Frozen Bank Account? Here’s What You Need To Do Next

Discovering that your bank account has been frozen can be a shocking and stressful experience. Whether you are an individual or a business owner, a frozen bank account can leave you unable to access funds, pay bills, or conduct normal financial activities.

In many cases, accounts are frozen because of a police investigation, often under the Proceeds of Crime Act 2002 (POCA). When this happens, understanding your legal rights and obligations is critical.

Why Has Your Account Been Frozen?

A bank will typically freeze an account after they detect suspicious activities with the account, for example large and unexplained inflow or outflow. An account may also be frozen when they receive a request from the police or other enforcement agency. This usually happens when there is a suspicion that the account has been used for criminal purposes, such as fraud, money laundering, or handling proceeds of crime.

Under POCA, the police can apply for an Account Freezing Order (AFO) if they have reasonable grounds to suspect that money in the account is linked to criminal activity. This is a civil matter application, meaning that it is not a criminal prosecution, but the consequences can still be severe. If the police successfully extend the freezing order, they may later apply for a Forfeiture Order, which allows them to seize the money in the account.

The Importance of Providing the Right Evidence

When an account is frozen, the account holder is often asked to provide evidence explaining the source of funds and the legitimacy of transactions. This is a critical stage, as the information provided can determine whether the account is released or whether further legal action is taken.

If you are asked to provide evidence, it is essential to be thorough and organised. You should assist the investigating agency to understand your specific circumstances. Bank statements, invoices, contracts, business records, and correspondence with clients or suppliers can all help prove that the funds in the account are legitimate. However, it is just as important to be strategic about the evidence you provide. Giving incomplete, inconsistent, or mistaken information can harm your case.

Although this is a civil application and not a criminal investigation, many people make the mistake of rushing to explain themselves without fully understanding the nature of the investigation. Anything you provide to the police at this stage can later be used in court if forfeiture proceedings are initiated. Even if you believe you are innocent, poorly presented evidence or contradictory statements can create suspicion and strengthen the case against you.

While it is important to cooperate with the authorities, doing so without legal advice can be risky. The police are not obligated to release your funds simply because you provide some evidence. If they believe there are still unanswered questions, they can apply to extend the freezing order, meaning you could be left without access to your money for months.

At the same time, outright refusal to engage with the police may be seen as suspicious and could be used as a reason to extend the order.

Seeking Legal Advice Early Can Make a Difference

Many people only seek legal help after their situation has worsened—when the freezing order has already been extended or when forfeiture proceedings are underway. By this stage, the police may have gathered significant evidence against them, making it much harder to challenge the case.

Obtaining legal advice at the first sign of trouble can help prevent mistakes and improve the chances of getting the account unfrozen quickly. A solicitor can:

Assess the situation and advise on the best response: Understanding the exact nature of the allegations is crucial before submitting any evidence.

Help prepare and present evidence effectively: A lawyer can ensure that financial records and explanations are structured in a way that strengthens your case.

Engage with the police on your behalf: Having a legal professional manage communications can prevent misunderstandings and reduce the risk of self-incrimination.

Challenge an extended freezing order: If the police try to extend the order, legal representation can help argue against it in court.

Final Thoughts

Having your bank account frozen is more than just an inconvenience. The way you respond in the early stages can determine whether the issue is resolved quickly or escalates into a full forfeiture case.

Providing the right evidence is essential, but doing so without legal guidance can be dangerous. A solicitor can help you navigate the situation, ensuring you cooperate with the police without compromising your rights. Seeking legal advice early is the best way to protect yourself and prevent a temporary issue from becoming a long-term financial disaster.

If your account has been frozen or you are under investigation, don’t wait for the situation to escalate. Contact our legal team for expert guidance on how to protect your assets and challenge the freezing order effectively.

Have questions? Get in touch today!

Call us on 020 7928 0276, we will be taking calls from 9:30am to 6:00pm.

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Sumit Singh

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How Does a Property Chain Transaction Work When Buying and Selling a Property?

If you’re buying and selling a property at the same time, you will likely be part of a property chain — a sequence of dependent transactions where each sale funds the next purchase. Managing a chain can be complex, and understanding how the process works, including the release mechanism, can help ensure a smoother transaction.

What Is a Property Chain?

A property chain occurs when multiple home sales and purchases are linked together. This means:

You need to sell your current home to buy your new one.
Your buyer may also be selling their property to fund their purchase.
Your seller may also be buying another property, creating a chain of transactions.

Each transaction in the chain is dependent on the others, meaning delays in one part can affect everyone involved.

How Does the Process Work?

1. Instructing a Solicitor

Since you are both selling and buying, your solicitor (hopefully us!) will handle both transactions simultaneously, ensuring that legal documents and contracts are aligned to avoid gaps in the process.

2. Agreeing on Sale and Purchase Terms

Once you have accepted an offer on your property and had your offer accepted on a new home, the legal process begins. Your solicitor will:

Review contracts for both transactions.
Carry out property searches and due diligence.
Liaise with the other solicitors in the chain to ensure everything progresses smoothly.

3. The Release Mechanism in Chain Transactions

A crucial part of managing a chain transaction is ‘the release mechanism’, which helps coordinate the exchange of contracts across multiple transactions.

If you are in the middle of a chain, your solicitor will first seek confirmation from your buyer’s solicitor that they are ready to proceed.
Once assured, your solicitor will request a ‘release’ from the solicitor acting for the person selling to you.
This means you exchange contracts on your sale first, then your solicitor immediately returns to exchange on your purchase.
This process prevents situations where you exchange on your purchase but your sale has not been finalised—reducing the risk of financial exposure.

This mechanism ensures that all transactions exchange contracts in a coordinated manner, reducing uncertainty and keeping the chain moving.

4. Exchange of Contracts

Contracts are usually exchanged simultaneously for both your sale and purchase. At this point, the transaction becomes legally binding, meaning neither party can withdraw without penalties.

5. Completion Day

On the day of completion:

The sale proceeds from your buyer are received.
These funds are used to complete your purchase.
Once all payments have been made, you hand over the keys to your buyer and collect the keys to your new home.

Potential Challenges and How to Manage Them

Delays in the Chain – One party experiencing mortgage issues, legal delays, or survey concerns can slow down the entire process. Proactive communication between solicitors helps manage expectations.
Breakdowns in the Chain – If a buyer or seller pulls out, the whole chain can collapse. Some buyers/sellers choose to move into temporary accommodation if they need to proceed with their sale but their purchase is delayed.
Same-Day Exchange and Completion – To avoid risks, some chains opt to exchange and complete on the same day, but this requires all parties to be prepared, which can be stressful.

How We Can Help

At Lisa’s Law we specialise in managing complex chain transactions efficiently. Our experienced conveyancing team will:

Coordinate the release mechanism to ensure smooth contract exchanges.
Liaise with all parties in the chain to prevent unnecessary delays.
Keep you informed throughout the process to reduce stress.

If you are buying and selling a property simultaneously, contact us today to ensure a smooth and seamless move.

Have questions? Get in touch today!

Call us on 020 7928 0276, we will be taking calls from 9:30am to 6:00pm.

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Sumit Singh

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Use of BRC and BRP extended until June

The UK government estimates there are approximately 600,000 people who have not switched from their physical document to an eVisa. To support a continued smooth transition to eVisas, and ensure no one is disadvantaged, the Home Office is extending the ‘grace period’ announced in December 2024. The use of the BRC and BRP has been extended from 31 March 2025 to 1 June 2025.

This allows people with a biometric residence permit (BRP) or EUSS biometric residence card (BRC) that expired on or after 31 December 2024, and who continue to hold underlying immigration status, to continue to use their expired document for international travel up to and including 1 June 2025.

From the 2 June 2025, expired BRPs and EUSS BRCs will no longer be acceptable evidence of immigration status when travelling to the UK.

Those who have not created an account to access their eVisa are encouraged to do so as soon as possible.

The Home Office previously extended the grace period for use of BRPs and BRCs back in December, enabling them to be used until the end of March. You can see this here.

We have also previously covered how to register for an eVisa, which you can find out more about here.

Have questions? Get in touch today!

Call us on 020 7928 0276, we will be taking calls from 9:30am to 6:00pm.

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Sumit Singh

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Government Announces Plans for the End of Leasehold – Find Out What Will Replace It

In line with their manifesto commitments, the government has announced plans to abolish the ‘feudal’ leasehold system and replace it with a commonhold model by the end of the current Parliament.

Successive governments have promised to take decisive action on leasehold to no avail, but the latest plans by the announced by Housing Minister, Matthew Pennycook, seemingly represent a bolder and more credible vision for life after leasehold.

This announcement marks what the government describes as the “beginning of the end” of leasehold and will be followed by a draft bill in the second half of 2025. However, leasehold will continue to be reformed for the time-being. The Leasehold and Freehold Reform Act 2024 became law last year and is currently in the process of being implemented. We covered the Act at the time here, and recently reported on the implementation of the removal of the two-year qualifying period for leasehold extension here.

Before the election, the Labour party had pledged to abolish leasehold within the first 100 days of government. However, this was dropped by the party, who blamed the watering down of leasehold reform by the then Conservative government. So, will this latest announcement finally bring an end to leasehold?

Keep reading to learn more about the government’s plans for replacing the much-criticised leasehold system with a commonhold model, and what it could mean for you.

Quick explainer – what is leasehold?

Regular readers of Lisa’s Law will be well-versed on leasehold by now, a system of property ownership in which the leaseholder, sometimes known as the tenant, owns the property for x number of years before it returns to the landlord, the freeholder. The freeholder, however, has ultimate ownership of the property and the land it sits on in perpetuity. A lease with less than 80 years on it can be incredibly expensive to renew due to something called marriage value, however renewal is vital as leases with less than 80 years lose considerable value.

Leaseholders are subject to service charges to maintain the building and land the property sits on, as well as ground rent for the pure privilege of “renting” on the land owned by the freeholder. Both service charges and ground rent can increase over time, causing extra financial strain for leaseholders.

Another area of complaint for leasehold properties is the negative role management companies play in the process of property transactions. Both buyers and sellers can be charged with various fees when they request management companies to disclose information which is vital to the transactions. Such disclosure usually comes out very slowly, which increases the cost of transaction and delay the process.

This is a basic explanation of leasehold, but to learn more about the differences between leasehold and freehold, as well as the advantages and disadvantages, click here.

What has the government set out in the Commonhold White Paper?

Some of the headline announcements in the White Paper include the following:

Banning new leasehold flats, ensuring that commonhold becomes the default tenure

New rules that will enable commonhold to work for all types of developments, including mixed-use buildings and allowing shared ownership homes within a commonhold.
Greater flexibility over development rights, helping developers build with confidence and maintaining safeguards for the consumer.
Giving mortgage lenders greater assurance with new measures to protect their stake in buildings and protect the solvency of commonholds – such as mandatory public liability insurance and reserve funds and greater oversight by commonhold unit owners to keep costs affordable.
Strengthening the management of commonholds, with new rules around appointing directors, clear standards for repairs, and mandating use of reserve funds; and
Providing an enhanced offer for homeowners – including requiring greater opportunities for democracy in agreeing the annual budget, clarifying how owners may change “local rules” over how a building is run and new protections for when things go wrong.

Clearly, the commonhold system needs to work for a range of parties, identified by the government as a trifecta of consumers, developers, and lenders.

You can read the entirety of the White Paper here.

What exactly is commonhold?

Commonhold differs from leasehold in a number of ways, allowing leaseholders real home ownership without threat of forfeiture or the need to extend a lease. It therefore gives much greater security to those who buy a flat. As pointed out in the Commonhold White Paper, commonhold type systems are used throughout the world, with England and Wales among the last countries in the world where it is in widespread use.

What are the key features of commonhold?

Commonhold represents freehold ownership, meaning that the property won’t revert back to a landlord who owns the building
No ground rent, unlike leasehold properties
No possibility of forfeiture, which can result in leaseholders being threatened with the loss of both their home and their equity
The ability to manage the annual budget for the building (although a managing agent can be appointed)
Homeowners have the ability to fire and hire a managing agent, unlike with leaseholds where the managing agent is appointed by the freeholder
Unlike leasehold, the value of a commonhold property doesn’t depreciate over time due to the absence of a lease

What are some of the areas the government is still working on resolving?

While the White Paper sets out the government’s plans to ban the sale of ‘new leaseholds’, the operative word, ‘new’, highlights the fact that existing leaseholds will not be banned, for now. The White Paper contains a number of areas in which the government are still working to resolve. These include:

An easier way to convert existing leaseholds to commonhold

For the millions of leaseholders in England and Wales, this will be the acid test as to whether the legislation is successful or not. At the moment, converting a leasehold property to commonhold would require full consent from the freeholder, leaseholder, as well as every lender. It can also prove to be impedingly expensive to buy out the lease, particularly if it is short. Two of the issues they identify with preventing an effective conversion process are

1. Non-consenting leaseholders, who do not wish to convert their property to a freehold, and;

2. Commonhold conversion changing people’s property rights, as non-consenting leaseholders and former freeholders would be subject to different rules and requirements that they did not consent to. The change could be seen as an interference under the Protocol 1 of Article 1 of the Human Rights Act 1998.

Two of the possible solutions identified by the Law Commission when it comes to non-consenting leaseholders are:

1. Mandatory leasebacks – with non-consenting leaseholders allow to continue living as leaseholders with the knowledge that their leases will be phased out over time and replaced with a commonhold system

2. Equity loan – non-consenting leaseholders would be required to convert and given an equity loan to pay for the conversion up front

Ban on the sale of new leasehold flats

Fundamental to the government’s plan is a ban on the sale of new leasehold flats to ensure that commonhold becomes the default tenure. The government will therefore not ban new leasehold flats until they are confident about the reformed commonhold model. A full consultation on a ban which be launched later in 2025.

Making commonhold work for blocks of all sizes

Finally, the government are also examining whether commonhold will need to be applied in exactly the same way for buildings of all sizes. For example, the standard model may not be possible for micro-commonholds, as well “very-large buildings, especially those which are taller than 11 metres”.

Our thoughts

Clearly, there is a lot of work for the government to do if they are to replace the centuries-old ‘feudal’ leasehold system with a ‘fairer model’. Leaseholders have been led down the garden path before by successive governments, with the previous Conservative government failing to live up to their manifesto commitments in terms of banning the sale of new leasehold homes. There will therefore be some understandable scepticism, with the pledge to replace leasehold with commonhold by the end of the parliament (2029) too distant for some.

The millions currently living in leasehold properties will also be concerned about the prospect of a two-tier property market being created for existing flats. The government will therefore need to take the time to ensure that they get the conversion process right.

Lisa’s Law handles all aspects of residential property and conveyancing work, including both freehold and leasehold properties. Contact us today if you require our assistance. And subscribe to our newsletter for further updates on all things property.

Have questions? Get in touch today!

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Sumit Singh

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Do unmarried couples who live together as cohabitees have the same rights as married couples?

It is a commonly held belief that if a couple lives together for a long time as cohabitees, they have the same rights as married couples or civil partners. This is untrue. Unmarried cohabiting couples, regardless of how long they have lived together, have far fewer rights than those who are married. “Common law marriages”, as they are generally called, are not recognised legally in the UK.

Figures released in January 2024 by the Office for National Statistics showed a sharp rise in cohabitation, with the proportion of married people in England and Wales falling below 50% for the first time. Clearly, this demonstrates a shift in the relationship landscape, with couples now more likely to move in together before getting married.

The number of people living together but not in a civil partnership or marriage increased by 1.4m between 2012 and 2022, a sizeable jump. This has sparked calls for greater rights and protections for cohabiting couples, which could include treating cohabitees the same as married couples for tax purposes, as well as giving them the right to inherit under the intestacy rules.

Sadly, not all relationships will last, so it is important for couples to ensure that they are well-aware of their legal rights should they break up.

What will happen to our home if we separate as cohabitees?

This depends on whether you and your partner jointly own the property or whether it is solely owned.

If you are joint tenants, you will normally have equal property rights. And if you are tenants in common, where you each own a share of the property, you will each be entitled to your share.

If the property is solely owned by one party, they will continue to have legal ownership of the property and the other party will not have any rights unless it can be shown that they have an equitable interest in the property. Beneficial interest can be created if the non-owning party:

Contributed to the purchase of the property, or
Made financial contributions to mortgage payments, house renovations etc, where it can be shown that there was a common intention to share ownership of the property.

What will happen to our bank accounts?

This again, depends on whether the account is in joint names. If the account is jointly owned, both parties will have an equal entitlement to it. However, if the account is solely owned, the other party will not have access to it.

What will happen to our children?

The mother will automatically have parental responsibility. The unmarried father will have parental responsibility if he is named on the child’s birth certificate, or if he is in a parental responsibility agreement with the mother.

Unmarried cohabitants can apply to the court to obtain financial support from the other party for the benefit of the child. Under Schedule 1 of the Children Act 1989, the court will be able to make the financial orders such as:

Lump sum payment
Transfer of property
Periodical payments

Claims could be made under the Trusts of Land and Appointment of Trustees Act 1996 as well.

Why should I enter a cohabitation agreement?

Unmarried cohabitants can enter into a cohabitation agreement to protect their rights in a cohabiting relationship. This is an especially good idea if you and your partner decide that you want to co-exist as cohabitees without getting married or entering into a civil partnership. A cohabitation agreement is a legal contract which normally sets out shared responsibilities between the couple and regulates how shared assets and properties between them should be divided if their relationship breaks down.

This gives couples the certainty of knowing what will happen if they separate in the future and can prevent disagreements from arising. It is essential to obtain professional legal advice as such agreements have to be drafted and executed properly so to ensure that it is legally binding.

If you are concerned that either you or your partner may die, it is also worth considering making a will. This will allow your partner to inherit your estate in the event that this happens.

If you are currently in a cohabiting relationship and want to safeguard your rights and interests by having a cohabitation agreement, please contact us. Our team of specialist family law solicitors have many years of experience and would be able to give you the advice you need.

Will cohabitation rights be further strengthened?

Included in the Labour Party’s winning manifesto was a pledge to reform cohabitation agreements. Specifically, they pledged to strengthen the rights of women in cohabiting relationships. In February 2025, after being asked to set out a timeline for reform, the minister in charge of family justice, marriage and divorce, Lord Ponsonby of Shulbrede, said that a formal consultation on cohabitation reform would be issued ‘to build public consensus on what cohabitation reform should look like’.

Have questions? Get in touch today!

Call us on 020 7928 0276, phone calls are operating as usual and we will be taking calls from 9:30am to 6:00pm.

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Sumit Singh

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Three New Colleagues Join Lisa’s Law

We are delighted to welcome three new colleagues to Lisa’s Law. Angel joins as a Solicitor in our Immigration team, while Ian and Yi Ling add to the growing number of legal assistants at the firm.

Angel

Angel qualified as a solicitor in December 2022. She obtained her LLB from the University of Birmingham in 2018, followed by her Legal Practice Course and LLM from the University of Law in 2019. She began her career as an immigration paralegal, progressing to a trainee solicitor while completing her Professional Skills Course at BPP University. Before joining Lisa’s Law, she gained experience at boutique and city immigration law firms in London.

Angel advises on both personal and corporate immigration matters, with a particular focus on sponsor licence applications, sponsorship compliance and work visas.

She is fluent in English, Cantonese, and Mandarin.

In her free time, Angel enjoys cooking, travelling, and practising yoga.

Ian

Having completed my LLB at Swansea University with First Class Honours, Ian proceeded to the Legal Practice Course with Master of Laws at the University of Law, London Bloomsbury. He graduated with a distinction in 2023.

Prior to joining Lisa’s Law, Ian interned at various law firms in London and Hong Kong. He also co-founded a start-up company that is currently developing a nutritional app to promote healthy eating to university students, allowing him to gain experience in corporate compliance and business operations. At Lisa’s Law, he will be working on immigration, conveyancing, as well as some commercial matters.

Besides law, he also has an interest in cooking, swimming and motorsports.

Ian is fluent in English, Cantonese and Mandarin.

Yi Ling

Yi Ling completed her LLB, Bar Training Course, and LLM at Cardiff University. She has experience in family law and private client matters and is particularly interested in these areas.

Yi Ling has also previously gained exposure of immigration and conveyancing law. She aims to qualify as a solicitor and obtain a mediation certificate to further support clients in resolving legal disputes.

Outside of law, she enjoys visiting museums and learning about history.

Yi Ling is fluent in English and Mandarin.

Have questions? Get in touch today!

Call us on 020 7928 0276, we will be taking calls from 9:30am to 6:00pm.

Email us on info@lisaslaw.co.uk.

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Sumit Singh

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UK Court Addresses the Interpretation of Personal Data in a Data Protection case for the first time

Personal data is a concept we all know but we all seem to have different interpretations of. What exactly does it mean? And how does the law interpret it? The UK court, for the first time, was asked to determine the interpretation of the meaning of “personal data” as a preliminary issue in a data protection case, without related defamation claims.

Background

This High Court case involves two former senior executives of the XIO Group who were suing the Wall Street Journal for data protection violations related to them seeking the removal of two articles published in 2017 and 2018.

The first article detailed a civil claim by Chinese billionaire Xie Zhikun, who accused the executives of conspiring to defraud him of nearly $1 billion. The second article questioned the transparency of XIO’s acquisition of JD Power. The claimants argue that the articles contain misleading personal data that harms their reputations and affects their ability to secure funding for their investment business.

They also assert that the continued publication of the articles breaches UK GDPR and the Data Protection Act 2018, and are seeking damages. The court has rejected the defendant’s argument that the claim is a disguised defamation case and will hold a hearing to address two preliminary issues: the nature of the personal data in the articles and whether it constitutes criminal offence data under EU regulations.

Legal Framework and Court’s Decision

The court applied the approach in the case NT1 v Google LLC [2018] EWHC 799 (QB), utilised the ‘single meaning rule’ to determine the meaning of the data, and the ‘repetition rule’, which is an established principle in defamation law, to assess the inference meaning.

The Court stressed that it should be applied in the consideration of data protection claims to interpret law consistently and fairly. In the judgement, the court clarified the interpretation of personal data, concluding that the news articles implied that Xie Zhikun had initiated a civil lawsuit against XIO executives for conspiracy to defraud him, and that one of the claimants was receiving undisclosed profits from the alleged fraud.

The court then considered ‘criminal offence data’ under the UK GDPR and in accordance with Article 10 of Assimilated Regulation (EU) 2016/679, It found that the articles reported allegations from civil proceedings, indicating that the true situation was unclear. As a result, the court ruled that the personal data of the claimants did not qualify as ‘criminal offence data’ under Article 10, meaning the stricter protections for processing such data under the UK GDPR were not applicable. This decision clarifies the limits of what constitutes ‘relating to’ criminal convictions or offenses.

Conclusion

The implication of this judgement is profound: it establishes a way for claimants to pursue data protection claims to address reputational harm without needing to demonstrate ‘serious harm’ as required by the Defamation Act 2013. However, this also poses risks as it may allow personal data claims to bypass the stricter defamation law requirements, potentially undermining freedom of expression. Publication of public interest with unproven criminal allegations or settled civil cases will need to be justified, as failure to do so may lead to personal data claims even after defamation claim limitations have expired.

Have questions? Get in touch today!

Call us on 020 7928 0276, we will be taking calls from 9:30am to 6:00pm.

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Sumit Singh

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Tammina v SSHD – Exploring the Fairness of Sponsor Licence Revocation

Many migrants in the UK hold work visas, with their immigration status heavily reliant on their employer’s sponsorship eligibility. If an employer’s sponsor licence is revoked, affected employees have limited time to address their immigration status, creating significant uncertainty. Protecting their rights and interests in such situations is a matter of widespread concern.

The case we’re discussing today, Tammina and Another v Secretary of State for the Home Department (SSHD), serves as a crucial example for migrants facing sponsorship-related issues and explores the boundaries of procedural fairness in immigration law.

Background of Tammina v SSHD

Mr Rajasekhar Tammina, the appellant, arrived in the UK in 2008, holding various visas, including a Tier 2 (General) work visa sponsored by Ratna Marble and Granites. His wife, Vinoda, held leave as a dependent of his Tier 2 visa.

On March 1, 2017, the appellant applied for a Tier 2 visa extension, but a Home Office compliance visit in June questioned his job’s authenticity and whether it met the necessary occupational standards. As a result, Mr. Tammina’s extension application was refused on July 20, 2017, and his employment ended.

While Mr. Tammina pursued a judicial review of the refusal decision, the SSHD suspended Ratna’s sponsorship licence on October 20, 2017, and later revoked it on December 22, 2017. However, Mr. Tammina was not informed of this revocation until February 8, 2018, when the SSHD reconsidered and ultimately refused his application on the basis that his COS had been invalidated.

Challenging this decision, Mr. Tammina argued that the SSHD’s failure to notify him of the revocation deprived him of the opportunity to take remedial action, such as finding a new sponsor, citing R (Pathan) v SSHD [2020] UKSC 41(“Pathan”).

Court Judgment on Tammina v SSHD

The Court mainly assessed whether the SSHD’s failure to promptly notify Mr. Tammina of his employer’s licence revocation constituted procedural unfairness.

The Appellant raised many grounds of appeals, some of which were heard in closed hearing and others in open hearing.

The Court held the following in relation to some of the arguments presented by claimants:

Procedural Unfairness

The court examined whether the SSHD’s decision making process was unfair. The appellants argued that the SSHD’s decision-making process was unfair because Mr. Tammina was not informed of his sponsor’s licence revocation before his application was refused. This deprived him of a chance to seek an alternative sponsor. The SSHD disagreed and maintained that Mr. Tammina had ample time to address his situation and find an alternative solution.

The court emphasized that procedural fairness requires the Secretary of State to inform an applicant of their sponsor’s licence revocation promptly, but this requirement may be mitigated if the applicant already has prior knowledge of the issues.

Reliance on Pathan Precedent

The appellants argue that their case was identical to Pathan precedent, where the Supreme Court ruled that failing to notify an applicant of their sponsor’s revocation was unfair and placed them at a disadvantage. The SSHD argued that Mr. Tammina’s case was different from Pathan because he was aware of the issues surrounding his sponsor’s compliance before the licence was revoked. Unlike in Pathan, Mr. Tammina knew that his employer’s licence had been suspended, and he had discussed the issue with his employer. Thus, he was not taken by surprise.

The court stated that Mr. Tammina had prior knowledge of the investigation into the sponsor licence and had the chance to take proactive steps, especially when the revocation was partly based on concerns about Mr. Tammina’s role, meaning he was not an innocent bystander but involved in the circumstances that led to the decision.

Consequently, the court distinguished between Pathan and the present case, concluding that there was no obligation on the SSHD to notify appellants of the revocation under these circumstances.

The tribunal finally held, among other things, that Mr. Tammina was not treated unfairly by the SSHD. The appeal was therefore dismissed.

Our comments

This case emphasises the principle that procedural fairness is highly context dependent. Procedural fairness is not an absolute right but rather one that must be assessed based on circumstances. While Pathan set an important legal precedent, it does not apply universally to all sponsorship revocation cases. Prior knowledge of an employer’s compliance issues can mitigate the need for immediate notification.

The judgment signals the responsibility of visa holders to remain informed about their employer’s compliance status and to seek alternative options promptly. While the Home Office would not be obligated to notify every affected employee when a sponsor loses its licence if the employee was aware of prior compliance concerns, employers and sponsored employees should keep transparent also communication about compliance risks.

Whether you are a sponsor employer or a sponsored employee, should you need any advice on monitoring the sponsor’s status and planning contingencies, please do not hesitate to contact Lisa’s law Immigration team. Our experienced team would be happy to assist you.

Have questions? Get in touch today!

Call us on 020 7928 0276, we will be taking calls from 9:30am to 6:00pm.

Email us on info@lisaslaw.co.uk.

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Understanding the Help to Buy Redemption Process

The Help to Buy scheme has provided many first-time buyers with the opportunity to step onto the property ladder. However, as circumstances change, many homeowners find themselves needing to repay their Help to Buy equity loan, a process known as Help to Buy redemption. If you’re considering redeeming your Help to Buy loan, this guide outlines the key steps involved and how a solicitor can assist you.

Help to Buy redemption refers to the repayment of the equity loan provided by the government under the Help to Buy scheme. This repayment can occur either when you sell your property or when you decide to repay the loan without selling. The amount you repay is based on the market value of your property at the time of redemption, not the amount initially borrowed.

Key Steps in the Help to Buy Redemption Process

1. Obtain a Market Valuation

The first step in the redemption process is obtaining an independent market valuation of your property. This valuation must be carried out by a Royal Institution of Chartered Surveyors (RICS) accredited surveyor. The valuation report is valid for three months and forms the basis for calculating the amount you need to repay.

2. Submit the Valuation to Help to Buy

Once you have the valuation report, it must be submitted to Help to Buy. Along with the valuation, you’ll need to complete and submit a redemption application form.

3. Receive the Redemption Figure

Help to Buy will review the valuation and provide you with a redemption figure. This figure includes the percentage of the property’s market value that corresponds to your equity loan, as well as any applicable fees and charges.

4. Appoint a Solicitor

A solicitor is required to handle the legal aspects of the redemption process. They will liaise with Help to Buy, prepare the necessary documents, and ensure the repayment is completed smoothly. If you’re re-mortgaging to fund the redemption, your solicitor will also work with your mortgage lender.

5. Arrange Payment

Once the redemption figure is agreed upon, your solicitor will arrange for the repayment of the loan. This may involve transferring funds from a remortgage, personal savings or sale of your property. The solicitor will also handle any outstanding fees payable to Help to Buy.

6. Obtain Confirmation

After the payment is made, Help to Buy will confirm the redemption of your Help to Buy loan and remove their charge from the property’s title at the Land Registry.

Common Challenges and How to Overcome Them

Valuation Disputes: If you disagree with the redemption figure based on the valuation, you may request a review or provide additional evidence to support your case.
Time Constraints: The valuation report is valid for only three months. If the process is delayed, you may need to obtain a new valuation, which can incur additional costs.
Legal Complexity: The redemption process involves various legal and financial steps. Working with an experienced conveyancing solicitor ensures that all requirements and timeline are met, minimising stress and potential errors.

An experienced residential conveyancing solicitor’s role is to simplify the redemption process and ensure a successful outcome. By understanding the steps and seeking professional guidance, you can confidently manage your Help to Buy redemption and take the next step in your property journey.

Have questions? Get in touch today!

Call us on 020 7928 0276, we will be taking calls from 9:30am to 6:00pm.

Email us on info@lisaslaw.co.uk.

Use the Ask Lisa function on our website. Simply enter your details and leave a message, we will get right back to you: https://lisaslaw.co.uk/ask-question/

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Sumit Singh

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How Can Leaseholders Extend Their Lease?

In a move celebrated by many leaseholders, Section 27 of the Leasehold and Freehold Reform Act 2024 was brought into effect on 31/01/2025. This legislation removes the two-year qualifying period requirement for leasehold extension.

While leaseholders may ostensibly feel like homeowners, the nature of a lease means that the property will return to the freeholder at the end of the lease unless renewed. The ability for a leaseholder to be able to renew their lease is therefore vital in order to protect the valuation of their property. Let’s examine how leaseholders can extend their lease in this article.

Who can request an extension?

Any tenant who holds a long lease in a flat can make such a request. If there are two or more long leases (say one is 25 years, granted out of a longer lease of 50 years, which was further granted out of a even longer lease of 90 years) in the same flat, all the leaseholders can make such request, with the occupational tenant or the one who is close to the occupational tenant having the priority right.

If a flat forms part of a block of flats which is under a long lease, the leasehold of the flat can request for an extension of the lease for the whole block.

How long can a tenant request for the new lease to be?

A tenant can currently renew a lease by 90 years, in addition to the unexpired residue term (time remaining) of the current lease. Once section 33 of the Leasehold and Freehold Reform Act 2024 is brought into effect, this will be increased to 990 years.

What is classed as a long lease?

A long lease is one which is:

granted for a term of more than 21 years, regardless of any right to forfeit, break, etc
granted for a shorter term but with a right for perpetual renewal
terminable on death, marriage or civil partnership (ie a lease taking effect under section 149(6) of the Law of Property Act 1925), although there are special rules for determining whether in any particular case such a lease meets the definition of a long tenancy
terminable on an unknown date (i.e. a lease containing a so-called ‘Prince of Wales clause’)
granted under the right to buy provisions (Part V of the Housing Act 1985) or pursuant to the (now abolished) right to acquire on rent-to-mortgage terms
which is a shared ownership lease and the tenant’s share is 100%, or
granted pursuant to the right to buy which is enjoyed by certain tenants of registered social landlords

How much will the rent for the new lease be?

When a lease is renewed, it will have to be a peppercorn (very low, symbolic value such as £1 per year). However, the tenant will need to pay a premium for such a new lease. Furthermore, the tenant will continue to pay the rent under the terms of the existing lease for the residue term.

When is it not possible to extend a lease?

In some circumstances, it may not be possible to extend a lease. This includes situations such as where:

The flat has been let by a charitable housing trust for the purposes of its charitable functions
The lease is a business tenancy protected by the Landlord and Tenant Act 1954 (LTA 1954) (for more information, see Practice Note: LTA 1954 business lease renewal—termination)
The lease was granted by sub-demise out of a superior lease other than a long lease, the grant was made in breach of the terms of the superior lease, and there has been no waiver of the breach by the superior landlord
The property is held by the Crown, although the Crown has undertaken to allow enfranchisement on the same terms as the Land Registration Act 1967 unless the land is within an excepted area, in which case a lease extension will usually be granted—see the Crown Estate policy and guidance papers for further information
The property is vested inalienably in the National Trust, or
The property is within the precinct of a cathedral church
In certain circumstances where the lease is coming to an end, including where ‘any proceedings are pending to enforce a right of re-entry or forfeiture terminating [the] lease of the flat’, except with leave of the court. Leave will only be granted if the court is satisfied that the claim is not being made to avoid the consequences of the breach for which the landlord is forfeiting

What do leaseholders need to take into account when extending a lease?

Valuation

Although a formal valuation is not required, it is strongly advisable for a tenant to obtain valuation advice as to the likely premium and other amounts payable before serving a section 42 notice so that the likely costs are known before embarking upon the statutory process.

A valuation will also inform the decision as to the proposed premium to be inserted in the notice of claim.

Finance

The tenant will need to ensure that they have the necessary finance in place to be able to pay the premium (payable on completion) and the statutory deposit (which is payable to the landlord within 14 days of request at any time following service of the notice of claim).

The deposit payable is the greater of £250 or 10% of the figure for the premium specified in the notice of claim (see below: Deposit, deducing title and access).

Information

It is essential, before embarking upon the statutory process, to identify the freeholder and any intermediate landlords.

Requesting an up-to-date ground rent or service charge demand to identify the immediate landlord’s details can be the first step in this process.

An index map search or a search through one of the National Land Information Service (NLIS) channels should reveal the freeholder and intermediate leasehold interests. However, if there are unregistered titles specific enquiries may need to be made of the known landlords.

s. 41 of the Leasehold Reform, Housing and Urban Development Act 1993 provides that the tenant may serve notices requiring information to be provided.

What is the process of making a leasehold request?

1. The qualifying tenant can make a claim by serving a section 42 notice on a competent landlord who can be the immediate or other superior landlords who is able to grant the lease required.

2. With 2 months of receipt of the section 42 notice, the landlords should serve a section 45 counter notice to the tenant, to either admit or decline the request. If the landlord wants to decline the claim, they need to apply to the County Court for a declaration that the tenant has no right to make such a claim within two months of serving the counter notice.

3. If the landlord admits the section 42 claim, the parties will negotiate the terms of the new lease. If they cannot agree with them within two months of the service of the counter notice, an application can be made to the first-tier tribunal for the Court to decide on the terms.

4. Once the terms are determined, the parties can then draft a new lease on the terms.

Is informal negotiation possible?

Of course! Tenants and landlords can always talk to each other and reach agreements on the premium and terms of new leases without following the above procedure. In most cases, informal negotiation can come out as a cheaper and faster way to resolve the relevant issues.

Final thoughts

Lease extension is a complicated topic, and at a time when reform to the system is expected, leaseholders may not be sure about whether to extend their lease or wait for further legislation to become law. This may be particularly true if your lease is nearing the 80-year point, when “marriage value” kicks in. For expert advice, including lease extension, contact our conveyancing team today.

Have questions? Get in touch today!

Call us on 020 7928 0276, we will be taking calls from 9:30am to 6:00pm.

Email us on info@lisaslaw.co.uk.

Use the Ask Lisa function on our website. Simply enter your details and leave a message, we will get right back to you: https://lisaslaw.co.uk/ask-question/

For more updates, follow us on our social media platforms! You can find them all on our Linktree right here.

Sumit Singh

See Full Bio

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