Legal Update

1. Home Information Packs ('HIPs')

About Home Information Packs
As you are no doubt aware from recent press reports, from 14th December 2007, every home put on the market in England and Wales, no matter what shape or size, must have a Home Information Pack (‘HIP’).

The HIP brings together certain legal information at the beginning of a transaction, allowing a purchaser, free of charge, to make a more informed decision, before submitting a formal offer.  The Government argues that the implementation of the HIP will also alleviate time, money and stress factors when purchasing a property.

Included in the HIP is compulsory documentation such as a Home Information Pack Index, a Sale Statement, Standard Searches, Evidence of Ownership, Planning/Building Regulation Permissions and an Energy Performance Certificate marking the efficiency of your property on a Sliding Scale. The Energy Performance Certificate will also make recommendations such as how to reduce carbon emissions, and suggestions on cutting fuel bills. If your property is Leasehold, additional information relating to your Landlord, Managing Agents, Ground Rent and Service Charges must also be included.    

The pack also allows for optional documentation to be included such as a Home Condition report (type or survey), a Legal Summary, Fixtures Fittings and Contents and Seller Property Information Forms, Guarantees, and any other information that may aid the sale.

If you decide to sell your property privately a HIP will be required if there is any element of marketing such as placing an advert in a paper or putting up a homemade ‘For Sale’ board in your front garden.  However if there is no element of marketing in the transaction, such as selling to a member of your family or a friend, then no HIP will be required.

Our Services
Here at ACS Solicitors we are able to prepare a comprehensive HIP allowing you to freely market your property with the safe knowledge that you are abiding by the new regulations.  By instructing ACS Solicitors to prepare the HIP on your behalf you can then approach an Estate Agent of your choosing and begin marketing your property.  An independently prepared HIP will also allow you to change Estate Agents should you wish to do so without any tie in, or financial liability.  The HIP belongs to you.
 
Normally, the seller(s) of a property would be responsible for the cost of a pack, though if a pack is provided by ACS Solicitors a seller would be able to defer any costs to later on in the sale if required.     

If you wish for ACS Solicitors to prepare your HIP or indeed have any questions regarding HIPS before deciding to market your property please feel free to contact us for a free consultation.

 

2. Lasting Powers of Attorney

From the 1st October 2007, new legislation came into force replacing the previous Enduring Power of Attorney (EPA), with the new Lasting Power of Attorney (LPA).  Existing EPAs are still legally valid.

What is a Lasting Power of Attorney?

A Lasting Power of Attorney (LPA) is an important legal document that enables a person (the Donor) who has current capacity, and who is over the age of 18, to choose another person or persons (the Attorney) to make decisions on their behalf either immediately or when they are no longer able mentally to do so.

Everybody should consider implementing an LPA, both to protect themselves and also to protect those friends and relatives close to them who may be left to deal with their financial and personal wellbeing.  

There are two types of LPA;

A Property and Affairs LPA -     For decisions relating to finance, such as the selling of the donor’s home, dealing with bank accounts, paying bills and collecting benefits; and

A Personal Welfare LPA -         For decisions about all welfare matters such as where to live (i.e. your own home or residential care), day to day care, having certain medication or even life sustaining medical treatment.

Decisions relating to Lasting Power of Attorney

The Donor can stipulate the power given to the Attorney, and include restrictions within the category.

An Attorney is appointed to make decisions as if they were the Donor themselves.  The Attorney must act in the best interests of the Donor, and have regard to the Code of Practice.

Who do I appoint as Attorney?

In general donors tend to appoint family relatives or close friends.  The donor can appoint more than one Attorney, the Attorneys being able to act together or individually depending on the donor’s wishes.

Whoever you chose to appoint, they will be asked to sign the LPA, and will be fully involved in the process.

How much does it cost?

An LPA needs to be registered with the Office of the Public Guardian before it can be used.  There is a £150.00 registration fee for this process.  An unregistered LPA will not give the Attorney any legal powers to make decisions for the Donor.  The Donor can register the LPA while they have the capacity, or the Attorney can apply to register the LPA at any time.

Our costs are typically £225.00 for a simple straightforward LPA, or for couples we offer a reduced rate of £325.00, again if they are simple and straightforward.

What do I do next?

Having an LPA is an important decision, as important as making a will.  If you lose your mental capacity and do not have an LPA, an application to the Court will need to be made on your behalf for someone to act as your receiver.  This is a far longer, and often costlier, process. 

If you are considering making a Lasting Power of Attorney and wish for further advice please contact us for a free appointment to review your situation.  Please note there is no charge for the initial meeting.