Uk
Call for administration of UK leasehold property sales to be streamlined
The Conveyancing Association (CA), the leading trade body for the conveyancing industry in the UK, has outlined a number of recommendations to end what it believes to be significant delays and overcharging taking place within the leasehold sector. A growing number of leasehold sales are taking place each year across all UK regions, up from 220,000 in 2011 to 260,000 in 2015, with 57% in Greater London and 40% in the North West. As a result the CA wants to see a streamlined process taking out the unnecessary delays and a cut to what it describes as ‘unwarranted’ fees charged by many lease administrators who administer the terms of the lease to the leaseholder. In a recent survey of conveyancers some 56% of CA member firms said they believe that in 30% of transactions lease administrators charge unreasonable fees, and a further 32% said in 16% to 30% of sales they charge unreasonable fees. On top of this, 62% of estate agents, the traditional buffer between the consumer and the process, say that the provision of leasehold sale information causes real issues in the house moving process, with 34% branding it ‘an absolute nightmare’. Common problems within the process include identifying the lease administrator as there is no registration or regulation required and significant delays can be incurred attempting to find the right person or company. There is also a recognised imbalance of bargaining power between the lease administrator and the leaseholder as there is currently no requirement for the publication of costs or any control over their extent in relation to receipt of service of notice, deed of covenant, share transfer or certificate of compliance. When it comes to overcharging on the part of the lease administrators the CA has seen cases where costs levied are up to nine times more than what the conveyancing industry might expect them to charge for carrying out such work. On average Lease Administrators are charging between £250 per hour and £360 per hour for administrative work, far in excess of what conveyancers and customers might expect those charges to be. The CA also points out that there is also often a duplication of costs with leaseholders required to pay multiple parties to complete their LPE1 (Leasehold Property Enquiry) form and no redress system is currently available to existing or incoming leaseholders with no effective consumer rights and no recourse to the Ombudsman given its lack of jurisdiction over costs unless the complaint is in respect of a breach of agreement for those costs. It points out that there can be significant delays in the provision of the LPE1 information and dealing with other requirements post-sale necessary for the registration and protection of the leaseholder’s title. This causes significant distress to a chain of house movers and can cause sales to fall through. To reduce the impact of these issues the CA suggests that delays in the… Continue reading
Demand for retirement homes in UK slows
The uptake of retirement housing in the UK softened in the second quarter of this year as many downsizers paused plans ahead of the European Union referendum vote, according to the latest quarterly review. Overall new buyer registrations for retirement properties slipped by over 20% from the first quarter to 4,744, a 30% fall on the same period last year, as uncertainty before the referendum slowed the market. However, the data from retirement property specialist Retirement Homesearch, also shows that the number of property viewings at 2,974 and instructions at 513 remained steady on first quarter numbers, showing that registered buyers are still actively looking to downsize. ‘Uncertainty around the referendum may have caused many downsizers to sit on their hands until after 24 June, but the outcome could mean a further delay in decisions, as markets fluctuate and affect pensions, which will have a knock-on effect on Britons’ retirement plans,’ said Nick Freeth, managing director of Retirement Homesearch. ‘However, with six million older Britons now living in houses with two or more excess bedrooms, downsizing could help retirees free up capital, reduce the cost of running large properties and move to homes better suited to their needs,’ he added. A recent report on the state of the UK’s housing, published by the International Longevity Centre (ILC-UK) and supported by Retirement Homesearch parent company, FirstPort, shows that under occupancy amongst the older generation is now a widespread issue with six million people living in houses with two or more excess bedrooms. Since 2005 there has been a significant increase in the number of 65 to 74 year olds living alone to 300,000. ‘As experts in retirement housing, we know that having access to specialist advice is especially important in the post-Brexit landscape where it is essential to minimise uncertainty. By ensuring downsizers get the guidance they need, they can begin to look forward to a new home, as well as a new lifestyle,’ Freeth concluded. Continue reading
Scottish farmland values static in first half of 2016
The value of Scottish farmland remained virtually static in the first half of 2016, down just 0.2% to £4,357 per acre, according to the latest sector index. Year on year values are down 1.7% but up 26% over five years, up 169% over 10 years and up 174% over 20 years, the data from the Knight Frank Scottish Farmland Index shows. A breakdown of the figures show that good quality arable land remains at £9,046 per acre, while the price of permanent pasture fell fractionally to £2,719 per acre and overall despite prices holding up, there has been relatively little market activity in 2016. ‘There have been very few farms sold so far this year, and fewer than usual were launched around the time of the Royal Highland Show, which is the point the market here traditionally gets going,’ said Tom Stewart-Moore, head of Scottish farm sales at Knight Frank. ‘We are still talking to potential vendors who had just got to grips with the result of the recent reform of the Common Agricultural Policy and Land Reform, but until they get a better feel for what Brexit means for the Scottish agricultural industry they are wary of committing to a sale,’ he explained. ‘Combined with the continued slump in commodity values, many people were expecting a rush of farms to the market in 2016 and a subsequent drop in prices,’ he pointed out, adding that low interest rates mean there have been very few forced sales so far. He also pointed out that demand for good quality arable and livestock units is definitely outstripping supply and demand also remains strong for amenity and sporting estates. Knight Frank recently sold the 6,500 acre Kinnaird Estate in Perthshire for in excess of its £9.6 million guide price and an 8,000 acre stalking estate in Sutherland, which is due to launch soon, is expected to be another good test of the market. ‘Although Scotland did not vote for Brexit, the slide in the value of Sterling since the referendum makes land here better value than it was before the vote so I’m expecting more interest from overseas buyers,’ said Stewart-Moore. ‘Despite uncertainty in the economy, the value of the pound and volatility in the stockmarket, land is still seen as a very safe investment,’ he added. Continue reading
