Tees advises on the purchase of over 230 acres of land and an industrial site

Looking back over the last 12 months; Tees are thrilled to have advised longstanding clients, R S Coleman and Schwier Farms Limited, on their joint purchase of over 230 acres of arable land and a muti-let industrial site in Essex in December 2022.

Simon Dixon Smith of Land Partners acted for the purchasers from an agency perspective and Paul Walker of Whirledge & Nott was the sellers’ agent.

Paul Walker stated:

This sale was one of the largest areas of land offered to the market in the Rodings area for some time. Strong local interest was expected, especially from neighbours many of whom are well known by the vendors and themselves valued clients of W&N. Confidentiality and an understanding the parties’ objectives and sensitivities is always paramount but even more so in this case, given the personal connections. The strong professional relationship between the respective agents and solicitors greatly helped in navigating the complexities of this transaction to keep all parties aligned through to completion.”

From the legal side; Partner, Daniel Fairs of Tees’ Rural and Commercial Property team, took the lead in advising both purchasers on all aspects of the transaction. A third party was also involved in this and purchased a third parcel.

A number of complications arose during the transaction; including unregistered land, overage in favour of the Seller, bank funding, and the separate parcels of land needed rights over each other. Further elements to this transaction, related to a Farm Business Tenancy and a Pre-emption Agreement with all elements needing to be completed at the same time as the purchase.

Daniel was able to navigate all the complications and issues and advise the clients through the purchase, resulting in an excellent outcome for all involved.

Daniel Fairs commented:

“The Coleman and Schwier families have been clients of Tees for a number of years, and I have worked closely with the clients for the last 4 years to understand their farming business. I was delighted to have advised the clients in connection with this complex purchase and worked closely with all the professionals to get this deal across the line. I hope to continue supporting the clients with expanding their business from both a farming and diversification point of view in the future.

Coleman and Schwier families commented:

We can’t speak highly enough of Daniel Fairs of Tees. We have used him for a variety of different cases, and we have always been pleased with his work. Daniel takes the time to explain things in layman’s terms, helping to clarify any and all points that can be lost in the translation of legal documents. We were also impressed with the solutions Daniel proposed to complicated situations that arose during the cases that he has taken for us. Daniel is an excellent solicitor, and we would thoroughly recommend him.”

Investing in a French property at a reduced cost: The purchase of the bare title only

Buying a French property at a lower price is possible through the concept of bare ownership. By purchasing only the bare title, you reduce upfront costs and gain full ownership at the end of the usufruct period. Here’s how it works and why it could be a smart investment.

What is Bare Ownership?

Bare ownership involves dividing property ownership into two parts:

  • Bare owner: Owns the property but cannot use or benefit from it during the usufruct period.
  • Usufructuary: Holds the right to use the property and receive rental income.

Once the usufruct period ends, the bare owner automatically gains full ownership. The responsibilities and obligations of each party are outlined in the authentic deed of sale, notarised as required by French law.

Both the usufruct and the bare title have a value, which is calculated by the French tax administration based on the age of the usufruct holder at any given time, as follows:

Age of Usufruct holderValue of usufructValue of bare title
Under 21 years90%10%
From 21 to 30 years80%20%
From 31 to 40 years70%30%
From 41 to 50 years60%40%
From 51 to 60 years50%50%
From 61 to 70 years40%60%
From 71 to 80 years30%70%
From 81 to 90 years20%80%
From 91 years10%90%

Why buy in Bare Ownership?

Investing in bare ownership offers numerous advantages:

  • Reduced purchase price: Acquire property at a 30-50% discount compared to full ownership.
  • Tax benefits: Loan interest may be deductible if the usufruct is held by a social landlord or taxable lessor.
  • No management costs: Maintenance and management expenses are borne by the usufructuary.
  • No rental risks: The usufructuary handles tenant management.
  • Wealth tax exemption: The property is excluded from your taxable real estate wealth (IFI).
  • No property taxes: Property and housing taxes are paid by the usufructuary.
  • Guaranteed full ownership: At the end of the usufruct period, you become the sole owner with no additional cost.
  • Estate planning: You can transfer bare ownership to heirs with reduced inheritance taxes.

Potential drawbacks of Bare Ownership

  • No immediate use or income: You cannot occupy the property or earn rental income until the usufruct ends.
  • Financing challenges: Banks may hesitate to finance bare ownership without additional guarantees.
  • Responsibilities: Without clear terms in the contract, major repairs could become the bare owner’s responsibility.

How to purchase bare ownership

Bare ownership purchases can occur between individuals or through specialised companies that manage usufructuary rights. Typically, companies offer limited usufruct periods (15-20 years) and professionally manage the property. This arrangement ensures a lower purchase price and hassle-free management.

Before committing, UK buyers should consult with a British accountant to assess any UK tax implications.

Financing a Bare Ownership purchase

While financing options are limited, possible solutions include:

  • Mortgage on other assets: Using another property as collateral.
  • Life insurance pledge: Pledging a life insurance policy as security.
  • In fine loans: Paying only interest during the loan term, with capital repaid at maturity.
Additional considerations
  • Donation in Bare Ownership: Gifting bare ownership can reduce inheritance taxes. However, this process is irrevocable.
  • Sale in Bare Ownership: Sellers seeking liquidity can retain usufruct rights while accessing capital from the sale.
  • Parent-child purchases: Parents can buy usufruct while children hold bare ownership, facilitating property acquisition.
Expert guidance

Bare ownership can be a smart investment, but legal and financial advice is essential. Contact Avocat Herve Blatry for personalised guidance on navigating the complexities of bare ownership in France.

 

Planet Education’s £3.8M freehold purchase: York House deal

Tees have recently advised Planet Education Networks (Planet Education) on its £3.8 million freehold purchase of York House in Birmingham.

Planet Education runs a global network of education institutes aiming to provide high-quality higher education courses. With the purchase of York House, which sits on a prominent corner location at Newhall Street and Great Charles Street and is a substantial five storey building of 22,175 sq ft, Planet Education intends to turn the property into an education campus to expand its existing campus in Birmingham.

Partner, Daniel Fairs, who was assisted by solicitor, Andrew Harrison, worked quickly and efficiently to finalise the purchase within Planet Education’s required timescales. Leaning on their experience, Daniel and Andrew were able to complete the transaction within six weeks of the agreement of the Heads of Terms.

Daniel Fairs’ commented:

“It was a pleasure to have advised the purchasers, Planet Education Networks Ltd, with their strategic purchase of York House. All the professionals worked tirelessly to get this deal across the line. I look forward to hearing more as the property develops and seeing the end result when the campus is up and running”. 

This project is a great example of the potential and growing trend to repurpose city centre office buildings such as York House for alternative purposes such as for the educational and living sector.

Guide to farm diversification opportunities after the Basic Payment Scheme (BPS)

The post-BPS era has brought about significant changes in the agricultural landscape of the United Kingdom. Whilst there are several different grants and schemes available to landowners, farm diversification is a viable strategy to secure financial stability and thrive in the changing environment, as farmers face the challenges of adapting to this new reality. This article will explore farm diversification, examining the legal considerations and opportunities for farmers in the post-BPS era.
Understanding farm diversification

Farm diversification refers to the practice of expanding agricultural operations to include non-traditional activities or ventures. By diversifying their income streams, farmers can reduce reliance on the uncertain profitability of traditional farming practices and mitigate the impact of the loss of BPS.  However, it is important to note that farm diversification can involve legal complexities that must be carefully navigated to ensure compliance with regulatory frameworks.

Guiding you through diversification opportunities

Our Agricultural team at Tees can play a crucial role in assisting farmers in enabling and advising on potential diversification opportunities. We have an in-depth understanding of the legal and regulatory frameworks governing various sectors, enabling us to guide farmers through the process alongside their accountants and land agents. Some common avenues for farm diversification include:

Renewable energy projects: With the increasing demand for clean energy, farmers can explore opportunities in wind, solar, battery, biomass energy or anaerobic digestion. Our renewable energy team can assist by advising on contracts, options and leases including addressing planning and environmental mitigation schemes.

Agri-tourism: Many farmers have found success by opening their farms to the public and offering attractions such as farm tours, educational workshops, camping, glamping or other farm-stay experiences. Our team of solicitors can help you navigate the related regulations,  liability, health and safety and business structures including commercial agreements and terms and conditions.

Food and beverage production: Value-added activities such as on-site food processing, artisanal products or farm shops can provide additional revenue streams. We can assist in establishing appropriate business structures and ensuring compliance with food safety regulations.

Rural recreation and leisure: Using farm assets for activities such as nature reserves, fishing lakes, equestrian centres, adventure parks, events, festivals and secure dog walking fields can attract visitors and generate income. We can help farmers address legal matters related to liability and public access rights, as well as advice on commercial agreements and terms and conditions.

Natural resources: Biodiversity Net Gain can offer alternative income streams for farmers.  Our Natural Capital Team can assist with drafting and negotiating long term Farm Business Tenancies (FBT’s) for Biodiversity Net Gain and Woodland Carbon Units, negotiating documentation for landowners documenting arrangements with habitat bank providers including FBT’s and Habitat Management Agreements, dealing with Section 106 Agreements where offsite offsetting is being provided for development sites getting approval of lenders to enter into such agreements where land is charged to a bank.

Legal Considerations when diversifying your farming business

Engaging solicitors familiar with agricultural law is essential for farmers pursuing diversification projects. Here are some legal considerations we can assist with:

  • Considering the tax implications with your accountant, both on terms of taxation of income streams and capital taxes is vital. Our property and commercial team can assist with implementing tax advice given by re-structuring business and finance and/or moving land and assets into separate legal entities.
  • contracts and agreements: developing robust contracts is vital when engaging in activities such as leasing land for renewable energy projects, negotiating supply agreements, or partnering with third-party businesses. Our commercial  team can ensure the protection of farmers’ interests and avoid potential disputes.
  • regulatory compliance: diversification activities are subject to a range of regulations, including health and safety, environmental protection, food safety, and licensing. Our regulatory team can guide farmers in meeting compliance requirements and reducing legal risks.
  • intellectual property: farmers involved in product development or branding should consider protecting their intellectual property through trademarks, copyrights, or patents. Our commercial team can assist in securing these protections and enforcing them if necessary.
  • succession planning: farm diversification often involves long-term investments. We can help farmers navigate succession planning, ensuring a smooth transition of assets and business operations to future generations running the business.

Tees Better Future Fund grant award to Sports Connections Foundation (SCF)

In 2023, our Tees Better Future Fund granted Sports Connections Foundation (SCF) £5,000 to help fund their project, which supports the good health & well-being of children and young people through sport and physical activity.

SCF embarked on an ambitious summer sports programme for primary school-aged children. Using Great Berry Primary School in Basildon as a base, SCF organised multiple sports sessions (involving hundreds of children), with an emphasis on football. This was delivered by former professional footballer and manager, Paul Brush. SCF’s unique sporting offer is to work with a variety of professional athletes to develop young sporting leaders in communities. SCF recognises that many families are unable to send their children to sports camps during the summer, but initiatives such as ‘Inspire Through Sport’ make this possible.

Amongst other activities, SCF delivered their infamous ‘Pro Kick Challenge’ for the whole school. To complete the challenge, the children attended a session where SCF founder and former professional footballer, Junior McDougald, spoke about the importance of community and supporting each other and children across the world. The children then had lots of fun taking penalty kicks in the inflatable goals, where their shot speed was recorded. The cheers from the children in the school hall were deafening – even the teachers joined in, much to the amusement and joy of the children!

The project promoted children participating in healthy activities and having fun, whilst also helping them to learn the importance of supporting each other and the community around them. The project also improved the children’s confidence and self-esteem, whilst helping them to develop invaluable leadership skills and build their resilience. The children enjoyed being taught by inspirational, famous sportspeople who are highly qualified in their field. One of the project’s main values and aims is total inclusivity, and observers at the school told SCF that children who didn’t normally take an interest in sports thoroughly enjoyed being involved in the project.

Charlie Neal, a member of the Tees Community Involvement Development Board, attended one of the ‘Inspire Through Sport’ sessions and said, ‘It was an honour to see first-hand just how amazing the work is that SCF carries out in our local communities and how valuable it is for the children involved. Led by Paul Brush, the sports camp provided a fun, yet educational platform for the children to develop both their footballing and communication skills further. We are proud to have supported such a crucial project through the Better Future Fund and we look forward to backing similar initiatives that help our local communities in the future.’

Junior McDougald, Founder of Sports Connections Foundation said, ‘We are very grateful to the ‘Tees better Future Fund’, it enabled us to deliver fantastic sporting and educational outcomes for hundreds of children in Basildon. As a children’s charity, we utilise professional sportspeople and young community ambassadors to help inspire the next set of sporting leaders in the community. It was amazing to see so many happy children at our summer camp at Great Berry Primary School this year.’

Damien Pye, Great Berry Headteacher said ‘SCF have delivered the pro kick challenge to over 420 children from 4 years to 11 in the Tees Better Future Fund project, it didn’t matter whether they were into sports they all had a great time. I could hear the loud cheering and them supporting each other from my office all day. It’s a brilliant inclusive activity that teaches the children so many important life values using sport as an inspirational tool.’

A great Berry Pupil said, ‘I loved taking part in the pro kick challenge, it was great fun, It also taught us about supporting each other and what we can do for other children in poorer places around the world’.

Sports Connections Foundation is a charity, that uses the positive power of sport to engage, motivate, and inspire children & young people who are disadvantaged, hard to reach or at risk.’

Sports Connection Foundation’s current programmes are:

  • Inspire Through Sport – provides sport-inspired youth work and sports camps, coaching and mentoring for children and young people
  • ProKick Schools Challenge – provides primary schools with an inspirational football-related sponsored activity
  • Inspire Through Sport International – provides funding and vital educational resources to an impoverished orphanage and a nursery in Burkina Faso, Africa
  • Sporting Wishes – special sporting memories visiting flagship sporting events for children with life-limiting conditions.

The Employment Relations (Flexible Working) Act 2023

The Employment Relations (Flexible Working) Act 2023, which received Royal Assent in July 2023, is intended to give workers more flexibility over when and where they work. This legislation is expected to come into force in the summer of 2024, based on the timescale from Royal Assent.

Chartered Institute of Personnel and Development (CIPD) research (Flexible and hybrid working practices in 2023 | CIPD) indicates that 40% of employers have seen an increase in requests for flexible working following the Covid-19 pandemic, and 66% of organisations saying they believe it is important to provide flexible working as an option when advertising jobs.

Employers and employees should therefore be mindful of the looming changes to the process surrounding flexible working requests.

Who can make a flexible working request?

Employees with at least 26 weeks of continuous employment are currently entitled to make flexible working requests to their employer. It should be noted, however, that although this has remained a requirement under the new legislation, it is anticipated that further legislation will eventually be implemented to remove this requirement, making flexible working requests a day one right for employees. Of course, any employee can make a request but employers are not obliged to consider requests unless made by eligible employees.

What are flexible working requests?

Flexible working requests should be made when an employee wishes to make a change to any of the following:

  • the hours they work
  • the times when they are required to work
  • the place they work (i.e. working from home, or another of the employer’s sites). 

Some examples of how these changes could be implemented in practice include:

  • reducing hours to work part-time
  • changing start/ finish times
  • compressing hours to work the same number of hours over fewer days
  • job sharing. 

Employees can also request the change be limited to specific days or weeks only (e.g. only during school term time), or for a limited period such as 6 months only.

How an employee can make a flexible working request

To meet the statutory requirements of a formal flexible working request, applications should:

  • be made in writing
  • be dated
  • state that it is an application made under the statutory procedure
  • specify the change the employee is seeking
  • specify when they wish the change to take effect
  • state if and when the employee has previously made an application. 

An important change in the new legislation is, previously, there was an additional requirement for the employee to explain the effect that flexible working would have on the employer, and how the employer might deal with such an effect. This requirement has been removed by the new legislation.

How an employer should deal with a flexible working request

Under the new legislation, employers are required to deal with requests within two months of receipt (as opposed to the previous three months), unless both parties agree to extend this period.

 Employers must deal with flexible working requests in a reasonable manner, and can only refuse requests for the following reasons (which remain unchanged under the new legislation):

  • the burden of additional costs
  • detrimental effect on the ability to meet customer demand
  • inability to reorganise work among existing staff
  • inability to recruit additional staff
  • detrimental impact on quality
  • detrimental impact on performance
  • Insufficiency of work during the periods the employee proposes to work
  • planned structural changes.

The new legislation also requires employers to consult with the employee before refusing a request. The new legislation does not provide guidance around what is required in such a consultation, but the ACAS Code of Practice does contain some guidance around this. The ACAS guide also has content covering dealing with requests in a “reasonable manner”. ACAS is currently in the process of updating this code.  

If a flexible working request is accepted, the employer should issue an updated statement of main terms or provide a statement of changes to employment (under section 4 Employment Rights Act 1996).

If the request is denied, the employer must write to the employee stating this, keeping in mind that under the new legislation, the employee must be consulted before a request can be denied. Employers should note that although there is no statutory right to appeal the decision, employees now have the right to make up to two flexible working requests within any twelve month period, so if an employee’s first request is denied, they are entitled to make another one.

Employers need to stay up to date

With CIPD research showing that 49% of employers were previously unaware of the impending changes to flexible working legislation (Flexible and hybrid working practices in 2023 | CIPD), employers should ensure that they are aware of the changes as set out above. They should also consider updating any existing policies and procedures relating to flexible working arrangements to ensure that they are in line with the statutory changes and new time limits.

With the new legislation anticipated to come into force next year, we understand the ACAS Code of Practice on handling requests for flexible working is also to be updated. The purpose of the ACAS code is to “provide employers, employees and representatives with a clear explanation of the law on the statutory right to request flexible working, alongside good practice advice on handling requests in a reasonable manner” (Acas consultation on the draft Code of Practice on handling requests for flexible working | Acas).

Employers should look out for updates in relation to the new ACAS code and ensure that they are now complying with the new statutory requirements ahead of the implementation of the new Act, whilst also keeping in mind the likelihood of flexible working requests becoming a day one right. 

What could happen if I unreasonably refuse a flexible working request?

If a tribunal upholds an employee’s complaint concerning the handling of a flexible working request, you may be required to reconsider the employee’s application. Alternatively, or in addition, the employee may be awarded compensation, additionally, issues  over flexible working could also lead to other claims (see below).

Sex discrimination claims and flexible working

A mishandled flexible working request might lead to a potential discrimination claim. For example, if your flexible working policy has a greater impact on one sex over another (or on one particular employee because of their sex) you may face claims of indirect sex discrimination.

The ACAS guidance on flexible working, mentioned above, recommends that employers and managers should avoid making assumptions when assessing flexible working requests. All requests should be assessed consistently and with regard to business circumstances.

However, acting consistently does not necessarily mean that you can adopt a blanket flexible working policy – accepting or refusing all requests. If a dispute arises, a tribunal will look at any discrepancies in the acceptances or refusals of flexible working requests.

If your policy is found to be indirectly discriminatory, it might be possible to argue that it was a proportionate means to a legitimate aim – i.e.: that there was a good business, commercial or administrative reason for the difference in treatment.

Consideration of flexible working requests should be based on real operational needs and decisions should be objectively justifiable.

Flexible working and constructive dismissal

In general terms, a constructive dismissal occurs where an employee feels forced to resign because of the actions of their employer.

To be successful in a claim, the employee must show that their employer has committed a fundamental breach of contract that is sufficiently serious to justify the employee’s resignation – and that the resignation was due to that particular breach. The breach could be a one-off event or just one instance in a longer history of events.

Unreasonably refusing an employee’s flexible working request, or even handling a reasonable refusal badly, could constitute one of these events and expose you to a potential constructive dismissal claim.

When medical negligence becomes criminal

Medical negligence arises when the treatment provided by a healthcare professional falls below the standard of a responsible body of medical opinion and that substandard care has caused harm or injury.

In some cases, however, a doctor’s actions go so far beyond what is considered acceptable that their behaviour is deemed to be criminal.

Our medical negligence specialists provide expert legal advice for a wide range of medical negligence claims.

If you think the medical treatment that you have received has been negligent or even criminal, Tees can help you to recover compensation for the harm that you have suffered.

Deliberate negligent acts resulting in criminal conviction

In rare cases, doctors treat their patients in ways that go far beyond medical negligence. In these circumstances, their actions can only be treated as a deliberate attack on their patients.

In 1993, Beverley Allitt, known as the “Angel of Death” was given 13 life sentences after being convicted of murdering four children and in 2000, Harold Shipman was found guilty of murdering 15 of his patients and is thought to have had over 200 victims.

A recent example is the case of surgeon Ian Paterson.

What did Ian Paterson Do?

Ian Paterson was convicted of 17 counts of wounding with intent in April 2017 and is currently serving a 20 year prison sentence. Paterson had performed unnecessary surgeries on over 1,000 patients in the Heart of England NHS and private hospitals (Spire Parkway and Spire Little Aston). These procedures included hernia surgeries, varicocele repairs, unnecessary mastectomies leaving his victims feeling violated, mutilated and psychologically traumatised.  He also performed unregulated “cleavage-sparing” mastectomy procedures, leaving breast tissue that often resulted in the return of the cancer and, in some cases, the death of the patients.

In February 2020 a report from an Independent Inquiry was published.

It is estimated that Paterson treated more than 11,000 patients. Of these, more than 750 have so far received compensation for the damage he caused to them in a settlement deal struck in 2017, involving some 40 law firms. However, many more may have been affected by his actions and that they too may be due compensation.

In December 2020, more than 5,000 patients were contacted by Spire Healthcare after independent clinicians reviewed their medical records.  Patients were offered a telephone meeting and follow-up treatment, and Spire Healthcare have set up a new compensation fund for victims of Ian Paterson.  Tees is pleased to help former patients of Mr Paterson who have been recalled by the Spire to claim compensation from the second compensation fund, if they did not apply for compensation from the initial fund for the same injury.

Failing to provide safe care and treatment

In April 2021, East Kent Hospitals NHS Trust pleaded guilty to a criminal charge brought by the Care Quality Commission (the CQC) over failings that led to the death of Harry Richford, at 7 days of age.  Harry was delivered by emergency caesarean section performed too late by a locum,  a second doctor delayed resuscitating Harry and he died from irreversible brain damage.

The CQC charged the Trust with breach of regulation 12 of the Health and Social Care Act 2008 (Regulated Activities) Regulations 2014, which obliges trusts to provide safe care and treatment.

Again in July 2021, The Independent reported that the CQC is considering a criminal prosecution against Nottingham University Hospitals Trust, following the death of baby Wynter Andrews in September 2019. 

When does a lack of consent give rise to a criminal case of battery or assault

If a patient has not given informed consent to a medical procedure both medical negligence and criminal liability may arise.

Informed consent is a relatively complex legal concept, but the over-riding principle is that a patient has the right to be advised of not only the benefits but also the material risks of the proposed treatment and be made aware of any reasonable alternatives (including doing nothing).  Consent issues normally arise in the context of surgery but should be considered when any treatment is offered.

If a patient has not consented to the medical treatment, this could lead to a criminal charge for battery or assault.  This requirement for consent is waived if the patient:

  • is unconscious or incapacitated and needs emergency life-saving treatment
  • needs an additional emergency procedure during an operation
  • lacks capacity to consent to treatment of their mental health due to their mental health condition (but consent is still required for treatment for unrelated physical conditions)
  • has been detained under the Mental health act
  • is a public health risk due to having Rabies, Cholera or TB

Once more, it is the Police and Crown Prosecution Service that determine whether it is appropriate to bring a criminal case against a doctor in these circumstances. Intent to harm is likely to be very relevant and more often than not a civil suit will be more appropriate.

Criminal gross negligence (medical) manslaughter

The crime of gross negligence (medical) manslaughter arises where death occurs as the result of “truly, exceptionally bad” healthcare.

Usually a criminal investigation is triggered by the Coroner referring the case to the Police for investigation, although families can also ask the Police to look at the circumstances of death.   The CPS will consider whether it is in the public interest to prosecute the relevant medical professional including whether they consider that prosecution is a proportionate response. The case will be decided by a Jury, in a criminal court.  To secure a conviction, the Jury must be satisfied, beyond all reasonable doubt, that the individual or Trust committed the crime of gross negligence manslaughter.  A conviction may result in a custodial prison sentence.

How do you prove gross negligence manslaughter?

In 1994, an anaesthetist called Adomako was convicted of gross negligence manslaughter. Adomako hadn’t noticed that a patient’s oxygen pipe had become disconnected during an operation. Consequently, the patient died.

The judge in this case set out the test for gross negligence manslaughter:

  • there must be a duty of care
  • the defendant must have breached that duty of care
  • the breach must have caused the death of the victim and
  • the breach of duty is so serious in all the circumstances that it should be judged criminal

The judge also gave some examples of what might constitute a criminally serious breach:

  • indifference to an obvious risk of injury to health
  • knowing the risk of injury to health at the outset but a determination to run the risk nevertheless
  • knowing the risk of injury to health and intending to avoid it but coupled with such a high degree of negligence in attempting to avoid injury that a jury deems a charge of criminally serious breach as necessary

Gross negligence manslaughter conviction examples

In this final example, the judge stated that: for gross negligence to be found, there must be a “serious and obvious risk of death”, rather than just risk of serious injury. The risk must be “assessed with respect to knowledge at the time of the breach of duty”. 

The line between negligence and gross negligence is therefore still hard to define.

Corporate manslaughter and corporate homicide

The Corporate Manslaughter and Corporate Homicide Act 2007 means that organisations can be found guilty of the office of corporate manslaughter or homicide.

In a medical context, NHS Trusts may face criminal prosecutions if a patient dies as a result of gross negligence.  If found guilty, the healthcare Trust may be fined or ordered to take steps to remedy any deficiencies in health and safety policies, systems or practices.

series of baby deaths at the East Kent Hopsitals University Trust has recently prompted a police investigation into a possible corporate manslaughter and/or gross negligence manslaughter charge relating to unsafe maternity care that has affected nearly 200 families over a number of years. The Health and Social Care Committee on maternity safety in England has now released a report on the Safety of Maternity Services in England. The report concludes that improvements in maternity services have been too slow, with the CQC’s Chief Inspector of Hospitals reporting evidence of a ‘defensive culture’, ‘dysfunctional teams’ and ’safety lessons not learned’.  Sound familiar?  MPS have recommended urgent action to address staffing shortfalls in maternity services with staffing numbers identified as the first and foremost essential building block in providing safe care.

How Tees can help

If you or a close family member have suffered harm from negligent medical treatment, please get in touch. We will investigate what happened, advise you on your potential claim, and support you in bringing a claim.

We know that going through something like this alone can be a daunting and worrisome prospect, but our empathetic and caring team is here to help you secure the best outcome.

What’s the difference between Section 106 agreements and the Community Infrastructure Levy (CIL)?

When new developments happen developers are usually asked to pay a contribution towards the funding of associated infrastructure. Historically this was through ‘Section 106’ agreements negotiated between local authorities and developers although the Planning Act 2008 introduced a new way of doing this – the Community Infrastructure Levy, or CIL.
Section 106 agreements

S106 contributions remain the primary means to ensure that developments pay for infrastructure that supports them. However S106 agreements are by their nature uncertain in terms of what they can deliver.  S106 contributions are negotiated between the local authority and the developer and can pay for anything from new schools or clinics to roads and affordable housing.

The Community Infrastructure Levy (CIL)

Introduced by the Planning Act 2008, local authorities are allowed but, not required, to introduce a CIL. CIL is different to S106 payments in that it is levied on a much wider range of developments and according to a published tariff schedule. This spreads the cost of funding infrastructure over more developers and provides certainty as to how much developers will have to pay.  It is simpler and more transparent.

CIL is now the preferred method for collecting pooled contributions to fund infrastructure. S106 agreements have been scaled back to just cover site regulation and site specific issues (whether or not the local authority has introduced a CIL) and are subject to a statutory test since 2014.  CILs cover the generic payments that a development imposes.

CIL only applies in areas where a LPA has a charging schedule in place which sets out its CIL rates. Any local authority that charges the levy must publish a charging schedule on its website. Since CIL is a discretionary charge, there continues to be a phased take-up of CIL by local authorities, but local authorities continue to be encouraged to adopt a CIL.

The advantage of the CIL is the rate is transparent and does not need to be negotiated.  To ensure developers do not pay for the same infrastructure under both schemes, local authorities are required to publish a list of what will be funded by the CIL and those items cannot be covered by a S106 agreement.

CIL is paid primarily by owners or developers of land that is developed. In an area where CIL operates, most new development which creates net additional floor space of 100 square metres or more, or creates a new dwelling, is potentially liable for the levy. Some development is eligible for relief or exemption from CIL such as residential extensions and houses and flats which are built by self-builders. There is however a strict criteria that must be met and procedures followed to obtain the relief or exemption.

Tees are here to help

We have many specialist lawyers who are based in:

Cambridgeshire: Cambridge
Essex: BrentwoodChelmsford, and Saffron Walden
Hertfordshire: Bishop’s Stortford and Royston

But we can help you wherever you are in England and Wales.

How to make a medical negligence claim

Most medical care is safe and effective. However, mistakes and systemic errors will occasionally occur, especially where nurses and doctors are over-stretched. Fortunately, these mistakes and errors rarely cause harm, but if something does go wrong and you have been injured, you should seek the advice of a specialist medical negligence solicitor.

What qualifies as medical negligence?

The fact that there may have been an error or a poor outcome does not automatically entitle you to compensation. However, if you have been injured because a doctor or other healthcare professional has not provided the proper standard of care, it may be possible to claim compensation. You should seek specialist legal advice to help you through this process – it will be almost impossible to navigate alone, without expert help.

We understand that complaining about medical treatment can feel overwhelming and distressing, but there are many good reasons for making a complaint and possibly, in addition, a claim for negligence. For example:

  • it will help you understand what happened
  • if you have suffered injury and financial loss, it’s important that you receive the compensation that you need to build your life back up again: to fund any additional treatment, rehabilitation
  • or additional costs and to positively plan for the future
  • patient safety can be improved when healthcare providers are made aware of what has happened.
  • In the vast majority of cases, the claim will not be made against an individual such as a doctor or nurse, but rather against their employer.
Here we set out the process:

Making a medical complaint: If you would like a full explanation of what has happened, an apology from the hospital or doctor concerned and assurances that any problems that might affect other patients have been addressed, you could consider:

complaining to the doctor or hospital involved in your care and asking for an explanation
using the formal NHS Complaints procedure to make a formal complaint
contacting the body responsible for improving and monitoring the quality of care. In England, this is the Care Quality Commission, and/or
writing to the professional regulatory organisation, for example, the General Medical Council (for doctors in United Kingdom) or the Nursing and Midwifery Council (for nurses and midwives in England and Wales) if there is a question about an individual doctor or other healthcare professional’s fitness to practice.
For further information, please see the AVMA Guide to Making a Complaint under the NHS Complaints Procedure.

Free assessment: When you get in touch, your case will be assessed – free of charge – by our specialist assessor who is a medical negligence lawyer with over 40 years’ experience. You will get a highly expert opinion and a helpful and responsive service. We will listen to you, understand what you want to achieve and advise you how best to proceed. We will also let you know if we think you do not have a case for compensation.

Will I be eligible for compensation?

A big part of the initial assessment we will do for you, is establishing what happened, and more specifically working out if there is likely to be a case for compensation to be paid. Compensation will only be paid if you can prove all three of the following:

  1. the health professional treating you owed you a duty of care. All healthcare professionals have a duty to their patients to take reasonable care when carrying out their professional skills.
  2. the health professional was negligent. A healthcare professional must provide an acceptable standard of care which is consistent with a responsible body of medical opinion. A healthcare professional is not negligent if other responsible healthcare professionals would have acted in the same way.
  3. And you suffered harm, as a result of the negligence. This is known as causation.

When you come to us, we will listen to you, obtain medical records and work out whether you have a case that has a good chance of being successful.

Examples of medical negligence

There are many different ways in which medical negligence can occur.  Here are some general examples:

  • a failure to diagnose your condition
  • a delay in diagnosing your condition
  • making the wrong diagnosis
  • failing to arrange the investigations or treatment you need
  • failing to warn about the risks of a particular procedure
  • surgical error
  • failing to recognise and act on complications
  • making a mistake in the prescription, administration and dispensing of drugs.

How can I afford to pay legal fees to make a claim?

Please don’t worry about costs. There are options available which mean you don’t have to pay out any money in advance of getting compensation, or at all, if the claim is not successful. There are a range of options, including no win, no fee, which we will explain to you before you start a claim. These include:

  • legal-expenses insurance
  • trade union funding
  • “legal aid”
  • private funding
  • “no win, no fee”.
No win, no fee

Most medical negligence clients choose a “no win, no fee” agreement.  No Win, No Fee arrangement ensures you don’t pay any legal or associated costs unless your case is successful. If you win, most of your legal costs are paid by the Defendant.  A small portion of your compensation may be used to cover legal costs not paid by the Defendant. The majority of our clients choose this option for peace of mind and affordability.

Is there a time limit for making a claim?

In England and Wales, a medical negligence claim must normally be brought within three years of the date of the accident or the date that you became aware that your injury was linked to the original accident (whichever is latest).  This is known as the “date of knowledge”. The date of knowledge can be much later than the accident date.

If legal proceedings are not started in court within the three years, the case is then “time-barred” or “statute barred” as it is sometimes known, which means it cannot proceed.

There are exceptions and special rules apply for children, for adults with serious mental disabilities, for fatal cases and Human Rights Act cases.  The courts do have discretionary power to allow claims which are already outside the time relevant limits to proceed, but these powers are only exercised under very limited circumstances.

Who will handle my case?

We have a large and experienced team of highly regarded specialist lawyers, with decades of experience and expertise in medical negligence cases. One of these lawyers will be your primary contact and will take responsibility for your case. This person will be your individual point of contact.  Unlike many firms, we make sure that at Tees, our lawyers only look after a small number of clients at any one time – we want to be there for you when you need us.  Your lawyer will work closely with you throughout your case to understand your concerns, answer your questions, support you through the harder times and celebrate the good times with you.

Stage 1: Investigating your claim

It’s important to investigate your claim thoroughly to establish how strong it is.  The initial investigations can therefore take several months.

We will then prepare an initial statement based on your recollection of events.

We will then apply for a copy of all your medical records and sort and review these.

Any case that is brought must be supported by independent expert evidence.  Therefore, the next step will be to instruct an independent medical expert to review your records and advise whether or not the care you received fell below an acceptable standard. Tees has contacts with a wide range of medical experts and we only work with those with the highest professional qualifications and reputation.

If your treatment was substandard, we will also need to instruct an independent medical expert to consider whether this caused, materially contributed to, or worsened your condition.

We may in addition, arrange a meeting with an experienced barrister and the medical experts to review the evidence in detail and ensure that your claim is strong enough to proceed.

Stage 2: Starting your case

The next step is to notify the defendant (for example the hospital) in a detailed “letter of claim”.

The defendant has four months to reply with their “letter of response”. This gives them the opportunity to investigate your case.  They may deny that they are responsible for your injuries or they may agree that they are liable for some or all of your injuries.  They may offer you compensation to settle your claim.

After we have received the letter of response, we will review your case further and advise you whether to commence formal court proceedings.

Stage 3: Commencing court proceedings

A claim is issued by sending a simple formal court document, called the claim form, to the court.  This must be served on the defendant within four months of receiving their letter of response, together with:

  • a statement of your claim (the “particulars of claim”), which will set out the allegations of negligence
  • a “schedule of damages”, which will set out the specific financial losses incurred as a result of the alleged negligence and an estimate of the likely future losses
  • a medical report on your condition and prognosis.

You will need to approve all these documents and sign a “statement of truth”, confirming that the documents are true and accurate, before we send them to the defendant.

Stage 4: Timetable

The “defence” is technically due 28 days after the particulars of claim are served.  However, the defendant usually applies to the court to extend this time limit and a 1-3 month extension is usually given.

After the defence has been filed, the court sends out a questionnaire to all parties; these are known as “directions questionnaires”.

Thereafter, there will be a court hearing (called a “costs case management conference”), when the court will set down a timetable of events to progress the case to trial and, in most cases, allocate both sides a “budget” for the costs that each side is allowed to incur going forwards.  Generally, the trial is scheduled to take place within 12-18 months of the claim form being issued.

The timetable generally includes:

  • production of various documents relating to the case (“disclosure”).
  • exchange of statements from you and all witnesses, including the health professionals responsible for your care (“exchange of factual witness evidence”).
  • exchange of expert reports (“mutual exchange of expert evidence”).
  • a meeting between medical experts on both sides to discuss the case and try to narrow the issues prior to trial (“experts’ meetings”).  This meeting usually takes place without the lawyers present.

The timetable then allows some time for negotiation between the parties, although this may happen at any point during proceedings. There is usually at least one further conference with your barrister and experts to review your case in detail and consider the best way to proceed.

Stage 5: Trial

Most cases don’t get to this stage because the vast majority of cases are settled without any court hearing. Once both parties have assessed the evidence in detail, it is often possible to negotiate a settlement.  Your case may be settled because the defendant no longer feels they are able to defend the case or proceed to trial.

If the case is brought by a child, or someone who lacks capacity to manage their own affairs, the court must approve any negotiated agreement.

Some cases do proceed to trial and it is always necessary to prepare for trial. At a trial, a judge will listen to the evidence, particularly the evidence of the independent experts, and decide whether or not your claim succeeds.  The length of the trial depends on the complexity of the case.

In some cases, the court will deal with just some of the issues in the first instance.  For example, the court often decides to have one hearing dealing with liability and, if this succeeds, another to deal with the amount of damages (this is known as a “split trial”).

Valuing your claim

As well as investigating whether you have a claim, we will also investigate the amount of compensation to which you would be entitled. The purpose of compensation is to return you, as far as possible, to the position that you would have been in if the medical negligence had not occurred.

In many cases, we will not fully investigate how much compensation you are likely to receive until the preliminary medical issues have been considered.  However, we will always be able to provide you with a broad outline at the beginning of the case.  It will be impossible for us to be more precise, because we will need to investigate how much you are entitled to and obtain evidence in support.  This can take time and involve additional experts.

The amount of compensation will depend on the severity of your injury and the financial consequences of your injury and will take account of:

  • your pain and suffering (“general damages”) and “loss of amenity” (which relates to your quality of life, if, for example, you’re now unable to carry out daily activities or hobbies).
  • any financial losses and expenses that you have incurred as a result of your accident (“past losses”). Evidence will be required to establish these losses.  It is therefore very important to keep an accurate record of these and evidence (pay slips, receipts etc) wherever possible.
  • any financial losses and expenses that you will incur as a result of your accident (“future losses”).

Pain and suffering

This is an amount of money to compensate you for the pain, suffering and loss of amenity attributable to your injury.  The court will consider guidelines and previous similar cases when attempting to value this part of the award.

Loss of earnings

Whether you were employed, self-employed, unemployed but looking for work; or a child at the time of your injury, you are entitled to claim for any loss of earnings you have suffered, or may in the future suffer, as a result of your injury.  Amongst other things, this could include:

  • loss of earnings
  • any amounts repayable to your employer under your contract for employment
  • any possible effect on promotion prospects
  • any loss of benefits of employment such as private medical insurance, car, fuel allowance, car servicing, insurance, free/reduced food at work, concessionary fares, free board and lodgings, cheap loans, staff discounts, SAYE or share option schemes, allowances including children’s education and housing, telephone allowance and mobile phone
  • any possible loss of pension
  • (where self-employed) any effect on the growth of the business.

In some circumstances, you may also be entitled to claim for your partner’s loss of earnings, if he or she has had to take unpaid time off on your behalf.

Assistance from others

Whether or not you have paid for it, you can often recover compensation for those who have provided and/or will help you in the future as a result of your injury.  Amongst other things, this could include:

  • nursing assistance
  • domestic assistance, e.g. shopping, cooking, cleaning, laundry, ironing
  • additional cost of maintaining accommodation, including DIY
  • gardening
  • car maintenance costs.

Medical treatment and prescriptions

You may be able to recover the cost of any private specialist treatment which has been required or may be required in the future because of your injury, for example, any medical treatment, physiotherapy, occupational therapy, speech and language therapy etc.

You are also entitled to claim the cost of individual prescription fees, pre-payment prescription certificates, painkillers, bandages etc in so far as they relate to your injury.

Accommodation

It may be that as a result of your injury, you have different accommodation needs.  Additional accommodation and adaptation costs, extra heating expenses, extra lighting expenses etc can all be included in your claim.

Specialist Equipment

A claim can also be made for any special equipment bought as a result of your injuries; eg wheelchairs, grabs, stair lifts etc.

Miscellaneous Costs

Other financial losses incurred as a result of your injury, can also be claimed, such as extra washing expenses, special diets, cancelled holidays, the additional costs of going on holiday, hairdressing, babysitters, telephone calls, travel expenses etc.

When is the compensation payment made?

During your case, it may be possible to obtain an interim payment of compensation from the defendant to help you purchase specific items such as a wheelchair, a car or a house.  This is usually only possible if the defendant has accepted liability for your claim.

At the end of the case, compensation may either be paid as a single lump sum or as ongoing annual payments (“periodical payments”) or a combination of the two.

You may be awarded provisional damages.  This is when there’s a possibility that your injury will get worse in the future, it’s possible for the court to assess the value of your injury as it stands at the time of the trial or settlement, but also make an order allowing you to come back to court if your injury gets worse. This must amount to a “serious deterioration”.

What about state benefits?

If the case is successful, certain state benefits might be deducted from your compensation and refunded to the government. In addition, if you receive compensation, your entitlement to benefits now or in the future may be affected.  In some cases, if may be possible to set up a Personal Injury Trust, which is a legal device, to prevent this happening.  At Tees our experts can advise you on this.

Investment Advice and Life Planning

At the end of the case, you may have a large sum of money.  Our expert Wealth Management Advisers are able to advise how best to invest this money to ensure that it meets your future needs and any other specific concerns that you may have.

Our specialist Private Client Team will be able to help you Make a Will and Lasting Powers of Attorney.

Court of protection and deputyship

If you have a serious mental disability and are not able to manage your affairs, an application will need to be made to the Court of Protection for a deputy to be appointed.  We can assist with the court application and provide advice to the deputy.  These costs will form part of the compensation sought in your claim.

 

Guide to buying new build homes

Buying a property is an exciting time and buying a new build property can be even more exciting as you are buying a blank canvas, with all new fittings – which you may be able to customise. However, buying a new build property is more complex than buying an existing property, with a lot more that needs to be considered. Here our conveyancing expert Marie Rodgers, sets out what you need to know.

What is a new build home?

A ‘new build’ is defined most usually as a property that was built, converted or refurbished within the last two years. People most commonly think of new build as totally new houses – those which are being bought ‘off-plan’. An ‘off-plan’ property is one that is yet to be built; it may be part-way through construction or not yet begun. The sale details for an off-plan property will comprise floorplans, working drawings and computer-generated images instead of photos, to see what the finished product will look like.  However, ‘new build’ also includes properties that have been occupied or rented before, but are still owned by the builder or developer.

Reservation fee for new builds

When you agree to purchase a new build, the developer will ‘reserve’ this plot for you in return for paying a ‘reservation fee’. The amount of this fee can vary depending upon the property and development but usually varies between £500-£2,000. This forms part of the agreed purchase price and is deducted from the balance which you pay for the property on completion. It’s important that you check your reservation agreement carefully in order to work out whether this reservation fee is refundable in the event you do not proceed with the purchase of your plot.

Exchange deadline

A key difference with new builds is that the developer will impose a deadline by which an exchange of contracts must take place. This is usually 28 days. This means that the process will move at a very fast pace and it’s therefore important that you instruct a conveyancer quickly. Also make sure you act quickly upon their instructions as to what they require to progress your purchase. In the event the exchange deadline is not met, the developer reserves the right to re-market the plot, so you could lose the property.

Extras might incur more Stamp Duty Land Tax (SDLT)

One of the benefits of buying a new build property is that you have the ability to customise the property by paying for ‘extras’. Examples of the types of extras you might be able to choose from are upgraded kitchen appliances such as cooker hob, integrated fridge freezer and dishwasher, better kitchen units, better quality floor tiles, bespoke fitted wardrobes and even things for the garden such as turfing and an outside tap.

However, these additional extras may incur SDLT in their own right so it’s best to check this point with an expert. At Tees, we can refer you to a stamp duty specialist who can accurately calculate the correct SDLT you should be paying for your property.

Know exactly what you’re buying in your new build home

The marketing people will show you lots of printed materials and maybe videos to encourage you to buy but these may not show exactly what you will be buying. Your plot could be in a different location on the development site, closer to roads, recreation grounds, with different lights etc. Another thing to be certain of is the precise spec for your new home. You need to know what fixtures and fittings there will be and what building materials will be used throughout the property. Make sure you know what has and hasn’t been included in the total cost so you don’t have a problem later on.

Complex documentation

New build conveyancing is much more complex than that for an existing property. Your conveyancer will be processing a vast amount of additional documentation which comes with purchasing a new build home. They will need to ensure that the necessary planning and building regulation approvals are in place for the development and appropriate provisions are in place for the construction of the roads and sewers on the estate. They will also need to ensure that you have the necessary rights to use these roads and sewers. It’s therefore important that you instruct a conveyancer with knowledge and experience in new build conveyancing who will be able to guide you through the process and identify any issues should they arise.

Mortgage offers on new build homes

Due to the short timescales in which you have to exchange contracts, it’s important that you obtain a mortgage offer as soon as possible. You will need to make sure you have a valid mortgage offer in place before an exchange of contracts. Your conveyancer will also need to ensure that any conditions contained within this offer have been complied with and that the lender is happy to proceed.

If your property is not yet built when you exchange contracts, it’s possible that your mortgage offer may expire before you get to move into your new home. In this instance, you should speak to your mortgage broker or lender directly, in order to ensure that your offer can be extended, or a new offer obtained, should it be required.   You should bear in mind that if a mortgage extension or new mortgage offer is required prior to completion, any new product or interest rate attached to the mortgage, may not be as good as the original mortgage offer issued.

Dates for completion

When you exchange contracts on a new build property, if the build is not complete, then a ‘fixed’ date cannot be agreed for completion. Instead, the developer will provide you with an ‘estimated’ date for completion. This is the developer’s best estimate for when the property will be completed based upon their forecasts. Unfortunately, factors may delay the build which are outside of the developers’ control. At Tees, we will always ensure that there is a ‘termination’ (often referred to as a ‘longstop’) date in the contract. This is the final date by which the developer has to complete the build of your property, failing which, you can terminate the contract and have your deposit and reservation fee returned to you.

Annual maintenance charge

A new property often forms part of a larger development and will involve the use of shared common areas, such as green spaces or play areas, shared accesses, or private roads. The costs for any upkeep and maintenance for these areas will be payable by the individual property owners by way of an annual maintenance charge. The amount of this charge will vary depending on the development. You should discuss this directly with the site office at the development before reserving your plot so that you are fully aware of the ongoing maintenance charges for which you will be liable.

Structural warranty

Your property will be sold with the benefit of a 10-year structural warranty. Your conveyancer will ensure your warranty is in place upon completion and provide you with a copy of the necessary documentation which you will need in the event you ever need to make a claim in future or sell the property. They will also check with your lender in order to ensure that they are happy with the warranty which is being provided.

Do I need a snagging list for my new build home?

It’s common to find defects that require rectifying. They could be relatively small issues such as poor quality paintwork or a hinge that is broken or more major issues such as a leaking pipe. The developer should check everything, but nothing is foolproof so you need to create a list of what needs doing – a snagging list. Make time to walk through the whole house systematically to check for marks, scratches, and things which are broken.  You can check floors and surfaces are level and whether everything works properly.  Make sure there are no leaks from any taps.

You are not able to delay moving into your property for any snagging works which may be required. At Tees, we advise that you inspect your property before moving in, once it is completed, in order to check the finish and ensure that no major works remain outstanding.

However, it may not be possible to do it before you complete if the housebuilder won’t give you access. If you do it after you move in, don’t wait too long, in case the housebuilder tries to say you caused the damage yourself. However, you do have two years from your completion date to report any defects to your housebuilder which they have to rectify as part of your property’s warranty. At Tees, we will ensure you are aware of your rights to get snags fixed and ensure there is an obligation on the developer to carry out these works. If a dispute arises, we have expert property litigation solicitors at Tees.

At Tees, our conveyancing experts have a wealth of knowledge and experience in the world of new build conveyancing and so are best placed to guide you through every step of the way, from initial instruction to completion.

 

Tees advises Compliance Labelling Solutions on sale to Asteria Group

Tees are delighted to have advised the shareholders of Compliance Labelling Solutions (CLS) on its sale to the Asteria Group (Asteria). Based in Braintree, Essex, CLS is a BRC and ISO-certified label and tag manufacturer with over 40 years of experience serving clients across a range of different sectors. The business is highly respected in the industry and is known by its customers for high quality levels of service & product.

Asteria is an international group that produces a wide range of printed packaging materials such as labels, flexible packaging, and boxes. The group has grown rapidly and currently has thirty-three production sites in Belgium, the Netherlands, France, Germany, Denmark, Spain, UK, Estonia, Ireland, and Finland. This is Asteria’s third acquisition in the UK, following CS Labels and Berkshire Labels. The transaction will allow the Asteria Group to consolidate its footprint both in the UK and the food and beverage area.

After acquiring the company through a management buy-out back in 2015, the shareholders of CLS were looking to find the right partner to take the business forward while providing stability for its employees and customers. Asteria proved to be a perfect fit, as, despite its size, it maintains the SME spirit and will enable CLS to continue guaranteeing fast delivery times and excellent service levels to its customers. The opportunity to share knowledge and skill amongst the group also presents a significant opportunity for CLS under the ownership of Asteria. CLS will continue to be led by its current management team, Matt Day, and Geoff Nunn.

The Tees corporate team advising on the transaction was led by Partner Lucy Folley, with assistance from Associate Natasha Bhandari and Solicitor Nana Poku.  Senior Associates Lucy Beck and Katherine Jameson provided support on the property and employment aspects of the transaction respectively.

Commenting on the transaction Matthew Day, Director, CLS said, “The expertise and professionalism of Tees made what was a daunting task manageable and painless. With a knowledgeable team on hand working hard on our behalf, it helped achieve a deal that satisfied both sides and ensured the continued success of Compliance Labelling Solutions.”

Geoff Nunn added, “It was a pleasure working with Tees, the level of advice received was excellent and the whole team worked extremely hard to ensure tight schedules were met throughout the sale process.”

Lucy Folley commented “We were delighted to support Geoff and Matt on the sale of their highly successful business and guide them through the legal process to achieve a successful outcome.  The sale is excellent news for all parties involved and we wish everyone involved all the best for the future”

Rob Dukelow-Smith, Director Forward Corporate Finance who, together with Amie Goodland, assisted Geoff and Matt in finding the buyer commented, “It was a pleasure to assist Matt & Geoff on the sale of a really well-run business to an excellent acquirer. The positive outcome all around is a testament to all their hard work, and we wish Matt & Geoff every success with their new owners.”

Tax advice for Matt & Geoff was provided by David Richardson and Christine Ingram at Croucher Needham.

Release equity from house: Increase your income

As we’ll explain in this article, equity release is just one of several options that are now available to over 55s who wish to increase their income. Here at Tees our Equity Release Council member and SOLLA accredited experts are on hand to help and advise you every step of the way.

We’re all living longer and often, retiring later.

Changes to the state pension age, along with anticipated shortfalls in many private pensions, mean that we’re likely to need to look to alternative solutions as to how to fund our lifestyles in or approaching retirement – or risk relying on debt in later life.

In the past five years, the total value of debt held by the over-55s is estimated to have increased by 47 per cent and in another five years, this total value is forecast to increase by 35 per cent, rising to £397bn by 2024.

The good news is that the options to increase your income in later life are growing, becoming much more attractive – and can offer you peace of mind.

Since the government introduced pension reforms in 2015, the financial services industry as a whole – including the mortgage market – has begun to catch up with the challenges and opportunities of social change and consequently, lending criteria relating to age and retirement status have become a good deal more flexible.

Only a few years ago, there might have been a small handful of building societies prepared to lend to people of older age, however today, the options are many and varied and the previously niche equity release market has seen rapid growth and development into an industry that is now more commonly referred to as the later life lending market.

It is estimated that the UK’s over-55s currently own £1trillion in housing wealth.

What is later life lending?

Put simply, it is a mortgage offered to the over 55s that is designed to let you make use of the money that’s built up in your home and help you live better in your retirement.

What are the different types of later life lending?

Lifetime Mortgage

This is a form of equity release that lets you unlock the value in your home as a tax free lump sum of money.

How does equity release work?

Equity release is essentially like a long term loan. However, you don’t have to make monthly payments, unless you choose to, and the loan is usually repaid when the last borrower moves into long term care or dies, and you keep full ownership of the property. The maximum loan amount depends on your age and how much your property is worth.

Equity release may not be right for everyone. It may affect your entitlement to state benefits and will reduce the value of your estate.

Retirement Interest Only (RIO) Mortgage

A retirement interest only mortgage is very similar to a standard interest only mortgage, but with some differences.

The main part of the loan (capital) is usually only paid off when the last borrower moves into long term care or dies and you only have to prove you can afford the monthly interest payments.

Retirement Capital & Interest (RCI) Mortgage

Much like a standard repayment mortgage you pay back both interest and capital on a monthly basis.

The main difference is that you can borrow up to a higher age than on a standard mortgage but the product is still designed to repay your mortgage in full by the end of your term.

You’ll need to be able to afford the repayments on a monthly basis.

Home Reversion Plan

A Home Reversion Plan allows you to access all or part of the value of your property while retaining the right to remain in your property, rent free, for the rest of your life.

The plan provider will purchase all or part of your house taking into account your age and your health and will provide you with a tax free cash lump sum (or regular payments) and a lifetime lease, guaranteeing you the right to stay in your property rent-free for the rest of your life.

Is borrowing in later life right for me?

It’s often a good idea to speak with family members or trusted friends before taking on further borrowing in later life, they can often offer support and suggest other ways you could raise money. Borrowing in later life can have an impact on inheritance amounts you leave and any state benefits or local authority grants you get.

Is it wise with increasing interest rates for parents to release equity to assist in paying off or reducing their children’s mortgages?

This is a complex decision and will depend on various factors, here are some considerations:

  • Helping your children may be beneficial if you have excess funds and you are in a financially stable situation. It’s important to ensure that you have enough savings for your own needs and emergencies before considering assisting your children with their mortgages.
  • Releasing equity from your home may affect your retirement plans. It’s crucial to evaluate how using this equity will impact your future financial security, as you may be reducing the value of your estate or limiting your access to funds in the long term.
  • Before considering equity release, explore other possibilities for helping your children with their mortgages. For instance, you could recommend they seek financial advice or explore other forms of financial support that may not have long-term consequences for your own financial situation.
  • While helping your children reduce their mortgage loan can be beneficial, it’s essential to involve them in the decision-making process. Make sure they understand the implications and responsibilities associated with receiving financial assistance.
  • Releasing equity from your home may have tax implications, such as potential inheritance tax considerations.
  • Releasing equity may reduce your financial flexibility. Consider whether you may need access to the equity in the future for other purposes, such as long-term care costs or other unforeseen circumstances.

Ultimately, the decision to release equity to assist your children with their mortgages depends on your financial circumstances, risk tolerance, and long-term goals. It’s advisable to seek advice from a qualified financial adviser who specialises in this area of advice or a mortgage specialist who can provide personalised help and guidance on your specific situation.

Can I apply for a later life mortgage?

Many lenders will consider applications from people aged 55 up until their 85th birthday, with some lenders offering existing customers a mortgage up to their 95th birthday.

What can the money be used for?

The money released can be used for lots of different things. Some common uses include home improvements, family gifts,  funding the purchase of a further property, buying a car, travelling abroad, or funding care. 

Example

Mrs Hurst needed to carry out improvements on her home and gift her daughter money to aid her in buying a house. At the time, she held a lifetime mortgage previously arranged with another lender at an uncompetitive rate of 7.19%.

In order to achieve her goals, Mrs Hurst required an urgent loan of £226,160 and a more competitive rate of interest than her existing lifetime mortgage.

Tees’ Solution

Utilising a ‘whole of market’ approach, a new Lifetime Mortgage product was secured for Mrs Hurst, offering a significantly lower rate of interest of 3.92%.

As well as releasing an initial loan, Mrs Hurst released an additional £32,665 in order to fund the necessary £25,000 for home improvements and £10,000 to aid her daughter’s home purchase.

Even though the transaction involved releasing additional equity from her home, the lower rate of interest that was secured for Mrs Hurst on her new Lifetime Mortgage arrangement has resulted in a total saving of £256,049 of mortgage interest payments over a 15 year period, compared with if she had remained with her previous lender.

Outcome

The savings we secured for Mrs Hurst means she is now more able to enjoy a more comfortable retirement.

Our clients come to us for many different reasons. One of these is we offer lenders from the whole market and are able to access low rates. This ensures our clients can enjoy their retirement to the fullest and get the most out of the value of their home.

The Tees difference: a bespoke service that’s focussed on delivering what you really need

Toni Chalmers-Smith is a later life lending specialist at Tees who has worked in the financial services industry for over 25 years. While fully qualified in all forms of life, health, mortgage and pension business, Toni is expert in advising clients who require later years advice, which includes investments, inheritance tax and estate planning, equity release and care fees planning. Toni works closely with Tees’ legal advisers in providing specialist advice on all areas of later life lending and also offers older clients a financial review and support service, especially if an individual or family member is unable to cope with day to day financial decisions.

Catherine Banks is an experienced solicitor in Tees’ residential conveyancing team, and specialises in later life lending conveyancing. Together Toni, Catherine and the rest of the Tees team work seamlessly together to ensure that the solutions they provide truly fulfil your needs, and are fully tailored to your individual circumstances.

Toni and Catherine pride themselves on offering a friendly, personal service which is designed to put you at ease and support you in these important financial decisions. Their approach is highly ethical; when dealing with older clients where there may be a vulnerability concern Toni can offer an advisory service and where necessary, work with a Power of Attorney and/or make an application to the Court of Protection on your behalf.

Expert financial and legal advice all under one roof

There are many advantages of having your financial advice and legal conveyancing services all under one roof:

  •  A fast, efficient, joined-up service that is second to none. 
  • Transparency in terms of our fees and any associated costs. 
  • A fully comprehensive service that is highly cost-effective.

We at Tees strongly believe that financial and legal advice should take you to the stage where you can make clear and informed decisions, happy in the knowledge that you have received all the information and choices needed to reach those decisions.

Toni is a SOLLA Accredited Adviser and operates under its strict code of conduct. Both Toni and Catherine are members of the Equity Release Council: https://www.equityreleasecouncil.com/

Only specialist advisers can offer equity release advice.