Lifetime Individual Savings Accounts (LISAs) for First Time Residential Purchases

We are often asked by our clients if we can assist them if they have a Lifetime Individual Savings Account ( a ‘LISA’) and whether they can use the funds held in a LISA for purchasing a property. The answer to whether we can assist is ‘yes’ but the answer to whether the funds can be used in a purchase transaction depend on a number of factors.

As a bit of background information, a LISA can be opened by anyone who is between 18 and 39 years of age. A person can contribute up to £4,000 a year into the LISA, until the person is 50 years of age. The government will add a 25% bonus (up to a maximum of £1,000 per year) to those savings. You can have stocks, shares, or cash in a LISA.

The funds held in a LISA can be withdrawn at anytime, however, the funds can only be withdrawn without incurring a 25% penalty in certain circumstances. These circumstances include a first time residential purchase where some additional conditions are met.

For a first time residential purchase, the funds in a LISA can be used without deduction where the funds are being put towards the purchase price, the purchase price of the property is no more than £450,000.00, the amount withdrawn is no greater than the purchase price of the property, you will live in the property as your primary residence, and the property is purchased with a mortgage (not a buy to let mortgage), and the first payment into the Lifetime ISA was made at least 12 months ago.

There are additional forms and declarations that need to be completed, both by you and by your solicitor, so it is wise to advise your solicitor that you have a LISA and intend to use the funds early in your transaction.

Please contact us if you require any further information regarding the above at enquiries@adams-harrison.co.uk

Whitney Jacque, Solicitor

Congratulations to Kelsey Ling

Congratulations to Kelsey Ling our junior secretary who had completed her apprenticeship with us and is now working in the Family Department. 

Passing this latest Pitmans test is another feather to her cap.

Pitman Certificate for Kelsey Ling of Adams Harrison

Lease Renewals and Other Business Renewals in the Current Market

With most commercial leases containing upwards only rent review clauses, the renewal of the lease is often the only opportunity available to a tenant to reduce the rent.

Unlike rent review clauses which are almost inevitably drafted on up an “upwards only” basis, a tenant who has a right to claim a new lease at the end of its contractual term, has a right to claim that the lease on the same terms as the existing lease except as to rent, which is to be a market rent.

The current state of the commercial property market means that many tenants are securing renewals at significantly reduced rents. How much a reduction will depend on the date of the last review, the location of the property and of course the relative bargaining skills of the landlord’s and the tenant’s surveyors instructed on the review.

When approaching a lease renewal, landlords and tenants should seek the advice of both their solicitors and surveyors at the earliest opportunity.

The landlord should consider whether it is in his interest to trigger renewal procedures or to leave these in the hands of the tenant and similarly the tenant will need to consider whether it should trigger renewal procedures or just let the lease continue. This decision is often difficult for a landlord who may have to consider whether he wants the security of income offered by a long lease, even if renewal means he suffers a substantial reduction in income.

The tenant will need to consider whether it is in his interest to commit himself to the costly process of renewing his lease or, particularly if he only has short term requirement to allow the lease to continue, albeit at an inflated rent.

When considering these issues, a tenant can be comforted by knowing that he is not committed to taking a new lease by either the landlord instigating or the tenant instigating the renewal procedures. On the other hand a landlord needs to be aware that if the tenant, who has a right to a new lease under the Landlord and Tenant Act 1954, requires such a new lease, then as long as that tenant meets all the statutory time limits he will obtain a new lease unless the landlord can prove one of the statute grounds of opposition.
If the landlord wishes to recover possession of premises and oppose the tenant’s claim to a new lease, the landlord should seek the early advice of his solicitor about the available grounds of opposition, and have the basis of his case prepared, before he triggers the renewal procedures.

At Adams Harrison we have had a considerable experience in advising both landlords and tenants on business lease renewals, both on a contested and an un-contested basis and if you require advice or guidance you should contact Rhodri Rees at Haverhill on r.rees@adams-harrison.co.uk or Richard Booth at Saffron Walden on r.booth@adams-harrison.co.uk

 

Inheritance Tax and The New Residential Allowance

The Inheritance Tax Allowance is still currently £325,000.00 per person. However in April 2017 a new allowance was introduced called the Residential Nil Rate Band. This allowance is currently £125,000.00 per person reaching the maximum allowance of £175,000.00 by the tax year 2020/2021.

If an estate is left to a spouse or civil partner then there is no inheritance tax payable because of spouse exemption. Therefore the allowance can transfer to the surviving spouse’s estate. On the death of the surviving spouse/civil partner his or her estate will benefit from an allowance of £325,000.00 plus £175,000.00 (if the death is after 2020) plus the transferable nil rate band and the transferable residential nil rate band which were not previously used of the same amount. This will give a combined allowance of £1,000,000.00 before inheritance tax is payable.

There are certain criteria required to be eligible for the Residential Nil Rate Band Allowance and Tapering Relief for estates of a certain value

For more information please contact our private client department.

Love is in the air at the Sawston office

Love is in the air at the Sawston office – two engagements in a matter of months:-

Paige Doran and Fiancé Aaron

Paige Doran and Fiancé Aaron

 

Paige Doran secretary to Lisa Thornhill got engaged on 27th December to fiancé Aaron in a surprise engagement on 27th December in Paris.

Cazz Rice and Fiancé Gary

Cazz Rice and Fiancé Gary

 

Cazz Rice, secretary to Rebecca Dedman got engaged to fiancé Gary on Tuesday 2nd April – again a complete surprise on their 2 year anniversary.

 

We wish them all the best for their future lives together

Criminal Injuries Compensation Authority Review Announced

At the end of last year the Justice Minister announced a review of the Criminal Injuries Compensation Authority (CICA) together with a full consultation on the reform proposals.

A CICA claim allows persons who have been physically or mentally injured because they were the victim of a violent crime in England, Scotland or Wales. Compensation can offer a public acknowledgement of harm suffered by victims of violent crime who have been unable to seek compensation by other means.

In 2017/18 CICA made decisions on over 40,000 applications and paid out approximately £154 million in compensation. The review will consider the scope of the scheme, eligibility rules, decision making processes and the value of awards. The reform proposals are due to be published in 2019 and updates will appear once these have been announced.

If you have suffered an injury that was not your fault then please contact our Personal Injury department to discuss your accident.

Red Nose Day 2019

Thank you to everyone that took part either baking, providing or eating cakes and treats for Red Nose Day on Friday.

You raised £59.00 for Comic Relief.

Becky

Contentious Probate; 25 Years Not Too Late To Bring A Claim.

Chief Master Marsh has given judgment in the case of Bhusate v Patel & others permitting a widower to bring a claim under the Inheritance (Provision for Family and Dependants) Act 1975 (“the Act”) 25 years and nine months after the deadline to do so.

Ordinarily a claim under the Act must be brought within six months from the Grant of Probate or Letter of Administration. However, the Act does state at section 4 that with permission of the court a claim can be brought out of time. Prior to this case permission had never been sought for pursuing a claim for anything like this period of 25 years.

It was very relevant to the application that the Claimant in this case could only speak basic and broken English, and could read very little, despite having lived in the UK for over 38 years. It is also relevant that as the family had been unable to agree matters in relation to the sale of the deceased’s property that by the time this matter was heard the property had increased substantially in value. Following Mr Bhusate’s death intestate (without a will) no one had properly administered the estate. It was successfully argued that it is open to a claimant to bring a claim out of time when there was no claim at an earlier date.

The Court was satisfied in this case that there were‘compelling reasons’ why it was right and proper that the court should exercise its discretion in her favour in allowing a claim significantly out of time.

It was relevant that if Mrs Bhusate had not been permitted to proceed with her claim she would have been left with no remedy at all and no benefit from her husband’s estate, and would effectively be left homeless.

Should you require advice about any claim you may have in relation to a deceased’s estate then please contact us for an appointment.

 

Jenny Carpenter
Partner
Contentious Probate Litigation Solicitor

Lasting Power of Attorney (LPA)

A Lasting Power of Attorney (LPA) is a legal document which allows for nominated people (attorneys) to make decisions and act on your behalf. There are two types of LPA: Health & Welfare and Property & Financial Affairs. These have to be separate documents and cannot be amalgamated even if you choose to have the same people act in both.

If you do not have an LPA and later lose the capacity to make decisions for yourself your family would have to use the expensive route of applying for a Deputyship Order at the Court of Protection to take control of your finances.

A Health & Welfare LPA allows for your attorneys to make decisions about what medical treatment you receive, where you live, your daily routine, but most importantly decisions about life sustaining treatment. You can include preferences in the LPA to guide your attorneys.

A Property & Financial Affairs LPA appoints attorneys to handle your finances and property. You can chose to have this particular type of LPA come into effect as soon as it has been registered so that you and your appointed attorneys can work together to organize your finances while you still have mental capacity and then once you have lost mental capacity to hand over complete control.

You are able to choose whoever you wish to act as your attorney as long as you believe that should you lose mental capacity and become unable to make decisions alone that the person you chose will act according to your wishes and in your best interest. You can also appoint replacement attorneys so that should your first choice of attorney be unable to act they can take over.

You do need a Certificate Provider who certifies that you have the relevant mental capacity to make the LPA and that no one is forcing you to do so.

An LPA is an incredibly important document as it enables someone to ensure that your health and welfare and property and financial affairs will always be taken care of even if you yourself are unable to do so.

If you require advice in relation to creating an LPA, contact a member of Adams Harrison’s Private Client Department for expert and professional advice.

Sawston Fun Run 2019

Adams Harrison are proud to be are one of the sponsors of the forthcoming 2019 Sawston Fun Run and Walk which will be taking place on Sunday 12th May 2019.

This event has been running every year since 1986 and we have supported and sponsored the event since taking over the Sawston office from Webb & Partners, who had supported and sponsored the event from its outset in 1986.

Over the years a total of £456,000 has been donated to local charities and organisations.

If you would like to register to take part please click on the image below.

Sawston Fun Run 2019