Friday January 27, 2012 at 9:34am
The current difficulties small businesses are having raising finance are well known. One idea that hasn't been discussed so far in the media is one possible solution - the live/work unit.
A live/work unit is a property that combines living space and business space under one roof. The crucial issue for small businesses, though, is that the cost of buying and running live/work units is much lower than the combined cost of buying and running a home and separate business premises.
....
(read more...)Wednesday January 25, 2012 at 11:25am
As if times weren't hard enough for commercial real estate investors, David Cameron has announced that the Government is to make available unwanted Government offices at 'low rates' to businesses.
Already faced with paying business rates on offices they are unable to let out, landlords will now find that market rents are likely to fall further in the face of the Government's incentive.
Steve Petty, Commercial Property Solicitor....
(read more...)Wednesday October 26, 2011 at 1:09pm
Approaching your landlord to renegotiate your lease can be a daunting prospect, especially if you’re a small business owner and the landlord is a large institution. Making sure you are fully informed before you start the process is certainly worthwhile – although in my view there’s no better approach than asking an expert to negotiate on your behalf. I’m often asked by small business owners how they can renegotiate the terms of their
commercial lease, especially those who....
(read more...)Tuesday October 4, 2011 at 9:46am
M & S has been fined £1m for breaches of health and safety legislation. The Crown Court said it had failed to protect customers, staff and workers from potential exposure to asbestos whilst refurbishment works were carried out to a store. Ceiling dust possibly containing asbestos fell to the shop floor whilst it was open. M & S were also ordered to pay £600,000 costs after the prosecution by the Health & Safety Executive.
Marks & Spencers we....
(read more...)Friday August 26, 2011 at 11:03am
How to negotiate a Lease is one of the most frequent questions I get asked.
Before signing a Lease of business premises Tenants should always try and negotiate the best deal with a Landlord or their agent.
Listed below, in no particular order of importance, are the key things to ask for and check:
1. Get expert advice on the Rent A Tenant should not just rely on the Landlord’s view on the market rent for the property. If in any doubt get your own surveyor to give a valuation 2. Servic....
(read more...)Monday July 4, 2011 at 11:53am
Capital Allowances are a valuable form of tax relief available to commercial property owners who have incurred expenditure on various fixtures and fittings.
Capital Allowances are available in two situations. Firstly when a commercial property is purchased for occupation or investment purposes and secondly when a new commercial property is built or fitting out/refurbishment works are undertaken.
The rules relating to Capital Allowances are typically very complex but in simple terms they are ....
(read more...)Tuesday May 31, 2011 at 10:18am
What is Forfeiture? Forfeiture is the landlord’s right to re-enter business premises and bring a lease to an end. In general a lease can be forfeited where the tenant does not pay the rent, breaches the other terms of the lease or becomes insolvent.
Forfeiture is a powerful tool for landlords to use where they wish to remove a tenant and terminate the lease. Tenants should note that the right to forfeit can only be exercised by the landlord if it is specifically referred to in the lease.....
(read more...)Wednesday April 6, 2011 at 12:20pm
From today (6 April 2011) residential property with a purchase price of more than £1m will be subject to a higher Stamp Duty Land Tax (SDLT) rate of 5%. This increase only applies to land which consists entirely of residential property. It does not apply to commercial or mixed used property where the SDLT rate remains at 4%
Steve Petty Commercial Property Solicitor 01926 629 005....
(read more...)Wednesday April 6, 2011 at 11:02am
If you are a tenant in a multi-let building/estate and reimburse your landlord for the electricity supply then you will be interested to hear about your new rights. Recent changes give tenants the power to demand cheaper electricity costs from a different supplier.
A tenant may now notify their landlord that they want to receive electricity from another supplier and the landlord must respond within 21 days or risk committing a criminal offence.
This will benefit those tenants that believe th....
(read more...)Tuesday April 5, 2011 at 5:49pm
Over the past few weeks I have received many enquiries from property owners looking to minimise the amount of business rates they pay whilst their property stands empty. This is a particularly important issue since the threshold for claiming Empty Property Rates Relief was reduced from £18,000 to £2,600 this month.
Property owners therefore need to review tactics to minimise liability for business rates by adopting new initiatives.
The Meanwhile Scheme was introduced by the gover....
(read more...)Friday April 1, 2011 at 3:58pm
The Court of Appeal has recently ruled that the demolition of a building can come under the definition of a "project" under EU Law.
Why is this important? Under normal planning rules the demolition of a building does not require planning permission
This case means that where demolition is likely to have a significant impact on the environment planning permission and an Environmental Impact Assessment will be required i.e. in most cases.
Please note there are special protections th....
(read more...)Friday April 1, 2011 at 3:33pm
As of today (1 April 2011) many property owners and businesses will be hit with a large increase in business rates for empty property.
The rateable value where no business rates are payable by an owner of empty property has been cut from £18,000 down to £2,600.
I have already received many enquiries from worried business people and property owners seeking ways to reduce their liability.
Eligible businesses should not forget to make a claim for ....
(read more...)Friday April 1, 2011 at 3:17pm
The temporary increase in Small Business Rate Relief has been extended by a further year to October 2012 Small Business Rates Relief is available to all businesses whose rateable value is less than £12,000. This means that eligible businesses occupying one property with a rateable value of £6,000 or less will pay no business rates. For those with one property having a rateable value of between £6,000 and £12,000 there will be relief on a sliding scale from 100% to zero. A....
(read more...)Thursday March 31, 2011 at 1:08pm
Budget 2011 – Property Now that the dust has settled after the Budget Report last week it would be a good time to summarise the main implications for the property world. Business Rates The temporary increase in small business rate relief has been extended by a further year to October 2012 This means that eligible businesses occupying one property with a rateable value of £6,000 or less will pay no business rates for that period. For properties with a rateable value of between £....
(read more...)Thursday February 17, 2011 at 9:10am
Leasing business premises can be a real minefield for the unwary business owner. In this series of posts I shall go through the various aspects of a commercial lease to explain some of the legal jargon and also provide some lease negotiation tips along the way.
E is for Entry - rights of
Almost all leases will contain a right for the landlord to enter the premises in certain circumstances. You don't want the landlord just barging in when he feels like it, though, so it's important t....
(read more...)Wednesday February 2, 2011 at 12:24pm
The Government has announced that from 1 April 2011 the empty property business rates threshold will revert to £2,600 from the current level of £18,000.
This will be a matter of great concern for SME’s and commercial property owners who have any empty premises in their portfolio.
The only crumb of comfort is the extension of Small Business Rate Relief until October 2012 for those that are eligible. See here for details.
This will result in businesses with e....
(read more...)Wednesday January 26, 2011 at 11:26am
Business rates are one of the largest costs to SME’s but many are unaware of the tax relief available.
A business in England that occupies only one commercial property is entitled under the rules to have their bill calculated using the small business rate multiplier where the rateable value is under £18,000 (£25,500 in London).
There is also the temporary business rates cut for businesses occupying one property where the rateable value is under £12,000. See my earlier....
(read more...)Tuesday January 11, 2011 at 1:11pm
Businesses are still looking to reduce costs so is it possible to renegotiate a lease to reduce your premises costs?
There are a number of tactics a tenant can use to try to renegotiate their lease:
Break Clauses
If your lease gives you the right to terminate it before the end of the term then it may be worth asking the landlord to reward you with improved terms in return for your agreement not to exercise that right. A landlord is unlikely to want to have to find a new tenant in the cu....
(read more...)Monday January 3, 2011 at 6:35pm
Below are my 5 key talking points for the property market over the next 12 months:
1. Interest Rates
With continued high inflation becoming a concern it is likely that the current ultra low interest rates will begin to rise steadily later this year. This could lead to a higher volume of properties being marketed for sale in 2011 as loan repayments increase.
2. Bank Finance
I expect the same hard slog in 2011, with a continued lack of Bank finance availability for property investment and d....
(read more...)Thursday December 9, 2010 at 4:59pm
When negotiating a lease you should always ask the landlord or their agent whether they comply with the voluntary codes of conduct that aim to promote fairness for tenants occupying business premises. In this blog I have summarised what these are all about.
1. Code for Leasing Business Premises - www.leasingbusinesspremises.co.uk
This consists of 3 parts: • 10 point list for landlords to follow • Guide for tenants and occupiers • Model heads of terms
You should be ....
(read more...)Wednesday November 10, 2010 at 11:24am
Leasing business premises can be a real minefield for the unwary business owner. In this series of posts I shall go through the various aspects of a commercial lease to explain some of the legal jargon and also provide some lease negotiation tips along the way.
D is for Dilapidations
Dilapidations is yet another legal piece of jargon commonly used in relation to business premises.
The first time a tenant sees the word 'dilapidations' is usually when an intimidating looking document called a S....
(read more...)Monday September 27, 2010 at 6:55pm
Property costs are a large overhead for most businesses. Here Steve Petty lists 10 of the best ways to save money both now and when relocating. 1. Time to renew your lease? If you are coming towards the end of your lease then now would be a very good time to take control of the renewal process. It is likely you will have been locked into a lease for a few years paying rent agreed or reviewed at the height of the market. By getting good advice and following the correct procedu....
(read more...)Wednesday September 15, 2010 at 10:07am
Leasing business premises can be a real minefield for the unwary business owner. In this series of posts I shall go through the various aspects of a commercial lease to explain some of the legal jargon and also provide some lease negotiation tips along the way. C is for Covenants
The word 'covenant' is used in two very different contexts in relation to commercial premises.
'Covenant' usually refers to a promise made by either the landlord or the tenant (or the guarantor if there is one). ....
(read more...)Friday September 10, 2010 at 9:10am
Leasing business premises can be a real minefield for the unwary business owner. In this series of posts I shall go through the various aspects of a commercial lease to explain some of the legal jargon and also provide some lease negotiation tips along the way.
B is for Break Clauses
One of the most important clauses in a lease for those starting up a new business.
Many new ventures fail in the first two years of operation yet leases are frequently 5 years or more in length. The premise....
(read more...)Wednesday September 8, 2010 at 10:16am
I am often asked by business owners for help when they are taking a lease of commercial premises. Unfortunately this is after the main terms have already been agreed in principle. Ideally you should get your solicitor involved before agreeing terms as various concessions can usually be negotiated that can save time and money for your business both immediately and in the future. Listed below are the 10 key points to consider when talking to the landlord or their agent: 1. Ask the landlord fo....
(read more...)Tuesday September 7, 2010 at 8:52am
Leasing business premises can be a real minefield for the unwary business owner. In this series of posts I shall go through the various aspects of a commercial lease to explain some of the legal jargon and also provide some lease negotiation tips along the way.
A is for Alienation
Well we're on our first letter of the alphabet and already we have some legal jargon to contend with. 'Alienation' is just a legal term which covers a tenant's right to deal with a lease. The most c....
(read more...)Friday July 2, 2010 at 10:04am
The temporary increase in small business rate relief has been confirmed by the new government. The increase will apply for 12 months from 1 October 2010 and means that eligible businesses occupying premises with a rateable value of £6,000 or less will pay no business rates for that period. For properties with a rateable value of between £12,000 and £6,000 there will be relief on a sliding scale from 100% to zero. For more information on how this will affect your business rates ....
(read more...)Wednesday June 30, 2010 at 4:46pm
When entering into a lease of business premises the landlord may require the tenant to provide a rent deposit. This is a sum of money equivalent to, for example, 6 months’ rent. A rent deposit gives the landlord some security in the event that the tenant fails to pay the rent on time or does not comply with its other obligations in the lease. In these circumstances the landlord can deduct sums from the deposit to cover the arrears of rent. It is crucial from the point of view of the tenant....
(read more...)Tuesday June 15, 2010 at 9:56pm
The Meanwhile Project could provide another solution to landlords with empty high street premises.
The idea behind the project is to provide temporary occupation of empty properties in town centres by community groups to improve footfall, appearance and vitality of town centres which would otherwise be dominated by vacant units.
There are several obvious benefits to landlords of having occupied rather than empty premises including avoiding business rates on empty property.
For more ....
(read more...)Monday June 14, 2010 at 9:54am
The new PPS 3 now defines previously developed land (brownfield land) as follows:
‘Previously-developed land is that which is or was occupied by a permanent structure, including the curtilage of the developed land and any associated fixed surface infrastructure.’ The definition includes defence buildings, but excludes:
Land that is or has been occupied by agricultural or forestry buildings.
Land that has been developed for minerals extraction or waste disposal by landfill pu....
(read more...)Wednesday June 9, 2010 at 11:16am
The Government has announced that back gardens are to be reclassified for planning purposes. The effect of this is that it will be easier to for Local Planning Authorities to oppose applications from developers to develop garden land as the developer will not be able to argue that the land is 'brownfield'.
At the same time, however, the Government is also proposing that local residents have more say over development in their area. It may be the case that if a development proposal ha....
(read more...)Friday May 28, 2010 at 9:24am
April saw two of the UK's best known retailers receive significant fines for breaches of fire safety legislation. On 20 April Tesco was fined £95,000 after admitting 5 breaches of the Regulatory Reform (Fire Safety) Order 2005 and on 29 April 2010, the Co-operative was fined £210,000 after entering a guilty plea in relation to six offences. In both cases, the breaches are ones that could have easily occurred in any retail premises. Tesco was fined: £40,000 for two counts a....
(read more...)Thursday May 20, 2010 at 6:54pm
Hidden in the governments detailed coalition agreement released today are concrete proposals to limit future back garden development. The plan is to give councils new powers to stop what they call ‘garden grabbing’. Full details to follow but if you are thinking about selling off part of your garden for development now could be the time to take that step. If you have surplus land or are a developer who carries out these types of schemes then contact property lawyer Steve Pe....
(read more...)Thursday May 20, 2010 at 11:46am
It was today announced by the new government that the requirement for seller's to provide a Home Information Pack (HIP) will be suspended from 21 May 2010.
As expected Energy Performance Certificate's (EPC's) are retained and will still need to be produced within 28 days of the property being put on the market.
The practical effect of HIP's being scrapped is to shift the cost of paying for searches back to the buyer, which was always the position before they were int....
(read more...)Monday April 26, 2010 at 3:20pm
The British Chambers of Commerce today published the result of a survey which showed that 65% of the 300 businesses surveyed were either concerned or very concerned by the prospect of a hung parliament. On the basis that it tends to produce more coalition governments, David Cameron today publicly opposed a system of proportional representation in this country. However, on Saturday the Independent reported that of the 16 countries around the world with the top triple A financial stability rating,....
(read more...)Friday April 23, 2010 at 11:50am
The Carbon Reduction Commitment (CRC) came into force on 1 April. CRC is a compulsory carbon dioxide emissions trading scheme where large organisations are required to buy allowances based on how much CO2 they expect to emit from their buildings during the year. The CRC will inevitably have a knock on effect to small and medium sized businesses, many of which will be tenants in buildings where the scheme applies. As is the case with any commercial lease the landlord will be looking to recoup fro....
(read more...)Thursday March 25, 2010 at 10:53am
A temporary cut in business rates was announced yesterday in the Budget. This will give an exemption for businesses occupying property with a rateable value of up to £6,000, and discounts for those with a rateable value of up to £12,000. The measure is intended to last for 12 months from October. The government claims that the cut will mean more than 300,000 small businesses avoid having to pay rates but it is important to check the 2010 valuation assessment when calculating whether ....
(read more...)Tuesday March 23, 2010 at 10:26am
I have heard Alistair Darling described as many things but the majority are not suitable for print! At the very least he would be described as the unluckiest chancellor in history. The role was certainly a poisoned chalice when he took over three years ago as the world stood on the verge of a huge financial catastrophe that we are all still feeling the effects of.
The tide looks to be finally turning with unemployment falling sharply, and the Bank of England predicting that growth in the first....
(read more...)Friday March 5, 2010 at 11:09am
After a long wait, the Consumer Code for Home Builders comes into force on 1 April. It will be mandatory for house builders who are members of a home warranty scheme which has undertaken to enforce the Code. Home warranty bodies such as NHBC, Premier Guarantee and LABCNew Home Warranty have all agreed to require their registered builders to adopt and comply with the Consumer Code.I set out the main issues covered by the Code in this ezine article in October 2008.The Code will apply to all ....
(read more...)Thursday March 4, 2010 at 4:47pm
A case reported this week should prompt all landlords to take advantage of our free 20 minute lease review and check that the obligations of a tenant’s guarantor can be legally enforced.
This judgement will affect any lease where there has been as assignment from the original tenant and a guarantor was involved.
In short it means the continuing liability of the guarantor under a lease can be challenged. Should the tenant then fail to pay the rent then this could prevent the landlord fr....
(read more...)Tuesday February 16, 2010 at 5:07pm
When you take a car in for its service do you ever get the feeling that you have been taken for a ride quite literally?! I certainly do when given the list of parts the garage recommends be replaced. It would be useful to have some way of getting to the bottom of what really is important. This was the inspiration behind my Planning Law Guide that certainly can be as complex as the average Audi.
Take the following example. The word “Development” in planning terms does not just mean ....
(read more...)Tuesday February 16, 2010 at 3:56pm
The Government has begun a consultation process to consider granting special stamp duty concessions on the bulk buying of residential property.
At present if a buyer purchases a number of properties at the same time then potentially they will be classed as “linked transactions”. As a result stamp duty would be payable on the total amount paid rather than treating each purchase individually and this can increase the tax bill hugely. For example stamp duty for a one off purchase at &....
(read more...)Tuesday February 16, 2010 at 3:11pm
The latest inflation figures show another increase and this could persuade investors to start putting their money back into commercial property. We will have to wait and see if this was a blip or a trend that is set to continue over the next few months. The outlook generally is still mixed but the Bank of England belives inflationary pressure is only short term.
Rents have certainly stabilised and most commentators are predicting that they will rise throughout 2010. This is due to the lac....
(read more...)Monday February 8, 2010 at 9:21am
All shared ownership leases, on homes funded by the Homes and Communities Agency (HCA), granted on or after 06 April 2010 must use new model forms of lease. The leases have been revised to clarify and enhance the protection enjoyed by the lender and provide a clearer explanation to the consumer. An explanatory note is also provided along with key information sheets for shared owners which are also found within the leases themselves.
If you are in the process of developing shared owne....
(read more...)Thursday February 4, 2010 at 10:07am
To mark my arrival at Cousins Business Law I've put together this list of dos and dont's for businesses to help them avoid the potential pitfalls and capitalise on opportunities during 2010.
Landlords should be proactive on recovering rent arrears to avoid being left high and dry by struggling tenants. Look out for warning signs that might mean a tenant has financial issues, like delays in payment or publicity surrounding the performance of the organisation. If it goes into admin....
(read more...)Thursday January 21, 2010 at 10:49am
I have previously posted on the issue of back garden development. It looks as though the Government may be finally waking up to the fact that flaws in its planning guidance have caused rather more of this type of development than may have been desirable.
Housing and Planning Minister, John Healey, has announced that he will be strengthening national policy advice to make it clearer that garden land is not necessarily suitable for development and that decisions to stop building on it shoul....
(read more...)Wednesday January 20, 2010 at 9:36am
I have previously written about the business rates revaluation. For those businesses which may experience a large increase in business rates, the transitional relief scheme is intended to spread the impact over several years. To find out whether your business rates increase will be phased in over time, check the lists below.
Caps for small properties Small properties are those with a rateable value of below £18,000 (£25,500 in Greater London) as at 1 April 2010. The cap ....
(read more...)Friday January 15, 2010 at 5:00pm
The Conservative Party has pledged to scrap Home Information Packs (Hips) immediately in the event that they win the general election, which given their strength in the polls seems likely.
The original aim of Hips was to speed up the house buying process and to stop deals from “falling through” but most people involved in the property industry will agree that Hips in their current form have been a failure. In my own experience one of the biggest problems has been that by the time t....
(read more...)Thursday January 14, 2010 at 5:26pm
The surprise banks’ overdraft charges victory could leave landlords’ exposed to a new challenge by estate agents. The High Court originally ruled that millions of pounds of residential tenancy “renewal” fees charged by Foxtons to landlords were unfair resulting in expected refunds running to millions of pounds. The new interpretation of the law means that buy-to-let investors may now face delays in their claims for a rebate whilst any appeal is heard.
Please get in touc....
(read more...)Thursday January 14, 2010 at 4:45pm
A recent Supreme Court decision will be of keen interest to developers. It was decided that a sewerage undertaker had no power to refuse a builder the right to connect a private drain to the public sewer at the point most convenient to the developer. Welsh Water had argued that it could refuse the connection on the basis that it would overload the system at that point. This would have meant the developer having to connect to the public sewer at a manhole some 300 metres away. The Court rejected ....
(read more...)Monday January 4, 2010 at 9:29am
The Chancellor’s December 2009 pre-Budget Report announced that the Government is to extend and increase the temporary relief from empty property rates for low value properties. The Government will continue the relief for a further year from April 2010.
Further, for 2010-11, empty commercial properties with rateable values up to £18,000 will be exempt from business rates. This continues the exemption for what the Government says is an estimated 70 per cent of empty properties.
Wit....
(read more...)Tuesday December 22, 2009 at 3:43pm
This must have been a question Lloyds Banking Group's customers were asking themselves this morning with the announcement that Lloyds agreed to pay at least $3.6 billion over 15 years to raise $2 billion in capital. According to Bloomberg, the bank sold hybrid Tier 1 securities on Dec. 15 that cost 12 percent, or $240 million a year in interest, until 2024. That’s a higher interest rate than bicycle-rack maker TriMas Corp. paid to sell senior notes, which Moody’s Investors Service ra....
(read more...)Friday December 11, 2009 at 4:16pm
This Act of Parliament has now received Royal Assent but the date for it actually coming into effect has yet to be announced. Although this sounds like some obscure piece of law, there will be one significant benefit for property developers.
At present, an option to purchase land is void if it is not exercised within twenty-one years of the date the option is granted. Now twenty-one years may sound a long time but for investors and developers who specialise in the strategi....
(read more...)Tuesday December 1, 2009 at 9:32am
The rate of VAT returns to 17.5% on January 1, 2010. What VAT treatment applies to quarterly rental payments due on December 25? Where contracts are exchanged in 2009 to complete in 2010, and VAT becomes payable on the contract deposit, what VAT treatment applies at exchange and at completion?
December 25 rent payments The tax point for standard-rated leases is the date the landlord issues a VAT invoice or receives payment of the rent, whichever happens first. Hence, on Decemb....
(read more...)Wednesday November 18, 2009 at 11:28am
According to Land Securities in a report by Bloomberg today. The company has announced that it has made offers to buy £500M of assets.
Investment Property Databank had now recorded three straight months of price rises for UK Commercial Real Estate although vacancy rates have continued to rise to a 4-year high.
With commercial property values still 42% below their peak, now may be the time for cash-rich investors to step back in.
For further details of our servi....
(read more...)Friday October 2, 2009 at 11:58am
Following a change to planning rules which took effect on 30 September, developers can now extend their existing planning permissions to give them more time to weather the economic downturn.
Developers with planning permissions granted up until 30 September 2009 where the time limit for implementation has yet to expire may apply to extend their permissions. The move has been made to boost the industry and to save costs for developers badly hit by the recession. Many developers have put pr....
(read more...)Monday September 14, 2009 at 10:24am
After my article in last month's ezine, you wouldn't expect me to be surprised by this but there seems to be a growing consensus that the worst is not yet over.
This is an extract from a report on Bloomberg:
U.K. banks are less than half way through posting 240 billion pounds ($398 billion) of losses on loans and securities, a reflection of the U.K.’s economic weakness, according to Moody’s Investors Service Ltd. British banks are likely to record 130 billion pounds of losses ....
(read more...)Friday September 4, 2009 at 12:09pm
Landlords of commercial premises often try to prevent occupiers enjoying the protection of the Landlord & Tenant Act by giving them a licence rather than a lease. Unfortunately, they very often get it wrong.
First things first. Calling a document a licence doesn't make it a licence. It is well-established law that if the nature of the arangement between the owner of premises and the occupier creates a lease then just calling it a 'licence' does not change the legal na....
(read more...)Thursday August 27, 2009 at 11:43am
A couple of stories have broken this week suggesting that the calls for transparency in the banking sector are going unheeded.
The first appeared in the Times on Monday and concerned the resurrection of the practice adopted by banks in the last recession of selling repossessed properties to their own subsidiaries to avoid having to mark down their value by selling in the open market.
http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article6807490.ece
You can....
(read more...)Wednesday June 24, 2009 at 10:02am
Any developer considering adopting the Code can now read through a number of case studies published by the Department of Communities and Local Government. These illustrate some of the problems encountered by developers building Code Homes for the first time so may be a useful resource.
You can find the case studies here.
Successful property development is all about avoiding the traps.
Steven PettyCommercial Property Lawyer
....
(read more...)Tuesday May 19, 2009 at 7:32pm
A right of way is normally enjoyed along a specific route over someone's land. Sometimes the route of a right of way can be inconvenient to the owner of the land over which the right is enjoyed (particularly if the landowner wishes to develop the land) and a recent case has examined whether the landowner has a right to re-route a right of way.
The case has confirmed that a landowner has no right to re-route a right of way (unless the terms of the right of way expr....
(read more...)Monday May 18, 2009 at 12:46pm
A couple of recent reports have suggested now might be the time to consider stepping back into the UK commercial property market.
Last week, Cushman Wakefield indicated in its Business Briefing that prime yields for UK property have stabilised in the last two months with 21 of its 24 key yield outlook indicators flat-lining between March and April.
Today, Schroders called UK property "a screaming buy" particularly for overseas investors due, in part, to Sterling's weakness.
With com....
(read more...)Wednesday April 22, 2009 at 3:35pm
If you were hoping for assistance for the hard-pressed property sector from the budget then today's announcements will have left you feeling very disappointed.
The schemes such as they are consist of:
a three month extension of the SDLT holiday for houses sold for £175,000 and under
extra money for existing Government schemes to support first time buyers
a scheme to kick-start stalled housing projects
With the price of an average house still falling every month ....
(read more...)Monday March 23, 2009 at 6:16pm
This was publicised in the Telegraph today and is another piece of bad news for businesses struggling with their cashflow.
The rateable value of some properties rose or fell in line with changes in rental values after the last revaluation on 1 April 2005 and 'transitional arrangements' were in place to phase in the increase or decrease in the rate bill. The next revaluation will come into effect on 1 April 2010. The current transition scheme operates over a four year period from 1 April 2005. T....
(read more...)Tuesday March 10, 2009 at 9:28am
Landlords and tenants frequently agree terms verbally rather than having a formal written lease. Three recent cases have examined whether or not these oral agreements are enforceable.
These cases have confirmed that to be enforceable, an oral agreement must be:
for a term of no more than 3 years
at the best rent reasonably obtainable for the premises
in possession (ie the term of the lease must begin immediately rather than at some date in the future)
If you have entered ....
(read more...)Wednesday March 4, 2009 at 2:00pm
Talking to clients I am conscious that the cost of business premises is concerning many business owners at the moment. In the retail sector some businesses just can't meet their rents - hence the latest figures suggesting that 90,000 shops stood vacant across the UK in February.
Premises are one of a business’ biggest overheads and so it pays to continually review what steps you can take to reduce your premises costs.
I've just added an article with 10 tips for saving money o....
(read more...)Monday March 2, 2009 at 6:47pm
A "virtual assignment" is an arrangement under which all the economic benefits and burdens of a lease are transferred to a third party, but without any actual assignment of the leasehold interest.
The perceived benefit of a virtual assignment has historically been that it effectively enables the transfer of a lease to take place without having to wait for landlord's consent.
This device is normally used in large portfolio transactions, where there is not time to obtain all the landl....
(read more...)Tuesday February 17, 2009 at 8:00am
Business Premises Renovation Allowance (BPRA) is designed to encourage the conversion and renovation of empty business properties in certain development areas by granting 100% tax relief for capital expenditure incurred in bringing them back into business use.
The relief was introduced in the Finance Act 2005, but due to lengthy negotiations with the EU over state aid, it only came into effect on 11 April 2007. The relief is temporary and is intended to expire 5 years after its introduction, on....
(read more...)Monday February 16, 2009 at 2:17pm
At a time when there are an ever increasing number of empty business premises, landlords need to adopt strategies for making their premises more attractive to prospective tenants. Adopting the Code for Leasing Business Premises may be one such strategy.
The Code was set up as a voluntary framework to promote fairness between landlords and tenants of business premises. It sets out 10 key areas where landlords must adopt good practice including repairs, service charges and rent review....
(read more...)Thursday February 5, 2009 at 9:00am
A restriction on your title deeds not to do anything on your property which might be a nuisance or annoyance to your neighbours is very common and a recent case has highlighted why this sort of restriction should be of concern to property developers.
In that case a homeowner obtained planning consent for the construction of an extension to his house but his neighbours objected on the grounds that it would restrict their views which would constitute an 'annoyance'.
The judge in this c....
(read more...)Wednesday February 4, 2009 at 10:38am
I have posted before about the drive by tenants to alter the rent payment frequency under their leases from quarterly to monthly in an attempt to improve cashflow.
The British Retail Consortium has now published on its website a draft rent variation letter for use in circumstances where a landlord agrees to allow the tenant to pay rent on a monthly basis.
Landlords should beware however as this is a letter drafted on behalf of a tenants' representative body and does not advise landlords that a....
(read more...)Tuesday February 3, 2009 at 10:08am
Following on from my article in January's edition of the Cousins Business Law ezine, a recent case has demonstrated the approach of the Court to resolving difficult boundary disputes.
In this case the Court of Appeal summarised the difficulty facing it with these words:
“the dispute has all too many features that are usual and familiar: on the one hand the need for the parties to have their disputes resolved by the court, rather than by any process of sensible discussion, accommodation o....
(read more...)Monday February 2, 2009 at 9:49am
A recent case has confirmed that a landlord not only owes a duty to a tenant to consider its application for licence to sublet properly but also to deal with it promptly.
In this case, a landlord took six weeks to grant its consent to a tenant's application to sublet. Although consent was ultimately given, the proposed subtenant had by that time withdrawn from the proposed sublease and the Court decided that the proposed subtenant's decision to withdraw was caused by the delay in&n....
(read more...)Thursday January 22, 2009 at 4:02pm
The Government has recently made further changes to the Home Information Pack Regulations. With effect from 6 April the following changes will come into effect:
1. All HIPs must include a Property Information Questionnaire (PIQ) which will provide some basic information about the property.
2. In relation to leasehold properties, the PIQ will include a summary of things such as rent and service charge and as a result the requirement to include certain leasehold documents in the HIP ....
(read more...)Tuesday January 6, 2009 at 10:13am
To survive in 2009 landlords and tenants need to make sure they are better prepared than their competitors. Here are a few New Year's resolutions that may help:
For Landlords:
1. Revalue your property portfolio
2. Take advantage of the Cousins Business Law free business lease review for landlords
3. Avoid business rates on empty property but also bear in mind the changes to empty property relief for financial year 2009/10
For Tenants:
1. It's time to renegotiate your ....
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