"There's something here that doesn't quite add up"
The great Quincy (MD) would no doubt be a little surprised to see himself quoted in a property newsletter. Its because we're very confused. In our experience agents always ask for the name of the solicitor to give to their clients, clients only recommend individual solicitors to friends, and clients always want to speak directly to that particular person. Therefore, as its clearly the personal approach that most clients want, why are lawyers worrying about large "nameless" firms taking business from them? We are gaining market share by simply communicating regularly with agents and clients, offering full availability and co-operation and the results have been very encouraging. It appears that its simply a case of "going back to basics" - now where have we heard THAT before?
Stamp Duty Land Tax Mitigation - more difficulties for tax avoiders
The BBC has highlighted how Revenue & Customs are taking a more robust line when it comes to home buyers using Stamp Duty Land Tax (SDLT) mitigation schemes to reduce the amount of tax they have to pay. Revenue and Customs are also following up on their commitment to pursue people who have avoided this tax - there are now reports of clients receiving letters from them questioning the amount of tax paid on transactions from several years ago. Lenders are refusing to provide mortgages to people that are using these schemes and it is expected that their number will grow.
Recent case highlights potential problems for unmarried couples
A recent case case has highlighted the problems that can arise when unmarried couples that have bought property together, separate. Patricia Jones and Leonard Kernott, an unmarried couple, had bought a property together but following their separation, Mr Kernott had tried to claim 50% of the share of the value of the property. The court ruled that this was not the case and reinstated the original judgement giving Mr Kernott only 10%. This underlines the importance for unmarried couples to organise both a Will and also a Declaration of Trust when buying together, and all buyers should be aware of the risks of not organising these.
7 Days a week availability
Agents tell us that one of their biggest frustrations is not being able to speak to solicitors out of hours, particularly Saturdays. That's why we now offer 7 days per week telephone availability for agents. This is proving very popular where clients are looking to make a purchase and want to have a quote and paperwork organised immediately. Please email us for contact information.
Wednesday, 23 November 2011
Monday, 21 November 2011
Individual or company - who is your solicitor?
We had a contradiction arise last week that actually raises issues about the future of the choice of legal service suppliers.
We support www.solicitor.info a comparison website aimed at promoting solicitors that offer good service. Last week, a competitor complained that because our company is regulated by the Council of Licensed Conveyancers, we should not be allowed to be on the site. (Our competitor has since retracted his complaint as we employ solicitors and the site is aimed at rating solicitors.)
However, this raises a wider question about how people buy legal services, and whether the recent liberalisation of the legal market will have a large an impact as many traditional lawyers fear it will.
It is clear that many consumers select a solicitor based on a recommendation, the most effective being a friend or work colleague. Indeed, we have found that it is very common for an individual to be named on the reviews on www.solicitor.info which usually includes a reference to a person rather than a company.
In our opinion, this calls into question the importance of company branding and how consumers perceive quality from a legal provider. Do consumers buy legal services from a company or an individual and given that the Law Society is promoting the use of solicitors, how important is the branding of the firm in which those particular solicitors work?
This raises further questions about the value of some of the new branding schemes that have been introduced such as QualitySolicitors where the plan is to subvert the names of even the company by trading under a single banner.
However, the major challenge is that a good solicitors' time is finite. In our opinion, the firms that will succeed will be those that combine the smart use of supportive technology with intelligent support staff, ensuring consistency of support throughout the organisation.
After all, the days of "I'm sorry but the person handling the file is not available and no-one else can help you" should be long gone by now.
We support www.solicitor.info a comparison website aimed at promoting solicitors that offer good service. Last week, a competitor complained that because our company is regulated by the Council of Licensed Conveyancers, we should not be allowed to be on the site. (Our competitor has since retracted his complaint as we employ solicitors and the site is aimed at rating solicitors.)
However, this raises a wider question about how people buy legal services, and whether the recent liberalisation of the legal market will have a large an impact as many traditional lawyers fear it will.
It is clear that many consumers select a solicitor based on a recommendation, the most effective being a friend or work colleague. Indeed, we have found that it is very common for an individual to be named on the reviews on www.solicitor.info which usually includes a reference to a person rather than a company.
In our opinion, this calls into question the importance of company branding and how consumers perceive quality from a legal provider. Do consumers buy legal services from a company or an individual and given that the Law Society is promoting the use of solicitors, how important is the branding of the firm in which those particular solicitors work?
This raises further questions about the value of some of the new branding schemes that have been introduced such as QualitySolicitors where the plan is to subvert the names of even the company by trading under a single banner.
However, the major challenge is that a good solicitors' time is finite. In our opinion, the firms that will succeed will be those that combine the smart use of supportive technology with intelligent support staff, ensuring consistency of support throughout the organisation.
After all, the days of "I'm sorry but the person handling the file is not available and no-one else can help you" should be long gone by now.
Monday, 14 November 2011
Unmarried couples and their rights
We've been working hard to ensure that anyone buying a property in joint names who isn't married is aware of some of the pitfalls that they might endure.
Many people that we speak to are not aware of the legal difference between being married or just living together. Some go so far as assuming that such things as "common-law rights", however, in reality, when things go wrong in a relationship where the couple is not married, then this can present major challenges.
Therefore, we were pleased to see this highlighted in the recent case between Leonard Kernott and Patricia Jones which highlighted some of the problems involved when couples split up.
This case involved a couple that had split up 20 years ago, and Kernott (who left) was then claiming a higher proportion of the value of the property than he was originally granted. The judge decided that even though Kernott had paid the mortgage and much of the costs, he was not entitled to claim the 50% of the value of the property.
We recommend all unmarried couples buying a property should obtain a Declaration of Trust - contact us for more information.
Many people that we speak to are not aware of the legal difference between being married or just living together. Some go so far as assuming that such things as "common-law rights", however, in reality, when things go wrong in a relationship where the couple is not married, then this can present major challenges.
Therefore, we were pleased to see this highlighted in the recent case between Leonard Kernott and Patricia Jones which highlighted some of the problems involved when couples split up.
This case involved a couple that had split up 20 years ago, and Kernott (who left) was then claiming a higher proportion of the value of the property than he was originally granted. The judge decided that even though Kernott had paid the mortgage and much of the costs, he was not entitled to claim the 50% of the value of the property.
We recommend all unmarried couples buying a property should obtain a Declaration of Trust - contact us for more information.
Monday, 7 November 2011
And now the pursuit begins ...
We learned on Friday about a client (not one of ours) who had bought a property three years ago, and had taken advantage of the supposed benefits of avoiding paying Stamp Duty Land Tax (SDLT). This client had received a letter from HMRC warning them that they were investigating the transaction, and even supplied a copy of his tax return to jog his memory.
Now - although HMRC have been promising to take strong action against those avoiding this tax, this is the first time that we have come across an actual case, but we are sure that it won't be the last.
This is why we always say to people who insist that they want to go down this route, if you do want to avoid paying tax, please make sure that you hold this money in your bank account, just in case of unexpected letters such as these.
Our advice continues to be that these SDLT mitigation schemes pose no risk to the suppliers, but all the risk lies with the client and so should be avoided where possible.
Now - although HMRC have been promising to take strong action against those avoiding this tax, this is the first time that we have come across an actual case, but we are sure that it won't be the last.
This is why we always say to people who insist that they want to go down this route, if you do want to avoid paying tax, please make sure that you hold this money in your bank account, just in case of unexpected letters such as these.
Our advice continues to be that these SDLT mitigation schemes pose no risk to the suppliers, but all the risk lies with the client and so should be avoided where possible.
Friday, 28 October 2011
Stamp Duty Land Tax avoidance - now the BBC is on the case
Delighted to see that the BBC has picked up the intiative on the problems that are potentially in store for people trying to avoid paying Stamp Duty Land Tax (SDLT) when buying their property.
As we have been warning, Revenue and Customs (HMRC) are continuing to crack down on this; an HMRC spokesman said: "The schemes rely on an interpretation of law that produces an outcome different from that envisaged when the law was enacted, and that HMRC does not accept."
As we continue to warn our clients, HMRC have confirmed that they are gearing up to challenge the schemes through the courts - all the risk is with the client on this one.
As we have been warning, Revenue and Customs (HMRC) are continuing to crack down on this; an HMRC spokesman said: "The schemes rely on an interpretation of law that produces an outcome different from that envisaged when the law was enacted, and that HMRC does not accept."
As we continue to warn our clients, HMRC have confirmed that they are gearing up to challenge the schemes through the courts - all the risk is with the client on this one.
Wednesday, 19 October 2011
We're not letting this one go
Having just got off the telephone from a buyer seriously considering using a Stamp Duty Land Tax savings scheme, we continue to be surprised by the tactics firms are using to convince people to use them.
In this particular case, the client was told that "a leading political party used such a scheme to save money on buying the Dickens & Jones building in London", so they must be OK. Now, we don't want to cast any aspersions here, but are they serious?
The other problem as clients are now finding out is that many lenders will simply not lend to anyone that is using such a tax savings scheme. The rationale is quite simple - lenders are concerned that the revenue will come after them (and there is no time limit on that) for the outstanding SDLT tax that they didn't pay. This means that the client may potentially be out of pocket and may not be able to keep up the payments on the mortgage. Hence, they wouldn't want to lend to such people.
Simple really, but clients can be influenced by the very attractive proposition so we continue to urge caution.
Oh and yes, our client did decide to instruct us for their purchase because, in their words, the other method "wasn't worth the risk"
In this particular case, the client was told that "a leading political party used such a scheme to save money on buying the Dickens & Jones building in London", so they must be OK. Now, we don't want to cast any aspersions here, but are they serious?
The other problem as clients are now finding out is that many lenders will simply not lend to anyone that is using such a tax savings scheme. The rationale is quite simple - lenders are concerned that the revenue will come after them (and there is no time limit on that) for the outstanding SDLT tax that they didn't pay. This means that the client may potentially be out of pocket and may not be able to keep up the payments on the mortgage. Hence, they wouldn't want to lend to such people.
Simple really, but clients can be influenced by the very attractive proposition so we continue to urge caution.
Oh and yes, our client did decide to instruct us for their purchase because, in their words, the other method "wasn't worth the risk"
Thursday, 6 October 2011
It's October 6th ... and the world hasn't ended
October 6th - the day when the world was due to end for all lawyers trying to earn an honest living from selling their legal wares.
However, it was more of a whimper than a bang, although we were amazed to hear the BBC Radio 4 news announce the change in the law throughout its morning bulletins this morning.
According to the BBC News, from today, supermarkets and other companies will be able to offer legal services and this was going to be of huge benefit to consumers.
Forgive us for being a little sceptical - a quick search on the internet today will reveal companies promising to carry out conveyancing for £99 (plus VAT of course) so is this really an appealing opportunity to "major brands". In reality, it is unlikely that more than just a few companies will be willing to take on the risks associated with such provision.
Financial services are often used as an example of where major firms have made inroads, but the comparisons are not necessarily valid. It is unlikely that legal services will ever be as commoditised as financial services, simply because there's far more involvement required from the client. Buying insurance products is a relatively straightforward process whereas buying a house or organising a Will takes a great deal of time and effort from all parties. For those clients looking for expertise and advice, such an alternative route is unlikely.
Although we've pioneered this new model several years ago, we look forward to seeing how other new firms approach this potential new market, but expect it will be several years before any wholesale changes will come.
However, it was more of a whimper than a bang, although we were amazed to hear the BBC Radio 4 news announce the change in the law throughout its morning bulletins this morning.
According to the BBC News, from today, supermarkets and other companies will be able to offer legal services and this was going to be of huge benefit to consumers.
Forgive us for being a little sceptical - a quick search on the internet today will reveal companies promising to carry out conveyancing for £99 (plus VAT of course) so is this really an appealing opportunity to "major brands". In reality, it is unlikely that more than just a few companies will be willing to take on the risks associated with such provision.
Financial services are often used as an example of where major firms have made inroads, but the comparisons are not necessarily valid. It is unlikely that legal services will ever be as commoditised as financial services, simply because there's far more involvement required from the client. Buying insurance products is a relatively straightforward process whereas buying a house or organising a Will takes a great deal of time and effort from all parties. For those clients looking for expertise and advice, such an alternative route is unlikely.
Although we've pioneered this new model several years ago, we look forward to seeing how other new firms approach this potential new market, but expect it will be several years before any wholesale changes will come.
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