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News and Insights

This week, the two major parties, Conservative and Labour, launch their election manifesto. On Tuesday, it was the turn of the governing Conservative Party to announce their plans about what they would do if they were to beat the odds and win next month’s general election. Let’s take a look at the Conservative Party immigration policies.

 

While the Conservatives have repeatedly pledged to reduce the levels of migration during their 14 years in office, it has continued to rise, peaking at 1.2m in 2023, a net migration figure of 685,000. However, recently introduced measures such as banning the majority of international students and care workers from bringing dependants, increasing the salary threshold and minimum income for the skilled worker and family visas, as well as the abolition of the 20% going rate salary discount for shortage occupations are likely to have an impact.

 

As a London law firm which specialises in immigration law, we will take you through the Conservative Party’s immigration policies to keep you informed about your choice ahead of the upcoming general election on 4th July.

 

Illegal migration

 

The Rwanda plan

 

The Rwanda plan forms a key plank of the Conservatives’ plan to tackle illegal migration, particularly the crossing of small boats. Rishi Sunak has championed the plan since becoming Prime Minister, despite it being fraught with legal challenges, including a decision by the Supreme Court in November 2023 which found the plan to be unlawful. Despite this decision, the Safety of Rwanda (Asylum and Immigration) Act 2024 declared Rwanda a safe country and overruled the courts.

 

The Conservatives have stated that they would begin flights of so-called illegal migrants to Rwanda, starting from this July. Some have questioned whether this is true, given that Sunak decided to call the general election prior to the point when the Rwanda plan came to fruition.

 

The manifesto also addresses the potential of challenges at the European Court of Human Rights by stating that, ‘if we are forced to choose between our security and the jurisdiction of a foreign court, including the ECtHR, we will always choose our security’.

 

Illegal Migration Act

 

The Conservatives will also bring the Illegal Migration Act into force in order to attempt to prevent challenges against removal, clear the asylum backlog, end the use of hotels and process all claims in six months.

 

The Act means that anyone arriving in the UK via ‘irregular’ means, such as crossing the English Channel in a small boat, will have their asylum claim declared “inadmissible”. It also places a legal duty on the Home Secretary to remove anyone arriving irregularly to their home country or a “safe third country”, Rwanda.

 

Other policies

 

They also plan to:

 

  • Crack down on organised immigration crime through the National Crime Agency and intelligence services in order to “disrupt supply chains and people smugglers”
  • Reform asylum rules by working with other countries to introduce laws to tackle what they call an “age of mass migration”.
  • Restrict visa access from countries that don’t work with the UK to combat illegal migration
  • Give parliament control of the number of places offered on safe and legal routes, as well as introduce a cap based on capacity of local areas

 

Legal migration policies

 

The Conservatives also wish to significantly cut legal migration. Further to recent changes which have been made, they would:

 

  • Increase all visa fees and remove the student discount for the Immigration Health Surcharge (IHS) in order to fund public services
  • Raise the Skilled Worker visa threshold and Family Visa income requirement with inflation automatically
  • Require migrants to undergo a health check in advance of travel. If they are likely to be a burden on the NHS then their IHS would be higher, or they would be required to buy health insurance

 

Legal cap on migration

 

In order to reduce legal migration, the Conservatives would introduce a legal cap on migration for work and family visas. This cap would be set at a level which “explicitly takes into account the costs and benefits of migration” and would fall every year of the next Parliament.

 

Parliament would also be given an annual vote on the level of the migration cap, and they wouldn’t allow any form of free movement to return.

 

Our thoughts

 

Clearly, the Conservative Party have announced an immigration policy platform in their manifesto which is designed to appeal to voters who wish to see a significant reduction in migration, both legal and illegal. There are no real surprises in the manifesto when it comes to migration, with policies like the Rwanda Plan and Illegal Migration Act front and centre.

 

Nevertheless, while the Conservatives may talk a tough game in their manifesto about migration, their record in this area means that they will find it difficult to convince voters. After all, net migration was around 250,000 when they came into office in 2010, and now stands at 685,000, down slightly from the previous year’s record of 764,000.

 

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.

 

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.

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James Cook

Today, we are going to follow up our article on what steps to take when someone dies by informing you about the duties of personal representatives, otherwise known as executors and administrators. Personal representatives are people who have the personal responsibility and legal authority to ensure that the deceased’s estate is distributed correctly.

 

While ‘personal representative’ is used as a general term, it is important to point out a key distinction between executors and administrators.

 

An executor is directly appointed by a valid Will or a codicil as someone charged with the responsibility for administering the testator’s property and carrying out the provisions of the Will. They are the person who will be seeking to obtain what is termed a Grant of Probate. On the other hand, an administrator is relevant in situations where there is no Will involved. Without a Will, the person responsible for dealing with the deceased’s estate is the administrator, usually the next of kin. However, there are a few other ways in which an executive may be appointed without being expressly appointed in a will.

 

Miss the previous article in which we discussed what the first steps to take are following a death? Click here.

 

family law banner

 

What is a personal representative responsible for?

 

A personal responsibility is legally responsible for the money, property and possessions of the deceased from the date of death until the assets have been distributed to the beneficiaries.

 

You may have to deal with the following during the aforementioned administration period:

  • The payment any debts left by the person who died
  • Sale of assets such as properties or shares
  • Pay Income Tax on things like rental income from property, profits from a business or interest from investments
  • Pay Capital Gains Tax on profits from selling shares, investments or property
  • Reporting of the estate value, income and tax liability to HM Revenue and Customs

 

How can a personal representative be appointed?

 

There are a few methods in which a personal representative can be appointed. These include the following:

 

  • In the Will
  • Implied within the Will
  • Or by a person nominated in the Will to appoint an executor. If this person is nominated in the Will, they may be able to appoint themselves as an executor
  • Through the chain of representation
  • By the court

 

However, the executor must still accept the office of executor in order for the grant of representation to be issued to them. If an executor does not wish to take a grant then they may have so-called ‘power reserviced’ or renounce the office.

 

The chain of representation

 

The chain of representation is an important aspect of estate administration which ensures that the deceased’s wishes are honoured in the event that personal representatives die before completing their role.

 

Let’s look at the following case as an example:

 

1. John, the Executor: John is named executor in Paul’s will and starts administering the estate.

2. John Dies: John dies before the administration of Paul’s estate is complete

3. Mary, the Successor: John’s Will names Mary as his executor, so she takes over.

4. Mary administers the estate: Mary can administer John’s estate under the chain of representation, as well as Paul’s.

However, if an executor who is in the chain dies without a valid Will in place, then Rules of Intestacy will determine the person with the authority to administer the Estate.

 

What are the powers of personal representatives?

 

Once the executor has confirmation of their authority to act via the grant of probate, or grant of letters of administration for an administrator, they have a number of powers, duties as well as the responsibility of renumeration. Their powers include the following:

 

  • sell, mortgage or lease
  • insure
  • postpone distribution
  • appropriate
  • accept receipts for a minor’s property
  • pay money into court
  • invest
  • compromise
  • maintain a minor
  • advance capital
  • run the deceased’s business
  • employ an agent
  • employ nominees and custodians

 

Although this may seem like a monumental task, personal representatives have the choice to delegate all of any of these responsibilities to an agent. Our family law team have the experience to help you all with all manners of probate, including obtaining a grant of probate, responsibilities of being an executor, as well as administration of an estate.

 

Liability of personal representatives

 

https://www.rothleylaw.com/articles/personal-representatives-duties-and-responsibilities/

 

Personal representatives should also be aware that they may be held personally liable for mistakes which are made while administering the estate. In terms of the personal representative’s dealings with third parties, beneficiaries of the deceased’s Will, and beneficiaries on an intestacy, they may find themselves liable through their actions or omissions.

 

During the period where the estate is being administered, personal representatives are personally liable for the following:

 

  • Meeting their obligations under any contracts they enter into
  • Any torts they commit
  • Any losses to the estate resulting from their breach of duty

 

It is advised that PRs should take all possible steps to obtain the details of creditors and beneficiaries of the estate before administering. This will help to ensure that they are not left open to personal liability as a PR.

 

As a result, notice of the PR’s intention to distribute the estate must comply with section 27 of the Trustee Act 1925 to protect them from liability. The distribution of the estate must be advertised in the London Gazette as well as any newspaper which is based in the area where the deceased lived or carried out their business.

 

Our thoughts

 

 

As you can see, personal representatives play a crucial role in estate distribution and administration. Without a Will, your personal representatives will be chosen according to intestacy rules, which may not reflect your wishes. Creating a Will allows you to specify who you want to administer your estate. It’s advisable to appoint someone you trust and who is capable of managing your estate effectively. Ideally, you should appoint at least two executors, and in some cases, professional executors such as solicitors might be a suitable option. If you have any questions about this, please feel free to contact us.

 

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.

 

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.

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James Cook

This property dispute involves a barn. In this case, the claimant wanted a declaration that the defendants did not have the right to enter the barn they were converting. Initially, there was an oral agreement for the claimants to sell the barn to the defendants, who then made significant renovations. However, the relationship soured when they could not formalise the agreement in writing. The claimant argued that there was an agreement giving him the option to repurchase the barn. Learn more about this case and the important role which can be played by dispute resolution, which was rejected by the defendants.

 

Yitong namecard

 

The Issue and the Law

 

The main issue in this case was whether the Defendants had the right to demand the transfer of the property known as “the Barn” from the Claimant, who also owns a larger property called Church Farm. If the court ruled in favour of the Claimant, the question arises whether injunctions requested in the claim should still be granted, considering the likelihood of the Defendants trespassing. Similarly, if the Defendants succeeded in their counterclaim, the necessity of the relief sought needed to be evaluated. The court should consider the guidance from Gestmin SGPS S.A. v Credit Suisse (UK) Limited on how to assess evidence, especially the importance of contemporaneous documents.

 

While the Claimant and his witness believe there was an agreement for a buy-back option, documents from solicitors suggest otherwise. The court therefore had to weigh the oral evidence against the written documents to determine the true agreement between the parties.

 

The Judge dealt with the law and interaction between proprietary estoppel, constructive trust and s. 2 of the Law of Property (Miscellaneous Provisions) Act 1989. He then analysed his inspection on the evidence provided by both parties in detail, in order to establish the intention of the parties.

 

The Conclusion and Warning on use of Mediation

 

The court has ruled in favour of the Defendants in this case. The claim has been dismissed, and the Defendants are entitled to enforce the terms of the oral agreement through specific performance. The court believes that granting any lesser relief would not be appropriate, considering the nature of the agreement and the significance of the Barn to the Defendants.

 

Notably, the Judge mentioned the recent decision of the Court of Appeal in Churchill v Merthyr Tydfil County Borough Council, stressing again the importance of mediation and dispute resolution, as well as concern over the Defendants’ rejection of mediation in this matter. The Judge indicated that he will deal with outstanding matters and costs when the judgment is handed down. It might mean that the Defendants’ costs claim being reduced due to the rejection.

 

The judgment was published on 31 May 2024.

 

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.

 

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.

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James Cook

The long-awaited Leasehold Reform Act has finally escaped Parliament’s legislative maze and become law. We briefly touched on the passing of the Leasehold and Freehold Reform Bill, now the Leasehold and Freehold Reform Act, in an article summarising the parliamentary “wash-up” period before the general election.

 

Find out more about some of the other important bills that passed before the dissolution of Parliament here.

 

Today though, we take an in-depth look at the Leasehold and Freehold Reform Act. Despite the drumming up of the act by the government as a landmark piece of legislation, it has been beset by hurdles since its inception. Originally touted as a bill to fundamentally reform, and eventually abolish the leasehold system, it has been significantly watered down over time.

 

Particularly controversial has been the failure to reduce ground rent to zero, a feature which formed part of the Conservative Party’s 2019 election manifesto. But what changes does the Leasehold and Freehold Reform Act make to the leasehold system?

 

Let’s find out.

 

Lisa's Law property banner

 

Banning the sale of new leasehold houses

 

Leasehold, which dates back to feudal society, means that leaseholders own their property but not the land it is on. For flats this is arguably a more logical arrangement than it is for houses given that those who live in flats share the land they live on with others.

 

Many leasehold new build houses have ground rents which double every ten years, something which can lead to costs spiralling out of control for owners. For example, ground rents may start at £1000 a year, but after 40 years of doubling every decade they could be costing someone £16,000 a year!

 

To tackle this, the government included a ban on the sale of new leasehold houses in the act other than in “exceptional circumstances”. The intention of this is to ensure that every new house in England and Wales will be freehold from the outset. Scotland, on the other hand, fully abolished leasehold in 2012.

 

Make it cheaper and easier to extend a lease or buy the freehold

 

Another major change is the announcement that the Act will make it cheaper and easier for existing leaseholders who live in houses and flats to both extend their leasehold and buy the freehold for the property.

 

It will also see the introduction of a new standard lease extension term of 990 years for leasehold flats and houses, up from the current 90 years. This will give greater security of ownership for leaseholders by ensuring they do not have to worry about future lease extensions.

 

Furthermore, leaseholders will no longer have to wait two years to benefit from the aforementioned changes as this stipulation is being removed. This will be greatly welcomed by leaseholders by giving them greater rights over their property from day one of ownership.

 

Expands rights for leaseholders to manage their building

 

Woman and man having had success in finding a new apartment wanting to move in

 

The Leasehold and Freehold Reform Act will also supposedly make it cheaper and easier for leaseholders to take over the management of their building.

 

At the moment, leaseholders who live in mixed-use buildings (ones which are both residential and non-residential), are unable to collectively buy the freeholder or take on the right to manage the building if more than 25% of it is non-residential. This is now being increased to 50%, meaning a greater number of leaseholders will be able to take on the right to manage their building.

 

Greater transparency for leaseholders

 

Another aspect of the Act is giving leaseholders greater transparency over their service charges. This will be done by ensuring that freeholders and managing agents issue their service charges in a “standardised format” which can be more easily scrutinised and challenged by leaseholders.

 

Scrapping the presumption that leaseholders pay their freeholders’ legal costs

 

Currently, leaseholders who wish to challenge poor practise by freeholders face the barrier of being the party which is presumed to have to pay the freeholders’ legal costs.

 

The Leasehold and Reform Act subsequently removes this presumption.

 

Expanding rights of redress

 

Rights of redress will also be greatly expanded by extending access to redress schemes for leaseholders to challenge poor practise. Freeholders who manage their building directly will be required by the government to belong to a redress scheme, allowing leaseholders to challenge them directly.

 

Furthermore, homeowners who own leasehold properties on private and mixed tenures estates will be granted comprehensive rights of redress by the Leasehold and Freehold Reform Act. They will also receive more information about the charges they pay and the ability to challenge how reasonable those charges are.

 

What happens now the Leasehold and Freehold Reform Act has passed?

 

It is our observation that despite that the leasehold bill has been passed into law, key measures such as banning leasehold houses and abolishing marriage value will not come into force for up to two years. Ground rent for existing leaseholders remains unchanged, and there is no ban on the forfeiture of long residential leases. Additional legislation is needed to fill in the gaps, with potential implications for lease extension costs. The bill is seen as a starting point, with ongoing concerns about leasehold contracts and costs that may need to be addressed by the Competition and Markets Authority.

 

While the changes have become law, it’s important to point out that the Leasehold and Freehold Reform Act has not yet taken effect. Nor is it yet known exactly when they will. The course that the future of the leasehold system takes is largely dependent on the outcome of the upcoming UK general election on the 4th of July.

 

How do the two main parties differ on leasehold reform?

 

While the governing Conservative Party previously pledged to scrap ground rent, which failed to come to fruition, the Labour Party have consistently promised to fundamentally transform the system entirely. Nevertheless, the dropping of their previous pledge to abolish the leasehold system within 100 days will cause a certain amount of consternation for leaseholders.

 

The Labour Party continue to maintain that they plan to replace leasehold with a ‘fairer’ system like commonhold, however it remains to be seen what measures will be included in both parties’ election manifestos.

 

Of course, we at Lisa’s Law will do our very best to keep you updated on any changes. Until then, subscribe to our newsletter so you don’t miss anything!

 

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.

 

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.

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James Cook

We are thrilled to share a significant victory for our client in a complex immigration appeal. This case not only highlights the intricacies of immigration law but also celebrates a rare achievement: winning an appeal for a sponsor who is the child’s grandfather, not a parent. Sole responsibility can be a complex issue and we are very pleased we could help our client.

 

Find out more about sole responsibility for a grandchild in this article.

 

Skilled Worker Visa article

 

Background of the Case

 

Our client, a young child aged 3 years old who was born in China, applied for entry clearance to the UK under Appendix FM of the Immigration Rules on July 14, 2023. The child’s grandfather, SN, acted as the sponsor as the child’s parents had recently passed.

 

However, the initial application was refused on September 20, 2023, on the grounds that the sponsor did not meet the eligibility relationship requirements, particularly concerning sole responsibility for the child. Additionally, the decision suggested that there were no exceptional circumstances warranting a breach of Article 8 of the European Convention on Human Rights (ECHR).

 

Key Issues at Stake

 

The tribunal had to consider three primary issues:

 

1. Whether the sponsor had sole responsibility for the appellant.

2. If there were serious and compelling family or other considerations making the appellant’s exclusion undesirable.

3. Whether the appellant’s circumstances were exceptional enough to render refusal a breach of Article 8 due to unjustifiably harsh consequences.

 

Arguments and Evidence Presented

 

During the hearing, both parties presented their arguments. The Home Office maintained that the sponsor did not have sole responsibility for the child and that there were no serious or compelling reasons to grant entry. They pointed out the lack of detailed information and supporting evidence about the sponsor’s involvement in the child’s life, including the absence of photographic evidence of them together and the fact that the grandfather lives in the UK.

 

On behalf of our client, we argued that the sponsor had consistently made key decisions regarding the child’s welfare, such as arranging private healthcare and making significant financial contributions. Crucially, it was undisputed that the sponsor was the child’s sole legal representative under Chinese law. We also highlighted the exceptional circumstances of the case: the child’s father had passed away, and the mother had relinquished custody, leaving the grandfather as the primary caregiver.

 

Tribunal’s Findings

 

The tribunal found our evidence compelling. The judge acknowledged the credible and candid testimony of the sponsor and his wife. They had clearly demonstrated their responsibility for the child’s welfare, including financial support and healthcare decisions. The court documentation and the lack of challenge from the Home Office further corroborated our client’s case.

 

Highlighting the Grandfather’s Role

 

What makes this case particularly remarkable is the fact that the sponsor was the grandfather. Winning such appeals is rare when the sponsor is not a parent. The judge recognised that the sponsor, despite being a grandparent, played an integral role in the child’s life and welfare, fulfilling the requirements of paragraphs E-ECC.1.2. to 1.6. of Appendix FM.

 

Article 8 ECHR Considerations

 

The tribunal also considered the appeal under Article 8 of the ECHR, which concerns the right to private and family life. The judge noted the tragic circumstances surrounding the child’s life and the significant role the sponsor played following his son’s death. Given these factors, it was found that refusing the application would unjustifiably harm the child’s emotional development and the sponsor’s family life, thus breaching Article 8.

 

Conclusion

 

The tribunal’s decision to allow the appeal under both the Immigration Rules and Article 8 of the ECHR is a testament to the strength of our client’s case and the dedication of our legal team.

 

We are delighted with this outcome, which not only reunites a family but also sets a positive precedent for similar cases in the future. If you or someone you know is facing a complex immigration issue, we are here to help. Contact us for expert legal assistance tailored to your unique circumstances, whether that’s sole responsibility or other issues.

 

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.

 

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.

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James Cook

The UK government has announced new proposals to further crack down on student visas, aiming to tackle student visa abuse and ensure that this route is not used as a gateway to immigration, according to the Home Office.

 

The new measures proposed by the Home Secretary and Education Secretary include:

  • Raising financial maintenance requirements for international students to prove their financial self-sufficiency;
  • Reviewing English language assessments to standardise independent assessments, ensuring all international students have the skills to understand their course materials;
  • Introducing tougher compliance standards for institutions recruiting students from overseas, with improved control over recruitment agents.

 

Additionally, universities that accept international students who then fail to pass the Home Office’s visa checks, enrol, or complete their courses will risk losing their sponsor licence.

 

Currently, overseas students are required to have £1,334 per month (for up to nine months) for courses in London and £1,023 per month (for up to nine months) outside London to prove they have enough money to support themselves during their studies in the UK. This requirement is waived if they have been in the UK with a valid visa for at least 12 months at the time of application.

 

For the English language requirement, overseas students will need to prove they can read, write, speak, and understand English to the equivalent level of CEFR level B2 if they’re going to study a degree course, or CEFR level B1 if they are studying below a degree level.

 

The Home Office has not yet confirmed how and when they plan to increase the financial maintenance requirements, nor what steps will be taken to standardise the English assessments.

 

Lisa's Law Blog_Home Office announces further Crackdown on student visas_immigration banner

 

“We have taken decisive and necessary action to deliver the largest cut in legal migration in our country’s history. Applications are already falling sharply, down by almost a quarter on key routes in the first four months of this year compared to last, with the full impact of our package still to be seen.

 

“But we must go further to make sure our immigration routes aren’t abused. That’s why we are cracking down on rogue international agents and, building on work across government, to ensure international students are coming here to study, not work,” Home Secretary James Cleverly has said.

 

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.

 

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.

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lisaslaw@web

A recent case involving McDonald’s, has resulted in the landlord at its now-closed County Hall location being forced to pay the fast-food giant compensation. This follows the landlord’s misrepresentations at a previous County Court trial regarding the nature of the business which it sought to replace McDonald’s with. The case offers lessons for commercial landlords about the importance of ensuring that they do not misrepresent when it comes to refusing a lease renewal in order to occupy a premises for themselves.

 

Background

 

McDonald’s held a lease at County Hall in London which was reaching its expiration. At this point, McDonald’s sought to renew its lease under the Landlord and Tenant Act (LTA) 1954. However, this renewal was opposed by the landlord of the commercial space, Shirayama Shokusan Company Ltd.

 

The basis for this opposition to the renewal of the lease was on the grounds of section 30 (1) of the LTA, which enables landlords to refuse the renewal of a lease in cases where they ‘genuinely intend to occupy the premises for their own business purposes’.

 

In preventing the continued occupation of the building by McDonald’s, the landlord claimed their intention to open a Zen Bento restaurant. This intention was supported by a detailed business plan, architectural plans, projected opening date and court undertaking by the landlord. The County Court refused McDonald’s application for a new lease based on the argument made by the landlord.

 

However, following the hearing it was discovered by McDonald’s that the Zen Bento had not been opened by the purported opening date, and there had also been very little work done to advance the opening of said restaurant. Instead of proceeding, the landlord explored various alternative uses for the premises, such as the potential opening of a Spanish fish restaurant.

 

This resulted in McDonald’s filing for compensation and arguing that the landlord had misrepresented its intentions regarding its claim to be opening a Zen Bento restaurant. The legal proceedings were initiated under Section 37A of the LTA 1954, which provides for tenant compensation in situations where a court has been misled into refusing a new lease based on landlord misrepresentation or concealment of material facts.

 

What did the court decide?

 

The court made the decision that the landlord had deliberately misrepresented its intention to operate the Zen Bento restaurant, which resulted in the County Court denying McDonald’s a new lease. When scrutinising the documents and the actions of the landlord following the County Court’s initial hearing, a stark contrast was found between the representations by the landlord and their subsequent behaviour. The misrepresentation by the landlord was deemed by the court to have directly influenced the County Court’s refusal to grant McDonald’s a new lease.

 

The court also decided that McDonald’s was entitled to claim compensation. This was not determined at the time, with this to be decided in a subsequent trial. This trial will be focused on the quantification of damages which McDonald’s has suffered as a result of the misrepresentation.

 

Our thoughts

 

Yitong namecard

 

This is not the first case where the landlord had been caught out by the Act. The Court of Appeal considered a case with similar facts in Inclusive Technology –v- Williamson over 14 years ago.

 

The landlord in this case initially served a statutory notice terminating the business’ tenancy in June 2006, indicating plans for works at the end of the tenancy. However, the landlord later changed its mind without informing the tenant, who vacated the property based on the initial plans. The tenant brought a claim for compensation under section 37A and was awarded compensation by the Court of Appeal. The court found that the landlord’s failure to communicate the change in plans constituted a misrepresentation, entitling the tenant to compensation for the increased cost of finding alternative accommodation.

 

The court’s position on this issue has been consistent. Both cases highlight the importance of fair dealing between landlord and tenant. In these circumstances, when the representation had been a continuing one, had at one point became false. It is the landlord’s duty to correct it when it becomes false to his knowledge.

 

We have previously successfully acted for both landlord and tenant on cases involving S25 of the LTA 1954. And the judgement in the current case finding for McDonald’s is in line with the principle of fair dealing and the provisions of section 37A of the LTA 1954. It is the landlord’s duty to avoid misrepresentation and concealment in dealing under such circumstances. We remind both the landlord and the tenant to act by the principle and to exercise with caution when terminating the lease to avoid pitfalls.

 

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.

 

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.

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James Cook

As the UK heads to a general election on 4th July, a number of bills have received royal assent in advance of the dissolution of Parliament. This rush to pass legislation is part of the so-called ‘wash-up’ period, which is when any unfinished parliamentary business must be passed by both the House of Commons and House of Lords. If they do not pass before parliament is dissolved then they will fail.

 

With this in mind, let’s take a look at some of the bills which passed, as well as touch on some of those that didn’t after the Prime Minister Rishi Sunak called a general election.

 

Leasehold and Freehold Reform Bill

 

A bill that we have covered extensively, but was at risk of not passing, is the Leasehold and Freehold Reform Bill. We first took a look at the Leasehold and Freehold Reform Bill in the form it was introduced back in November 2023 here, and the government’s backing down on scrapping ground rent here.

 

In the latter article, we touched on the introduction of a ground rent cap of £250 per year as an alternative to scrapping ground rent, but this also failed to make final version of the bill. There will therefore be no changes to ground rent.  So what changes will the Leasehold and Freehold Reform Bill make to the property sector?

 

  • Cheaper and easier for leaseholders to extend their lease, buy their freehold and take over management of their building
  • Increase standard lease extension terms to 990 years for houses and flats
  • Provide greater transparency around service charges
  • Make it easier to challenge ‘unreasonable challenges’ by landlords at a Tribunal.
  • Ban the sale of most new leasehold houses
  • Scrap the requirement for a leaseholder to have owned their home for two years before they can buy or extend their lease

 

Post Office (Horizon System) Offences Bill

 

woman walking with parcels at post office

 

This bill aims to address the convictions of Post Office sub-postmasters who were convicted in the infamous Horizon scandal. It also means that those who have been convicted will be eligible for compensation. The scandal became a major news story in the UK following the broadcasting of the ITV drama, Mr Bates vs The Post Office, leading to calls for justice for those who were convicted.

 

Digital Markets, Competition and Consumers Bill

 

This bill focuses specifically on consumer rights online.

 

This includes changes to subscription contracts, which will now be under stricter regulation, including pre-contract information obligations, cooling-off rights, reminder notices and termination rights.

 

Furthermore, drip pricing, which adds additional charges to the initial price you pay online at the checkout, will be banned.

 

Finally, the bill includes a ban on foreign governments owning UK newspapers. There had previously been concerns about the UAE government taking over The Telegraph newspaper, resulting in its inclusion in the bill.

 

Victims and Prisoners Bill

 

Finally, another significant bill which has passed is the Victims and Prisoners Bill. You may have heard about the infected blood scandal, which resulted in more than 30,000 victims being infected with hepatitis C or HIV as a result of receiving contaminated blood in the 1970s and 1980s.

 

Following decades of prevarication and inaction towards helping victims, they are finally due to receive some form of justice, with the cost of compensation potentially totalling £10bn.

 

Bills which didn’t pass

 

As for bills which failed to be passed, several high profile pieces of legislation didn’t make the cut. Of chief concern for many Lisa’s Law readers will be one bill in particular, the Renters (Reform) Bill. Let’s examine this bill and look at why it failed to become law.

 

Renters (Reform) Bill

 

One of these is another bill that we have looked at in great details, the Renters (Reform) Bill. This first came into being following the 2019 General Election, when the Conservatives promised in their manifesto that they would ban Section 21, also known as no-fault evictions. Despite this, there has been extensive opposition from within the Conservative Party, many of whom are landlords wanting better protections.

 

Lack of time due to the dissolution of parliament was blamed for the bill failing to pass. Many renters will be disappointed given the expansion of rights which were promised by the Conservative government five years ago.

 

Other bills which failed to pass in time include the Tobacco and Vapes Bill, the Football Governance Bill, the Criminal Justice Bill, the Arbitration Bill, and the Sentencing Bill. It remains to be seen whether an incoming Labour government would reintroduce any of this legislation to Parliament.

 

Our thoughts

 

That’s everything that we will be discussing today when it comes to the final pieces of legislation during the general election wash-up period. With the general election coming on 4th July, and the current opposition Labour Party leading considerably in the polls, we can perhaps expect to see considerable changes to UK law during this coming year. As always, we at Lisa’s Law will keep you updated on any legal changes. Subscribe to our newsletter for further updates.

 

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.

 

Email us on info@lisaslaw.co.uk.

 

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James Cook

If you’ve ever looked at purchasing a property, you will have come across a range of listing types across property websites. Purchasing property in England can be done through several methods, with auction purchases and standard purchases being two of the most common.

 

Copy of Namecard for article - Sam in English (2)

 

 

Each type has distinct processes, advantages, and potential pitfalls. In today’s article, we take a brief look at how these two methods differ. By the end of this article, you should hopefully have a much better understanding of the pros and cons for each method.

 

Auction Property Purchase

 

Speed of Transaction

 

– Immediate Exchange: One of the most significant differences is the speed. In an auction, if you’re the highest bidder when the gavel falls, you’ve immediately exchanged contracts.

– Completion Timeline: Completion typically occurs within 28 days of the auction, though this can vary depending on the auction house terms.

 

Preparation and Research

 

– Intense Preparation: Prospective buyers must conduct thorough due diligence before the auction. This includes viewing the property, reviewing the legal pack (provided by the auction house), and arranging finance.

– Non-Refundable Deposits: If your bid is successful, you are required to pay a 10% deposit on the day of the auction. This deposit is non-refundable if you fail to complete the purchase.

 

Legal and Financial Readiness

 

– Legal Commitment: Bidding at an auction is a legally binding commitment. Once the gavel falls, you are obligated to complete the purchase.

– Pre-Arranged Finance: Buyers need to ensure that their finances are in order prior to the auction, as there is no room for delays post-auction.

 

Costs

 

– Auction Fees: Buyers must consider additional costs such as auction house fees, which can be a percentage of the property price or a fixed fee.

– Survey Costs: Given the fast-paced nature, buyers may need to pay for surveys and valuations before the auction without a guarantee of securing the property.

 

Standard Property Purchase

 

Timeline and Flexibility

 

– Negotiable Timeline: The process is generally more flexible and can take several weeks to several months, allowing for negotiations and adjustments.

– Conditional Offers: Buyers can make offers that are subject to conditions, such as obtaining a mortgage, satisfactory surveys, and other due diligence.

 

Preparation and Research

 

– Ongoing Research: Buyers often conduct viewings and obtain surveys after their offer is accepted but before contracts are exchanged.

– Conditional Process: Offers can be withdrawn or renegotiated if issues arise during the survey or legal searches.

 

Legal and Financial Readiness

 

– Step-by-Step Commitment: Buyers are not legally bound until contracts are exchanged, providing an opportunity to withdraw from the purchase if necessary.

– Mortgage Arrangements: There is typically more time to arrange a mortgage, though a mortgage offer should ideally be in place before making an offer.

 

Costs

 

– Negotiated Costs: Many costs, such as legal fees, survey fees, and mortgage arrangement fees, are similar to those in an auction purchase but are often paid only once a firm decision is made.

– Potential Hidden Costs: There may be unexpected costs discovered during surveys or legal searches, which can be negotiated with the seller.

 

Key Differences

 

Certainty

 

– Auction: High certainty post-auction. Once the gavel falls, the deal is legally binding.

– Standard Purchase: Greater flexibility with the possibility of negotiations or withdrawing without legal consequences until exchange of contracts.

 

Level of risk

 

– Auction: Higher risk due to immediate commitment and requirement for pre-purchase preparation.

– Standard Purchase: Lower risk as there’s room for detailed due diligence and negotiations.

 

Financial Planning

 

– Auction: Requires immediate availability of funds for the deposit and quick access to the remaining balance.

– Standard Purchase: Allows more time to secure financing and manage funds.

 

Market Dynamics

 

– Auction: Properties at auction are often those needing refurbishment, repossessed homes, or investment opportunities, which may not suit all buyers.

– Standard Purchase: Offers a wider range of property types, often including homes in better condition and ready for immediate occupancy.

 

Conclusion

 

Both auctions and standard property purchases have their own sets of advantages and challenges. Auctions provide a fast, decisive way to purchase property, often attracting investors or those looking for a project. Standard property purchases offer more flexibility and time, appealing to traditional homebuyers. Understanding these differences can help buyers choose the method that best suits their circumstances and goals. Lisa’s Law is experienced in dealing with both cases and will be able to advise any client extensively throughout either process. If you have any enquiries, feel free to contact me.

 

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.

 

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.

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James Cook

The Home Office has announced a number of changes to the EU Settlement Scheme. Those who have been granted pre-settled status under the EU Settlement Scheme will have their rights strengthened by the newly implemented changes. Let’s take a look at what the EU Settlement Scheme changes are.

 

Duration of pre-settled status extensions

 

The first major change is that the duration of pre-settled status extensions has been increased from 2 to 5 years. Furthermore, pre-settled status holders will no longer lose this status due to residence abroad for 2 years. From now on, pre-settled status holders will be on a parity with those who have settled status. This amounts to five years normally, as well as four years for Swiss nationals and their family members.

 

Removal of pre-settled status expiry date from digital profiles

 

There has also been a significant change when it comes to Right to Work, Right to Rent and View and Prove. The pre-settled status expiry date has been removed from the digital profiles shown to third parties for the online checking services related to these checks. In addition to this specific change, where an individual remains in their employment or as part of a tenancy agreement, employers, landlords and letting agents will no longer be required to conduct a further right to work or right to rent check.

 

This news will be welcomed by those with pre-settled status, who have on occasion been subject to temporary contracts as it could be seen by employers that their pre-settled status was due to expire.

 

After Brexit, the loss of automatic residence rights for EU citizens in the UK resulted in the necessity of the EU Settlement Scheme. As of 31st December 2023, 5.7 million people have secured their rights in the UK. This consists of 2 million people holding pre-settled status, as well as 3.7 million people holding settled status in the UK.

 

For those with pre-settled status, you are usually able to apply for settled status once you have lived in the UK for 5 years in a row.

 

Have questions about this? Feel free to contact us today and we will be happy to help.

 

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.

 

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.

author avatar
James Cook

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