Latest Posts
A Buyer’s Guide to Off-Plan Property
Whether you are investing in property or buying your first home, one option that has gained popularity in recent years is buying property off-plan.
Off-plan property refers to purchasing a property before it is fully constructed. This approach has significant differences from buying a finished ‘second hand’ property.
The key points are discussed in this article to help you make an informed decision when considering purchasing off plan property.
Longer Payment Period
Developers often offer flexible payment plans, allowing buyers to spread their payments over the construction period, although the full balance will have to be paid at the completion date.
Whilst you will need to ensure payments are made on time and that they are protected against the developer becoming insolvent it allows buyers to maintain and manage their cashflow up to the point of completion.
This can make it more manageable for purchasers and reduce the immediate financial burden. You must of course be comfortable that you will have funds available come the completion date.
Choice of Specification
Off-plan buyers may have the option to customise certain aspects of the property, such as finishes, and fixtures, according to their preferences.
You may be able to negotiate this with developers and allow the required specification to be added to the legal contract. Developers will also retain the right to make minor changes to the specification.
Newer and More Energy-Efficient Properties
Off-plan properties are usually built with the latest construction technologies and materials, making them more energy-efficient and potentially leading to lower utility costs.
Investors should be able to rest easy knowing that there will be minimal repairs to be carried out to the property and building the first few years, keeping expenditure down.
New Build Warranty
For most properties bought off-plan, the developer provides the buyer with a New Build Guarantee from a recognised new build guarantee provider.
There are different types of warranty, some covering every part of the property, others only covering the structure.
You will need an experienced solicitor to guide you as to the strength and validity of the warranty and how these compare to others on the market.
The Consumer Code For Home Builders
The Consumer Code for Home Builders is a set of guidelines and standards designed to protect the rights and interests of new homebuyers.
It promotes transparency, fairness, and high standards of construction and customer service in the homebuilding industry.
Only builders and developers that are registered with a home warranty provider that has elected to participate in the Code must comply with its requirements. It is important to check whether your developer adheres to the code.
The Property and Building
The Developer will agree to build the property in accordance with all necessary planning permissions, the government building regulations, the standards required by the new build warranty provider, in a good and workmanlike manner and in accordance with the specification.
This is significantly different to a second-hand purchase where the condition of the property is not guaranteed and the principle of ‘buyer beware’ applies, with purchasers undertaking full surveys.
It is still sensible to engage a surveyor to monitor the build quality, and to undertake a snagging inspection for you at completion.
Developer Reputation
The success of your off-plan investment will heavily depend on the developer fulfilling its contractual building obligations.
Your solicitor can negotiate the contractual clauses ensuring these are market standard, however, it is important to do your research and ensure that you are comfortable with the developer you are purchasing from, rather than having to fall back on court action It is prudent to research the developer’s past projects and financial stability to gauge their reliability.
Conclusion
Buying off-plan property can be a rewarding investment strategy. Before making a decision, carefully evaluate your financial situation, conduct thorough research on the developer, and consider your long-term investment goals.
By doing so, you can make an informed choice that aligns with your objectives and risk tolerance.
As always, there are risks when purchasing any type of property. At Quastels, we are open in our approach and help clearly explain and assess any risk to purchasing off plan, to negotiate the contract, as well as providing you with practical advice
To discuss any of the points raised in this article, please contact Meera Malde or fill in the form below.
Is Your Building Registered Under The Building Safety Act 2022?
This article intends to give a summary of the registration requirement of high-risk buildings under the Building Safety Act 2022 (the Act) as they apply to you if you are the owner, and/or landlord of a building.
I Own or Manage a Building, Why Am I Having to do This?
In the wake of the Grenfell Tower fire tragedy, the Act introduces a raft of new reforms for landlords and developers to improve fire safety in residential buildings.
One such reform is the introduction of a new government body, known as the Building Safety Regulator (or BSR).
The BSR will be in charge of overseeing the safety standards of your building, as well as setting out possible methods of improving those safety standards and ensuring any recommendations are complied with. Registration is required to ensure the BSR has the means to monitor the safety of your building.
Does My Building Apply?
There are 2 criteria for your building to fall into the definition under the Act that will require you to register –
- Your building has to be at least 18m in height or at least 7 storeys. And
- It must contain at least 2 residential units.
What Responsibilities Will I Have?
If your building applies, “accountable persons” must be designated for it. This will be any organisation or individual who owns, or is responsible for, repairing its common residential parts.
Examples of an “accountable person” can include a freeholder, landlord or management company.
Where there is more than 1 party, a Principal Accountable Person (or PAP) needs to be designated. This designation should rest with the party who either owns, or is primarily responsible for, looking after your building’s structure.
As a PAP, you will be responsible for the following duties, in summary –
- Managing building safety and ensuring compliance with legislation, most predominantly on fire safety and structural issues;
- Maintaining reports and assessments on any such issues, with action points for possible improvements; and
- Applying for a building safety assessment (essentially a “sign off”) from the BSR, to demonstrate compliance with the above 2 duties.
When you receive their sign off, it should be displayed in a noticeable position in your building.
How Can I Register?
To register with the BSR, you will need to complete the online registration.
You will need to pay £251 per building you register and registration must be done by your PAP or a person authorised by the PAP, such as a solicitor.
What Do I Need To Include With My Application?
Your application needs to have the following information about your building–
- The names of any “accountable persons” and the PAP (with a single person identified as its definitive point of contact)
- Number of storeys and residential units
- Year of completion of the build
- A copy of the building control certificate
- Any pertinent structural and safety information including-
- Any building work carried out since original build
- The building’s use
- The external wall material
- Evacuation routes
- Fire equipment, such as hoses, alarms and extinguishers
- Fire risk assessment recommendations
What Are The Consequences Of Not Registering?
Failure to register by 30 September 2023 will constitute a criminal offence, so it is crucial you submit the relevant information as soon as possible.
Sanction for non-registration can include an unlimited fine and up to two years’ imprisonment.
To discuss any of the points raised in this article, please contact Josh Fraser, or fill in the below form.
Immigration Guide for Hong Kong Residents Relocating to the UK
The UK immigration system has undergone recent changes, and it is important to stay informed to ensure compliance and maintain your property ownership rights. This guide will provide you with a brief overview of the key visa options for individuals from Hong Kong, to consider.
| SHORT TERM | LONG TERM |
| Currently Hong Kongers do not require a visa to enter the UK for short-term stays for purposes such as tourism, leisure or business. However, the UK electronic travel authorisation (ETA) for Hong Kong travellers will become a mandatory requirement in late 2024, when the official launch is expected. | Hong Kongers who plan on visiting the UK for the long term or with the intention to settle in the UK will need a visa specific to their needs.The well-known BN(O) visa route is clearly very attractive but there are still many other immigration options available for Hong Kongers who are not eligible or who do not wish to apply under the BN(O) visa route. |
Is There A ‘6-Month In 12 Months’ (Or 180 Day A Year) Rules?
This is the most common immigration myth, and you may be pleased to know that there is actually no such rule. There is no specified maximum period in the immigration rules that an individual can spend in the UK as long as each visit does not exceed the maximum period for that visit, normally 6 months. However, if it is clear from your travel history that you are seeking to remain in the UK for extended periods or making the UK your home, the entry to the UK will be refused. This is because longer periods of stay in the UK comes with a rebuttable presumption of ‘non-genuine visit’. Nevertheless, spending over 183 days in the UK in any tax year may trigger UK tax residency.
Are You An Innovative Entrepreneur?
Innovator Founder visa opened in April 2023, designed for individuals who wish to set up and run a UK-based enterprise, without the need to show any initial capital to invest in the business and allowing you to take employment alongside running your own business. A key requirement is that you must be endorsed by a Home Office approved endorsing body who will then assess your business in the aspects of innovation, viability, and scalability. Therefore, a meticulously researched and well-structured business plan is crucial for the application and we, Quastels LLP, has a track record of securing endorsements for game-changing ventures, like a recent beverage company leveraging the metaverse and NFT tech.
Do You Have A Job Offer From A UK Business Partner Or Work Closely With A UK-Based Business Partner?
The UK’s main work visa route is called Skilled Worker visa, which is under a sponsorship system. This means you cannot simply apply for this visa unaided and securing a job offer from a UK business is a prerequisite for this visa route.There are currently over 61,153 licence holders in the UK but you may not be aware that any UK employer who is a legitimate business trading in the UK is eligible to apply for a sponsor licence, including a one-person business. Therefore, although the Register of licenced sponsors list is an extremely helpful tool to look for visa sponsorship, don’t limit yourself to any possibility.
Is Your Company Looking To Expand To The UK?
Global Business Mobility visa provides five pathways for overseas firms to establish a UK footprint or transfer staff to the UK. If you own or are employed by an overseas company, this visa allows you to enter and work in the UK as a representative of your company, then potentially be sponsored by the UK establishment and switch into the above-mentioned Skilled Worker route.
Are You A Talented And Promising Individual?
Global Talent visa is one of the most interesting types of visas as it covers a wide range of industries such as science, research, engineering, humanities, social science, medicine, architecture, digital technology, arts and culture, fashion, film, and television.
The most complex part of the process is to get endorsed by a Home Office approved endorsing body who will assess your career history including your international standing, the significance of your work and the impact of your activity in a company or as an individual. Each endorsing body has very different criteria and so it is crucial that you thoroughly read and understand their specific assessment criteria.
Are You Aged 18 To 30?
Youth Mobility Scheme visa is designed to enable people aged 18-30 to live and work in the UK for two years. It is straightforward to apply for, however, you should be aware that there is a cap of 1,000 places for Hong Konger and you must be selected in the ballot, which is typically opened in January and July each year.
Are You A Graduate Of Chinese University Of Hong Kong Or University Of Hong Kong In The Last 5 Years?
High Potential Individual visa allows recent graduates of a top global university to live and work in the UK without any sponsorship for two years (or 3 years for PhD or other doctoral qualification), which means you will not be tied to a particular job, you can be employed or self-employed.
Are You Looking To Join An Internship Programme In The UK?
Government Authorised Exchange visa is for individuals who want to come to the UK for a short time for work experience for up to 12 months or to do training, research or an Overseas Government Language Programme for up to 24 months.
Finally…
Owning to the UK’s colonial history with Hong Kong, you may want to explore whether you have a claim to British citizenship under the British Nationality (Hong Kong) Act 1990.
For example, if one of your parents were granted British dependent territories citizenship by the Hong Kong government between January 1983 and June 1997, amongst other ways to potentially qualify through a British parent, ancestor or colonial connection.
Conclusion
Changes to the Immigration Rules in recent years have created many new opportunities for people to relocate to the UK.
However, navigating the UK visa system can be complex and the Immigration Rules contain strict requirements.
Consulting with an experienced immigration lawyer at Quastels LLP is crucial to ensure you understand the most appropriate visa options and comply with all legal requirements. Our team is here to guide you through the process and provide tailored advice based on your unique circumstances.
To discuss any of the points raised in this article, please contact Jayesh Jethwa or fill in the form below.