WANT TO SELL YOUR HOUSE FAST?

WANT TO SELL YOUR HOUSE FAST?

                                       THEN, GET YOUR HOUSE IN ORDER

by    Arshid Idris    Solicitor    15^th February 2012

Sellers of property often feel that the process of selling their house doesn’t move fast enough.

There may be a variety of reasons why a sale doesn’t progress quickly. Most of these can be overcome by doing the ground work I recommended in my blog of 15.12.11.

There are also some further, simple steps that a seller can take to speed up the selling process. These include the following:-

1. Energy Performance Certificate (EPC)

Home Information Packs (HIPS) are, of course, no longer required but an EPC is required in all cases and is readily available from a variety of Energy Assessors. Many sellers do not have an EPC for their property to hand over their solicitor at the start of the transaction.

2. Planning Consents, Building Regulations Approval

& Completion Certificate

Almost every property has undergone alterations requiring approval. This includes electrical work and gas installations such as a new boiler as well as double glazed windows and conservatories. Yet it is surprising that few sellers have the necessary paperwork.

This has given rise to a huge increase in indemnity insurance policies being taken out, usually at the expense of the seller. Not only does the seller incur the expense but the transaction is also held up as the lawyers often argue over the issue. It is worth stating that an indemnity policy is never as good as the approval which it is intended to make up for.

3. Guarantees

The originals of all guarantees should be provided by the seller to his solicitor at the start of the transaction. Of course, the buyer will need the original guarantees on completion of the sale so that a claim can be made if necessary.

4. Existing Indemnity Insurance Policies

Likewise, if you as a seller have any indemnity insurance papers for your property, it will help to save time by providing the papers to your lawyer right at the beginning.

Conclusion

All of this may seem obvious yet it is surprising how often the absence of these documents can and does cause delay in the sell.

As always, good preparation wins the day.      

Click here for more information 

Email: 

WELCOME TO THE WORLD OF ISLAMIC FINANCE

WELCOME TO THE WORLD OF ISLAMIC FINANCE

By  Arshid Idris   Solicitor  2nd February 2012       

In our property department, we have been acting for people buying their homes with Islamic finance (IF) for many years.

I recently came to know that Faizal Manjoo was in the area, so I asked for a meeting with him. I was very excited when he agreed as it was an opportunity to learn more about this fascinating, though complex topic. 

Originally from South Africa, Faizal Manjoo is a rare breed in that he is qualified both as an Islamic scholar and as a solicitor. He is now based in the UK and is presently studying for his PHD at Markfield Institute of Higher Education where he is a lecturer and researcher in IF. He is also a consultant to one of the magic circle of law firms in the city of London. I found him to be a man gifted with a sharp mind and a great thirst for knowledge and learning.

Arshid Idris:  What is IF and how does it differ from other types of finance?

Faizal Manjoo: IF is part of the Islamic economic system. Islamic finance has spread in three main areas: Islamic banking, Islamic insurance (Takaful) and the Islamic capital market.

IF differs from conventional finance in 3 key aspects. First “Riba”, which is interest. Then, there is “Gharar” which means excessive uncertainty. Thirdly, there is “Maysir” which includes gambling and the like. You will find some or all of these in conventional finance but they are prohibited in IF.

The sources of IF are the Quraan and Sunnah (the practice of the noble prophet Muhammad, who himself was a successful merchant). Hence, Islamic financial contracts are highly regulated. Accordingly, with IF, the contracting parties do not have the absolute freedom to contract on whatever terms they want so far as the financial terms are concerned. Whereas in conventional financing any type of product can be structured even though it can be ethically wrong.

Essentially, IF is designed to prevent economic unfairness.

Arshid Idris:  Are there any advantages of using IF?

Faizal Manjoo: Yes, there are several advantages, including that IF is more socially responsible. For example, “Zakat”, which is an Islamic levy aimed at alleviating poverty. 

IF is more ethical – an Islamic bank will not finance an operation such as a casino.

IF gives economic identity to the Islamic community.

Significantly, Islamic banking for instance offers mainly asset – backed products which have intrinsic value and not debt-backed products (money for money), as is the case with conventional finance.

Arshid Idris:  Is IF available to everyone?

Faizal Manjoo: Yes, IF is available to the whole community regardless of faith, as long as the finance is used according to Islamic principles.

Arshid Idris: Can you please explain about IF in relation to the purchase of land and property?

Faizal Manjoo: Unlike conventional finance, IF is designed to delay immediate outright ownership for the customer as IF requires that the bank takes the risk of the property until ownership is transferred to the customer.

There are presently two main schemes available.  The first involves the bank buying the property and leasing it to the customer with an option for the customer to buy the property after a set term. This is known as “ijarah wa iqtina”. So the bank bears the risk attached to ownership until all the rentals are paid for a set number of years. After that the client is given an option to buy the property or house at a far lesser price than the market rate. This product is different from higher purchase which includes two contracts in one contract. 

The other scheme involves a shared ownership between the bank and the customer. This is known as a “diminishing partnership” or “mushrakah mutanaqisah”. Both the bank and the customer contribute equity towards the property and the bank holds a bigger share in the beginning as it is financing the said property. Hence the bank initially owns the bulk of the equity. The customer who would reside in or use the said property will pay rentals for benefiting from the share of the bank in the property. Part of the rental paid will technically be considered as an investment towards buying the share of the bank over a certain period of time. Mathematically the share of the bank decreases with the passage of time due to the rental paid and the partial transfer of ownership. Over a certain period of time, the entire share of the bank is transferred to the customer. Often a trust is used for such a product to protect both the client and the bank.

Also, there was a model developed in the early 1980’s called the “Murabah”. This is technically a sale with a deferred payment facility whereby the bank will buy the property and then sells it to the customer on a deferred payment basis. The cost price and profit are known to the client. The customer will then pay by instalments over a period of time. However, the disadvantage of this model is that according to the Islamic law of contract, the sale price cannot be adjusted. Once a commodity is sold, the price cannot be changed. Hence there is no roll-over as in the case of a debt-financing transaction. This is not in favour of the bank.

Arshid Idris:  How do you see IF developing in the foreseeable future?

Faizal Manjoo: IF is expanding very fast at a consistent rate of 15%.

The IF market is worth 1trillion dollars presently and is expected to hit 4 trillion dollars in 4 years time. So it is clear there is an increasing market demand for IF, especially, in the emerging economies and in the Muslim world. The exponential growth can be explained by the awareness being created in the community and also a rise in the middle-class populace in many Muslim countries.

The conventional finance markets have suffered very badly since the 2008 credit crunch but hardly any IF activities were affected because IF is not based on debt or other toxic assets. This shows that IF is a very resilient product. 

Click here for more information 

Email:

info@idrissolicitors.co.uk  

FAILING TO MAKE A WILL IS A BIG MISTAKE

By  Arshid Idris  Solicitor   23rd January 2012

Making a will is a straightforward process and means that what should happen to one’s assets is made clear in a written document. 

Yet, surprisingly, most of us (6 out of 10 people) die without making a will. 

Why? 

The most common reason I have heard relates to couples, who say and believe “well, my partner will get everything”. 

This is one of the biggest misunderstandings about wills. 

In fact, if the couple are married, the surviving partner does not inherit everything: only a fixed amount. If the couple are unmarried, the partner inherits nothing at all. 

So the message is: get proper legal advice and make a will. 

If you don’t make a will, you leave things to chance and there will be uncertainty. By making a will, you are able to organise your affairs. Making a will gives you peace of mind as to what happens after your death. Have a look at the following examples of the kinds of difficulties you can find yourself in.

WILL	NO WILL
1. You will have chosen certain individuals (executors) to deal with your affairs after your death.	You will not have selected executors. This may cause arguments between family members and whoever wishes to act will have to be appointed by the court.
2. You will have thought about and provided for your loved ones as you think appropriate.	You will have no say in how your assets are divided up and in what shares between your family members. If you and your partner were not married, he/she will get no inheritance unless that person satisfies certain conditions and may need to apply to court, which will be costly and time consuming. Even if you are married, It is incorrect that everything will go to your husband/wife. What your spouse inherits depends on whether there are children and other relatives.
3. If you have children under 18, you can choose close relatives/friends to look after them in your place. They will be the children’s guardians and will take care of the children should your spouse die before you.	There will be no one to care for your children if your spouse/partner dies before you. This will cause distress and uncertainty as the court will have to decide who should look after your children.
4. You are free to choose to have your assets distributed in accordance with your own religious beliefs. Therefore, a Muslim can make a will requiring that his assets are distributed in accordance with Islamic law.	If you have no will, your religious preferences will have no bearing on how your assets are distributed upon death. The distribution follows the intestacy laws.
5. You can make gifts in your will which can result in substantial savings in inheritance tax. A will allows you flexibility. For children, you can delay their inheritance to a specific age, often age 25 is selected. Alternatively, you can arrange for a trust to be set up, which is a way of providing for children under 18 but can also be useful for adult family members.	If you have no will, you will not have the benefit of arranging your affairs in a tax efficient way. In the absence of a will, your family members will inherit according to the fixed rules in the intestacy laws. These provisions may not be appropriate for your family’s needs.

A will is a document in which you state who should inherit from you after your death. It is essential to make a will to provide for your family as you wish. If there is no will, your family is then dependent on the intestacy laws which may not provide for your family as you may have wished. 

Click here for more information

Email:
info@idrissolicitors.co.uk

HOW TO MAKE A SUCCESSFUL IMMIGRATION APPLICATION

By  Arshid Idris  Solicitor   11^th January 2012

In my office, I am often asked to advise on refusals of immigration applications. So, I thought it would be useful to share how I approach making an application. 

Satisfy the rules 

An application cannot succeed unless the rules for that particular case are met. Many applications fail because of a disregard of the rules. The complexity of the law cannot be underestimated. Even experienced lawyers can find it challenging to make sense of the rules. If the law was as simple as some people assume, clearly the courts would have no work to do. 

Preparation and presentation 

Having an understanding of the rules allows you to prepare the application with the correct details but this is not enough. Information has to be backed up with documents, which must be originals or atleast certified copies. Of course, your papers must be presented in an orderly, easy-to-follow form.

Arguing your case

It has been my experience that you stand a better chance of success if you make it easy for the UKBA or entry clearance officer to make a decision in your favour. This can be achieved by explaining the case in a covering letter which refers to your file of papers. Your argument is that you’ve got everything covered and that the only sensible decision is to allow your application. 

I hope you can see that making a successful application is not simply a form-filling-exercise. Rather it depends on a thorough and considered approach. Of course, you can make an application without legal advice but almost all refusals which I have come across are from such cases. Hiring a lawyer will increase your chances of success and avoid the disappointment and additional expense of a fresh application or an appeal. 

Click here for more information 

SELLING YOUR HOUSE IN A DIFFICULT MARKET

by Arshid Idris on 15.12.11

The key is to be realistic about your asking price. Getting this right means your property is worth buying even in difficult times. In the UK, we have a tradition of buying our homes based on the principle that a property bought at the right price is a sound financial investment.

Preparation

Even before you start marketing your property, its essential to prepare your house for sale. Put yourself in the shoes of a buyer and make your house desirable. This will involve de-cluttering, painting and sprucing up. There will be an expense but its money well spent.

Choosing your estate agent

Get your house from 'for sale' to 'sold'

Do your research and get recommendations. Don’t sign up to a sole agency which prohibits you from changing to another agent.

Your agent should not only get viewings arranged but must also follow up for feedback and keep you informed.

For every property, there is a potential buyer so if your price is right, you will find a buyer. But, it’s most important that you check your buyer’s position. In particular, does he have finance arranged? Either he should be a cash buyer or should have finance approved in principle. You also need to know if there is a chain when it will take much longer to sell than if there is none. Your agent must also check that the buyer’s survey/valuation has been done and that there are no issues.

Your solicitor

As with your estate agent, you need to keep in touch with your solicitor to check the sale is progressing. Get confirmation that the sale agreement has been sent to the buyer’s solicitor and that any enquiries have been answered. The critical stage is getting a completion date agreed. There is no reason why you cannot get to this stage about 3-4 weeks after instructing your solicitor.

Selling your house in the current market is not easy but with good preparation, persistence and patience, there is no reason why anyone cannot succeed in selling up and moving on. 

Click here for more information

TOP TIPS FOR BUYING A PROPERTY IN LEICESTER

by Arshid Idris  15th December 2011

Buying a house can seem an uncertain and daunting challenge. Yet, it should not be if you adhere to some important but often overlooked points.

• Choose your lawyer carefully 

Solicitors are not machines. They are individuals and each will do his/her work in their own way. The key is to find a lawyer you feel comfortable with. The mistake is to select on price. It’s a false economy to cut costs when choosing your lawyer. Cheap solicitors are generally not good solicitors.  Choose a solicitor who will be most able to handle what is probably the most important financial investment of your life.

• Be a proactive buyer

Hiring a solicitor is a 2 way street. If you want to be in control of the buying process (in as much as you can), you can’t afford to sit back and leave everything to your solicitor. Respond to requests for documents and information from him, and, equally, ask for any information you feel you need from him. Better lawyers prefer buyers who take an interest and assist them to progress the case, unlike most cut-price lawyers who would rather that their clients say as little as possible. 

 

• Check out the property

Buying a house which you’re going to make your home is naturally an emotive process but be wary of letting your heart rule your head. Take time to have a thorough look at the property in good daylight and ask searching questions of the owner. Be sure that the boundaries of the property are clear and check them against the Land Registry plan of the land which your solicitor should provide. 

No property is perfect but you need to avoid taking on a house which needs major repairs as soon as you’ve got the keys. If in doubt, have a survey.

• DIY checks

A survey report will tell you if there any significant structural problems with the house. It will not normally flag up issues with the wiring, central heating or plumbing. A house re-wire can cost upwards of £3,000.00 and a new boiler will set you back atleast £1,000.00. Its, therefore, vitally important to get local contractors to check the wiring, heating, and other services. This may cost you but the amount will be insignificant and will help to avoid any unnecessary and expensive surprises later on.

• Searches

There are a handful of well – known searches that you will need for any property but there are others which are less common. If you’re buying in the Leicester City area, the usual suite of searches is fine but step a short distance out of the City and other searches may called for. A good example is Coalville where a coal mining report will be required in addition to the usual searches. Past uses of the land also need to be considered. Land on which there was previously a railway line may require an indepth environment report and enquires with the local authority. 

• Stamp duty

 Every house buyer is liable to stamp duty but under current rules, first –time buyers have a special concession which means they have nothing to pay for a house costing up to £1/4 million. This means a first-time buyer is up to £2,500 better off than any other purchaser. This stamp duty holiday will end on 24^th March 2012, so first – time buyers should act now to take advantage of this. There is also an exemption for other buyers if the property falls within a “disadvanged area” and the price is not more than £150,000.

  

• Its great to be a buyer

 We are in the worst recession for generations with no end in sight. The property market is at an all – time low and property prices have remained stagnant for over 3 years. Yet these conditions have created real opportunities for those in a position to buy.

House buying can be a stressful experience but following these simple steps should mean that buyers will be better informed, more in control and more confident about their investment. 

Click here for more information 

WHY MAKING A WILL IS ONE OF THE BEST INVESTMENTS YOU WILL EVER MAKE

By   Arshid  Idris   Solicitor on 15th December 2011

When Gordon Brown was in charge of the nation's finances, he would often describe his economic measures and recommend them as "prudent".

When it comes to our own personal wealth and finances, we also need to apply good prudence.

We all know and understand the idea of saving for a rainy day.

Making a will is a similar measure; we are planning for a rainy day. 

The good news is that this planning can also involve savings. A saving in stress for our loved ones if we have made appropriate arrangements to provide for them and a saving in the tax payable on death. You have peace of mind that you have planned for your family’s future.

So, if making a will is prudent planning for the future, why are we so hesitant in getting the job done? 

Perhaps we lawyers are to blame for making people feel afraid of the process. In fact, making a will is in most cases a simple task. 

Let’s look at some common concerns:

I don't know how it works

Making a will is nothing more than putting your wishes on paper.

If you use a solicitor, you simply inform him/her how you want your assets to be inherited and it is the lawyer's job to make a document containing your wishes. You then sign this document and your will is complete.

Not sure about the cost

Charges for making a will vary but typically the cost is between £100 - £200.

Making a will is complicated

In fact, making a will is far easier and less stressful than buying or selling a house and probably easier than arranging a bank loan.

Therefore, considering the small cost involved and the benefits for you and your family, making a will has to be one of the most prudent investments of your life.

Click here for more information