On behalf of FTBA (Furnishing Trades Benevolent Association) the Midtown Agency team have sold the freehold interest of 8 Fulwood Place WC1, with full vacant possession. The building, requiring refurbishment, comprises 1,862 sqft over Lower Ground, Ground and 3 upper floors. The building has been bought by a private individual to be refurbished and then occupied by the new owner for her solicitors practice. The price achieved equating to £750,000 was well in excess of the asking price.
The City investment market can now be characterised as too much money chasing too few properties, with many foreign investors in play. Certainly, supply has been at a low ebb for the last 3-4 months, although there are signs of a little more becoming available. Banks are generally being much more canny than in the last recession, this time by ‘managing-out’ their property loans which have gone into breach – and are only slowly leaking properties onto the market, rather than dumping the lot which would of course drive prices down! The imbalance of supply and demand has driven prices up, which is helping the banks in their manage-out task – prime City yields are now fast approaching 6%, down by at least 100 baisis points from only 6-9 months ago.
Kinney Greens Midtown office are delighted to have been involved in the acquisition of the freehold interest of 4 self contained office buildings in the beautiful Charterhouse Mews off Charterhouse Square on behalf of the Order of St John. The buildings total approximately 5,670 sq ft and were purchased for a little under £3 million.
The charity, dating back over 900 years, will occupy two intercommunicating buildings, numbers 3 and 4, at the back of the mews and is using Kinney Green to let buildings 1 and 2 which have now been refurbished. The quoting rent for buildings 1 and 2 is £25 per sq ft, and we are just about to put them under offer.
The purpose of the rating revaluation effective from 1/4/2010 is to try to ensure rateable values are based on more up-to-date rental values. The rateable value of a property can change significantly between each revaluation. As a result of these changes, some ratepayers may face a large increase (or decrease) in their rates bill. The Transitional Relief scheme is designed to help phase in the effects of these changes by limiting how much the rates bill can increase or decrease each year.
The transitional arrangements following the 2010 revaluation mean that rates bills for businesses operating from small properties (i.e. those properties with rateable values below £25,500 in Greater London or £18,000 elsewhere in England and Wales) will not rise as steeply as they would do otherwise.
Below are two tables illustrating the yearly increase/decrease limit on Rate Bills
Kinney Green are pleased to be recognised as approved and accredited members of HelpMovingOffice.
www.HelpMovingOffice.co.uk is the independent internet resource that guides companies through the office relocation process and ensures that office moves happen on time, to budget and with the minimum hassle and disruption to businesses.
Business rates revaluation takes place every five years and the next revaluation will take effect from 1st April 2010, based on values at 1st April 2008. The Valuation Office Agency (VOA) will notify ratepayers of the new proposed rateable values effective from 1st April 2009, in October.
The Department for Communities and Local Government (DCLG) has published a consultation paper The transitional arrangements for the non-domestic rating revaluation 2010 in England which is concerned with large decreases or large increases in rate liabilities between the current 2005 Rating List and the 2010 Rating List which will be in force on 1st April 2010.
By virtue of the statute, transitional arrangements must apply. The options under consideration in the consultation are:
· Option 1: Annual caps on both increases and reductions over four years with different caps for small and large properties
· Option 2: Annual caps on increases over four years funded by a supplement added to all other rates bills
· Option 3: Annual caps on both increases and reductions over five years with different caps for small and large properties
· Option 4: Annual caps on both increases and reductions over five years funded by a supplement added to all other rate bills
Based on suggestions by stakeholders that the Government should indicate its preferred options, the Government prefers Option 3 because the Government states Option 3 ensures that:
· Funding the cost of the transitional relief is targeted at those who have benefited most from the revaluation.
· No ratepayers would face very large (note: presently undefined) increases in 2014-15.
Although the provisional multiplier (Uniform Business Rates or UBR) for 2010 will not be known until Autumn of 2009, DCLG nevertheless estimates that the small business multiplier for 2010 will be 41.3 pence. The equivalent UBR is presently 48.1 pence, a 14% reduction.
Even though the DCLG cannot yet estimate the national non-domestic multiplier for 2010-11, it anticipates that London could be hit the hardest following the revaluation, with London seeing an average increase of 10%. This averaging in our view hides a far higher increase for offices, most especially in the West End, which we expect will in many cases entirely over-run by the UBR reduction.
In a last minute attempt to stave off pressure to ease the business rate burden of a 5% hike starting from 1st April, the Chancellor announced in the Commons the afternoon before that new legislation will be brought in with immediate effect allowing business ratepayers in England to defer paying 3% of the 5% rise until the following year and the year after (so until 2010/11 and 2011/2012). However, the latest bills just issued will nevertheless have to be paid now through to June, and only at that time can ratepayers apply to the Billing Authority to defer payment- i.e. to defer 60% over two years. This will therefore amount to an apparent interest free loan of barely a 1 penny in every £1 of Rateable Value this year. Thereafter the advantage is likely to be overshadowed if not lost by the large rises expected to be faced by ratepayers from 1st April 2010 when the 2010 Rating Revaluation kicks in. Whilst intended to generate equivalent total revenue for the Chancellor across England and Wales, the South East and especially London is then expected to be hit hardest with the highest rate burden increases made worse by levies for the Olympics, Crossrail, the Police levy for the City and the increasing use of special localised levies.
The Health & Safety Executive has announced changes to the gas installer registration scheme & whilst aimed primarily at the domestic sector will apply to commercial gas installations as well.
We have all become use to looking for a Corgi Registered company, but now things are changing.
As of 1st April 2009, a new “Gas Safe Register” will come into place; the scheme is going to be operated by an independent company “Capita” and will be the ONLY gas installer scheme that is approved by the Health & Safety Executive.
What you need to do is check that the installation company you are using is going to be registered with the new scheme, always ask for a “gas safe” registered engineer and check that any supplier you use are intending to transfer to the new scheme.