Security over a cash deposit held with a third party bank can be created by mortgage or charge. In practice, when taking security over cash deposits in commercial transactions a charge is the most commonly used form of security where security is being granted in favour of a third party bank. For a detailed explanation of how to take security over bank accounts, see Practice Note: Taking security over cash deposits in bank accounts. Notice of a charge over a cash deposit should be served on the account bank where the deposit is held. The notice will instruct the account bank

What is an asset protection trust? Commentary, available in Lexis®Library from Finance and Law for the Older Client on Asset Protection Trusts, states that: 'An asset protection trust is a trust set up in the lifetime of a settlor or settlors (where there are two settlors they would generally be a married couple or a couple within a civil partnership). The main asset of these trusts is usually the family home although other assets are sometimes placed in trust too. Unlike other trusts which a person may establish, for example for tax planning purposes, within an asset protection trust the settlor or settlors retain an interest in the trust. That is usually by way of a life tenancy but in some cases the settlor(s) will form part of a class of potential beneficiaries under a discretionary trust. The trust will usually also provide, either at the end of the life interest or, if discretionary,

Section 57 of the Leasehold Reform, Housing and Urban Development Act 1993 (LRHUDA 1993) covers the terms on which a new lease to the tenant upon an application by way of a section 42 notice is granted. LRHUDA 1993, s 56 provides that where a qualifying tenant has the right to acquire a new lease of his flat and gives notice in accordance with section 42, the landlord is bound to grant and the tenant is bound to accept in substitution for the existing lease and upon payment of the relevant premium, a new lease at a peppercorn rent for a term expiring 90 years after the term of the existing lease. LRHUDA 1993, s 57(3) provides that the new lease should provide, either within the lease or by a collateral agreement, for the continuance

Would a service charge not reserved as rent count as rent for enlargement purposes? Enlargement is a process governed by section 153 of the Law of Property Act 1925 (LPA 1925) which enables a tenant unilaterally to obtain a freehold estate out of their leasehold term of years. The leaseholder does this by execution of a deed declaring the enlargement which, once registered with HM Land Registry, has the effect of ousting the freeholder in respect of the demise. Only certain leases can be enlarged. It is necessary for the initial term of the lease to have been at least 300 years with at least 200 years outstanding. The rent payable under the lease must be no more than a peppercorn or, if substantive rent is due under the lease it must

The service of a second section 21 notice would not, in itself invalidate a prior section 21 notice. There is a risk that the service of the second notice may amount to a representation by the landlord that the first notice is invalid or that the landlord will not rely

Affirmation of a contract arises in circumstances whereby there has been a repudiatory breach of contract, meaning a breach which entitles the innocent party to treat the contract as being disregarded and so refuse to be bound by its terms, or a misrepresentation which entitles the innocent party to rescind the contract. When there has been a repudiatory breach, the innocent party can accept the breach and treat the contract as at an end, which would need to be communicated by the innocent party, or they can affirm the contract. Affirmation of a contract is treating the contract as continuing, which can be express or implied. If the innocent party acts in a manner that shows a clear and unequivocal expression of an intention to continue with the contract, then affirmation can be implied. An innocent party can only affirm a contract if it chooses

The Land Registration Act 2002 (LRA 2002) created a new regime, set out in Schedule 6 to the Act, in relation to registered land. Adverse possession requires: • actual possession of the land • with the necessary intention to possess that land, and • without the owner’s consent For further general information on adverse possession, see our Lexis+® UK Practice Note: Adverse possession—overview. Actual possession Factual possession is shown by the squatter exercising a certain degree of physical control of the land, such that it is the same degree of control that an occupying owner might have been expected to deal with it, and that no one else

In answering this Q&A, we have assumed that the proposed second charges mentioned are against the directors’ own residential property. Under section 19 of the Financial Services and Markets Act 2000 (FSMA 2000) a person cannot carry out a regulated activity, or purport to do so, in the UK unless they are either an authorised person (ie authorised by the Prudential Regulation Authority and/or the Financial Conduct Authority (FCA)), or an exempt person (eg by being an appointed representative). For an overview of the regulated activities regime in the UK, see Practice Note: What are regulated activities? As you can see in this Practice Note, activities are regulated if they are of a ‘specified kind’ (ie specified by the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, SI 2001/544 (RAO 2001)) which is carried on by way of business. For more information

Tier 2 (General) migrants applying for entry clearance, leave to enter or leave to remain must not, subject to limited high-earner and other exceptions, have held leave to enter or remain as a Tier 2 migrant at any time during the 12 months immediately preceding their application. This is known as the ‘cooling-off period’ and, for Tier 2 (General) visa applications, is found at the Immigration Rules, Part 6A, para 245HB(g): ‘(g) Except where the period of engagement recorded by the Certificate of Sponsorship used in support of such entry clearance or leave to remain was granted for a period of three months

This Q&A considers whether family members of Tier 2 (Intra-Company Transfer (ICT)) migrants are required to follow the 12-month cooling-off period requirement, if they choose to make a further dependant application or apply as a main Tier 2 applicant. Tier 2 (ICT) migrants applying for entry clearance, leave to enter or leave to remain must not—subject to limited high-earner and other exceptions—have held leave to enter or remain as a Tier 2 migrant at any time during the 12 months immediately preceding their application. This is known as the cooling-off period and, for Tier 2 (ICT) visa applications, is found at Immigration Rules, Part 6A, para 245GB(d): ‘(d) Except where the period of engagement recorded by the Certificate of Sponsorship used in support of such entry clearance

The Share Incentive Plan (SIP) would be an employees’ share scheme (ESS) for Companies Act 2006 (CA 2006) purposes and the funding would be to enable employees to hold free/matching shares through the SIP trustee (and therefore would be for the purposes of an ESS in accordance with CA 2006, s 682(2)(b)).

An environmental permit can be surrendered if the holder of the permit no longer needs it or they want to reduce the area of land covered by it. The latter is done by a partial surrender and the existing permit conditions may consequently have to be altered by the regulator. There are two different methods of surrender—notification or application to the regulator. Notification to the regulator is limited to operators of Part B installations (except to the extent they relate to a waste operation), mobile plant, solvent emission activities, stand-alone water discharge activities, stand-alone groundwater activities, stand-alone flood risk activities (except where a permit condition operates beyond the time when the activity is complete), medium combustion plant, and specified generators. Any other operators wishing to surrender their permit must do so by application, which must then be accepted