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A boutique property law firm, delivering tailored solutions...

From Residential and Commercial Conveyancing and in-depth advice on Stamp Duty Land Tax to expert guidance on Anti-Money Laundering and Sanctions Regulations and our expertise in Foreign Source of Funds, commonly utilised by Non-UK Resident Buyers and Property Developers, we provide comprehensive, tailored support across every facet of property law. 

Understanding the complexities in Buying and Selling properties with Foreign Source of Funds.

At RSL LAW, our expert property lawyers bring extensive experience in assisting resident and non-UK resident buyers, property developers, and investors navigating these challenges. Whether you’re utilising foreign funds, bridging loans, or private investor finance, we are here to provide seamless support. Let us handle the intricacies of your transaction, so you can focus on what matters most—your business.

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Case Studies

– How we have helped our clients

Foreign Source of Funds and Complexed Funding Structures

RSL LAW recently assisted an overseas buyer, whose company based in China was financing the purchase of an apartment in London. As the purchase funds were being transferred from the client’s company bank account, RSL LAW undertook comprehensive legal due diligence on both the company and the client, who was the sole director and shareholder of the company.

The transaction presented several challenges, requiring the expertise and diligence of the RSL LAW Team:

  1. Verification of Corporate Structure and Documentation:

The company’s corporate structure and documentation were intricate, involving layers of ownership and operations governed by Chinese corporate law. Our Team carefully analysed the documents to verify their authenticity and ensure compliance with the UK Anti-Money Laundering Regulations (AMLR). This included translating and interpreting foreign legal and financial documents, ensuring they met the standards required for a UK property transaction.

  1. Anti-Money Laundering (AML) Compliance:

A key step was conducting extensive AML checks on both the company and the client. Using advanced third-party databases and internal tools, RSL LAW verified the company’s financial integrity, the legitimacy of its operations, and the background of the client as its sole director. This rigorous process safeguarded the transaction against potential regulatory risks and provided a solid foundation for compliance.

  1. Assessing the Financial Stability of the Company:

The company’s financial statements, prepared under Chinese accounting standards, posed another challenge. RSL LAW coordinated with financial experts to convert the statements into UK accounting standards. This allowed our Team to assess the company’s profitability and financial stability accurately. We also reviewed dividend payments, company resolutions, and other financial records to confirm the availability of funds for the property purchase.

  1. Regulatory Challenges with Cross-Border Transactions:

The transaction highlighted the complexities of dealing with cross-border transfers of significant funds, particularly from jurisdictions with strict currency controls and differing financial regulations. RSL LAW ensured that all documentation met the necessary UK standards, working closely with banks and financial institutions to avoid delays or issues during the transfer of funds.

  1. Client Support and Strategic Advice:

Beyond the compliance aspects, RSL LAW provided strategic advice to the client, ensuring they understood the intricacies of UK property law and the implications of funding a purchase through an overseas company. This support gave the client confidence in proceeding with the transaction and ensured their interests were fully protected.

Through meticulous due diligence, expert coordination, and proactive problem-solving, RSL LAW ensured the property transaction proceeded smoothly. The overseas lender and the client were verified as financially stable, AML compliant, and legally sound, enabling the funds to be transferred and the purchase to be completed without issue.

This case underscores RSL LAW’s unmatched expertise in handling foreign sources of funds and complex funding structures.

Fast-Tracked Property Exchange with Complex Source of Funds

RSL LAW recently handled a property exchange for a client who needed to complete the transaction within a demanding 10-day deadline. The case was further complicated by a complex Source of Funds (SoF), which required rigorous verification under UK AML Compliance Regulations. Additionally, the developer insisted on receiving immediate confirmation of the client’s SoF, adding significant time pressure to the process.

Despite these challenges, RSL LAW successfully resolved several critical issues, ensuring the transaction was completed within the required timeframe:

  1. Expediting Source of Funds Verification:

The client’s Source of Funds involved a multi-layered structure, including transfers from both personal accounts and overseas business interests. RSL LAW’s expert team quickly conducted a detailed SoF investigation, liaising with financial institutions and cross-referencing documentation to verify the legitimacy of the funds. Utilising our advanced third-party databases, we completed comprehensive Anti-Money Laundering (AML) checks on all parties involved to satisfy the developer’s stringent requirements.

  1. Accelerating Local Authority Searches:

One of the most time-sensitive steps in a property exchange is the Local Authority search, which often takes several weeks to complete. To meet the tight deadline, RSL LAW leveraged its extensive network and directly coordinated with the relevant authorities, ensuring the search was prioritised and expedited. Our proactive approach cut down the processing time significantly, removing a major obstacle to the exchange.

  1. Proactive Funds Management:

Recognising the importance of timely funds transfer, the RSL LAW Team requested the required funds from the client well in advance of the deadline. We provided clear instructions and worked closely with the client’s bank to prevent any delays during the transfer process. This foresight ensured that all funds were in place before the exchange, eliminating potential last-minute complications.

  1. Streamlined Contract Signing Process:

Given the limited timeframe, we pre-defined and streamlined the contract signing process. By preparing all necessary documents ahead of time, providing clear guidance to the client, and arranging for prompt signing and return of contracts, we avoided delays that might have jeopardised the exchange.

  1. Comprehensive Communication and Coordination:

Throughout the process, RSL LAW maintained constant communication with all parties involved, including the client, the developer, financial institutions, and the Local Authority. By acting as the central point of coordination, we were able to address any emerging issues swiftly and ensure all parties were aligned to meet the deadline.

  1. Balancing Speed with Due Diligence:

While the timeframe was tight, RSL LAW never compromised on compliance or due diligence. Every step of the process, from the SoF investigation to the final contract review, was handled with precision and attention to details, protecting the client’s interests while adhering to UK regulatory requirements.

Ultimately, RSL LAW successfully completed the property exchange within the required 10- day deadline. This achievement underscores our ability to handle high-pressure transactions with complex funding structures, delivering exceptional results for our clients.

RSL LAW’s Expertise in New-Build Purchases: Resolving Complex Challenges for International Buyers

RSL LAW recently assisted an international client with a complex background in the purchase of a new-build property. Having already paid the reservation fee, the client was faced with an exchange deadline of just 28 days, a timeframe made more challenging by the developer’s legal team raising numerous questions about the client’s Source of Funds (SoF).

This transaction showcased RSL LAW’s expertise in managing new-build purchases, particularly when dealing with intricate compliance and financial verification requirements.

Here’s how we resolved the challenges and ensured the successful completion of the purchase:

  1. Drafting a Comprehensive Compliance Report:

The developer’s legal team expressed concerns about the complexity of the client’s SoF, requiring detailed evidence of legitimacy of funds. RSL LAW quickly conducted an in-depth investigation into the client’s financial background, reviewing documentation from multiple jurisdictions. We prepared a meticulous compliance report that addressed each concern raised by the developer’s team. This report provided clear explanations, supporting evidence, and demonstrated the legitimacy of the funds in line with UK Anti-Money Laundering Regulations (AMLR).

  1. Meeting the Tight Exchange Deadline:

The 28-day deadline from the reservation fee payment added significant pressure to the process. To meet this timeline, RSL LAW adopted a proactive and systematic approach:

  • Early Preparation: We requested all required documents from the client at the outset, anticipating potential queries from the developer’s legal team.
  • Efficient Communication: RSL LAW maintained constant contact with the developer’s solicitors to resolve questions swiftly, avoiding delays.
  • Streamlined Processes: We optimised the contract drafting, review, and signing processes to ensure that the exchange could be completed on time without compromising on accuracy or compliance.
  1. Addressing Developer Concerns:

Developers of new-build properties often require assurances regarding the buyer’s ability to complete the purchase, particularly when SoF complexities arise. RSL LAW not only addressed these concerns through the compliance report but also provided strategic advice to the client on presenting their financial position effectively. This instilled confidence in the developer, securing their approval to proceed with the purchase.

  1. Ensuring a Seamless Completion:

By completing the contract exchange within the 28-day timeframe, RSL LAW ensured that the purchase progressed without delay, protecting the client’s reservation fee and securing their investment. Our thorough due diligence and precise handling of the SoF complexities prevented any disputes or issues that could have jeopardised the transaction.

Expertise in Lease Extensions – Securing Property Rights for the Long Term

Lease extensions are a critical aspect of property ownership, particularly for those looking to protect and enhance the value of their investments. RSL LAW recently assisted a client in successfully extending their lease, navigating complex negotiations and legal requirements to achieve a favourable outcome.

Overview

The client sought to extend their lease to secure their property rights and protect the long-term value of their investment. Lease extensions require strategic negotiations, compliance with legal formalities, and the expertise to navigate any disputes between the tenant and landlord.

Challenges

The primary challenge was agreeing on a fair premium with the landlord for the lease extension. This negotiation was pivotal, as it would directly impact the client’s financial position and the value of the extended lease. Additionally, the process required strict adherence to statutory procedures under the Leasehold Reform, Housing and Urban Development Act 1993, including serving the necessary legal notices within prescribed timeframes.

RSL LAW’s Approach and Solutions

  1. Engaging a Qualified Surveyor:

Recognising the importance of an accurate valuation, RSL LAW recommended the client engage a reputable surveyor to assess the property and propose a fair premium. This provided a strong foundation for negotiations and ensured the client was fully informed about the value of their lease extension.

  1. Drafting and Serving the Section 42 Notice:

RSL LAW promptly prepared and served the Section 42 Notice to initiate the statutory lease extension process. The notice outlined the client’s proposed premium, lease terms, and the required statutory period for the landlord’s response. This step was critical in setting the negotiation timeline and demonstrating the client’s readiness to proceed.

  1. Collaborative Negotiations with the Landlord:

Upon receiving the landlord’s counter notice, RSL LAW led the negotiation process, working collaboratively to agree on a premium that satisfied both parties. Our expertise in lease extension negotiations allowed us to advocate effectively for our client while maintaining a professional and constructive relationship with the landlord’s legal team. Throughout this phase, the surveyors were available to assist in resolving any disputes regarding the premium, ensuring a fair agreement was reached.

  1. Completion and Registration:

Once the terms of the lease extension were finalised, RSL LAW prepared the necessary documentation to complete the transaction. We ensured the extended lease was properly executed, stamped, and registered with the Land Registry. This step secured the client’s legal ownership rights under the new lease terms.

Result

The client successfully secured their lease extension at a favourable premium, safeguarding the long-term value of their property investment. By expertly managing the process from start to finish, RSL LAW ensured the transaction was seamless and compliant with all legal requirements, providing the client with peace of mind and confidence in their investment.

Expertise in Creative Property Investment Strategies – Lease Options & Options to Purchase

Lease Options and Options to Purchase are increasingly popular tools for property investors looking for flexible and strategic ways to secure property without committing to an immediate purchase. RSL LAW recently assisted a client in establishing a lease option agreement that provided them with future purchasing flexibility while protecting their interests.

Overview

Our client sought to enter into a lease option agreement, granting them the right, but not the obligation, to purchase a property at a future date. This arrangement required careful negotiation and precise drafting to ensure the client’s objectives were met and all contingencies were addressed.

Challenges

The transaction posed several challenges, including negotiating key terms such as the purchase price, option fee, and financial responsibilities during the lease period. Additionally, it was critical to establish clear clauses governing the assignment of the agreement and the protection of the client’s interests in the property before the eventual purchase. RSL LAW’s Approach and Solutions

  1. Facilitating Heads of Terms Discussions:

RSL LAW began by facilitating discussions between the client and the landlord to outline the fundamental terms of the agreement, including:

  • The purchase price to be locked in for future acquisition.
  • The option fee payable to secure the agreement.
  • The duration of the lease option period.

This early-stage negotiation ensured that both parties were aligned, minimising potential disputes later in the process.

  1. Clarifying the Assignment Clause:

One of the client’s priorities was the ability to assign the lease option agreement to a third party before completing the purchase. RSL LAW carefully negotiated this clause, ensuring the client retained flexibility while satisfying the landlord’s concerns about potential future assignees. This clause provided the client with the opportunity to transfer the agreement should their investment strategy evolve.

  1. Defining Financial Responsibilities:

RSL LAW worked with both parties to define who would bear financial responsibilities during the lease option period. Key terms included:

  • Mortgage Payments: Clarifying whether the landlord would retain responsibility for any existing mortgage obligations.
  • Building Insurance: Ensuring the property was adequately insured and determining who would handle the premiums.
  • Maintenance and Upkeep: Specifying which party would be responsible for repairs and property management during the lease term.

By addressing these details, RSL LAW minimised potential conflicts and ensured the agreement was clear and comprehensive.

  1. Drafting and Finalising the Agreement:

Once the terms were agreed upon, RSL LAW drafted the lease option agreement with precision, ensuring compliance with UK property laws. We collaborated with the landlord’s solicitors to finalise the document, incorporating protective measures for the client, including conditions for exercising the option and remedies for breach of agreement.

  1. Protecting the Client’s Interest at the Land Registry:

To safeguard the client’s interests, RSL LAW registered a restriction at the Land Registry. This ensured that the property could not be sold or otherwise disposed of without the client’s knowledge or consent, providing security for the lease option agreement.

Result

The Lease Option Agreement was successfully executed, granting the client flexibility to purchase the property at a later date under terms that were favourable and clearly defined. By addressing every detail and potential risk, RSL LAW ensured the client’s investment was protected, while also providing the adaptability needed for future decisions.

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