 024 7638 2343 or Warwick team on 01926 702 702. We offer same-day appointments at both locations, allowing you to quickly access and benefit from our legal expertise conveniently.

Oct 10
0

How Long Does Conveyancing Take?

By | Conveyancing

If you are planning to buy or sell property in the UK, you’ve likely come across the term “conveyancing.” But what exactly is conveyancing, and how long does it take? 

Whether you’re a first-time buyer, an experienced property investor, or simply curious about the process, understanding the timelines involved in conveyancing is essential. At Bromfield Legal, we are experts in the field of conveyancing, so we’ll walk you through the stages of conveyancing, factors that can cause delays, and tips to expedite the process. If you would like to speak to one of our solicitors, please contact the team in our Warwick or Nuneaton offices.

Conveyancing is the legal process of transferring property ownership from one party to another. It involves a series of stages, each with its own set of tasks and responsibilities. While the specific timeline can vary depending on various factors, here’s a general overview of the key stages:

The first step is to choose a solicitor or conveyancer to handle the legal aspects of the transaction. Bromfield Legal, a reputable solicitor company, can assist you in this crucial step.

The Stages of Conveyancing: A Roadmap

 

1) Pre-Contract Stage

The seller completes property information forms, including details about the property’s boundaries, utilities, and fixtures.

2) Drafting the Contract

The solicitor checks the property’s title to ensure it’s free from legal issues or disputes. Searches are also conducted to uncover any planning or environmental issues affecting the property. A search at the Land Registry confirms the seller’s ownership and checks for any registered charges or restrictions.

3) Pre-Contract Enquiries

The buyer’s solicitor raises queries with the seller’s solicitor, seeking clarification on any issues discovered during searches. The buyer may arrange a property survey to identify any structural issues.

4) Exchange of Contracts

Once all queries are resolved and both parties are satisfied, contracts are exchanged, and a completion date is set. The buyer typically pays a deposit at this stage.

5) Pre-Completion:

If a mortgage is required, the buyer finalises mortgage arrangements. Last-minute searches are conducted to ensure there are no new issues with the property or the seller.

6) Completion:

The buyer’s funds are transferred to the seller, and legal ownership of the property is transferred. The buyer receives the keys to the property and takes possession.

7) Post-Completion:

The buyer must pay Stamp Duty Land Tax (SDLT) if applicable. The solicitor registers the property transfer with the Land Registry, officially confirming the new ownership.

 

While conveyancing typically follows a structured timeline, several factors can lead to delays:

Chain Transactions – If your sale or purchase is part of a chain, where multiple properties are involved, delays in any link of the chain can affect the entire process.

Legal Issues – Complex legal issues, disputes, or unexpected title problems can prolong the conveyancing process.

Survey Results – If a property survey reveals significant issues or structural defects, negotiations may be required, leading to delays.

Search Delay – Delays can occur if local authority searches or Land Registry searches take longer than expected.

Mortgage Approval – If the buyer’s mortgage application faces delays or rejection, it can halt the process.

Communication – Poor communication between parties or solicitors can slow down the exchange of information and documentation.

 

Some delays may be unavoidable, there are steps you can take to expedite the conveyancing process:

Firstly, understand the key stages of conveyancing to have realistic expectations and make informed decisions. Ensure to choose a reputable solicitor like Bromfield Legal with experience in property transactions can help ensure a smoother process. Stay in regular communication with your solicitor to stay informed about the progress of your transaction. You should always respond promptly to any queries and requests from them to keep the process moving.

Ensure all required documentation, such as ID, proof of funds, and property information forms, are readily available and arrange a property survey early in the process to identify potential issues upfront.

The duration of conveyancing can totally depend on each person’s circumstances, but understanding the stages and why potential delays can occur can help you navigate the process more confidently. Bromfield Legal can help streamline the process and work towards a successful property transaction. So, whether you’re buying your dream home or selling an investment property, you’re now better equipped to answer the question, “How long does conveyancing take?”

Sep 12
0

How Long Does It Take for Solicitors to Complete a House Purchase in the UK?

By | Property Law

If you’re in the UK and planning to buy your first house or move into a new home, one of the most pressing questions you might have is, “How long does it take for solicitors to complete a house purchase?” The process of buying a house involves various legal steps, and understanding the timeline can help you plan your move effectively. A good rule of thumb is to expect the sale process to take 19 weeks from when you find the right home. At Bromfield Legal, we are experts in the field, we’ll break down the key stages of the house-buying process for you and provide insights into the timeframes involved. 

Our property solicitor team can deal with all the legal issues and documentation, so you don’t have to worry. Leave all the forms and legislation to us. We’ll make sure that every requirement is met so your purchase goes smoothly.

 

Finding the Right Property 

Before you even involve solicitors, you need to find the perfect property. This stage can vary greatly in duration, depending on your preferences, budget, and the state of the property market. 

Mortgage Approval 

Once you’ve found your dream home, the next step is securing a mortgage. This process typically takes between 4 to 6 weeks. During this time, you’ll work with your chosen lender, providing financial documents and undergoing credit checks. It’s important to have your mortgage offer in place before moving forward, as this will affect the timeline.

Appointing a Solicitor 

After securing your mortgage, you’ll need to appoint a solicitor or conveyancer to handle the legal aspects of the purchase. The time it takes to find and appoint a solicitor can vary, but it’s crucial to choose one who specialises in property law and has experience with residential transactions. Bromfield Legal, for example, is a reputable firm that can provide personal, expert guidance in this area.

Property Searches and Due Diligence 

Your solicitor will begin by conducting property searches and due diligence. This involves investigating the property’s title, checking for any outstanding issues, and ensuring that it’s fit for sale. 

Exchange of Contracts 

The exchange of contracts is a pivotal moment in the house-buying process. At this stage, both the buyer and seller commit to the transaction, and a legally binding agreement is formed. Delays can occur due to various factors, such as complex legal issues or a long property chain.

Completion 

Completion is the day you’ve been eagerly waiting for – when you officially take possession of your new home. It involves the transfer of funds, finalising legal documents, and ensuring that all outstanding matters are resolved.

Registration and Post-Completion 

After you’ve moved in, your solicitor will handle the post-completion tasks, including registering your ownership with the Land Registry. 

Stamp Duty and Other Costs (Variable)

Stamp Duty Land Tax (SDLT) is a significant cost associated with buying a property in the UK. The amount you pay depends on the purchase price and your circumstances, and it must be settled within 14 days of completion. Your solicitor will help you calculate and pay the correct amount.

Managing Expectations

It’s essential to have realistic expectations about the timeframes involved in buying a house. Delays can occur at any stage of the process, and factors such as the complexity of the transaction or the efficiency of your solicitor can impact the timeline.

 

To gain further insights into the house-buying process and ensure a smooth experience, you can visit the Bromfield Legal website. We offer expert legal services for property transactions in the UK.

Buying a house is a significant life event that comes with a series of legal processes. While the average time it takes to complete a house purchase is approximately 19 weeks, it’s important to remember that this timeline can vary based on numerous factors. Finding the right property, securing a mortgage, appointing a reputable solicitor like Bromfield Legal, and navigating the legal steps all contribute to the overall duration of the process. By understanding these stages and being prepared for potential delays, you can approach the journey of buying a house with confidence and realistic expectations. Get in touch for advice today, your new home may be just a few months away!

Aug 28
0

Is Tenants In Common A Good Idea?

By | Property Law

With the property market moving more compared to earlier in the year, a common question we see being asked is if tenants in common is a good idea for individuals.

 

Whether tenants in common is a good idea completely depends on the specific circumstances and goals of the individuals involved. At Bromfield Legal, we are experts in Conveyancing and Property Law and discuss below some factors for you to consider. We would always recommend consulting with a legal professional to best practice, as each person’s state of affairs is different.

 

What is tenants in common?

Tenancy in Common (otherwise known as TIC) is a legal arrangement in which two or more parties share ownership rights in a real estate property or parcel of land. Each independent owner may control an equal or different percentage of the total property, whether commercial or residential. The parties are known as tenants in common. This is a popular option for couples that aren’t married and would rather have security in their agreement. It is also a great alternative for friends moving in together, as now, more than ever, it is a popular way for first time buyers to fund their home.

 

What does tenants in common provide?

Shared Ownership: Tenants in common is a form of joint ownership where each owner holds a share of the property. This can be beneficial when multiple individuals want to have ownership rights over a property while maintaining separate interests.

Flexibility: TIC allows for flexibility in ownership shares. Each owner can have a different percentage of ownership, which can be advantageous if individuals contribute varying amounts of capital or have different investment objectives.

Estate Planning: Tenants in common can be useful for estate planning purposes. Each owner can specify their desired beneficiaries for their share of the property, ensuring that their assets are distributed according to their wishes upon their death.

Shared Expenses and Responsibilities: Owners typically share expenses and responsibilities related to the property. This can include costs for maintenance, repairs, and property taxes. It’s important to have clear agreements and communication among the owners to avoid conflicts.

Selling or Transferring Ownership: Allows for individual owners to sell or transfer their share of the property independently. This flexibility can be beneficial if an owner wants to divest their interest or if there is a change in ownership structure desired by one or more parties.

 

Understanding the law – why would I need a solicitor?

Potential Disputes: With shared ownership, there is a potential for disputes to arise, particularly if there are disagreements about the use, management, or sale of the property. It’s crucial to have a clear legal agreement in place that outlines decision-making processes, dispute-resolution mechanisms, and exit strategies.

 

Ultimately, whether tenants in common is a good idea depends on the specific needs and goals of the individuals involved. We urge you to consult with a legal and financial professional like Bromfield Legal to get a better understanding of the legal implications and to determine the best ownership structure based on the specific circumstances. As specialists in the industry, we take pride in our ability to provide an exceptional service. 

For expert advice, please contact one of our solicitors based at our offices in Nuneaton or Warwick. We can also advise you over the phone if preferred, please telephone our offices on 024 7638 2343 to make an appointment.

 

Jun 05
0
house in divorce

What is a Financial Agreement in a Divorce

By | Divorce and Separation

Going through a divorce can be a difficult and emotional time. During this challenging time, you might be thinking ‘What is a financial agreement in a divorce?’. We’ve put this useful guide together to break it down for you. 

In addition to the emotional upheaval, there will be many financial matters that need to be addressed. One of the most important financial decisions that you will need to make is how to divide your assets and debts.

how does the divorce process workWhat is a financial agreement?

A financial agreement can be reached during divorce proceedings and is separate from a divorce. 

While most people assume the financial agreement is part of the divorce, it is a separate process. 

There are a number of different ways to divide your assets and debts in a divorce. One option is to reach an agreement with your spouse through negotiation or mediation. If you are able to reach an agreement, you will need to have it formalised in a legal document called a financial agreement.

Is a financial agreement legally binding?

A financial agreement is a contract that sets out the terms of your financial settlement. It is important to note that financial agreements are not always enforceable. For a financial agreement to be enforceable, it must be fair and reasonable, and it must be entered into voluntarily.

If you are unable to reach an agreement with your spouse, the court will decide how to divide your assets and debts. The court will consider several factors in making its decision, including the length of your marriage, your respective incomes and earning capacities, your contributions to the marriage, and the needs of any children.

What does a financial agreement protect?

You’ll be pleased to know that a financial agreement is a multi-faceted legal agreement that sets out to protect many financial areas. A financial agreement can protect a number of things, including:

  • Property: The family home, investments, and other assets.
  • Income: This could include salaries, pensions, and other sources of income.
  • Debts: Including mortgages, credit card debt, and other debts.
  • Maintenance: Payments to one spouse or civil partner to support them financially after the relationship ends.
  • Child support: Money to be spent on raising the children 
  • Pensions: You may have a large pension that you’d like to protect.
  • Family inheritance: Your family may have capital and assets they need to protect from your ex-spouse. 
  • Future partners: The financial agreement also helps keep future partners on both sides from having any financial influence. 

how does the divorce process workHow do I apply for my financial agreement?

If you are going through a divorce, it is important to speak to a solicitor about your financial options. We will help you understand your rights and options and help you negotiate a fair and reasonable financial settlement.

Your solicitor would typically aim to process the financial agreement before the Decree Absolute. Why? The financial agreement can become more complicated once the divorce is finalised.

Why do you need a financial agreement?

Unsurprisingly, even though you may be amicable with your ex, money can bring out the worst in people. By getting your financial agreement in order, you’ll be safeguarding yourself as well as having peace of mind. 

Avoids going to court 

Going to court can be a lengthy and expensive process. If you can reach an agreement with your spouse, you can avoid the cost and hassle of going to court.

Secure your financial future

Knowing that your financial future is secure can help you move on with your life after your divorce.

Protect your children

A financial agreement can help to ensure that your children’s needs are met after your divorce.

How do I get a financial agreement?

If you are considering reaching a financial agreement in your divorce, speak to us at Bromfield Legal as soon as possible. Our highly experienced team will approach your case with compassion and determination. We will help you understand your rights and options, and work to achieve an agreement which is best for you.

Dec 20
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handing key over

Can I put my child’s name on my house deeds?

By | Children

Adding your child’s name to the deeds of your house is a decision which should take some consideration. There are some recurring factors as to why people choose to add their child’s name to a property. 

 

These usually include setting up their child financially, protecting their assets from being hit with hefty tax bills or protecting their child’s inheritance from a new spouse or family arrangement. 

 

It’s important to understand how putting your child’s name on the deeds can lead to uncomfortable implications. With that said, adding your child to the deeds may be the ideal solution for your particular circumstance. 

House in hands grey and white with key

You can put your child’s name on your property but that doesn’t mean you should. We’re here to make sure you have the best advice and end up with the right solution for you. 

 

We strongly advise seeking legal advice before you start changing names on the deeds to your property. Talk to one of our solicitors today to start your process on the best footing. 

 

From avoiding the sting inheritance tax to helping your child get on the property ladder, we understand your motivation for adding their name. 

 

In order to add your child’s name to the deeds, you’ll need to transfer a share of equity to them. This needs to be overseen by a solicitor like us at Bromfield Legal. 

 

How do I transfer my child’s name on to the deeds of my house 

 

There are a few steps you’ll have to take to complete this process which are listed below. 

 

  1. Transferring equity by ‘gifting’ the property. 
  2. Getting a solicitor to help with documentation and legal matters. 
  3. Safeguarding yourself and your assets.

 

Gifting your child 50% of the property 

 

We strongly advise you take the option of 50% shared ownership rather than transferring the entire property to your child. To complete this, you will need the deed mottled ‘tenants in common’ Why? Simply because this protects you from 

 

  • They can’t take debts out on the property 
  • They legally can not evict you from the home 
  • If they get married and then divorced, their ex spouse is only entitled to their share of the property – not yours. 

Benefits of adding child’s name to property 

 

You’ll see the benefits which fit some circumstances. Understanding thoroughly how they will service you for the better will help inform your decision. 

 

Getting your child on the property ladder 

 

You’ll be one of many who has recognised the harsh economic climate for first time buyers. Whilst there were multiple government schemes such as help-to-buy and shared ownership with the government with only 5% deposit, these schemes have drawn to a close as of 2021. 

 

Parents who are also property owners are seizing the opportunity to offer their children a shared ownership of the family home. 

 

As mentioned above, this would be carried out by you giving over 50% of the equity of the home to your child. 

Protecting your asset from a new spouse 

 

Modern families come in all shapes and sizes and at Bromfield we are well versed in accommodating all family set ups. Your new partner might come and live with you and you might be thinking now is a good time to safeguard your asset for your children’s sake. 

 

Putting their name on the deed in a 50% shared ownership would certainly do this. If you were to remarry with no prenuptial agreement or financial order in place, your new spouse could only claim the equity in your share of the property if you enter into a divorce. 

 

Avoiding hefty inheritance tax bills 

 

Inheritance suffers a chunky hit from Inheritance Tax. If your property is valued at more than £325,000, you’ll be looking at 40% tax on your inheritance.  

 

Gifting a property to your child 

 

The timing of ‘Gifting’ to your child should be taken into consideration. If you die between 1-7 years after you have given a gift to your child, the amount will be taxed. 

 

After 7 years the gift amount is no longer taxable. But within the first year if you were to die, the gift is eligible to be taxed 38%. The amount of tax decreased as the years add on. 

boy holding house in orange t shirt

Why you shouldn’t add your child’s name to the deeds of your house

 

Here are some serious considerations as to why you shouldn’t add your child’s name to the house deeds

 

Your child will still have to pay capital gains tax 

Capital Gains Tax is the tax applied to increased profit on a property from the date it was bought to the date it was sold. 

 

If you purchased a property for £200,000 and now it’s worth £550,000, the capital gain is the difference between these two figures – £350,000. This is the amount your child will be taxed on if they sell the property. 

 

Your right to live and stay in the property 

 

Unfortunately, fallouts do occur and you’ll want to know your right as a tenant in the property you’ve handed over. 

 

Transferring 100% of the equity of the property to your child could really leave you in a vulnerable position. 

 

If they sell the house, it is within their right to evict you which of course is an unpleasant experience for anyone. 

Making sure you make the best decision and take the right legal action is what we do best. Get in touch with us at Bromfield Legal and speak to an experienced solicitor about your situation. We look forward to hearing from you soon.