HIPS

THINKING OF SELLING YOUR HOME? BIG CHANGES ARE COMING!

Home Information Packs (HIPs) are due to be introduced on the 1st June next. From that date, anyone wishing to sell a property in England and Wales must, before marketing that property prepare a HIP, to be produced to potential buyers at the outset of the transaction. All HIPs must contain:

• The terms of the transaction

• Details of the sellers legal title to the property

• Replies to standard pre-contract enquires normally raised by potential buyers

• Copies of all planning and other relevant consents

• Guarantees for work carried out to the property

• Local and Drainage Searches

• An Energy Performance Certificate (EPC)

A HIP for a leasehold property must also contain:

• A copy of the Lease

• A copy of the Buildings Insurance Policy

• Recent Service Charge Accounts

• Copies of any regulations made by the Landlord or Management Company

• The Company details of the Landlord or Management Company

Quotations for the costs to a seller for the production of HIPs vary widely between £350 - £500 for a HIP for a freehold property and up to £1,000 for a HIP for a leasehold property (although that quotation does seem somewhat excessive).

HIPs have been given a trial run since November of last year in five towns in the country but their reception has been distinctly luke warm (and in circumstances where, during the trial runs, the HIPs have been provided free of charge to the seller but at a cost to the government of some four million pounds). One is left wondering what the reaction is likely to be when sellers actually have to pay for the HIPs!

HIPs continue to cause controversy to the extent that key property pressure groups are calling for the government to delay the implementation of the HIPs. The Council of Mortgage Lenders in particular wants the introduction of HIPs postponed until the results of the trials can be properly assessed. They are all concerned that making HIPs compulsory will dissuade sellers from putting their properties on the market, thereby reducing supply and pushing up house prices. To date, however, the government appears to be ignoring all criticism and is pressing on with its original timetable.

Solicitors have an important role to play in the preparation of HIPs for their clients and should be the first port of call for any person intending to put their property on the market after the 1st June next. Solicitors are, however, anticipating a pre HIPs rush, with many people aiming to market their property before the 1st June to avoid the cost and expense of having to prepare a HIP. Intending sellers should, therefore, contact their Solicitors at the earliest opportunity to seek advice as to how best to proceed, and the likely costs involved.

Paul Grindrod

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Contact us online...or call 01344 862777

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Personal Injury Claims Divorce & Ancillary Relief Residential Conveyancing/Buying and Selling your home Commercial Property & Business Sales Probate & Estates Wills & Care For The Elderly Employment	All articles HIPS THINKING OF SELLING YOUR HOME? BIG CHANGES ARE COMING! Home Information Packs (HIPs) are due to be introduced on the 1st June next. From that date, anyone wishing to sell a property in England and Wales must, before marketing that property prepare a HIP, to be produced to potential buyers at the outset of the transaction. All HIPs must contain: • The terms of the transaction • Details of the sellers legal title to the property • Replies to standard pre-contract enquires normally raised by potential buyers • Copies of all planning and other relevant consents • Guarantees for work carried out to the property • Local and Drainage Searches • An Energy Performance Certificate (EPC) A HIP for a leasehold property must also contain: • A copy of the Lease • A copy of the Buildings Insurance Policy • Recent Service Charge Accounts • Copies of any regulations made by the Landlord or Management Company • The Company details of the Landlord or Management Company Quotations for the costs to a seller for the production of HIPs vary widely between £350 - £500 for a HIP for a freehold property and up to £1,000 for a HIP for a leasehold property (although that quotation does seem somewhat excessive). HIPs have been given a trial run since November of last year in five towns in the country but their reception has been distinctly luke warm (and in circumstances where, during the trial runs, the HIPs have been provided free of charge to the seller but at a cost to the government of some four million pounds). One is left wondering what the reaction is likely to be when sellers actually have to pay for the HIPs! HIPs continue to cause controversy to the extent that key property pressure groups are calling for the government to delay the implementation of the HIPs. The Council of Mortgage Lenders in particular wants the introduction of HIPs postponed until the results of the trials can be properly assessed. They are all concerned that making HIPs compulsory will dissuade sellers from putting their properties on the market, thereby reducing supply and pushing up house prices. To date, however, the government appears to be ignoring all criticism and is pressing on with its original timetable. Solicitors have an important role to play in the preparation of HIPs for their clients and should be the first port of call for any person intending to put their property on the market after the 1st June next. Solicitors are, however, anticipating a pre HIPs rush, with many people aiming to market their property before the 1st June to avoid the cost and expense of having to prepare a HIP. Intending sellers should, therefore, contact their Solicitors at the earliest opportunity to seek advice as to how best to proceed, and the likely costs involved. Paul Grindrod Do you have a legal question? If so we will try to answer it. Contact us online...or call 01344 862777
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