Other Areas to Cover Flashcards
What is the difference between a Lease and a Licence?
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
What is an Easement?
- Permanent right of access
- Capital payment received
What are the sections of the Landlord and Tenanct Act 1954?
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
What are the current Business Rates?
- 0.499p less than £51,000
- 0.512p more than £51,000
What are the key dates for the revaluation of Business Rates?
- Previously 2017
- New list 1st April 2023
- Antecedent Date 1st April 2021
- Expected to update every 3 years
When can business rates relief be applicable?
- 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
What can you tell me about the performance on the Leeds Industrial market?
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)
What can you tell me about the performance on the Leeds Office market?
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)
What is the current rate of inflation?
10 - 10.5%
How can a change in business rates affect valuations?
- Increased consideration to the liability of business rates
- Can have an affect on the market if occupiers can’t afford increased rates