… from the DAC Beachcroft real estate asset management group: Renewing interest in lease renewals.
If your tenant is delaying agreeing a lease renewal you can encourage them to move things forward by flagging the SDLT incentives, a couple of which are highlighted below:
1. SDLT leases with security of tenure under the 1954 Act “grow” once held over for a year, requiring a further SDLT return to be filed and most likely requiring additional SDLT to be paid. This is an administrative burden for the tenant and may lead to a greater overall SDLT liability for them. This is avoided if the new lease is agreed within a year of the old lease expiring.
2. Alternatively, where the old lease was subject to stamp duty and has been held over, you may be able to greatly reduce the tenant’s SDLT liability by not requiring the new lease to be backdated to the day after the old lease expired. The value of this will depend on any rent increases in the holdover period and calculations should be done to find the most tax efficient option.
Knowledge of points such as these can strengthen your negotiating position with your tenant.
… from the DAC Beachcroft real estate asset management group: repayment of rent paid in advance. Click here
Rights to light issues are becoming increasingly common, and although cases that end up in court remain rare, the consequences of disputes can be serious. Developers who infringe neighbours’ rights to light can be forced to pay compensation or even tear down a completed building.
The amount of natural light neighbouring property owners enjoy might seem a minor consideration for a developer embarking on a major commercial development, however rights to light are protected in law.
Zurich examine four ways of addressing rights to light issues: click here to read the full Zurich Insider article.
… from the DAC Beachcroft real estate asset management group: Foreign Exchange opinion letters. Click here
We are pleased to advise that with the effect from Wednesday 5 August 2015 Arlington Insurance Services in London acquired the book of business from London and Capital Commercial Insurance Services Ltd (L&C CIS Ltd). This follows the retirement of David Fletcher after 35 years of service with L&C CIS Ltd.
All L&C CIS Ltd clients have been informed of the change and insurers contacted to transfer all policies held within their agency with immediate effect.
Arlington is committed to maintaining the style and standard of personal service enjoyed by David’s clients, as well as providing increased resources and even more insurers markets to ensure that both premiums and cover remain competitive.