Stradbroke Drive, Chigwell see Personal Choice: page 12/13
produced by Lawlors Property Services
produced by: Lawlors Property Services
inhouse inhouse
contents 2
Professional Contributors
3
Life In‌ Woodford
4/5
Woodford
7
Lettings
8/9
Chigwell
10/11 Vantis 12/13 A Personal Choice 14
Foskett, Marr, Gadsby & Head
16/17 Loughton 19
Sunday Hotline
> STAFF FEATURED: WOODFORD GREEN OFFICE (MAIN GROUP PIC)
dedicated to property
professionalcontributors Welcome to the first edition of inhouse for 2006 which effectively kick starts our campaign for the year. Inside you will find a fabulous selection of properties in all prices, many of which are new to the market or have had subtle price reviews. We firmly believe that 2006 will be a year of property growth, with interest rates set to fall and the national media putting a positive spin on the economy and property in general. This month we have many of our regular contributors, in particular Vantis Accountants for business and tax advice, Bang & Olufsun market leaders in quality sound and vision equipment for your home and leading local solicitors Foskett, Marr, Gadsby & Head of Epping offering professional advice in all aspects of the legal world. We now distribute 20,000 inhouse magazines throughout prime locations in Chigwell, Loughton, Woodford Green, Buckhurst Hill and surrounding areas. Our entire database receives each issue on a complimentary basis and full details of all the current articles, together with previous articles from our well respected contributors, feature on our website www.lawlors.co.uk so you do not have to look far for expert advice! Please forward your comments, thoughts and suggestions on inhouse magazine for future editions, as we look forward to being of service to you throughout the coming year. Many thanks Sandra and James Lawlor Partners, Lawlors Property Services
inhouse january/february 06
see Personal Choice: page 12/13
produced by Lawlors Property Services
L to R: Andrea Paterson, Darren Murphy, Julie Allen, Mark Kiezner, Charlotte Coghlan
02
Stradbroke Drive, Chigwell
life in
. . . woodford
What we see before us is evidence of our newly revitalised office at Woodford Green. In this feature we introduce our new manager Mark Kiezner, fresh from a successful year as Senior Negotiator at Loughton office. Mark brings a mature, balanced viewpoint and extremely well developed negotiating skills to the Woodford Green area and in his new role as Manager he is driven by the desire to succeed. We know that Mark will be a great success for Lawlors Property Services and we feel sure that Woodford Green area will benefit by this welcome addition to our established team. Also featured in our presentation this month are the other key members of staff who are the
as we know it! backbone of our success story and these included Julie Allen (Assistant Manager), Andrea Paterson, Charlotte Coghlan and Darren Murphy who all work tirelessly and efficiently to bring Purchaser to Vendor. Since our return to work in January the market has definitely shown serious signs of improvement, particularly in the Woodford Green area, with many more houses appearing on our books and an unprecedented level of success being recorded at this early stage of the year. Partner James Lawlor F.N.A.E.A. is mentoring the Woodford Green office and will be spending considerable time in the area looking at properties with members of the staff and giving expert advice. If you wish to place your property on the market at any of our offices please do hesitate to contact us at your earliest convenience.
Residential Homes
offices in Loughton, Chigwell and Woodford
LAWLORS PROPERTY SERVICES
PROSPECT ROAD, WOODFORD GREEN £269,995
INGATESTONE ROAD, WOODFORD GREEN £349,995 Offered to the market is this three bedroom semi detached property situated in the popular Ingatestone Road. The property has been completely re-furbished throughout by the current vendor and is offered with immediate vacant possession. Property benefits include a through lounge, newly fitted kitchen and family bathroom, partly decked garden and external utility room.
Offered to the market is this well presented three bedroom Victorian terraced property situated in this residential road in Woodford Green. The property benefits from a first floor bathroom and many original features throughout, a newly fitted kitchen, dining room, lounge, 75ft rear garden and off street parking and is located within easy reach of local shops and Woodford Central Line tube station with its links to the City & West End.
WHITEHALL ROAD, WOODFORD GREEN £429,995
CHESTNUT AVENUE, BUCKHURST HILL £279,995
Lawlors property services are pleased to offer onto the market this delightful three bedroom semi detached property on Whitehall Road. The property benefits from two reception rooms, modern fitted kitchen, summer room and garage. The property offered in immaculate condition and an internal viewing is highly recommended.
Offered to the market in this pleasant tree lined turning in Buckhurst Hill lies this terraced property offering a generous sitting room/dining room, kitchen/breakfast room three bedroom’s family bathroom and potential for off street parking. To fully appreciate the property on offer we recommend an internal viewing.
HIGH ROAD, BUCKHURST HILL £247,500
MONTALT ROAD, WOODFORD GREEN £480,000 Offered to the market is this beautiful four bedroom semi-detached family residence. The property has been exceptionally maintained by the current vendors and offers solid oak wood panelling to the hallway and a hand made solid oak kitchen, there are two bedrooms both with en-suite facilities and a luxury family bathroom, making this a truly family orientated property.
Situated in this popular development lies this two bedroom first floor apartment which benefits from a spacious sitting room with access out to a private balcony, kitchen breakfast room with breakfast bar, generous master bedroom and family bathroom. This apartment also benefits from its own garage and one allocated parking space.
Sunday Hotline 10am - 2pm 07736 234422 04
inhouse january/february 06
WOODFORD OFFICE
specialising in sales and lettings:
457 High Road, Woodford Green, Essex, IG8 0XE t: 020 8506 0828 f: 020 8506 9101 e: property.woodford@lawlors.co.uk
Woodford Green, Sth Woodford, Buckhurst Hill, Nth Chingford and Wanstead
MONKHAMS LANE, WOODFORD GREEN £ P.O.A
BARCLAY OVAL, WOODFORD GREEN £670,000
An exciting opportunity to purchase this very spacious five bedroom detached residence in the sought after location of The Monkham's Estate. We understand from the vendors planning permission has already been granted to extend this property to a seven bedroom home with three en suite bathroom's. To fully appreciate the accommodation on offer we recommend an internal viewing.
Set in the heart of Woodford Wells is this stunning five double bedroom semi detached Victorian residence built in 1895. Benefits include: Lounge, dining room, cloakroom/ W.C, conservatory, kitchen / diner, Cellar, master bedroom, four further bedrooms, family bathroom, rear garden approximately 100ft.
QUEENS ROAD, BUCKHURST HILL £625,000
MALVERN DRIVE, WOODFORD GREEN £659,995
Lawlors are proud to offer onto the market this amazingly spacious six bedroom semi detached property situated in the ever popular Queens Road, Buckhurst Hill, Presented in immaculate condition Benefits include six bedrooms, contemporary style open plan living accommodation, en suite to master bedroom, cloakroom, utility room, garage and off street parking and an internal viewing is highly recommended.
Lawlors Property Services are delighted to offer as the vendors sole agents this very desirable four bedroom detached residence situated in the sought after location of Malvern Drive. Property benefits include three reception rooms including a 36ft lounge/diner, the first floor offers a newly fitted en suite shower room to the master bedroom and a further newly fitted family bathroom.
WESTBURY LANE, BUCKHURST HILL £460,000
MONKHAMS AVENUE, WOODFORD GREEN £725,000
Lawlors Property Services are delighted to offer for sale this four bedroom detached residence situated within easy access to Buckhurst Hills trendy boutiques, eateries and central line station. The property is truly for those of us who like to entertain, with an open plan ground floor and games room to the lower level. To fully appreciate the accommodation on offer we would strongly recommend an internal inspection.
Situated on the ever popular Monkhams Estate is this fabulous five bedroom detached residence within easy access to Woodford central line station and local amenities. The accommodation is arranged over three floors with each room well appointed and of a generous size. To fully appreciate the accommodation on offer we would strongly recommend an internal inspection.
Sunday Hotline 10am - 2pm 07736 234422 january/february 06 inhouse
05
First Floor, 165 High Road, Loughton, Essex, IG10 4LF t: 020 8502 5588 f: 020 8418 7814 e: lettings@lawlors.co.uk
LATEST
LETTINGS Hemnall Street, Epping
HORN LANE, WOODFORD GREEN
• Two Bedrooms • Original features • Outstanding Condition
£1000 pcm
• Victorian • Wooden Flooring • Close to Central Line
Woodford 020 85060828
GREAT WOODCOTE PARK, LOUGHTON
• Three Bedrooms • Excellent Condition • Garage
£1450 pcm
• Furnished/Unfurnished • Garden • Viewing Recommended
• Two bed apartment
• Allocated parking
• Close to underground
• Furnished
Loughton 020 8502 5588
Hillyfields, Loughton • Two bedroom split level maisonette
Loughton 020 8502 5588
£900 pcm
• Spacious throughout
• Garden
• Available now
Loughton 020 8502 5588
£800 pcm
Brunel Road, Woodford Green • Two bed terraced house • Redecorated throughout • Viewing recommended • Available now Chigwell 020 82810123
£1100 pcm
Great Woodcote Park, Loughon • Five bed detached house • Heated swimming pool • Three bathrooms
• Outstanding kitchen
£POA
Loughton 020 8502 5588
FIELD CLOSE, BUCKHURST HILL
• Six bedrooms • Four bathrooms • Viewing recommended
£P.O.A.
• Stunning detached house • Conservatory • Available Now
Woodford 020 8506 0828
LONG GREEN, CHIGWELL
• Five Bedrooms • Garage • Close to underground
£1800 pcm
• Three Bathrooms • Refurbished • Available Now
Ely Place, Woodford Green • Four bed detached house • En-suite to master • Refurbished throughout • Garage
Chigwell 020 82810123
Chigwell 020 82810123
£1675 pcm
Buckhurst Way, Buckhurst Hill • Three bed end of terrace • Landscaped garden • Conservatory
• Close to underground station
Woodford 020 85060828
£1250 pcm
Manor Road, Chigwell • Six bed detached house • Leisure complex • One bed granny flat
• Outstanding accomm.
£POA
Chigwell 020 82811023
REPTON PARK, WOODFORD GREEN
£P.O.A.
MANOR ROAD, CHIGWELL
• 6 Bedrooms • Four Bathrooms • Immaculate condition • Double garage • Viewing Recommended • Available Now
• Four Bedrooms • Swimming Pool • Prestigious Location
Chigwell 020 82810123
Chigwell 020 82810123
£2500 pcm
• Detached House • Spacious • Viewing Recommended
Tewkesbury Close, Loughton • 2 bed end of terrace
• Close to Loughton Station
• Tasteful décor throughout • Viewing recommended Loughton 020 85025588
£950 pcm
Sunday Hotline 10am - 2pm 07736 234422 january/february 06 inhouse
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Residential Homes
offices in Loughton, Chigwell and Woodford
CHIGWELL OFFICE
LAWLORS
116 High Road, Chigwell, Essex, IG7 5BJ t: 020 8281 0123 f: 020 8281 0222 e: property.chigwell@lawlors.co.uk
PROPERTY SERVICES
CHIGWELL PARK DRIVE, CHIGWELL £485,000
HIGH ROAD, CHIGWELL £619,995
Four Bedroom, Ground Floor Apartment, boasting video security entryphone, lounge, dining room, kitchen/breakfast room, master bedroom with en-suite bathroom, family bathroom & cloakroom/WC.
CLAREMONT PLACE, CHIGWELL £499,995
Four Bedroom Semi-Detached property with spacious accommodation appealing to a family & no on-going chain. Cloakroom/WC, lounge, dining room, breakfast room, kitchen, family bathroom, second family bathroom, single garage & off-street parking.
FOREST DRIVE, ELMBRIDGE GATE, FYFIELD £650,000
Tthree bedroom, first floor modern apartment in this purpose-built development which has captured the attention of the local community with its contemporary design and excellent location in the heart of Chigwell. Cloakroom/WC, bedroom three with en suite bathroom, lounge, kitchen, master bedroom with en suite bathroom.
Located in the stunning Essex countryside lies this unique picturesque development, Elmbridge Hall. Amazing Four Bedroom Detached house with detached double garage located on approx a quarter of an acre & panoramic countryside views from most aspects, viewing is highly recommended.
LAMBOURNE ROAD, CHIGWELL ROW, £565,000
NEW FARM DRIVE, ABRIDGE £599,995
Gated Three/Four Bedroom Barn-style property. Set over two floors and the patio with views of landscaped garden the property boasts: kitchen/breakfast, lounge, cloakroom/WC, bedroom four/study with en-suite bathroom & double car port.
Spacious Five Bedroom Semi-Detached property which has been extended affording excellent living accommodation. Located within close proximity to all major routes to Chigwell Village, surrounding areas and the dual carriageway leading to North Circular. Immediate inspection advised to avoid disappointment. Cloakroom/WC, lounge, dining room, study/family room, kitchen/breakfast room, utility room, family bathroom, storage room, dressing area, off-street parking & single garage
Sunday Hotline 10am - 2pm 07736 234422 08
inhouse january/february 06
specialising in sales and lettings:
Chigwell, Abridge, Repton Park, Lambourne End and Stapleford.
HAINAULT ROAD, CHIGWELL £595,000
THE MANOR, REPTON PARK £465,000
Four Bedroom Semi-Detached property is located within a sought after position, close to Chigwell Central Line Tube Station and local amenities. Having no on-going chain, immediate viewing is crucial to avoid disappointment. Cloakroom/WC, lounge, TV/study, dining room, kitchen/breakfast room, utility room, master bedroom with en-suite bathroom, family bathroom & off-street parking.
The Manor is set within 235 acres of glorious parkland and ancient woodland, each benefiting from at least one terrace or balcony. The contemporary specification has been chosen for its quality: fully fitted kitchens are complimented with a complete range of integrated appliances. Electronic security gates guard the entrance to the development and CCTV cameras operate at strategic locations.
REGENTS DRIVE, REPTON PARK, £999,995
ROSEBURY SQUARE, REPTON PARK, £595,000
Six Bedroom family home, arranged over three floors. Located within the superior Regents Drive, the property itself backs onto woodlands and features include: four bathrooms, detached double garage, garden in excess of 70ft and Amtico flooring. The property is maintained to the highest standard throughout and must be viewed.
Four bedroom family home arranged over three floors with four good size bedrooms and has the benefit of two en-suites. The current owners have maintained the property to a high standard and offer: cloakroom/WC, kitchen/breakfast, utility room, lounge, family bathroom, single garage, master bedroom and en-suite & bedroom two with en-suite.
KENSINGTON HOUSE, REPTON PARK, £529,995
FONTAYNE AVENUE, CHIGWELL, £415,000
Stunning Three Bedroom, Ground Floor Apartment offers an abundance of natural light with spacious lounge 22'6 x 14 and entrance/dining hall 14 x 13'8 and two underground parking spaces. With no on-going chain this property has to be viewed as soon as possible to fully appreciate its luxury. Entrance/dining hall, lounge, kitchen/breakfast room, master bedroom with en-suite bathroom, bedroom two with en-suite bathroom/main bathroom, two allocated underground parking & south facing rear garden.
Three Bedroom Semi-Detached property with scope to extend to the side, subject to the usual planning consents. This property offers spacious accommodation, attached garage, off-street parking and is within walking distance to both Chigwell and Grange Hill Central Line Tube stations and local amenities. No on-going chain. Cloakroom/WC, lounge, dining room, kitchen/breakfast room, family bathroom & single garage
Sunday Hotline 10am - 2pm 07736 234422 january/february 06 inhouse
09
Feature - SIPPS
These forms of investment are bound to be very restrictive and a Real Estate Investment Trust, based on a model popular in the United States, has been stated as an example of such an investment. The details are presently very scanty but further details will follow.
SIPPs: How the fact became fiction. When something seems ‘too good to be true’ it usually is, especially in the tax world. For a number of years confidence in pensions has been shaken with amongst other things poor stock market performance and recently Gordon Brown has reduced confidence even more. You may recall our article in the October/November 2005 issue of inhouse in which we identified the possibilities that we were told would exist on 6th April 2006 for a Self Invested Pension Plan (a SIPP) to purchase residential property.
So what is all the fuss about? Unfortunately the Pre Budget report issued on Monday 5th December brought with it some unexpected changes to the forthcoming simplification of pension’s taxation. The simplification process has been ongoing for three years with A Day, the implementation date, set for 6th April 2006. From when the government’s proposals were first made the topic of residential property becoming an acceptable investment for SSAS and SIPP pension arrangements with considerable tax advantages has consistently made the headlines and filled numerous column inches encouraging the idea of buy-to-lets, holiday homes and even principal residences becoming pension scheme assets. The counter argument has been to see this as a perk for the rich with full tax relief flowing from the Treasury. With only 4 months to go the Chancellor dropped the bombshell that residential property owned in a self directed pensions scheme (currently SSAS or SIPP) will have no tax advantages over any other method of ownership. Many people will be very well advanced in their planning. This complete U-Turn will come as a major shock leaving many people significantly out of pocket. The Pre Budget report also places a number of other investments into a prohibited category along with residential property and legislation will be introduced to remove all tax advantages from holding such assets. These other investments tend to be viewed as more exotic and have traditionally not been allowed in pension schemes – classic cars, fine wines, art and antiques.
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inhouse january/february 06
The fears of many people that allowing such investments would lead to abuse and possibly distort the housing market have obviously hit home with the Chancellor. However there will be widespread concerns about leaving such a major change to the last minute when the impression has always been given that the new rules would proceed unchanged despite these misgivings. The view from Government had been that the restrictions on borrowing (i.e. only up to 50% of the fund value could be borrowed to finance purchases) would prevent widespread residential property ownership and indeed that was seen as the only rationale for such illogical borrowing restrictions. The view seems to have now been abandoned but it is interesting to note that the borrowing restrictions are still in place and will considerably impede a traditional area of pension scheme investment – commercial and industrial property ownership.
But the Chancellor says my pension can buy a residential property? Well that’s true, technically, but this would be disastrous for the following reasons: • All tax advantages would be removed so that a SIPP would be in the same position as an individual
The good news is that some protection is available but the bad news is that the property must never become residential. This means that the ‘option’ to purchase ‘off-plan’ will have to be sold out of the pension fund before it is completed as a residential property. We are still unsure whether any profit made by a pension fund in these circumstances will be taxable.
What is defined as residential property? Well we don’t really know yet! This will need to be defined in the legislation. It may be that a shop with a residential flat above, let out separately to the shop, will be allowed within a SIPP. Only after this definition is published can investment decisions be made!
How can my pension fund invest in residential property now? Whilst we don’t yet know the precise details, the Government has hinted at the possibility of pension funds investing in ‘genuinely diverse commercial vehicles that invest in prohibited assets’
I still want to purchase a buy to let property to provide income in retirement, what are the alternatives? • To buy in your own name. Tax is payable at your highest rate, up to 40% on both net rental income and any capital gain on sale. • To buy within a company • A small company pays tax at 19% on rental income and if any capital gain is made on sale this is also restricted to 19% if the gain is less than £300,000 • On retirement dividends could be paid up to your higher rate tax threshold with no further tax liability. This area can be complex and companies bring with them extra administration costs and specialist advice should be sort.
What other pension surprises were there in the Pre Budget Report? • Inheritance Tax (IHT) – This years Finance Bill is expected to include rules that confirm that IHT will be payable on the value of pension funds left on the death of a member. Many had thought that a SIPP, being a trust, would escape IHT but this is clearly not the case.
• Pension Recycling – Benefit Crystallisation at age 75. New rules will be announced that will introduce a minimum pension age from 75 even though no benefits have provisionally been taken. Again the details of this are extremely vague at this stage.
Summary Whilst the introduction of prohibited assets for pension schemes is very unfortunate, we shouldn’t ignore the very real savings in Tax and National Insurance, that pension planning makes available. Every one of us will need an income to live on in retirement and a pension is still, by far, the best way of providing for this. A SIPP remains a very useful tool in pension planning, as it gives the investor full control over it’s investments. Ignoring prohibited investments, there is still a wide range of investments that a SIPP can invest in, including commercial property. If you need any further advice then please contact Jan Rickler or Dave Kirkwood at the Vantis Loughton office on 020 8502 0411.
Vantis is the AIM listed business advisory group that specialises in helping business people improve the performance of their businesses. Through 20 locations across the UK, the company offers a range of specialist skills, including business advisory, accountancy, bespoke tax planning, business recovery and advisory services, sports advisory and management services, outsourcing, corporate finance, asset finance and independent financial advice. Working together with our tax experts in the UK, we are able to provide workable solutions for landlords and individual home owners in the UK and abroad.
• Tax would be payable on rent received and capital gains in the future. • Tax payers would suffer a tax charge up to 40% of the value of the property by way of repayment of tax relief obtained on contributions into the fund. • The fund would suffer a penalty of 15% of the value of the property • If certain limits are exceeded there could be a further penalty of 15% of the value of the property. • If more than 25% of the pension fund is invested in residential property the fund will be de-registered and suffer yet another tax charge of 40% All this amounts to a tax charge of well over 100% making prohibited assets prohibitive as well.
This article is intended for general guidance only and, where relevant, represents our understanding of current law and Inland Revenue practice. Action should not be taken without seeking professional advice. No responsibility for loss by any person acting or refraining from action as a result of the material in this article can be accepted and we cannot assume legal liability for any errors or omissions this article may contain.
Jan Rickler - Client Partner VANTIS
David Kirkwood - Client Partner VANTIS
3rd Floor Crown House 151 High Road Loughton IG10 4LG
3rd Floor Crown House 151 High Road Loughton IG10 4LG
If you need any further advice, please contact Jan Rickler or Dave Kirkwood in our Loughton office on 020 8502 0411.
Email: jan.rickler@vantisplc.com Web: www.vantisplc.com
Email: david.kirkwood@vantisplc.com Web: www.vantisplc.com
What if my SIPP purchased a residential property before 5th December 2005?
january/february 06 inhouse
11
Meanwhile in Woodford Green, we have been favoured with instructions on a fine family Tudor Style house, in Woodland Way, Woodford Green, offering a unique view over the beautiful Knighton Woods. Our clients have been in the property for many years and have enjoyed the benefit from the extensive family accommodation which includes four bedrooms, two bathrooms, three reception rooms and a lovely family room which overlooks the garden. Our client is considering property through us in Chigwell and would like a sale for spring. £950,000, sole agents.
Take a few moments to browse through this selection of properties which I personally believe standout from the wide selection of properties we are currently offering. In particular I would like to draw your attention to this fine property in Stradbroke Drive, Chigwell which features on the front cover of our magazine. Prior to Christmas the property was on the market for £2,450,000 and now as a fresh start to the New Year the price has been reviewed to under £2,000,000, with a view to attracting a quick sale. The accommodation is breathtaking and up to the minute in design, offering fabulous family accommodation in one of Chigwell’s premier roads.
Ravensmere, Epping
£835,000
Another personal favourite must be this stunning Edwardian detached property on the popular Monkhams Estate, a mere few minutes walk to Woodford Green Station and Broadway. The fact that the property has now been reviewed from £825,000 to £799,995 must make it one of the areas best buys considering it has a superb 100’ garden and magnificent high ceilings. Further details are available on our website. Currently being offered through our Loughton office is an unusual modern style residence in Epping called Ravensmere, which offers a third of a acre and panoramic views over surrounding countryside. This property offers further planning permission to extend and whilst this is already an impressive residence, a further extension can only enhance its appeal. At £835,000 this is a must see property.
Kings Avenue, Woodford
£799,995
For kerbside appeal may I draw your attention to this lovely three bedroom semi-detached property in the semi rural part of Chigwell adjacent to Gravel Lane. This property not only offers substantial scope to extend (subject to planning) but offers wonderful views from the garden over surrounding countryside. At £335,000 this property must be seen. For all our latest news and information you can visit our website www.lawlors.co.uk on a daily basis to be kept fully up dated.
I wish you all happy viewing and much success in your search for a new home.
Woodland Way, Woodford Green
£950,000
Gravel Lane, Chigwell
£335,000
Stradbroke Drive, Chigwell under
£2,000,000
by
James Lawlor PARTNER F.N.A.E.A.
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inhouse january/february 06
january/february 06 inhouse
13
Feature - Wills
< Duncan Gadsby PARTNER
I have been aware for some while that whilst many of us have benefited from the rise in house prices over the years, the flip side of high property values is that many more people are falling within the Inheritance Tax Threshold and they (or their beneficiaries) are losing 40% of the value of their estate to the taxman. However, I learnt that whilst House prices had risen on average by 140% the inheritance tax threshold had increased by only 30%. We have found the best ways to achieve a saving is to make a “Discretionary Will”. Not only can they be used for inheritance tax (IHT) mitigation purposes but, they can also used to enable finetuning of the provision made for beneficiaries. This is particularly useful where a client’s circumstances, or those of their children, are complex and likely to change significantly prior to their death. However it is clearly fundamental that every one of our clients are aware of the importance of making a Will (discretionary or otherwise), particularly single or divorced persons and unmarried couples, as the intestacy rules very rarely reflect their wishes. It is helpful for a non-legally binding ‘letter of wishes’ (or ‘side letter’) to be deposited with the Will, for the future guidance of the trustees. This may be updated as required, as the Testator’s circumstances or wishes change.
Examples of tax-mitigation The advantage of discretionary Wills from an IHT viewpoint is best illustrated by comparing them with standard non-tax planning family Wills. In the following examples it is assumed for the sake of simplicity that each spouse has an estate valued at £250,000 and the NRB is also set at £250,000.
(a) Standard non-tax-planning family Wills 1) The husband dies leaving an estate valued at £250,000 to his wife. There is no liability to IHT, due to the ‘spouse exemption’. However, when the wife dies her taxable estate is the value of her own estate of £250,000 plus the value of the estate she has inherited from her husband (£250,000), ie a total of £500,000.
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2) The IHT on the wife’s estate is calculated as follows: Value of total estate
- £500,000
Less tax-free NRB
- £250,000
Net taxable estate
- £250,000
IHT on taxable Estate at 40%
- £100,000
3) Therefore the couple’s children receive £400,000 (ie £500,000 less £100,000 in IHT). The Inland Revenue receive the balance of £100,000.
(b) 2 Year Discretionary Wills 1) If however the couple had made joint 2 year NRB discretionary Wills the wife has 2 years from the date of her husband’s death to decide whether she can afford to divert the NRB legacy - or any part of it - from her husband’s estate direct to the children. If she does nothing then after the discretionary period of 2 years has elapsed she will automatically receive the NRB legacy by default. However clearly this will not result in any IHT savings upon her death, as this produces the same position as under a standard family Will. 2) However if she wishes to divert the NRB legacy (or part of it) to the children she can, along with her co-Trustees, execute a Deed of Appointment to that effect. The trustees cannot out-vote each other but must act unanimously. As the wife is one the Trustees and the sole default beneficiary, by doing nothing she will receive the NRB legacy by default. The diverted legacy is treated for IHT purposes as if it had been made upon the husband’s death by Will direct to the children, and is, by definition, exempt from IHT as it falls within the husband’s tax-free NRB.
inhouse january/february 06
3) By diverting the NRB legacy to the children, the wife’s estate will be worth £250,000 less than it would otherwise have been (ie £250,000 rather than £500,000). So upon her death there will be no IHT liability, as her estate falls within her own NRB of £250,000. The result is that the children receive £500,000 (ie £250,000 from each parent) and the Inland Revenue receives nothing. The IHT saving is £100,000.
Simple gifts by surviving spouse v gifts under discretionary Wills What if the wife had, instead of executing a Deed of Appointment, accepted the NRB legacy from the husband’s estate and then gifted it to the children? In such circumstances the gift is a Potentially Exempt Transfer (PET) by the wife to the children. Therefore if she should fail to survive the date of the PET by a period of at least 7 years, it would be deemed to remain part of her taxable estate for IHT purposes, and accordingly there would be no tax saving. 2) It is almost invariably advantageous for any couple owning joint estates worth more than the NRB to make 2 year discretionary Wills rather than ordinary non-tax planning family Wills. It is the dramatic recent increase in the value of house prices, out-stripping increases in the NRB, that usually results in an IHT liability arising for many couples. It has been calculated that the NRB should be £450,000, rather than only £275,00 (as it is for the 2005/2006 tax year), if it had been indexlinked to house prices. Therefore IHT has been called a ‘stealth tax’. 3) The vast majority of our clients own joint estates worth more than the NRB and are likely to be delighted to have the opportunity to save IHT of over £100,000. The matter is complex and only to be undertaken with guidance from qualified specialists. Let us guide you thought the legal minefield with confidence for any informal discussion please contact me in the first instance
DUNCAN GADSBY (PARTNER), FOSKETT, MARR, GADSBY & HEAD 181 High Street, Epping, Essex, CM16 4BQ
•
Tel: 01992 578642
Residential Homes
offices in Loughton, Chigwell and Woodford
LOUGHTON OFFICE
LAWLORS
165 High Road, Loughton, Essex, IG10 4LF t: 020 8502 5588 f: 020 8502 5802 e: property.loughton@lawlors.co.uk
PROPERTY SERVICES
HIGH BEECH, LOUGHTON £374,995
GRANGE COURT, LOUGHTON £265,000
This property is a re-modernized top floor apartment benefiting from the original parquet flooring and a newly fitted kitchen, bathroom. Situated within this sought after courtyard development and close proximity to the shopping facilities of the High Road and central line station.
We offer to the market this well presented three bedroom Edwardian semi detached property. The property benefits from three bedrooms, two reception rooms and set within close proximity to Epping forest and Loughton central line station this truly is not a property to be missed and an internal viewing is highly recommended.
HIGH ROAD, LOUGHTON £365,000
GRASMERE CLOSE, LOUGHTON £580,000
A well presented three bedroom detached property, ideally located for Loughton central line station and high road with all it fashionable boutiques and cafes. The property benefits from two receptions, kitchen and dinning room on the ground floor plus, three bedroom and bathroom on the second floor. An internal viewing is highly recommended to appreciate all this property has to offer.
Located in a cul de sac off St Johns Road is this four bedroom detached house with double integral garage. With accommodation including a lounge / diner, fitted kitchen with separate utility room and ground floor cloakroom, master bedroom with ensuite shower room plus three further bedrooms and a family bathroom this property offers ideal living accommodation for a family.
THE DRIVE, BUCKHURST HILLS £699,000
ALGER ROAD, LOUGHTON £625,000
Offered to the market is this four bedroom detached property, ideally located for Loughton central line station and High Road. Benefiting from two receptions, kitchen, utility room, cloak room and integral garage on the ground floor and four bedrooms plus family bathroom on the first floor.
Offered to the market is this five bedroom double fronted detached house boasting immense character. Occupying a superb location this property offers many character features including several reception rooms a galleried landing and a rear garden in excess of 75 feet. This property must be viewed internally to be fully appreciated.
Sunday Hotline 10am - 2pm 07736 234422 16
inhouse january/february 06
specialising in sales and lettings:
Buckhurst Hill, Theydon Bois Epping, Loughton and Ongar.
CHURCH LANE, LOUGHTON £699,995
RAVENSMERE, EPPIING £835,000
Offered to the market for only the second time in its history is this four bedroom detached residence which is situated in a prime position on Church Lane. With three reception rooms, kitchen, utility, swimming pool, off-street parking and two garages, this property must be seen.
An unique opportunity to acquire a property set in approximately a third of a acre. In one of the most sought after turnings in Epping and Ideally located between the Central Line Station and Epping High Street. The property also offers subject to the relevant planning permissions the ability to extend and increase this already impressive residence.
BRIDGE BARN, EPPING £1,150,000
RICHMOND PARK, LOUGHTON £1,250,000
Lawlors are delighted to present this award winning country grade 2 listed barn conversion with grounds extending to approximately five acres. The property has a stable block with separate living accommodation, a triple timber carport with further storage newly converted above. Within the barn there is a beautifully galleried landing, feature fire place, beamed walls and ceilings a real designer’s dream of a home. Fiddlers Hamlet is a most picturesque part of Essex, this is surely a property not to be missed.
Offered to the market is this five, double bedroom, property set on the prestigious Great Woodcote Park estate. This well maintained property offers spacious living accommodation, Porterage and communal grounds.
WOODSIDE THEYDON MOUNT £1,450,000
GREEN HILLS, BUCKHURST HILL £249,995
A rare opportunity has arisen to purchase this highly desirable country home, located in Theydon Mount. Set within approximately 6.5 acres the property is predominantly set across the ground floor offering a selection of receptions, bedrooms and two kitchens, with further bedrooms and bathrooms on the 1st floor.
Offered to market is this spacious two bedroom apartment. Benefiting from communal grounds, allocated parking space and garage en block to the exterior. Kitchen, shower room and a spacious lounge/diner.
Sunday Hotline 10am - 2pm 07736 234422 january/february 06 inhouse
17
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