Commercial Property

PRESS RELEASE – released 20^th January 2012

Calling All Golfers

Rotary International - Newbury

On the 10^th May 2012, The Rotary Club of Newbury is having a FUN CHARITY GOLF DAY at the picturesque,  Donnington Valley Golf Course in aid of Stroke Care for Newbury and West Berks and other selected local Rotary Charities.

There will be coffee and bacon rolls during registration starting at 07.45 with the golf starting at 09.00 based on a full handicap Stapleford competition team event.

Following the golf, a two course meal will be provided during which the prize presentation will be made and a raffle will take place.

Donnington Valley Golf Club is at Snelsmore House, Snelsmore Common, Newbury RG14 3BG

There is an entry fee of £200 for each team of four.  Alternately, Corporate Entry at £240 per team of four is available with Hole Sponsorship with your own on-course advertising.

For application forms please contact either Kevin Mosley on 0118 9811851 or Trevor Gibbons on 01635 254123 or download from our web site at http://www.newburyrotary.org

EARLY APPLICATION FOR PLACES IS RECOMMENDED.

Contact address:
Chris Bartlam,
49 Laylands Green
Kintbury
Hungerford
Berks
RG17 9UB
Tel: 01488 658540
Email: ctbartlam@googlemail.com

Rotary Club of Newbury web address: http://www.newburyrotary.org/

Rotary’s main objective is service in the community, in the workplace, and around the globe. There are 1.2 million Rotarians who make up more than 34,000 Rotary clubs in nearly every country in the world who all share a dedication to the ideal of  “Service above Self”. Rotary Club of Newbury is one of those 34,000 clubs.

Hemant Amin, a commercial property specialist at solicitors, Charles Lucas & Marshall, says a large majority of commercial property owners and landlords are risking fines for breaching energy performance regulations.

Energy Performance Certificate

An Energy Performance Certificate (EPC) is a certificate to grade the energy performance of a property on a scale from (A) very efficient to (G) least efficient.

Since 1 October 2008 an EPC has been required for the sale or lease of commercial property. This includes the transfer of a lease and grant of a sublease.  There are few exemptions so most transactions fall within the regulations.

For transactions within the regulations the seller or landlord must produce an EPC to a buyer or tenant by whichever of the following events occurs first:

•    the seller or landlord provides written information about the property to a person who has requested information
•    a prospective buyer or tenant views the property;
•    a contract is entered into to sell or rent out the property

However, in a recent survey carried out by the National Home Energy Rating Scheme (NHER) it was found that 81% of commercial properties were in breach of EPC regulations.

There are financial implications for failure to provide a valid EPC.  Trading Standards are responsible for enforcement and can, within the period of six months from expiry of the period in which it should have been initially produced, ask the seller or landlord to produce a copy of the EPC.

Failure by the seller or landlord to produce the copy EPC within seven days shall result in a fixed fine of £200 unless the seller or landlord has a reasonable excuse eg, was on holiday or suffering from illness during the seven day period.

If the seller or landlord has failed to commission an EPC or if a copy is not produced to Trading Standards within the seven day period without reasonable excuse, then Trading Standards can issue a penalty notice provided that this is done within the same six month period.

In such circumstances, the penalty is 12.5% of the rateable value of the property subject to a minimum amount of £500 and maximum amount of £5,000.  If the property has no rateable value then the fine is fixed at £750.  To what extent Trading Standards are policing EPCs is currently uncertain.

A penalty notice must be withdrawn if the seller or landlord can demonstrate that he took all reasonable steps and exercised all due diligence to avoid breaking his duty to make an EPC available.

Sellers and landlords should also consider that in addition to the financial penalty for failure to prepare an EPC, there may also be potential damage to market value and rental yield of the property.

For more information contact Hemant Amin on 01635 521212 or hemant.amin@clmlaw.co.uk

Hemant Amin, a commercial property specialist with law firm, Charles Lucas & Marshall, argues that tenants are often at a disadvantage when negotiating a commercial lease.

It has been widely recognised that the tenant is often at a disadvantage when negotiating lease terms. As a result, The Code for Leasing Business Premises in England and Wales 2007 was introduced in 2007. It makes several recommendations as to achieve a fairer balance between the landlord and the tenant and greater flexibility in commercial lease terms.

Typically a tenant will negotiate lease terms with a landlord’s agent. This immediately places the tenant at a disadvantage as negotiation takes place before the tenant’s solicitor becomes involved.

Ancillary to the Code is ‘Leasing Business Premises: Occupier’s Guide’. Its purpose is to give the tenant information which will assist at the negotiation stage of the transaction. From the tenant clients I have acted for, I have yet to hear of anyone who has used the Occupier’s Guide when negotiating lease terms with the landlord’s agent.

In July 2009 the Department of Communities and Local Government published a report on the Code. It concluded that awareness of, and advice in the Code was limited and that it played only a minor role (if any at all) in negotiations.

There still exits a view that negotiations on lease terms are flexible and fair and that the Code was unnecessary. From a tenant’s perspective, it is a shame more is not done to promote the Code and Occupier’s Guide.

Time and time again, tenants who fail to take advice are blissfully unaware of the full implications of taking on a fully repairing and insuring lease. By the time the tenant has agreed the terms of the lease with the landlord’s agent and the heads of terms have been circulated, it is difficult for the tenant’s solicitor to renegotiate terms.

Current market conditions favour the tenant and this has certainly helped the tenant’s negotiating position – rather than the Code. In fact, given the current market conditions, it could be argued that the tenant should expect even more favourable terms than those recommended in the Code.

However, market conditions do change and as the market recovers from the recession we may see a return to the bargaining position which prompted the release of the Code. The Code and Occupier’s Guide could act as a good starting point for negotiations, regardless of market conditions.

One issue raised in the Report was that solicitors do not get involved early enough in a transaction to influence terms. My recommendation would be to discuss the terms proposed with a solicitor, prior to agreeing the terms with the landlord’s agent and the issue of heads of terms.

If you are considering taking on a commercial lease in the near future or are currently negotiating on lease terms contact Hemant Amin of Charles Lucas and Marshall for advice on 01635 521212 or hemant.amin@clmlaw.co.uk