Laura Conduit of Farrer & Co on navigating the legal side of luxury property
LPF Member, Laura Conduit, a leading Partner at Farrer & Co, recently gave an excellent interview with PrimeResi Journal. With years of experience advising on high-value residential transactions, Laura continues to be a trusted figure in the world of luxury property law—offering insight into the evolving needs of UHNW clients and the legal complexities that come with buying and selling prime real estate.
In her conversation with PrimeResi, Laura offers a behind-the-scenes look at the legal side of luxury property, from navigating evolving buyer expectations to managing cross-border complexities. Her insights highlight the importance of proactive legal guidance in an increasingly fast-paced and competitive market.
For the complete article and detailed insights, visit PrimeResi!
What is the main reason why high-end transactions fall through, and how can buyers, sellers and advisors prevent this from happening?
The reason that agents can be so keen to get a transaction exchanged ahead of a weekend is not so that they can get stuck into their Friday night beers, but rather because they know all too well that time kills deals! Where buyers and sellers are given additional time to think about a transaction, there is always a possibility that doubt creeps in and they may decide that they are overpaying or underselling.
In a competitive market, parties are much more likely to take a view on any issues identified. In a quieter market it is critical that sellers are able to present properties in perfect condition, whether that is from a survey perspective or a comprehensive legal due diligence pack. We ask sellers to instruct us ahead of finding a buyer so that we can prepare the best possible information pack to ensure a smooth transaction.
Transactions can fall through because of these issues, but most problems do have a solution, so really it is a lack of willingness from one party to find that solution that causes a transaction to fall through. Particularly in super prime deals it can also come down to the personalities of the parties and it is often the case that egos get in the way, then it really is down to the advisor to keep things on track.
“In a quieter market, it is critical that sellers are able to present properties in perfect condition, whether that is from a survey perspective or a comprehensive legal due diligence pack”,
International buyers play a major role in the PCL market; have there been any significant shifts in your client base over recent years?
Different nationalities of international buyers tend to come in waves. A few years ago, I had lots of Chinese clients and was constantly having reports translated into Mandarin or Cantonese and was a regular user of WeChat rather than WhatsApp. One of my partners is convinced that the Turkish Euro is headed this way
Obviously in the last couple of years there has been less activity in the Russian market. European clients have always been there as well and that seems to be continuing. My own client base has always been very international and very diverse, I have a particular penchant for clients from the USA and as a firm we also focus on the Middle East, Hong Kong, and Singapore. One of my partners is convinced that the Turkish Euro is headed this way, so watch this space!
The process of buying and selling in the UK is often criticised for being slow and unwieldy; how could policymakers significantly improve the way things work?
The process does not need to be slow and unwieldy when in the right hands, however it can be really challenging when there is a chain involved. My international clients are often baffled by our process and particularly by the concept of gazumping! While it is not really the market for that right now, it is still occasionally happening. Over the years various attempts to streamline have been made from digitalising the Land Registry through to the redundant, failed HIP packs and the more recent attempted “upgrade” to the new 32-page property information form.
In order to make real significant change, the system would require a complete overhaul, which I just cannot see happening. Therefore, what we can do as advisors is ensure that clients are informed, communicate well and navigate the process as smoothly and clearly as possible.
Farrer & Co’s Lincoln’s Inn Fields home
What are the biggest policy changes on the horizon that are likely to impact the UK resi market?
There is plenty to choose from here! Hopefully we will see a gradual reduction in interest rates to help boost buyer demand. We may see an uptick in demand for prime central London rental properties too if non-UK residents prove reluctant to commit to buying UK property as a result of the new tax regime in force from 6 April 2025.
The Renters’ Rights Bill and changes to EPCs and energy efficiency targets are expected to come forward this year which will also impact the rental market. Finally, it is hard to ignore the ongoing leasehold reform and the government’s recently confirmed commitment to move towards commonhold (as opposed to leasehold) being the default tenure for flat ownership.
How would you summarise conditions in the prime resi market right now, and do you have any predictions for 2025 and beyond?
It’s tough out there. Our team has performed really well in what has been a noticeably quieter market. We are also specialist secured lending lawyers and act for many of the private banks who require separate representation on mortgages for transactions of this nature. That market is rather discretionary in that clients who do not need the mortgage finance do not take in when interest rates are high, and therefore there has been a steep reduction in our secured lending workstream.
It can be hard to cut through the noise when agents are notoriously good at self-promotion and researchers are paid by corporates in an industry that thrives on positivity! My crystal ball would predict a continued flow of US buyers coming to London, a reduction in interest rates easing deal flow (though perhaps not in the immediate future) and a continuation of collaboration between agents who now have a greater understanding that long term relationships are key, and that collaboration is more fun than competition!
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