HOME | LOGIN | OUR PEOPLE | CONTACT US | CAREERS | NEWSLETTER




tel: 0845 9011 960

You are in:- Home Page » Blogs

Hot Property


Auctions, Commercial, commercial property, Property, Property Auctions, purchase    No Comments

auction hammer

If you are planning to sell a commercial property at auction you need to think about the following:
1. CPSE replies (commercial property standard enquiries) these are a list of questions like the property information forms on a residential property that provides potential buyers with important information about the property such as boundaries and maintenance,  planning, environmental matters.  The issues that seem to cause the most difficulty for sellers is planning and evidence of planning permission for use along with VAT and capital allowances. It is important for the buyer to know whether VAT is payable on the purchase price, likewise a buyer may be wanting to claim capital allowances and needs information from the seller to assess such.It is better to get these answered as quickly as possible as the sooner the more information the prospective buyers have on the property.
2. Searches , in properties not sold at auction the buyer will arrange for searches such as local, drainage and environmental  to be completed. When a property is being placed into auction I would advise the seller to provide as much information as possible to prospective buyers. I would also suggest that the seller request that the buyer pays back to them the cost of the searches.
3. If the property is subject to tenancies/lease copies of the tenancies/leases will need to be provided and referred to in the contract so that any buyer knows that the property is not being sold with no one in it. Further details of the rents paid and whether there are any rent arrears will be required
It is important with an auction property to get as much information together as quickly as so that you are able to attract as many buyers as possible.
I have lots of experience in dealing with commercial properties being sold at auction and would be happy to provide you with a fixed fee quote for the work.
Please feel free to call me on 01623 448302 or email me on climb@fidler.co.uk

 

 

Share on Facebook



Lease, leasehold    No Comments

The law in England and Wales provides tenants of flats (upon meeting certain criteria) the legal right to effectively take the place of the freeholder by either getting together with fellow tenants to buy the freehold of the building they occupy (known as leasehold enfranchisement) or forming a right to manage company (RTM) which takes over the management of the building.

Leasehold enfranchisement

Broadly speaking, if 50% of tenants in a building on leases of 21 years or longer  wish to acquire the freehold title, then they can do so upon following a set procedure.  Such an option may seem attractive to tenants who wish to take control of granting their own lease extensions and of the management of the building. 

 

Right to Manage

To qualify for the right to manage, tenants must hold a lease of 21 years or over and the qualifying tenants wishing to exercise the right must own at least two-thirds of the flats in the building.  The building itself must also meet certain qualifying criteria.  Assuming that there are the requisite number of qualifying tenants and the building meets the qualifying criteria, an RTM Company can then be set up to take over the management of the building.  Any qualifying tenant is entitled to be a member of the RTM Company as is the freeholder.

lease extension pic

Is it time to take control?

Both enfranchisement and the right to manage do offer leaseholders the potential to take some degree of control.   Once in the driving seat, tenants are free to assume responsibility for managing the building themselves.   However, both options are major steps and so it is essential that tenants take advice as to whether in their particular circumstances either route is advisable as there could be implications which should not be taken lightly.

The process of leasehold enfranchisement and right to manage may be costly depending on the size and complexity of the building.  Managing a building is complicated and involves a whole host of laws and regulations.  Often the tenants driving enfranchisement or right to manage are a small group who has to put in enormous amounts of time and effort and so a managing agent is required anyway.   Tenants wishing to enfranchise or set up an RTM Company will need to strongly consider whether they have the stomach for a dispute with their neighbour over issues such as unpaid service charges.  Can the tenants get on as a group?  It is nearly always impossible to say as future owners come into the equation.

Both the right to manage and enfranchisement are important legal options available to some tenants.  However, neither right is without its pitfalls, and tenants need to take advice to ensure that they go in with their eyes wide open.    If you would like advice on your options as a leaseholder then please contact either Luke Rees or Christie Limb in the commercial and leasehold department on 01623 451111.

 

 

Share on Facebook




Powered by WordPress Entries RSS Comments RSS