Clarke and Son News

The Department for Communities and Local Government has published special lease templates for landlords with empty commercial properties who are worried about empty property rates, the threat of illegal squatters as well as the security/insurance costs associated with owning an empty property.  These have been called ‘Meanwhile Use leases’.

 The leases are intended to encourage the temporary occupation of empty town centre shops by occupiers who can contribute to the viability and vitality of town centres but who would otherwise be unable to afford normal commercial rents.

The intention is that occupiers, such as local voluntary or charitable groups, information centres, artists and musicians, will be able to use a vacant property temporarily and rent free for a non-commercial purpose, while the landlord looks for a permanent new tenant.

The British Property Federation has supported the initiative as a way of trying to revive activity on high streets and make it easier to find new uses for vacant premises.

 Commercial Property Partner Charles Marchant- White says:

“Meanwhile use leases should give landlords an opportunity to reduce their property costs, avoid empty property rates, ensure that the building is maintained whilst also having the legal assurance of getting the property back quickly once they can let it commercially again. They appear to be a simple temporary option worthy of consideration to achieve real practical and financial benefits.”

For more information on Commercial Property issues, contact Charles Marchant-White on Tel: 01256 320 555.

Zurich Insurance plc has confirmed that Zurich Building Guarantee has decided to withdraw from the new home warranty and building control markets. It will honour its existing commitments to its customers, but is closed to new business.

Zurich has confirmed that its decision took effect from 30 September 2009, but the decision has not been widely publicised by Zurich or widely reported. This is an important development in the market for new home warranty products, as Zurich were one of the main providers of those products.

If you are a residential property developer, you will no longer be able to obtain the Zurich Building Guarantee for new sites.  If you are purchasing a new residential property, or a property which has been converted, where a Zurich Building Guarantee is on offer, Zurich has confirmed that it will issue policies and certificates in the normal way, as sites and properties already registered with it are commenced and completed.

For further information on Moving Home, Mortgage and Property Services, contact Paul Cowdery on Tel: 01256 320 555.

Following the Chancellor’s pre-Budget report, it is clear that the UK economy continues to struggle.  This has a knock-on effect on UK employment and can be seen particularly in the continual heightened level of redundancy in the workplace.

Where redundancies are applicable, employers may, in certain circumstances, be prepared to offer a ‘deal’ to the employee to compromise any potential claims in exchange for financial settlement.  However such a deal needs to be embodied in what is known as a Compromise Agreement, which is a specific type of Agreement, created and controlled by statute, designed to end employment relationships.

Essentially the Compromise Agreement will provide for the employee to receive a sum of money as compensation for loss of his or her job and in return the employee will agree not to pursue defined further claims against the employer arising out of the employment or its termination.

The benefit for the employer is that they will often receive more than their strict legal entitlement, such as the statutory redundancy payment. The benefit for the employer is that the Agreement represents finality and it removes the risk of an expensive Employment Tribunal claim from the employer following termination of the employment.

A crucial part of the procedure for a Compromise Agreement is that the employee must take independent legal advice from a Solicitor and the Agreement will contain a certificate from the Advisor that such advice has been given.  This is designed to prevent employees being pressured into signing Agreements which are not in their best interests or which do not provide them with adequate compensation for loss of their job.

Since taking the legal advice is essential for the Agreement to be valid the employer will invariably make a reasonable contribution to the employee’s legal costs.

If you are facing redundancy or if your employer is talking to you about a Compromise Agreement then we can advise you on your position. Contact Thomas Hunt, Employment Specialist on Tel: 01256 320 555 for further information or advice on any aspect of Employment Law.

Just in time for the Christmas and New Year Celebrations, Clarke & Son’s prize at a recent Meet the Chamber Event was a bottle of Champagne. The delighted winner was Claire Freer of FCM, who said of the event:

 ”I thought the Chamber of Commerce Event offered a really good mix of businesses - all of whom I was able to speak to.  I also liked the format where members and non-members could speak briefly about their company at the beginning.  Winning the bottle of Champagne from Clarke & Son topped off a very successful evening!”

Clarke & Son were promoting their Commercial Services at the event, offering free business healthchecks to attendees and advice on Grievance and Disciplinary Procedures and Commercial Property Issues.

Charles Marchant-White, Partner and Chairman of the North Hampshire Chamber of Commerce felt that the event went very well.

“This was an ideal opportunity for SMEs and fledging businesses to come and find out more about all services on offer in Basingstoke. I felt the event was very well attended and look forward to similar opportunities in the future.”

For further information on Clarke & Son’s Commercial Services, contact Charles Marchant-White on Tel: 01256 320 555.

You will no doubt be well aware of the main provisions of the Chancellor’s pre-budget report. However the following are of particular significance:

• VAT is to return to 17.5% from 15% from 1st January 2010.  The 15% rate can still be used for services provided up to 31st December 2009.  When we are preparing our bills for you we will, where appropriate, provide apportioned accounts.

• The increase in the Stamp duty land tax threshold on residential properties from £125,000 to £175,000 will come to an end on 31st December 2009. The critical date is the completion date of the transaction which is normally (although not always) the date on which the purchase money for the property is paid and the buyer moves in.

Please note this office will close at 5pm on Wednesday 23rd December 2009 and re-opens on Monday 4th January, 2009 at 9am. The last date we would recommend for completion of a property purchase would be Tuesday 22nd December 2009.

For more information on moving home, mortgage and property services, please contact Paul Cowdery on Tel: 01256 320 555.

Falling house prices may seem like something of a memory, at least for some.  The Nationwide index showed a seventh consecutive monthly rise in November, by 0.5%, taking the price of an average house to £162, 764.  This is 2.7% higher than this time last year and means prices are back where they were in early 2006.  But improvement in the housing market is not uniform across the UK.  According to Hometrack, the strong growth in sales and prices is concentrated predominantly in London and the South East.  Buyer demand does appear to be softening though, which could mean the upward pressure on prices may weaken in the months ahead.*

 Paul Cowdery, Partner & Head of Conveyancing comments:

“Although the market has been stronger than anticipated in the past six months, the feedback we have from most local agents for the year ahead suggests that there is still a large amount of caution as to prospects for the housing market generally and for price stability in the year ahead.  What is causing concern is the impact of a number of uncertainties (e.g. the election, unemployment, the extent of tighter credit controls) which will come into play.  At Clarke & Son, we are continuing to focus our efforts on reviewing the title and supporting paperwork promptly to ensure everything is satisfactory and then moving transactions forward as smoothly as possible to exchange and completion once we are satisfied and our clients are happy to proceed.”

For more information on moving home, mortgage and property services, please contact Paul Cowdery on Tel: 01256 320 555.

*Source: The Chief Economists Weekly Brief from the Royal Bank of Scotland

Bhupendra Sankhla, Partner and Head of the Family Department at Clarke & Son LLP is now able to offer clients a Collaborative Law Service.  This is an alternative to court for divorcing couples, involving four-way meetings with both parties and accompanying solicitors.

 The aim is for all parties to set the agenda and to reach an amicable conclusion within their own timetable.  It helps to reduce the amount of cost to the client as there is less correspondence between solcitors.  Also, the solicitors sign an agreement to say they cannot represent the client in court, giving the client an incentive to work with this process.

It is an alternative to mediation which involves an independent person known as a ‘mediator’ who assists the parties reaching an agreement.  However, the mediator is not a legal representative and therefore each party is advised to take additional legal advice.

 Bhupendra says of the new service:

“I am delighted to be able to offer clients this alternative to court proceedings, which can be costly and stressful for all concerned.  It is vital that all parties are happy with arrangements, especially when children are involved and this process will hopefully help to achieve this.”

For more information on Collaborative Law, please email Bhupendra Sankhla, who is an accredited specialist member of Resolution (formerly known as The Solicitors Family Law Association) or tel: 01256 320 555.