The Household Charge and unfinished Estates : Taylor Solicitors Cork

Posted on January 18, 2012 by Taylor Solicitors Cork

Many people who bought property in Ireland in the last few years may have paid thousands in stamp duty charges, may be paying NPPR charges and are now wondering are they really liable for this most recent property tax especially in situations where the relevant housing estate hasn’t been finished by the builder/developer. 

The Household Charge is an annual charge introduced by the Local Government (Household Charge) Act 2011 and is currently set at €100 for 2012.  The owner of a property on the 1st January 2012 (as opposed to the tenant in a property) is responsible for paying this charge and the charge must be paid by the 31st March 2012.  It can be paid online at https://www.householdcharge.ie/.  It can also be paid to the applicable City or County Council Office.

There are a number of situations where properties are exempt from the Household Charge.

In addition, property owners can claim a waiver if they are in receipt of mortgage interest supplement or if they are living in one of the many unfinished estates throughout the State.

A national survey of unfinished housing developments was carried out in 2011. A person who, on 1 January 2012, is an owner of a residential property in an unfinished development as set out by the Government is entitled to a waiver from payment of the household charge in 2012. Full details of the these properties can be found at https://www.householdcharge.ie/Faq.aspx#fk17

If you are an owner of one of these properties, you are still obliged to register for the charge, but you are entitled to a waiver for 2012.

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Taylor Solicitors Cork: First Time Buyers in 2012 and the recent Budget

Posted on January 5, 2012 by Taylor Solicitors Cork

First Time Buyers 2012 (video)

Under the current Revenue rules, there are three basic taxes/reliefs you should consider when looking at buying your first home in 2012.

Stamp Duty:  For residential purchases, stamp duty remained unchanged in the recent budget.  If you are buying a residential property for less than €1,000,000 you will incur stamp duty fees of 1%.  This 1% applies regardless of whether you are a first time buyer, owner occupier or investor.  Basically, it’s a straight 1% charge across the board.

Mortgage Interest Relief:  The budget did introduce some changes in the area of mortgage interest relief. Mortgage interest relief is tax relief given on the interest portion of your mortgage repayments.  Mortgage interest relief is only available for qualifying mortgages which includes a mortgage on your first home where you will be living in the property.

This relief is paid at source by your bank or building society.  This means that your bank will either reduce your monthly mortgage repayment or give you a separate credit payment into your bank account.  You do not have to be earning a taxable income to qualify for mortgage interest relief.

Tax relief is only available up to the maximum allowance.  The ceilings or upper thresholds on the amount of interest paid that qualifies for tax relief depend on whether you are single, married or in a civil partnership and also on whether you are a first time buyer.

As a first time buyer in 2012, if you are married/widowed/civil partnership the applicable tax ceiling is €20,000 per year for 7 years.  If you are unmarried and not in a civil partnership, the applicable tax ceiling is €10,000 per year for 7 years.

For the first two years of the mortgage repayments, you will get 25% relief, for years 3,4 and 5 you will get 22.5% relief and for years 6 and 7 you will get 20% relief.

It’s important to be aware that the Government is phasing out mortgage interest relief.  Mortgages taken out after 31st December 2012 will not qualify for mortgage interest relief.

Household Charge:  Finally, you’ve probably heard some details of the new Household Charge introduced by the Government in the budget.  This is a new property tax which comes into effect from the 1st January 2012.  The 2012 Household Charge amount has been set at €100 a year.  The Household Tax will have to be paid before March 31st in each year of liability to avoid penalty charges.  The method for assessing liability for this household charge is likely to change next year, but for now it is a standard €100 for each household.

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Taylor Solicitors Cork: The Rules and Regulations of Online Selling

Posted on December 14, 2011 by Taylor Solicitors Cork

The Rules and Regulations of Online Selling (video)

Whether you’re selling a product or service, increasingly many businesses are moving towards offering their wares online.  As a business owner it’s up to you to ensure you’re familiar with the relevant legal requirements and you’re playing by the rules when it comes to online selling.

Consumer Rights

The basis of all consumer law is that the products or services you are selling have to be of a certain standard and consumers are entitled to expect this standard.  These basic consumer rights still apply when people are buying online.  In addition to these basic rights, online customers also benefit from additional protections under both Irish and European law.

Of particular relevance here are the Distance Selling Regulations and the E-Commerce Regulations.  From the perspective of most business owners the main points to consider are the following:

-          When do these regulations apply?

-          What information must I provide before a contract or agreement is enforceable?

-          What confirmation information must I provide?

-          What is a cooling off period?

When do these regulations apply?

Distance selling means any situation where you’re not dealing with someone face-to-face but instead you’re taking orders remotely.  This can be over the phone, email or via your website.

What information must I provide before a contract or agreement is enforceable?

As the business owner, the legal obligation is on you to ensure your customers get all the required information before any agreement is deemed to be enforceable.  This information includes:

-          who you are: your business name, identity

-          what you’re selling

-          price including taxes, delivery costs

-          details of the payment and delivery process

-          details of the right of cooling off and cancellation where appropriate

-          period for which the price is valid

What confirmation information must be provided on or before the time of delivery?

Prior to concluding the order or contract, you must provide customers with certain additional information including:

-          written confirmation of the order

-          written information on how to cancel the order

-          business address to which they can forward complaints

-          details of any guarantees

What is a Cooling Off Period?

The distance selling regulations give consumers what’s known as a “cooling off” period. This is something that consumers do not automatically get after they have bought goods or services in a physical shop, but it is a major requirement in online sales. During this period the consumer can cancel the order without giving you any reason whatsoever. The cooling off period starts on the day your goods are delivered to their home, or on the day when the customer makes the contract for a service.

As a web trader, you are legally required to give consumers a cooling off period of at least seven working days. The period can be longer than this if you wish, but it must not be shorter.  This cooling off period does not apply to all goods and services and exemptions include where you are supplying perishable goods or accommodation in a hotel or guesthouse for specific dates.  It’s important to also note that this cooling off period can be extended to three months if you do not provide the customer with all the relevant information about their contract within 30 days of their order.

As I said initially, it’s your business and it’s your responsibility to make sure you’re playing by the rules. Customers do not have to seek this information from you – it’s up to you to provide it.   In today’s market consumers are more savvy then ever when it comes to avoiding a contract so if you’re selling online it only makes sense to put proper information  and systems in place to protect your business.

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Taylor Solicitors Cork: Part-Time Employment Rights

Posted on October 7, 2011 by Taylor Solicitors Cork

Working on a part-time basis can suit many people for lots of different reasons.  You may be responsible for children or older parents and working full-time just isn’t an option at the moment.  On the other hand, you might just not be able to secure full-time work in today’s market.  Whether by choice or necessity, in the last few years more and more people in Ireland are working on a part-time basis.

At Taylor Solicitors Cork, one of the questions we are continually asked is whether employers are required to oblige full-time employees who want to switch to part-time hours.  The simple answer to this, is no, there is no automatic entitlement to part-time hours.  Any move from full-time to part-time work requires agreement from the employer.

However, at both an Irish and EU level the importance of increasing access to part-time work and indeed greater flexibility in the workplace has been recognised.  It just makes good business sense.  Employees are people… people with lives, families and lots other commitments.  Getting the best out of employees requires flexibility which can lead to happier and more productive staff.

As I said, the importance of access to part-time work has been recognised at a political level.  In 2006 we saw the introduction of the Code of Practice on Access to Part-Time Working (pdf) .  Although not binding on employers, this Code advocates that it is best practice for employers is to have policies on improving access to part-time work and employers should aim to maximise the range of positions available for part-time work.

If you make a request for part-time work, your employer should have a procedure for dealing with your application which allows for consultation and discussion before making any decision.  Your request should be taken seriously and consideration should be given to your personal circumstances, how part-time work would affect the business and the general staffing needs of the organisation.  You are entitled to have your request considered and reviewed on a non-discriminatory basis.

As I said, there is no right to work part-time hours and your employer can refuse your request but they should have good grounds for the refusal and you should be given reasons for why your request has been refused.

In our experience, many employers appreciate that all employees have different needs and obligations on their time.  They recognise the benefits of introducing flexibility in the workplace and working with staff to come up with solutions.

But like everything in life, you don’t ask, you don’t get.  So if reduced hours or greater flexibility is what you need at work, ask.  Think before you speak, put together your proposal and make your case.

Find out more about our Employment Law services

Useful Links:

National Employment Rights Authority:  http://www.employmentrights.ie

 

 

 

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Taylor Solicitors Cork: Proposed Bill to give Commercial Tenants the right to seek rent review

Posted on September 28, 2011 by Taylor Solicitors Cork

It is a tough time to be in business and managing costs is crucial to survival.  Ask any business owner about the costs of running their business and rent will feature as a significant expenditure.  One of the key election commitments of the current Government was a pledge to abolish upward only rent review clauses for commercial leases. 

In 2009 we saw the abolition of upward only rent reviews for leases signed post December 2009.  However, leases pre-dating December 2009 can still be subject to these upward only rent reviews.  This has created inequity in the commercial rental market and has led to job losses and the demise of many businesses. 

Under proposals currently under consideration, it is reported by the Irish Times today that the Government is preparing to give commercial tenants the right to seek a review of their rental agreements from their landlords in the proposed Landlord and Tenant (Business Leases Review Bill).

According to the article published in today’s Irish times (see link below), where a tenant seeks a rent review a four week consultation period would follow and if no agreement is reached, the parties would enter a compulsory mediation process.  If a resolution could not be reached via mediation, parties could apply to the Circuit Court for a ruling.

The Irish Times further reports that to enter this process tenants would have to establish that their rent is in excess of market rents,  that their company/business is vulnerable and lowering the rent would increase the chance of business success.

Without a doubt, upward only rent reviews do not reflect the reality of the times we live in.  When a business is struggling, negotiation is key to survival and introducing a mechanism to facilitate rent reviews is a step forward towards job retention, business survival and getting this country back on track. 

Taylor Solicitors Cork

 Link to article Irish Times 28.09.11:  http://www.irishtimes.com/newspaper/finance/2011/0928/1224304856477.html

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Taylor Solicitors Cork: The benefits of a Property Price Index

Posted on September 20, 2011 by Taylor Solicitors Cork

We hear it all the time… property prices have dropped another X% in the last few months.  And most people never stop and think about where this information is coming from and more importantly are these types of reports and statistics truly accurate?  In a word – No.

Up until now Ireland has had no centralised accurate database of property prices. If you stop and think about it, it’s hard to believe.  As a nation we have no clear record of what property around the country is actually selling for.  Statistics you hear on the news generally relate to surveys carried out amongst auctioneers or on the basis of advertised property prices.   But to be fair, these are far from hard and fast facts.  As a result, prospective purchasers have largely been operating in an information vacuum.  The price achieved for a purchaser comes down to negotiating skills and the relative strength of each party’s position.

In a major step forward in this area, Alan Shatter has stated he intends to expand the role of the Property Services Regulatory Authority to include publishing information on the sale of houses and apartments.  This will include the property address, the sale price and the date it was sold.  These provisions are to be included in the long awaited Property Services (Regulation) Bill.  For people entering the property market, this will provide valuable information and could prove crucial when it comes to price negotiation.  Likewise for sellers, it will encourage those placing property on the market to seek a realistic price from the get go.  In my opinion this kind of information can only boost the market and increase activity. 

On the flip side, as a nation we like our privacy…. We don’t want Mrs. Murphy down the road to know our business, let alone how much we raked in for that 3 bed semi.  This right to privacy is protected in our constitution and in theory this new law could be deemed to be unconstitutional.  Time will tell.

What is clear is that for too long hearsay and unreliable statistics have been a part of a culture fuelling the growth and subsequent demise of the Irish property market.  Reliability, hard facts and figures are what this country needs. 

Taylor Solicitor Cork

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To Fix or Not to Fix …. That is the Question

Posted on September 14, 2011 by Taylor Solicitors Cork

There is nothing quite like turning on the radio on the drive home from work, listening to Matt Cooper speak about the latest rise in interest rates and trying to figure out what this means for you and your mortgage.

For the average person, it can seem like something completely removed from the reality of their personal circumstances; every few months the banking big wigs throw the dice to see which way interest rates will roll for the foreseeable future.  And what we’ve seen in the last few months from many lenders has been an increase in rates while for many Irish people their finances have continued to deteriorate.

At Taylor Solicitors Cork, we are continually asked by clients buying property should they fix their mortgage interest rate.  If I had a crystal ball, I’d be able to hand out this type of advice.  But I can’t and in reality, no one can give you a definite picture of exactly where rates are going in the long term.  Aside from this, different rates and terms will suit different people depending on their lifestyle and plans for the future.

Having said that, I do find there can be confusion over what these different rates mean.  Generally, when you take out a mortgage you will be given the option of fixing your rate or taking a variable rate.  What are known as “tracker rates” still feature in the market although for the most part banks aren’t offering tracker rates for new mortgages.

Fixed Rates
Virtually all lenders will give you the option of fixing your interest rate today, for a specified amount of time.  This can be for any term from one year up to twenty years or more.  For the most part, the longer term you choose to fix the rate, the higher the rate will be.

So why would you choose to fix your rate?  The big advantage of fixing your mortgage interest rate is that you will know exactly how much repayments will cost you over the fixed term.  Interest rates can go up or down throughout the term and this won’t affect your repayments as you will have locked in at a specific rate.  For many people, this gives incredible peace of mind and allows them to budget their money more effectively.

The down side is that if the bank drops the variable or fixed rates in the future, you are tied to the higher rate.  It’s important to note that fixed rates are less flexible than variable and tracker rates.  For example, with a fixed rate you can’t make any additional payments or redeem the mortgage early without a penalty.  These penalties can be quite substantial and are somewhat dependant on the length of time remaining in the fixed period.

Before you fix your rate or decide on the length of time to fix the rate, consider your future plans.  Is there a possibility that you will change lenders, or decide to move house within the fixed period?  If so you will end up paying penalty fees.

Variable & Tracker Rates
Variable and tracker rates are similar in that if general interest rates go up or down, the variable and trackers rates will go up or down accordingly.  Tracker rates are tied into the European Central Bank (ECB) rate, and generally the bank’s tracker rate will be the ECB rate plus a percentage.  This percentage is agreed at the outset of the mortgage and means that the lender can’t unilaterally decide to increase rates  – rates increase only if the ECB raises their rates.  In contrast, if you have a standard variable rate, the lenders can in theory raise the rate whenever they like.   In the present market tracker rates remain low while for the most part, lenders have been increasing their variable rates.  Unfortunately most banks have stopped offering trackers so for most people taking out their first mortgage variable or fixed are the main options.

As I said, you need to consider your own circumstances and the rates on offer before deciding what is right for you and your mortgage.  When you are signing your mortgage documents your solicitor will explain the legal implications of both the mortgage and the rate you have chosen.  If you don’t understand something, make sure you ask questions because at the end of the day your mortgage will be with you for many years to come.

Taylor Solicitors Cork

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Forgive me Banker for I have borrowed… debt forgiveness for homeowners

Posted on September 1, 2011 by Taylor Solicitors Cork

Debt forgiveness: a phrase constantly in the news these days. Figures released by the Central Bank this week show an increase in the number of homeowners in mortgage Solicitors Corkarrears along with an increase in the number of people seeking to restructure their repayments.   With another austere budget facing us later this year, it’s only a matter of time before thousands more join the ranks of those unable to meet their mortgage repayments. 

In the last few days, Michael Noonan has pretty much ruled out an extensive debt forgiveness scheme for homeowners but he has indicated it is an issue that will be tackled.  It remains to be seen how and when this will happen and in the meantime homeowners in difficulty don’t have time to wait for politicians to work out a solution to this ongoing problem.  So let’s take a look at options that are available today.

Can I just hand my keys back to the bank and call it quits?

In a word, no.  That’s not how mortgages or debt in general operates in Ireland.  To put it simply, you can’t walk away from your mortgage.  You are responsible for the full amount outstanding on your mortgage even when your house has fallen below this amount. 

So what are my options if I can’t afford my repayments?

This is the situation facing many homeowners today.  They can’t afford their repayments but they don’t have the option of selling their property because they owe more on their mortgage than the house is worth. 

The worst thing you can do is to bury your head in the sand and hope it all goes away.  Problems don’t solve themselves, they need action. If you do nothing, your situation is likely to get worse.  If you are in arrears or think you will have difficulty making payments, you should contact your bank as soon as you can.

What are my rights?

Banks are obliged to follow statutory codes of conduct when dealing with people that are having difficulties paying their mortgages.  These codes set out frameworks that lenders must use when dealing with borrowers in mortgage arrears or in pre-arrears. Lenders are required to deal with these cases sympathetically and positively, with the objective at all times of helping people to meet their mortgage obligations.

Your bank must contact you as soon as it becomes aware that your mortgage account is in arrears and they must also have a procedure in place for handling accounts which are in arrears.

It is important to be aware that if you continuously fall behind on repayments, and you ignore or don’t engage with your bank, the bank can start legal proceedings to recover the money lent to you and start proceedings to take back your house.   Your bank cannot look for repossession of your home until every reasonable effort has been made to agree an alternative payment schedule. 

What is an alternative payment schedule?

When you contact your bank, they will generally ask you to complete a financial review.  Essentially, a financial review looks at what money you have coming in and what expenses you have going out.  Both you and the bank need to determine what you can realistically afford to repay on a monthly basis.  The bank may agree to restructure your loan in many ways. These may include:

  • Extending the term of your mortgage, which will reduce the amount of your monthly repayments
  • Changing your mortgage from capital and interest repayments to interest only
  • Postponing all or part of your mortgage repayments for a certain time frame to ease the immediate financial pressure on you.

Your bank is obliged to try to find a reasonable solution and a way forward.  If you are unsure about what your bank is proposing or how the change in terms and conditions will affect you, contact your solicitor as it is important you understand your rights and the consequences of any proposed changes to your mortgage repayments. 

Here at Taylor Solicitors Cork, our experience has been that many banks are actively engaging with their customers to find workable solutions.  But you need to be assertive.  If it’s a choice between meeting a mortgage repayment and feeding your family, time is of the essence and you simply don’t have weeks to wait for a bank to process your paperwork.  Take the lead. Contact your bank or solicitor before there is a problem and get working on a solution.

Useful Links:

Money Advice and Budgeting Service (MABS) http://www.mabs.ie/

Guide to Dealing with Mortgage Repayment Difficulties  

FLAC (the Free Legal Advice Centres) have published a useful set of guidelines on mortgage arrears (pdf)

 Consumer Protection Code (pdf)

Taylor Solicitors Cork

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Eleanora Taylor talks maternity rights and the realities facing working mothers in Ireland

Posted on August 12, 2011 by Taylor Solicitors Cork

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Buying My First Home. Where Do I Start?

Posted on August 9, 2011 by Taylor Solicitors Cork

As Cork property solicitors, every day we meet clients planning to buy their first home.  It’s a big step in life and an exciting time.  Having said that, for someone takinProperty Solicitors Corkg the first step on the property ladder, there’s a lot to take in and a lot to do.  To give you some guidance, we’ve set out a Step-By-Step guide to make the process a little less daunting. 

Step 1:  What’s my budget? How much can I afford?

Before you start looking at houses, you need to figure out your budget.  This will depend on a number of factors including your savings, what you can afford to borrow and what monthly repayments you can afford. 

Aside from the cost of your mortgage you need to allow for other costs associated with buying a house including legal fees, stamp duty, valuation fees, engineer’s fees and insurances. 

You should shop around for the type of mortgage that suits you best. There are a wide variety of mortgages available and you should make sure you fully understand what’s on offer. It can be confusing! So make sure you ask the questions you need to ask so you know exactly what you’re getting. Remember you are the customer; you are the one that will be paying back this mortgage, so make sure you understand exactly what’s on offer.

Once your mortgage application has been successful, the bank will give you what’s known as “approval in principle.”  This is a guide to how much the bank is willing to lend you. This gives you a better idea of your budget and what type of properties you can afford. 

Throughout this step, it’s a good idea to touch base with your solicitor if you have any questions. There’s a lot to take in and you’ll come across a lot of banking and legal language you haven’t heard before.  If you don’t understand something, ring your solicitor and ask her to explain it.

Step 2:  Find your new home.

This is one of the most exciting parts of the process. Only you can decide which property will become “home.”  Aside from your budget, you need to think about location – do you want to be close to family, friends, work?  Do you prefer city living or would you rather look out the window at green fields?  It’s a buyers’ market at the moment and this means for the first time buyer you have more choice and value for money than you would have had a few years ago.

Step 3:  Making an offer and putting down your deposit

When you’ve found a house you want and can afford you make an offer and negotiate the price, usually through an auctioneer.  Once you’ve agreed a price, you put down a deposit with the auctioneer.  You should make sure this deposit is “subject to contract and title”.  This means that if you don’t sign contracts, the deposit is fully refundable. 

At this stage, you have a few things to get started on:

-         You need to give the auctioneer the name and address of your solicitor.  The auctioneer will then get in touch with the seller’s solicitor and ask them to send contracts to your solicitor.

-         You should give your bank/mortgage advisor full details of the property and the name of your solicitor.  The bank will then prepare the loan offer and post it out to your solicitor.  At this stage you should also finalise all paperwork with the bank.

-         You need to hire an engineer to carry out a survey of the property. Your solicitor may also give you more details on exactly what she wants the engineer to do aside from a structural survey of the property.  This could include a planning search, checking the boundaries, checking rights of way etc.

-         You need to arrange a valuation for the bank.

-         You need to put in place your house insurance and life insurance.

Step 4:  The legal process

The contracts and loan offer will be sent to your solicitor.  Your solicitor’s job is to guide you through the legal process. This includes making sure you understand exactly what you’re buying and all of the obligations you have to the bank.  Your solicitor carries out full investigation of the title to the property, requests your loan cheque from your bank and completes the purchase on your behalf.  Your solicitor is there to ensure that all necessary registrations and legal work is completed to your satisfaction and in line with the bank’s requirements.

Step 5:  Getting the keys

At last!  Once you’ve got your keys, take time to celebrate! This is a big step in life and one that should be enjoyed.

By the time you get those keys, you’ll feel as if you’ve become an expert at navigating the home buyers’ market.  But along the way, ask questions, get advice and make sure you understand exactly where you are each step of the way. 

Taylor Solicitors Cork

 

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