The new Act will help the Land Registry to improve the conveyancing process by creating a digitised local land charges register that will improve access to data, standardise fees and improve turnaround times for property professionals and citizens, reducing unreasonable and excessive delays.

The Act also:

• Creates a new Government owned subsidiary company from 1 April 2015, known as Highways England, that will take over the responsibility for strategic roads from the Highways Agency
• Allows surplus and redundant public sector property and land to be sold more quickly by cutting red tape
• Allows local communities the right to buy a stake in renewable energy infrastructure projects
• Sets out a cycling and walking investment strategy
• Creates a new right to use land to exploit petrol or deep geothermal energy without notifying owners, which includes the right for fracking under land.
• Provides the Mayor of London with new powers to make development orders granting planning permission for development on specified sites within London. The intention is to overcome cross-boundary planning issues and remove barriers to major development.
• Improves the nationally significant infrastructure regime through technical administrative improvements to the Planning Act 2008.

Transport Secretary Patrick McLoughlin praised the new Act: “[it] will hugely boost Britain’s competitiveness in transport, energy provision, housing development and nationally significant infrastructure projects. Cost efficient infrastructure development is all part of the government’s long term economic plan, boosting competitiveness, jobs and growth.”

 

People who are looking to exit their business are often ‘first-time sellers’ and therefore it is helpful to know in advance what the legal process actually involves. We have put together a brief summary of this below.

Negotiating a sale and the heads of terms

Once you have identified a buyer, the legal work usually commences when you negotiate the key terms of the transaction with the buyer. Once you reach an agreement on these terms, they would normally be recorded in a document known as the ‘heads of terms’. The document would typically include the sale price, an agreed date for the sale, how the purchaser plans on paying for the business, and the timetable schedule for the transaction including due diligence, sale contract and disclosure, and obtaining the necessary approvals from third parties if necessary. A confidentiality agreement is also a good idea, since the buyer will have access to various information that the vendor may wish to protect in case the transaction falls through.

The legal aspects of the sale process

Due Diligence

This is where the buyer, with the help of advisers, conduct thorough investigations into the business. The investigations are likely to include questionnaires and requests for various documents. The areas that would be looked at would include the assets of the business, the accounts and financial records, the key legal contacts and the employees. If any issues relating to the business are identified, this can hinder the process of the sale, or even prevent it from going ahead completely.

Sale contract and disclosure

Whilst the investigations are being carried out, the sale of contract is to be established, which is the main contractual document that records all the terms of the sale, and more importantly the transfer of ownership of the business. The sale contract is often heavily negotiated between seller, buyer and the solicitors. Sale contracts always contain a number of warranties. These are promises that the seller is asked to make in respect of the business being sold.

Completion

Once the buyer has carried out the due diligence investigation, the key documents (sale of contract) are created and agreed on, the necessary disclosures have been made, and any third party consents obtained, the process of the sale can be exchanged and it can reach the completion stage. All legal documentation would be signed so that the contract can be officially entered into, and the seller receives the sale proceeds from the buyer.

 

If you are considering or have thought about the possibility of selling your business, HA Law are happy to advise you on the matter so get in touch by emailing a HA Law Partner at info@ha-law.co.uk or calling 020 7788 7465.

 

Having a will is the most significant part of any estate plan.

• It means it will speed up the administration process and reduce costs after your death
• It helps preserve your assets in the way you wish
• It helps determine who you wish to be the guardian of any minor children you may have at the time of your death
• It can help reduce the amount of Inheritance Tax that may have to be paid on the value of your property and the money that you leave behind
• If you have remarried, a will can ensure any children from your first marriage will still receive a share of your estate
• If you do not have a will in place upon your death it means the intestacy rules dictate how your estate is distributed
• It will ultimately save your family time and unnecessary distress during what will already be a difficult time for them

Things to consider when making your will:

• The best place to start is taking an inventory of your assets. Your assets include your investments, retirement savings, insurance policies, and real estate or business interests
• In terms of deciding who to include in your will, most people consider their partner or spouse, children, other family members, friends or their favourite charities
• The next step would be deciding on how you wish to split up the assets you have; what would you like to leave behind and for who; for example, who would you like to inherit your property or your business?
• Check if you will have to pay Inheritance Tax and how much you would have to pay
• Your funeral wishes
• Making gifts- you may wish to leave a specific gift (an item of jewellery for example) or a pecuniary gift (such as cash) for someone in particular

It is important to note that wills ought to be amended over time. Some of the factors affecting the need for an amended will are: if you were to marry, divorce, become a parent, cohabit with someone, own a new business or you receive a windfall of some sort.

Do not delay in making a will if you have not got one.  HA Law can help you with this matter so get in touch with us by emailing info@ha-law.co.uk or calling 020 7788 7465 to speak to a HA Law Partner.

1. How long does it take to buy or sell a property?
This can always vary. The average time for a transaction to be completed is 6-8 weeks but in some cases, this can happen much more quickly while in others the process takes longer.

2. Will a deposit have to be paid?
Where you are purchasing a property with no related sale transaction, the contract will provide for a 10% deposit to be paid on exchange of contracts.

3. What is exchange of contracts?
When both the buyer and the seller are ready and happy to commit themselves to the transaction, contracts are exchanged and the agreement becomes binding on the parties.

4. When do you exchange contracts?
The seller and buyers would have agreed on when to exchange the contracts. This is usually done by the solicitors on behalf of the parties once they are satisfied that all queries have been answered and all the conditions have been met.

5. Can I pull out of my sale/ the purchase?
Any party may withdraw from the transaction prior to the exchange of contracts. However, once contracts are exchanged, remedies for breach of contract would be available to the suffering party. The buyer would be able to insist on a return of their deposit or the seller would be able to keep the buyer’s deposit depending on who was at fault.

6. What are the most common causes of delays?
Solicitors will always endeavour to drive the transaction forward, but sometimes delays do unfortunately occur:

• the length of the chain involved- one point of the chain being delayed means everything else will be too
• delay in getting certain information or documents from outside organisations
• the mortgage offer is issued with unforeseen conditions
• something unexpected is revealed in the searches and enquiries that are carried out

7. How much stamp duty do I have to pay?
The stamp duty is payable by the buyer, not the seller. Under the new system, the stamp duty is charged in the following way:

Up to £125,000 purchase price-  Zero
Over £125,000 to £250,000- 2%
Over £250,000 to £925,000- 5%
Over £925,000 to £1.5 million- 10%
Over £1.5 million- 12%

• Purchase price £275,000 (average UK house price). Tax was £8,250 – now £3,750
• Purchase price £510,000 (average London house price) Tax was £20,400 – now £15,500
• Purchase price £2,000,000 Tax was £100,000 – now £153,750

8. What is a contract race?
This is where the property being sold is offered to more than one buyer, usually on the basis that the first to exchange contracts will get the property. Contract races are entirely legal although if more than one contract is issued, then the seller has a duty to inform all parties that this has happened. If you lose out on a contract race you cannot claim your lost expenses from the seller.

9. When can I move in by/when do I have to move out?
The buyer can move in on the day of completion; that is when they can receive the keys to the property. This also means that the seller must move out by the day of completion and clear the property of all their belongings. Usually, the contract states a specific deadline on the completion date to move out by such as 1pm.

10. What happens on the completion date?
The completion date is the date on which the buyer’s solicitor transfers the purchase money from their bank account to the seller’s solicitor’s bank account and the ownership of the property is officially transferred to the buyer. It will be arranged for the keys to be handed over to the buyer, and they can move in on that same day.

 

At HA Law we can assist you on all aspects of selling or buying a property in the UK. A full list of our property services can be found on our PROPERTY page. For further information, please email info@ha-law.co.uk or telephone 020 7788 7465 to speak to a HA Law Partner.