In this blog, we’ll unravel the intricacies of property co-ownership, specifically the difference between ‘Joint Tenancy’ or ‘Tenants in Common’, and how these choices can profoundly affect your ownership experience. Did you know that there are significant legal and financial differences between both?

How does a Joint Tenancy work?

Property ownership can be shared in two different ways – ‘Joint Ownership’ and ‘Tenants in Common’.

Property can be purchased by any kind of pairing, such as spouses or business partners. However, when this purchase is made, it’s important that the legal title under which the property is held, is clear. This is because future contingencies must be considered, and these will differ between circumstances (like whether the joint owners are personally or professionally related).

Joint Ownership/Joint Tenancy

‘Joint Ownership’, which is also known as ‘Joint Tenancy’, considers both partners the legal owner. However, when one partner passes away, the property remains with the surviving party. This is because the deceased’s ‘interest’ disappears, and nothing needs to done other than to record the death. The property cannot be inherited by the deceased’s relatives because the property still has a living legal owner, this being the co-owner that survived them.

As joint tenants you have an undivided share of the whole property. Up to four people can own the same property. (you cannot have more than four parties registered at the Land Registry).

Tenancy in Common

‘Tenancy in Common’ considers the property to be split between its owners as separate percentages known as shares. These shares do not have to be equal, which means one party could have a much higher share than the other. Because each party is only legally entitled to their own percentage, that share will be inherited by next of kin. Thus, the surviving co-owner of the property will not get this share by default.

For ‘Tenants in Common’ it is sensible and sometimes necessary to document the precise agreement between the owners. This agreement is best recorded in a formal trust deed.

Joint Tenancy versus Tenants In Common

The ideal form of ‘Shared Ownership’ depends on the co-owner’s circumstances and their individual interests.

‘Joint Ownership’ has an appeal for being convenient and simple, leaving minimal paperwork in the event of a death when it comes to who now owns the property. ‘Joint Ownership’ may be preferable if a property owner does not wish for their share to be inherited by their next of kin and would prefer the property to remain with their co-owner. This is often why married couples are in ‘Joint Ownership’ so that the property remains within the marriage by law.

‘Tenancy in Common’ is usually recommended by solicitors because it gives each co-owner more agency when it comes to their share. When a property is split unevenly for example, the party with the larger share may not wish for all of it to go to their co-owner. This is often the case in circumstances such as unmarried couples and business partners where events can change. For example, a business property co-owner may wish for their share to go to their family instead of their partner.

What happens if a shared property owner passes away?

In the event of a shared property owner dying, ‘Tenants in Common’ is recommended if they would not wish for their share to automatically go to their co-owner. A remarried parent may wish to bequeath their share to children from their previous marriage and not their new spouse.

‘Tenants in Common’ may also reduce potential inheritance liabilities, as a party will have greater autonomy over what would be inherited by their next of kin and, as a result, more control over the consequential inheritance tax.

Overall, a good rule of thumb for choosing ‘Tenants in Common’ is when the co-owners will be making unequal contributions toward the property, or there is no positive reason to consider ‘Joint Ownership’.

Thomas and Thomas Solicitors understands that buying or selling a property can be one of the most important financial commitments you will make in your lifetime, and we are here to ensure that the process is handled seamlessly. Our solicitors will guide you through every step of the process.

A Lasting Power of Attorney (LPA) is the most common form of Power of Attorney, granting someone legal permission to make financial and medical decisions on your behalf should you lose capacity to manage these affairs yourself.

It may be an illness or an accident which leaves you incapable of making critical and everyday decisions. An LPA grants that designated individual Power of Attorney (the ‘attorney’) to act on your behalf (‘the donor’) on several matters, from property and finance through to health, depending on whether you hold a Health & Welfare or a Property & Financial Affairs LPA.

The types of Lasting Power of Attorney

A Health & Welfare LPA can only be used once you are unable to make your own decisions and gives your attorney the power to decide on matters regarding:

• your daily routine (such as washing, dressing, eating)
• medical care
• moving into a care home
• life-sustaining medical treatment

Whereas a property and financial affairs LPA can be used immediately upon registration with the Office of the Public Guardian or held on file should you lose capacity. This document gives your attorney the power to decide on aspects of your money and property, including:

• managing bank or building society accounts
• paying bills
• collecting a pension or benefits
• if necessary, selling your home.

When does my Lasting Power of Attorney end?

Neither LPAs expire unless certain circumstances change. Once registered, both LPAs remain valid until the donor passes away, the legal document is ended either voluntarily, or because the attorney is no longer able to act on behalf of the donor.

There are several reasons why an attorney may be forced to step down from the role: –

• If the donor ‘revokes’ it from them.
• The attorney themselves loses mental capacity.
• If the donor’s married or civil partner acts as their attorney and they separate, then the LPA will end, unless it was specified in the document that a divorce would not end the attorneyship.
• If one of two joint attorneys stops acting as an LPA, the remaining attorney cannot continue to act alone unless the document permits it.
• A Property & Financial Affairs attorney who becomes bankrupt or subject to a debt relief order must also stop acting as an LPA for the donor.

Should a Lasting Power of Attorney be ended for any of the reasons mentioned above, the donor can amend it by contacting the Office of the Public Guardian. However, it is recommended to write up a new document anytime changes are desired because amended documents can become invalid.

Registration for a Lasting Power of Attorney

In England and Wales, the registration for a Lasting Power of Attorney is £82. This can be paid online (such as through Gov.co.uk) or at any location that offers services for the Office of the Public Guardian. As there are two different kinds of LPA in the UK, they must be purchased individually, which can double the price to £164. If a donor is financially unable to pay the fee, there are support schemes available.

The Office of the Public Guardian’s application forms will contain guidance on the payment and setup process of an LPA’s registration, which can take up to 20 weeks if there are no delays. Hiring a solicitor is not required to register, but their experience may streamline the process.

Who can be a Lasting Power of Attorney?

Anybody can act as a LPA on behalf of a donor so long as they are over the age of 18. However, for a Property & Affairs LPA, the holder chosen cannot be bankrupt. If this occurs, the attorney must stop acting as an LPA.

Four in five UK adults have not registered an LPA, with 77% of these individuals being over the age of 55. Yet the number of LPAs are growing, as according to the Office of the Public Guardian, 848,896 documents were registered in the UK during 2022 – a 20% increase compared to 2021.

How do you end a Lasting Power of Attorney?

As an LPA has no expiration date, the attorney must end the legal arrangement if they no longer wish to fulfil the responsibilities of the role. To disclaim an LPA a notification form must be sent to the donor and the Office of the Public Guardian, as well as details of any replacement attorneys listed in the registered document. If there are no replacements available, then an alternative method to help the donor in their decision-making may be necessary.

If you need help and support on matters concerning LPAs, whether that’s setting up the legal document or to make an amendment to an existing agreement, our team of specialists at Thomas and Thomas Solicitors provide a comprehensive range of services for both types of LPAs. For further support and advice, contact us here.

If you’re facing an employment related legal issue, you’re not alone. We understand that dealing with employment law can be overwhelming, whether you’re the employer or the employee.

Unfair dismissal is a statuary right that is important to understand when an employee is suddenly dismissed. Successful cases that received compensation have been falling since 2010, although in 2021/22, there was a rise of cases that resulted in the employee’s favour. Today, we’ve explained what you need to know about unfair dismissal, and how it can affect you.

What is unfair dismissal?

Employees that have worked at a business for over two years have the right to not be unfairly dismissed. However, employees that have not yet worked at a business for two years may still have this right, as there are exceptions. What falls under ‘unfair dismissal’ must include at least one of the following:

• No fair reason for dismissal
• Not enough reason to justify dismissal
• The employer did not follow fair procedure

Fair dismissal procedure must also follow the Acas Code of Practice on disciplinary and grievance procedures if the dismissal’s reasons involved misconduct or performance capability. While employees are generally protected by the Acas code, every company has its own disciplinary or dismissal process to follow.

There is a limited window of opportunity for an employee to begin the appeal process for an unfair dismissal. This starts from the last day of employment and lasts for three months.

What employers should do if they want to dismiss an employee

An employer must show that there is valid reason for an employee to be dismissed. If there is more than one reason for dismissal, then the principle reason must be valid. The reasons given for an unfair dismissal cannot be based on new discoveries or behaviour after it has already occurred.

However, even if an employer proves that the dismissal is for fair reasons, it is still ultimately up to the court to decide whether the dismissal was fair or not. They will decide if the employer responded reasonably in dismissing the employee, or if a less severe penalty would have been adequate.

If a court believes that no reasonable employer would use the given reason to dismiss an employee, then the dismissal will still be determined as unfair. This decision will be made, factoring in the size and resources of the employer, such as if they are an SME.

Five fair reasons for dismissal

To be considered fair, the reason for dismissal must fall into at least one of the five categories that are set out by the Employee Rights Act 1996. These include;

1. Lack of Capability:
   The employee lacked the qualification or the ability to perform the work that they were employed to do.
2. Genuine redundancy:
   The employee’s role is no longer necessary due to business reasons.
3. Conduct:
   The employee behaved in ways that amount to gross misconduct, including poor attendance, dishonesty, and failure to follow instructions.
4. Contravention of a statutory enactment:
   If an employee is no longer able to perform a key part of their role, like if they are banned for speeding when their day-to-day work involves driving, this is what is known as contravening a statute.
5. Some Other Substantial Reason (SOSR):
   The dismissal follows none of the above reasons. SOSR could include a personal disagreement with the employer or a non-renewal of a fixed-term contract that is specific to certain roles. Every SOSR case will be determined by its own context and facts.

The consequences of unfair dismissal

If a dispute arises regarding an employee’s termination, the involved parties may consider alternative resolutions such as compromise agreements. These may include reinstating the employee in their previous position or re-engaging them in a different role.

Financial compensation may be part of the resolution, taking into account factors like the employee’s age, gross weekly pay, and length of service. If the agreement includes reinstatement and it is not implemented, additional compensation may be required.

It’s essential to note that there are limits on the compensation that can be awarded in cases of dispute resolution, with exceptions for instances related to health and safety or whistleblowing.

Thomas and Thomas Solicitors is a friendly, local law firm that has a unique insight and an inclusive approach to clients with years of experience. With a team of specialists in their specific legal field, the firm offers a range of legal services, including employment law. Get in touch with us today by emailing [email protected] or visiting to find your nearest office.

The UK commercial property rental market is predicted to look strong for at least the next five years. Latest Statista figures forecast growth in rentals between 2023 and 2027 across all sectors from industrial, office to retail, shopping centres and warehouses. Perhaps surprising to some, with the rise in working from home, office space rentals are predicted to be one the highest with a 1.1% increase expected during this period, while industrial real estate rents lead the way with an anticipated 3.3 % per year growth util 2027.

This is all very encouraging however, it is worth noting that whether you’re an experienced commercial landlord or in the process of purchasing your first property to lease, commercial leases are more complex than residential leases. They come in various forms, each with its own set of terms and conditions. Therefore, we’ve outlined below several factors to consider within a commercial property lease that both the landlord and tenant should be aware of.

Basics of a commercial lease

A commercial lease is a legally binding contract made between a business tenant and their landlord. There are usually two parties involved. The ‘lessor’, who is the landlord and owns the property and the ‘lessee’, who is the tenant and is allowed to use the property in exchange for rent.

The lease gives the tenant the right to use the property for commercial activity for the lease’s duration in exchange for regular payment to the landlord. Any agreements made, whether financial or other, should be recorded in writing for future legal reference. If a dispute occurs over the lease, a court will hear evidence, and it usually upholds a written agreement over anything verbal. In addition to this, commercial leases have less government protection than residential leases, as businesses are expected to be able to negotiate for themselves. However, this also means that both the tenant and the landlord have more bargaining power.

The Lease Term

When working with a commercial conveyancing solicitor, consider your lease term, which is the length of time that the tenant has agreed to rent the property. This may differ depending on the agreement made. It should typically stipulate a ‘fixed term’ which is when the lease starts and ends on specific dates however either party can terminate the lease earlier if there is a Break Right in the lease.

Also, attention to detail in the contract is key as the landlord cannot increase the rent or change any terms of the lease unless they reserved the right to do so in the terms of the lease. When the lease term is up the tenant may have the statutory right to renew under the Landlord and Tenant Act 1954 however, a lease can contract out of the Landlord and Tenant Act which means that there is no right to renew. This means that after a fixed lease ends, the landlord may evict their tenant or agree to a month-by-month payment basis for them to stay. Alternatively, a new lease can be signed.

If you have a periodic tenancy then this will continue indefinitely until either the tenant or the landlord gives notice to terminate the lease. At the end of the notice period, the tenant must move out or the landlord can begin eviction proceedings. In a periodic lease, the landlord is usually able to raise the rent and change the lease’s terms so long as notice is given.

Financial Payments

Stipulating in your lease how much will be paid in rent is critical for the security of both the tenant and landlord. Rent can be paid on any date that the landlord and tenant agree on, but it is usually paid monthly or on quarterly days of the financial year. This minimum rent, excluding any additional or operating costs, is known as the ‘base rent’. Commercial leases can also include a rental arrangement known as a ‘percentage lease’, common in shopping centres and similar premises, where the tenant will pay a base rent in addition to a percentage of their gross income.

Some lease types come with specific renting conditions. In an ‘FRI’ lease, the tenant covers the costs of maintenance and repair on the property, as well as insurance (whether insured directly or through the landlord).  A ‘Gross rent’ commercial lease only requires that the tenant pays a base rent while the landlord pays all other expenses, including operation, tax, maintenance, utility and insurance.

Check service charges 

Whether you hold a Gross rent commercial lease or other, ensure to check the lease for any service charges, which is the cost of maintaining and repairing a property that the landlord can charge back to the tenant. Negotiate these within the lease before signing, taking the advice of a commercial conveyancing solicitor, as these expenses can range from things beyond repairs and maintenance to insurance premiums and employing staff such as gardeners and cleaners. Check as there may also be a ‘sinking fund’ in the lease which allows landlords to collect money for any unexpected costs such as roof repairs.

Security Deposit

Finally, consider your security deposit when drawing up a commercial lease. This is a sum of money that the tenant must pay to the landlord at the beginning of a lease, used to cover any property damage or missed rent during their stay. In commercial conveyancing, this sum can be whatever amount the landlord asks for so ensure to negotiate. What remains of this deposit will be returned when the tenant moves out.

If you need help and support on matters concerning a commercial lease, our team of commercial conveyancing solicitors at Thomas and Thomas Solicitors provide a comprehensive range of services. For further support and advice, please contact us here.

Conveyancing is the transfer of property ownership from one party to another, with one buying and the other selling. While buying and selling property may be a simple concept, the process itself can often be more complex.

Between December and January last year there was an 110% increase in people enquiring after a conveyancing solicitor according to Compare My Move. If you’re wondering why, there’s a reason! Conveyancing solicitors work on your behalf to check out everything you need to know about a home – they handle all the necessary legal paperwork and property searches to avoid any unpleasant surprises further down the line.

In this blog we dig a little deeper to guide you through the stages of buying and selling a property and why having a solicitor on your side can bring confidence and peace of mind.

Steps in the process

Pre exchange

Once an estate agent has agreed a price with the buyer, they write to the solicitors of both parties with the details.

The solicitors will then write to their respective clients with the terms of business. At this stage both sellers and buyers will need to provide proof of identity and address to prove it really is you. Plus, proof of funds, to ensure that the sale is not the proceeds of crime. Both steps are to prevent property fraud. The seller of the property will also complete forms to give information about the property such as new windows, an extension or issues such as flooding, as well as make a record of any items that will be left behind in the property.

The seller’s solicitor sends several documents to the buyer’s solicitor, including the draft contract, the copy of deeds, and property forms. The buyer’s solicitor will investigate rights of way and neighbouring land, such as shared drives or back lanes, to check if neighbours have any rights over the property, like the right to use a shared path. The seller will send any enquiries to the buyer through their solicitors to iron out any discrepancies. If the buyer’s solicitor finds any discrepancies in the documentation, they will raise it with the seller’s solicitor to resolve.

The buyer’s solicitor will also conduct three searches into the property site;

• The local search to reveal building work done to the property, like a new chimney.
• The environmental search to uncover key information about the site of the property, like whether it was built on contaminated land.
• The drainage and water search to confirm where the pipes run beneath the property and if the water is connected to the mains.

Upon receipt of the sellers and their solicitors’ enquiries, a report is sent to the buyers via their solicitor explaining the deeds and, paperwork. If the buyers find everything acceptable, they will sign the contract.

Exchange and completion

When a ‘completion date’ (the moving date) is agreed, the solicitors exchange contracts. This is the point of no return – neither party can legally back out of the transaction without repercussion.

Finances are transferred on the moving date, and once the seller’s solicitor confirms they have gone through, the estate agent and property buyers are informed that the keys can be handed over. After completion, the seller’s solicitor pays off any outstanding mortgage as well as the estate agent for their assistance in the property exchange. Finally, the buyer’s solicitor will register the change of ownership with the Land Registry.

And that’s a property transaction complete!

What legal documents do I need to prove who I am?

It’s essential to have your legal documents prepared to make a property transaction as smooth as possible. Your solicitor will give you a list of any that are needed.

To purchase a property, you must provide proof of funds – this is usually a copy of your mortgage offer and evidence of any other funds used to purchase the property. When selling property, there are several more documents required, including:

• Property title deed
• Property information form
• Fittings and contents form
• Management information pack
• Energy performance certificate

As well as any additional documents that are referenced in the property information form.

While this is a significant number of documents to organise and submit on time, solicitors are trained to support in this process. A reliable law firm will ensure that all your responsibilities during a property transaction are met in a timely manner.

One of the most important legal documents involved in transferring property is proof of the buyer’s identity.

Why is proving who I am so important in a property transaction?

Verifying the identity, address and funds of the buyer is necessary to prevent the possibility of fraud. It confirms that the buyer is who they say they are, and that their money to buy the property was not earned through crime.

The verification process protects you and all other parties from being held liable for identity fraud. It requires you to show that you have done everything legally asked of you, including proving that you are who you claim to be. Proving where the funds came from also prevents the risk of money laundering.

As with all legal matters, the key to a smooth property transaction is organisation and the legal guidance of a trusted solicitor. A law firm will help you to confidently fulfil all responsibilities with minimal stress, providing you peace of mind as well as ensuring that you can achieve the best outcome for your goals when buying and selling property.

Thomas and Thomas Solicitors is a friendly, local law firm that has a unique insight and an inclusive approach to clients with years of experience. With a team of specialists in their specific legal field, the firm offers a range of legal services, including property law.

Get in touch with us today by emailing [email protected] or visiting to find your nearest office.

Creating a will is an important milestone in everyone’s life, and is something which everyone should consider, regardless of age. But what is a will and why is it crucial to have one? 

A will is a legal document which outlines how you would like your assets distributed after you pass away. It’s important to have one because if you pass away before creating one, your personal property, possessions and money may not be handled as you wish. This can lead to complex legal disputes between family members and friends as they work out a fair split for the inheritance, adding unnecessary stress during a highly sensitive time. 

To help shine a light on what you need to know about wills, probate, and what can happen if you don’t have a professionally crafted legal will, we’ve sat down with Molly Graham, Solicitor in our wills and probate team, to provide her expert insight into some of the most commonly asked questions surrounding these areas of law. 

Q: What happens if someone dies without a will? 

A: If you die ‘intestate’ – which means without having made a will – the intestacy law will divide your estate equally among your legally recognised relatives. This includes a spouse, civil partner, and/or child(ren).   

However, this may not always be what you desire, and can create tension among each of the respective parties if they feel this equal split is unfair. Additionally, intestacy law does not cover stepchildren, unmarried partners, friends, and charities, meaning that many of those who are close to you may be left with nothing after your passing. 

Q: How does intestacy law affect the distribution of assets? 

A: How intestacy law distributes your estate depends on which family members the inheritance needs to be split between. 

If both a spouse and the children have a claim to the inheritance, it is usually split into two.  One half, including all personal possessions, for your partner, and the other half is divided among your children.  

If you are without a spouse or children, then any other surviving relatives will inherit your assets. This is decided by an order of priority, with closest relatives first, followed by more distant family. If there are no relatives to claim your estate, your assets will go to the Crown.  

Q: What specific challenges arise in administering an estate without a will? 

A: The probate process, which involves the distribution of your estate among beneficiaries, does not vary too much whether a will is present or not. However, without this document in place, you lose all control over how your estate is broken up. For example, a family member who has been a part-time carer throughout the later stages of a parent’s life will receive the same amount of inheritance as an estranged family member. This could lead to friction between families and unnecessary court and legal fees if a court is needed to resolute a legal dispute. 

If you are a relative of a person who dies intestate, you can make an application to the court for a ‘grant of letters of administration’. This needs to be done within the first two years of your relative’s passing, after which the law will begin to distribute the estate automatically. There cannot only be one administrator – there must be a minimum of two, up to a maximum of four. 

Q: Please explain the probate process further when someone dies without a Will 

A: To gain a letter of administration, you must have details of everything the deceased owned, how much it is worth, and any outstanding debts. This information is then used to fill out the necessary Inheritance Tax Returns forms. You will then be able to gain a full picture of the amount of tax that is owed to HMRC. 

Alongside these tax forms, the application also requires the original death certificate for the deceased, as well as a fee that to be paid to the Probate Registry for their service. 

If approved, the applicant(s) will be appointed as administrator(s) of the estate. This grants them with the legal authority to deal with the estate, which can require access to the deceased’s private information. 

When undergoing probate in this scenario, it is extremely complex, and mistakes are much easier to make. 

Q: How can potential disputes or complications be mitigated in the absence of a will? 

A: Having multiple administrators avoids disputes by allowing more of the deceased’s loved ones to have their interests represented, especially if the estate is complicated. However, third-party advice from a solicitor is also recommended. They can act as an unbiased party and consultant for any legal queries the administrators and their loved ones may have. 

When someone passes away it can be an extremely difficult time for all those involved in the individual’s life. To avoid undue stress and worry, everyone should have a will in place, meaning that when someone passes away, their friends and family are able to honour their memory with peace of mind, knowing that there is a plan in place for handling their estate. 

If you need help and support on matters concerning wills and probate, our team of specialists at Thomas and Thomas Solicitors provide a comprehensive range of Will services. For further support and advice, contact us here.