Welcome to our spring e-newsletter. In this issue we would like to introduce you to some of our team and let you know how your local Thame team can help you make the most of your property assets.

We want you to be able to choose what information you would like to receive so you can update your preferences. It is also very easy to unsubscribe but do bear in mind that we use this system for invitations to our events. So if you wish to keep in touch with us socially or receive updates on important land and property issues, unsubscribing will mean that you no longer receive these invites.

We will be at the famous Kimblewick Races on Easter Saturday at Kimble, Buckinghamshire HP17 8TB and you are invited to join us in our marquee for refreshments and a chat. Look out for the Fisher German flag and we hope to see you there!  First race is at 1.30pm  www.kimblewickraces.co.uk

Meet the team in the Thame office.

As the new year rolls on, the festivities of the Christmas season are soon forgotten as the tax bills becomes due. For farmers, this has also coincided with poorer commodity prices and increasing variable costs. In some cases this is further compounded by dramatically reduced milk prices. Cash flow is often a constant worry for most farmers and rural business owners, however the next quarter could be extremely challenging.

Managing cash flow is all about forward planning. The first imperative is to budget honestly and be realistic with your projections and assumptions. Often the overdraft is an obvious starting point but there are other, more secure, alternatives that could provide breathing space for the business to trade successfully through a tough time.

One feasible alternative is the Flexible Facility from the Agricultural Mortgage Corporation (AMC). This is a new product from the AMC which is essentially a five year “rolling credit” where the loan margin is agreed at the start. This effectively allows working capital to be secured for five years in advance, removing the need for an annual review with interest charges only on the amount drawn.

The AMC specialise in providing mortgage finance for land based commercial businesses and have recently celebrated 85 years of trading. Fisher German’s Thame office partner, Stephen Rutledge, is an AMC Agent assisting rural businesses obtain funding for a variety of purposes including, property purchases. We are delighted to remind readers that Fisher German, Thame office has the capacity and experience to provide this service.

“The AMC is best known for ‘lend and leave’ mortgages, providing competitive rates for long-term funding,” he says. “Many farmers and rural business owners are unaware of the excellent Flexible Loan Facility and the AMC should not be overlooked”.

For further information on an AMC’s shorter term facility or their long term mortgage please call Stephen Rutledge on 01844 212004.

For more information please click here

The momentum in house price growth is easing, especially in London and the South East. According to the latest data from Nationwide Building Society, average UK prices showed a slowing in the annual rate of price growth to 5.7%, down from around 12% last summer. This is not to say that price growth is slowing at the same rate all over the country, in fact we will likely start to see growth rates become more homogenous across the country.

As the election approaches, parties are starting to share more details on their plans for housing in the coming Parliament. The Conservatives last week pledged to double the number of “cut-price” homes for first-time buyers from 100,000 to 200,000 by 2020. In the prime country house market, prices rose by 3.4% last year. The market is regionalised, however, with key commuter towns and regional cities outperforming. There is increasing interest from buyers moving from London, keen to capitalise on the relative difference in pricing between the capital and the rest of the country. This can be seen clearly in price performance in areas such as Cheltenham and Oxford.

The debate about “mansion tax” in the run-up to the election continues to have an impact on the prime markets, weighing on activity for homes in the &2m-&4m bracket. The new tax on &2m+ residential property is being proposed by both Labour and the Liberal Democrats. The lack of details provided means we can only guess at the likely impact on pricing, save noting that these are policies which will be overwhelmingly London issues. New analysis suggests that eight out of ten properties on the &2 million ‘mansion tax’ threshold will be located in areas of suburban London and the Home Counties, not in prime central London.

Our expectation is that the Bank of England base rate will rise to hit 0.75% by Q4 2015, and 1.50% by Q4 2016. A more rapid rise would translate into higher mortgage rates, putting pressure on current borrows, and reducing the ability of new buyers to purchase at current pricing levels. Rising rates are likely to make alternative investments more attractive, and could prompt investors to look less favourably on low yielding property investments.

For more information please contact Tom Mellor on 01844 267946 email tom.mellor@fishergerman.co.uk

Click here to read our latest property magazine Source and if you would like to receive a copy in the post request it here.

To view properties for sale through the Thame office click here

The Basic Payment Scheme (BPS) is the EU’s biggest rural payment subsidy for the farming industry and replaces the old Single Payment Scheme (SPS). The new scheme (introduced 1 January 2015) was set to a provide farmers with an entirely online service to make applications for subsidies.

After weeks of significant frustration to farmers and a multitude of ‘teething’ problems with the new CAPIS (CAP Information Service), the Rural Payments Agency (RPA) has announced it will abandon the online process due to technical difficulties.

Responding to the RPA’s announcement of a new approach for BPS claims, Will Taylor, member of Fisher German’s Farms Department in Thame, says: “the news that applications can now be made on paper will bring a huge sigh of relief from farmers and agents. However there likely to be further issues to iron out with the initial roll out of the paper BP5 forms – these are untested and have to accurately cover Greening requirements and the incorporation of the new crop coding system”.
Following this decision to drop the Rural Payments on-line system for 2015 BPS claims. The key implications are as follows:

1. The on-line Registration process will continue and must be done for every applicant.

2. No further information can be submitted on-line using the current Rural Payments interface.

3. The claim deadline has been extended to 15th June in all cases.

There will now be three alternative ways to submit claims:

Simple claims with no Greening required – farmers/agents will be emailed a simple paper form to complete and return.

More complex claims (Greening required) – a blank BP5 application form (similar to the old SP5 forms) will be available to download and print from next week. A prepopulated version will be posted out in early April to farmers/agents and these should include details already entered on Rural Payments.

Multiple and very complex claims – agents and farmers with particularly large/complex claims may have the ability to use the SITI Agri software to continue submitting claims and mapping on-line.

“Farmers still need to focus on BPS applications by preparing information ahead of submission. Whilst the extended deadline allows a little more breathing space, it also takes away a month from the RPA to process applications.”

For further information contact Will Taylor on 07880 195987 email will.taylor@fishergerman.co.uk

Click here to read the latest information on our website

Josie Palmer, a Chartered Surveyor and Local Partner of Fisher German in Thame, has become a Fellow of the Agricultural Law Association (ALA) having successfully passed her fellowship examinations.

The ALA is an independent inter-professional organisation dealing with all matters arising in connection with rural business. It is regularly consulted by Government on legislative and policy changes, and provides impartial practical comment on proposed measures, as well as educating its membership on current issues, legislative changes and important recent cases.

Josie comments “I am delighted and really honoured to have been awarded my fellowship. The ALA provides great opportunity to share ideas and expertise with other professionals, including solicitors, accountants, bankers and other consultants supporting the agricultural industry. And in turn the best well-rounded advice can be passed on to our clients”.

Josie joined Fisher German’s Thame office last November, to meet the growing demand in the area for rural property services. She joins from the Harewood Estate, having previously spent 10 years with Smiths Gore and Cluttons. Josie provides a broad range of professional consultancy advice to farmers, landowners and landed estates.

Stephen Rutledge, Thame’s office partner adds “I am delighted not only that Josie has joined us, but also that she does so with clearly proven expertise. Thame is a young developing office, having only been established in 2012, and Josie’s appointment expands and strengthens our team, allowing us to continue to deliver a top quality service to our clients.”

Josie can be contacted on 01844 267943 email josie.palmer@fishergerman.co.uk.

With the HS2 Select Committee having been paused for the upcoming general election, they have recently published an interim special report on their recommendations based on petitions already heard.

Specific recommendations are that:

• HMRC provide guidance on Capital Gains Tax exemptions available to affected landowners
• Limited recommendations for design amendments at specific sites
• HS2 put forward ‘imaginative mitigation proposals that may involve locations other than adjacent the railway’
• Entry into the Need to Sell scheme is eased, with improved assistance to applicants
• Specific comment was made that certain unacceptable refusals had been made
• Clauses 51 & 52 of the bill (surveys of Phase 2) be accepted but with changes to the details of this.

The Committee will re-sit in June (subject to the results of the election) and will sit through into 2016. Click here to read the full document.

As reported on our website previously, HS2 announced their latest Phase 1 compensation measures back in January, following on from their compensation consultation of early 2014. 

The measures are in some cases very similar to existing but in others are new. A residents charter has also been produced.

The compensation package includes:

• The Express Purchase Scheme for those within the Safeguarded Area – this is the same procedure as already stands with Blight Notices
• The Cash Offer or Voluntary Purchase Scheme applies to those who are located up to 120 metres from the route. They can apply for their properties to be purchased (where outside of the Safeguarded Area) or for a cash payment of 10% of the un-blighted value (within the range of &30,000 - &100,000)
• The Homeowner Payment Scheme is introduced to give those whose properties are between 120 and 300 metres from the railway a one off cash payment for devaluation of their properties. This payment will not be made until the railway has Parliamentary approval
• The Need to Sell Scheme is for owner-occupiers outside of the above areas who suffer a physical effect from the railway, which prevents sale on the open market and who also have a pressing need to sell. This is replacement for the Exceptional Hardship Scheme.

Before applying to any of the above schemes, applicants should consider whether the payments/terms offered are better than statute would grant them. For example, the Cash Offer of 10% of property value with a ceiling of &100,000 might be bettered if any part of the railway involves part of your land being taken. The Homeowner Payment Scheme presumably is introduced in place of ‘Part 1’ payments and careful consideration should be made as to whether a higher payment might be secured through the Part 1 process.

For further information contact Josie Palmer on 01844 267943 or josie.palmer@fishergerman.co.uk

For more details about HS2 click here