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The demand for UK housing continues to rise and converting commercial property into residential accommodation has become an increasingly attractive option.

Whether you own an industrial building that is vacant or a retail unit, these spaces can be repurposed and see new revenue streams.

However, commercial to residential conversions are not straightforward and often involve planning considerations and legal obligations.

One of our Commercial Property solicitors, Katherine O’Sullivan, explains what you need to know before converting.

Why should you convert commercial property into residential?

Converting an existing building is often more cost-effective than developing a site from scratch.

The land has already been developed and infrastructure is usually already in place, which can reduce development time and initial costs.

In recent years, the UK Government has expanded Permitted Development Rights (PDR), which allow certain types of commercial property to be converted into residential use without the need for full planning permission.

This has made conversion projects more accessible and commercially viable for many property owners.

However, permitted development does not remove the need for careful planning.

Each project must still meet legal and regulatory standards and professional advice is crucial to ensure your conversion is lawful.

What are the planning permission and regulatory requirements?

When looking to convert your commercial property, you must assess whether your project qualifies for permitted development or requires full planning permission.

Many commercial buildings can benefit from PDR, but full planning consent is often required for properties located in conservation areas, national parks, Areas of Outstanding Natural Beauty (AONBs) or listed buildings.

Regardless of whether PDR applies, all commercial-to-residential conversions must comply with building regulations.

This includes fire safety, structural integrity, insulation, energy efficiency, ventilation, accessibility and sanitation.

Failure to meet these standards can result in costly delays or even enforcement action.

What is the conversion process?

A thorough assessment of your property could be the answer to a successful conversion.

This can include:

• A structural survey – This can help spot any defects or limitations that may affect the project.
• Research into local housing demand – This can help determine whether the conversion is commercially viable. You may also identify whether previous planning applications for conversion have been granted or denied.
• Assessing if funding is needed – Depending on the size and nature of your project, you may require development finance, a bridging loan or a buy-to-let mortgage.
• Choosing the right contractors – Experienced contractors in commercial-to-residential conversions may be better placed to anticipate challenges and deliver the project efficiently.
• Well-drafted contracts – This should define responsibilities and timelines to help reduce the risk of disputes.

Once your conversion is finished, you must complete the final compliance steps, including building control sign-off and obtaining energy performance certificates, before the property can be occupied or let.

Why does the right support matter?

From planning rules to contract obligations, commercial-to-residential conversions often involve a lot of turning cogs.

Managing these risks without specialist support can be overwhelming.

Our expert team can help you prepare the correct documentation and assess any potential risks early so your project remains compliant.

We can support you at every stage of the process and help you minimise delays and disputes so that you can achieve a successful conversion.

For further support or advice, contact our Commercial Property team today.

Family businesses often represent years of hard work and a legacy that many owners want to protect for the next generation.

However, not every family business survives after ownership is passed on and this can often be due to poor succession planning.

Family businesses may delay succession planning if passing on ownership seems far away or if uncomfortable conversations must be had. However, leaving it too late could be a costly mistake.

Jonathan Hol, an Associate in our Company Commercial Department, explains the importance of succession planning in a corporate or business entity.

What is succession planning?

A succession plan sets out how ownership and control of the business will pass on from one generation to the next or to new owners when an individual steps back.

A clear succession plan should consider ownership, management, timing and address the legal, tax and financial implications of passing on ownership. More often than not, private client as well as accountancy advice is required in most instances.

Family business succession planning often overlaps with personal estate planning and making sure these decisions are clearly documented can help your business’s continuity.

Why is succession planning needed?

Without a clear succession plan, disputes between family members can arise over ownership or leadership roles.

Some family members may wish to be involved in day-to-day management, while others may prefer an ownership role, a sale of the family business or merely an exit altogether.

Clear ownership structures that are supported by shareholders or partnership agreements can set out expectations and prevent future conflict.

It can even help preserve family relationships by setting expectations early.

Poor planning can also lead to unexpected tax liabilities and could even reduce the value of the business when it is passed on to the next generation.

Employees and customers may lose confidence if there is uncertainty about who is in control.

Business owners should consider succession planning if they wish to retain control over how and when the transition happens.

How do you prepare a succession plan?

Succession planning should ideally begin at least five years before your intended exit.

If your business is owned by multiple family members or you wish to pass on your ownership to a family member, you should consider reviewing shareholder agreements to set out how shares can be transferred and the responsibilities of each shareholder.

Wills should be updated alongside any corporate succession decisions, as an outdated Will can result in the ownership of business interests being handed over in a way you did not intend it to.

How can we support your succession planning?

Succession planning is not about preparing for retirement but protecting the future of your business.

Our professional team can help assess your current arrangements, draft or update shareholder agreements and advise on the most appropriate structure for transferring ownership.

We want to help secure the future of the business you have built and provide reassurance that your plans will be enforceable once you step back.

For more advice or support from our specialist family business team, please contact us.

Whether you agreed to a customer contract quickly or did not have time to formally document the terms, your business may have entered into a verbal agreement without realising.

Misunderstandings about what was agreed can quickly escalate and disputes can often arise when no written agreement is in place.

Although it is more challenging to untangle disagreements involving verbal contracts, you do still have the right to dispute them.

Our Manager of Dispute Resolution, Luke Morgan, investigates.

Are verbal agreements legally binding?

Verbal agreements are legally binding in the UK, provided they meet certain elements of a contract.

This includes:

• An offer being made by one party
• Acceptance of that offer by the other party
• Consideration, meaning an exchange of value under the contract
• Intention by both parties to create a legally binding agreement

If these conditions are met, a verbal agreement can be enforced just like a written contract.

Courts have increasingly upheld informal agreements, such as emails, text messages, WhatsApp or Snapchat messages, as evidence of legally binding contracts when the essential terms are clear.

This was proven in the Jaevee Homes Ltd v Fincham case, where WhatsApp messages were found to be evidence of a legally binding agreement.

Verbal contracts may fail to address warranties, delivery obligations, late payment penalties or termination clauses.

These omissions can often lead to disputes that require careful management and professional guidance to resolve.

How can you resolve a verbal agreement dispute?

When a dispute arises, your first step is usually to negotiate directly with the other party.

Open discussion may allow both sides to reach a mutually acceptable solution and preserve the business relationship.

This negotiation will also present you with an opportunity to formalise the agreement in writing and help prevent future misunderstandings.

If negotiation is unsuccessful, Alternative Dispute Resolution (ADR) can be pursued.

ADR involves mediation, where an independent third party helps the parties work toward an agreement and arbitration, where the third party adjudicates and makes a binding decision.

When negotiations or ADR are insufficient, the final option is to issue a claim in court for breach of contract.

Evidence is crucial in these situations to prove or refute the terms of the verbal agreement.

Courts, mediators and arbitrators will consider emails, letters, invoices, witness statements and other documentation when reviewing the claim.

How can we support your verbal agreement dispute?

Verbal contract disputes can be difficult, but our expert team can help assess the terms of your agreement and gather the necessary evidence to support your claim.

We can support you during negotiations or court proceedings and help you achieve a fair outcome that protects your interests.

To learn more about how we support you during a dispute, contact our team today.

If you are facing a workplace dispute or your employment is coming to an end, you may be offered a settlement agreement.

This legally binding contract between you and your employer often comes with a financial payment in exchange for waiving certain rights.

It can be difficult to know whether to accept a settlement agreement, as what you sign could impact your ability to pursue new career opportunities.

Our employment law specialist and Associate Solicitor, Kristie Willis, investigates what your rights are and whether it could be the right choice for you.

What is a settlement agreement?

A settlement agreement usually requires an employee to waive their rights to bring claims against their employer, including unfair dismissal or discrimination.

It is a legal requirement to receive independent legal advice before signing a settlement agreement for it to be valid.

Settlement agreements can be used in a variety of situations, including workplace disputes, such as grievances or disciplinary matters, or mutual exits, where both parties agree to part ways.

Redundancy is also a common scenario where you may face a settlement agreement, as this can allow the employment to conclude efficiently and without delay. You should receive an enhanced redundancy payment for entering into the agreement.

However, a settlement agreement is not always planned and can sometimes arise unexpectedly.

For example, you might be called into a meeting and told your role is no longer required. You may even be offered it during an ongoing dispute where Employment Tribunal proceedings are being considered.

You do not need to have started a tribunal claim for a settlement agreement to be proposed.

What is included in a settlement agreement?

Most settlement agreements will contain:

• A termination or compensation payment, often referred to as an ex-gratia payment
• Payment in Lieu of Notice (PILON), where notice is not worked
• An agreed reference, which can be valuable for future job applications
• Confidentiality and non-derogatory comments clauses
• Accrued holiday pay
• Return of company property and agreed exit arrangements

There may also be additional clauses covering Intellectual Property (IP) and post-termination obligations, depending on the seniority of your role or the circumstances.

When is a settlement agreement the right choice?

There is no right answer regarding settlement agreements and they depend entirely on whether the terms are beneficial for you and your career.

Settlement agreements are voluntary and you do not have to accept the first offer made.

You must carefully consider your personal circumstances, the terms being offered and any alternative options available to you. This can be considered alongside your legal adviser, who can discuss the options with you.

A settlement agreement may be the right choice if the financial compensation reflects the value and length of your role, along with your likely loss.

It can also be a good option if you value certainty and a clean break rather than pursuing Employment Tribunal proceedings, which can be time-consuming, costly and stressful.

When could a settlement agreement not be the right choice?

Settlement agreements are not suitable for everyone and you may not wish to go down that route if the financial offer is significantly lower than what you might recover through a legal claim.

It may also be inappropriate if the agreement contains restrictive clauses that could limit your future employment opportunities. Your legal adviser will be able to negotiate the clauses contained in the agreement.

You should never feel pressured to sign an agreement and you should always be given enough time to assess the terms.

With the right legal support, you can avoid being caught out by overcomplicated wording and make an informed decision.

How can we support you during a settlement agreement?

Settlement agreements can feel overwhelming and waiving your rights is a decision you should not take lightly.

Our professional team can help assess whether the terms of your agreement are fair and whether compensation is the most beneficial outcome, or if pursuing a tribunal claim is more suited to your circumstances.

We will also communicate with your employers on your behalf and negotiate improved terms, such as a higher settlement payment or the removal of unreasonable restrictions.

You should never feel pressured into taking a settlement agreement and we are here to support you during the entire process.

For further advice or support, contact our Employment Law team today.

With rising property values and living costs, equity release has become a popular way for people to improve their financial flexibility later in life.

Equity release allows homeowners aged 55 and over to access some of the value tied up in their property without having to sell it or move out.

It may sound all positive on paper, but equity releases do come with legal implications that you must be aware of.

Our Residential Property expert, Erin Cronin, explains how equity release works and how legal support can protect your interests.

What is equity release?

Equity release is a financial option that helps homeowners release tax-free cash from the equity in their home.

Equity is calculated as the value of your property minus any outstanding mortgage or loans secured against it.

To qualify for equity release, you will usually need to:

• Be aged 55 or over
• Own a property worth at least £70,000 which is in reasonable condition
• Have little or no existing mortgage (any outstanding borrowing is normally repaid from the released funds)

Equity release is often used to supplement retirement income, pay off debts, fund care costs, make home improvements or provide financial assistance to children or grandchildren.

What types of equity release are there?

There are two main types of equity release products available in the UK, lifetime mortgages and home reversion plans.

What is a lifetime mortgage?

A lifetime mortgage is the most common form of equity release and works similarly to a traditional mortgage.

However, instead of making monthly repayments, the interest is usually added to the loan over time. These can come in various forms, such as a lump sum, a drawdown facility or an interest-only/optional repayment.

You will retain ownership of your home and when you pass away or move into long-term care, the loan, plus interest, will be repaid.

Lifetime mortgages can offer:

• A no negative equity guarantee, meaning you will never owe more than your home is worth
• Fixed interest rates for life
• Options to make voluntary interest payments to reduce the overall costs

Most importantly, a lifetime mortgage allows you to continue to live in your home for the rest of your life.

What is a home reversion plan?

A home reversion plan involves selling all or part of your property to a provider in return for a tax-free lump sum or regular payments.

You will receive a lifetime lease, which allows you to remain in the property rent-free for the rest of your life.

When the property is eventually sold, the provider receives their agreed share of the sale proceeds.

Home reversion plans are less common today, but may still be appropriate in certain circumstances.

How much equity can you release from your property?

The amount of equity you can release from a property depends on:

• Your age (and your partner’s age, if applicable)
• The value of your property
• Your health and lifestyle
• The type of equity release product chosen

Homeowners can typically release between 20 per cent and 55 per cent of their property’s value, with the percentage increasing as you get older.

However, some health conditions, such as diabetes or heart disease, may allow you to release a higher amount.

Is equity release right for you?

Equity release is not the right choice for everyone and there are some considerations to bear in mind.

You must be aware that it can affect the amount of money left for beneficiaries; interest accumulates over time and early repayment charges may apply.

How can we help you apply for equity release?

If you think equity release could be right for you, you must seek legal support.

Our experienced property law team can help review your equity release and explain your options and legal rights in clear terms.

We want you to fully understand the implications so you can make an informed decision that protects your interests and your future.

To learn more about equity release, contact our residential team today.

When a loved one passes away, most families want to honour their wishes and lay them to rest with dignity.

However, if no clear funeral or burial plans were put in place or if family members cannot agree on what should happen, it can be difficult to know where to turn.

Disagreements at such an emotional time can quickly escalate and families may be unsure of their legal rights.

Our Head of Personal Litigation, Erin Duffy, explains what you need to know when a funeral or burial dispute arises.

When can funeral and burial disputes arise?

Funeral and burial disputes commonly arise due to differing family wishes.

Family members may disagree on:

• Whether a loved one should be buried or cremated
• Where the burial should take place
• The nature of the service

Who should be involved in the arrangements

For blended families, these tensions can be even more likely if there are children from different relationships holding conflicting views.

Many people may assume that the next of kin automatically has the right to make decisions about funeral wishes.

However, this is not always the case and misunderstandings about who has the legal right to control funeral arrangements can quickly lead to disputes.

Disputes do not always arise over the nature of the service, but sometimes over the costs. Funerals can be expensive and disagreements can occur over budgets or who holds responsibility for these payments.

In addition, religious or cultural differences within families can lead to different expectations about how a loved one should be laid to rest.

What does the law say about funeral and burial rights?

It is common law that there is no property in a corpse, meaning a body cannot be owned or gifted.

The law focuses on who has the right and duty to dispose of the body. That person has the authority to make decisions about funeral and burial arrangements from the moment the person passes away.

Funeral wishes expressed in a Will are not legally binding, but they may be taken into account if a dispute arises.

What is the legal order of priority?

The legal order of priority as to who has the right to dispose of a body is:

1. Hospital authority – In rare cases where the body is infectious
2. Coroner – This is temporary, while the cause of death is investigated
3. Executor – If the deceased left a valid Will
4. Intestacy hierarchy – If there is no Will (starting with a spouse or civil partner, followed by children, parents and siblings)
5. Local authority – If no one else is willing or able to act

How can funeral and burial disputes be resolved?

Many funeral and burial disputes can be resolved through early negotiation or mediation.

Mediation allows families to reach an agreement without court involvement and is often quicker, less costly and far less damaging to family relationships.

If a resolution cannot be achieved, court intervention may be necessary.

The court’s primary concern is that the body is disposed of with dignity and respect and without unnecessary delay.

Court proceedings can be stressful and expensive and should be considered as a last resort.

How can we support you during a burial dispute?

If you are facing a funeral or burial dispute, the legalities can feel overwhelming.

Our experienced solicitors provide you with compassionate and clear guidance during this difficult time.

We can explain your legal rights, advise executors and family members impartially and assist with negotiation so you can come to an agreement you feel at peace with.

If you need support with a funeral or burial dispute, contact our team today.