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Category: Practice Area

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

Posted on by Sarah O'Sullivan

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: Brentwood, Chelmsford, 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

Posted on by Sarah O'Sullivan
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

Posted on by Sarah O'Sullivan
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

Posted on by Sarah O'Sullivan
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.

How can I start investing ethically?

Posted on by Sophie Soraf
Here are a few suggestions to get you started:

Know your values

Take time to think about which ethical approaches matter most to you. There are so many different ethical and sustainability issues that it may be hard to find one option that fits everything. Being clear what matters most to you, will help you navigate your way through complexities such as a fossil fuel company that also has a renewable energy project.

Work out where you are already investing

Your current investments, including your pension, may have ethical elements already. You need to know what you’re happy with and what you want to change. You can also consider whether you want all your investments to be based on ethical investing, or just a proportion.

To make changes, you may need to just change the fund, or possibly for a more comprehensive approach, look to a new investment management provider.

How is ESG performance worked out?

The information used to define whether a business is strong on ESG is often subjective. There are multiple frameworks that people use, with different methods of calculation, so it’s impossible to get totally accurate answers – so you should aim for an approximation.

The Financial Conduct Authority (FCA), states that ESG assertions made by companies must be ‘reasonable and substantiated’. The investment research firm, Morgan Stanley Capital International provides a grading system ranking businesses from AAA to CCC. They collate information from published corporate documents, plus academic, government and a range of other databases.

How to choose an ethical investment fund

As well as the usual things to consider when choosing a fund, for example, levels of risk, costs etc, when you want to invest ethically there are a few additional factors to consider. It’s important to ensure that investment companies are genuinely upholding ethical standards. If you look at the fund manager’s website you will often find the answers you need. You need to research the following points and if you can’t find the answers you want, don’t hesitate to ask the investment companies directly. If they are responsive and open that can say a lot about their ethical approach and their attitude to investors generally.

Find out about the following

  • Ethical Investment Policies: Carefully examine the investment company’s ethical investment policies. Look for clear guidelines that outline the specific environmental, social and governance (ESG) factors they consider when selecting stocks. A well-defined, transparent policy should cover areas such as: carbon emissions, working standards, diversity, animal welfare and corporate governance.
  • Their philosophy and screening process: the corporate reporting (such as website, prospectus, annual report) should demonstrate how comprehensively the fund managers are embracing socially responsible investing principles. Look out for impact assessments which can be an indication that the fund is genuinely committed and it is a key element. Be wary of funds that seem to present ESG as a sort of ‘nice box to tick’. Another good sign is if they have robust selection criteria for the stocks they include in their portfolios.
  • Research and data: ideally, you’d want a fund that has its ESG research conducted in-house as that is an indication of its level of commitment to ethical investing. Relying on third-party ESG research gives less reason to be impressed. Ratings, such as those from MSCI, can be a useful guide, however there are a lot of different views as to how these should be assessed and so they may not be that significant in reality.
  • Compare the investment company’s ethical policies and practices with their peers. Look for benchmarking reports that evaluate different investment companies’ ethical performance and compare them across the industry. This analysis can help identify companies that excel in ethical investing and have a proven track record.
  • Voting behaviour and engagement: fund managers should vote at the annual meetings held by the companies they invest in. Proxy voting allows shareholders to exercise their rights and influence corporate decision-making. If they have voted against management at any time, this shows they are willing to engage and have a proactive commitment to ethical investing. You should be able to find this information from their website where they will record how they have engaged with investee companies.
  • Accreditation and Certifications: Are they signatories to the United Nations’ Principles for Responsible Investment (PRI) and the UK Stewardship Code 2020 which is a code that establishes a benchmark for sustainable investment? Additionally, consider certifications specific to industries, such as Fair Trade certifications for companies involved in agriculture or manufacturing.
  • Transparency: Look for investment companies that provide regular and comprehensive reports on their portfolio holdings and their performance against ethical criteria. Check to see whether you can see the whole of a fund’s portfolio and that listings are not limited, for example, to the top 10 holdings. You need to be able to see and check all the underlying companies to be knowledgeable about how socially responsible the investments are.

How can I match my values to the right investment?

To effectively align investments with your values, you need to ethical investment companies that offer the following:

  • robust screening and selection process: they should have a rigorous screening process to identify stocks that meet specific ethical criteria. This process involves assessing environmental, social, and governance (ESG) factors and excluding companies involved in industries or practices that conflict with the investor’s values. Clear guidelines should be in place to ensure transparency and consistency in stock selection.
  • customisation and flexibility: they should offer customisation options to accommodate individual investors’ values. This may include providing different investment themes or portfolios aligned with specific causes, such as climate change, gender equality, or human rights.
  •  regular portfolio reviews: they should conduct regular reviews of their portfolios to ensure ongoing alignment with investors’ values. This involves monitoring the ESG performance of companies held in the portfolio and making adjustments as needed. If a company’s practices no longer align with ethical standards, the investment company should consider divesting from that stock and finding alternatives that better meet the investor’s values.

Environmental, Social and Governance (ESG) investing has become an increasingly important focus for many of our clients.

There has been a substantial rise in the popularity of sustainable and ethical investments in recent years, driven by an increasing desire for investors to know where and how their money is being invested.

However, while these products have now become an established part of the mainstream investment landscape, many people remain confused about the terminology associated with this type of investing and are often unsure as to how to get started.

What is ESG investing?

ESG investing involves considering environmental, social and governance factors alongside financial considerations when assessing investment opportunities. When investment managers are deciding which companies to invest in, they may seek out and include companies based on their ESG characteristics.

Environmental factors refer to how companies are performing in their stewardship of the environment, for example:

  • Carbon footprint
  • Energy consumption
  • Greenhouse gas emissions

Social factors consider how companies manage relationships with employees, suppliers, customers, and the areas where they operate, for example:

  • Human rights and social justice
  • Working conditions and employee relations
  • Health and safety standards

Governance factors focus on company leadership, for example:

  • Board diversity, structure and pay
  • Avoidance of bribery and corruption
  • Management & culture

ESG investing offers the potential to invest in ways that reflect the values that are important to you through using investment solutions that aim to take related ESG characteristics into account.

However, with investment managers and funds using varying terms such as Ethical, Sustainable, Socially Responsible, Impact Investing or simply Green, it can be difficult for clients to really understand what these labels truly mean and how they translate into an investment strategy that matches their personal views and reflects the values that are most important to them.

Ethical investing

One of the most well-known terms is Ethical Investing. This involves actively avoiding those types of firms or industry sectors which are considered to have a negative impact on the environment or society. This approach is also known as ‘negative screening’ as it involves filtering out specific types of investment based on a series of ethical or moral judgements.

For instance, negative screening may exclude all gas and oil companies regardless of whether a firm operating in the sector generates any form of green energy. Other types of excluded ‘sin stocks’ typically include the likes of alcohol companies, tobacco producers, weapons manufacturers, the gambling industry and firms involved in animal testing.

Sustainable Investing

Sustainable Investing uses ESG principles to actively select those companies that have a positive impact on the world, often in line with the United Nations Global Goals for Sustainable Development. This approach is therefore less restrictive than ethical investing as it allows for the fact that organisations are typically not either all good or all bad.

For example, under a sustainable investment strategy, a fund manager would be allowed to invest in an oil company that was developing clean, renewable energy sources.

Socially Responsible Investing (SRI)

SRI is one of the oldest ethical investment strategies, which involves focusing on a range of socially conscious themes such as employment rights, awareness of LGBTQ factors, social justice and corporate ethics.

Impact Investing

This involves using an investment strategy which targets those companies that have a positive social and/or environmental impact whilst demonstrating high levels of accountability and governance.

Green Investing 

Green Investing involves a strategy of selecting companies considered to be positive for the environment, such as those offering alternative sources of energy or those with a proven track record in reducing their environmental impact.

Are ESG funds higher risk?

There was often a perception in the early days of ESG investing that investors were putting principles before profit, with ethical or green investments generally considered to be significantly riskier than their traditional counterparts. Nowadays, however, with more and more companies adopting ESG principles within their corporate and social governance policies, there is a much wider choice of stocks available to ethical and sustainable investors, and so this style of investing can provide a compelling investment opportunity capable of generating long-term stable and sustainable returns.

Our bespoke planning process

Building a strategy around your personal core beliefs aimed at delivering financial success is central to our planning process.

One of the challenges with ESG investing is that it’s highly subjective; whilst you may want to prioritise the social impact companies can have, others may be more concerned about the environmental effects. It’s worth spending some time thinking about what is most important to you.

At Tees, as your independent financial adviser, we will work with you and take the time to truly understand your values including any ‘red lines’ you may have and where you may be willing to compromise. We take account of your financial aspirations and plan for how these can be delivered via an ESG investment strategy, that is tailored to you, so that you can feel comfortable with the investment decisions you are making.

We will also seek to understand the balance between your views and overall financial performance, as well as what impact you want your investment to have – i.e: to ‘do no harm’, or to ‘do good’.

‘Do no harm’ or ‘do good’

Seeking to invest in companies that promote ESG values that are important to you is referred to as positive screening, as you look to ‘do good’.  This may mean actively looking for opportunities in certain sectors or even dedicating a portion of your portfolio to this area.

Let’s say climate change and fossil fuel use are something you want to reflect in your investments. A negative, or ‘do no harm’ screening process may mean cutting out firms that are involved in the fossil fuel industry. In contrast, a positive ‘do good’ screening method could mean diverting a portion of your portfolio towards companies that are focused on renewable energy.

When looking to build an ESG investment strategy, it’s important to bear in mind that there often needs to be compromise, rather than trying to find a portfolio which exactly matches a particular set of ethical values. There is no such thing as 100% good or bad.

Ongoing monitoring of investment managers and performance

We continually monitor the investment managers that we recommend and hold them to account to ensure that their investment strategies remain in line with the policies and beliefs for which their investments were selected on your behalf.

Monitoring and engaging with investment managers encourages good behaviour and is the best way to ensure they are practising what they are preaching.

We will also look to benchmark an investment manager’s performance comparative to their peers as well as assess performance against mainstream funds. There may be times when an ESG portfolio underperforms compared to traditional investments, as certain stocks (and indeed, whole sectors) can move in and out of favour during periods of economic and political stability.

We will look to focus on your overarching investment goals to ensure that we maximise your investment returns whilst continuing to invest in companies that work hard to manage their legacy and impact on the world.

There’s a great deal to consider when assessing ESG investment opportunities. Our clients tell us that taking professional independent financial advice from Tees, helps them to invest their money more in line with their core values and beliefs.

This material is intended to be for information purposes only and is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Tees is a trading name of Tees Financial Limited which is regulated and authorised by the Financial Conduct Authority. Registered number 211314.

Tees Financial Limited is registered in England and Wales. Registered number 4342506.

Release equity from house: Increase your income

Posted on by Sarah O'Sullivan
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.

Release equity from your house: Increase your income

Posted on by Sophie Soraf
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 focused 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.

Estate planning: Equity release and inheritance tax

Posted on by Sarah O'Sullivan
Paul and Margaret Evans are a retired couple in their late 70s. They own a valuable property worth £1.2 million and have savings and investments worth £800,000. They have two children and wish to minimise the impact of inheritance tax on their estate, while ensuring they have sufficient funds for their retirement.

Client objectives: Paul and Margaret Evans wish to reduce their potential inheritance tax liability and maximise the amount they can pass on to their children. They also want to maintain their current standard of living and have the flexibility to access additional funds if needed.

Strategy: To achieve their objectives, Paul and Margaret decide to explore the option of equity release as a part of their inheritance tax planning. Equity release allows them to release a portion of the value tied up in their property while continuing to live in it.

Recommendation and Implementation:

Initial Meeting: Paul and Margaret discuss with Toni Chalmers-Smith, their financial adviser at Tees Wealth, inheritance tax planning and equity release. Toni assesses their financial situation, including their property value, savings and investments, and determines the potential inheritance tax liability.

Equity Release Option: After reviewing Paul and Margaret’s financial situation, Toni recommends a lifetime mortgage as the most suitable equity release option. A lifetime mortgage allows them to borrow against the value of their property, either as a lump sum or in smaller amounts over time.

Loan Amount and Interest Rates: Toni calculates the loan amount Paul and Margaret can release based on their age, property value, and health conditions. They also discuss the interest rates, repayment options, and implications for their estate.

Estate Protection: To ensure that the inheritance for their children is maximised, Paul and Margaret decide to opt for an interest roll-up plan. This means they won’t make regular interest payments, and the interest will be added to the loan balance. The loan, including the accumulated interest, will be repaid upon their death or if they move into long-term care.

Inheritance Tax Planning: By releasing a portion of their property’s value, Paul and Margaret can use the funds to make gifts to their children, reducing the overall value of their estate. They consult with a solicitor at Tees to ensure the gifts are structured appropriately within the inheritance tax rules and exemptions.

Ongoing Review: Paul and Margaret maintain regular contact with Toni and their solicitor to review their estate planning strategy and make adjustments as needed. They understand that changes in legislation or their personal circumstances may require modifications to their inheritance tax planning approach.

Outcome

By utilising equity release for inheritance tax planning, Paul and Margaret achieve several objectives:

Inheritance Tax Savings: By gifting a portion of the released equity to their children, Paul and Margaret effectively reduce the value of their estate, potentially resulting in significant inheritance tax savings.

Retained Standard of Living: Paul and Margaret can access the released funds to maintain their current lifestyle, cover healthcare expenses, or enjoy travel and leisure activities during their retirement.

Flexibility: With an interest roll-up plan, Paul and Margaret have the flexibility to choose how and when they access the funds, whether as a lump sum or in smaller amounts over time with a drawdown facility. This provides them with financial security and peace of mind.

Legacy for Children: By reducing their inheritance tax liability and making gifts during their lifetime, Paul and Margaret can pass on a larger portion of their estate to their children, ensuring a more substantial financial legacy.

Important Considerations:

If you are releasing equity to gift money to another person, this will be exempt from IHT if you live for 7 years thereafter, and do not derive any direct or indirect benefit back.  However, if you die within 7 years of making the gift, it will be brought back into account with the rest of your estate when calculating the tax.

It’s crucial to note that equity release, including lifetime mortgages, is a complex financial product. Mr and Mrs Evans sought professional advice from a qualified financial adviser and solicitor to ensure they understood the risks, costs, and implications of their chosen strategy. Everyone’s circumstances are unique, and it’s important to consult with a specialist within this area of advice.

Tees is a trading name of Tees Financial Ltd, which is authorised & regulated by the Financial Conduct Authority, Registered in England, and Wales number 4342506.

Tees is a trading name of Stanley Tee LLP regulated by the Solicitors Regulation Authority, Registered in England in England, and Wales number OC327874.

Quarter days explained

Posted on by Sarah O'Sullivan

Many leases provide for annual rent to be paid in four equal instalments “on the usual quarter days” and clients are often surprised to learn that these are 25th March, 24th June, 29th September and 25th December.

What are the usual quarter days?

These days are not, as one might expect, the first days of the first, third, sixth and ninth months of the calendar year and the quarters which result are not all of the same length.

The explanation lies rooted in the past when England was largely an agricultural country and labourers were hired on annual contracts.

Most people could not read or write and so there needed to be a simple system that everybody understood so that they knew when such contracts would begin and end.

The Church was an important part of most peoples’ lives and so the Church’s calendar was followed. Under that calendar each new year began on 25th March (the Feast of the Annunciation) known as Lady Day, so that became the date from which employment contracts ran. That date then also came to be the date from which to calculate other important financial transactions, and further dates evolved upon which payments, including rent, had to be made.

So that these could be remembered easily, important fixed religious feast days were chosen throughout the year, approximately three months apart, to split the year into quarters hence the name “Quarter Days”.

The four quarter days in England and Wales accordingly came to be Lady Day (25th March), Midsummer Day (24th June, the Feast of St John the Baptist), Michaelmas Day (29th September, the Feast of St Michael and all Angels) and Christmas Day (25th December).

Different days tended to be used in Northern England, Scotland and Ireland.

In 1582 Pope Gregory XIII introduced a new calendar, the Gregorian Calendar, to reform the previous Julian Calendar and to bring it more into line with the lunar year so that Easter Day could be calculated. As a result 10 days were skipped over and lost from that year.

In 1752 the law was changed so that each calendar year started on 1st January but the way in which people had become accustomed to pay their rent did not change and the “rent year” continued to commence on 25th March. In many leases, that remains the case to this day.

More modern quarter days

Some landlords have, however, moved away from the traditional quarter days and many modern leases now provide for quarterly rents to be paid on 1st January, 1st April, 1st July and 1st October.

By way of an aside, as well being the first day of the “rent year”, Lady Day was also the start of the tax year. When Pope Gregory introduced his new calendar in 1582 the problems associated with the loss of the ten days were too much to cope with so the start of the tax year remained as the “old” Lady Day. This became 6th April under the new calendar which explains why, more than 400 years later, this remains for us the date upon which each new tax year starts.

Tees are here to help

We have many specialist lawyers who are based in:

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

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

Tees advises Savage Haulage Limited on its sale to The Ice Co Storage & Logistics Holdings Limited

Posted on by Sarah O'Sullivan
Tees has advised the sellers of Savage Haulage Limited (Savage Haulage), one of the largest temperature-controlled storage and logistics businesses in East Anglia, on the sale of Savage Haulage to The Ice Co Storage & Logistics Holdings Limited (Ice Co).

Savage Haulage has been a family business for 60 years and has been managed in recent years by brothers Martyn and John Savage. It has sites in both March and Thetford and, in 2021, Savage Haulage generated £5.9 million in turnover. Ice Co operates from sites in Newcastle, Preston and Doncaster, and provides storage, logistics, blast freezing and tempering services. Ice Co’s acquisition of Savage Haulage represents a sizeable step forward for Ice Co in terms of its geographic reach nationally.

Martyn Savage, joint MD of Savage Haulage commented: “The Ice Co are a family company with the same values and ethics as ourselves. They are committed to continuing the existing operations retaining our existing personnel in the same positions and creating further opportunities in East Anglia as they take the business forward.”

Lucy Folley, Partner at Tees Brentwood,  Baljeet Kaur, Senior Associate at Tees Brentwood, and other members of the Corporate team at Tees advised Martyn Savage and the other owners of Savage Haulage on a suite of transaction documents, including a complex share purchase agreement and intricate disclosure letter. Lucy was practical in her approach to ensuring that the owners of Savage Haulage understood the legal implications of their commercial decisions and utilised her deep knowledge of the logistics industry to navigate any potential issues arising. The Corporate team worked seamlessly and collaboratively with the Commercial Property team, which was led by Senior Associate Daniel Fairs.

Lucy Folley commented: “We are delighted to have advised the sellers of Savage Haulage Limited on such a monumental transaction in the transport and logistics industry. The sector has faced inflationary challenges in the form of rising fuel, energy, and labour costs. Following a slowdown in consolidation during the pandemic, we are now seeing a strong resurgence in interest in mergers and acquisitions as businesses seek to capitalise on strategic opportunities and enlarge their geographical footprints. Tees is known for acting for both purchasers and sellers in the transport sector; this transaction showcases both the firm’s deep logistics expertise and the sheer importance of M&A deals we are advising on.”

Tees collaborated with Price Bailey, advising the sellers of Savage Haulage on the financial and accounting aspects of the multi-million-pound transaction.

Tees advises Moralis Group Limited on its disposal of G.B.N Services Limited

Posted on by Sarah O'Sullivan
Tees has advised long-standing client Moralis Group Limited (Moralis) on the sale of G.B.N Services Limited (GBN)to Reuse Holdings Limited, part of the wider Sortera Group (Sortera).

GBN was incorporated in 1986 and has grown to become the leading skip hire, recycling and waste company for construction, commercial and household customers across the Southeast of England. GBN has a strong regional presence supported by established UK-wide partners.

Garry Hobson, Managing Director of GBN, said: “This transaction marks an important milestone in what has been a very successful journey for GBN so far, and I am happy that we are now part of Sortera. Sortera shares many of the same success factors as GBN with an entrepreneurial vision, a passion for customers and a strong focus on sustainability. They are a strong partner which will allow for further investment into and development of GBN, which will benefit both the market and our end customers.”

Sortera is a leader in the collection, recycling, processing and sale of residual products from the building and construction sector within northern Europe. Having acquired London-based O’Donovan Group Limited in June 2022, Sortera’s acquisition of GBN represents an additional strategic, geographic investment for the company in the south of England.

Sebastian Wessman, CEO of Sortera, commented: “Sortera is very excited to welcome GBN Services to our UK operations. GBN has built a very strong reputation in the London market with a strong focus on customers, quality and sustainability led by a passionate and experienced team of employees. GBN’s way of working is very much aligned with Sortera’s core values, and we are very happy to add them to the growing Sortera family.”

Corporate Partners Lucy Folley and Baljeet Kaur, with support from the wider Tees Corporate team, advised Moralis on the corporate aspects of the transaction. With sites in Edmonton, Rochford, Southend, Harlow, and Uxbridge, there was a sizeable commercial property aspect of the sale of GBN. Partner Aaron Cane and Senior Associate Lucy Beck advised Moralis on the real estate components of the deal.

Lucy Folley said: “We are proud to have supported and advised long-standing client, Moralis, on this substantial transaction in the commercial recycling and waste disposal sector. Our lawyers have the knowledge and expertise required to truly understand our clients’ industries, which allows us to navigate them through the thorniest of their legal issues and provide practical, tailored solutions at every given opportunity. It was a pleasure to work once again with the Moralis team and we wish them every success in the future.”

Tees worked alongside LB Group, which provided advice to Moralis on the financial and accountancy aspects of the transaction. Having acted for GBN Services for over a decade, LB Group and their Corporate Finance team headed by Stuart Sheldrick were pleased to be involved in the sale of GBN Services.

Stuart Sheldrick said: “It was great to be part of the team working closely with the sellers Moralis Group spearheaded by Soliman Motala, and the team at Tees Law consisting of Lucy Folley and Baljeet Kaur, to ensure a successful execution of the sale to enable Moralis Group to develop their strategic plan.”

White & Case LLP and Eight Advisory acted for Sortera on the multi-million-pound deal.

Considering leasing your land for a solar farm project?

Posted on by Sarah O'Sullivan

Solar farms are one of the fast-growing renewable energy initiatives which are springing up across the country. Solar developers are constantly looking for land to build new solar projects on, so if you are a landowner with some unused land, this gives you the opportunity to lease your land and diversify your income, usually by way of a rental income over a fixed period of years.

Solar farms, also known as solar fields or solar parks, are the large-scale application of solar photovoltaic (PV) panels to generate green, clean electricity at scale, usually to feed into the national grid. Solar farms can cover anything between 1 acre and 250 acres and are usually developed in rural areas.

Approximately 25 acres of land are required for every 5 megawatts (MW) of installation – see our checklist below to find out if your land may be suitable.

As well as providing you with an additional income stream, there are a host of other environmental benefits associated with solar farms. Embracing solar farms as part of your land diversification strategy contributes to a sustainable and prosperous future both for you, your family and society as a whole.

What are the benefits of solar farm land diversification?

  • Stable income – leasing or selling the land for solar farm development provides an increased, diversified and stable source of income for you as a landowner. This can enable financial security and potential long-term revenue streams.
  • Reversible land use – solar farms represent a time-limited, reversible land use option for landowners. Unlike permanent infrastructure, such as buildings or roads, solar farms can be decommissioned relatively easily, allowing the land to be repurposed for other agricultural or developmental activities in the future.
  • Efficient use of land – one of the remarkable aspects of solar farms is their ability to generate substantial electricity while occupying a relatively small portion of land. For instance, installing 10,000 megawatts (MW) of solar capacity on the ground in the UK would only utilize 0.1% of the country’s agricultural land area. Despite occupying a small fraction of available land, this solar capacity could generate enough electricity to power over 3 million homes. This efficient land utilisation allows for the coexistence of agricultural activities alongside renewable energy generation.
  • Significant energy generation and carbon reduction – solar farms have a significant impact on energy production and carbon reduction. With every 5 MW of installed capacity, a solar farm can annually power more than 1,500 homes. Considering the average annual household electricity consumption of 3,300 kWh, this represents a substantial contribution to meeting energy demands. Moreover, the environmental benefits of solar farms are evident in the reduction of carbon dioxide (CO2) emissions. A solar farm with a 50 MW installation can save approximately 21,500 tonnes of CO2 annually, contributing to mitigating climate change and improving air quality.
  • Grid resilience and energy independence – distributed solar farms across various locations contribute to grid resilience and energy independence. By decentralizing energy generation, solar farms reduce the dependence on a single centralized power source, minimizing the risk of widespread outages. In cases of extreme weather events or natural disasters, solar farms can continue to generate electricity, providing essential power supplies to nearby communities. This resilience helps ensure a stable and reliable energy infrastructure.
  • Land conservation and biodiversity promotion: solar farm land diversification can be designed to incorporate conservation measures, supporting local ecosystems and biodiversity. By implementing pollinator-friendly vegetation, such as wildflowers or native grasses, solar farms can serve as habitats for bees, butterflies, and other beneficial insects. These efforts contribute to the preservation and restoration of wildlife populations, enhancing biodiversity in the surrounding areas. Additionally, by preventing agricultural land from being converted into urban or industrial areas, solar farms can play a role in conserving valuable natural resources.
  • Community and economic development: Solar farms can have a positive impact on local communities by fostering economic development. During the construction phase, solar farms create job opportunities, providing employment for local workers and boosting the local economy. Furthermore, solar farms can establish partnerships with neighbouring communities, supporting educational initiatives, renewable energy awareness campaigns, and community-based projects. This collaboration promotes a sense of ownership and involvement in the transition to clean energy, creating a more sustainable future.

Is my land suitable for a solar farm?

This checklist gives a guide as to the likely suitability of your land for a solar farm project and things you should consider:

  • Is the land flat? If not, what is its gradient and orientation? The incline of the proposed land impacts the ease of building and access.
  • Is there access to the site? Roads and paths will be essential for construction vehicles and crews to enter and exit the construction site. As part of the solar project, the developer may wish to install accessways or enlarge what is already there.
  • Is the ground rocky? How deep is the topsoil? Rocky ground may be more challenging to build on or insert ground mounts into. Topsoil depth also affects the structural stability of foundations.
  • Is the proposed location of the solar panels in an Area of Outstanding Natural Beauty (AONB) or a national park? It is unlikely that a solar farm will receive planning consent if it is located within either of these two categories of land.
  • Can the field be seen from a road? If the site is visible from the road there may be additional planning considerations due to the perceived impact on the visual amenity of the area which refers to the views and surroundings that comprise the backdrop to an area.
  • Is there any substantial energy consumption on the premises? You need to factor in whether the proposed solar farm is being considered for powering and offsetting the electricity bills of commercial premises.
  • Where is the nearest substation/power connection? Proximity to a substation or power connector is desirable because voltage drop/power losses through power cables increase with distance. The size of the power line is also important: a 33kVa line or above is ideal, however 11kVa lines are also suitable. A developer will need rights to install cabling under your land (and potentially under neighbouring land). In addition, they may well need rights to allow the installation of a new substation on your land.
  • Is there any existing solar PV installed on the property currently? Installing a new system on a property where one already exists may have an impact on the feed-in tariff eligibility of the first system. Additional electrical connection considerations will also apply to a second system.
  • Are there any substantial solar PV or wind farm installations nearby? Receiving permission to connect to the grid may depend on the state of the network in the region of the proposed installation. An already high penetration of solar power or wind (both types of ‘distributed generation’) may affect the ease of granting a grid connection permission.

How does the leasing on a solar farm work?

As a landowner, typically you will receive rental income on the leased land, in exchange for a rental income for a fixed number of years – usually around 30 years. Rental payments are index-linked, rising annually with inflation and made in advance from the point at which construction of the site begins.

How Tees can help

The experienced renewable energy team at Tees can advise both developers and landowners at every stage of the property aspects of a solar project. This includes all stages from the early lease negotiations, through to helping secure funding and offering ongoing assistance with the operation of the solar site throughout the term of the lease.

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All legal services provided by Tees are regulated by the Solicitors Regulation Authority. Tees is a trading name of Stanley Tee LLP is authorised and regulated by the Solicitors Regulation Authority (SRA Number 464615) and is registered in England and Wales number OC327874.

All financial services provided by Tees are regulated by the Financial Conduct Authority. Tees and Tees Wealth are trading names of Tees Financial Limited which is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales number 4342506. Registered office address Tees House, 95 London Road, Bishop’s Stortford CM23 3GW.

Copyright © 2025 Tees Law. All rights reserved.

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Financial services:
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0800 0131165

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All legal services provided by Tees are regulated by the Solicitors Regulation Authority. Tees is a trading name of Stanley Tee LLP is authorised and regulated by the Solicitors Regulation Authority (SRA Number 464615) and is registered in England and Wales number OC327874.

All financial services provided by Tees are regulated by the Financial Conduct Authority. Tees and Tees Wealth are trading names of Tees Financial Limited which is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales number 4342506. Registered office address Tees House, 95 London Road, Bishop’s Stortford CM23 3GW.

Copyright © 2025 Tees Law. All rights reserved.

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