Archive for October, 2007
Tuesday, October 30th, 2007
Next year will see an increase in the number of home repossessions as house prices increase further, the Council of Mortgage Lenders (CML) has warned.
However, the council only forecasts a one per cent increase in house prices in 2008.
Other predictions stemming from the research include an increase in the number of repossessions to 45,000 (0.38 per cent of all mortgages) from its projected total for all of 2007 at 30,000 (0.25 per cent of all mortgages).
Director general of the CML Michael Coogan commented: "We now expect a slower mortgage market next year, although by no means a stagnant one. Most borrowers will cope, but not everyone will escape unharmed from the effects of a slower market."
Consumers may wish to seek legal advice to determine their position in the eyes of the law regarding repossession should they find themselves struggling with mortgage repayments.
In recent weeks, the CML noted a 12 per cent fall in gross mortgage lending in September compared with August.
Posted in Estate Agency | No Comments »
Friday, October 26th, 2007
Thousands of unresolved Scottish legal cases are due to be revived and many more may be taken up following a ruling by the House of Lords.
Law lords have stated that anyone living in Scotland can pursue a human rights case dating back to 1999.
In light of the ruling, consumers wishing to make a case regarding infringement of their rights may wish to seek legal advice to gain a better understanding of the details of their standing in the eyes of the law.
John Scott, spokesperson for the Law Society of Scotland, told the Guardian that the ruling means more such cases could come to court, such as claims regarding the ill-treatment of the elderly in care homes.
Due to the decision, former prisoners and current inmates who endured "slopping out" in their cells due to inadequate sanitation in prisons are now able to sue the Scottish prison service and are expected to win some £70 million in compensation.
The Law Lords is the highest court of appeal in the UK.
Posted in New Legislation | No Comments »
Thursday, October 25th, 2007
Work on a number of office facilities is due to begin on a Glasgow commercial site, it has been announced.
Four office structures will be built on Bothwell Bridge Business Park.
Alistair Reid, spokesperson for real-estate firm Jones Lang LaSalle, commented: "The second phase of development has been made possible due to the success of the first phase at Bothwell Bridge Business Park, which has seen over 14,000 sq ft of office space sold or leased over the past year.
Consumers intending to erect any structures for any reason may be advised to seek legal advice regarding regulations and restrictions their planned buildings may be subject to.
Work on the four new office pavilions will begin this month and are planned to be completed early next year.
In related news, the headquarters of Scottish Natural Heritage, Great Glen House, was recently awarded the title of best corporate workplace in the UK by the British Council for Offices.
Posted in Commercial Law | No Comments »
Tuesday, October 23rd, 2007
It is surprising that the escalating cost of stamp duty was not examined in chancellor Alistair Darling’s pre-Budget report.
Such is the opinion of Stroud & Swindon Building Society, which states that it is particularly shocked since the inheritance tax (IHT) threshold was raised in response to rises in property prices.
The firm reports that the average amount of stamp duty paid on a home in the UK has increased at some five times the rate of average salaries, according to IFAonline.co.uk.
Paul Chafer, sales and marketing director at the firm, comments that nil-rate threshold for stamp duty should be raised from its current figure of £125,000 to something closer to current house prices, such as £200,000.
"We call on the government to raise the stamp duty threshold in order to take into account the astronomical house price growth that has occurred over the past decade," he adds.
Stamp duty land tax is currently payable at one per cent for any property purchased for more than £125,000 up to four per cent for a property purchased for more than £500,001.
Posted in Inheritance Tax | No Comments »
Monday, October 22nd, 2007
The wealthy may benefit from planning for inheritance tax (IHT), it has been stated.
Since the nil-rate band for IHT for civil partners and married couples was raised to £600,000, fewer people may find that they have to make substantial provisions for dealing with IHT for the time being, said Nick Hughes of accountancy practice BDO Stoy Hayward.
However, he told the Guardian that wealthier individuals may find that they can benefit from seeking legal advice and setting up trusts.
Couples with assets that are increasing in value at a rate faster than inflation may find they are more financially secure if they set up trusts.
The publication also notes that married couples can create lifetime versions of nil-rate band trusts, putting in assets equal in value to the current IHT allowance – £300,000 every seven years – but states that good professional advice is needed.
In his pre-Budget report, chancellor of the exchequer Alistair Darling announced that the threshold for IHT will increase to £700,000 by 2010.
Posted in Inheritance Tax | No Comments »
Thursday, October 18th, 2007
The future of Scotland’s free health care for the elderly was thrown into disarray following a judge’s ruling, it has emerged.
In a landmark decision, Lord Macphail declared that councils do not have to pay care costs for pensioners who had made their own arrangements in private nursing homes.
The judgement was on a dispute over the provision of free personal care to a Helensburgh man by Argyll and Bute council between the local authority and the Public Services Ombudsman.
It removes the requirement for local councils to pay the £145 weekly grant for personal care to elderly people who pay for their board in residential care homes, the Herald asserts.
Recent figures suggests that this issue may affect between 9,000 and 9,500 consumers.
Scotland introduced free personal care for those over the age of 65 – who live at home or in care homes – assessed as requiring such attention in July 2002.
Posted in New Legislation | No Comments »
Wednesday, October 17th, 2007
Recent research has indicated that one in ten retired people cut back old holidays, socialising, clothing and even heating costs as they worry about bills.
A study by Norwich Union has also indicated that two-thirds of people over the age of 60 survive on less than £10,000 per year.
The survey suggested that of all the regions in the UK, Scotland ranked last in the list of those most likely to make changes to their lifestyle to finance their retirement with only 26 per cent of respondents indicating that they would do so.
Dominic Fraser-Smith, group product manager at Norwich Union Post-Retirement Products stated that senior years should be enjoyed by older people and they should not have to resort to methods such as cutting down on heating.
Mr Fraser-Smith identified equity release as "an option those approaching retirement should consider as part of their retirement planning".
It may be advisable for consumers to seek legal advice before carrying out any form of significant financial transaction – such as equity release – to ensure that they are fully aware of any possible ramifications the process might involve.
Last month, research by Prudential indicated that people over the age of 65 in Scotland have some £41.6 billion of property equity.
Posted in Wills and Executries | No Comments »
Monday, October 15th, 2007
The belief in common-law marriage is a "massive misnomer" held by a large number of people, according to a financial planning company.
Kelvin Lillywhite, financial consultant with Best Advice, stated that a large number of the population think that if they live together for a number of years, they are in a common-law marriage.
He added that his understanding was that such a practice was discontinued "in the Middle Ages."
Mr Lillywhite added that marriage clarifies a range of topics such as benefits that individuals are entitled to with regard to pensions.
"There are a lot of pension schemes that will give benefits to spouses. They may not pay that to a long-term partner," he said.
Figures released by the Office for National Statistics released figures last week which indicated that the number of unmarried but cohabiting couples has increased by some 65 per cent in the last ten years.
Posted in Family Law | No Comments »
Friday, October 12th, 2007
As many as a million couples may have to rewrite their wills due to changes in inheritance tax (IHT) laws made by Alistair Darling, it has been reported.
Couples who have written wills that set up a trust fund in order to avoid paying the tax may have to redraft the legal documents as the chancellor’s decision to double the IHT threshold for couples supersedes such provisions, according to the Daily Telegraph.
Mike Warburton, tax partner at chartered accountancy firm Grant Thornton, told the publication that he thought there will be "hundreds of thousands" of people who may have to rewrite their wills to take the IHT changes into account.
"They will have to go to their lawyers to sort it out," he said.
In his pre-Budget report earlier this week, chancellor Alistair Darling announced that the IHT nil rate band for couples will be doubled from its current level of £300,000, meaning that couples are able to pass on £600,000 worth of assets to beneficiaries without being taxed.
Posted in Inheritance Tax | No Comments »
Thursday, October 11th, 2007
Rules on inheritance tax (IHT) are of huge benefit for married couples – especially when taking into consideration Alistair Darling’s pre-Budget report earlier this week – it has been asserted.
A firm of independent financial advisers (IFA) has stated that while married couples could already use will trust planning to let a surviving spouse inherit the nil rate band from their husband or wife with regard to IHT, the government’s announcement means that such couples no longer have to actively do this.
Financial consultant with Best Advice Financial Planning Kelvin Lillywhite asserted that other benefits included ‘bed and spousing’ available on capital gains tax – meaning that individuals can transfer assets to their partner without liability to capital gains tax.
In the 2007 pre-Budget report and Comprehensive Spending Review, chancellor Alistair Darling stated that if a person’s tax-free allowance is not used on their death, it can be transferred to their surviving civil partner or spouse so that they can benefit from double the tax-free allowance.
Posted in Inheritance Tax | No Comments »
