Other Areas to Cover

Question 1

What is the difference between a Lease and a Licence?

Answer 1

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

Question 2

What is an Easement?

Answer 2

• Permanent right of access
• Capital payment received

Question 3

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

Answer 3

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

Question 4

What are the current Business Rates?

Answer 4

• 0.499p less than £51,000
• 0.512p more than £51,000

Question 5

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

Answer 5

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

Question 6

When can business rates relief be applicable?

Answer 6

• 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

Question 7

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

Answer 7

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)

Question 8

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

Answer 8

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)

Question 9

What is the current rate of inflation?

Answer 9

10 - 10.5%

Question 10

How can a change in business rates affect valuations?

Answer 10

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