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Most commentators now see us heading into a toughening economic climate which may well result in reduced demand for goods and services. This is compounded by the strains placed on many businesses who have had to restrict activities due to the recent virus outbreak. We have seen the Government take action to keep people in their jobs through the ‘furlough scheme’ however, this is being scaled back and some businesses are faced with the need to reduce their employee numbers. Increasingly there are discussions around redundancy and ‘settlement agreements’ but what are they?

In simple terms a settlement agreement is where an employer and an employee agree terms for ending employment. They are often used when redundancy is being considered or if an employer thinks an employee is not performing as they would expect. Once agreed employment comes to an end.

These types of agreement were previously referred to as compromise agreements however, compromise agreements were primarily for workplace dispute resolution.

All settlement agreements vary but they will typically cover the payments to be received and the relevant tax issues. It is a requirement for employees to receive legal guidance on the agreement, something that is normally paid for by the employer. The solicitor can advise on the nature of the agreement and whether there are grounds for a claim against an employer, such as discrimination or unfair dismissal. If employment has to come to an end a settlement agreement provides a fair mechanism which represents the best interests of both employee and employer.

Employees do not have to sign a settlement agreement but it is worth considering if they will then face a redundancy process, or in some cases, disciplinary procedures. If they do sign the agreement then it usually means that the employee will give up the right to bring any kind of claim against the employer in return for a payment.

RRP Associates regularly acts for both employers and employees drafting settlement agreements and is able to advise on the content and represent the best interests of the client.

If you are considering offering an employee(s) a settlement agreement or if your employer has suggested this course of action please contact us.

T: 0745 127 0008

E: info@rrpassociates.co.uk

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It’s been a strange and challenging time for many of us. Every person has gone through their own lockdown experience with their own distinctive set of challenges ranging from illness, to child care and on to a sense of isolation. The loss of contact with friends and family has been a particularly hard burden to bear.

At RRP Associates we have continued to help our clients during the lockdown. Like many others we switched to a remote working pattern and the transition has been remarkably smooth for us, substantially  aided by a recent IT upgrade. This allowed us to move swiftly to secure video calls with our clients, staff and contacts and utilise the collaborative and communication benefits of software, including Microsoft Teams.

We have also been busy. We did not furlough any of our staff to ensure our levels of client care were maintained during the lockdown. We have had to overcome a few obstacles but have been successful as a result of ingenuity and lateral thinking.

As the property market picks up we have seen an increase in the level of enquiries from clients. It seems we are perhaps unusual in keeping our team intact?

Going forward we have carried out risk assessments for a partial return to work. We expect that blended working will be something of a new norm for a while. We are also looking at ways in which to carry out some essential client meetings. More information on this will be available soon.

Hopefully we are beginning to emerge from this crisis and I wish everyone well going forward.

Should you require any legal support please contact us by phone or e-mail and we will be pleased to assist.

Rodolfo R.

Managing Partner  

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A bill introducing “no-fault” divorces in England and Wales has passed through the House of Commons with a likelihood of it becoming law as early as July.

Currently one person can start divorce proceedings immediately by alleging unreasonable behaviour, desertion or adultery against the other party.  A ‘fault based’ divorce is therefore the only option if people don’t want to wait a minimum of two years before divorcing. As couples can only have finality in relation to their financial arrangements if they divorce, many do not want to wait that long before being able to move on. Equally though they don’t want to have to ‘blame’ the other party for the marriage breakdown. For this reason the current system has for many years received wide criticism.

The proposed changes will take away the blame game and mean that an individual would only have to state that the marriage has broken down irretrievably. The bill also takes away the ability to contest the divorce. There will still be a possibility of challenging a divorce petition on very limited grounds such as coercion or fraud. The bill also allows couples to jointly apply for a divorce where the decision is a joint one.

The move has been termed by objectors as being a ‘quickie divorce’ however, this is not accurate in that there will still be a minimum of 6 months between petitioning for a divorce and it being made final. Some will no doubt take much longer.  If it makes its way through to law though, the court will be able to make a conditional order after 20 weeks.

Justice Secretary Robert Buckland said the bill will seek to make separation “less traumatic”. No-one sets out thinking that their marriage is going to end, no-one wants their marriage to break down, none of us are therefore indifferent when a couple’s lifelong commitment has sadly deteriorated.”

Family lawyers have promoted the concept of a no-fault divorce for many years and have largely welcomed the proposed changes.

RRP Associates Head of Family law Amelia Summers said:

“I welcome the progress made by this bill. The current system is needlessly antagonistic with a requirement to allocate fault to one party or another when in practice a marriage may simply have broken down with no fault. The removal of the 5 year period is also a very sensible move. Locking a person in a marriage they have emotionally left is damaging on many grounds. The changes may also reduce the costs and unnecessary acrimony associated with divorce.”

It is also expected that similar changes will be made to the law as applied to civil partnerships.

If you need advice on divorce or any other family matter please contact Amelia Summers:

T: 0745 127 0008

E: info@rrpassociates.co.uk

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Businesses have responded very quickly to a fast changing economic and social environment. As a result of this many are having a good look at what they do and how they do it. Which in turn has involved a review of a wide range of practices and relationships. Many of these are supported by contracts and service agreements – which are essential to most organisations.

The speed at which many organisations have had to adapt has placed considerable strain on the senior teams of businesses who have had to make decisions much quicker than they normally would. Now they are looking at the shape of their business going forward. Contractual agreements provide the skeleton that hold businesses together.

In becoming more agile business owners should not skimp on the detail associated with key business agreements. Whether the agreement be associated with a supplier serving the business or the business providing products or services to others, the detail needs to be robust and well crafted.

Such agreements need to represent the interests of the business, be able to accommodate change, limit risk and of course comply with the law. Any poorly drafted agreements can lead to conflict, possible brand damage or a costly legal dispute. It is also worth noting that during a ‘due diligence’ review in a merger or acquisition well drafted agreements will significantly influence the price associated with a business sale or purchase.

A well-designed contract provides a basis for a successful mutually beneficial commercial relationship. Drafting them is however, a skilled process and the content should always been reviewed by someone who can determine if it is robust, enforceable or even legally binding.

If you need help in drafting or reviewing contracts or commercial agreements please contact Nesta Gresham at RRP Associates .

T: 0745 127 0008

info@rrpassociates.co.uk

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The government has recently announced that estate agents can now re-open, viewings can be carried out and removal firms and conveyancers can restart operations. This is all subject to the social distancing and health and safety regulations that are now in place.

The BBC has estimated that there are approximately 450,000 buyers and renters with plans on hold whilst Zoopla was reported as saying that they estimate that £82billion of property sales had effectively been put on hold during the lockdown. This could now potentially flow through.

RRP Associates has continued to advise clients on sales during the lockdown and its team are in place to respond immediately to the increased flow of transactions.

If you need help with a sale or a purchase please contact our Property team by e-mail or phone.

T:0745 127 0008

E:info@rrpassociates.co.uk

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Businesses large and small are currently looking at ways to borrow more to see them through the current lockdown. The recently announced ‘Bounce Back Loan’ scheme helps small and medium-sized businesses to borrow between £2,000 and £50,000. Under this scheme the Government will guarantee 100% of the loan and there won’t be any fees or interest to pay for the first 12 months. The term of the loan will be up to 6 years and no repayments will be due during the first 12 months.

It will be very interesting to see how this scheme progresses with the government saying it will work with lenders to agree a ‘low rate of interest’ (2.5%) for the remaining period of the loan. The scheme will be delivered through a network of accredited lenders with some of the big banks already marketing this scheme. Of significant interest is the fact that lenders are not permitted to take personal guarantees or take recovery action over a borrower’s personal assets (such as their main home or personal vehicle).

However, not every business will be eligible and it is worth noting that the borrower remains 100% liable for the debt.

Some businesses will no doubt look to extend existing borrowing from a bank or other lender, or seek alternative forms of investment. Already we are seeing some lesser known organisations move into the market offering funding and there will no doubt be some scams that come to light.

We can also expect that some businesses may decide to look for external investment in their business. Furthermore, as we come out of the downturn we can expect that some businesses may make themselves available for acquisition which could fuel a round of acquisition focussed lending.

All lending arrangements involve a form of contract between the lender and the borrower. Some of the terms can be rather confusing and difficult to understand. The rush for funding should not dilute the attention to the legal detail and obligations contained within the agreement. If business owners are in any doubt they should take legal advice on the contents of the agreements and the implications for the borrower and those who may be ultimately liable for any debt.

For more advice on the legal aspects of lending please contact Rodolfo R.:

0745 127 0008

info@rrpassociates.co.uk

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Property auctions could be set to rise as we come out of the pandemic. The impact of the lockdown may require property owners to change strategy and seek to dispose of stock superfluous to requirements.  Many pubs and restaurants if unable to trade until December could be severely impacted and investment owners may look to change the mix of properties in their portfolios.  Selling at auction for probate matters is a quick way to liquidate assets and this is usually a preferred option for beneficiaries.  But are auctions just for developers and landlords? In short no, but buyers should have researched the process in advance of any bid.

There are some very obvious differences between an auction and the conventional sales process. Most obviously the speed of the process. Once the hammer falls at an auction that’s pretty much the property sold. Bidding is normally open and transparent.

There are some downsides and risks associated with an auction but these are normally controllable by the buyer. Key issues include not getting carried away bidding beyond what you can afford or bidding on a property you have not viewed. It is also essential to consider the properties that you would be interested in bidding for at auction in advance.  Allow yourself enough time to appoint a solicitor to review and report to you on the legal pack  Often if your solicitor has sufficient time they will be able to raise enquiries on the contents of the legal pack early on.  Once the bid has been made and the hammer has fallen it is very difficult to raise enquiries or seek rectification of any issues.

Key points to check for are:

• Ensure the seller is the person/company named on the title.
• Look for restrictions and any matters registered on the title.
• Look out for random contracts, court orders and notices that might form part of the legal pack. These probably will impact the property significantly if not fully understood so it is vital you obtain legal advice on the implications before you bid.
• Make sure any mortgage will be cleared off the title when you take ownership and
• There are many other factors which need to be considered such as the structure of the building, rent arrears and the implication of occupying leases on the investment.

Budgeting for an auction purchase is crucial.  Not only must a buyer ensure they complete within the timeframe (usually 28 days) and ensure funding is in place there are other costs associated with buying at an auction. These include:

• An auction house administration fee
• Stamp duty
• Normal solicitors fees for the conveyancing, you may also be required to reimburse the seller for the cost of searches
• property insurance
• Investing in a full structural survey and even an investment review

If you need third party funding, you will need to have secured an ‘agreement in principle’ in advance of bidding. Once you have secured the property you will need to pay a deposit immediately and the balance purchase price on completion.

In recent times we have seen the emergence of the ‘modern method of auction’. This is a somewhat different approach whereby some estate agents allow buyers to bid on a property on line. There will be a reservation fee to pay but there is a longer period of time to complete the purchase allowing a buyer to apply for finance.

Generalisations are dangerous but auctions can offer significant value and there can be bargains to be had. If you are considering buying or selling via an auction give our property team a call to discuss your requirements.

T: 0745 127 0008

E: info@rrpassociates.co.uk

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Reasons to be optimistic in the mid-term?

One positive is that low interest rates should be available for a while and will likely be held low until the economy recovers. Although it is possible we could see some inflation as a result of quantitative easing, it is unlikely to happen quickly with businesses being encouraged to borrow to help growth recover. Consumer confidence will also need time to recover.

For buyers, this crisis could be a good time to begin a house hunt. Although some sellers will try to wait for the uncertainty to end, there will be some who are looking for a quick sale and so a deal can be done.

Landlords and investors, given the unpredictable nature of the stock markets, this could result in property beginning to look like a reasonable alternative. This has happened during previous financial crisis and we could see a similar pattern again.

Confidence

Confidence is the bedrock of the property market. It is hard to determine how things will play out in this respect although short-term confidence may be a little low this is often when the best bargains are to be had. Once the economy stabilises and begins to show signs of life, people will be more willing to commit to purchases.

It is possible that we may see some changes in Government policy in relation to taxation that could help boost confidence in the property sector. Property is often seen as personal indicator of economic well-being.

Although there are currently logistical challenges in marketing properties these will pass and we could see a degree of backed up demand finding its way through to the property market.

Affordability

The Evening Standard ‘Homes and Property’ section reported in February that:

“Housing affordability in the UK has increased at its fastest rate in eight years, according to new figures, which would usually set the scene for an active spring market.”

Recent times have seen average wages increase quicker than percentage price rises for property, collectively improving affordability. With average house prices at the start of 2020 just 0.2% higher than last years’ average.

There are therefore reasons to be optimistic about the property market, there will be bargains to be had, but the scale of any upswing will be reliant on multiple factors. Logistical challenges aside confidence will as ever be the key influencing factor.

Commenting on the state of the market RRP Associates Partner Hiromi Kuda said:

“Despite the challenges we face this could be a good time to review lending terms, leases and put in place a strategy to make the most of the opportunities that will undoubtedly arise.”

Should you require help with a property purchase, re-mortgaging or need assistance with a lease please contact Hiromi Kuda.

T: 01908 355743

E: info@rrpassociates.co.uk

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The BBC recently reported that there has been a spike in people seeking to draft or amend their wills. This is not surprising given the current health concerns. However, regularly reviewing the provisions of a will is good sense. Circumstances change, such as relationships, assets and simple wishes for how an estate should be dealt with.

One area often ignored is the issue of who would look after an individuals’ affairs if they become incapacitated for any reason. This is normally dealt with through something called a Lasting Power of Attorney. Lasting Powers of Attorney replaced Enduring Powers of Attorney which can only be used if created before October 1^st 2007. Anyone planning their affairs should consider drafting a Lasting Powers document.

The BBC article rightly points out that failing to correctly sign a will in front of two independent witnesses, who are physically present, is likely to lead to a judge ruling the document, and any legacy in it, invalid. This can be tricky given the current lockdown situation however, as RRP Associates Partner Sian Aung points out there are still ways in which this can be achieved:

“We have been adapting the ways in which we work with clients.  We have been taking instructions by phone/skype/facetime and have on a couple of occasions gone to a house to witness a Will through a window. Each day we finding new approaches to getting the job done and we are definitely still able to help new clients at this difficult time.”

There will be some people realising that they do not have a will in place and will now be considering drafting one. Various reports suggest this could be as much as 50% of the population. This is extremely worrying. It’s not just the financial aspects that people need to consider but also essential issues such as child care.

Individuals looking to draft a will, create a Lasting Powers of Attorney document, have a will amended or need advice on probate matters should contact one of our wills and probate specialists:

T: 0745 127 0008

E: info@rrpassociates.co.uk

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