Dilek Kamalak invited to discuss with potential investors the legal aspects of buying a home in England

Dilek Kamalak invited to discuss with potential investors the legal aspects of buying a home in England

Dilek Kamalak, a Partner in Colman Coyle, is delighted to be a guest speaker to discuss the legal aspects of the home buying process in England.

The event will include potential investors looking to purchase property in the London market.

The event will also include guest speakers from Piccadilly Estates and Barratt London. It will take place at Barratt High Street Quarter Development in Hounslow on Wednesday 18 May 2022 from 17:45pm (BST).

Please read the leaflet below for a detailed overview. There are limited spaces available and therefore if you wish to attend, please email Piccadilly Estates on info@piccadillyestates.co.uk.

Colman Coyle act for a significant number of foreign investors in the UK. If you have any questions on how we can assist, please contact Dilek Kamalak on +44 (0)20 7354 3000.

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Dilek Kamalak invited by Unique London Consultancy to discuss the legal aspects of buying a property in the UK

Dilek Kamalak invited by Unique London Consultancy to discuss the legal aspects of buying a property in the UK

Dilek Kamalak, a Partner in Colman Coyle, is delighted to be invited by Unique London Consultancy to discuss the legal aspects of buying a property in the UK.

The webinar, which is aimed at investors in Turkey, will take place virtually on Thursday 21 April 2022 at 10:30am (BST).

The event will be a good opportunity for attendees to learn more about the property market in London and provide a brief overview of the buying process. The webinar will also include other guest speakers including Asel Talipova, the international sales manager of Barratt London and Volkan Ozcelik a mortgage adviser at 1st Call 4 Mortgages (UK) Limited.

Please click here to register for the webinar: https://bit.ly/3jyMNxc

Colman Coyle act for a significant number of foreign investors in the UK. If you have any questions on how we can assist, please contact Dilek Kamalak on +44 (0)207 354 3000.

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Recent Development on Japanese Knotweed

Recent Development on Japanese Knotweed

In the recent years there has been a greater awareness of the threat posed by Japanese Knotweed in the UK.

Japanese Knotweed has been described by The Environment Agency as “indisputably the UK’s most aggressive, destructive and invasive plant” as a result of its very fast growing nature it poses risks to properties within seven metres of the plant. When it comes to the extermination of this invasive plant it requires great determination and time and can be very costly. The presence of Japanese Knotweed on a property can affect both the value when arranging a mortgage and when it comes to selling.

There has been a very important recent case, Williams and another v Network Rail Infrastructure Ltd [2018] EWCA Civ 1514; [2018] PLSCS 120 where it was held that when Japanese Knotweed encroaches on a property owner’s land, the property owner does not have to prove physical damage to the property to bring an actionable claim for private nuisance. It allows a property owner to seek an injunction requiring that neighbour to control Japanese Knotweed on their land on the basis of any anticipatory damage because it affects the amenity value and quiet enjoyment of his or her property. This provides a remedy for those whose property is threatened with the encroachment of Japanese Knotweed from any neighbouring properties and confirms that, even if there is no actual physical damage to the property, the presence of Japanese Knotweed can affect amenity value.

In this case the court awarded the claimants damages for the costs of treating the invasive Japanese Knotweed and for the diminution in the value of the property as a result of the presence of knotweed together with its interference with the quiet enjoyment or amenity value of their properties.

On the purchase of residential properties standard enquiries specifically raise the question about the presence of Japanese Knotweed and it is important that sellers are very careful when replying especially when a seller does not occupy the property or has not occupied the property for a while due to it being let etc and replies such as ‘not so far as the seller is aware’, puts the seller under a risk of being found liable for misrepresentation. Equally it is important for Buyers of a property to be cautious of the presence of Japanese Knotweed and they should raise immediate enquiries with the agents, their surveyors and solicitors to establish the presence of the same.

As a general rule it is important that property owners are aware of the potential liability that they are exposed to by the presence of Japanese Knotweed and upon becoming aware must act immediately in making arrangements for the control and treatment.

Important points to consider before purchasing a residential property in the UK

Important points to consider before purchasing a residential property in the UK

Funding

Usually, a property will be purchased with the aid of a mortgage and it is therefore important to obtain a prequalified and preapproved credit. This will give you an indication as to how much money lenders will give you and help you to focus your research on properties which are within your budget.

Arranging a mortgage can also take up to several weeks in the UK due to several considerations that apply. Firstly, you will need to decide upon the type of mortgage suitable for you as lenders can offer mortgages on standard and variable interest rates as well giving interest-only models. Secondly, lenders will also want to ensure that the property to be purchased is valued before an application is accepted. This is mainly so that they will have security if borrowers default on their repayment plans.

As a result, if you are thinking of purchasing a property, one of the first steps for you to consider should be funding.

Initial stages

It is usual for buyers to seek assistance from estate agents who will initially act as the first point of contact when searching for a property. It is important to find and work with an estate agent who can provide you with helpful information that may not be easily accessible to the public. Once a suitable location and property is found, an offer will be put forward. If this is accepted, estate agents will begin preparing a memorandum of sale setting out terms such as price, details of sellers and buyers and their respective solicitors.

The Buying Process

Once the above steps are considered and completed, the process of purchasing a house can begin. This process is usually known as ‘conveyancing’ and it could take between 2 – 4 months to complete. The main reason for this can simply be summarised as ‘due diligence’. Due diligence is where the buyer’s solicitors carry out searches before a property is purchased and it can consist of several matters such as:

  • Reviewing title of the property;
  • Obtaining a survey;
  • Agreeing terms of the contract with the seller’s solicitors;
  • Undertaking searches with local authorities

Each step may require a significant amount of time, which could lengthen if the solicitors make any adverse findings about the property. Buyers should be aware of this process given that in many other European countries property contracts are entered at the outset before due diligence is carried out.

Tax considerations

One of the most important tax considerations is the Stamp Duty Land Tax (SDLT) which has recently been revised in the government’s Autumn Budget in November 2017. SDLT is a type of tax paid on the purchase of land. SDLT rates will differ for first-time and non-first-time buyers of residential property.

First-time buyers do not have to pay any tax where the value of the property is up to £300,000. Thereafter, a 5% tax rate applies for properties valued between £300,001 to £500,000 and where the property is more than £500,000 the below rules will apply.

Non-first-time buyers do not have to pay any tax where the value of the property is up to £125,000. Thereafter, the below rates apply:

  • 2% tax rate applies for properties between £125,001 to £250,000
  • 5% tax rate applies for properties between £250,001 to £925,000
  • 10% tax rate applies for properties between £925,001 to £1.5 million
  • 12% tax rate applies for properties worth more than £1.5 million
Exchange of contracts, completion and post-completion

Once the due diligence process is complete, the buyer and seller will exchange contracts to enter into a legally binding agreement. There will then be a period between exchange and completion where the buyer’s solicitors will prepare transfer documents, apply for mortgage monies and complete pre-completion searches.

Once completion occurs, buyer’s solicitors are required to send forms to the Inland Revenue confirming their stamp duty payments, apply to the Land Registry to register buyers as the new owners of the property and tell the lender of completion.

Taking all of the above points into account, it can be seen that purchasing a property is an onerous task and the above points are only for guidance and are not intended to be conclusive. If you are thinking of purchasing a property, you should consult legal advisers before embarking on this journey.

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