Married couples have automatic rights which protect their occupation. To cover a situation arising when a marriage goes through a difficult time it is quickest and cheapest to issue a simple notice with the Land Registry that will ensure your house can not be sold or mortgaged without you being made aware.
Get your lawyer on the case to cover all such contingencies.

Joint tenancy is a form of ownership by people who share equal ownership of the property and have the equal, undivided right to keep or dispose of the property. Joint tenancy creates a Right of Survivorship. This right provides that if any one of the joint tenants dies, the remainder of the property is transferred to the survivor and this cannot be altered by a will.

Where co-owners are not married, or have made different contributions to the price, the preferred form of joint ownership will usually be as Tenants-in-Common. This means that the co-owners are regarded in law as having separate and distinct shares. They may give their shares away by will, and they may charge or mortgage them to a lender.

When renting if you live, or plan to live with another person, your council may give you permission to have a joint tenancy (private landlords may insist on a joint tenancy.)
Both or all tenants will share responsibility for things like paying the rent on time. If the other tenant(s) moves out of the property you are responsible for paying all the rent.

France and the French Housing Market

• House prices have been in an expanding bubble for far too long.
• Values are up four times the increase in incomes over the last 15 years.
• Paris is unsustainably one of the top three most expensive cities in the world to acquire property.
• Will there be a gradual slide or a quick slump. Some think both with 15% reduction in 2012 followed by a further 25% over the next 5 years.
• Like the UK, France has a large proportion of family wealth tied up in property particularly compared to Japan and the USA.
• The new president has his work cut out on many fronts but needs to keep an eye of his housing market.

Spanish Eviction Growth

• Unemployment is causing default on a growing number of mortgage debts.
• Forbearance is not popular in Spanish banking circles and repossessions are on the increase.
• Banks are still full of toxic assets from the housing value collapse.
• The price of some homes has halved and negative equity is more dramatic in Spain than many other European countries.

Update on Other European Housing Markets

• The first quarter of 2012 was the weakest quarter for the Dutch housing market since the outbreak of the credit crisis in 2008. Dutch Housing Market Comment
• Irish house prices in the first quarter of 2012 continued to fall but the drop of 1.7% is the smallest quarterly drop since the market collapse began in earnest in 2008. Perhaps the early medicine that the Irish government took to correct the economy is having an impact.
• The ‘Swedish housing market has shown great resilience during the financial crisis in 2008-2009, advancing to new highs during 2011, a depreciation in prices could be triggered by central bank rate hikes if inflation increases further and hawkish regulators impose further equity requirements on home owners.’ more from Beware Swedish Housing article

Double Dip Effect on Housing Market

• The market is currently struggling and it is a significant step for many people to commit to a new house purchase in the uncertain economic climate.
• Weak consumer confidence and negative perceptions of the lending industry is whipped up in a negative manner by the media.
• A static price level for homes through 2011 was a real reduction in the value of housing when inflation of over 5% is taken into account.
• There is a fear that house prices will take a further dip in nominal or real house prices during the next couple of years.
• Previous recessions have led to real price dips and current house prices have not adequately corrected since 2006.

Double Dip Upside for Housing Market

• More optimistically there are more people in work than this time last year (although that will not help the unemployed).
• Interest rates are set to remain low despite the SVR changes at many lenders.
• Oil prices have played havoc in recent months and we may get some respite shortly.
• Housing demand is still high
• One of the first sectors to benefit from an economic upturn will be the construction industry and housing may help lead the country out of any Double Dip House Price problems.

UK lenders were bailed out by the tax payer and everyone is still paying for this action. The housing market ground to a virtual standstill, values plummeted and negative equity and repayment problems loomed.

Bad Mortgage Lending Practices and the Suffering

• The high loan to valuation ratios 125% in some cases. In retrospect this was gross over lending against week security.
• The lack of stress testing of the borrowers ability to repay. Care of the mortgagee was none existent.
• Inadequate assessment and checking of borrowers income. Personal debt increased often to unsustainable levels as did government and bank debt.
• Lax valuation criteria and lenders greed for a deal at all cost. Profits for the lender pain for the borrower.
• Excessive interest only lending with no affirmation that plans were in place to repay the capital. Long lasting and insurmountable debts.
• Creative and ‘flexible’ loan products driven by fees. Borrowers were caught with high fees.

Enter the FSA with the Speed of Light (Not)

‘The FSA wants to avoid history repeating itself and is proposing and consulting on three ‘new’ rules:
1. An affordability assessment must be carried out which includes verifying an individual or couple’s income. This was not always the case during the last boom.
2. Unavoidable bills such as utilities, council tax and spending on children must be taken into account.
3. All mortgage lenders must consider potential rises in interest rates and assess whether a borrower would be able to repay in such an eventuality.’

FSA Considering New Rules

• Regulation is still a ‘gentlemens club’ and problems may happen again as currently with SVR increases where lenders are currently testing the boundaries of the unacceptable.
• The onus should be on the lender to ensure regular interest and all capital payments are feasible. Borrowers should get more street wise after all the publicity and aggravation they have endured.
• Consumers need FSA protection from bad lending practices that can lead to the personal distress of arrears and repossessions.
• Rules need to avoid unintended consequences which is achieved by clarity, openness and frank exposure .
• Lenders need a clear and supportive regulatory framework so they can help restimulate the housing market
• New rules should avoid duplicating EU regulation.

Since 1991, there has been no revaluation or rebanding. The effect is that many houses that were incorrectly banded are still in that situation.
You can still appeal about your band and there are surveyors who will help you tackle that task.

Check with local neighbours in similar properties as to what band they are in. If they are in a lower band you have a very good chance of getting a lower council tax bill.  A Council Tax Reband it could save you thousands.

Tactical Council Tax Savings

• Live in smaller lower banded home. Or with your parents.
• Live in an area where the rates of council tax rates are low.
• Live where council services are run on the basis of good value for tax payers money or where the government subsidy is high.
• ‘If you’re on a low income, whether you’re working or not, and need financial help to pay your Council Tax bill, you may be able to get Council Tax Benefit. Find out more, including who is eligible and information about the Second Adult Rebate’ from Directgov
• Students Don’t Pay Council Tax
• If you live alone, you are entitled to get a 25% discount. Make sure you tell the council though.
• If there is one adult and several students, you are entitled to the 25% discount.
• If the house is empty for renovation, you can claim an exemption for upto 12 months.
• In the local elections vote for a Mayor or Councillors who will control spending (if you have the choice).

Guide to Housing Benefit and Council Tax Benefit 2012-13 by Sam Lister and Martin Ward published by shelter and available from amazon

London Residential as an Asset Class

• When you sport a trend and the media start to give it a name that probably means you have missed the boat
• There are speciality funds that are investing in London’s commercial and residential property where individuals can take a stake that spreads risk over a basket of property investments.
• Overseas investors have been underwriting the asset values as London residential property has been seen as a safe haven for their liquid funds.
• How quickly can the funds be repatriated if the sentiment changes? More to the point what would such change in sentiment do to property prices?
• European economic turmoil is not going to be resolved soon and the Birc countries may continue to eye London as a place to buy. The only missing market is the affluent Brit!

Future of the London Residential Asset Class

• Prime property in the center of London is likely to remain a mature, intelligent international asset class
• London residential asset market may have plateaued but experts do not see the bubble bursting.
• There is still growth potential and the rental revenue streams provide a safety net.
• Tax breaks, publicty, Middle East instability, Olympics 2012 and wide spread economic woes can still derail or support this residential asset class.

Alternative property investments may again feature Prime Country Property as being good value for money.

Avoiding stamp duty is a totally legal process and should not be confused with stamp duty evasion which is illegal but that is legal semantics. Morally there is something perverse that encourages scheming to avoid just and reasonable taxation.

Stamp duty avoidance is now a significant industry as a simple internet search will show. There are numerous ‘front’ or service companies linked to Property lawyers and ‘Stamp Duty Planning experts’

Stamp Duty Avoidance Schemes

• Stamp Duty Mitigation Schemes need to be established with care as Her Majesties Revenue & Customs (HMRC) have the right to challenge all non-payment of Stamp Duty
• HRMC have a “list” of Mitigation Schemes that can be challenged but there are regular new twists from ‘smart lawyers’.
• The traditional scheme was based on artificially keeping the transaction price just below a threshold by paying for fixtures and fittings at a high price.
• For larger property transaction offshore companies are set up to own the property then the shares are sold rather than the property but the property moves with the ownership of the company. This can save 4.5%
• More complex ‘trusts’ have been set up by expensive professionals who charge up to half the savings. There schemes are shrouded in mystique to avoid attack by HMRC
• Some unique insurance products have been designed to try assure a 100% success rate.

HMRC Stamping Out Stamp Duty Avoidance

• The first case to come to court has seen HMRC defeated. The Dickins & Jones building in London’s Regent Street was sold for £65 million (a bit more than most houses) but a complex of companies and partnerships involving tax havens in the British Virgin Islands was enough to avoid the tax bill.
• HMRC may appeal and this particular scheme is no longer in use. Several others schemes using the same ‘subsale’ ideas are being utilised.
• The Stamp Office at HMRC has set its sights on SDLT planning and has published a list of schemes that it dislikes.
• It remains to be seen if the schemers will be vindicated or can HMRC really crack down?
• Doubtless HMRC have spoken to George Osborne quoting Boris Johnson that ‘there is billions of pounds under his very nose and all the chancellor has to do is trouser it immediately’

Last week a 75 year old friend received a telephone call asking if he wanted to make a claim for deafness because they would blame his former occupation! He turned a deaf ear to that but how many would follow up. How was the call sourced as my friend can hear fine or he wouldn’t have heard the phone ring.

Back to the claims culture feeding the lawyers frenzy. What happened to the benefit everyone expected (and in many cases received) when they entered into the contract. ‘My word is my bond’ and ‘caveat emptor’ used to mean something!

Countrywide UK’s Largest Estate Agent

• Countrywide owns many brands including Hamptons, Manns, SecureMove, Bairstow Eves, and Taylors.
• Over 100 High Court claims have been filed in the last year by large mortgage lenders. The presumption must be that (with hindsight) properties were overvalued. This is viewed in retrospect after the property boom imploded.
• Other surveyors and valuers are suffering similar claims on their professional indemnity insurance.
• This litigation is costing the industry more pain than is necessary. Countrywide’s legal costs and claims are approaching £30 million and it is still growing.

Effect of Too Many Lawyers Chasing Surveyors

• When house prices were on the increase no one worried.
• Lenders are now looking for weakness or legal loopholes. When a bank wins one of these cases they tend to pursue a series of similar claims.
• Over time the costs will feed back into the rates charged and the buyers will suffer.
• As a surveyor or valuer would your valuations become ultra cautious if you have suffered heavy claims. Darn right they would.
• Conflicts of interest may arise for example Colleys is owned by HBOS and Countrywide own SecureMove Property Services Ltd.

Read Estate Agents Get The Portas Treatment

The Bank of Ireland sell mortgages in the UK under the brands Bristol and West and the Post Office. Due to the cost of funding mortgages they claim they too must increase their standard variable rate (SVR). Bristol and West customers will pay an extra 1.5% when the rate goes up from 3% in June to 4% then another rise in September will take the rate to 4.49%.
The Post Office branded mortgages are not yet included in the change of rate.

Why are Mortgage Interest Rates on the Increase

• All the lenders concerned are claiming that the cost of retail and wholesale funding has now increased.
• The Bank of England are due to close the special liquidity scheme that provided emergency mortgage funding.
• Cynics would say that rates are being increased because the lenders think they can get away with it! If that is true expect other lenders to find ways onto the band waggon very shortly
• Despite bank base rate being held for the 36th month in succession at 0.5% the government seem happy to see the SVR begin to edge upwards.

Downsizing and Rightsizing Considerations

• Understand your own motivation for making a change. Smaller properties may be easier to maintain and heat. They may be more convenient for services and local facilities but the opposite can also be true.
• Ensure anyone you live with shares the dream of making a change.
• Think ahead, you probably want the change to sustain you for a lengthy period. It is no fun downsizing again every few years unless you are just getting an interim home.
• Consider your health, driving ability and general fitness for climbing stairs or accessing local services.

Downsizing and Rightsizing Downsides

• Be extra careful if you are changing your style of living as well as the space you occupy. Moving to the country or seaside rather than locally can be a bigger upheaval.
• Property prices have fallen for the last 4 years and you are likely to end up with a lower margin of comfort between the selling and buying price.
• Avoid being too remote so you become lonely and isolated.
• Check out the costs of the move and the extras like transport.
• Be prepared to downsize your possessions to match your new property.

Rightsizing is the Way To Go

• Rightsizing applies to you! It is the personal way of assessing what you want to achieve.
• Beware of ‘wrongsizing’ or sizing for the wrong reasons.
• It is not only the number of bedrooms that is an issue. The garden or lack of it, the plumbing and cooking facilities even the vehicle access can be issues.
• You want to rightsize to get a better home-life balance.

Read more about Downsizing to Rent rather than ownership
Read ‘The Upside of Downsizing’ from Amazon