Other Areas to Cover Flashcards

1
Q

What is the difference between a Lease and a Licence?

A

Lease:
- Payment of rent
- Specified term
- Exclusive occupation
- Can’t be terminated unless there is a break clause

Licence:
- The right to enter a property
- Can be terminated by any party

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2
Q

What is an Easement?

A
  • Permanent right of access
  • Capital payment received
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3
Q

What are the sections of the Landlord and Tenanct Act 1954?

A

Section 24 = Holding over
Section 25 = Landlord notice to end or seek new lease
Section 26 = Tenant can apply for a new lease
Section 27 = Tenant notice to end lease
Section 28 = Agreement to renew
Section 30 = Grounds for refusal of a new lease (7 grounds – must be proved to court)
 Breaches of tenancy
 Owner occupation
 Redevelopment

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4
Q

What are the current Business Rates?

A
  • 0.499p less than £51,000
  • 0.512p more than £51,000
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5
Q

What are the key dates for the revaluation of Business Rates?

A
  • Previously 2017
  • New list 1st April 2023
  • Antecedent Date 1st April 2021
  • Expected to update every 3 years
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6
Q

When can business rates relief be applicable?

A
  • Temporary exemptions for vacancy
    o 3-months offices and retail
    o 6-months industrial
    o If occupied for 6 weeks again then becomes available for relief once vacated
  • Exemptions:
    o Vacant listed buildings
    o Charities
    o Companies in administration
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7
Q

What can you tell me about the performance on the Leeds Industrial market?

A

o Prime Rent = £8.25 psf
 Pegasus at Logic 30,000 sq ft - £8.75 psf (brand new)

o Vacancy Rate = Very Low driving increasing rent

o Doncaster and Sheffield slightly lower rents

o Speculative developments increasing

o Average Yield = 4.7% (moved down from 7% 5 years ago)

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8
Q

What can you tell me about the performance on the Leeds Office market?

A

o Prime Rent = £36.00 psf (11+12 Wellington Place – Lloyds 125,000 sq ft)

o Out of Town = £24.75 psf

o Take up = Consistent

o Prime Yields = 5.75%

o Out of Town Yields = 6.75% (Knight Frank)

o Flight to Quality = smaller but better-quality space (over half of the deals are below 5,000 sq ft)

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9
Q

What is the current rate of inflation?

A

10 - 10.5%

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10
Q

How can a change in business rates affect valuations?

A
  • Increased consideration to the liability of business rates
  • Can have an affect on the market if occupiers can’t afford increased rates
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