Getting Serious About Your Business Premises
The RICS has published a CD to help businesses
looking to move, improve, sublet or run their premises more efficiently. The disc
includes detailed information and is an expert guide to making the most of your business
premises. Copies available from the RICS at www.rics.org.uk
or visit www.propertyinbusiness.co.uk
Rating Lists 2005
Commercial Rateable Values to be used from 1st April
2005 are published on the Web at the VOA Website: www.voa.gov.uk . You will have received your rateable value. The
new Rating List has been published with effect from 1 April 2005. Council Tax bands for
houses are now also listed on the website. Contact your rating adviser if you think
your rateable value is wrong.
Chairman
Brandon Simms has for some time been a valuer
member of the Rent Assessment Panel. He has now been appointed by The Lord
Chancellor as a chairman. He will be appointed to Rent Assessment Committees and
Leasehold Valuation Tribunals.
Commonhold and Leasehold Reform
The Commonhold and Leasehold Reform Act 2002
has had all of its Regulations published by Statutory Instrument and all parts are now in
force. In Commonhold the Act is designed to give people the opportunity to own the
freehold of their homes, and have an interest in an organisation that would own and manage
the common parts of the development they live in. Most new Commonholds are likely to
be new developments as all occupiers in a block have to agree to change the tenure.
Just one dissenter can stop it.
In leasehold flats and houses the Act is
designed to give people reforms that make it easier to buy their freeholds, and - for
those who do not want to buy - better options for managing their own homes with greater
protection against abuse. Leasehold Valuation Tribunals (LVTs) are receiving an
increased number of applications particularly disputing service charges.
The residence test and other restrictions have
been abolished. Marriage value is disregarded where leases have more than 80 years
to run. If marriage value applies it will always be split 50/50. The
requirements to form Right To Manage (RTM) and Right to Enfranchise (RTE) companies are
detailed in the regulations.
Caps On Again!
The Rent Acts (Maximum Fair Rent) Order 1999 introduced
from 1st February 1999 a "cap" on Fair Rents based, usually, on inflation plus
5% . If the rent has not been registered since 1999 the inflation addition is 7.5%
in all other cases 5%. Landlords who carry out expensive repairs or improvements can
apply to avoid the capping but the tests are strict.
Objections to the new registrations are being heard by
Rent Assessment Committees. Even if the rent is capped an appeal will trigger a
recalculation of the inflation figure based on the date of the hearing which is usually
the effective date of the new rent. In most cases this will result in a small
increase in the capped rent but sometimes there is no change especially with the rate of
inflation being so low. From the tenant's point of view the 2 year cycle, when the
landlord can apply to the Rent Service for another increase, is also delayed.
All Change In The Courts
The Civil Procedure Rules introduced in April
2000 following the Woolf reforms have changed the way that surveyors and the Courts
interact.
A draft protocol for dilapidations has been
published. This encourages both the Landlord and the tenant to have detailed
discussions before starting proceedings. The Landlord has to justify any claim with
costings and the Tenant has to provide a valuation if he wants to use the diminution of
Landlords reversion argument. The use of electronic means for producing schedules
etc is being encouraged.
Special arrangements are being introduced to
deal with applications under the Landlord & Tenant Act 1954 and other similar
legislation e.g. Leasehold Property (Repairs) Act 1938. When making an application
for a new lease under the 1954 Landlord and Tenant Act your Chartered Surveyor will have
to be ready to prepare the expert's report in a much shorter timescale.
Unfortunately the costs are still front loaded. Instruct your expert early.
The S.25 Notice now has to include details of the terms for the new lease. These
terms have to beproper and considered.
Trained Independent Expert
Brandon Simms has been an Independent Expert for many years. All third parties
have had to be re-trained to make sure that they are up to date. Brandon Simms has
now completed his re-training by attending a course, completing an assignment and passing
an interview. He continues to be on the RICS President's panel of suitable
appointees and regularly receives appointments as an Independent Expert or Arbitrator to
resolve disputes, usually on rent reviews.
