Property Investors

For many leasehold flat owners and prospective buyers, extending a lease has long been complicated. One key challenge has been the so-called "Two-Year Rule," which requires that flat owners have been registered for two years before they can serve a formal Statutory Notice to extend their lease. However, from 31 January 2025, this cumbersome rule ceased to apply, thanks to the Leasehold and Freehold Reform Act 2024. In this blog, we explore what this change means for buyers, sellers, and advisors and why, despite the simplification, the length of a lease remains a critical consideration. What Was the Two-Year [...]

Answer with care – the fateful case of the moths in the wardrobe As we know, during the process of buying and selling a house the Seller is required to answer standard questionnaires. A case made the headlines this week which emphasises the great deal of care that needs to be taken when answering those questions. A misrepresentation is a false statement of fact made by one party to another.  If, during negotiations for the purchase of a property, a Seller makes a false statement which the Buyer relies on – even in part – when deciding whether or [...]

The Building Safety Act 2022 (the “Act”) is a landmark piece of legislation in the UK, introduced to address the systemic issues exposed by the Grenfell Tower tragedy in 2017. The Act aims to improve building safety standards and ensure accountability across the construction and property management sectors. For buyers, whether purchasing a new build or an existing property, understanding the implications of this Act is crucial. The criteria which must be met for a leaseholder to benefit from the protections created by the Act are as follows: The lease must be for a single dwelling within a building [...]

The Essential Guide to Understanding Your Auction Legal Pack Buying a property at auction offers great deals and unique opportunities, however there is also the element of risk, so understanding the auction legal pack is the key to you being well informed before placing a bid on a property. As you enter into a binding contract the moment the hammer falls, and there’s no going back, it is also especially important to carefully go through each component of the legal pack, keeping an eye out for any quirks to avoid surprises later down the line. Here at Attwells, our [...]

Budget Update From Our Recent Property Recruit, Solicitor Kelsey Greenwood-Penny The first Labour Government Budget in 14 years was delivered as part of a historic speech given by Chancellor Rachel Reeves on Wednesday, but what exactly does this mean for the property market? The announcements can be divided into three parts as follows: Stamp Duty Land Tax (SDLT) SDLT is a tax payable when purchasing property. The amount of tax is determined by the value of the property and how many properties are owned. The changes mean that if you are purchasing a second property, the SDLT surcharge applicable [...]

Earn out Provision disputes in Share Purchase Agreements Earn-outs in Share Purchase Agreements (SPAs) are payment structures tied to the future performance of the target company. They allow buyers and sellers to share future business risks and benefits, aligning both parties' interests by rewarding the seller if the business performs well post-sale. Here's a closer look at earn-outs and ways to manage common disputes arising from them. Earn-out Provisions Earn-outs are commonly used when the sellers remain involved in the business, often as directors or key employees, after the sale. They are especially useful when the buyer and seller [...]

Property joint ventures, while offering several advantages, can be fraught with potential pitfalls. The case of Baldudak v Matteo provides a clear illustration of the complexities and challenges that can arise, particularly concerning ownership and financial contributions in joint ventures. A property was jointly owned by Matteo and Baldudak as individuals. Baldudak argued that since he had contributed the entire price for the property he was entitled to be sole owner whereas Matteo argued it was the intention of the joint venture that the property was owned equally by them in 50:50 shares. The argument that Baldudak made that [...]

Share Price Agreements are significant documents signed by both parties that lay out the information regarding the private purchase and sale of shares in a company and the mechanics of how such a sale would work. Within these agreements, there is a list of promises made by the seller about the information provided regarding the company; these are called warranties. A breach of warranty occurs when the Seller's promises are found to be false or inaccurate. This could happen either before the company's sale or after completion. Breaches of Warranty Claims could include the seller making a false statement [...]

Many landlords have found themselves pushed into higher rate tax bands as well as also seeing a significant increase in cost. It has been shown that transferring property into a company can be far more cost-effective. As an individual you would pay income tax on your rental income. However, if you own the property through a company you would not need to pay income tax. You would pay corporate tax instead. Businesses pay corporation tax of 25% for company profits, when making more than £250,000 profit. As an individual, you would be paying the higher rate of 40%. It [...]