When purchasing a high-value property, the financial stakes are significantly higher than those of a standard property.
Therefore, it is fundamental that you instruct a diligent solicitor who will conduct ongoing due diligence checks.
Our High Value Conveyancing Lawyers explore the various factors you need to consider to ensure that the conveyancing process is seamless and potential risks are managed from the outset:
Title Issues and Defective Ownership
It is essential that any potential issues in the property are unearthed as soon as possible, for example: restrictive covenants, boundary disputes, rights of way, and environmental concerns.
A diligent solicitor will raise an extensive list of enquiries and remind the seller’s solicitor of the importance of full and frank disclosure throughout the transaction.
In addition, high-value properties are often listed buildings or located in conservation areas. Both of which can present their own challenges.
You may need to seek planning and/or building regulations approval before making any alterations to the property.
With a team of qualified solicitors managing your transaction, we have the experience and knowledge to navigate these complexities, ensuring that all title issues are addressed as early as possible.
Planning and Development Constraints
Higher value properties are often situated in areas of outstanding natural beauty.
Whilst the façade may be alluring, you must understand the reality of living in an area which may be in a green belt or be subject to additional planning protections.
If you do not seek specific consent from the local authority, you may be subjected to severe penalties, including fines or potential criminal prosecution.
At Myerson, we will bring an ‘area of natural beauty’ to your attention immediately and explain the implications of living there.
You can then make an informed decision as to whether it is the right high-value property for you.
Complex Ownership Structures
You may wish to own the property in a less conventional way, for example, through a limited company, trusts, or special purpose vehicles (SPVs), often as part of a wider estate planning strategy.
These structures can add complexity to the matter, as lenders often require enhanced due diligence when corporate or trust ownership is involved.
Additionally, the structure used may have significant tax implications.
Therefore, seeking specialist advice is always recommended to ensure the arrangement aligns with broader private wealth and tax objectives.
As a full-service law firm, we work closely with our Private Client and Corporate departments to ensure that all of your needs are met under one roof.
Stamp Duty Land Tax Exposure
Stamp Duty Land Tax (SDLT) liability for a high-value property can be substantial, particularly when the purchase price moves into the higher rate thresholds.
Additional surcharges may also apply in certain situations, for example, if the property is classified as an additional property, the purchaser is a non-UK resident, or the property is acquired through a company.
As SDLT rules can be complex, it is important to consider your tax position at the earliest stages of the transaction.
As specialists in high-value property transactions, we have extensive experience in drafting and filing high-value SDLT returns and have strong links with local tax advisors, where guidance and property/transaction-specific advice should be sought.
Are you considering purchasing a £1 million+ property?
If so, you are in safe hands here at Myerson Solicitors. We appreciate that purchasing a high-value property is more than a ‘typical’ house purchase. It not only represents status and financial commitment but also a greater level of risk and responsibility.
Purchasing a high-value property requires far more than your standard conveyancing. If you are investing in a high-value property, you should invest in premium legal services. At Myerson, we pride ourselves on delivering high-quality legal advice to all our high-net-worth and ultra-high-net-worth clients.
Unlike other conveyancing firms, we do not handle bulk conveyancing, which means we can take the time to conduct a thorough title check and address any foreseeable defects at the outset of the transaction.
We work closely with local tax advisors, estate agents and our colleagues in the Private Client and Corporate teams to ensure that we can take a pragmatic approach to your purchase.
Unlike many conveyancing firms, our indemnity insurance is set at £30 million, meaning that we can deal with your residential property matters if you are a high-net-worth or ultra-high-net-worth client.
Contact Our Residential Property Team
If you are considering purchasing a high-value property and would like expert legal guidance, our Residential Property team is here to help.