Solicitor Sara Butt

Break Clauses in Leases – What do they do?

/ , , Solicitor/ /by

Break Clauses in Leases – What do they do?

In leases, break clauses serve as crucial provisions that provide flexibility for both landlords and tenants. These clauses allow either party to terminate the lease before the expiration of the fixed term, subject to certain conditions and notice requirements.

Break clauses are regulated by specific laws and have implications that both parties should carefully consider. This article aims to shed light on the key aspects of break clauses in leases, outlining their effects, considerations for landlords and tenants, and the importance of seeking legal advice when exercising them. Break clauses can be included in both residential and commercial leases, but this article will primarily focus on commercial leases.

What is a break clause?
A break clause is a contractual provision that grants one or both parties the right to terminate a lease prematurely. It acts as an escape route, allowing parties to exit a lease early, providing flexibility in an ever-changing business environment. It impacts all parties, so it is important that both landlords and tenants have an understanding of them. The points for each party to consider differ slightly in detail and are outlined below.

Conditions
Break clauses are typically subject to specific conditions, such as the payment of outstanding rent, compliance with repair obligations, or vacant possession.

Points for Landlords to Consider
For landlords, it is vital to carefully draft break clauses to ensure they protect their interests. Ambiguous or poorly worded clauses can lead to disputes and uncertainty. Seeking legal advice when drafting a break clause can help landlords avoid potential pitfalls.

Notice Periods
Break clauses usually require the serving of a notice by the party wishing to terminate the lease. The notice period can vary, but it is crucial for landlords to clearly specify the required length of notice in the lease agreement.

Points for Tenants to Consider
Tenants must thoroughly review the conditions associated with the break clause. These conditions may include obligations such as reinstatement of alterations, payment of outstanding sums, or compliance with repairing obligations. Failure to fulfil these conditions can lead to the break clause being invalidated, potentially leaving the tenant liable for rent and other costs.

Timing and Flexibility
Break clauses provide tenants with the opportunity to reassess their business needs and exit a lease if necessary. However, tenants should be cautious about the timing of exercising the break clause. It is essential to consider market conditions, relocation logistics, and the impact on the business before deciding to terminate the lease.

Notice Periods
Similar to landlords, tenants must carefully adhere to the notice requirements specified in the lease agreement. Failure to serve the notice within the specified timeframe could result in the continuation of the lease and the tenant will have to fulfil their obligations for the remaining term.

Seeking Legal Advice
Exercising a break clause can have significant implications for both landlords and tenants. Due to the complexity and potential risks involved, it is strongly recommended that clients seek professional legal advice before taking any action. An experienced solicitor with expertise in property law, such as myself, can review the lease, clarify obligations, and guide clients through the process, ensuring compliance with legal requirements and safeguarding their interests.

If you would like a free initial consultation with a member of the Property team simply click on the “Speak to Our Experts” button on this page, call us on 01244 356 789 or email info@cullimoredutton.co.uk

Please note: This is not legal advice; it is intended to provide information of general interest about current legal issues.

Louise Holmes​, Cullimore Dutton Wills, Trusts & Estates

Aretha Franklin – You better think…

/ , , Head of Wills & Probate/ /by

You better think…

Aretha Franklin’s family feud over her estate proves it is better to plan ahead than to leave a dispute for your loved ones.

Aretha Franklin

The tale of Aretha Franklin’s disputed estate has been heavily covered recently across the media including on the BBC.

Aretha Franklin died in August 2018, apparently leaving no Will for her estate worth millions. However, nine months later, handwritten Wills (with different dates) were found in a cabinet and under a sofa cushion at her home in suburban Detroit, leading to an ongoing battle between her four sons.

While many of us do not have the multitude of millions to leave behind for our loved ones, the situation clearly illustrates the benefits, indeed the need to plan ahead and write and register your Will.

We consider planning ahead and writing your Will essential for the following key reasons:

  1. Distribution of Assets: A Will allows you to specify how your assets, including property, investments, and personal belongings, should be distributed after your death. This ensures that your wishes will be respected, minimising the potential for family disputes, and ensuring that your assets are distributed in line with your intentions.
  2. Guardianship of Minor Children: If you have minor children, a Will allows you to name a guardian who will be responsible for their care in the event of your passing. Without a Will, the court may have to make this decision, which may not align with your wishes.
  3. Minimise Family Conflicts: Clear instructions in a Will can help reduce conflicts among family members and loved ones. When your intentions are clearly outlined, it can help avoid misunderstandings, disagreements, and potential legal battles that could arise without a Will.
  4. Executor Appointment: Writing a Will allows you to appoint an executor, who will be responsible for managing your estate, paying debts, and distributing assets according to your wishes. Choosing a trusted person as an executor ensures that your estate is handled by someone you deem capable and reliable.
  5. Tax Planning and Asset Protection: A well-structured Will can also include provisions for tax planning and asset protection, potentially reducing the tax burden on your estate and ensuring that your assets are safeguarded for your beneficiaries.

It’s important to consult with legal professionals such as ourselves when creating a Will to ensure that it adheres to all specific legal requirements.

How we can help
Our team are all specialists in this area of law and are either qualified members or working towards membership of STEP (Society of Trust and Estate Practitioners).
If you would like a free initial consultation with a member of the Wills & Probate team simple click on the “Speak to Our Experts” button on this page, call us on 01244 729 073 or email info@cullimoredutton.co.uk

Please note: This is not legal advice; it is intended to provide information of general interest about current legal issues.

Brenda Spain

Will a Divorce give me a Clean Break?

/ , , Head of Family Law/ /by

Will a Divorce give me a Clean Break?

A divorce can provide a legal end to your marriage but the divorce itself does not provide an automatic ‘clean break’ insofar as financial arrangements are concerned.

Will a Divorce give me a Clean Break? Here are some points to consider:

  • During the divorce, the scope of the family assets will need to be determined. This can be done in various ways: negotiations through solicitors, the mediation process or in some circumstances, the Courts. Those assets include property, investments, savings, pensions, and your respective income positions. Parties are encouraged to reach a fair division of the assets that have been accumulated during the relationship.
  • How these will be dealt with will be very specific to your case, depending on how long you have been married, your ages, any dependent children etc.
  • Specific consideration is given to business assets, pensions, inheritance, trusts and assets accumulated post-separation etc.
  • In reaching an agreement, it is important to bear in mind the requirement of openness and transparency and sharing of information.

When the matter is concluded, it is equally important to ensure you have a Court-approved Order that is final and binding to prevent any ‘come back’ in the future.

While clean breaks are encouraged (i.e. all financial ties are severed, save for children), this is not always possible and again, will be determined on a case-by-case basis. Financial obligations may continue beyond the divorce and can be affected by future changes in circumstances such as income fluctuations.

“When the matter is concluded, it is equally important to ensure you have a Court-approved Order that is final and binding to prevent any ‘come back’ in the future.”

It is important that you and your assets are protected and you should always seek advice from a Family solicitor, particularly in cases of complexity including businesses, pensions etc. The advice will be unique to you and based on your specific circumstances not only now but in years to come to protect you, your children and to protect you in your retirement years.

Here at Cullimore Dutton, we have solicitors with many years of experience who have dealt with all aspects of Financial proceedings with a range of issues and complexities. This experience is invaluable to you.

If you would like a free initial consultation with a member of our Family Law team to discuss the making of a divorce application, or the financial consequences of doing so, simply click on the “Speak to Our Experts” button on this page, call us on 01244 729 073 or email info@cullimoredutton.co.uk

Please note: This is not legal advice; it is intended to provide information of general interest about current legal issues.

Ajith Prasad

Your role as a Landlord – A quick guide

/ , , Solicitor/ /by

Your role as a Landlord – A quick guide

It is important as a landlord to know your rights and responsibilities. Generally, when managing residential property, your role involves maintenance and ensuring any repair work is completed, as the property cannot have any hazards or breach any health and safety laws. Along with this, there are deposit protections you must also follow.

This guide looks at the role of a residential landlord and the key obligations you will have, including your financial responsibilities and health and safety obligations.

Financial responsibilities
This section covers:

  1. Tax
  2. Deposits

1. Tax
As a landlord, you are required to pay tax on your earnings, including national insurance, if you run your rental properties as a business. Income tax must also be paid on your income, the money brought in through rent, but your day-to-day running expenses can be deducted before the tax bracket is decided.

2. Deposits
When a tenancy begins, you are more than likely going to collect a deposit. This money must then be placed in a tenancy deposit protection (TDP) scheme. This is to protect your tenants and ensure the money is returned if their tenancy agreement terms are met at the end of their tenancy. However, the TDP schemes also protect landlords as it means the deposit money is there if the agreement is not met and repairs need to be made, or missed rent payments need to be covered.

In England and Wales, the following schemes are available to you:

Health and Safety
This section covers:

  1. Health hazards
  2. Gas equipment
  3. Carbon monoxide detectors
  4. Fire Safety

1. Health hazards
Landlords owe a duty of care to their tenants, and this includes ensuring there are no health hazards to your tenants. The most serious hazards that you must deal with as soon as you are made aware of them include:

  • Mould on the wall or ceilings
  • Pest or vermin infestations
  • Dangerous or broken boiler
  • Leaking roof
  • Exposed wiring
  • Poor security caused by broken locks or doors

When you are made aware of the above issues, you must act fast to repair the property back to a safe living standard.

2. Gas equipment
As a landlord, it is your duty to ensure all gas appliances are safe and in working order. This is a legal responsibility and can be broken down into three steps, as outlined below.

  • Gas safety checks must be carried out annually by a Gas Safe registered engineer. Once this is done, you will receive an outline of all checks completed in your Landlord Gas Safety Record (LGSR).
  • As well as being kept for your own records, the LGSR should be made available to tenants within 28 days of the gas safety check. At the start of a new tenancy, the most recent LGSR should be provided.
  • Maintenance of all gas pipework, chimneys, appliances and flues is also your responsibility. These must all be kept in safe working order and typically require an annual check unless your Gas Safe engineer suggests otherwise.

When starting a new tenancy, it is also recommended to show the new tenants where to turn off the gas in the case of a gas emergency.

3. Carbon monoxide detectors
From October 2022 you must provide a carbon monoxide (CO) detector in every room where there are gas appliances, other than those used for cooking. These detectors must carry a British or European approval mark and should be checked the day a new tenancy begins and annually, particularly to ensure the batteries are still working.

4. Fire Safety
Similar to CO detectors, you must also ensure there are working fire alarms throughout the property. Fire safety regulations can change depending on which local authority area the property is in, so you should always check you are meeting the local regulations.

Generally, there must be a smoke alarm fitted on each storey of the property, and these must be checked regularly, along with always being checked at the start of a new tenancy. If the property you are providing is furnished, all furniture should be fire-safe, and there should be fire escape routes available.

If the property is a multiple occupation property (HMO), fire extinguishers also must be provided by the landlord.

If you are a landlord who would like a free initial consultation with a member of the Proerty Litigation team simple click on the “Speak to Our Experts” button on this page, call us on 01244 356 789 or email info@cullimoredutton.co.uk

Please note: This is not legal advice; it is intended to provide information of general interest about current legal issues.

Kainat Jones

Can I include digital assets in my will?

/ , , Solicitor/ /by

Can I include digital assets in my will?

Yes, you can include digital assets in your will. Digital assets can encompass a wide range of items, such as online accounts, digital media, cryptocurrencies, domain names, intellectual property, and more. Including these assets in your will allows you to express your wishes regarding their management and distribution after your passing.

Here are some steps you can take:

  1. Identify Your Digital Assets: Begin by creating an inventory of your digital assets. This includes listing all relevant online accounts, email accounts, social media profiles, websites, blogs, online storage, digital files, cryptocurrencies, and any other valuable digital assets you possess.
  2. Appoint a Digital Executor: Designate a trusted individual as your digital executor or digital asset trustee in your will. This person should be tech-savvy and capable of handling your digital assets according to your wishes. They will be responsible for managing and distributing your digital assets as specified in your will.
  3. Nominate a Contact: Some companies, for example Facebook and Apple, allow you to nominate a person to deal with your account once you have passed away, they’re usually referred to as a ‘legacy contact’. You should make enquiries to see if you can nominate someone on your account.
  4. Provide Access Information: In your will, include instructions on how to access your digital assets. This may involve sharing passwords, encryption keys, or other necessary access credentials with your digital executor. Ensure this information is kept secure and updated regularly, and ensure you are not in breach of any T&C’s before doing so.
  5. Specify Your Wishes: Clearly express your wishes regarding the management and distribution of your digital assets. Specify who should inherit or have access to specific digital assets and how they should be handled. For example, you may want certain online accounts to be closed, transferred to others, or preserved as a digital legacy.
  6. Consider Legal and Practical Considerations: Consult with a legal professional such as ourselves to ensure your digital assets are addressed correctly in your will.

Remember to regularly review and update your will, including the provisions related to your digital assets, as circumstances change. By addressing your digital assets in your will, you can help ensure that your wishes regarding these assets are known and respected your passing.

How we can help
If you would like a free initial consultation with a member of the Wills & Probate team simple click on the “Speak to Our Experts” button on this page, call us on 01244 729 073 or email info@cullimoredutton.co.uk

Please note: This is not legal advice; it is intended to provide information of general interest about current legal issues.

Solicitor Sara Butt

Is buying property at auction right for you?

/ , , Solicitor/ /by

Is buying property at auction right for you?

Buying property at auction can be a thrilling and potentially rewarding experience. However, it is important to be aware of the legal implications, rules and regulations, and possible risks involved in such a purchase. In this article, part two of a two-part auction series, we will explore the key considerations for anyone looking to buy property at an auction in the UK.

Understanding property auctions
Firstly, it is important to note that purchasing property at auction is a legally binding agreement. This means that once the hammer falls, the winning bidder is legally obliged to complete the purchase. Therefore, it is essential that you thoroughly research the property before making a bid. This should include a detailed inspection of the property, checking for issues or defects, and obtaining a copy of the legal pack.

What is the legal pack?
The legal pack will contain important information such as title deeds, searches, and any planning permission or building regulations that apply to the property. Instructing a solicitor or conveyancer to review the legal pack and provide you with their professional opinion on any potential issues or concerns is advisable.

Property law and auctions
It is also important to be aware of the UK’s rules and regulations surrounding property auctions. These will vary depending on the auctioneer and the type of auction being held. Typically, auctions are governed by the Auctioneers and Valuers Association (AVA) and the National Association of Valuers and Auctioneers (NAVA). These bodies set standards for auctioneers and provide guidance on best practices.

Property auction process
When attending an auction, arriving early and registering your interest with the auctioneer is essential. You will be required to provide proof of identity and, in most cases, a deposit in order to bid. The deposit is typically 10% of the purchase price and must be paid immediately if you are the winning bidder.

It is important to set a budget before attending the auction, and stick to it. Auctions can be fast-paced and emotionally charged, so getting carried away and overbidding is easy. Also, remember that there may be additional costs on top of the purchase price, such as legal fees, stamp duty, and auction fees.

Should I buy property at auction?
The main benefit of buying property at auction is the potential to secure a bargain. However, it is important to be aware that risks are also involved. For example, the property may have hidden defects or be subject to restrictions that could affect its value or your ability to use it as intended.

It is important to approach it with caution and fully understand the legal implications, rules and regulations, and any risks involved. By doing your research and seeking professional advice, you can increase your chances of a successful and stress-free purchase.

If you would like a free initial consultation with a member of the Property team simply click on the “Speak to Our Experts” button on this page, call us on 01244 356 789 or email info@cullimoredutton.co.uk

Click here for part one of our auction series: “Is selling property at auction right for you?” 

Please note: This is not legal advice; it is intended to provide information of general interest about current legal issues.

Solicitor Sara Butt

Is selling property at auction right for you?

/ , , Solicitor/ /by

Is selling property at auction right for you?

If you’re looking to sell property in the UK, you may have considered selling at auction. But is selling property at auction right for you? In this article, part one of a two-part auction series, we’ll explore the legal implications, rules and regulations, and important considerations when selling property at auction in the UK.

Property auction process
First, it’s important to understand the auction process. Auctions are typically held in a public venue or online and allow potential buyers to bid on the property. The highest bidder at the end of the auction is legally bound to purchase the property, provided the reserve price (the minimum price at which the property can be sold) is met.

What to know about selling property at auction
One of the biggest advantages of selling property at auction in this way is that it can be a quick and efficient process. Unlike traditional sales methods, which can take several months or even years, auctions are typically completed within a matter of weeks. Additionally, auctions can generate a lot of interest from potential buyers, leading to competitive bidding and potentially higher sale prices.

However, there are also potential disadvantages to selling property at auctions. For example, if the reserve price is not met, the property may not sell at all. Additionally, sellers may need to pay auction fees, which can vary depending on the auction house and the type of property being sold.

The legal side of selling property at auction
Before deciding whether to sell your property at auction, it’s important to consult with legal and financial professionals to fully understand the legal implications and costs involved. Here are some important legal considerations to keep in mind:

Contractual obligations
When you sell via an auction, you are entering into a legally binding contract with the highest bidder. It’s important to ensure that you have a clear understanding of your obligations and the buyer’s obligations under the contract.

Payment and completion
Once the auction is complete, the buyer is legally bound to pay the purchase price and complete the transaction within a set timeframe. It’s important to ensure that you have a clear understanding of these deadlines and any consequences for failure to comply.

Legal and financial advice
It can be a complex process, and it’s important to seek legal and financial advice to ensure that you are fully aware of your rights and obligations.

Rules and regulations
In addition to these legal considerations, there are several rules and regulations that govern property auctions in the UK. For example, auction houses are required to provide potential buyers with a buyer’s guide, which outlines the terms and conditions of the auction and any fees that may be charged.

Choosing an auction house
Finally, it’s important to choose the right auction house when selling your property. Look for an established auction house with a good reputation and experience selling properties similar to yours. Be sure to read reviews and ask for references before making a decision.

Selling property this way can be quick and efficient way, but it’s important to fully understand the legal implications, rules and regulations, and costs involved. Seek legal and financial advice, and choose the right auction house to ensure a successful sale.

If you would like a free initial consultation with a member of the Property team simply click on the “Speak to Our Experts” button on this page, call us on 01244 356 789 or email info@cullimoredutton.co.uk

Next week in part two of our auction series we ask: “Is buying property at auction right for you?” 

Please note: This is not legal advice; it is intended to provide information of general interest about current legal issues.

Kainat Jones

How often should I review my LPA

/ , , Solicitor/ /by

How often should I review my LPA

Reviewing your Lasting Power of Attorney (LPA) is an important step to ensure its accuracy and relevance over time. It’s always best to consult with a legal professional such as ourselves for specific recommendations tailored to your circumstances.

As a general rule, it is recommended to review your LPA periodically, typically every two to three years or when significant life changes occur. Additionally, you should consider reviewing it if there are any changes in relevant laws or regulations that may impact your document.

Here are some common situations when reviewing your LPA would be advisable:

  1. Personal Changes: If there are changes in your personal circumstances, such as marriage, divorce, or the birth of a child, you may want to review your LPA to ensure that your appointed attorneys and instructions still align with your current wishes.
  2. Relocation: If you have moved to a different country or jurisdiction, it is important to review your LPA to ensure its validity and effectiveness in the new location.
  3. Health Changes: If there are significant changes in your health status, it is wise to review your LPA to ensure that your instructions and preferences regarding healthcare decisions remain accurate and up to date.
  4. Attorney’s Availability: If your chosen attorney(s) are no longer willing or able to act on your behalf, it is essential to review and update your LPA to designate new attorneys.
  5. Changes in Relationships: If there are changes in your relationship with your chosen attorneys, such as a breakdown in trust or communication, you may want to reconsider your choices and update your LPA accordingly.

Remember that reviewing your LPA does not necessarily mean making changes every time. It is an opportunity to assess whether the document still reflects your wishes and if any modifications are needed. Consulting a legal professional such as ourselves will ensure that your LPA remains valid and aligned with your intentions.

How we can help
If you would like a free initial consultation with a member of the Wills & Probate team simple click on the “Speak to Our Experts” button on this page, call us on 01244 729 073 or email info@cullimoredutton.co.uk

Please note: This is not legal advice; it is intended to provide information of general interest about current legal issues.

Louise Holmes​, Cullimore Dutton Wills, Trusts & Estates

At what age should I write a will?

/ , , Associate Director/ /by

At what age should I write a Will?

While the age at which you should write a Will can vary depending on your personal circumstances, it is generally recommended for adults to consider creating a Will as soon as they have assets or dependents they want to protect and provide for after their passing.

Here are a few factors to consider:

  1. Legal Age: In the UK, the legal age is 18 years old. Once you reach this age, you are considered an adult and have the legal capacity to create a Will.
  2. Accumulation of Assets: If you have acquired assets such as property, investments, savings, or valuable possessions, it is a good time to consider writing a Will to ensure that they are distributed according to your wishes.
  3. Dependents: If you have dependents, such as children or individuals who rely on you financially, it becomes essential to create a Will to outline guardianship arrangements and provide for their needs in the event of your passing.
  4. Life Changes: Major life events like marriage, divorce, or the birth of a child often prompt individuals to review or create a Will to reflect their changing circumstances.

While it is advisable to write a Will sooner rather than later, it is never too late to create one. It’s important to keep your will up to date and revise it as needed to reflect any changes in your assets, relationships, or wishes. Consulting a legal professional such as ourselves is recommended to ensure your Will is legally valid.

How we can help
If you would like a free initial consultation with a member of the Wills & Probate team simple click on the “Speak to Our Experts” button on this page, call us on 01244 729 073 or email info@cullimoredutton.co.uk

Please note: This is not legal advice; it is intended to provide information of general interest about current legal issues.

Dominic Richmond

The Spring Budget 2023

/ , , Independent Financial Adviser/ /by

A “Budget for Growth” is how Jeremy Hunt chose to describe the Spring Budget. How much do you think it will help you?

Some of the announcements…

Pensions
The biggest headline was probably the changes announced to pensions with the annual pension input allowance being increased by 50% up to £60,000 per tax tear. Alongside this, in a move targeted mainly at high earning NHS staff, the Chancellor also abolished the pension lifetime allowance. Meaning that instead of the limit of a person being able to save just over £1M in their pension before facing some hefty tax charges, there is now no limit. It may not be time to crack open the Champagne just yet though, as Labour have suggested that they’ll look to reverse these measures if/when they get into power after the next General Election. A less talked about limit, the Money Purchase Annual Allowance is also increasing from £4,000 to £10,000 per year.

Corporation Tax
There were no new announcements in terms of tax rates or thresholds. The widely unpopular decision to increase Corporation Tax to 25% is still going ahead.

Energy Price Guarantee
The planned increase of the Energy Price Guarantee is being delayed until July, meaning that the based on current prices the energy cost for the “average home” will remain at the bargain price of £2,500 per year as opposed to £3,000.

Free childcare
Free childcare for 1 and 2 year olds will also be phased in over the next 2 years. The hope being that this will bolster the economy by allowing more parents of infants back into work if they no longer have to pay exorbitant childcare costs with up to 30 hours of free childcare being announced.

Fuel and alcohol duty
Good news for anybody driving to the off-licence as fuel duty and alcohol duty have both been frozen for the next 12 months.

Potholes
The wheels of our cars were no doubt delighted to hear of a further £200M being earmarked to tackle the potholes on our roads. By my reckoning, that’s £1 to fix each pothole in my home County of Shropshire.

 

Did anything in the budget, particularly around pensions raise any questions for you?
If so why not book a free initial consultation with one of our truly independent Financial Services team, simply click on the “Speak to Our Experts” button on this page, call us on 01244 356 789 or email info@cullimoredutton.co.uk

Please note: This article is provided for information only and must not be considered as financial advice. We always recommend that you seek independent financial advice before making any financial decisions.

Levels, bases of and reliefs from taxation may be subject to change and their value depends on the individual circumstances of the investor.

The value of your investment can go down as well as up and you may get back less than you have invested.

The Financial Conduct Authority does not regulate Taxation advice.