RESIDENTIAL REAL ESTATE FOR PRIVATE CLIENTS

It is human nature to avoid thinking about scenarios where we may become either permanently or temporarily unable to manage our property and financial affairs.  Nevertheless, it is important to consider how best to protect our assets and loved ones during these difficult times.
Lasting Powers of Attorney ("LPA") are English legal documents by which you are able to give another person or persons (your ‘attorney(s)’) the authority to make decisions about your UK situated property and financial affairs.  Your attorney will have broad powers to do almost anything you could do yourself in relation to your UK property and finances. This includes buying and selling investments, accessing your bank accounts, buying and selling property and instructing Prime Portfolio.  
For completeness, the English courts generally do not recognise similar documents prepared in other jurisdictions and thus it is advisable to prepare powers of attorney in each jurisdiction where you own property.
Typically an attorney will not act under an LPA relating to property and financial affairs unless the person making the LPA (the ‘donor’) has become or is becoming incapable of managing their own affairs, however an LPA relating to property and financial affairs may also be used out of convenience (i.e. to donor is unavailable and instructs their attorney to act on their behalf).
If an individual is unable to manage their own affairs by virtue of mental incapacity and they do not have an LPA in place, their UK assets will be effectively frozen and no one would have immediate authority to deal with them. For clients of Prime Portfolio who hold property in their personal names, this will also mean that Prime Portfolio may no longer be able to take instructions in relation to the day to day management of the property(ies).
In the absence of an LPA, someone (most likely a family member) would have to apply to the Court of Protection to act as a deputy, an application that is costly and can take several months. During this time, no-one would be able to manage their assets. Even once the court has appointed a deputy, there is an ongoing burden of compliance (e.g. annual deputyship reporting).  In contrast, an LPA is prepared (and usually registered) in advance of mental incapacity at far less cost.  Whilst attorneys are obliged to follow certain principles in accordance with the Mental Capacity Act 2005, there are no formal reporting requirements under an LPA.
Therefore, where an individual holds property in their personal name in the UK it is important that they consider preparing an LPA relating to property and financial affairs. This ensures that their affairs can be adequately dealt with in the event of the mental incapacity, without the cost and delay of Court of Protection proceedings.

James Cook
Partner, Private Wealth, Trusts & Estate Planning
Collyer Bristow LLP
www.collyerbristow.com

Landlords of rental properties in the City of Westminster need to be aware of new additional HMO licensing requirements coming into force in Westminster with effect from 30 August 2021.
An HMO is a house in multiple occupation. This means that any house or individual flat in Westminster that is let to three or more people forming more than one household with shared facilities will need a section 254 HMO license from 30 August. This includes flats in multiple occupation in purpose-built blocks.
A household is defined as occupiers of the same family and includes spouses, cohabitees, same-sex couples and any blood relative.
This differs from a mandatory section 257 HMO licence introduced in England by the Housing Act 2004 where there are five or more people comprising two or more households sharing facilities. A mandatory licence is also required for a building converted into self-contained flats where the conversion did not comply with relevant Building Regulations in force at that time and still does not comply and where less than two thirds of the flats are owner occupied.
The purpose behind HMO licensing is to improve living standards in rental accommodation and to prove that landlords are ‘fit and proper’ persons to operate these properties. As part of the licence application, Westminster will usually carry out an inspection of the common parts of the HMO property to check it meets certain standards, such as the presence of fire doors and smoke detectors.
The person applying for the licence will in most cases be the party receiving the rent (the landlord or managing agent).
A fee is payable to Westminster for a section 254 licence. The licence will in most cases be valid for five years.
It is an offence to operate a licensable HMO without a licence and doing so could result in an unlimited fine on conviction or a civil penalty of up to £30,000.
HMO licensing rules are not consistent across every London borough as each borough can create its own set of rules.

With all the rain London has experienced in recent months, flooding of property has become a real issue. In addition, London’s water and sewage pipe network is now very old and prone to leaks and burst water mains not helped by the build-up of surface water in times of heavy rain. Prompt action when flood damage occurs is therefore essential and that’s when good property management comes into play.

We’re not embarrassed to trumpet our recent success in this area.

Back in June, three basement flats in one of the buildings we manage were flooded by a burst Thames Water pipe in the street outside the building. Of the three flats, we were responsible for one (the caretaker’s flat).

We got straight onto the building’s insurers in order to sort out repairs and have the caretaker’s accommodation ready for occupation as soon as possible.

We found suitable alternative accommodation for the caretaker, arranged storage for the caretaker’s belongings, met the loss adjuster on site to assess the damage, liaised with Thames Water regarding installation of a dehumidifier and stayed in contact with the loss adjuster throughout. We also negotiated with a separate loss adjuster in relation to damaged contents, succeeding in obtaining some new for old replacements.

We are proud to say that the caretaker moved back into the refurbished flat exactly 7 weeks to the day after the flood damage. In the same period of time, the agents who manage the other two affected flats have only provided repair quotations so those flats won’t be ready for occupation for some time.

If you need a proactive manager for your property, look no further – get in touch with us by email (info@primeportfolio.com) or by phone (020 7409 0209).

                                                                  Before and after repairs: