2013 development appraisal - site assembly & possession strategy

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Site Assembly & Possession Strategy

Speaker: Simon Wainwright BSc FRICS

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2013 Lecture SeriesLecture Date

An introduction to development appraisal & residual valuations:

7th February 2013

Cash flow techniques and sensitivity analysis:

13th February 2013

Site Assembly & Possession strategy :

25th February 2013

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Site Assembly & Possession Strategy

• Identifying owners & occupiers• Terminating tenancies – grounds for

possession• Assessing compensation• Negotiating break clauses• Compulsory Purchase Orders

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Site Assembly & Possession Strategy

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Authorised Occupiers

• Tenants – With / Without Security of Tenure• Sub-tenants• Assignees• Licencees• Trespassers

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Landlord & Tenant Act 1954 Part II• When a tenancy reaches its contractual

expiry date, the tenancy continues by “operation of law” until determined in accordance with the Act.

• Statutory right to lease renewal

• Lease terms to be agreed between the parties or referred to the Court

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Landlord & Tenant Act 1954 Part II• There must be a tenancy• The tenancy must relate to the premises• The tenant must carry out a business at

the premises• The tenant must occupy the premises for

the purpose of a business

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Grounds for oppositionA. Breach of repairing covenantsB. Persistent delay in paying the rentC. Breaches of other obligationsD. Availability of alternative accommodationE. Sub-tenant – possession required for

letting or disposing of the whole propertyF. Landlord intends to demolish or

reconstructG. Landlord intends to occupy the premises

himself

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Consequences & CompensationWhere tenant has been in possession > 14 years = 2 x Rateable Value

Where tenant has been in possession < 14 years = 1 x Rateable Value

Compensation for tenant’s improvements dealt with under the Landlord & Tenant Act 1927

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Other Occupiers

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Rights & Easements

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Compulsory Purchase

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Site Assembly & Possession Strategy

Speaker: Simon Wainwright BSc FRICS