Real Estate property

UK real estate market in trends and numbers

The prices for housing in the capital of England are currently at an all-time rise since 1987. The average house price in the capital has exceeded the mark of £400,000. This is almost two times higher than the national average, according to The Guardian.

According to official statistics, prices in the capital of the Kingdom have increased by 25.8% during the second quarter of 2016 and the same period this year reached an average of £400.404, for the first time exceeding the level of £400 thousand. This is 30% above the previous peak that was observed in 2007 – 2008. The cost of real estate in the national average equals £188.903, while the annual rate of inflation in the real estate sector has reached 11.8% mark.

The property prices in almost all areas of London are showing a double-digit growth. For example, in the area of ​​Lambeth in South London the property values ​​are now 37% higher in the second quarter of 2016 than a year earlier, while in Camden, North London, they rose by as much as 36%. According to the agency’s head of Marsh & Parsons, Peter Rollings, in London there is an unprecedented demand for property and the trend of record sales is maintained. For example, according to UK high-rated conveyancing solicitors data provided by solicitors.guru, one of the largest legal platforms, for each residential facility in the south-west of London 48 buyers lay up claims on. ‘This gap between property prices in London and other regions of the country has never been that huge’, Nationwide chief economist Robert Gardner says, adding that the authorities ‘do not have the tools to solve the fundamental problems of the housing market because of the significant lack of offers’.

Statistics forced market participants to talk about the probability of occurrence of a ‘bubble’ in the market of UK property. Real estate experts believe that the price level of growth is unsustainable, warning that ‘the risk of a sudden correction in prices in the next few years is growing’.

However, it seems like the Bank of England in the nearest future is not likely to take some drastic measures in this regard in the next few years. Recently, the Bank of England announced that it will take a wait and monitor the state of affairs around the housing market, at the same time recommending banks and building companies to restrict the volume of loans and take more careful approaches to the study the credit history of borrowers.

Traditionally, in many countries, as the recovery in aggregate demand in the national economy, first of all stock prices begin to increase and with an interval of around six months, property prices start increasing, as claim analysts from EXNESS. The growth in demand for property in the UK contributes to the increase in the last two years the volume of guaranteed loans for homes by the banking sector with 0.527 billion to 1.715 billion pounds. Meanwhile, the number of permits issued for mortgage lending in the UK from January to May 2016 decreased from 71,000 to 62,000 of loans against the background taken in the last year tightening lending measures in this sector.

 

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Law Issues

Is it necessary to enter into a prenuptial agreement?

For many couples this is a ‘hot issue’, often raising the questions of mutual trust and faith in the future together. Meanwhile, prenups serve a great insurance measure of protection for various family commitments and shared assets in case of divorce or separation.

A prenuptial agreement is a legal contract composed prior to one’s marriage, which states the way a couple’s existing assets will be divided in the event of separating. Assets covered by the document usually include the following: shared property, inheritance, debts, businesses and even children, all acquired individually or unitedly.

Reasons to sign a prenup

Firstly, a premarital agreement allows relatively peaceful settlement of a divorce resolution without court intervention. It is especially valued when partners possess big assets and wish to stay fair to each other. Furthermore, a prenup ensures that children from a previous marriage are entitled to get a guaranteed part of the assets. The same applies to inheritances and savings.

In case one of the partners is to pay off an outstanding debt, a prenup is a great protection against ‘unexpected’ liabilities for the other partner provided a ‘debt clause’ is included in the agreement.

In addition to financial issues that couples may face during their conflict escalation, there are various topics concerned with expectations towards each other in terms of communication and responsibilities, like career pursuit or child care. Yes, many people discuss it in advance.

Are prenups legally binding in the UK?

Not at all, you are not obliged to sign a prenuptial agreement as long as you find it useless or immoral.

But if you do have a prenup, the judge is most likely to consider the terms listed there when making a verdict. However, it doesn’t mean that all the prenuptial agreements will be fully enforceable. The legal case of Radmacher and Granatino became one of the most notorious divorce trials in which a prenuptial agreement played a vital role.

In general, the weight of the prenup depends on how fair the deal is, added by the actual ability of the weaker party to meet the requirements by the moment of financial settlement. The Court will refer to Section 25 of the 1973 Matrimonial Causes Act, according to which the judge is supposed to “have regard to all circumstances of the case”. A fair prenuptial agreement is the one meeting the Act requirements, given the parties entered the agreement freely and consciously.

A checklist to follow for a good prenuptial agreement

You are free to compose a prenuptial agreement on your own and notarize it when signing. By the way, signature timings are quite flexible. As long as you wish everything to be legally and financially correct, it is worth consulting a lawyer – modern online portals provide great databases storing all the information for you to find solicitors in any locations: e.g. Suffolk, Hampshire, Cornwall solicitors, etc.

There are certain factors to be considered when composing and entering a prenuptial agreement to ensure the agreement power:

  • In compliance with the UK law, a prenup must be compiled and written by a qualified solicitor.
  • Both parties are to hire separate solicitors and have a clear understanding of all the agreement items.
  • Solicitors must confirm that the prenup was entered without pressure.
  • There must be total disclosure of all assets and property by both parties.
  • Certain provisions for children are to be included in the agreement.
  • It is highly recommended to review the prenuptial agreement as soon as there are some circumstance changes (childbirth, unemployment, etc.), so that it continues to be fair in court.
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