Rowlands are delighted to be sponsoring the Manchester Evening News Residential Property Awards 2008 for the fifth consecutive year.

Developments will be judged over the summer with winners announced at a dinner at the Hilton Hotel on October 23.

Developers can download an entry form here.

Rowlands' Senior Partner, Aidan Carr, commented,

"We are delighted to be sponsoring the MEN Property Awards for the fifth successive year. The categories of awards encourage not only good design and build but also the increasing importance of refurbishment, conservation, sustainability and respect for the environment.

Whether developing or purchasing, good design and construction and wise investments will outlive by generations any current concerns exercising the minds of all involved in the development and acquisition of property in Greater Manchester and the North West especially with so much interest from national and multi-national companies keen to relocate as evidenced by the development of Media City in Salford.

Manchester is a vibrant city, not only commercially but also through its universities that excel in academic spheres and is an entertainment centre second to none outside London.

We have advised over the generations, both developers and individuals in property acquisitions and disposals and we fully expect to be advising the generations of the future.

Together with our co-sponsors, Manchester City Council and Allied London, we wish those competing to win an award the very best of luck."

The Royal Institution of Chartered Surveyors has reported the fastest increase in residential lettings since 1978 as the property market continues to feel the effects of the credit crunch.

The results of the latest RCIS survey show that 43% more chartered surveyors reported seeing a rise in the number of new landlord instructions than those who saw a fall.

Sales of residential properties have continued to struggle as the number of mortgage approvals continue to decline and potential buyers show a wariness to proceed as mixed messages come from the government on a possible stamp duty holiday.

This has resulted in landlords and investors receiving a welcome boost in the face of a declining market. Landlords and potential sellers are becoming more reluctant to sell their properties as they await future capital appreciation.

However, there are early indications that the eagerness of landlords to capitalise on the current boom in lettings will result in an oversupply of rental properties, and there are signs that the average rent is decreasing.

At Rowlands we are aware of the pitfalls of letting property and we advise landlords and estate agents in respect of:

• Drafting tenancy agreements.
• Possession proceedings.
• Debt recovery matters.

If you are interested in any of these services please contact Steven Brown on 0161 835 2020 or by email at steven.brown@rowlands-solicitors.co.uk.

Over the last two months we as a firm have seen certain areas of the housing market and certain regions of the UK remain buoyant and buck the current downward trend in the property market.

Interest rates are decreasing to attract borrowers: evidence of this is the fact that in the last month alone, rates have been cut by several lenders including Nationwide, Abbey, Woolwich, Cheltenham & Gloucester and Halifax.

It would appear also that more mortgage deals are now becoming available. From a buyer’s point of view, house builders and housing associations are offering more incentives to assist buyers get on to the property ladder.

For more information please contact us or email info@rowlands-solicitors.co.uk

The implementation of the Public Law Protocol in Greater Manchester leads to decline in the number of Care Applications

His Honour Judge Iain Hamilton, Designated Family Judge for Greater Manchester circulated his comments in relation to implementation of the PLO in Greater Manchester on the 8th July 2008, stating that "the overwhelming view of the very experienced public law ticketed Circuit Judges and District Judges is that the PLO has added little of real benefit to improve the forensic practice of how public law cases are dealt with within Greater Manchester." Various difficulties in relation to the PLO Forms and Orders are highlighted, particularly in relation to the introduction of standard Forms and Orders. The format of the Forms and Orders has led to practitioners failing to draw Orders properly. There is a proposal that the Greater Manchester PLO Implementation Working Group will consider the issues relating to these difficulties, with a view to issuing some guidance for local authorities and practitioners in due course.

The article notes that there has been a significant decline in the number of public law proceedings issued by local authorities in Greater Manchester – a fall of 52% in April and 57% in June has been identified. His Honour Judge Hamilton comments that "It is difficult to know whether that is simply a reflection of the difficulties and uncertainties generated by the different requirements of the PLO, or whether it is a response to the 'fee issue'". He goes on to state "On any view, however, it is worrying that there should be such a significant decline in the number of cases being started."

His Honour Judge Hamilton goes on to mention some positive developments that coincided with the introduction of the PLO, in particular mentioning that Judges have been impressed by the quality of Guardians’ case analysis and recommendation reports – "It is recognised that this has been a real benefit to the judiciary in enabling them and the parties to focus better on the real issues from an early stage in the proceedings. The impression is that the PLO requirements have also enabled the parties’ legal advisors to focus more effectively on the appropriate expert to seek to instruct."

Of apparent concern to the judiciary is that specialist family law practitioners are becoming less inclined to undertake publicly funded work, as a result of financial constraints, notably the Legal Services Commission's introduction of fixed fees for public law cases. An example is given of Wythenshawe in Manchester, which has one of the largest housing estates in Europe – the area no longer has a firm of family solicitors which offers publicly funded advice for family law problems.

Earlier in the year at the Resolution Annual Conference, Mr Justice Coleridge referred to "the terrible shortage of contact centres" – an issue that is re-visited in an article in Resolution’s July 2008 Review.

The article by Judy Birchall, a manager with the National Association of Child Contact Centres urges Resolution members to abide by the protocol introduced in 2002 which provides guidance to Courts considering making an Order for contact which involves the use of a contact centre. Mention is made of the number of unrepresented parents requiring referrals to contact centres. Enquiries can be directed to the National Association of Child Contact Centres.

You may have read many features in the Press recently about the problems with the Spanish Property market.

You may however still be interested in buying a property in Spain in view of the fact that prices are dropping and now might be a good time to buy.

For a detailed look at the problems surrounding a Spanish Property Purchase please review this article by Derek Sands, Partner and Head of Rowlands' Foreign Property department.

Here we see Emma Stockton receiving her prize from Jon Andrews, the joint Managing Partner. Emma entered the draw when she attended the Homebuyers Exhibition show earlier on in the year at which Rowlands had a stand.

When Emma was notified that she had won the Champagne she said that she had never won anything in her life and she was delighted with the prize.

The event was very successful for Rowlands and Jon Andrews says "We are committted to the property sector and were delighted with the response to our presence at the Homebuyers Exhibition."

"Everyone is aware of the difficulties in the economy but we are finding that there are significant pockets of activity, and our Conveyancing team remain busy. We are determined to support this sector of the economy in the North West by offering high quality, pro-active legal services and we are well placed to serve the needs of investors and others who see oppurtunities in the current market."

Britain’s largest retailers are uniting in an attempt to change the centuries-old practice of paying landlords quarterly rent payments in advance.

The consortium of retailers, which includes Boots, Next, Argos and Arcadia, are demanding that landlords now accept rent payments on a monthly basis. These moves follow on from the Rent Monthly Campaign initiated by the British Retail Consortium in 2006 which was supported by more than 80,000 small retailers. The retailers argue that making quarterly rent payments in advance has a significant effect on cash flow and the process contrasts with the normal commercial practice whereby invoicing for business services is on a monthly, after-the-event basis. In 2006 the BRC claimed that the current rental system costs retailers around £145 million a year.

The landlords, who include large property companies such as British Land, Land Securities and Hammerson, are in a strong legal position and are likely to be resistant to change. It is normal practice for a lease in respect of commercial property to include provisions relating to quarterly advance rent payments, and there will be no legal obligation on landlords to alter their stance.

The practice of paying rent monthly in advance is already popular in the United States and in certain parts of central Europe. Fifty councils in England and Wales agreed to accept monthly rent payments from retailers in late 2006 as a result of the Rent Monthly Campaign.

There have already been some concessions from landlords in respect of retailers based in out-of-town shopping centres. However, many landlords have ensured that any move to monthly rent payments have not been advertised to prevent other tenants wanting to follow suit.

HIPs Love them or Hate them

We have all read about HIPs over the last couple of months but what makes interesting reading is that the Royal Institute of Chartered Surveyors, the National Association of Estate Agents and the Association of Residential Letting Agents have commissioned a report to look at the impact of HIPs (Home Information Packs) since they were introduced 12 months ago.

The report was carried out by Sir Bryan Carsberg, a former Director General of Fair Trading.

Carsberg concludes that the contents of HIPs had been reduced to very little, despite their cost of on average £350, and that they should no longer be compulsory. Here are some quotes from his report.

"I understand that, to date, few buyers have shown an interest in the HIP, and a substantial number of conveyancers ignore its existence and recommission searches on receiving instructions from their buyer client, suggesting a lack of confidence in the limited content".

"This evidence alone indicates that the cost of HIPs is likely to exceed their benefits. Some would summarise the position by saying that the HIP provides the worst of all worlds – it omits much of the most useful information but still imposes significant costs on the property transaction".

"Even if HIPs were to become more comprehensive, there appears to be a strong likelihood that delays between the preparation of the pack and exchange of contracts would mean that much of the information would have become out of date by the time it was use".

Notwithstanding the report, the Department of Communities and Local Government has said there are no plans to scrap HIPs.

The Sentencing Guidelines Council (SGC) has published new guidelines for courts sentencing drivers convicted of offences where death is involved. This is likely to result in harsher sentences being imposed. Of particular concern for the average motorist are guidelines applicable for the new offence of causing death by careless driving.

The new guidelines mark a trend that began about ten years ago. Until then magistrates passing sentence for an offence of careless driving involving death were advised not to allow the fact that a death had occurred to become an aggravating feature in the sentence passed.

Similarly, it was generally accepted that the unintended consequences of an accident would generally have little relevance to the penalty imposed where the offence to be dealt with was one of careless driving. Magistrates, when deciding sentence in such cases were encouraged to focus on the degree of carelessness and to bear in mind that a moments inattention could have tragic but completely unintended results.

This approach was changed by two cases R –v- Simmonds in 1999 and R –v- King in 2001, where the Court of Appeal decided that the idea that a sentencing court was obliged to disregard the fact that a death had occurred was somewhat anomalous

Since then, whilst the emphasis has been on assessing the culpability of the driver, the courts have taken into account the consequences of such culpability in so far as they indicate the degree of risk created by the careless driving.

Growing public concern over serious injury and deaths on the roads and the controversy over the use of handheld mobile phones by drivers resulted in February 2004 in the maximum sentence for causing death by dangerous driving being increased from ten years to fourteen years imprisonment and at the same time the offence of using a handheld mobile phone whilst driving became endorsable with a maximum fine of £1,000.

As a result of the increased penalties drivers convicted of causing death by dangerous driving can now expect an immediate sentence of imprisonment of two years where there are no aggravating features and a sentence of up to ten years imprisonment for more serious offences.

For the new offence of causing death by careless driving with no aggravating features the starting point would be a community order, increasing to a starting point of 15 months imprisonment where the standard of driving fell just below dangerous driving.

The Crown Prosecution Service (CPS) have a published policy on cases of bad driving. In deciding whether the driving falls into the category of dangerous or careless they will take into account factors such as:

• Speed, which is inappropriate for the prevailing road conditions.

• Unsafe overtaking

• Use of a handheld mobile phone

• Reading a map

• Talking to/looking at a passenger

• Selecting and lighting a cigarette

It is not therefore, difficult to envisage a combination of circumstances where a driver with a previous good record becomes involved in a fatal accident and suddenly faces an allegation of causing death by careless driving or the more serious charge of causing death by dangerous driving which, on conviction, would result in an inevitable immediate prison sentence.

Motorists should, therefore, constantly remind themselves of the important responsibility they assume when they drive and if they do find themselves involved in an accident, particularly where death or serious injury has occurred ensure that they receive legal advice and representation at the very outset.

For further information contact Aidan Carr.

The Trade Descriptions Act 1968 – RIP?

Many business owners will have heard of the Trade Descriptions Act 1968. But how many are aware that it has largely been replaced by The Consumer Protection from Unfair Trading Regulations that came into force on the 26th May 2008?

The new regulations have been introduced in an effort to harmonise the law protecting consumers across the European Union so that in theory at least, there will be a level playing field for businesses upon which to compete and so that it will be easier for businesses to operate across the whole of the EU.

The Regulations bring together rules and regulations previously spread across some 23 pieces of legislation and provide a comprehensive code under which traders are required to treat consumers fairly.

Penalties for breach of the Regulations range from fines up to a maximum of two years imprisonment at the most serious end of the scale.

Well advised business owners should familiarise themselves and their sales force with the new law to avoid incurring penalties and the attendant potentially catastrophic loss of goodwill.

Usefully, the regulations specifically outlaw 31 prohibited practices, which include: Falsely claiming accreditation – such as falsely claiming to subscribe to a code of conduct or displaying a quality mark when ineligible. This could cover the situation when your membership has simply lapsed and has not been renewed.

Pricing and product information- advertising products at a specified (low) price, but not having them available for sale within a reasonable time.

Limited time offers- falsely stating that a deal or offer will only be available for a very limited time.

Not taking "No" for an answer- making repeated and unsolicited contact by telephone, fax or email.

Market Conditions- misleading the consumer as to market conditions e.g. by stating that due to excess demand new stock will not be available for some time.

If you require guidance on how the regulations affect your business then contact our Commercial Department or if you are subject to an investigation by Trading Standards then contact Aidan Carr in our Litigation Department.

A recent survey by the finance providers Paragon Mortgages has shown that 55% of landlords in the UK are unaware of impending changes in the law relating to energy efficiency requirements.

Under the new laws, which come into effect on the 1st October 2008, landlords letting a residential property will have to provide all prospective tenants with an Energy Performance Certificate (EPC). An EPC is a report on the energy efficiency of a property and can only be prepared by an accredited energy assessor.

An EPC is valid for 10 years and contains recommendations on how to make the property more energy-efficient, but there will be no obligation on the landlord to implement these recommendations.

The obligation to provide a written report arises when the landlord provides written information about the property to a person who has requested it, when a prospective tenant views the building, or when a contract is entered into for the letting of the property. Failure to obtain an EPC will mean that after the 1st October 2008 a landlord will be unable to market the property and will be liable to a fine of £200.00 per dwelling.

High street mortgage lenders have reduced the rates of some of their fixed rate/tracker mortgages. The biggest drop in mortgage costs applies to those that have the ability to put down larger deposits of up to 30%.

Fixed rate deals for house buyers from Abbey, for example, have reduced twice in the last ten days (as at 11th July 2008). Although the offer of mortgages has been affected by the "credit crunch" there is a variety of mortgage deals being advertised for buyers who have a deposit of over 10% available.

Runners from Rowlands hit the streets in the annual Manchester 10K race, raising funds for Cancer Research UK, The British Heart Foundation and St Monicas - a Hospice in Nairobi, Kenya, which looks after mothers and babies suffering from HIV/Aids.

Our picture shows back row from left; Charlotte Taylor, Gail Cartwright, Richard Armstrong, Anne Flynn.
Front row from left; Melanie Sharples, Linda Street and Anita Clews

Recent press coverage has led to controversy over the distribution of local authority funds in relation to the maintenance of defective and dangerous pavements nationwide.

It has been reported that one council had put aside £330,000 to cover legal costs last year but only £62,000 for repairs to broken pavements.

Statistics however show that 2,300 older people alone fall on broken pavements every day and that 24% of pavements in England are in need of repair and maintenance.

The compelling truth is that more than 80,000 elderly people sustain injury following falls on Britain’s poorly maintained paths and pavements and then become too frightened to leave their homes. Pamela Holmes of registered charity, Help the Aged warns of the inherent danger in failing to tackle this problem effectively. She said “It is vital councils invest more in keeping public walkways safe, as falls are the leading cause of deaths for over 75’s.”

It is apparent that significantly more funding is allocated to dealing with claims post accident than in taking pre-accident, preventative action in terms of maintaining Britain’s walkways. Put simply, a safe pavement equals a safe public.

It is a fallacy to suggest that this trend has lead to an influx of spurious personal injury claims and therefore a rise in fees being paid to the legal profession. All of us are under a duty to protect the most vulnerable in our society. Everyone should be able to leave their homes and go about their everyday lives without the concern of falling on defective pavements and sustaining serious injury. If the Local Authorities are not prepared to invest the funds in repairing and maintaining Britain’s walkways then we, as lawyers, have a duty to represent the vulnerable in their hour of need. This is not simply a matter of obtaining compensation on their behalf, but of giving them their freedom and therefore their lives back.

 

Written by A. Flynn and A. Rowlands

The national press makes rather depressing reading at the moment. Things however may not be as bad as they seem for the North West.

Figures which have recently been produced by the Land Registry indicate that the North West and Manchester in particular, saw price increases of 3.2% in April of this year. Furthermore, prices in the North West generally so far haven’t seen as much of a fall in price as in the South East.

The Land Registry figures provide one of the more accurate price monitors recording the actual price for which the property is sold as opposed to the “advertised” price. There is not a property crisis but rather what seems to be a financial/banking crisis and until the financial institutions start to generate some liquidity in the money markets then it would appear that the housing market will be tarred with the same brush.

Clearly, the global credit crunch has already affected the UK and made banks wary of lending but for buyers who can raise a deposit then there are chances to be taken and an advantage is to be gained by lower house prices.

Rowlands is on the takeover trail as it looks to step up a gear following a period of upheaval.

Rowlands, which has its flagship office in York Street Manchester, and a satellite branch in Swinton, is looking to acquire small practices around Greater Manchester, with a focus on commercial specialists.

News of the planned swoops came as Rowlands today unveiled a modest £200.000 rise in fee income for the year to April 30, up from £5.35m.

Joint managing partners Jon Andrews and Tony Broadley said they were delighted with progress made during their first 12 months at the helm after replacing Ron Taylor.

Senior partner Philip Belamy was replaced by Aidan Carr. Mr Broadley said Rowlands was on a stronger footing after investment in IT and marketing services, and looking to maintain its growth momentum this year.
"We are looking to acquire sole practitioners who may be working from home, and also two-to-three partner practices which can add quality to the firm," he said.

Mr Andrews said: "Our growing commercial department, underpinned by our well-established litigation teams, gives us every reason to be optimistic."

The firms roots trace back to 1886, when Theophilis Rowland established his practice in Spring gardens. Today, Rowlands has nine equity partners and 130 staff.

Article originally published in the Manchester Evening News, 17th June 2008

From today, 1st May 2008 Local Authorities now have to pay thousands of pounds in Court fees to issue proceedings relating to children in their care.

Previously the fees for issuing care proceedings in relation to vulnerable children were in the low hundreds.

Local Authorities across the country are concerned that they have not been given sufficient funds from Central Government and as a result will not be in a financial position to issue as many sets of proceedings.

This could lead to vulnerable children remaining in danger and not being taken into care by the local Authority.

These children could be in positions where they are being physical, sexually or emotionally abused by their parents or carers.

It is a real concern and the judiciary amongst other bodies have voiced their strong views on the matter.

Lawyers in Scotland are set to take industrial action in a row over government proposals to reform the legal aid system.

The Glasgow Bar Association, which has the largest representation of criminal lawyers in Scotland, voted to take action on a range of issues.

However, its main grievance concerned the revised levels of legal aid, which will effectively mean a cut in the payments its members receive.

It is still unclear what action the association is to take, although it has ruled out a strike, a move that can put solicitors in breach of Law Society guidelines.

But the association said that its action was likely to cause chaos within the courts.

The Law Society of Scotland warned that the reforms, which were announced earlier in the month, could force the closure of hundreds of practices, and may also lead to miscarriages of justice.

President of the Glasgow Bar Association, Sara Matheson, said that the association was disappointed at having to consider a vote for action but felt the issue was very important and that this was the time when it had to take a stand.

She warned that the level of pay was now such that lawyers would go elsewhere, which could lead to a criminal justice nightmare instigated by the Scottish Government.

Conveyancers are seeing fewer approaches from first-time buyers amid tightening credit conditions, increasing mortgage repayments and fears of a house price meltdown.

And now news that mortgage lending has fallen by 17% since the same period last year is the latest evidence that the housing bubble has finally burst.

The Council of Mortgage Lenders (CML) has released its provisional estimates for March, which show that lenders dished out a total of £26.3 billion in new home loans and remortgages compared with £31.7 billion for the same month last year.

Leading investment institutions are warning that the bloated UK housing market would slump by at least 10% in the next two years, with up to one in ten homeowners slipping into negative equity.

The weakening housing market is also hitting housebuilders – with the UK’s largest, Taylor Wimpey, reporting a 26% drop in orders for new homes.

Despite Bank of England attempts to prop up the housing market with base rate cuts and plans to stimulate lending between banks, lenders are still bumping up rates on some of their mortgages.

Chief UK and European economist at Global Insight, Howard Archer, said that the low level of mortgage activity was down lower demand for housing, fewer and more expensive mortgages and, a particular problem for first-time buyers, higher deposit levels.

The Prime Minister has called on banks to pass on interest rate cuts to homeowners with mortgages in a bid to ease the pinch of the credit crunch.

Gordon Brown made the comments in a Sunday newspaper after the Bank of England cut the interest rate by 0.25%, taking the rate to 5% last week.

It is the third interest rate cut since December but some banks seem to be resisting passing on the full reductions and Mr Brown said he is worried that this is having a damaging effect on the already fragile housing market.

In an effort to resolve the situation, Chancellor Alistair Darling is said to be meeting with lenders to discuss new measures to ensure those lower interest rates are passed on to mortgage holders.

As part of his piece in the News of the World, Brown also said that banks should be honest about bad debts because the lending squeeze was making it harder for them to raise funds on financial markets.

He said that if the world's largest banks could come together quickly and agree as a group to come clean about the potential bad debts they face it could restore confidence to the markets.

Nicola Reeves, Conveyancing Executive at Rowlands, commented "From a personal point of view, as a home owner, a cut in the base rate was appreciated and would have been more so had lenders passed the cut to their borrowers. From a more professional and business point of view this would assist the property market by making mortgages more affordable to our existing and future clients."

Tesco is taking The Guardian to law, accusing the newspaper of libel and malicious falsehood in articles about its tax affairs.

The supermarket giant says that The Guardian had wrongly accused it of concocting a tax structure, primarily involving offshore venture partnerships, designed to avoid paying corporation tax to the tune of up to £1bn on UK property sales.

Tesco defended its actions, describing them as a legitimate way of achieving tax savings.

The supermarket said it was not uncommon to use offshore companies for the purpose of joint ventures with third parties.

In fact, it added, Guardian Media Group had itself announced an offshore structure, as reported in The Guardian last month.

The Guardian hit back by saying that its articles were in the context of a series of articles on taxation issues in a globalised world, which clearly raised serious matters of public interest in relation to tax avoidance.

The paper said that it had never claimed Tesco had behaved illegally, but accused the supermarket of bullying tactics by deliberately seeking to chill public debate on the issue.

The Guardian said it had offered meetings to discuss the allegations, but the offer had been rejected.

Instead, it added, Tesco had taken the extraordinary step of suing for libel in a clear attempt to close down the debate.

William O'Neill, Partner at Rowlands, commented "Reputation is so important to a business. It has to be protected. This is why defamation, whether an individual or company, has to be taken very seriously."

 

Rowlands can advise both commercial and private clients in the area of libel and defamation and in a wide range of legal matters. Contact us for further information.

The Conservatives have renewed their call to scrap the controversial home information packs (HIPs), branding them as a bureaucratic farce and a complete waste of time.

The packs were intended to speed up the house-buying process and reduce the number of abortive sales by providing the buyer with essential details about the property.

However, their introduction had been beset by delays and reduced requirements, with the packs finally becoming mandatory for most residential properties in December.

The Conservative Party has continually voiced its opposition to the packs and vowed to axe the legislation should the party be elected.

Shadow housing minister, Grant Shapps, said everyone involved recognised that HIPs had failed in every aspect.

This latest attack follows recent criticism by the National Association of Estate Agents (NAEA).

The NAEA pointed to research conducted during the HIP area trials, which found that 41% of buyers actually felt HIPs were making the purchasing mechanism more difficult, and that only 20% saw the packs as speeding up the buying process.

Consumer magazine Which? also highlighted the dramatic variation in the cost, saying that it had obtained quotes for HIPs ranging from £234 to £534, depending on type and location of property.

Carl Chapman, Partner at Rowlands commented "HIPs appear to have had no discernable effect on the conveyancing process other than a shift of search costs to the Seller. In my experience estate agents have not been asked to produce them for inspection and the Buyers have not availed themselves of the information, leaving the legalities to their solicitors as before."

 

For professional advice in relation to HIPs or for a quotation on your Sale or Purchase, please contact Rowlands Residential Conveyancing Department.

Rowlands has promoted Jenny Jones and Amanda Rowlands to salaried partners, and Latham Parry to associate solicitor.

Jones, who qualified at the firm, specialises in probate law in the private client department; Rowlands, who is no relation to the firms 19th Century founder, joined the firm in 2000, specialises in personal injury law; and Parry, who joined the firm as a trainee in 2002, specialises in personal injury and employment.

Jon Andrews, joint managing partner of Rowlands, said in a statement: “We are delighted to be able to recognise the existing talent in the firm with these appointments. These three talented young solicitors are already a credit to the firm and will be invaluable additions to the senior roles."

Spanish holiday homes could cost families thousands because they are failing to heed Spanish inheritance law, according to foreign property expert, Maria Prieto of Rowlands.

Spanish law is much stricter and very different from UK law, dictating that on death a certain proportion of the person’s estate must be left to his wife and children. Therefore children have an automatic right to part of the estate on the death of their parents, regardless of whether they are expressly mentioned in their Will. Unlike UK law, there is also no automatic transfer to a surviving partner, while tax on any inheritance is payable by the beneficiary and not the executors, as in the UK.

Maria Prieto, foreign property specialist at Rowlands, explains: “If you do not have a Spanish Will to dispose of your Spanish Assets, your heirs will be involved in an expensive and slow process to legalise and translate all the English Probate documentation relating to your English Will which will have to be submitted to the Spanish Authorities”

“If you die intestate, there will be even more complications. In principle, English Law will apply, but the English Law states that for the properties situated abroad the determination of Legal Heirs will be according to the Laws of the Country where the assets are situated, so this will mean that Spanish Law will apply. If you decide to sign a Spanish Will, Spanish Law accepts that English law will apply to the disposition of your estate and you will have complete freedom to dispose of your estate without restriction.”

Prieto adds: “Spanish Wills can also save a person’s heirs administrative costs, as well as possible disputes over their Spanish estate.”

Rowlands has been named as one of the top corporate law firms in Manchester according to the influential Crains Manchester Business.

Senior Partner Aidan Carr commented "This is a very edifying endorsement of our corporate law department endorsing the partnership's decision to expand our corporate/commercial base. We will hopefully improve on this in 2008 as we also expand our private client services."

You can download the Crains ranking here.

Rowlands Solicitors has led one of this year’s biggest pharmacy deals, advising PCT Healthcare on its £80 million disposal to Co-op.

Formed in 2001, PCT Healthcare owned 99 outlets throughout the North, trading as Tims & Parker or Peak Pharmacy. The company sold 52 of these stores in the deal but will continue to operate 47. It employs 400 staff and has an annual turnover of £51 million. Founders Andy Parker, Geoff Tims and Peter Cattee, will continue to manage PCT.

It was a multi-discipline deal for Rowlands. Partner Derek Sands led the transaction, assisted by Paul Matthews. Partner Philip Bellamy dealt with all property aspects of the deal, assisted by Michael Stewart and Pippa Billingham. William O’Neill advised on all employment issues.

Sands commented:

"PCT has achieved incredible growth since it was founded only six years ago, led by a strong management team. The deal with the Co-op will allow the Group to continue to grow and indeed PCT bought another pharmacy in Manchester on the very same day that the deal with the Co-op was finalised.

This is the second major pharmacy deal Rowlands has advised on this year. We have also been involved in a number of smaller acquisitions in the sector. This deal confirms our position as leading experts in the field and demonstrates the firm’s ability to deal with substantial transactions, by bringing together a team from different disciplines within the practice."

Rowlands has also acted for number of pharmacy consortia in the North West, advising the members of the consortia as independent lawyers.

You can view our range of Commercial Services or contact us for further information.

Rowlands was proud to sponsor the Independent Schools Football Association Golden Jubilee "Sixes" hosted by St Bede's College, who coincidentally, after some exciting matches, turned out eventual winners of the trophy.

 

 

Aidan Carr, Senior Partner at Rowlands commented

"as a firm we have been involved in sponsoring sporting events over many years. This is because we believe that the qualities required to play sport at any level are also the qualities we look for in our lawyers - teamwork, committment, ability and more often than not perspiration and inspiration! We were particularly delighted that Sir Alex Ferguson also supported the event, taking time out from an extremely busy professional schedule. It was obvious that everyone appreciated his presence there.

As a Governor of St Bede's I was particularly delighted to see the College progress to the final and in a very exciting game, overcome rivals Charterhouse."

Rowlands has continued its involvement with the Manchester Evening News Property Awards by sponsoring the event for the fourth successive year. Rowlands has a substantial presence in both residential and commercial property throughtout the region and its support for the event is consistent with its committment for developing and expanding its legal services to everyone involved in the property sector in the North West and indeed beyond.

Philip Bellamy, partner at Rowlands, presented the prize for Best Family Home and prefaced the award with the following comment:

"I can’t wait to tell you how delighted we are at Rowlands to sponsor these awards once again, to renew our link with the region’s most prominent publication, the Manchester Evening News; and to be part of a truly magnificent occasion.

This event is a celebration of local achievement. It is a fitting tribute to the vision, imagination, ingenuity and perseverance of builders, developers and entrepreneurs of this area. Daring pioneers, they have contributed so much to the enhancement of our landscape and the transformation of our previously unfashionable localities. May they reap the rewards of their efforts and their bold investment.

For a local law firm it is a wonderful opportunity to bestow a little praise upon our own developer clients. It is a privilege to work with them as they meet the challenges of their trade - shortage of suitable sites, moratoriums, planning obligations, affordable housing ratios, carbon reduction and the code for sustainable homes, not to mention restrictive covenants - a whole host of issues to tackle against a background of tightening margins in competitive market conditions. Their success is so richly deserved.

During our four year association with these awards, the calibre of the entries has grown progressively higher. We have seen some great things.

The first award my firm is presenting tonight is in the best family home category. We have seen three great examples of cleverly designed modern family homes – let’s find out the winner. "

Manchester City has always been there or thereabouts as one of those football clubs that provoke a smile of sympathy rather than a snarl of envy. Despite a venerable history, in recent years City have threatened to do something great, only to flatter to deceive. And then, of course, there is always Manchester’s other team, those pesky Red Devils in whose shadow the Blues have been consigned to live a half-life, one of drama, humour, bathos and pathos, but not a lot of silverware.

Philip Bellamy, the head of property for Manchester law firm Rowlands LLP, knows all about the peculiar fortitude required to be a Manchester City fan. Indeed, the 60-year-old – for 10 years Rowlands’ senior partner – might just qualify as the club’s most ardent supporter. This is a man who has missed just one league game in the last three seasons, who’s barely been absent from the terraces at all for the past 25 years, and whose colleagues, just after he joined the firm in the wake of City’s 1969 1-0 FA Cup victory over Leicester City, decorated his tea mug with sky blue ribbons on the Monday morning following the win.

“I fell in love with the club when I was seven,” says Bellamy, whose father was a Derby County supporter. The old adage that sons follow their father’s teams was turned on its head by the young Bellamy, who went on to convert his father to City, as well as the rest of his family. Indeed, Bellamy even met his wife, Amanda, at Maine Road. “She’s almost as fanatical as me,” he says.

The pair had brief cause to rue their mutual devotion to City 15 minutes into a flight from Southampton airport. Bellamy takes up the story: “There were 15 of us on board a small plane, including Amanda. We’d travelled down to see City play Portsmouth, in what turned out to be David Seaman’s last game of professional football. Despite being 2-1 up at half time, we went on to lose 4-2.” Classic City, I suggest. Bellamy chuckles, but what happened next was no laughing matter.

“A short while after taking off from Southampton airport the plane began to lose height. We could smell burning and it soon became apparent that we had a defective engine. It was very disconcerting for me because I could see into the cabin, where the crew was flicking through a manual.” Happily, all 15 passengers – including the Manchester City board – lived to tell the tale. “The Captain was magnificent. The procedure he followed was to shut down the engine, and luckily we were at the requisite height for him to do this.” Bellamy says that the plane was diverted to Farnborough airport, and that when it landed “there was an almighty cheer.”

So, too, shortly thereafter, a large bar bill. The fortunate 15 were taken to a local pub and ran up a tab of £547.50 by way of stress relief. “The club picked up the bill,” says Bellamy, who himself once entertained ideas of joining the club at board level. However, he opted to retain his fan’s eye view, once which has seen no little drama at Maine Raod over the years and some exceptional footballers. “Bert Trautman, Colin Bell and Georgi Kinkladzi were the best I’ve seen,” says Bellamy.

Bellamy confesses that for some time he was a tortured soul on account of Manchester United’s seemingly exclusive rights to success. When United won the 1969 European Cup Final against Benfica, he confesses that he hid away to avoid knowing anything of the team’s heroics. By the time United had replicated the feat by winning the Champions League in Barcelona in 1999, he was better adjusted. “The golden era of life under Joe Mercer and Malcom Allison changed everything. For six years we went to Old Trafford and beat United on the trot. I almost felt sorry for them.”

Many neutrals felt sorry for the likes of Bellamy when Sven-Goran Eriksson was appointed Manchester City’s manager at the beginning of this season. “I didn’t exactly do cartwheels,” admits Bellamy, who, rather prophetically, posed in 2002 next to the waxwork of Eriksson at Madame Tussauds. But the long-suffering City stalwart has been impressed by the Swede. “I like the way he’s got the team playing passing football and he’s been very impressive so far.”

Should Eriksson continue to deliver the goods, Bellamy might just arrive at work at the end of the season to find his tea mug bedecked in sky blue ribbons. Then again, City might, as so often, throw it all away. In a sense, to the true fan, it matters not. For as Bellamy says: “It’s a relaxation, a release from the rigours of the day job. There’s an appealing madness about the club that’s irresistible.”

 

Article originally published on the Times web site 8th October 2007

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Derek Sands, partner and head of foreign property at Rowlands Solicitors, advises that people need to seek professional advice in the early stages of buying overseas property to avoid complications later down the line.

He says: “Quite often we find that people get romanced by the idea of having a holiday home in their favourite resort and go off buying property without seeking legal advice. Then, once they encounter contractual problems with builders not completing the project to specification or on time, they come calling. It is much more difficult to solve problems once contracts have been signed so its vital that these are addressed in the early stages.”

It’s also important for buyers to research the market before diving in. Sands comments: “First of all buyers need to be clear on whether they are buying property as an investment or as a holiday home. They also need to have a good knowledge of the local market before parting with cash. Investors should steer clear of Spain where the market is flat and saturated and look to emerging markets such as Cape Verde and the Margarita Islands, which are becoming increasingly popular and have attracted larger developers. If the property is to only serve as a holiday home, growth potential and market performance are not as important but should still be considered. Although investment in Spain is not likely to make as much money in the future as it has in the past, if you want to buy in Spain for other reasons ie non investment reasons then there is no reason why you should not do so after of course taking proper advice”.

SIPPs
Since Gordon Brown applied SIPPs to commercial property last year, Sands says that this method of investment has become very popular.

“A large proportion of people choose to invest in foreign property via a self invested personal pension (SIPP). It is an effective way of getting on the foreign property ladder but people need to be aware that the property purchased becomes an asset of the pension fund and so the value of it will be used to provide retirement benefits. As trustee of the SIPP, you have responsibility to meet the health and safety regulations and the other obligations that fall upon any owner of the property which can differ depending on the country. This means that the property must be properly managed otherwise your SIPP could be at risk,” says Sands.

“At one time we never advised clients to buy properties through the medium of a company unless the price was substantial ie at least 500,000 euros. There were also potential tax disadvantages where the user of the property could be charged tax based on the open market rent. However the law changed this year and providing the foreign residential property is the only asset of the company then no tax charge will arise”.

Fractional Ownership
Fractional ownership is becoming more popular with people wanting to invest overseas.

Sands comments: “Fractional ownership is sharing ownership of a property, much the same as time share, but the difference is that you are buying into equity in the property. It involves the title deed being divided into fractions ranging from a quarter to a twelfth and then people stay at the property for the corresponding fraction of the year. A management company usually runs the property and each fractional owner contributes to an annual maintenance fund, but make sure this is fixed from the outset.

“It is a good idea to enter factional ownership of a property via a developer, as opposed to individuals who you can easily fall out with. Make sure that the management company owns the property and you are buying it from them and thoroughly check the company’s policy, particularly concerning booking holiday dates and inviting friends and family.”

Equity release
“Equity release has a bad name in the UK because it wasn’t regulated for years and people didn’t get a good deal,” says Sands.

“It should mainly be for those who have considerable equity in their UK property. As a general rule you will not be able to release all the equity in your property and bear in mind that if property values fall, you could find yourself in a negative equity situation.

“It is important to consider the implications of interest rate rises and potential property price decline as your home will be at risk if you are unable to maintain any loan secured on it.”

“The above comments apply particularly to Equity release on UK properties. The same disadvantages may not be present if you wish to borrow money against the security of your foreign property. The disadvantage of losing your home on death would not apply. There is still the same problem of the loan increasing because of rolled up interest rates. Furthermore, there are no companies yet which will lend on an Equity release basis against foreign property although it is easy to obtain a loan on a pre owned property”.

Bosses at Manchester solicitors have vowed to make the firm 'a force to be reckoned with' after a period of upheaval involving major changes at the top and a cull which saw more than one in 10 staff take voluntary redundancy.

Rowlands has shut its satellite offices in Droylsden and Sale and brought those operations into the firm's city centre headquarters in York Street.

A total of 17 staff took severance, leaving the firm with 115 employees in York Street and a branch in Swinton.

Senior partner Philip Bellamy has stood down to focus on commercial property work, and Aidan Carr, 52, has succeeded him. Managing partner Ron Taylor has left the firm after 36 years, and his role has been taken jointly by Jon Andrews, 41, and Tony Broadley, 46.

Mr Carr and Mr Andrews joined the practice as trainees in 1977 and 1990 respectively, while Mr Broadley was a barrister before he arrived in 1988.

Rowlands' specialist areas include commercial property, private client and personal injury, but Mr Andrews said the firm would look to add departments.

Practice
"Our strategy is to create a very strong city centre practice which is respected and has growing and sustainable profits. We took the view that we needed to build our presence here. We have got tremendous potential and I think we can be a force to be reckoned with," he said.

"We are looking to start punching above our weight."

Established in 1886, Rowlands has 10 equity partners. Fee income to April 30 was £5.35m and Mr Andrews said the firm aimed to reach £6m next year. "We have been through a period of tremendous change, but we have had a very good first quarter of the new financial year against a background of major restructuring," he added.

The redundancies helped reduce overheads during a period in which the firm is spending a total of £400,000 on IT improvements and refurbishments to its head office.

Mr Andrews said the fact that he and Mr Carr had risen through the ranks showed Rowlands' commitment to nurturing its own talent. "We are very keen to progress this - we like to develop people and play to their strengths."

Mr Carr said Rowlands was 'entering an exciting phase in the firm's development'.

Although a novelty, having joint managing partners was crucial to the firm's future, as the overhaul of operations was too big a job for one person, said Mr Andrews.

The high cost of borrowing following a series of interest rate rises, combined with fears of further hikes is stopping small businesses in the North West from achieving their growth plans, according to commercial law firm, Rowlands.

Interest rates currently stand at 5.75 per cent and analysts are predicting further rises in the months to come. According to Paul Matthews, these further increases could restrict the growth of smaller companies, while pushing those with large loans or overdrafts into administration.

He comments: “Rate rises discourages investment particularly among the smaller business community which tends to work on tight margins.

“It is much more difficult for smaller firms to absorb short-term fluctuations in costs. To protect their businesses, management should investigate fixed-rate loan options, which will protect them given the current economic uncertainty and high cost of borrowing.

Paul adds: “It is important to remember that the economy as a whole will be affected if small businesses fail to achieve their ambitions because of increasing interest rates.”

Three partners who all started their careers as solicitors at Rowlands have been appointed to spearhead the future development of the Manchester firm.

Jon Andrews is to take on the position of joint Managing Partner alongside Tony Broadley. Jon became a trainee solicitor with Rowlands in 1990 and rose through the ranks, becoming salaried partner in 1998 and gaining equity status in 2000, while Tony joined the firm in 1988 as a solicitor, following a successful career at the Bar. In addition to the joint appointments, Aidan Carr has been named Senior Partner. He also trained at Rowlands, becoming equity partner in 1986 and is currently head of the firm’s regulatory and criminal litigation department.

Jon and Tony replace Ronald Taylor as Managing Partner who is leaving Rowlands after 36 years. He also began his career as a trainee at the firm. Aidan replaces Philip Bellamy as senior partner who will remain with Rowlands and will concentrate on client work.

Jon Andrews comments: “Rowlands is long established and has some outstanding individuals who are well recognised in their specialist fields. Many of the partners were trainees with the firm, which is a reflection of our commitment to developing people and providing a working environment in which individuals can grow and progress- we have also been joined by many talented lawyers over the years.

Tony Broadley said: “While we have all been at Rowlands since the beginning of our careers as solicitors we all have a modern forward thinking mentality. The three of us are forming the future vision of the firm and moving it forward by increasing our profitable commercial, private client and litigation departments.”

Established in 1886, Rowlands has developed a solid reputation across the North West. It has a strong commercial and private client base and includes amongst its portfolio niche areas having established a specialist foreign property team with lawyers fluent in Spanish and Portuguese, whilst part of its commercial practice specialises in the acquisition and disposal of pharmacies. In addition to this, Rowlands has a thriving personal injury practice and was a founding member of the National consortium InjuryLawyers4U. In recent years the firm has forged strong links with McKeever Rowan, solicitors in Dublin.

Aidan Carr said: “We are entering an exciting phase in the firm’s development and all staff have bought into the future vision for the firm and are committed to delivering our growth strategy.

We are not changing our approach to business or our core values. Our aim is to continue to retain quality people and exceed client expectations in terms of service and results. People like working with us because we are friendly and approachable and get the job done.”

Employees in UK call centres are experiencing an increase in severe ear infections and other hearing related problems as a result of unhygienic headsets according to Jon Andrews, a litigation partner at Manchester based law firm, Rowlands Solicitors.

Having witnessed a noticeable growth in such claims, he comments: “Call handlers wear a headset all day, every day and there is an increased risk of ear irritation and infection because headsets are worn so intensively. With approximately two per cent of the UK workforce working in a call centre environment, steps must be taken to prevent these infections, which very often lead to serious hearing problems. In many cases, some employees may experience problems but not realise where it originates.”

Call centres need to be more vigilant and must do more in order to avoid the risks associated with unhygienic headsets”.

Andrews provided the following simple recommendations to assist contact centre managers:

• Avoid using a ‘pool’ of headsets
• Assign each worker with their own personal headset
• Ensure that there is safe and secure storage available out of hours
• Keep headsets healthy with regular maintenance
• Replace ear cushion (both leatherette and form) and windshield every three months
• Implement an effective internal cleansing and hygiene programme

In addition, every employer must comply with the Health & Safety at Work Act, Provision and Use of Working Regulations and the Health & Safety Executive guidelines. This can be a minefield so Andrews strongly recommends attending any or to be aware Health & Safety Executive education awareness programmes in order to protect the well being of headset operators.

Andrews adds: “Many tens of thousands of workers suffer workplace injuries each year and many of these are avoidable should a number of steps be taken. Today’s headset operators are striving for high targets and it is not much to expect their employers to adopt satisfactory safety rules and measures.