Corporate & Commercial

Ferbrache & Farrell LLP’s corporate department offers full service corporate, banking and commercial cover and is able to advise on all aspects of Guernsey corporate and commercial law, including banking and finance, regulatory, investment funds, asset management and listings on The International Stock Exchange (TISE).

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12 December 2024
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Our UKRE team has devised some handy tips for first-time buyers to help navigate the property market: 1. Understand your budget: Calculate affordability: determine how much…
Dispute Resolution

The dispute resolution department at Ferbrache & Farrell LLP has vast experience of local and international litigation and dispute resolution generally, gained from acting in complex local and international high-value disputes, both in Guernsey and throughout the world.

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12 December 2024
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Our UKRE team has devised some handy tips for first-time buyers to help navigate the property market: 1. Understand your budget: Calculate affordability: determine how much…
Property

The Guernsey property department is dedicated to providing tailored solutions that meet and exceed clients’ expectations. In addition, the property department provides support to colleagues in the corporate and dispute resolution departments on real estate-related technical points of law.

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12 December 2024
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Our UKRE team has devised some handy tips for first-time buyers to help navigate the property market: 1. Understand your budget: Calculate affordability: determine how much…
UK Real Estate

We are delighted to help in relation to providing legal advice for real estate in England and Wales. We listen. We learn what your needs are. We proactively respond. Whether it’s personal or commercial property, we always provide sound and pragmatic advice, adding value to the transaction.

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12 December 2024
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Our UKRE team has devised some handy tips for first-time buyers to help navigate the property market: 1. Understand your budget: Calculate affordability: determine how much…
Private Client

Our services for private client matters include the drafting of realty and personalty wills, acting as professional executors, and assisting foreign lawyers who have requirements in this jurisdiction.

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12 December 2024
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Our UKRE team has devised some handy tips for first-time buyers to help navigate the property market: 1. Understand your budget: Calculate affordability: determine how much…

Top tips for first-time home buyers

Our UKRE team has devised some handy tips for first-time buyers to help navigate the property market:

1. Understand your budget:

  • Calculate affordability: determine how much you can afford by considering your income, expenses, and savings
  • Get pre-approved: secure a mortgage pre-approval to understand your borrowing capacity and show sellers you’re a serious buyer

2. Research the market:

  • Explore different areas: look into various neighbourhoods to find one that fits your lifestyle and budget
  • Monitor property prices: keep an eye on property prices and trends in your chosen area

3. Save for deposit:

  • Start early: begin saving as soon as possible to build a substantial deposit
  • Consider government schemes: look into schemes and grants available for first-time buyers

4. Factor in additional costs:

  • Stamp Duty: be aware of the stamp duty rates and any upcoming changes
  • Legal fees and surveys: budget for solicitor fees, surveys, and other associated costs
  • Removals

5. Get professional advice:

  • Consult a financial advisor: they can help you understand your financial situation and plan accordingly

6. Inspect the property:

  • Conduct thorough inspections: ensure the property is in good condition and identify any potential issues
  • Check for future developments: research any planned developments in the area that might affect property value

7. Plan for the long term:

  • Think ahead: consider your future needs and how long you plan to stay in the property
  • Resale value: choose a property with good resale potential in case you decide to move later

8. Stay informed:

  • Keep up with market news: stay updated on market trends and changes in property laws

If you need further information or legal advice, including conveyancing services in England, please contact our dedicated UKRE team: Anna Douglass, Alastair Hargreaves, Caren Vidamour, and Hannah Damant, who will be delighted to assist.

As our regular readers will know, we in the UK Real Estate team has been waiting with interest to hear the first Labour Party budget now that they are the incumbent.

In the run up to yesterday’s fiscal announcements, we have had a flurry of activity by those clients who either wanted to complete transactions on an expedited basis, or those who have instructed us to pause work until the budgetary landscape was clearer.

Multiple news outlets from CNN though to the BBC have latched on to the headline grabbing £40bn in tax rises, whilst specialist tax advisers are generally saying the news was not good, but not as bad as it could have been. It appears the main burden of taxation will be borne by businesses.

Although we in the UK Real Estate team are not tax advisers, we have read considerable commentary around the income taxation and inheritance taxation of pensions, with some suggesting pension monies should be spent rather than retained and gifted through wealth planning.

From our perspective, it will be interesting to see if the potential spending of pensions translates into property purchase instructions, given there is still stamp duty to pay on acquisition. A buyer would presumably need to consider whether the new tax burdens outweigh any stamp duty levied, but again this remains to be seen.

On the subject of stamp duty, two key points arise.

The first point is that stamp duty surcharges on the acquisition of second properties will increase from 3% to 5% with effect from today (31 October), and the second point is that stamp duty thresholds will be changing to lower levels (increasing the tax take) from March 2025, with further information to follow from government.

We leave to tax experts the details around the taxation of non-doms (or more accurately the introduction a residence based tax scheme) given that again further clarification is awaited.

There will be some additional thought needed around the increase in the rates of Capital Gains Tax also.

Practically speaking, we certainly expect activity levels to pick up from those clients who were waiting for taxation clarity.

As and when further relevant information comes to light, we look forward to sharing our thoughts on how this may affect our client’s instructions.

If you need further information or legal advice, including conveyancing services in England, please contact our dedicated UKRE team: Anna Douglass, Alastair Hargreaves, Caren Vidamour, and Hannah Damant, who will be delighted to assist.

The HM Land Registry (HMLR) has published the UK House Price Index data for August 2024.

The August data shows on average, house prices have risen 1.5% since July 2024.

There has been an annual price rise of 2.8% which makes the average property in the UK valued at £293,000.

In England the August data shows, on average, house prices have risen by 1.6% since July 2024.

The annual price rise of 2.3% takes the average property value to £310,000.

London shows, on average, house prices increased by 2.2% since July 2024. An annual price fall of 1.4% takes the average property value in London to £531,000.

For more details, please visit the official report here.

If you need further information or legal advice, including conveyancing services in England, please contact our dedicated UKRE team: Anna Douglass, Alastair Hargreaves, Caren Vidamour, and Hannah Damant, who will be delighted to assist.

As our regular followers will know, each month sees the release by HM Land Registry of its publication on practices and processes.

This October, we learn that there have been some adjustments to applications for official copies of title to support the ongoing commitment to digitalisation.

Other changes are more technical in nature and relate to restrictions and the protection of third party interests. These two changes in particular will adjust the way our UKRE team works and we have made updates to our own working systems in consequence.

We look forward to updating our clients on this, and other developments, in order that we can serve their best interests and be at the leading edge of best practice.

If you need any further information or legal advice, including conveyancing of a property in England, please contact our designated UKRE team Anna Douglass, Alastair Hargreaves, Caren Vidamour and Hannah Damant, who will be delighted to assist.

A lease is a contract between a landlord and a tenant and has certain key characteristics defined in both statute and in case law. For the purposes of this Guide, we will refer to a lender as a ‘mortgagee’.

Depending upon the terms of the lease, it can be mortgaged to raise monies.  The mortgagee will require certain criteria to be met before advancing funds and in order to minimise financial risk.

A mortgagee protection clause is therefore a critical component in leases. This clause ensures that a landlord cannot terminate a lease without first notifying the lender, thereby protecting the lender’s interests.

An example of a mortgagee protection clause is this:-

“Before re-entering the Property pursuant to this clause, or commencing any proceedings for forfeiture of this lease, the Landlord shall:

(a) give notice of the breach complained of to any mortgagee of this lease of whom the Landlord has received notice; and

(b) if the mortgagee confirms in writing to the Landlord within 14 days of the notice that it wishes to remedy the breach, allow the mortgagee 28 days (or such longer time as may be reasonable in view of the nature of the breach) to remedy the breach.”

As one might expect, there are many variations of such wording, but the effect is largely the same.

Purpose and function

The primary function of a mortgagee protection clause is to prevent the landlord from forfeiting a lease without serving written notice on the lender. Forfeiture allows a landlord to terminate a lease if the tenant breaches its terms or if another specified event occurs. This clause motivates tenants to adhere to their covenants, as non-compliance could result in the tenant losing their premises.

Impact on lenders

Forfeiture doesn’t only affect tenants; it also impacts lenders who have taken security over a leasehold property. If a tenant breaches the lease terms, the lender has no direct control over the situation. The lender’s control is limited to the covenants in the loan documentation, backed by the threat of enforcing the legal charge. However, this does not prevent the forfeiture of the lease and the potential loss of the lender’s security.

Relief from forfeiture

When a landlord has the right to forfeit a lease, the tenant can apply to the court for relief from forfeiture. If granted, this relief effectively restores the lease as if it had never ended. The court generally favours the tenant, provided they promptly remedy any covenant breach. Similarly, a mortgagee can apply for relief from forfeiture, and the court can exercise its discretion in the same manner.

Lender requirements

Most lenders will not finance valuable leasehold properties unless the lease includes a mortgagee protection clause. This is because lenders prefer the opportunity to remedy a covenant breach rather than face the expense and uncertainty of applying to the court for relief. The clause ensures that the landlord must notify the lender in writing before forfeiting the lease, giving the lender a chance to remedy the breach or instruct the tenant to do so.

Conclusion

Even if a lease lacks a mortgagee protection clause, some landlords might inform a tenant’s lender before taking steps to forfeit the lease.

Often, landlords and lenders have similar vested commercial interests, such as remedying the tenant’s breach and protecting the income stream that arises from the proper performance of the lease covenants . From a tenant’s perspective, accepting a lease without a mortgagee protection clause can complicate future assignments or refinancing.

New lenders may require the lease to be amended to include such a clause, leading to delays and additional costs. Therefore, including a mortgagee protection clause when drafting a lease benefits all parties involved in the long term.

Contact information

For further information or legal advice, including conveyancing services in England, please contact our dedicated UKRE team: Anna Douglass, Alastair Hargreaves, Caren Vidamour, and Hannah Damant, who will be delighted to assist.

 

 

 

Fire incidents can have devastating consequences, including loss of life, injuries, and significant property damage. To mitigate these risks, it is essential to implement effective fire safety measures within buildings.

Our UKRE property expert, Anna Douglass (Solicitor) and Guernsey Property Advocate Alastair Hargreaves (Partner), provide a brief comparative overview of fire safety measures between England and the Bailiwick of Guernsey. Click here to read.

For further information or legal advice, including conveyancing services in England, please contact our dedicated UKRE team: Anna Douglass, Alastair Hargreaves, Caren Vidamour, and Hannah Damant. They will be delighted to assist you.

Setting aside the seismic, geopolitical events that are taking place around the world, the English domestic economy is experiencing some changing times also.

Whether it is the upcoming Labour budget on 30th October, or the level of inflation, or even interest rates, banks and building societies often provide helpful indicators on monetary risk appetite as financial barometers of economic health.

With that in mind, it is interesting to read that Nationwide Building Society is now prepared to take a greater financial risk for first time buyers provided that certain lending criteria are met.

With a deposit of 5% being required, and a borrower needing to commit to five or ten year fixed rates, Nationwide is prepared to offer income multiples of six times salary.

If nothing else, this does appear to show some willingness on that lender’s part to have confidence in the direction of travel of the English economy.

We watch with interest to see whether other lenders follow suit on the mainland, and also whether this will transpose to a similar position in Guernsey.

We in the UK Real Estate team at Ferbrache & Farrell LLP follow all such developments keenly, in order that we can act in the best interests of our clients and advise on highly topical matters efficiently and effectively.

If you need further information or legal advice, including conveyancing services in England, please contact our dedicated UKRE team: Anna Douglass, Alastair Hargreaves, Caren Vidamour, and Hannah Damant, who will be delighted to assist.

The HM Land Registry (HMLR) has published the UK House Price Index data for July 2024.

The July data indicates that, on average, house prices have increased by 0.6% since June 2024. Annually, there has been a 2.2% rise, bringing the average property value in the UK to £289,000.

The data also highlights that the East of England had the lowest number of repossession sales in May 2024, while the North East recorded the highest number of repossession sales for the same month.

In London, average house prices have decreased by 0.3% since June 2024. This represents an annual decline of 0.4%, with the average property value now at £521,000.

For more details, please visit the official report here.

If you need further information or legal advice, including conveyancing services in England, please contact our dedicated UKRE team: Anna Douglass, Alastair Hargreaves, Caren Vidamour, and Hannah Damant, who will be delighted to assist.

Following the tragic events of 14 June 2017, and the devastating loss of 72 lives at Grenfell Tower, and following the publication of the Phase 2 Report of the Grenfell Tower Inquiry on 4 September 2024, it was timely to consider the legal issue of building safety on a cross-jurisdictional basis.

Background and Context

Whilst the context of building safety in England needs no introduction, from its origins in at least 1965 and before, it may be helpful to focus very briefly on the second location forming the subject matter of this short article.

 

By way of background, the Bailiwick of Guernsey is a Crown Dependency and a self-governing entity. Within the Bailiwick there are three jurisdictions, namely Guernsey, Alderney and Sark. They hold a high degree of legal interest for those constitutional lawyers amongst us and particularly given the archaic link to the Duchy of Normandy.

 

This article is concerned however with the jurisdiction of Guernsey with its circa 65,000 inhabitants residing in the Island, in the Bay of Saint-Malo, and who are around an hour from London by plane.

 

From a planning law and a building control perspective, there are several landmark multi-storey office buildings in Guernsey, but multi-storey residential apartment blocks are limited.

 

Fire though makes no distinction between jurisdictions, as we are mindful locally of the desperate Jersey residential tower block explosion in 2022 that saw ten lives lost, and the 2024 evacuation in Jersey of 30 people following a fire in an apartment block there.

 

England: The Building Safety Act 2022

The landmark piece of legislation arising from the Grenfell tragedy is the Building Safety Act 2022, which came into force on 1 October 2023 (the BSA 2022).

 

It is fair to say that that the interplay between primary and secondary legislation is very complex in this area. It is the subject of multiple textbooks and many, many thousands of column inches, and the deliberations and cogitations of the finest minds.

 

Not only does a legal practitioner need to be familiar with the BSA, but they must also have regard to the myriad regulations and Circulars.

 

From the now called Ministry of Housing, Communities and Local Government and published at www.gov.uk these documents include, but are certainly not limited to, the Approved Document B (Fire Safety); 2025 Approved Document B amendment booklet (in force 2 March 2025, subject to transitional provisions); Circular number 03/2024; 2026 Approved Document B amendment booklet (in force 30 September 2026); Circular numbers 01/2024 and 04/2024; 2029 Approved Document B amendment booklet (in force 2 September 2029), Circular number 05/2024.

 

And notwithstanding the above, those in the industry must consider the practical application of the law that may transpose into daily practises through BS 99001 (quality management systems in the built environment), BS 9991 (Fire safety in the design, management and use of residential buildings: Code of Practice), BS 9999 (Code of Practice for Fire Safety in the design, management and use of buildings (non-residential), and the ubiquitous ISO 9001.

 

A principal aim of the BSA 2022 is to attempt to bring a regulatory framework that is ‘simpler, clearer and more effective…{and} because {of} the complexity of modern buildings, the actions of any one person could compromise the safety of the system as a whole’[1]

 

Readers can be the judge of that for themselves but suffice to say the BSA 2022 is becoming a standing agenda point for CPD providers due to scope for practitioners to fall foul of its requirements.

 

Whether acting for the buyer or for the seller, key considerations are (1) the scope of the retainer (2) the drafting of the letter of engagement (3) the wording of any report on title (in the case of the buyer) (4) how advice given will trigger protection from professional indemnity insurance, and (4) how replies to pre-contract enquiries (TA7/LPE1, or CPSEs, as the case may be) will be completed.

 

As far as the letter of engagement is concerned, special care should be taken to set out what will be done, and what will not be done in the context of the BSA 2022.

 

As practitioners of law, it would be an invidious position that a conveyancer somehow finds themselves, for example, as having to determine if a structure is a ‘Higher Risk Building’ for the purposes of the BSA 2022 or alternatively finding themselves in having to advise on highly technical points relating to service charges. A conveyancer will properly need to rely on information provided by a BSA 2002 defined ‘Accountable Person’ such as a landlord, management company, freeholder or resident management company, for example.

 

With all of these non-exhaustive points in mind, the current thinking is that great care must be taken in dealing with any property where liability under the BSA 2022 could be engaged.

 

Guernsey: The Building (Guernsey) Regulations, 2012 and the Guernsey Technical Standards

Unsurprisingly, safety of persons is paramount in the Bailiwick.

 

The very great difference though between England and Guernsey is that the latter is a customary law jurisdiction, although more recently supported by statutory infrastructure. As a brief recap, customary law (per Black’s Law Dictionary, 2007) is defined as being:

‘law consisting of customs that are accepted as legal requirements or obligatory rules of conduct; practices and beliefs that are so vital and intrinsic a part of a social and economic system that they are treated as if they were laws’

 

Clearly, with the speed of technical advances in building construction and the 21st century commensurate risks to life that change equally rapidly, the medium of Guernsey customary law is (on this occasion) inappropriate to provide a swift solution.

 

To that end therefore, Guernsey has the ability to look to any jurisdiction that it likes to provide potential answers. This flexibility can act as a catalyst for intellectual rigour to problem solve, whilst providing the legislative draftsperson’s signpost to a local answer to an issue that requires a statutory solution.

 

Guernsey does not have the equivalent of the BSA 2022.

 

Instead, the protection to life in building construction terms is through The Building (Guernsey) Regulations, 2012 (Part B: Fire Safety), as supported by the Guernsey Technical Standards (the GTS).

 

In general terms, the GTS draw very heavily on the English building regulations to an almost granular similarity by referencing ‘Parts’, as on the mainland. They are roughly equivalent in Guernsey as they are in England.

 

Where appropriate, the States of Guernsey Building Control also rely on British Standards, and in the present case this will be BS EN 13501-2 (Classification of Construction Products…from Fire Resistance…Tests), or the relevant parts of BS 476, being the suite of standards relating to fire resistance.

 

As one might expect, there are some local differences and non-resident applicants will need, for example, to be cognisant of the fact that in the Bailiwick, the Equality Act 2010 and the Equalities Act 2010 (Disability) Regulations 2010 (as amended or replaced) will not apply. Equally, Guernsey does not have approved building regulations inspectors, so the UK Building (Approved Inspectors, etc.) Regulations 2010 are not binding locally.

 

For the purposes of this article, we are concerned with the Parts A, B and M of the GTS. Part A details Structure (notably loading, ground movement, and disproportionate collapse); Part B regulates Dwellings and Buildings other than Dwellings, and Part M deals with Access to and Use of Buildings (including access and use, and access to extensions to buildings other than dwellings). Readers will note that the age of the Regulations (i.e. 2012) is somewhat dated, although the system does work well.

 

For public safety, there is also a very close synergy with the requirements of the Health and Safety Executive, and variously the Construction (Design and Management) Approved Code of Practice 2020, the Health and Safety at Work (General)(Guernsey) Ordinance 1987 (as amended).

 

In terms of fire legislation, the statutory landscape is very restricted. The soon to be replaced The Fire Services (Guernsey) Law, 1989 (as amended) has been relatively fit for purpose, although Grenfell has brough into sharp focus the need for change.

 

Such updating is likely to take place in 2025, particularly in respect of houses in multiple occupation, and a regulatory framework around passive means of fire protection.

 

As a small community, there is a great deal of co-operation between regulators and the various industries, and it is not uncommon to have regular forums to discuss and promote best practices. The outcome of such discourse has been evidenced most recently in September 2024 with the publishing of Building Control Guidance Note 24 (version 09.2024) aptly titled “Fire Resistance of Timber Frame Structures”, and which will no doubt provide valuable clarity to the industry generally.

 

Conclusions

Regardless of the location, whether England or the Bailiwick, the protection of human health in construction terms cannot be underestimated.

 

It is, in both jurisdictions, a political consideration, a matter for the judiciary, and a key factor in building practices.

 

Any efforts to prevent a repeat of Grenfell, or any means to mitigate existing risks, can only be a good thing. Whilst the routes to those outcomes will be different between jurisdictions, if the end result is similar, then this will be a positive platform on which to build in future.

 

(This article has also been published in Solicitors Journal).


[1] General Editors: Andrew Butler KC and Ian Quayle, ‘Building Safety Act 2022, A Guide for Property Lawyers’ (The Law Society, 2024), p.3

While we property practitioners await the much-heralded October budget, it is a timely opportunity to let our readers know of the most recent HM Land Registry process updates.

It has certainly been a busy time at the organisation with substantive changes to eleven Practice Guides, and all designed to drive efficiencies through the ongoing digital transformation program.

Key changes include:

Practice Guide 82: Electronic signatures accepted by HM Land Registry– A reformatting of content to assist with clarity of explanations;

Practice Guide 67: Evidence of Identity– A change in guidance around identity facility letters, now valid for 12 months; and

Practice Guide 49: Return and Rejection of Applications for Registration– Certified copy deeds and documents will only be accepted on an application for first registration application until October 2024.

The common theme which emerges from the monthly HM Land Registry updates is a focus on the importance of effective communication, and ease of access to information.

Furnished with such up to date information, we are able to act proactively in the best interests of our clients, and to ensure our own practice and processes are exactly as they need to be.

We look forward to providing further news in this subject area as soon as we receive it.

If you need any further information or legal advice, including conveyancing of a property in England, please contact our designated UKRE team Anna DouglassAlastair HargreavesCaren Vidamour, and Hannah Damant, who will be delighted to assist.