The UK is no longer worried about Brexit
The storm caused by Brexit seems to have settled in the UK. In other news, British citizens residing in Spain should pay attention to their wills and mortgages now more than ever, following an ECJ judgment on floor clauses.
This week at Del Canto Chambers, the UK has been the main source of information: the future of its commercial relations is more dependent on the direction that British politics is taking post- referendum (given the decision to leave the European Union) than the actual state of its economy.
In addition, our Managing Partner, Leon Fernando del Canto, had an article published in PrimeResi.com – an online journal for the UK’s ‘prime property’ industry. The piece analysed the effects on British citizens who own a second home in Spain, following the stance taken by the Advocate General in the ECJ’s decision on floor clauses.
British expats would do well to review their mortgages, as they may now find that they are entitled to a re-imbursement from interests paid dating back to 9 May 2013; these were deemed to have been unfairly charged in the ECJ’s judgment.
Our Managing Partner was also featured in British newspaper, City AM, having written an article discussing increased M&A activity in the UK, despite many predicting a slowdown following the referendum.
We would also like to highlight that the blog Blogsdederecho.com has referred to the design and content of our website as “attractive and innovative” – a review we are particularly pleased with, given how relatively new it still is. This also encourages us to continue working hard to ensure that Del Canto Chambers is seen as a go-to blog on all legal matters.
Back to Britain, it seems that Brexit has tested the strength of the British economic system. It has not all been bad news, and business opportunities in London have by no means come to a standstill following the UK’s vote to leave the EU.
In this sense, economic relations with Qatar and the Gulf countries could be strengthened. These countries, which are in need of diversifying their economies, may think that a weaker pound will encourage them to buy assets in the UK at lower prices. Not having to rely on the EU to reach agreements with the Gulf countries will facilitate negotiations.
The Bank of Santander does not seem to mind that Britain is leaving the EU, given its recent submission to buy Williams & Glyn, a subsidiary of Royal Bank of Scotland (RBS).
Our lawyer Raul del Canto analysed the consequences facing British citizens residing in Spain should they pass away without having specified in their wills what should happen to their inheritance. (Read article Testament and Death in Spain: legal consequences).
The Spanish General Directorate of Registries and Notaries accepted the conditions of the will of a deceased British national, applying English law. In spite of EU Regulation 650/2012 which states that the inheritance procedures followed should be those of the country where the deceased resided (in this case, Spain).
In Spain, private clients also have reason to rejoice. The National Statistics Institute (INE) reported that home sales and purchases had risen 19.4% year last May, so the Spanish real estate sector can breathe a sigh of relief.
This has been the trend over the past five consecutive months now. The market for second-hand housing is the most active, although sales of new homes are steadily on the rise.
We hope to see you again in a week’s time. Meanwhile, all of us at Del Canto Chambers aim to continue building a legal blog that meets the quality you deserve. Until next time.
Xavier Nova (@xavinova)
Director of Del Canto Chambers