Another move was to reinforce the aim of Reits that only genuine property companies should be able to benefit from its attractive tax structure. So, as of Budget Day, 22 April, rules came into force that would prevent supermarkets, pubs and other businesses that do not make most of their money from the business of running properties to enter. However, the door has been left open if a pub business could prove that it earnt at least 75 per cent of its income from rental (which, it is just conceivable, some tenanted pub groups might do). Allowing the possibility of being a Reit to such groups "is a gesture of goodwill from the government to the pub industry", says Peter Cosmetatos, director of finance and investment at the British Property Federation (BPF).
What really disappoints Cosmetatos, however, is that the Treasury did not implement the proposals put forward by the BPF, representing the Reits sector, to help them through the recession. The BPF had proposed relaxations to the rules that require Reits to distribute most of the cash they receive in rents and most other sources within months. For instance, there is a rule that requires a Reit to distribute to shareholders 90 per cent of property income a year. A slight loosening of such rules would allow these businesses to build a somewhat larger cash buffer--a useful precaution, according to the BPF, in a year in which the economy is shrinking and property is among the worst-affected sectors. But no such changes were announced in the Budget.
"Perhaps the government wasn't convinced that failure to fix this would lead to imminent problems for any of the Reits," says Cosmetatos, trying to find a reason for the lack of action. He is very disappointed to see the government concentrating, as he sees it, on firefighting and pouring billions into banks without listening to the calm, rational voices trying to plan ahead and avoid disasters down the line. "The category that is missing from their actions is doing the sensible, current, strategic thinking that plans," he says. Instead, he urges the government not to "wait until we are on our knees and an urgent intervention is needed. See what sensible, targeted interventions can be made now."
Cosmetatos now has to consult with his Reits members on the way forward. Obviously, it is quite likely that they will continue to push these points. It is possible that some changes could be done through a statutory instrument rather than waiting another year for the Finance Bill 2010. But Cosmetatos says: "If they are not prepared to do it in a Finance Bill, they probably won't do it."
The BPF had also made broader calls on other property issues to the Chancellor.
These had received much support from the property community. Gerard Moran of Hunters solicitors and a council member of the Stamp Taxes Practitioners Group says: "I had supported the call by the BPF for removing the 4 per cent disincentive on institutional investment by bulk purchase of rented residential property, linked to more professional and efficient management and availability of such property in the private sector." This did not come through. He is not impressed with the Chancellor's move to extend the waiver of Stamp Duty on housing transactions of up to £175,000 until the end of this year. He believes that there are many areas where houses worth under this level are not common. He comments: "The cap of £175,000 for nil rate purchase of residences was always unrealistic in many areas and there can be little difference from extending this so-called 'holiday' for under four months."
Articles
Friends disunited
LNB News 18/05/2009 45
Published date: 17 May 2009
Author: Ann Minogue
Journal name: Building
Journal date: 20 March 2009
Journal citation: Building, 20 March 2009, 57
Jurisdiction: England; Wales
Abstract: Building, 20 March 2009: In a downturn, contracts are scrutinised with the sort of attention that might better have been devoted to putting them in place correctly at the outset.
Summary: Explains, in this economic climate, all parties have a tendency to look more closely at their rights and remedies. The contract comes out of the drawer and is scrutinised with the sort of attention that might have been better devoted to putting it in place correctly at the outset rather than deconstructing it afterwards. In addition, in the commercial world, you do not know who you may ultimately be dealing with.
Sustainability gains ground
LNB News 18/05/2009 27
Published date: 16 May 2009
Author: Helen Garthwaite
Journal name: Construction Law Journal
Journal date: 1 April 2009
Journal citation: (2009) 20 3 Cons.Law 6
Jurisdiction: England; Wales
Abstract: Construction Law, April 2009: The credit crunch has not pushed sustainability to the back burner
Summary: Warns of more sustainability related contract clauses. The industry would welcome a greater degree of joined-up, cross-party and cross-departmental political thinking on sustainable construction. If clear motivational incentives are brought forward by government, the industry is likely to respond positively and push innovation up the agenda, allowing it to play a vital role in line with government sustainability objectives, which may promote future business opportunities and economic benefits.
More changes expected from JCT
LNB News 18/05/2009 33
Published date: 16 May 2009
Author: Shona Frame
Journal name: Construction Law Journal
Journal date: 1 April 2009
Journal citation: (2009) 20 3 Cons.Law 17
Jurisdiction: England; Wales; Scotland
Abstract: Construction Law, April 2009: Sustainability and Construction Act amendment related changes are in the offing.
Summary: Examines the recent contracts published by the Joint Contracts Tribunal and takes a look forward to what to expect next. The whole contractual chain is covered: consultants' appointments and main contracts, sub contracts and sub-sub contracts. It is perhaps not surprising, given the huge choice of contracts available, that JCT standard forms are used in about 70 per cent of the building contracts in the UK.
Property / Landlord & Tenant: Becoming a yes man
LNB News 12/05/2009 41
Published date: 12 May 2009
Author: Rajeev Nayyar
Journal name: New Law Journal
Journal date: 8 May 2009
Journal citation: 159 NLJ 658
Jurisdiction: England; Wales
Abstract: New Law Journal, Issue 7368: Grounds on which a landlord can refuse consent to an assignment
Summary: Finds the recession leaves landlords with fewer choices. If a tenant applies for consent to assign its lease and the lease contains a qualified covenant against assignment, statute requires its landlord to convey its written decision on the application to the tenant within reasonable time. If the landlord is minded to refuse consent, it must ensure that its grounds relate to the identity and character of the incoming tenant rather than to any other reason and that the written notification contains all its reasons for refusal.
Property / Landlord & Tenant: Rent in administration
LNB News 12/05/2009 42
Published date: 12 May 2009
Author: Mark Sefton and Cameron Lawes
Journal name: New Law Journal
Journal date: 8 May 2009
Journal citation: 159 NLJ 661
Jurisdiction: England; Wales
Abstract: New Law Journal, 7368: Does rent count as an expense in a liquidation?
Summary: Discuss how in rental default cases landlords are often caught in the middle. If a tenant is in administration, the landlord first needs the consent of either the administrator or the court in order to forfeit, even by peaceable re-entry. The administrator is likely to refuse his consent, saying that the lease is needed for the purposes of the administration, and the law reports are littered with cases where consent to forfeit has been refused by the courts, even in the face of rent arrears and an obvious breach of the alienation covenant.
Take care not to leave it too late
LNB News 11/05/2009 43
Published date: 11 May 2009
Author: Sandi Murdoch
Journal name: Estates Gazette
Journal date: 25 April 2009
Journal citation: Estates Gazette, 25 April 2009, 137
Jurisdiction: England; Wales
Abstract: Estates Gazette, 25 April 2009: The importance of correctly interpreting right to break provisions in tenancy agreements.
Summary: Looks at the operation of tenants' break provisions and warns they must accord with the lease and strictly adhere to any time limits. Tenants' break provisions have, over the years, provided numerous legal challenges. Preconditions to the right to break – notably compliance with the lease obligations – have cost many tenants since the law has always insisted on a total absence of any current breaches, a standard that it almost impossible to achieve in practice.
Back on the shelf
LNB News 11/05/2009 54
Published date: 11 May 2009
Author: Monty Trent
Journal name: Solicitors Journal
Journal date: 21 April 2009
Journal citation: Solicitors Journal, 21 April 2009, 16
Jurisdiction: England; Wales
Related legislation: Tribunals Courts and Enforcement Act 2007
Abstract: Solicitors Journal, 21 April 2009: Why has implementation of some provisions of the Tribunals Courts and Enforcement Act been delayed?
Summary: Looks at the Tribunals Courts and Enforcement Act 2007 (TCA) and asks why the Ministry of Justice is delaying the implementation of some of its most significant provisions. Nearly two years after it was enacted, the TCA is yet to be fully implemented. The Act covers a lot of ground; a new unified tribunal structure, new criterion for judicial appointment, a new regime for Administration Orders and immunity from seizure for museum exhibits that have been lent to this country from overseas.
Crunching the numbers
LNB News 11/05/2009 55
Published date: 10 May 2009
Author: Anthony Griffiths
Journal name: Estates Gazette
Journal date: 25 April 2009
Journal citation: Estates Gazette, 25 April 2009, 128
Jurisdiction: England; Scotland; Northern Ireland; Wales
Abstract: Estates Gazette, 25 April 2009: The challenges faced by property valuers in the current economic climate.
Summary: Looks at the difficulties faced by valuers who are under pressure in the downturn over past and current valuations. Valuers are expected to take into account many factors, such as the economy, the state of the property market, sentiment and the strength of tenant covenants, in a market with almost no transactional evidence. Desktop valuations of all types of property are required because banks do not always want to instruct formal valuations since this could cause problems with their clients breaching banking convenants.
Killing off enthusiasm
LNB News 11/05/2009 59
Published date: 10 May 2009
Author: Beverley Vara
Journal name: Estates Gazette
Journal date: 25 April 2009
Journal citation: Estates Gazette, 25 April 2009, 133
Jurisdiction: England; Wales
Abstract: Estates Gazette, 25 April 2009: What are the potential problems developers may face with conditional contracts?
Summary: Looks at obtaining planning permission as a condition of conditional contracts. Numerous disputes have arisen lately in respect of conditional contracts for the sale and purchase of land. Where sites are being acquired for development, it is common for the developers to enter into a contract to purchase the land from the vendor, but for that contract to be conditional depends upon various factors, including that the developer obtains planning permission for the proposed development.
The future is bright, the future is green
LNB News 11/05/2009 57
Published date: 10 May 2009
Author: Virginia Clegg
Journal name: Estates Gazette
Journal date: 25 April 2009
Journal citation: Estates Gazette, 25 April 2009, 132
Jurisdiction: England; Scotland; Northern Ireland; Wales
Abstract: Estates Gazette, 25 April 2009: Will cash incentives improve the energy efficiency of commercial buildings?
Summary: Looks at whether the government should introduce cash incentives to improve the energy efficiency of commercial buildings, as suggested in a recent parliamentary committee. Occupiers are realising that green buildings are cheaper to run in the long term and may be easier to dispose of. In this regard, the current economic situation, which focuses boardroom minds on areas where costs can be saved, is unlikely drastically to alter the trajectory of the move greenwards, even if it slows it for a while.
Solution to poorly defined subjects
LNB News 11/05/2009 58
Published date: 10 May 2009
Author: Chris Edwards
Journal name: Estates Gazette
Journal date: 25 April 2009
Journal citation: Estates Gazette, 25 April 2009, 133
Jurisdiction: England; Wales
Abstract: Estates Gazette, 25 April 2009: RICS issues two papers to supplement its Code of Practice on service charges.
Summary: Explains the implications of two RICS information papers, which are to supplement its Code of Practice on service charges. The first paper addresses sinking and reserve funds and depreciation charges, the second looks at the possible effects of tenant alterations on services charges. The papers inform managers and those involved in the service charge process, including owners, occupiers and solicitors.
Has CRAR been lost forever?
LNB News 11/05/2009 46
Published date: 10 May 2009
Author: Emma Humphreys
Journal name: Estates Gazette
Journal date: 18 April 2009
Journal citation: Estates Gazette, 18 April 2009, 96
Jurisdiction: England; Wales
Abstract: Estates Gazette, 18 April 2009: Why has there been a delay in implementing the commercial rent arrears recovery system?
Summary: Argues that the government's replacement for the law of distress may not come to fruition. Statutory regulations were required to set out the operational details of commercial rent arrears recovery, which replaces the landlord remedy of distress. These regulations were expected by autumn 2007, with a view to bringing the CRAR regime into force later that year but the regulations have yet to be circulated.
Competing for the same patch of grass
LNB News 11/05/2009 47
Published date: 10 May 2009
Author: Sandi Murdoch
Journal name: Estates Gazette
Journal date: 18 April 2009
Journal citation: Estates Gazette, 18 April 2009, 97
Jurisdiction: England; Wales
Abstract: Estates Gazette, 18 April 2009: How the use of land is relevant in the decision to register it as a town or village green.
Summary: Looks at the issue of registering land as a town or village green and suggests this might not be possible if the locals have consistently deferred to the landlord's use. In recent years, the registration of land as a town or village green has become a useful weapon in the hands of local residents who want to prevent the development of amenity land. As a result of some high profile cases, the scope of registration has been broadened.
A ticket to effective negotiations
LNB News 11/05/2009 61
Published date: 10 May 2009
Author: Teresa Edmund
Journal name: Estates Gazette
Journal date: 18 April 2009
Journal citation: Estates Gazette, 18 April 2009, 94
Jurisdiction: England; Wales
Abstract: Estates Gazette, 18 April 2009: Why the Code for Leasing Business Premises is a valuable tool for landlords and tenants.
Summary: Examines the clauses of the Code for Leasing Business Premises. The code aims to introduce greater flexibility and fairness in commercial lease transactions and provide a better balance between the interests of landlords and tenants. It seeks to avoid the imbalances that can arise as a result of market conditions and to ensure that landlords offer properties on a range of different lease terms and at different rents.
Don't rely on merely a handshake
LNB News 11/05/2009 60
Published date: 10 May 2009
Author: Jonathan Small QC and Oliver Radley-Gardner
Journal name: Estates Gazette
Journal date: 18 April 2009
Journal citation: Estates Gazette, 18 April 2009, 90
Jurisdiction: England; Wales
Abstract: Estates Gazette, 18 April 2009: What are the legal consequences if a joint venture agreement is dissolved?
Summary: Looks at the requirements that need to be met for an oral agreement to be protected, focusing in particular on joint venture agreements. Joint ventures are increasingly likely to dissolve before the development is completed or the site is sold. Often, the commercial relationship between the parties has remained fluid, and a firm contractual relationship has therefore not been established.
More useful than you'd think
LNB News 11/05/2009 40
Published date: 8 May 2009
Author: John Martin
Journal name: Solicitors Journal
Journal date: 17 March 2009
Journal citation: Solicitors Journal, 17 March 2009, 13
Jurisdiction: England; Wales
Abstract: Solicitors Journal, 17 March 2009: How landlords can use 'substantial breaches' more effectively to refuse renewal of a business lease.
Summary: Looks at how landlords can use 'substantial breaches' of a tenancy to refuse renewal of a lease on business premises. If the facts alleged to support the breach are proved, the court then enjoys discretion over whether or not to order the grant of a new tenancy. If it declines to exercise that discretion the tenant has no right to compensation for disturbance in that respect.
10 years is a long, long time
LNB News 11/05/2009 32
Published date: 8 May 2009
Author: Patrick Stone
Journal name: Building
Journal date: 13 March 2009
Journal citation: Building, 13 March 2009, 51
Jurisdiction: England; Wales; United Arab Emirates
Abstract: Building, 13 March 2009: How contractors and engineers can avoid breaching UAE laws on building defects.
Summary: Looks at Emirates law on defects that threaten a building's stability, and asks what contractors and engineers can do to avoid ten years of liability. Under UAE law, main contractors and engineers may have to compensate their employer for the collapse of any part of a building that they construct or for a defect that threatens its stability or safety, even if they are not at fault. This applies if the collapse or defect occurs within ten years of handing over the works.
A quandary of quarries
LNB News 08/05/2009 49
Published date: 7 May 2009
Author: Laura Clarke
Journal name: Solicitors Journal
Journal date: 28 April 2009
Journal citation: Solicitors Journal, 28 April 2009, 14
Jurisdiction: England; Wales
Abstract: Solicitors Journal, 28 April 2009: How the re-working of quarries can affect home buyers and owners.
Summary: Explains how the re-working of quarries could affect homeowners and buyers and looks at the various factors their legal advisors need to consider. Many homeowners might have purchased their properties with the knowledge that a quarry was located nearby. However, the premise on which some surveyors might have valued such properties is that if the quarry has not been worked for a number of years it is unlikely to be worked in the future, and they would have valued the property accordingly.
Crunching the numbers
LNB News 01/05/2009 46
Published date: 30 April 2009
Author: Anthony Griffiths
Journal name: Estates Gazette
Journal date: 25 April 2009
Journal citation: Estates Gazette, 25 April 2009
Jurisdiction: England
Abstract: Estates Gazette, 25 April 2009: RICS guidance and practice continues to be upheld.
Summary: Discusses changing problems property valuers have faced since the late 1980's and the introduction of good valuation procedure codes of practice. In the late 1980s as a result of this kind of practice, the banks put pressure on RICS to revise its guidance and practice, which resulted in the publication of the Red Book in 1993. Its purpose has also been to reduce litigation due to inaccurate valuation and to make valuations efficient in the current recession when property is very difficult to value.
Property: HIP operation
LNB News 27/04/2009 78
Published date: 27 April 2009
Author: Peter Ambrose
Journal name: New Law Journal
Journal date: 24 April 2009
Journal citation: 159 NLJ 586
Jurisdiction: England; Wales
Abstract: New Law Journal, Issue 7366: Should HIPS be dismissed as an obligatory irrelevance?
Summary: Asks whether Home Information Packs will finally provide benefits. The credibility of HIPs is certainly not helped by the lack of understanding among HIP providers of basic property legal issues, so it is hardly surprising that faith is often lacking in the accuracy of documents that they produce. However, given that the disclosures on a PIQ are easily transferred to the SPIF ready for signing by the client, this should prove a useful time-saver when preparing these documents, which traditionally clients can be notoriously slow in completing.
What really disappoints Cosmetatos, however, is that the Treasury did not implement the proposals put forward by the BPF, representing the Reits sector, to help them through the recession. The BPF had proposed relaxations to the rules that require Reits to distribute most of the cash they receive in rents and most other sources within months. For instance, there is a rule that requires a Reit to distribute to shareholders 90 per cent of property income a year. A slight loosening of such rules would allow these businesses to build a somewhat larger cash buffer--a useful precaution, according to the BPF, in a year in which the economy is shrinking and property is among the worst-affected sectors. But no such changes were announced in the Budget.
"Perhaps the government wasn't convinced that failure to fix this would lead to imminent problems for any of the Reits," says Cosmetatos, trying to find a reason for the lack of action. He is very disappointed to see the government concentrating, as he sees it, on firefighting and pouring billions into banks without listening to the calm, rational voices trying to plan ahead and avoid disasters down the line. "The category that is missing from their actions is doing the sensible, current, strategic thinking that plans," he says. Instead, he urges the government not to "wait until we are on our knees and an urgent intervention is needed. See what sensible, targeted interventions can be made now."
Cosmetatos now has to consult with his Reits members on the way forward. Obviously, it is quite likely that they will continue to push these points. It is possible that some changes could be done through a statutory instrument rather than waiting another year for the Finance Bill 2010. But Cosmetatos says: "If they are not prepared to do it in a Finance Bill, they probably won't do it."
The BPF had also made broader calls on other property issues to the Chancellor.
These had received much support from the property community. Gerard Moran of Hunters solicitors and a council member of the Stamp Taxes Practitioners Group says: "I had supported the call by the BPF for removing the 4 per cent disincentive on institutional investment by bulk purchase of rented residential property, linked to more professional and efficient management and availability of such property in the private sector." This did not come through. He is not impressed with the Chancellor's move to extend the waiver of Stamp Duty on housing transactions of up to £175,000 until the end of this year. He believes that there are many areas where houses worth under this level are not common. He comments: "The cap of £175,000 for nil rate purchase of residences was always unrealistic in many areas and there can be little difference from extending this so-called 'holiday' for under four months."
Articles
Friends disunited
LNB News 18/05/2009 45
Published date: 17 May 2009
Author: Ann Minogue
Journal name: Building
Journal date: 20 March 2009
Journal citation: Building, 20 March 2009, 57
Jurisdiction: England; Wales
Abstract: Building, 20 March 2009: In a downturn, contracts are scrutinised with the sort of attention that might better have been devoted to putting them in place correctly at the outset.
Summary: Explains, in this economic climate, all parties have a tendency to look more closely at their rights and remedies. The contract comes out of the drawer and is scrutinised with the sort of attention that might have been better devoted to putting it in place correctly at the outset rather than deconstructing it afterwards. In addition, in the commercial world, you do not know who you may ultimately be dealing with.
Sustainability gains ground
LNB News 18/05/2009 27
Published date: 16 May 2009
Author: Helen Garthwaite
Journal name: Construction Law Journal
Journal date: 1 April 2009
Journal citation: (2009) 20 3 Cons.Law 6
Jurisdiction: England; Wales
Abstract: Construction Law, April 2009: The credit crunch has not pushed sustainability to the back burner
Summary: Warns of more sustainability related contract clauses. The industry would welcome a greater degree of joined-up, cross-party and cross-departmental political thinking on sustainable construction. If clear motivational incentives are brought forward by government, the industry is likely to respond positively and push innovation up the agenda, allowing it to play a vital role in line with government sustainability objectives, which may promote future business opportunities and economic benefits.
More changes expected from JCT
LNB News 18/05/2009 33
Published date: 16 May 2009
Author: Shona Frame
Journal name: Construction Law Journal
Journal date: 1 April 2009
Journal citation: (2009) 20 3 Cons.Law 17
Jurisdiction: England; Wales; Scotland
Abstract: Construction Law, April 2009: Sustainability and Construction Act amendment related changes are in the offing.
Summary: Examines the recent contracts published by the Joint Contracts Tribunal and takes a look forward to what to expect next. The whole contractual chain is covered: consultants' appointments and main contracts, sub contracts and sub-sub contracts. It is perhaps not surprising, given the huge choice of contracts available, that JCT standard forms are used in about 70 per cent of the building contracts in the UK.
Property / Landlord & Tenant: Becoming a yes man
LNB News 12/05/2009 41
Published date: 12 May 2009
Author: Rajeev Nayyar
Journal name: New Law Journal
Journal date: 8 May 2009
Journal citation: 159 NLJ 658
Jurisdiction: England; Wales
Abstract: New Law Journal, Issue 7368: Grounds on which a landlord can refuse consent to an assignment
Summary: Finds the recession leaves landlords with fewer choices. If a tenant applies for consent to assign its lease and the lease contains a qualified covenant against assignment, statute requires its landlord to convey its written decision on the application to the tenant within reasonable time. If the landlord is minded to refuse consent, it must ensure that its grounds relate to the identity and character of the incoming tenant rather than to any other reason and that the written notification contains all its reasons for refusal.
Property / Landlord & Tenant: Rent in administration
LNB News 12/05/2009 42
Published date: 12 May 2009
Author: Mark Sefton and Cameron Lawes
Journal name: New Law Journal
Journal date: 8 May 2009
Journal citation: 159 NLJ 661
Jurisdiction: England; Wales
Abstract: New Law Journal, 7368: Does rent count as an expense in a liquidation?
Summary: Discuss how in rental default cases landlords are often caught in the middle. If a tenant is in administration, the landlord first needs the consent of either the administrator or the court in order to forfeit, even by peaceable re-entry. The administrator is likely to refuse his consent, saying that the lease is needed for the purposes of the administration, and the law reports are littered with cases where consent to forfeit has been refused by the courts, even in the face of rent arrears and an obvious breach of the alienation covenant.
Take care not to leave it too late
LNB News 11/05/2009 43
Published date: 11 May 2009
Author: Sandi Murdoch
Journal name: Estates Gazette
Journal date: 25 April 2009
Journal citation: Estates Gazette, 25 April 2009, 137
Jurisdiction: England; Wales
Abstract: Estates Gazette, 25 April 2009: The importance of correctly interpreting right to break provisions in tenancy agreements.
Summary: Looks at the operation of tenants' break provisions and warns they must accord with the lease and strictly adhere to any time limits. Tenants' break provisions have, over the years, provided numerous legal challenges. Preconditions to the right to break – notably compliance with the lease obligations – have cost many tenants since the law has always insisted on a total absence of any current breaches, a standard that it almost impossible to achieve in practice.
Back on the shelf
LNB News 11/05/2009 54
Published date: 11 May 2009
Author: Monty Trent
Journal name: Solicitors Journal
Journal date: 21 April 2009
Journal citation: Solicitors Journal, 21 April 2009, 16
Jurisdiction: England; Wales
Related legislation: Tribunals Courts and Enforcement Act 2007
Abstract: Solicitors Journal, 21 April 2009: Why has implementation of some provisions of the Tribunals Courts and Enforcement Act been delayed?
Summary: Looks at the Tribunals Courts and Enforcement Act 2007 (TCA) and asks why the Ministry of Justice is delaying the implementation of some of its most significant provisions. Nearly two years after it was enacted, the TCA is yet to be fully implemented. The Act covers a lot of ground; a new unified tribunal structure, new criterion for judicial appointment, a new regime for Administration Orders and immunity from seizure for museum exhibits that have been lent to this country from overseas.
Crunching the numbers
LNB News 11/05/2009 55
Published date: 10 May 2009
Author: Anthony Griffiths
Journal name: Estates Gazette
Journal date: 25 April 2009
Journal citation: Estates Gazette, 25 April 2009, 128
Jurisdiction: England; Scotland; Northern Ireland; Wales
Abstract: Estates Gazette, 25 April 2009: The challenges faced by property valuers in the current economic climate.
Summary: Looks at the difficulties faced by valuers who are under pressure in the downturn over past and current valuations. Valuers are expected to take into account many factors, such as the economy, the state of the property market, sentiment and the strength of tenant covenants, in a market with almost no transactional evidence. Desktop valuations of all types of property are required because banks do not always want to instruct formal valuations since this could cause problems with their clients breaching banking convenants.
Killing off enthusiasm
LNB News 11/05/2009 59
Published date: 10 May 2009
Author: Beverley Vara
Journal name: Estates Gazette
Journal date: 25 April 2009
Journal citation: Estates Gazette, 25 April 2009, 133
Jurisdiction: England; Wales
Abstract: Estates Gazette, 25 April 2009: What are the potential problems developers may face with conditional contracts?
Summary: Looks at obtaining planning permission as a condition of conditional contracts. Numerous disputes have arisen lately in respect of conditional contracts for the sale and purchase of land. Where sites are being acquired for development, it is common for the developers to enter into a contract to purchase the land from the vendor, but for that contract to be conditional depends upon various factors, including that the developer obtains planning permission for the proposed development.
The future is bright, the future is green
LNB News 11/05/2009 57
Published date: 10 May 2009
Author: Virginia Clegg
Journal name: Estates Gazette
Journal date: 25 April 2009
Journal citation: Estates Gazette, 25 April 2009, 132
Jurisdiction: England; Scotland; Northern Ireland; Wales
Abstract: Estates Gazette, 25 April 2009: Will cash incentives improve the energy efficiency of commercial buildings?
Summary: Looks at whether the government should introduce cash incentives to improve the energy efficiency of commercial buildings, as suggested in a recent parliamentary committee. Occupiers are realising that green buildings are cheaper to run in the long term and may be easier to dispose of. In this regard, the current economic situation, which focuses boardroom minds on areas where costs can be saved, is unlikely drastically to alter the trajectory of the move greenwards, even if it slows it for a while.
Solution to poorly defined subjects
LNB News 11/05/2009 58
Published date: 10 May 2009
Author: Chris Edwards
Journal name: Estates Gazette
Journal date: 25 April 2009
Journal citation: Estates Gazette, 25 April 2009, 133
Jurisdiction: England; Wales
Abstract: Estates Gazette, 25 April 2009: RICS issues two papers to supplement its Code of Practice on service charges.
Summary: Explains the implications of two RICS information papers, which are to supplement its Code of Practice on service charges. The first paper addresses sinking and reserve funds and depreciation charges, the second looks at the possible effects of tenant alterations on services charges. The papers inform managers and those involved in the service charge process, including owners, occupiers and solicitors.
Has CRAR been lost forever?
LNB News 11/05/2009 46
Published date: 10 May 2009
Author: Emma Humphreys
Journal name: Estates Gazette
Journal date: 18 April 2009
Journal citation: Estates Gazette, 18 April 2009, 96
Jurisdiction: England; Wales
Abstract: Estates Gazette, 18 April 2009: Why has there been a delay in implementing the commercial rent arrears recovery system?
Summary: Argues that the government's replacement for the law of distress may not come to fruition. Statutory regulations were required to set out the operational details of commercial rent arrears recovery, which replaces the landlord remedy of distress. These regulations were expected by autumn 2007, with a view to bringing the CRAR regime into force later that year but the regulations have yet to be circulated.
Competing for the same patch of grass
LNB News 11/05/2009 47
Published date: 10 May 2009
Author: Sandi Murdoch
Journal name: Estates Gazette
Journal date: 18 April 2009
Journal citation: Estates Gazette, 18 April 2009, 97
Jurisdiction: England; Wales
Abstract: Estates Gazette, 18 April 2009: How the use of land is relevant in the decision to register it as a town or village green.
Summary: Looks at the issue of registering land as a town or village green and suggests this might not be possible if the locals have consistently deferred to the landlord's use. In recent years, the registration of land as a town or village green has become a useful weapon in the hands of local residents who want to prevent the development of amenity land. As a result of some high profile cases, the scope of registration has been broadened.
A ticket to effective negotiations
LNB News 11/05/2009 61
Published date: 10 May 2009
Author: Teresa Edmund
Journal name: Estates Gazette
Journal date: 18 April 2009
Journal citation: Estates Gazette, 18 April 2009, 94
Jurisdiction: England; Wales
Abstract: Estates Gazette, 18 April 2009: Why the Code for Leasing Business Premises is a valuable tool for landlords and tenants.
Summary: Examines the clauses of the Code for Leasing Business Premises. The code aims to introduce greater flexibility and fairness in commercial lease transactions and provide a better balance between the interests of landlords and tenants. It seeks to avoid the imbalances that can arise as a result of market conditions and to ensure that landlords offer properties on a range of different lease terms and at different rents.
Don't rely on merely a handshake
LNB News 11/05/2009 60
Published date: 10 May 2009
Author: Jonathan Small QC and Oliver Radley-Gardner
Journal name: Estates Gazette
Journal date: 18 April 2009
Journal citation: Estates Gazette, 18 April 2009, 90
Jurisdiction: England; Wales
Abstract: Estates Gazette, 18 April 2009: What are the legal consequences if a joint venture agreement is dissolved?
Summary: Looks at the requirements that need to be met for an oral agreement to be protected, focusing in particular on joint venture agreements. Joint ventures are increasingly likely to dissolve before the development is completed or the site is sold. Often, the commercial relationship between the parties has remained fluid, and a firm contractual relationship has therefore not been established.
More useful than you'd think
LNB News 11/05/2009 40
Published date: 8 May 2009
Author: John Martin
Journal name: Solicitors Journal
Journal date: 17 March 2009
Journal citation: Solicitors Journal, 17 March 2009, 13
Jurisdiction: England; Wales
Abstract: Solicitors Journal, 17 March 2009: How landlords can use 'substantial breaches' more effectively to refuse renewal of a business lease.
Summary: Looks at how landlords can use 'substantial breaches' of a tenancy to refuse renewal of a lease on business premises. If the facts alleged to support the breach are proved, the court then enjoys discretion over whether or not to order the grant of a new tenancy. If it declines to exercise that discretion the tenant has no right to compensation for disturbance in that respect.
10 years is a long, long time
LNB News 11/05/2009 32
Published date: 8 May 2009
Author: Patrick Stone
Journal name: Building
Journal date: 13 March 2009
Journal citation: Building, 13 March 2009, 51
Jurisdiction: England; Wales; United Arab Emirates
Abstract: Building, 13 March 2009: How contractors and engineers can avoid breaching UAE laws on building defects.
Summary: Looks at Emirates law on defects that threaten a building's stability, and asks what contractors and engineers can do to avoid ten years of liability. Under UAE law, main contractors and engineers may have to compensate their employer for the collapse of any part of a building that they construct or for a defect that threatens its stability or safety, even if they are not at fault. This applies if the collapse or defect occurs within ten years of handing over the works.
A quandary of quarries
LNB News 08/05/2009 49
Published date: 7 May 2009
Author: Laura Clarke
Journal name: Solicitors Journal
Journal date: 28 April 2009
Journal citation: Solicitors Journal, 28 April 2009, 14
Jurisdiction: England; Wales
Abstract: Solicitors Journal, 28 April 2009: How the re-working of quarries can affect home buyers and owners.
Summary: Explains how the re-working of quarries could affect homeowners and buyers and looks at the various factors their legal advisors need to consider. Many homeowners might have purchased their properties with the knowledge that a quarry was located nearby. However, the premise on which some surveyors might have valued such properties is that if the quarry has not been worked for a number of years it is unlikely to be worked in the future, and they would have valued the property accordingly.
Crunching the numbers
LNB News 01/05/2009 46
Published date: 30 April 2009
Author: Anthony Griffiths
Journal name: Estates Gazette
Journal date: 25 April 2009
Journal citation: Estates Gazette, 25 April 2009
Jurisdiction: England
Abstract: Estates Gazette, 25 April 2009: RICS guidance and practice continues to be upheld.
Summary: Discusses changing problems property valuers have faced since the late 1980's and the introduction of good valuation procedure codes of practice. In the late 1980s as a result of this kind of practice, the banks put pressure on RICS to revise its guidance and practice, which resulted in the publication of the Red Book in 1993. Its purpose has also been to reduce litigation due to inaccurate valuation and to make valuations efficient in the current recession when property is very difficult to value.
Property: HIP operation
LNB News 27/04/2009 78
Published date: 27 April 2009
Author: Peter Ambrose
Journal name: New Law Journal
Journal date: 24 April 2009
Journal citation: 159 NLJ 586
Jurisdiction: England; Wales
Abstract: New Law Journal, Issue 7366: Should HIPS be dismissed as an obligatory irrelevance?
Summary: Asks whether Home Information Packs will finally provide benefits. The credibility of HIPs is certainly not helped by the lack of understanding among HIP providers of basic property legal issues, so it is hardly surprising that faith is often lacking in the accuracy of documents that they produce. However, given that the disclosures on a PIQ are easily transferred to the SPIF ready for signing by the client, this should prove a useful time-saver when preparing these documents, which traditionally clients can be notoriously slow in completing.
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