When it comes to buying or selling residential property, misinformation and myths often cloud the process. From common misconceptions about legal obligations to misunderstandings about the conveyancing process, these myths can lead to confusion and costly mistakes. As experienced solicitors, we aim to clear up these falsehoods and provide clarity, ensuring you have the facts to navigate the property market with confidence.
“The fence on the left is mine, right?”
The idea that “the fence on the left is yours” (if viewing the property from the street) is a myth.
In the UK, there is no general rule about which fence (or boundaries) you own or are responsible for, so you cannot simply assume the fence on the left is yours. In order to establish your legal responsibilities for maintaining the boundaries of your property, your solicitor will need to check the title deeds.
A conveyance or transfer deed referred to on the title register may specify that you are responsible for all boundaries on a joint and equal basis with your neighbours (often referred to as a party wall or party boundary). It can also show that you are only responsible for some boundaries, which will be shown on the plan attached to the deed or conveyance, marked with a ‘T’ to indicate who owns which boundary and who is responsible for its maintenance. In other cases, title deeds can be silent as to who should maintain the boundaries. In this instance, you will find that neighbours tend to mutually agree to share responsibility for boundary fences or decide between them who is responsible for repair and maintenance of particular boundary lines. For example, it may be that historically on the street, people maintain the left-hand boundary (which is how the myth may have arisen).
Always seek legal advice on the position and check the title deeds (before deciding on paint colours).
“If I don’t own another property, I won’t have to pay the higher rate of SDLT”
When purchasing a property, most will know that if the property is £125,000 or more (£300,000 for first time buyers), you will be required to pay Stamp Duty Land Tax (SDLT) to HMRC (the threshold at which you pay SDLT will be lower if you are non UK resident or if you own other residential property). However, what many people don’t know is that SDLT can become quite complicated if you’re lucky enough to fall in love and get married or form a civil partnership, or even like someone enough to buy a property with them. For example, if one person owns residential property and they marry a person who has never owned property before, as soon as they marry, the person who has never owned property will lose their ability to claim their first time buyer relief in terms of SDLT. Another example is when a couple live in a property legally owned by one person and after marriage, decide to buy a new marital home together on the basis that they keep the property already owned by one of the spouses to create a buy-to-let. If they elect to keep the original property, they will not be disposing of their main residence and will therefore be required to pay the higher rate of SDLT when they acquire their new property. On this basis then, the spouse who has never owned property before will lose their first time buyer’s relief and be stung by the higher rate of SDLT.
“Once the seller has accepted my offer, the deal is done”
This is a common misunderstanding, and the rules within the UK differ so it is important to instruct a solicitor who is qualified to practice in the country in which you are purchasing. In England and Wales, an accepted offer does not make the transaction legally binding. Until contracts are exchanged, either the buyer or seller can withdraw from the transaction without reason or legal consequences. This often means that one party is left ‘out of pocket’ from either legal fees or survey fees (or both). With proactiveness on both sides of the transaction, and a clear dialogue between parties and agents, the risk of aborted transactions can be minimised, maximising client satisfaction on all fronts.
For any queries, please contact Claudia Carter or Natalie Griffiths-Jones.
