Understanding stamp duty can be extremely confusing at the best of times, but should you be buying more than one property, the issue becomes even more complex.

Howells Solicitors offers a brief overview to help you get to grips with stamp duty liability.

Linked Transactions

If a single party purchases two or more properties from the same seller, then this is known as a ‘linked’ transaction. For example, if a buyer were to purchase two flats from the same developer, or a house and a piece of land from the same seller, they would be considered linked transactions. More...

Christmas is rapidly approaching, and families across the country are finalising their holiday plans.

For some families, this isn’t always an easy task, particularly when parents have separated or divorced. In these cases, the decision about where a child should spend the festive period can be fraught with disagreement and heartache.

In cases where parents are unable to agree about a child’s living arrangements, or with whom they spend time, it’s sometimes necessary for the Court to get involved. When mediation has proved unsuccessful (and domestic abuse is not an issue), a Child Arrangements Order (previously known as a ‘child residence order’ or ‘child contact order’) will be issued by the Court to clarify a child’s living arrangements.

Unfortunately, however, once these orders are made, they are not always complied with. When this happens, the person failing to comply could be held in contempt of court, which could mean fines, enforcement orders and even imprisonment.More...

In his Autumn Statement Chancellor George Osbourne announced buy-to-let landlords and people buying second homes in England and Wales will have to pay an additional 3% on each stamp duty band from April 2016.

Mark Hobbs, managing partner of Howells Solicitors, one of the UK’s largest conveyancing firms, anticipates that this will prompt an increase in activity by investors as they rush to complete property transactions before the April deadline. This flurry of activity is then likely to be followed by a lull in the property market after the new changes have come into place, and this might benefit first-time buyers.

“At this early stage it is very hard to predict how this change will impact the property market. After the initial rush to complete transactions in the run up to April next year, there is likely to be a lull in the marketplace. This could be good news for first time buyers, as there may be less competition for certain types of property that would otherwise have been purchased by investors.”

“In my opinion this could have a very positive effect in the marketplace in the latter half of next year. In the slightly longer term, if the additional tax reduces the number of buy-to-let properties being purchased, this will create less supply, and with an ever-increasing demand in the rental sector, is bound to result in an increase in rental fees. If rents do increase, this is likely to increase the yield in property and then in my opinion in the longer term it is unlikely to be significantly affected by these changes”. More...

Applying to Court for an Order for Sale

Buying a property with a friend can seem like a good idea, but what happens if things don’t go to plan? As tenants in common, the easiest way of sorting out this arrangement is to agree to buy the other out or decide on the best way to dispose of the property that works for both parties.

However, if neither party can agree then one option available to you is to apply to court for an order of sale. This can be a costly process and can cause animosity between the two tenants in common, which is why it is often a last resort.

What is an Order for Sale?

When a property is held in joint names, but a sale cannot be agreed upon, then one of the parties involved can apply to court for an Order for Sale. This is found in sections 14 and 15 of the Trusts of Land and Appointment of Trustees Act 1996.  

If a property is owned jointly, except for very specific and unusual situations, the property is deemed to be held on what is termed as a “Trust for Sale”. As a result, the starting position is that if either party wants the property to be sold, it should be.

A court will therefore require very strong evidence to prevent a sale taking place.

A court will however expect the parties to reach an agreement if one party makes a reasonable offer to purchase the other party’s share.

Case Study - We Bought a House as ‘Tenants in Common’. I Want to Sell and the Other Person Doesn’t!

Q: Six years ago, my friend and I invested in a property as "tenants in common". When we bought the house, we both agreed that we would hold on the property for at least five years, and then look at selling it. 

In the intervening years, I have got married, while my friend has left the UK and is working abroad. I’m now looking for the exit strategy that we discussed, but he wants to continue owning the property.

What are our rights? Can tenants in common force a sale? Or is there a way I can make him sell his share to me so that my spouse and I can own it and live in it as our family home?

A: Tenants in common each own a separate and distinct share in the property they've invested in.

Hopefully you entered into a declaration of trust at the outset, confirming the terms of your agreement. If you did, then that should contain provisions regarding the disposal of the property, so remind your friend of its terms. With this in mind, you should be able to try and reach an agreement.

However, if there was no declaration of trust, you could offer to buy out your friend for a fair price.

Forcing the Sale of a Property

If you can't agree, you could tell your friend that you intend to apply to court for an order for sale. This option will be costly and will be likely to reduce the property's sale proceeds. It may also prove to be a bone of contention between the two of you.

Ensure that the court awards you conduct of the sale – then you will at least have some control over events.

If your co-owner is particularly obstructive and refuses to sign anything, you could end up having to make an application for the court to sign the "contract for sale and transfer" – which is all costly. It is always much better if you can reach agreement and highlights the importance of confirming agreements legally at the start of a process.

How to Apply to Court for the Order for Sale

Applying to court for the Order for Sale is something that you should appoint a solicitor to do on your behalf. If there are no dependants living in the property or other special circumstances, then it will be very difficult for the other party

then this should be a relatively straightforward process. If there are other things to consider then it is well worth seeking legal advice before following this course of action.

To apply for order of sale you will need to issue proceedings at the County Court.

Apply for an Order for Sale with Howells Solicitors

If you’re looking for legal advice or representation to help you get through this stage, then talk to Howells Solicitors today. With a wealth of experience and friendly, professional lawyers who aim to make applying to court for order for sale as smooth as possible – talk to us today on 02920 404020.

A Will may be written some time before death. It is not unheard of for a named Executor(s) to die before the Testator. If one or more of the Executors dies it may be that the Will names one or more other Executors. It would then be for those Executors named to take up their entitlement to the Grant of Representation to the Will.

If all of the named Executors have died or are unwilling to be appointed, the order of who is entitled has to be established by using the NCPR 1987. It may be that a beneficiary under the Will could become the Personal Representative. It is therefore important if you find yourself in this sort of situation that you seek legal advice on who can apply for the Grant of Representation;

How do I apply for the Grant of Representation?

You can apply for the Grant of Representation if you are a Personal Representative (PR) of the estate. A Personal Representative or PR could be an Executor named in a Will or an Administrator, where there is no Will.

There are two main types of Grant of Representation; the appropriate one will depend on the circumstances of the estate. The two main types of Grant of Representation are as follows; More...