Property News & Views

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The latest quartlery report by Citylets discusses the thriving rental market. In particular 1 bed flats saw a substantial annual rent increase by 3.6% and the most popular property type, 2 bed flats, were up 1.5%.

Read more: www.citylets.co.uk/reports/pdf/Citylets-Rental-Report-Q4-11.pdf?ref=reports



Isabelle Douglas, Family Lawyer discusses the requirement for a Cohabitation Agreement when you purchase a property with your partner or move in together.

When a couple embark upon cohabitation, whether by way of purchasing a property together or residing together in a property which one of them owns, many will not give consideration to how the financial and property matters arising from their cohabitation will be dealt with on their separation or death.  However, it can be very important that provision is made for such eventualities and by entering into a comprehensive Cohabitation Agreement at the outset, cohabitants can spare themselves considerable time and expense should their relationship subsequently end by way of separation or death.

Purchasing a property in joint names

Following the global recession, mortgage lenders rarely lend prospective purchasers 100% of the purchase price required to buy a property and, therefore, one or both parties will be required to partly fund the purchase by way of a cash deposit.  Also, once the parties are cohabiting, one party may contribute more towards the repayment of the mortgage and other household outgoings each month than the other.  In the absence of a Cohabitation Agreement, the equity in the property or the proceeds of any sale would fall to be divided in terms of the Title, regardless of the parties’ respective financial contributions towards the property during their relationship.  In cases where this outcome would not produce a fair result for both parties, it is essential that the parties enter into a Cohabitation Agreement if they wish to protect their respective investments. 

Where a property is jointly owned, it is also necessary to consider how the property will be dealt with on the death of either party.  The Title to the property will either contain a special destination, whereby each party holds an independent “pro indiviso” share in the property, or a survivorship destination.  Where the Title is taken in “pro indiviso” shares, the deceased’s interest in the property will pass to the beneficiary or beneficiaries named in their Will.  Where there is a survivorship destination, the deceased’s interest will automatically pass to the joint owner.  However, there can be situations where either option is insufficient to reflect the parties’ intentions and where this is the case, a Cohabitation Agreement is an effective mechanism for ensuring the parties’ wishes will be given effect to. 

Cohabiting in one party’s property

Where a couple cohabit together in a property owned by only one of the parties, they may intend in the event of their separation, that the non-owning cohabitant will not make any financial claim in respect of the property.  Alternatively, the non-owning cohabitant may be making financial contributions towards the property (either by way of a monthly payment towards household outgoings or a capital payment towards home improvements) and wish to be reimbursed for this.  A Cohabitation Agreement can give effect to the arrangements the parties have made in this regard and ensure that both parties are certain as to their position in the event of separation.

Family Law (Scotland) Act 2006

In terms of the Family Law (Scotland) Act 2006, a couple who are living together as if they are husband and wife are entitled to make financial claims against one another on separation or death.  In addition to regulating the ownership of heritable property, a Cohabitation Agreement gives the parties an opportunity to determine how the provisions of the Family Law (Scotland) Act 2006 will apply to their relationship.

No Cohabitation Agreement?

In the absence of a Cohabitation Agreement, you may require to resort to potentially costly and lengthy litigation against your former partner on your separation to seek to recover any sums you believe you are entitled to as a result of your cohabitation or to have a jointly owned property sold.  The outcome of Court action is difficult to predict with any certainty but will undoubtedly result in the separation process being far more stressful and upsetting that it might have been.

In short, a Cohabitation Agreement will minimise the potential for conflict and litigation in the future.  We would strongly recommend that if you are considering cohabitation, you should seek independent legal advice at the earliest possible opportunity to ensure that you are fully advised and your interests are protected as far as possible.

Isabelle Douglas, Solicitor



Aberdein Considine property 73a Bon Accord Street, Aberdeen features in a Press & Journal Editorial.

Read more: www.pressandjournal.co.uk/Article.aspx/2537578



Aberdein Considine property Rannieston House, Udny features in a Press & Journal Editorial.

Read more: yourhome.ajl.co.uk/Article.aspx/2519540



Aberdein Considine property The Coach House, Fetteresso Castle, Stonehaven features in the Press and Journal's 'Your Home' supplement.

Read more: yourhome.ajl.co.uk/Article.aspx/2503311



Mike Sinclair, Senior Property Partner, examines just a few of the statutory obligations which need to be complied with before Landlords lease a property.

The continued growth of the private rental sector has been matched with a wealth of legislation designed to protect tenants from unscrupulous Landlords. Great care must now be taken to ensure that both new and existing Landlords do not fall foul of the law.

Of particular note are the following pieces of legislation which all Landlords must address before leasing their property to a prospective tenant:

The Repairing Standard

The Housing (Scotland) Act 2006 introduced the need for Landlords in the private sector to ensure that their properties meet what is now known as the “Repairing Standard”. Essentially Landlords must now ensure that their properties are not only wind and watertight, but they must also ensure that the structure and exterior nature of the property together with all installations (and this includes services which supply water, gas, electricity etc) are all in reasonable repair and working order.

No less important is the need for properties to have a satisfactory provision for detecting fires. Whilst it is currently acceptable for existing smoke alarms (excluding properties on more than one level) to be mains powered or battery powered, any alarms installed after September 3, 2007, must be mains powered and this includes replacement alarms.

The obligation to ensure that the property meets the Repairing Standard commences at the start of the tenancy and rests with the Landlord throughout the duration of the lease. There is also a duty to provide the tenant with written information on the effect of the Repairing Standard in relation to their tenancy and how it can be enforced through the Private Rented Housing Panel (PRHP) – a Scottish body which operates as enforcer of the legislation.

If a tenant believes that the Landlord has not complied with the Repairing Standard he or she can apply to the PRHP, whereupon the Panel either rejects the application, refers it to committee or delivers a decision if the possibility of mediation exists. It is worth noting that should the PRHP decide that the Repairing Standard has not been met then the Landlord can be required to do the necessary work with the PRHP having the authority to place an enforcement order upon the property and also impose a rent relief order to reduce rent payable if a Landlord fails to comply.

Energy Performance Certificates (EPCs)

Introduced in tandem with Home Reports in Scotland, an EPC is required now for all leased properties and contains information in relation to a property’s energy efficiency and environmental impact (CO2) rating. An EPC will also detail cost effective improvements which would enhance the energy performance of the property and for all. Let properties, the certificate will require to be affixed and displayed within the property for the duration of the lease.

Health and Safety

A raft of legislation already existed prior to the introduction of the Repairing Standard and EPCs including :

• •The requirement for all electrical appliances included within the property to be subjected to a Portable Appliance Test ( PAT)
• •All gas systems require to be checked by an appropriately qualified engineer ,who will provide a Landlord Gas Safety Certificate
• •All furniture including beds and sofas need to be checked to ensure that they comply with the Furniture and Furnishing (Fire)Safety Regulations 1988.
• •Properties let to more than 2 unrelated persons may also require what is known as a Multiple Occupancy Licence in accordance with the Civic Government (Scotland)Act 1982 (Licensing of Houses in Multiple Occupation)Order 2000.

Landlord Registration

All Landlords must now be registered with their local authority’s Private Landlord Registration Scheme but before a registration is granted however, the Local Authority is duty bound to ensure that the Landlord is a fit and proper person to let. This includes a background check to ensure that the Landlord does not have a conviction within the last three years for a criminal offence, or offences that are relevant to carrying out residential letting. The Anti Social Behaviour Act (Scotland) 2004 from which this legislation derives goes further, with requiring that Landlords also have a responsibility to encourage their tenants not to behave in such a way that may cause alarm or nuisance to neighbouring properties.

For new and existing Landlords there is far more to letting out a property than first appears. Careful research and preparation at the outset will go a long way to avoid serious repercussions at a later stage.

Michael Sinclair, Partner



Susanna McWhinnie, Conveyancing Solicitor, discusses the incentives available and those being proposed, which are designed to improve the energy efficiency of our homes.

With the cost of Gas and Electricity constantly increasing, are there any incentives out there to make it worth your while buying a more energy efficient home?

In his final budget as Chancellor, Gordon Brown announced that stamp duty would be scrapped on all new properties worth up to £500,000 which were given a zero carbon rating.  However the high profile scheme was deemed a failure with only 24 homebuyers taking advantage of the scheme by January last year.  The problem is that so few homes would actually qualify for the exemption and buyers of 'second hand' properties would not qualify at all for the relief.  In order to achieve a zero carbon rating a property must not consume any fossil fuels for heat or power and use renewable energy instead to power its needs.  These impractical requirements have meant that very few new properties have achieved the zero carbon status.

However it has brought the subject of energy efficient homes to the forefront and it is highly likely that in the coming years more and more developers will strive to achieve a greener ethos in their developments.  

Perhaps it is more useful then to consider what incentives are available to make existing housing stock more energy efficient and whether doing so in turn makes them a more attractive option for a discerning purchaser. 

The vast majority of CO2 emissions in the UK come from older properties and it is therefore important to look at measures which may assist in reducing the carbon ratings of existing housing stock in the UK. 

Measures such as double-glazing, loft and cavity insulation, heat pumps and even energy efficient light bulbs are all available, but at what cost?  Many of these measures can be expensive to install and home owners might struggle to see the benefit straight away. 

However proposals are in place to introduce the 'Green Deal'.  Set to launch in April 2012 it is designed to enable many households to improve the energy efficiency of their property.  The government are to implement a new finance mechanism enabling the cost of energy efficient measures to be installed and to be paid back via the savings gained on energy bills. In addition to this, the Department of Energy and Climate Change (DECC) have announced the launch of the 'Renewable Heat Incentive' Scheme.  Available to households by October 2012 it will help people to cover the costs of installing green heating systems in their homes.  In return homeowners will take part in studies to monitor the outcome and enable the government, manufacturers and consumers to better understand how to get the most out of the technology. 

It may also surprise you to learn that a limited number of mortgage lenders already offer so-called 'green mortgages'.  Householders can receive discount on the lender's standard variable rate if the home being secured is energy efficient or the borrowers are using the funds to invest in energy efficient improvements.  Some also factor in reduced fuel bills into their affordability calculations allowing buyers to take out bigger loans.  Although the amount of lenders offering such deals is very limited at present, with the government determined to tackle climate change and the ever increasing costs of traditional fossil fuels this could just be the start.

Whilst many buyers may not pay much heed at present to the Energy Performance Certificate which forms part of the Home Report for each property currently on the market, it appears times could be changing.  Energy saving measures implemented now could increase the value of the property and also be a safeguard against future energy prices.  This could make more energy efficient properties more desirable to prospective purchasers and with a recent Energy Saving Trust survey suggesting that up to 70% of people would consider renegotiating the price of a property if they discovered it was inefficient, its perhaps time to re-evaluate the importance of an energy efficient home.

Susanna McWhinnie, Solicitor



Aberdein Considine property 17 Bon-Accord Square, Aberdeen features in a Press & Journal Editorial.

Read more: yourhome.ajl.co.uk/Article.aspx/2462871#ixzz1b1s0C7LD



Aberdein Considine property Yallingup, Main Street, Hatton features in a Press & Journal Editorial.

Read more: yourhome.ajl.co.uk/Article.aspx/2457972



In the second quarter of 2011 national property website, Citylets processed a record volume of rental transactions and the average rent in Scotland reached £663 which is the highest level since the third quarter of 2008. This is partly due to the swell in popularity for rented accommodation caused by the continuing struggles that would-be homeowners are facing in financing their first purchase.

Read more: www.citylets.co.uk/reports/pdf/Citylets-Rental-Report-Q2-11.pdf

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