Welcome to the first regional newsletter for Fisher German's Chester, Knutsford and Stafford offices. Our region is one of the UK's most diverse and vibrant economies stretching from St Helens in the North to Stafford in the east and Chester and North Wales in the west. 

The experts in each of our regional offices offer a broad range of services from the sale of your property to the management of your estate. Our team can advise you on a range of land and property matters from how to get the most from your land to the implications of HS2. 

Come and meet some of the team  for an informal chat about any of our services at the Cheshire Show  23 - 24 June 2015 or at the Nantwich show on 29 July, and don't forget the Ploughing Match on 30 September 2015

Following the announcement by the UK’s Department of Energy and Climate Change (DECC) in 2014 that the solar park subsidy, the Renewable Obligation Certificates (ROCs), were to be removed for sites larger than 5MW from 1 April, the market is now focused on 5MW solar park schemes.

Typically, a 5MW scheme would require a site of between 25-30 acres. In broad terms, the key requirements for a successful site are:

• Grid connection - close proximity to a grid connection is of primary importance. Typically, a 5MW system would require a 33kV power line, although the 11kV network can sometimes accommodate 5MW. Currently there is great demand for grid connections due to the changes in DECC funding, meaning that potential sites need to be put forward as soon as possible! In recent months there have been a great deal of enquiries in and around Uttoxeter, and also further afield.

   

• Land quality - it is generally accepted in planning terms that any land put forward for such a scheme should be of Grade 3b or lower, as per the Ministry of Agriculture, Fisheries and Food (MAFF) 1988 Agricultural Land Classification (England) guidance. This land is described as being:

  ‘Land capable of producing moderate yields of a narrow range of crops, principally cereals and grass or lower yields of a wider range of crops or high yields of grass which can be grazed or harvested over most of the year.’

   

• Distance from residential dwellings and public rights of way - as with any planning application, the main hurdles relate to visibility The most viable sites would need to be sufficiently out of view, or far away from public view, to mitigate any objections to a scheme.

   

• Other factors - in addition, the land should ideally be relatively flat or south facing and have minimal shading from trees and hedges.

If you think you have a site that matches the above points, you could expect to receive index linked rents of between &800-&1,000 per acre per annum for up to 25 years!

In addition to the above, there could also be opportunities to form a joint venture with a developer to share the risks and rewards. Developers tend to take sites through the planning process to then sell on as ‘shovel ready’ sites, (the landowner provides a site with a secure grid connection and planning permission) to achieve far greater returns.

With the next ROCs subsidy degression set for 1 April 2016, many developers are trying to secure sites quickly. With this in mind, you should give careful consideration to the choice of developer. It is important to consider their track record as few operational sites in the UK are more than 4 years old. You should also consider the long term implications of the site eg what will happen to the land at the end of the 25 year term? Who will pay for dismantling the site and reinstating the land?

We can also help with self-funded smaller scale developments such as roof mounted or ground arrays.

For more information on the opportunities described above, please do not hesitate to contact Rob Browne at the Stafford office on 01785 220044 or email him here

Click here to find out more about our renewable energy services

The North Wales coast has long been known as a holiday destination with the Edwardian grandeur of Llandudno and the holiday parks of Rhyl and Prestatyn providing something for everyone.

Now the same coastline is producing some of the highest agricultural land prices in the country. Last month the Chester office offered 66 acres of land outside Rhyl for sale by auction. The land was divided into 4 lots and although it was on the edge of the town the majority of it was designated as being within the Green Barrier thereby significantly constraining any future development potential.

The guide prices for the four parcels were in the region of &8,000 - &9,000 per acre with a reasonable expectation of achieving a total sale value of around &550,000. As it turned out there was strong demand both from the local farming community and investors resulting in a total sale value of &1,060,000 which equated to an average price of roughly &16,000 per acre.

Edward Clark who handled the sale, commented that he felt more like the referee of a boxing match rather than an auctioneer as the bidding raced along. There is no doubt that our ability to offer auction as a means of sale resulted in this fantastic result since these prices would never have been achieved by a conventional private sale.

To view a copy of the sales particulars for this land click here and to read more about auctions click here.

Many of the country’s best businesses are based in rural surroundings. Traditionally those businesses may have contained a mix of cows, pigs and sheep, but we are now seeing a mix of technology, marketing and ecommerce businesses looking to immerse themselves in a more serene environment.

Diversification within the countryside is not new. For over 20 years we have increasingly seen the re-use of traditional farm buildings for farm shops, workshops and offices. More recently, we have seen businesses look to the countryside for first class commercial premises as opposed to business parks and town centres. 

Broadband is key

Advances in broadband connectivity in rural areas have gathered pace and landlords looking to let their barns are well aware of the importance for providing a fast connection. This is particularly true at Holly House which we are currently marketing. The barns converted in early 2000, have let well for a number of years. The property situated on the outskirts of Cranage, is close to the M6 and has excellent road links. However, the first question we are always asked by prospective tenants is about Broadband connectivity. The landlord has been quick to adapt to the situation to ensure the rural environment is an attraction and not a barrier.

Cost saving opportunities

The recession raised a number of interesting questions for business coming to the end of their leases in and around Chester. Rural premises have provided a real alternative for businesses looking at cost savings. Whether it is rent, rates or car parking charges, the countryside - with improved communications - is a real alternative. 

For further information contact Will Lewis on 01244 409671 email him here

Click here for more information about our commercial property services

I graduated in May 2014 and joined Fisher German’s Chester office in the September. Since starting in Chester I have undertaken a variety of work that has enabled me to put into practice a lot of what I learnt in my degree.

My work includes both rural estate management and utilities work. The rural estate management side largely consists of day to day management of our client property portfolio, which can range from organising repairs on residential properties to conducting rent reviews on agricultural agreements. As part of my utilities work I have got particularly involved with the Water Industry Act dealing with compensation claims for large and small main’s replacement schemes.

To become a chartered surveyor you must undertake a minimum of 24 months' training to gain a wealth of experience within your chosen competencies. Throughout this process it is important to gain support from your employer and Fisher German have a well organised programme which offers both in office and wider business training. On a day to day basis I shadow other qualified surveyors within the Chester and Stafford offices. On a monthly basis all of the firm’s graduates meet to have a talk from a professional and discuss a chosen topic.

A key part of surveying is keeping up to date with legislation changes. Fisher German have quarterly training days for all professional staff to ensure they are always fully informed and aware of any changes in legislation. This ensures that we as a business are able to provide consistent quality advice to our clients.

Joe Senior

01244 409663 email me here

Click here to have a look at the careers section of our website

Matthew has been looking at some of key trends and opportunities in agricultural land use and why landowners and farmers need to carefully assess their options.

Many Local Authorities are finding it difficult to prove they have a 5 year housing supply and as a result developers are approaching landowners and famers to look to tie up option and promotion agreements. In addition, solar power companies are looking for land near to national grid connections to develop small and medium size solar parks. This pressure to relinquish agricultural land for development means that farmers and landowners need to carefully assess the agricultural quality of the land to ensure that good quality, high grade agricultural land is not lost to development.

The National Planning Policy Framework expects local planning authorities to take into account the economic and other benefits of the best and most versatile agricultural land. Where large-scale development of agricultural land is proposed, the local planning authorities should look to use areas of poorer quality land before considering higher quality agricultural land.

Land quality varies from place to place in terms of structure, density, drainage and composition. The Agricultural Land Classification (ALC) provides a means to assess the quality of farmland and ensure that informed choices are made about its future use within the planning system. The ALC system classifies land into five grades, with Grade 3 subdivided into Subgrades 3a and 3b. The ‘best and most versatile land’ is defined as Grades 1, 2 and 3a by planning policy guidance. This is the most flexible, productive and efficient land in response to inputs.

With a finite supply of land and ever growing demand for food production the emphasis for development will become increasingly focused on land with limited agricultural potential. I would advise landowners to consider seeking professional advice regarding the agricultural quality of their land, if development is a potential option in the future.

The agricultural quality of land and its ALC grade should be considered when speaking to developers. It is an important factor to consider before submitting a planning application to the local authority for development. Fisher German LLP has been carrying out a numerous agricultural land classification surveys nationwide, in respect of potential development projects on agricultural land.

Fisher German can provide detailed reports on the quality of agricultural land which form part of the overall planning application. Reports comment on each relevant factor which characterise the ALC grade of any given site, giving the landowner an indication of the future potential for their land in light of current planning policy.

Matthew Burton - Knutsford 01565 757970 email here

Robert Browne – Stafford 01785 220044 email here

During the last session of parliament held under the coalition government in March this year we saw a number of long awaited changes enacted in relation to the Agricultural Holdings Act 1986 (AHA 1986).

Amongst these changes was the introduction of The Agriculture (Model Clauses for Fixed Equipment) (England) Regulation 2015 which takes effect from 1 October 2015. These are more widely known as the new Model Clauses which govern default liabilities for the maintenance, repair, replacement and insurance of fixed equipment on holdings let under the AHA 1986. The new Model Clauses will only apply in England although it is believed that the Welsh Government intends to review their equivalent regulations soon.

Before this change, the most recent Model Clauses were introduced in 1973 and have not been updated until now. The Tenancy Reform Industry Group (TRIG) and many other lobby groups have been pushing the government to amend, update and modernise the Model Clauses. At long last the changes have been made following a DEFRA consultation paper of 2014 which sought to update the 1973 Model Clauses and extent them for new equipment and issues, information and clarity of reading.

What has changed? 

A significant update is the removal of the limit on the costs that a tenant can recover in relation to replacements that are the landlord’s liability (currently &2,000 per annum).

A mechanism has been provided for the parties to review the terms of their agreement where they differ from the Model Clauses, with a provision for arbitration or third party determination of those terms allowing for adjustment in the terms and rent.

Provisions have been made for parties to seek compensation where the new clauses move a liability from one side to the other and the liability had not previously been met.

The new Model Clauses will not take forward proposals to incorporate flood banks and tile and pipes for field drainage systems due to the potentially significant costs associated with their inclusion.

When do the new Model Clauses apply?

These clauses will not replace specific provisions made in an AHA 1986 tenancy agreement, but will take effect where:

• the tenancy is unwritten;

• the tenancy is silent as to the repair, replacement and insurance of fixed equipment;

• the tenancy refers to the Model Clauses 1973 as amended*; or

• the tenancy has specific provisions for some but not all of these matters

*Please note that if the agreement refers specifically to SI 1743/1973 then the new Model Clauses will not apply.

Rent reviews

Whilst the new provisions will not take effect until 1 October 2015, rent reviews under the AHA 1986 are set for the next three years so it may be worth considering the effect of the new regulations will have over the next two and a half years in any rent negotiations.

To discuss how the changes could affect you call your nearest office  

Chester - 01244 409660 - email Edward Clark here 

Knutsford - 01565 757970 - email Hugh Maxfield here 

Stafford - 01785 220044 - email Charles Meynell here 

Edward Clark Hugh Maxfield Charles Meynell