December 14th, 2018
You can own a home in different ways. Normally, you can buy your home on a freehold or leasehold basis.
- Freehold means you own your home and the land it’s built on.
- If you are buying a home on a leasehold basis, you will own the home for a period of time. At the end of the period, the property will return to the landlord, sometimes known as the freeholder, unless you decide to renew the lease. Most flats are leasehold. But some houses are leasehold, too.
This article looks at the financial implications, particularly ground rent, of buying a leasehold home in England and Wales,
Is a leasehold purchase more expensive?
You might meet with extra costs if you buy a leasehold property, for example management company fees and additional legal fees.
There might also be regular ongoing costs. For example, you might pay a service charge to maintain the property. It can be difficult to forecast how much those charges will increase over time.
You will also need to pay ground rent, a fee to the landlord. If you don’t pay the ground rent charge, the landlord might repossess your property.
What do I need to know about ground rent?
If you are thinking about buying a leasehold flat or house, make sure you can afford the ground rent – now and in the future. Ground rent can go up over time – a little or a lot. Ground rent has been known to double every 10 years, quickly becoming unaffordable. Your lawyer should explain ground rent to you, including how quickly it will increase and by how much.
The Government is looking at changes to the law on ground rent. Meanwhile, if you are thinking of buying a leasehold property, make sure you
- can afford to pay the regular ground rent on top of your other costs
- understand how much the ground rent will increase, and how quickly
- will be able to afford the regular ground rent charges in the future.
Your lawyer should tell you about the type of property you are buying and the charges you will pay.
What if I’ve already bought a leasehold home?
If you’ve already bought a leasehold property, your lawyer should have explained what leasehold means and the ground rent charges you will pay. Contact them if they didn’t or if you have any questions. If you have any concerns about the information that was provided to you, see how to complain about your lawyer.
October 15th, 2018
Confidentiality clauses (also known as non-disclosure agreements, or ‘gagging’ clauses) are often found in employment contracts for senior executives, or in other commercial contracts.
They are also common in settlement agreements that bring employment to an end if there has been a dispute between you and your employer. They are usually in place to protect legitimate business interests.
You might have heard concerns in the news that confidentiality clauses are being misused to cover up potential crimes such as harassment.
How would you feel about signing a confidentiality clause? What if you had been harassed at work and your employer offered you a settlement on the condition you signed one?
It’s good to know you have got rights in these situations…and also that any lawyers involved have got responsibilities.
Here are our top 4 things to know before you sign a confidentiality clause:
- they can’t be used to try and cover up potential crimes or to stop you or someone else reporting them to the police
- they can’t be used to stop you ‘whistleblowing’ and giving information to public authorities or certain regulators
- if you are asked to sign a settlement agreement at work, your employer should make sure you have access to independent advice from someone like a lawyer or a trade union – for example ACAS can help you negotiate these settlements
- you have the right to be given a copy of the agreement in writing
So – make sure you get advice about what you’re signing first, always ask for a copy, and remember that it can’t stop you speaking up about a criminal act or whistleblowing.
September 20th, 2018
Looking to make a holiday sickness claim? Think you might need legal help?
Holiday companies are cracking down on claims that are made dishonestly and you could go to prison if you make a claim that is not true. But, if you have a genuine claim, you might be wondering how to find a solicitor with the right skills to help you.
To search for a firm of solicitors by name, town or area of law (for holiday sickness expertise look under personal injury) visit the Law Society’s site, or to search for a Chartered Legal Executive, visit the CILEx Regulation site.
If you’re not sure whether you need a legal professional, check out what we’ve said here about sources of legal advice.
Once you’ve found a firm that you think might be able to help, ask them these questions before giving them your case.
Do I have a claim?
You need to give all the facts and background to the lawyer so that they can help you.
You should deal directly with the lawyer yourself. Don’t let anyone else deal with the lawyer for you, unless you have asked them to.
How long will the case take?
How long the case is going to take will depend on the type of case it is.
The more information you give your lawyer, and the faster you respond to their requests, the earlier your case will be resolved.
How much will it cost?
Your solicitor must talk with you about costs and payment arrangements that suit you.
Legal aid is not usually available for legal advice about personal injury. But ask your solicitor whether you should apply for legal aid. After asking you about your legal problem and your personal finances, your solicitor should be able to tell you whether you can get legal aid (at no cost to you). Remember that, even if you do get legal aid, it may not cover all your costs.
If you can’t get legal aid, your solicitor should explain other options. For example, perhaps you have household or holiday insurance which covers legal costs. Or a “no win, no fee” agreement might be right for you.
There are two types of “no win, no fee” cases: conditional fee agreements (CFAs) and damages-based agreements (DBAs), sometimes called contingency fees. In CFA and DBA cases, your solicitor only gets paid if they win your case.
What happens if I lose my claim?
Depending on the fee arrangements you have signed up to, you might need to pay both your own legal costs and those of the other side if you lose the case.
You might be able to get insurance to protect yourself from having to pay some legal costs. This is called “after the event” (ATE) insurance because you can buy a policy after the event that triggers the legal case. Your ATE insurer pays the other side’s costs if you lose the case. An ATE policy may also cover other expenses. Your solicitor will talk to you about the benefits of ATE insurance and what it includes.
Keep in mind that some lawyers get a commission for arranging insurance. Your lawyer must tell you if they will get a commission for arranging ATE insurance for you.
What costs do I have to pay if the claim doesn’t go ahead?
The costs you pay if your claim doesn’t go ahead depend on what you have agreed with your lawyer.
If you withdraw your claim, you may still need to pay your legal services professional for their work on the case and other costs. If the firm says they no longer want you as a client – for example, because the medical evidence doesn’t support your claim – you may still need to pay the firm. At your first meeting with the lawyer, they will explain what you will need to pay if this happens.
If you lie about events, your lawyer has the right to refuse to act for you. You will still need to pay them for work they have dones on your case.
How might the other side respond to my claim? Will they challenge my evidence?
In 2013, the rules about claims were changed to encourage early settlement – when the two sides come to an agreement without going to court.
If the other side has evidence that contradicts your evidence, or if they believe your evidence is lacking in some other way, they are less likely to settle your claim. And they may well launch a series of long and complex challenges to your claim. Your solicitor will tell you what to expect and how to respond.
Remember that if you tell the court something that is proved to be untrue, you may well be prosecuted. You could even go to prison.
What are my chances of success?
Your lawyer should explain how likely it is your claim will succeed. They will use the information you have given them to assess your chance of success.
Remember that you and your lawyer can be prosecuted if you make a fraudulent claim.
Will a solicitor or a paralegal handle my case?
In many firms, lawyers and paralegals work closely together on cases. A solicitor is someone who is qualified to give legal advice and handle your case by taking it to court and speaking in court on your behalf. In some cases, they may ask barristers to speak in court on your behalf.
A paralegal might be involved in your case to help the solicitor prepare and gather information about your claim.
Find out more about what barristers, paralegals and other types of lawyers do.