Property Practice 1 - Freehold property transaction Flashcards
Acting to buyer and seller
Substantially common interest does not apply
Joint buyer
Can as long as comply/
Borrower and lender
Risk of conflict high if;
not standard mortgage
do not use approved certificate of title.
Etridge guidelines (joint borrower (matrimonial))
Should explain with husband consent
-purpose
-amount of indebtedness
-amount of overdraft
-amount and terms
-copy of written application
Regulated mortgage contract
Borrower is individual. First legal charge over property and at least 40% intended for occupation by borrower or member
Remember FMSA 2000.
Can give generic advice.
SDLT
Up to £625,00.
Do not pay up to £425,000 and pay 5% of portion from this.
Non first time residential
Does not exceed £250,000 but does not exceed £925,000 5%
925,000 - 1,500,000 10%
Remainder 12%
Non-residential
up to £150,000 (0%)
150,000 - 250,000 (2%)
above 250,000 (5%)
Paid within 14 days of completion.
LTT
No first-time buyer exemption. Residential
up to £225,000 0%
225,000 - 400,000 (6%)
400,000 - 750,000 (7.5%)
750,000 - 1,500,000 (10%)
Remainder 12%
Commercial
Up to 225,000 0%
225,000 - 250,000 1%
250,000 - 1m 5%
exceeds 1m 6%
CGT
Private residence relief-
Occupied as main residence throughout period of ownership.
0.5 hectares of garden unless for reasonable enjoyment of the house.
VAT
New (three years) - standard rated.
Old freehold exempt - subject to option
Residential not in course of business.
Development
Carrying out maintenance, improvements or other altering which only affects interior.
B2 - general industrial
B3 - storage and distribution
C - residential uses (hotel C1)
dwelling houses (C3)
multiple occupation (C4)
E - Commercial, business and services
F - local community and learning
Lapse in three years from date usually.
GDPo automatically granted - extensions of certain size.
Article 4 direction by Secretary of State may be issued.
Enforcement
Enforcement notice - served on owner and any other interest in land. Effective 28 days after service.
Stop notice - enforcement first, effective for 28 days within period.
Breach of condition notice - unlike enforcement cannot appeal.
Injunction - expedient and necessary.
Action must be taken within four years of change.
Building regulation even when no planning permission needed (structural safety).
Proceedings by authority must be brought within two years. Enforcement within one to change or remove work.
CON92.
Listing - permission to demolish alter or extend.
Conservation areas - six weeks in advance for tree. Demolition and changes need to be applied for.
Investigation of registered title
Title (official copies)
Title plan.
Property - freehold/leasehold
Easements
Proprietorship - current owners and address, lass of title.
Absolute - vested in legal esate subject only to entires on register, overriding interest and minor interests of which they have notice.
Possesssory - lost title deeds or adverse possession. Subject to all adverse interest existing at date of first registration.
Qualified - specific identified defect which Registar feels cannot be overlooked.
Restrictions to sell
Charges register -
covenants burdening, easements burdening, charges, leases, notice by third party interest.
Unregistered
Mortgage or conveyance on sale.
Look back at third party rights.
Good title -
deal with or show entire interest, recognisable description, nothing to cast doubt, at least 15 years old.
WHEREAS - sesied of property
beneficial owner unto the purchaser
BOTH legal and equitable dealt with here.
Unbroken chain of ownership
Description lf land.
Easements - EXCEPTING and RESERVING
SUBJECT TO - covenant.
s52 LPA -
be in writing
make it clear on face it is deed
be signed by person granting interest In presence of witness who attests
be delivered as a deed
Land charges (incumbrances) should be registered.
Issues from deduction
Easements - in charges if burden, property if not.
If want to use must contribute (Halsall v Brizell).
If mining check coal mining search.
Index map search on SIM to check mines and minerals on separate title.
Joint tenancy unless
RESTRICTION - no disposition …
Unregistered conveyance will state
If dead need DC.
Registered presume severed.
Unregistered if;
no memorandum
no bankruptcy proceedings against joint tenants at Land Charges
transfer contains statement survivor is solely and beneficially entitled to land.
If passed to someone else get grant.
Restrictive covenants -
Ask who is it
Obtain insurance
Upper Tribunal (Lands Chamber) for modification on grounds is obsolete ad confers no practical benefit.
Mortgage - ask sellers advocate for undertaking to discharge immediately on completion.
Lease - more than seven years (needs to be registered).
May qualify if tenant in possession even if not registered.
Unregistered - legal lease created by deed.
Parol lease binding (three years or less).
Home rights -
FLA 1996
bind if notice in charges.
Unregistered - Class F land charge.
Seller obtain release of all rights prior to completion.
