Potential pitfalls await unprepared buyers of newly built homes warns CQS
accredited Butcher Andrews Solicitors.

Home buyers choosing to purchase newly built properties face pitfalls with yet further
complications when buying a property before it is even built or where it is only partly
built, says Butcher Andrews Solicitors in Fakenham.

Butcher Andrews,  which earlier this year secured the Law Society’s Conveyancing
Quality Scheme status, says that the legalities of buying newly built property differ
from buying a second hand property and there are different factors to consider such
as whether the property will be approved as suitable for occupation and whether the
new roads and drains will be built properly.

The warning comes as recent research by Which? shows that more than half of
those homeowners surveyed who had bought a newly built property in the last five
years experienced problems, including delays and unexpected additional costs.

Kit Mordaunt, Partner and Head of the Residential Conveyancing department
said: “Buying a new home requires some additional preparation in advance with your solicitor.
Establishing whether the plans reflect what is registered at the Land Registry and
finding out whether the property complies with all of the planning and building
regulation requirements are particularly important for newly built properties.

“In addition, making sure the contract sets out everything the builder has agreed to
do, such as laying a lawn, installing additional sockets and laying carpets is
important.
“At Butcher Andrews we are familiar with the tighter deadlines, pre-exchange
contract issues, as well as the special procedures including the need for an
additional valuation involved in obtaining a mortgage for a newly built home.”

Butcher Andrews says that a raft of legal issues needs to be checked,
such as planning permission, rights of drainage and water supply, as well as rights to
use all pipes and cables to the property. Your solicitor will also ensure that building
regulations have been adhered to, a special insurance for new homes is obtained
and issues relating to roads on the estate where the property is being built comply
with the Highways Act.

Kit Mordaunt adds: “Buying a newly built house comes with many benefits – no chain,
a brand new home and often appealing finance packages on buying.
However, the downside is that there is more to it than signing on the dotted line.
Getting help from a CQS accredited solicitor such as Butcher Andrews
should be the first port of call when buying a newly built house.”

Butcher Andrews  underwent a rigorous application and assessment by the
national Law Society to become part of CQS initiative, which recognises high quality
in residential conveyancing. CQS has the support of the Council of Mortgage
Lenders, the Building Societies Association, Legal Ombudsman and the Association
of British Insurers. 

Kit Mordaunt

E:  kit@butcherandrews.co.uk
T: 01328 852807

“Staycation” second homes can be legal minefields.

 The popularity of second homes in the UK, which are often used as holiday homes, could expose owners to a “minefield” of risks.

 The popularity of “staycations” – staying in the UK rather than travelling overseas for a holiday – has seen more second homes being used by “staycationers.”

 Statistics from the English Housing Survey: Household Report 2009-10 shows that there are 279,000 second homes in England, but Butcher Andrews Solicitors, which holds the Law Society’s excellence in home buying accolade – the Conveyancing Quality Scheme (CQS), is warning that owners are not always aware of the potential problems of owning a second home.

 Kit Mordaunt, Partner and Head of the Residential Property Department , says: “Second homes are often unoccupied for long periods of time. However, they could become targets for squatters, or there could be legal considerations to take into account when renting them out for short periods to holiday makers, and there are often insurance issues to take into account, not to mention the types of issues that come with buying any home, such as any legal anomalies or liabilities attached to the property.

 ”There are also tax implications for second home owners that need to be considered.

 “It is essential that anyone buying a second home contacts a CQS accredited solicitor such as Butcher Andrews to look at the potential risks and benefits of buying.

 ”Equally, anyone who already owns a second home for their own holiday purposes, but plans to let it be used by family members or others for extended periods could be changing its status as a holiday home without realising.

 ”During off seasons second home owners might look to rent out the property for long periods of time and suddenly you have a landlord and tenant relationship which carries with it a host of additional obligations and liabilities.”

 Butcher Andrews underwent a rigorous application and assessment by the national Law Society to become part of CQS initiative, which recognises high quality in residential conveyancing. CQS has the support of the Council of Mortgage Lenders, the Building Societies Association, Legal Ombudsman and the Association of British Insurers.

  Kit Mordaunt

E:  kit@butcherandrews.co.uk
T: 01328 852807

Buyers must consider worst case scenario when “buddying up” on property ladder

Home-buyers who “buddy up” with a friend or relative in order to afford their first home must factor in all worst case scenarios before buying, says Butcher Andrews Solicitors in Fakenham, Norfolk.

Butcher Andrews Solicitors, which earlier this year secured membership to the Law Society’s prestigious Conveyancing Quality Scheme, which recognises high standards in home-buying, is warning those looking to buy their first home with a friend or relative that there is more to consider. Butcher Andrews  says failing to plan for all eventualities, even death, could leave you in difficulty in future.

Kit Mordaunt, Partner and Head of the Residential Property department,  says: “With home loans less accessible than a few years ago joining up with a friend or relative to buy a home is a good alternative. However, there is much more to consider when buying this way. There is a high possibility that one party to the joint ownership’s circumstances could change, so it is vital to consult your solicitor early on to cater for every possible change in circumstance.

“Sometimes a co-ownership contract might be necessary, but at the very least Butcher Andrews can highlight all the options and possible scenarios to both owners. We can also advise on the type of mortgage which might be suitable and how joint ownership fits into your estate and will. There may also be tax implications that we can advise on.

“Circumstances when buying jointly are more likely to change. If you buy with a friend and they subsequently marry or change jobs they might want to move on and not be tied down anymore by the property they jointly own with you. Or if you buy with a family member who doesn’t reside there, but who dies and leaves their share to someone else you may need to factor that into any initial agreement.

“It does sound daunting, but far from put anyone off it is important that you seek legal advice on joint ownership. When it is difficult, as now, to raise a deposit and secure a mortgage on your own buddying up is an excellent way to get a foot on the property ladder, but it needs to be done with legal advice from a CQS accredited firm.”

Butcher Andrews Solicitors underwent a rigorous application and assessment by the national Law Society to become part of CQS initiative, which recognises high quality in residential conveyancing. CQS has the support of the Council of Mortgage Lenders, the Building Societies Association, Legal Ombudsman and the Association of British Insurers.

For more information please contact Kit Mordaunt on 01328 820807 or email kit@butcherandrews.co.uk

 Agency Workers Regulations 2010.

These Regulations come into force on October 1^st 2011. The main points for employers to be concerned with are that agency workers with 12 weeks’ consecutive engagement are given the same rights to pay, benefits, rest periods and holidays as are given to permanent workers.

However, an agency who places a worker with another business is responsible for managing the work time of that worker. There are special rules for young workers and night workers.

Individuals who obtain direct employment with an employer through an employment agency do not have the protection of the Regulations.

Guidance on their effects can obtained from the Department of Business, Innovation and Skills but for further details please contact

Employees and workers have employment rights that are not accorded to the self employed or sub contractors.

The Supreme Court has recently handed down a decision confirming the proper tests to apply where there is an argument about employment status: whether someone is, legally, an employee or a worker.

In this case, clauses in the various written contracts that existed between the employer and the worker stated repeatedly that the latter were self employed or ‘sub contractors’. The clauses stated that the ‘sub-contractors’ would be responsible for their own tax and National Insurance and that it was the intention of both parties that the ‘sub-contractors’ should not become employees.

However, the findings of fact in that case indicated that the wording of the contracts was not definitive. Amongst other things, the Supreme Court found that the employer had a sufficient degree of control over the work being performed and who should perform it for the relationship to be one of employer and worker. Accordingly, the workers could claim the right to be paid in line with the National Minimum Wage Regulations 1999 and statutory paid holiday under the Working Time Regulations 1998.

Employers should not be tempted to insert substitution clauses, or clauses denying any obligation to accept or provide work, in employment contracts in an attempt to show that there is no employment relationship. This is because the Employment Tribunal will adopt a test that focuses on the reality of the situation and not simply on the documents, particularly where they do not reflect that reality.

The written contract is only the starting point: it will be trumped by the real situation.

For more information contact:-

Jennie BorgnisT: 01328 852830
E: jennie@butcherandrews.co.uk

 Butcher Andrews Solicitors secures Law Society’s new quality mark

Butcher Andrews Solicitors in Fakenham & Holt has secured membership of the Law Society’s Conveyancing Quality Scheme – the mark of excellence for the home buying process.

Butcher Andrews Solicitors underwent rigorous assessment by the Law Society in order to secure CQS status, which marks the firm out as meeting high standards in the residential conveyancing process.

Law Society President Linda Lee said that the Law Society introduced CQS to help to recognise high standards in the home buying process.

“CQS improves efficiency with common, consistent standards and service levels and enables consumers to recognise practices that provide a quality residential conveyancing service.

“Buying a home is one of the largest purchases anyone will make in their lifetime, so it is essential that it is done to the highest standard by a solicitor. There are many different conveyancing service providers out there, making it difficult for home buyers to identify those which can ensure a safe and efficient level of service.”

Anne Kirby says: “Butcher Andrews is delighted to have secured CQS status. It is recognition of the high standards we provide to our residential property clients and is a signal to future home buyers of the excellent service level we provide at what is often a stressful time for many people.

The overall beneficiaries will be clients who use Butcher Andrews Solicitors when buying a home. They will receive a reliable, efficient service as recognised by the CQS standard.”

The scheme requires practices to undergo a strict assessment, compulsory training, self reporting, random audits and annual reviews in order to maintain CQS status. It is open only to members of the Law Society and to those who meet the demanding standards the scheme will set and has the support of the Council of Mortgage Lenders, the Building Societies Association, Legal Ombudsman and the Association of British Insurers.

For more information on the Law Society’s Conveyancing Quality Scheme visit

www.lawsociety.org.uk/cqs

Or contact the CQS Unit on 020 7316 5550 or CQS@lawsociety.org.uk

Indeed, it has been reported that at least one large insurance company bases its business model on the payment of referral fees.  This does not sit well with the insurance industry’s and media’s claim that the apparent increase in personal injury claims is the main reason why motor insurance premiums have risen so markedly.

What is often lost in these debates is the interests of the client.

The often used phrase ‘compensation culture’ has negative overtones and suggests that it is somehow wrong to make a claim.  Insurance companies are, for commercial reasons and perhaps understandably, keen to promote this view.  However, if someone has been involved in an accident that is not his or her fault, and has been injured, he or she is entitled to be properly compensated. 

Of course, fraudulent claims should be treated with the contempt that they deserve.  However, people who have a genuine claim should not be put off seeking financial redress  and are entitled to expect compensation that properly reflects their level of suffering and their financial loss.

It is commonplace now for people injured in road traffic accidents to be contacted by any number of people professing to be able to act in their best interests.  This may be a trap for the unwary.  It is often the case that the lawyer acting for the injured person is being paid by the same insurance company that acts for the wrongdoer – arguably a conflict of interest.

 In many instances insurance companies can pick and choose which lawyer they send work to, and dictate how much they charge.  In these circumstances, the lawyer may be under severe pressure to settle a claim quickly and for a lower sum than the client deserves.

There are good arguments for and against law firms, and indeed insurance companies themselves, paying referral fees: they can be a simple marketing tool but they can also distort the market and reduce the range of choices available to the client. 

Butcher Andrews is completely independent, and does not pay referral fees to anyone.  Consequently, our solicitors are able to concentrate entirely on the interests of our clients and are not obliged to consider the interests of anyone else.

For more information on the above or for advice on No win – No fee agreements, please contact our Personal Injury Team

Click below for our flyer

PI claims New flyer 2011 pdf