Archive for July, 2007
Tuesday, July 31st, 2007
A re-evaluation of the legal system in Scotland is set to be recommended to the Scottish executive by the Office of Fair Trading (OFT), it has emerged today.
The Scotsman reports that the OFT intends to call on the executive to open up the sector to greater competition, allowing high street names such as Asda, Tesco and major banks to enter the legal services market.
In return the executive has committed itself to replying to the OFT’s applications within three months.
Kyla Brand, representative for the OFT in Scotland, remarks: "We are asking that there should be clear progress on this. There should be some policy statement by the end of the year."
Ms Brand added that if the recommendations were accepted in full it would signal the complete deregulation of the sector but added that the mode of implementation remained to be settled upon.
The Scotland branch of the OFT opened in mid-March this year in a move intended to strengthen links with Scottish consumers, businesses and policymakers.
Posted in Family Law | No Comments »
Monday, July 30th, 2007
Demand for property is expected to fall off as the impact of interest rate hikes begins to effect borrowing costs, Rics has said.
Commenting on the publication of the Bank of England’s (BoE’s) mortgage approval data for June, Rics chief economist Simon Rubinsohn believes the latest figures indicate a "modest drop in the level of re-mortgage activity".
Total net lending for June was £10.4 billion, according to the BoE, with lending secured on properties at £9.6 million and the total number of loans approved for house purchasing unchanged from May, at 114,000.
However, the number of loans approved for both re-mortgaging and other purposes, at 102,000 and 72,000 were lower than the previous month’s totals of 110,000 and 74,000 respectively.
Although the number of mortgage approvals was higher than expected, the drop in remortgaging activity is significant, Mr Rubinsohn said.
"Homeowners may just be becoming a little more wary of continuing to draw on the equity that has built up in their property as a means of financing spending at a time when real incomes growth remains under pressure."
Posted in Estate Agency | No Comments »
Friday, July 27th, 2007
As increasing numbers of people across the country fall foul of the inheritance tax threshold, one finance provider is urging them to evaluate what will happen to their estate.
Building society Bradford and Bingley has noted that rising house prices mean that more and more people will find that their estate exceeds the £300,000 bench mark above which IHT applies.
It also states that the Treasury estimates it will reap a record £3.6 billion as a result of the tax this year, compared with £2.9 billion in 2004-05.
The firm suggests that a number of moves, such as setting up gifts to friends or family or setting up trusts, can help to mitigate the impact of the tax.
Andrew Stead, head of wealth at Bradford & Bingley, commented: "Planning what will happen to your estate sounds like a depressing thought, but what is even more depressing is the amount of tax your estate could be subject to if you don’t start planning now."
Recently, Standard Life welcomed a move by HM Revenue and Customs to simplify the IHT reporting process, saying that it represented a "positive step" for taxpayers.
Posted in Inheritance Tax | No Comments »
Thursday, July 26th, 2007
House price growth levelled off in the last month, according to new figures from Nationwide.
Publishing the results of its monthly house price survey today, the building society suggested that the increase in interest rates to six per cent is still a strong possibility, dampening the performance of the market.
Commenting on the figures, Nationwide’s chief economist Fionnuala Earley said: "After surprisingly picking up steam in June, house prices were almost unchanged in July and their underlying trend growth resumed a downward path."
She added that average house prices across the UK now stand at £184,270 – after demonstrating the slowest level of growth since April 2006.
Responding to the news, the Royal Institution of Chartered Surveyors asserted that with interest rates finally impacting upon buyer behaviour, a sluggish period is expected until Christmas – although a decline in prices is not forecast.
Posted in Estate Agency | No Comments »
Wednesday, July 25th, 2007
British homebuyers are placing redecorating ahead of legal and safety considerations when they move into a new property, a new study reveals.
According to the research by AA Legal Services, many new buyers opting to choose curtains (52 per cent) or paint walls (54 per cent) ahead of writing a will or sorting out home insurance during the first three months in their new house.
The report stresses the importance of carrying out legal and safety measures such as writing wills, organising life insurance, changing the electoral roll and ensuring the title deeds are in the correct names, with younger homebuyers most likely to fail to carry out important security and legal checks.
Just seven per cent of people make a will within the first few months of moving in and just 40 per cent of couples who own homes have the property in just one name, according to the poll of more than 2,000 homebuyers.
James Molloy, AA Legal Services head, said: "Although it may seem like a gloomy chore, it is vital to the get legalities sorted out to save complications further down the line.
A recent study by Abbey found that the average Briton will spend a whopping £54,400 moving home during the course of a lifetime, currently more than twice the average national salary. The average cost of moving each time is an estimated £16,000 and it is important to ensure that all steps are taken to ensure there are no legal complications, including those that are not carried out by solicitors.
Posted in Estate Agency | No Comments »
Tuesday, July 24th, 2007
The failure of brokers to offer conveyancing services when selling residential mortgages are costing their industry millions every year.
According to one industry commentator, easier2move, by not referring those taking out mortgages on to solicitors they are missing referral fees which could total as much as £61.8 million.
"Intermediaries are missing out on simple to obtain, profitable revenue opportunities," comments Karen Babington, marketing director at the firm.
"Referrals are not only a great way to earn fees, but also help advisers to offer a more efficient service."
While brokers conducted more than 1.2 million mortgage sales last year, the firm estimates that around three in five do not recommend conveyancing services to those purchasing a new home, IFAOnline reports.
The company states that brokers can not only earn fees through such referrals but can also ease the buying process for consumers, possibly prompting further business in the future.
Posted in Conveyancing | No Comments »
Monday, July 23rd, 2007
The region’s county council has approved the proposals which will see swathes of previously derelict or vacant land revitalised.
Anyone looking at new homes in the area might be interested to read that a regeneration committee has already rubber-stamped the plans, which will build on almost £3 million of investment implemented within the last year, the BBC reports.
Councillor Tom Maginnis, the council’s regeneration committee convener, remarked: "Lanarkshire’s reputation as a top business location is growing and projects like these will go some way in ensuring that our local economies reap the benefits from new investment."
Over the weekend the Independent reported on a visit by the Princess Royal to Cumbernauld, a town in the region, where she marked the opening of a new £40 million shopping centre intended to breathe new life into the area.
Posted in Estate Agency | No Comments »
Friday, July 20th, 2007
A summer road safety campaign in Scotland is seeing all drivers stopped for minor offences breathalysed, according to reports.
It is common practice for all drivers involved in an accident or suspected of being over the limit to take the test, but for a two-week period police officers have been directed to breathalyse all drivers stopped, the Scotsman reports.
Those stopped include drivers speeding, those failing to wear a seatbelt or having a faulty vehicle.
"Police forces across Scotland are always vigilant to drink-driving, but this campaign means you’re more likely than ever to be stopped, breathalysed and prosecuted," said John Vine, Tayside’s chief constable.
The increase in testing has been implemented in response to an increase in figures for drink driving in Scotland over the winter, the BBC has stated.
Penalties for drink driving include a ban of at least 12 months and additional fines or possibly a jail sentence.
Posted in New Legislation | No Comments »
Thursday, July 19th, 2007
The market for houses in the Scottish countryside has continued to expand over the last year, according to new research, reports Country Life.
Over the last 12 months up until June growth for the prime country house market burgeoned by 11.8 per cent.
This figure is marginally above that of the mainstream real estate market across the UK, estate agent Savills claims.
Part of the reason why results have been so positive is because of limited supply during the start of the year, the real estate agent said.
According to the report, the country house market in Scotland resembles that of central London.
The report stated: "The top end of the prime country house market displays similar characteristics to prime central London, with a large pool of wealth chasing a constrained level of stock."
Meanwhile, a recent house price report from Nationwide this month said that overall Scotland "maintained its strong performance in the second quarter".
Posted in Estate Agency | No Comments »
Tuesday, July 17th, 2007
The correct assistance and planning can be instrumental in avoiding the worst of inheritance tax (IHT), one financial advice service has stated.
According to unbiased.co.uk, many people are failing to seek out financial advice on IHT and are thereby allowing HM Revenue and Customs to levy a higher tax charge than is necessary.
David Elms, chief executive of the firm, told the Manchester Evening News: "The IHT liability is paid by beneficiaries, often at a time when they are grieving over a lost friend or family member.
"Without advance tax planning, increasing amounts of IHT will fall into the hands of the taxman."
One of the essential services that an advisor can perform is ensuring that a will is written correctly in order to prevent unnecessary levels of taxation.
In April this year, Scottish Widows released research suggesting that four in ten homeowners (37 per cent) still have an estate liable for IHT after their death, despite the threshold being increased from £285,000 to £300,000.
Posted in Inheritance Tax | No Comments »
