Brexit

News Posted 24/06/16
Thomson Snell and Passmore comment on the impact for commercial property and family law.

Commercial property

Laura Keatley, senior associate in the commercial property team at Thomson Snell and Passmore said: “We may now see a rise in overseas investors taking advantage of a fall in sterling but otherwise it is too early to predict the full consequences of Brexit.

“The Government’s position and the reaction of the financial markets in the coming weeks and months will be important. The initial reaction of the financial markets has been dramatic but the key will be how long this will continue and how far reaching any disruption will be. The resignation of David Cameron and the fact that an orderly exit from the EU could take up to two years indicates that we are in for some uncertainty.

“Investment advisors appear to have been scaling back their investment in the UK, regardless of Brexit, owing to a perception that the upturn in the UK property market would be coming to its natural peak in 2016 anyway.

“There is going to be a period where developers, lenders and investors wait to see what the political and economic fallout is. Within hours of the results some of our clients put decisions on hold. Uncertainty is always unwelcome in the property business. No doubt there will also be some opportunities and the trick for investors, developers and funders will be to spot those opportunities and get in early.”

Family law

Joanna Pratt, head of family law at Thomson Snell & Passmore said: “As the British public chose to leave, there is real uncertainty. Case law regarding habitual residence of children may need to be revisited, and Parliament may consider changing the Brussels II regulations. However a lot of the non-EU related international rules, such as the first in time rule regarding the issue of divorce proceedings, are unlikely to be affected by a Brexit decision and we do not expect a rush of changes to international clients’ divorce agreements.”

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