Author: MLSAdministrator

OUT WITH THE OLD AND IN WITH THE NEW -Occupation Contracts (Wales)

THE RENTING HOMES (WALES) ACT 2016 – OCCUPATION CONTRACTS

The Act are not yet in force. However, it is anticipated that provisions in the Act will be introduced in Spring of 2022.

Once enacted, there will be a number of changes to tenancy laws in Wales. This article deals briefly with the anticipated changes to residential landlord and tenant agreements.

Most current tenancies – those on an assured short-hold or assured tenancy will be replaced.

An assured short-hold tenancy is to be the standard contract.

An assured tenancy would be replaced by a secure tenancy.

There will be “model contracts”  available .

Some of the terms in these contracts will be mandatory . They cannot be removed or altered.

Other terms may be altered and removed on the proviso that both parties agree – BUT – only if the alteration or removal improves the position of the tenant (the contract holder).

All occupation contracts must be in writing .

If the Landlord fails to provide a written agreement (standard or secure contract) the tenant will be permitted to claim back up to 2 months rent  plus interest, calculated on a daily rate.

 MLS

Here at MLS we are regularly instructed by landlords to advise on compliance and possession claims. If you have any questions please contact us on 01244 478 730 and  we will be happy to help.

Useful Links

https://www.propertymark.co.uk/asset/38F553DC-FF0B-48A4-A17D6AA0E2D23573/

https://business.senedd.wales/documents/s38682/RH%2026%20-%20Guild%20of%20Residential%20Landlords.pdf

This article is for information purposes only and does not constitute legal advice. Please contact us for advice.

 

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The Increase of Family Law Court Fees

The Increase of Family Law Fees

The introduction of the Court Fees (Miscellaneous Amendment) Order, will mean an increase in costs, of some Family Court applications, from the 30th September 2021. The fee increase is a result of a Ministry of Justice consultation, which found that court fees only brought in a net income of £724 million in 2019/2020, compared to the £2 billion running costs of HM Courts & Tribunals Service. The government argue these are inflationary increases. This article will explore some of the court fee increases.

Divorce Court Fee Increases

There has been an increase from £550 to £593 for filing a petition for a divorce, nullity or civil partnership dissolution. An increase from £50 to £54 will apply for an application for a Decree Nisi, conditional order, decree of judicial separation or a separation order. There will also be an increase from £50 to £53 for an application for an agreed consent order. An application for a financial remedy order will rise from £255 to £275. An application in existing proceedings on notice has been increased from £155 to £167. Making a request for a copy of a document from the court will rise from £10 to £11. However, there is no fee for a Non-Molestation or Occupation Order application.  

Children Court Fee Increases

Under the Children Act 1989, an application for a child arrangements order, specific issues order, prohibited steps order, parental responsibility or financial provision for children, will rise from £215 to £232. An application for a section 8 order, enforcement order, compensation for financial loss, change of a child’s surname or removal from jurisdiction while a child arrangements order is in force, special guardianship order, secure accommodation order, contact with child in care order, education supervision order,variation or discharge of care and supervision order, child assessment order, emergency protection order, and recovery order will all increase from £215 to £232. An application under section 31 of the Children Act 1989, for care and supervision orders, will increase from £2,055 to £2,215. An application under section 22 of the Adoption and Children Act 2002, for a placement order, will increase from £455 to £490.

Conclusion

Fee increases could potentially reduce access to legal services but a free initial consultation with MLS, could guide you in the right direction. At MLS we can assist with myriad of family law issues, give us a call to find out more.

This article is for the information purposes only and does not constitute legal advice. Please contact us on 01244 478 730 to speak with one of our excellent family law solicitors.

 

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Welsh Water urges landlords to act to avoid costs brought about by regulation change.

By Elaine Gunning

 

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Tenancy Hardship Grant – private rented sector – Wales

Landlords and the Tenancy Hardship Grant – private rented sector – Wales

By Elaine Gunning

In order to apply for a Tenancy Hardship Grant, the tenant must have experienced financial hardship due to the Covid-19 pandemic and have been unable to  pay their rent.

Applications by the tenant for the grant are via the tenant’s local authority.

For any tenant to be eligible they must have:

• built up 8 weeks or more of rent arrears between 1 March 2020 and 30 June 2021
• live in and hold a tenancy for a private sector property in Wales
• have not been in receipt of housing benefit or housing cost payments through Universal Credit during the period the arrears accrued
• have been unable to fully pay the rent during the period when they went into arrears because of Covid-19.

In order to make the application to their Local Authority, the tenant will be required to complete an application form and provide evidence to help the Local Authority to make a decision on eligibility.

A tenant will be required to provide:

• proof of ID (a driving licence or a passport or a birth certificate with household bills that prove the address for the last three months)
• a copy of bank statements for at least the past two months (including any saving accounts)
• a copy of the tenancy agreement
• evidence and explanation of the inability to pay rent because of Covid-19 –a review of the tenant’s finances will be undertaken by the Local Authority.

A tenant should advise his  landlord or agent that they are applying for a grant.

The Local Authority will contact the Landlord or agent who will be asked to provide a written statement confirming the person who is making the application is a tenant, that they are in rent arrears and the amount of those arrears.

If the application is approved the grant will be paid directly to the Landlord or Agent.

This grant is not required to be paid back.

This help does not apply in England

MLS

Here an MLS we are regularly instructed by landlords to advise on compliance and possession claims. If you have any questions please contact us on 01244 478 730 ,  and we will be happy to help.

Useful links:

https://gov.wales/tenancy-hardship-grant-private-rented-sector-tenants-coronavirus

 

This article is for information purposes only and does not constitute legal advice. Please contact us for advice.

 

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Who can witness my will?

What is a witness?

In order for a will to take effect, it must be correctly signed by the testator (the individual making the will) as well as two independent witnesses. Anyone over the age of 18 with mental capacity can witness a will, such as a neighbour, friend, GP, solicitor or members of staff at a bank. The witnesses must not be related to the individual or have any personal interest in the will itself. The role of a witness is to ensure that the same person who has written the will is also the one signing it.

Why are witnesses important?

 The main role of a witness is to confirm the identity of the individual who has created the will and to prevent fraud through false signature and coercion. Wills are a written expression of a person’s desires and therefore quite personal, by having the correct witnesses in place, this ensures that the will is valid and can be executed as intended by the individual.

Refusing to sign a will

There are situations where you can refuse to sign a will, these include (this is not a definitive list, so please use your own judgement when taking on such responsibility):

• If you feel the individual whose will you will witness does not have sufficient mental capacity e.g. dementia, brain injury, a disability or a mental illness;
• If you are named as a beneficiary of the will or are related to the individual, you should not sign as a witness,as this could cause disputes later on;
• If you believe the individual is being forced into creating the will; or
• The person signing the will is not the testator.

If you have any doubt as to the testator’s identity or ability, you should refuse to sign the will.

The consequences of incorrect witnessing

If a will is not executed correctly, it will become invalid and could lead to a previous will being considered (if there was one previously) or the intestacy rules would apply. These are a set of rules which govern how property (estate) is divided up if a person dies without leaving a valid will and can result in unfavourable outcomes in some cases. Therefore, it is important to seek legal advice if you are considering making a will or already have one but need it witnessed. Our experienced solicitors can guide you on the most appropriate way to witness your will, depending on your situation.

 

This article is for the information purposes only and does not constitute legal advice. For further information, please contact us via email at hello@my-local-solicitor.com or call us on 01244 478730.

Author: Mahum Fatima

 

 

 

 

 

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What is a partnership agreement and do I need it?

When starting a business, partners may feel excited and optimistic regarding the future of the company and may believe that they will always get along with one another. This is not always true.

There are a number of factors which can affect the day to day running of a business, such as change in legislation or personal vision for the company. These issues are likely to create a difference in opinion in minor matters or major transactions and lead to stressful situations. Therefore, it is wise to consider the possibility of obtaining a partnership agreement which protects everyone’s interest along the way.

 What is a partnership agreement?

 A partnership agreement is a formal contract that outlines each partners’ responsibility and aims to divide these equally between all parties. Depending on what type of company you have, a partnership agreement may take on a slightly different name. There are three types of agreements, including:

1. Operating Agreement for limited companies;
2. Shareholder Agreement for corporations;
3. Partnership Agreement for general partnerships

Why create a partnership agreement?

There are major benefits to having a partnership agreement, some of these are discussed below:

Clarity

This form of agreement helps to establish rules for each partner and dictates how a partnership is run. A major benefit to having such an agreement in place is that it removes any doubt as to the partners’ position and role within a company, thus, leading to fewer disagreements.

 Reduces costs

If a partnership agreement does not cover a particular situation, there may be disagreements concerning its operation which could result in solicitors being involved. If the dispute is not resolved, it will cost the business time and money to reach a fair decision, especially if courts are involved. Planning in advance and setting out clear terms will help to remove the stress and reduce the chances of a dispute getting out of control.

 The Partnership Act 1890

This piece of legislation will be used to govern a partnership in cases where there is no partnership agreement. This will put the company and its partners at a major disadvantage, as the law is quite archaic and will presume all partners have an equal stake in the business. This will not factor in a non-performing or disruptive partner and will contribute to further disputes moving forward.

 Financial contribution

If you do not have a partnership agreement, the law as mentioned previously, will assume all partners have an equal share. Therefore, this will not take into account how much each partner has contributed to the company in terms of capital and is likely to result in an unfair financial settlement for those who may not have invested as much or carried out the same level of responsibility.

As seen in the examples above, the main purpose of a partnership agreement is to ensure that all partners have a clear vision of their roles and responsibilities. It acts as a safeguard to protect their financial interests as well as dictate how partners can be removed. The main goal here is to ensure fair practices and reduce costs to the company due to disagreements and/or failure to perform.

This article is for information purposes only and does not constitute legal advice. Please get in touch with us by calling 01244 478730 or email hello@my-local-solicitor.com and one of our experts will be able to advise.

 

 

 

 

 

 

 

 

 

 

Photo by Toa Heftiba on Unsplash

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Shareholders’ Agreement – do we need it?

Introduction

Many shareholders of a company enter into a shareholders’ agreement with each other as to how they will behave in respect of their company. However, the agreement is widely disregarded by many businesses as it is not a legal requirement. Some shareholders believe that nothing will go wrong in the future. Many shareholders consider an agreement unnecessary, as they could rely on their close friendship with other shareholders, to solve problems. Some shareholders also feel that if the provisions in an agreement, could also be included in the company’s articles of association, then why the need for a shareholders’ agreement? This article will explore what a shareholders’ agreement is and whether or not it is needed.   

What is a Shareholders’ Agreement?

A shareholders’ agreement is a private contract between the shareholders of a company that creates legally binding obligations between shareholders. The agreement provides clarity on important matters that affect shareholders, such as their duties, and how disputes are to be resolved, for example. A shareholder does not have to enter into an agreement. If a shareholder enters into an agreement he must do so without compulsion. Agreements are not regulated by the Companies Act 2006, so there is no legal process under the CA 2006, to alter the agreement. Therefore, most shareholders’ agreements will normally state that all shareholders, who are a party to the contract, must give consent to amend it.

Do I Need a Shareholders’ Agreement?

Friendships with other shareholders could deteriorate without a well drafted agreement, resulting in expensive litigation. A minority shareholder can have more control in the running of a business, under an agreement, as all parties to the contract, must agree to an amendment. A shareholders’ agreement can include a shareholder’s personal rights which are contractually enforceable, for example, the right for a specified person to be appointed as a director. By contrast, if this right was included in the company’s articles, it would not be contractually enforceable under section 33 CA 2006. An agreement also allows for commercially sensitive information to be included, as it is a private document. The impact of Covid-19 has necessitated the need for a shareholders’ agreement. The pandemic has initiated changing circumstances for business owners, such as cash flow problems, a desperate need for investment, shareholders becoming incapacitated due to Covid-19. A shareholders’ agreement is essential as it can be tailored to suit the needs of the business and cover a myriad of situations.

Conclusion

A shareholders’ agreement is a crucial document that legally binds all parties and can avoid potential conflict between shareholders, especially as the company’s articles of association, do not provide adequate protection. Obtaining a bespoke shareholders’ agreement from MLS will ensure the effortless running of the business and provide it with the best chance to flourish financially. It is imperative that every company has a shareholders’ agreement, or an updated agreement, that grows in harmony with the business, and takes the impact of Covid-19 into account.

This article is for informational purposes only and does not constitute legal advice. Contact us today on 02144 478 730 to book your free, no obligation, consultation.

Author: Niresh Naidoo

Photo by krakenimages on Unsplash

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What is the role of an Executor?

What is an Executor?

In short, Executors are people authorised by a Will to deal with a deceased’s estate.  They are also responsible for ensuring that the instructions set out in the Will are carried out.

This formal authority is obtained by “proving” the Will at the Probate Registry, which issues a grant of probate as evidence to everyone that the named Executors have the authority to administer the estate. 

When the grant of probate is issued, the deceased’s Will becomes a public document.

What are the main duties of the Executors?

The duties of the Executors are mostly to collect the estate, pay all debts outstanding at the date of death (including those arising during the administration of the estate) and to distribute the residue of the estate. 

An Executor should be a trusted and reasonable individual who is over the age of eighteen.

If there is no one that the person making the Will could or would like to appoint as an Executor,  then there is always an option to appoint a solicitor instead.  Solicitors will charge for this service but this would come out of the estate and is often seen as ‘money well spent.’

An increasingly popular, and often more affordable option,  is to name family members or friends as Executors and to appoint a solicitor to assist the Executors throughout the process.  This could be clarified in a Will and significantly lessen the burden of becoming an Executor while still holding onto the control over the estate.

What would be some of the other roles of an Executor? 

• Checking to see if there are any instructions regarding the funeral – this includes checking if there is a pre-paid plan or insurance to help pay for it as well as any specific requests about the funeral itself.
• Notify all of the relevant people such as insurance companies and banks of the date of death.
• Settling the deceased persons finances and paying any bills that are owed.
• Valuing the estate.
• After a valuation has been undertaken on the deceased’s estate, the executor will have to deal with paying Inheritance Tax (if applicable).
• Keep an account on what has needed to be spent and how everything has been administered to show that the Executors have administered the estate properly.

The above roles are only a handful of what Executors have to do, but it shows the level of responsibility Executors have and their role is not often an easy or straightforward task.

Can Executors also be beneficiaries?

Executors do not have to be beneficiaries of the Will, but they can be. Most clients like to leave a gift in their Wills  in order to show their gratitude and appreciation to the Executors for the work they had to carry out.

Here at My Local Solicitor, we are more than happy to discuss your particular circumstances and help you choose your perfect Executors and/or assist them with their role when required.

Photo by Ben White on Unsplash

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