May 2017 – Newsletter

More changes are coming –

The Good News is – Business to Business debt recovery will not be affected

The Good News is – For Businesses recovering debts from Individuals / Sole Traders, Lane and Co is working for you 

In October a new Pre – Action Protocol comes into force (This updated Pre Action Protocol will apply only to businesses claiming payment of a debt from an individual (including sole trader) – Business to Business Debt Recovery will not be affected.).

The aims of the new Protocol are to:-
a)    encourage early engagement and communication between the parties, including early exchange of sufficient information about the matter to help clarify whether there are any issues in dispute;

(b)    enable the parties to resolve the matter without the need to start court proceedings, including agreeing a reasonable repayment plan or considering using an Alternative Dispute Resolution (ADR) procedure;

(c)    encourage the parties to act in a reasonable and proportionate manner in all dealings with one another (for example, avoiding running up costs which do not bear a reasonable relationship to the sums in issue);

(d)    support the efficient management of proceedings that cannot be avoided.

There will be a change to the way we deal with ‘Consumer Debts’ but do not worry, Lane and Co is working to ensure there is as little disruption to our Clients as possible and we will keep you updated on the new processes in the following Newsletters.

Big enough to cope. Small enough to care

Residential Property Landlords – Be Aware of the Risk of Periodic Tenancies

If your tenant wants to stay in your property at the end of their contract and you are happy for them to remain, you have two options.

1. You can issue them with a new Assured Shorthold Tenancy (AST); or
2. You can allow their original tenancy to become ‘periodic’ – roll on.

If you don’t give your tenant notice to leave at the end of their contract and you don’t issue a new AST, they will be allowed to stay in the property and their tenancy will automatically become ‘periodic’.

Under a periodic tenancy, all the terms and conditions of the original contract will continue to apply, but the tenant can end the contract at any point by giving you a minimum of one month’s notice. Once a tenancy has become periodic, you must give the tenant at least two months’s written notice if you want to repossess the property.

Issue your tenants with a new AST or allow them to roll onto a periodic contract?

A periodic tenancy can be flexible, which allows landlords to repossess the property by simply giving the tenant two months’ notice, and it also avoids the hassle of re-issuing any paperwork.

However, there are risks associated with periodic tenancies.

1. The tenant could leave at any time, giving you only one months’ notice. If you issue a new AST, you will have the reassurance of locking your tenant into another fixed period and you won’t have the uncertainty of not knowing when the tenancy might end.
2. The original contract might eventually become obsolete due to new Landlord and Tenant laws, such as those covering deposit protection. If a contract is out of date and doesn’t cover all legal requirements, it’s useless and might lead to the tenant having a financial claim against you.
3. Under a statutory periodic tenancy the landlord, not the tenant, is responsible for council tax on the property if the tenant leaves during their notice period. This can be avoided by creating a ‘contractual periodic tenancy’, either by stating in the original contract that the tenancy will become a ‘contractual periodic tenancy’ at the end of the original period, or by issuing a new contractual periodic agreement.

Whilst you might prefer the idea of a periodic tenancy because it allows you the option of raising the rent at any given point in the future (by giving the tenant sufficient notice, but don’t do this more than once every 12 months). However, the best time to discuss rent increases is when you issue a new AST.

If you do decide to give another AST, issue a new one as Landlord and Tenant law is constantly changing and your old contract may no longer cover all legal requirements.

Remember that if you issue a new AST you will need to re-protect any deposit you took at the start of the tenancy. If the tenancy becomes periodic, you must inform the deposit protection scheme but you won’t need to re-issue the prescribed information to the tenant.

Don’t forget if you issue a new AST or allow the tenancy to become periodic, you will also have to check that any tenants who have a time-limited right to live in the UK can remain – check up-to-date passports and visas.

Please contact a member of our Property Litigation team if you have any queries on 01922 700730 or email post@laneandcosolicitors.com.

In the news – You should read this!!!

Debt Collection Agencies – v – Solicitors

Debt Recovery and the associated Litigation does need to be done by the professionals…

We are sure you wouldn’t have liked to be a client of this Debt Collection Agency   UK Debt Collection News.

The article states

“Yet, tales of scheme fees being paid and collected monies being unlawfully withheld became an all too familiar story yet amazingly they still managed to attract companies with their promises of a fabulous ‘No Win – No Fee’ debt collection service.

The No win No fee debt collection agency service was promised AFTER a lifetime membership fee was paid upfront. Many complainants from various business and complaint forums complained that monies were collected and never passed on.

Earlier this month, Final Demand entered into a voluntary liquidation with a stack of unpaid County Court Judgments. Judgments from suppliers and clients alike eventually took their toll.”

Even HMRC have significantly reduced their use of Debt Collection Agencies following –

“much public criticism over its initial proposed use of third party debt collection agencies with many warning that overly aggressive practices may be used in the pursuit of outstanding debts.”

There are many jokes made about Solicitors…..

Q: What’s the difference between an accountant and a lawyer?

A: Accountants know they’re boring.

Get to know us you may be surprised

Q: How many lawyer jokes are there?

A: Only three. The rest are true stories.

There is no answer to that one!!!

The list can go on and on and on……

HOWEVER there are numerous reasons for utilising Solicitors, the main one is we are highly regulated by the Solicitors Regulation Authority, the ten Principles we must abide by at all times are:

1. uphold the rule of law and the proper administration of justice;
2. act with integrity;
3. not allow your independence to be compromised;
4. act in the best interests of each client;
5. provide a proper standard of service to your clients;
6. behave in a way that maintains the trust the public places in you and in the provision of legal services;
7. comply with your legal and regulatory obligations and deal with your regulators and ombudsmen in an open, timely and co-operative manner;
8. run your business or carry out your role in the business effectively and in accordance with proper governance and sound financial and risk management principles;
9. run your business or carry out your role in the business in a way that encourages equality of opportunity and respect for diversity; and
10. protect client money and assets.

Wouldn’t you rather utilise Highly Regulated Professionals ?

Leave things in our Capable Hands

 Welcome to the next Neylan . .

Su gave birth to Kai Ryker Neylan on 23rd March 2017 (a whopping 8lbs). A baby brother for Brody.

Both mum and baby are doing well.

RELIANCE ON INFORMATION POSTED

All content posted on the Lane and Co website is intended for information purposes only and does not represent legal advice on which reliance should be placed. Visitors to the website are hereby placed under notice that they should take appropriate steps to verify such information. No visitor should act or refrain from acting on the information contained in any article without first verifying the information and as necessary obtaining legal and/or professional advice