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Wason Lawrance Holder Customer Service

Raising The Bar

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The service industry is by far and away the largest sector of the UK economy. For many years the legal industry would not have fallen into this category as it is traditionally perceived as acting to advance its own interests and not having the clients interests at heart. Over the last ten years the property/conveyancing sector of law has become densely saturated with many new practices entering the industry. The introduction of bulk conveyancing practices has certainly increased competition amongst firms and has made harder for high street practices of a more traditional background. It is questionable as to whether these types of legal providers are the best option for the clients. Feed back from clients who have used them all points to a lack of service.

The presence of these bulk conveyancing practices never the less has meant high street practices are now having no choice but to step up service levels. These practices are now coming to the conclusion that offering the client a personal one-one service is equally as important as the solicitors’ legal knowledge. Through unique approaches, practices are now moving forward to meet the expectations of clients and continue to push the level of service within the sector.

Navinder Singh, one of our most experienced solicitors explains:

“We looked carefully at what the client went through during property transactions and ways in which we could improve the client’s experience. The main aspect that we found clients wanted throughout their transaction was simply communication. The ability to be in contact with their chosen solicitor at any given time. We have come to understand clients fears during the property transaction and the undue stress that results from minimal communication which many of the bulk conveyancers/ property practices provide. The model that we have looked to implement can only work in an environment where we do not entertain working for bulk numbers of clients. It is our simple belief that the more transactions you deal with at any one time, the less the service you provide to the client in both legal terms and from a service perspective.”

Navinder also highlighted an innovative approach to providing high levels of client care, which includes the ability for clients to contact the solicitor dealing with the matter directly on their personal mobile numbers and being able to visit clients at their own properties or estate agents in order to sign and collect paperwork or to simply explain paperwork to the client. It has been suggested that by providing these additional services the profession is being devalued. However Navinder Singh disagrees;

“It is our strong belief that this is not the case and that this level of service will in time add value to what we as solicitors do. By doing this we have seen a positive effect on the clients in that it reassures them that they will always be able to get in touch with their solicitor.”

When it comes to fees, the natural thing for most clients to do when looking for a solicitor is to look for the cheapest possible quote. A term often used when purchasing a property is caveat emptor (buyer beware). This principle certainly applies for both buyers and sellers when searching for your solicitor. Beware of cheaper quotes as what you will find is that the service falls below what the client would expect. This is because many of these firms are volume based. A model that has proven successful is one that works on the basis that clients are quoted as up front as possible from the start. It is inevitable that some additional fees for unforeseen work may arise. However in quoting clients, solicitors have to be very conscious that the end bill is not out of sync with what has been initially quoted. In working in such a manner solicitors are not looking only at the short term relationship with clients but to also establish long term relationships with them.

It is believed that the sector is coming into a period of transition in the way that clients perceive their solicitors and the way in which practices work. It is hoped that implementing small and some wider ranging changes in high street practices will raise the bar in terms of service levels being provided to clients.

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Property Extensions A Tricky Business

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A growing number of property owners are building extensions and making other alterations. But it can be a risky business unless you know what you’re doing.

Certainly, doing extensions can add value to your property, as well as maximise the use of space. So it can often be a wise investment. But before you start you need to consider what kind of consent you will need, and from whom.

If you’re a leaseholder you may want to carry out improvements and alterations. If so, in addition to obtaining local authority consent you must apply for the landlord’s consent before going ahead. This is invariably a requirement of any lease.

Whatever the nature of the work, you should check with your landlord that the work is permitted, and obtain any written confirmation or relevant licences.

If you carry out any alterations or improvements without permission you will be breaking the terms of your lease. In such instances, legal action to stop any further work or to reverse any work already done is likely.  That can be costly and time consuming. In extreme cases, the breach can lead to a cancellation of your lease by the landlord, who may then reclaim the property, leaving you effectively homeless.

As well as landlord’s consent, you may need planning permission from the Council and approvals from building control, usually known as building regulations consent. Most councils have separate departments dealing with each. The need for Council consents apply to both freehold and leasehold properties.

Some alterations don’t require planning permission from the Council, and these are sometimes referred to as ‘permitted development’. For example, domestic extensions such as conservatories are okay as long as they are within a certain size. But you should always check with the Council’s Development Control department.

Where you are a leaseholder, regardless of whether Council consents are required, the freeholder’s approval and consent is almost always needed.

As Navinder Singh, solicitor explains;

“You may well think that as your neighbours have a similar extension that should be fine. However, this is a very dangerous approach, as all consents are given based on different criteria and circumstances. Who is to say your neighbour did the work legally in the first place?”

There are various types of action the Council can take when the appropriate consents haven’t been obtained. The main one is an enforcement notice. Such a notice will specify the breach of planning control, the steps required to remedy the breach, and the period of time allowed for compliance.

The steps required to remedy the breach may range from complete demolition to modification. The costs of dealing with this may be considerable. The Council can apply other sanctions too, making things even more expensive for you.

In more serious cases, the Council may choose to serve an injunction. Failure to comply will be a contempt of court for which serious penalties would apply.

 

As Navinder explains:

 

“We had a client recently who purchased a piece of land to develop. Unfortunately the client thought that due to his contacts in various Council departments it would be certain he would get the planning and building regulation consents. The client subsequently continued with the work, and it was later established neither of the consents could be granted. As a result, not only did the client have the costs of returning the land to its former position but has also been left with a low value piece of land bought at a substantial price.”

 

Navinder continues:

 

“It is these types of scenarios which we want our clients to avoid. Not only does it potentially cost them to remedy breaches, but the stress and time involved also has a negative impact on individuals. We always stress that before doing any work affecting a property to make some simple calls to establish what consents are required.”

 

There will always be the opportunity to make money from developing land and existing properties, but if it isn’t done in the right way you could easily find yourself seriously out of pocket.

 

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Auction With Caution

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Auctions have become ever more popular, largely due to the speed and efficiency for all parties and also the net gains that can be made by prospective purchasers. But whether you are purchasing or selling at a property auction, it is imperative you understand how the process works and that you are alert to the risks. Auctions are sometimes known as the ‘deadline’ method of sale. This is because once the auction is completed, the property is sold and legal ownership is transferred to the buyer. This method bypasses the most common way of selling properties, which usually requires the appointment of a firm of solicitors who engage in the conveyancing process. Although this method takes longer, the purchaser is more protected because of the due diligence of the solicitor involved. At an auction, the burden of investigating a property’s suitability falls solely on the prospective buyer.

It is important that as a potential purchaser you fully research the property. The last thing you would want to do is invest your money in a property that is legally defective! With leasehold properties, you must be particularly cautious as there are often more complex problems involved such as missing freeholders, unbilled service charges for major works which may consist of repairs to communal areas, or disputes over billed service charges.

Ensure that you obtain the auction pack as early as possible as this contains various legal documents relating to the property. We recommend that you seek legal advice in relation to the contents of the pack, as the legal terminology often leaves prospective purchasers confused. It is advisable to view the property and obtain a survey to ensure you are fully satisfied as to its state and condition. Remember that there is always a reason why the property is being sold at an auction, so your investigative work will confirm whether there are any deficiencies in the property. Occasionally, there are sinister reasons such as boundary disputes which prevent the property being sold on the open market. In our opinion, it is also in your best interests to research similar properties in the local area so you have a good estimation of how much it is worth. This way you can also set yourself a maximum threshold, so when it comes to the auction you do not pay over the odds. Not all auctions provide bargains!

In our professional opinion, the most important step you can take prior to participating in an auction is to organise your finances. Whether you require a mortgage or not it is crucial that your finances are arranged. Typically, you are required to produce a 10{57cb785130d977e940beec33827b62086baafa22cb542e230ec7ceafe2c4ea78} deposit on the day of the auction, and the remaining 90{57cb785130d977e940beec33827b62086baafa22cb542e230ec7ceafe2c4ea78} is required within 28 days thereafter, although this may vary depending on the seller. When you arrive at the auction, ensure that you have the 10{57cb785130d977e940beec33827b62086baafa22cb542e230ec7ceafe2c4ea78} deposit ready, together with your identification. If you cannot produce the remaining 90{57cb785130d977e940beec33827b62086baafa22cb542e230ec7ceafe2c4ea78} within this timeframe your deposit will be lost and you will be left with nothing. Navinder Singh, one of our most experienced solicitor states that:

“It is surprisingly not unusual for buyers at auctions to not fully think through their financing position, whether it be through cash funds, bridging companies or mortgage lenders. I recently had a client who failed to agree a mortgage on his auction property and unfortunately the client lost his deposit, in the region of £15,000.”

It is important to note that obtaining a mortgage for a property at auction differs to conventional purchases, as you are obtaining the mortgage after the exchange of contracts. The lender will require that a solicitor is appointed to act on their behalf in checking that the security is adequate for lending purposes. If there are any defects, the lender will not be willing to lend. You will therefore not be able to complete in time. To avoid this particular problem we recommend that you have cash resources in place.

In summary, auction properties can be very lucrative. However, there are many serious pitfalls associated with them. When moving forward with any auction property, ensure you take the relevant legal advice and be clear on your methods of financing.