Claiming a forfeited deposit
In a standard contract for the sale of a property there is a presumption that a seller will have the right to retain the deposit if the buyer defaults. The buyer will forfeit the deposit unless he can prove to the court that there are special or exceptional circumstances that will justify the court exercising its discretion to return the deposit. Buyers should ask their legal advisers to consider modifications to the contract to ensure they will not forfeit the deposit in situations caused by the current economic climate such as a forced default by reason of their lender withdrawing the mortgage offer after exchange of contracts, as it seems unlikely that the courts would consider the current recession to be an exceptional circumstance to justify an exercise of the jurisdiction to make an award for return of a deposit unless the seller has acted unconscionably, or the failure to complete is partly attributable to the seller.
Inside this issue:
Not paying down your borrowings first: Rob offers his advice
Claimed your forfeited deposit: Some helpful guidance on this thorny issue
Holiday Alowances: When do you adjust yours?
Wealth Creation Specialist - March 2009 Newsletter
Holiday allowances
On returning to work in the New Year, many will be reaching for the travel brochures to plan their next holiday getaway. Now would be a good time to ensure that your employee’s (or your own) holiday entitlement has been correctly calculated, especially as many employees’ entitlement may need to be increased due to a change in the minimum holiday entitlement, which takes effect later this year.
The current minimum statutory holiday entitlement is 4.8 weeks (24 days per annum for an employee working a normal 5 day week). This entitlement has applied since 1 October 2007 and is inclusive of Statutory Bank Holidays.
A further increase in entitlement from 4.8 weeks to 5.6 weeks (28 days per annum) applies from 1 April 2009. Where the holiday year end is not 31 March, then employers must pro-rate the entitlement. For example for an employee working a normal 5 day week with a year end of 31 December 2009 then their minimum holiday entitlement would be:
3 months x 4.8 weeks = 6
9 months x 5.6 weeks = 21
Total entitlement 27 days
The Business Link website gives a link to enable an individual’s entitlement to be calculated. This is particularly helpful for part time employees.
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The first in a series of Financial Mistakes that could at best be costing you hard earned money and at worst leave you exposed to hours of wasted time and worry.
You could waste years of your life paying interest if you get this one wrong!!
You invest £6,000 in an ISA because it’s tax efficient right? So how much will it make? Let’s say 5% a year after any charges - £300 a year. Good result?
You pay lets say 6% on your mortgage and probably more on plastic, overdrafts and loans… you have a really great deal and only pay 4.5%. So the cost of borrowing £6,000 is £270 for the year. But hang on don’t you pay tax? If you paid 20% Income Tax that £270 really lost you £337.50. You may as well have burned £67.50! And that is for just one year!!
If you owe money that you get charged for, pay it back before you even think about investing! Even if you are offered something on interest free terms it means there is room to haggle if you are a customer who can pay cash – it is what businesses are hungry for.