Fisher German newsletter October 2014


Welcome to our first newsletter, we hope to send you two of these a year to keep you updated on what is happening in the company and the 6 main sectors we offer. At the bottom of the e mail you will see a preferences box. If for any reason, you do not wish to hear about a particular sector, you can change your preferences to only read about the areas which particularly matter to you. We hope you enjoy the first newsletter and look forward to hearing your thoughts. Please get in touch if you have any feedback or questions.     

Company News

An agricultural student from Somerset has been awarded the inaugural Henry Sale Graduate Bursary.

Henry was joint managing partner of Fisher German until his sudden death last April and partners and staff at the national firm of chartered surveyors and specialist property consultants have launched the bursary scheme in his memory.

Tom Vacher, who is studying for a BSc (Honours) degree in Rural Estate and Land Management at the Royal Agricultural University in Cirencester, is the first recipient of the annual prize.

The 20-year-old impressed partners at Fisher German for describing the steps he has taken towards becoming a chartered surveyor as well as his passion for developing a career in the industry.

He will receive &1000 (paid in two instalments) and is now enjoying a four-week placement with Fisher German at their Banbury office in South Bar.

Tom said he had heard about the Henry Sale Graduate Bursary from his lecturers, Diane Martin and Angela Cropley, at the Royal Agricultural University.

“I feel honoured to have won the bursary and I am really enjoying my work placement at Fisher German,” he said.

“I have secured a number of work placements with different rural agencies and practices in the South West as well as private estates which has improved my breadth of knowledge of the rural industry.

“I’m looking forward to gaining an in-depth understanding of one or two projects at Fisher German and following them through the strategic process to attain a deeper awareness of how they manage their agricultural work.”

Andrew Jackson, managing partner at Fisher German, said Tom was a worthy winner of the Henry Sale Graduate Bursary.

“We wanted to mark Henry’s tremendous contribution to the company and thought this would be an ideal way of remembering him,” he said.

“Tom’s enthusiasm for chartered surveying shone through in his application and this is a great way of encouraging young people into the industry.

Further information on applying for the Henry Sale Graduate Bursary in 2015 can be obtained by contacting the HR department on 01530 566569


PICTURE CAPTION: Andrew Jackson, managing partner at Fisher German, presents Tom Vacher with his cheque as part of the Henry Sale Graduate Bursary



Commercial lease terms update

Commercial property is still seen as a sound investment. Yet, fundamental changes in the way that tenants are looking to take on leases can be bewildering to landlords. Ignoring the changing market could be costly but getting to grips with the differences doesn’t have to be difficult.

There has been a dramatic shift in the amount of time commercial tenants are willing to sign up for. Long gone are the days when most leases ran for a decade or more. Now, the average lease length spans between just three to six years. “Trading conditions are now so unpredictable for businesses that they’re unwilling to take on long-term commitments,” explains Kevin Benson, head of commercial at Fisher German. “Even national companies have shifted to much shorter leases.”

This isn’t necessarily bad for property owners, especially in an improving market. Owners may need to manage their building or portfolio more actively, but there will be more opportunities to increase their income. Agreeing a short lease can be an effective way of avoiding the unpopular Empty Property Rates (EPR) legislation, which affects office or industrial properties, including rural buildings that have been converted, such as stables.

“It’s worth considering any offer – when you take into account potential EPR liability the deal may be better than it first appears,” advises Kevin. “Bear in mind that the landlord no longer has to pay EPR as soon as a tenancy is agreed, so it can pay to allow a tenant in on a licence while the formal lease documents are drawn up.” (see case studies below)

Break with the past

Lease lengths are only part of the story. For all types of property landlords may be asked to agree break clauses and rent-free periods. At first glance break clauses may seem particularly problematic for owners as they can affect capital values and are often perceived to be a useful bargaining chip for occupiers. However, the reality is that they are rarely used in practice – Kevin estimates that up to 70% of breaks are never actioned: “A lot of tenants forget that they have an option to break – there is no need for the landlord to remind them!”

Another reason why tenants may not actually want to serve a break clause is that it can be costly for them, both in terms of money they have invested in fitting-out their space and in the amount owed to the landlord for dilapidations (money to cover wear and tear of the building), which could add up to &6,000 for an average small business. Canny landlords may well link break clauses with rent-free periods – so that, for example, a tenant who breaks a six-year lease in the third year incurs a penalty of three months’ rent that they were given free at the start of the lease.

As lease lengths shorten, stepped rents (where, for example, the rent rises in &2 per square foot increments every two years in a six-year lease) are increasingly useful for landlords, especially those with more than one property in a given location, as the higher rent can be used as evidence for rent reviews (and new lettings).

Strategic thinking
With the market gradually improving landlord confidence is returning and the position for many tenants is weakening. Nevertheless, Kevin believes that property owners should still think very carefully to get the best return. “The key is to consider all the options well in advance,” he says. “Experience helps with this strategic thinking.”

Taking a long-term view also means considering the quality of covenant when agreeing a new lease, another area where expertise can prove invaluable. Kevin points to the recent case of a retail unit: “I advised the landlord to accept Enterprise Rent-A-Car as the tenant at a slightly lower rent than a local plumbing merchant had offered, as the landlord may want to sell the property in three



New life for agricultural buildings

Unused barns and outbuildings have previously had to battle the planning process in order to be transformed into holiday accommodation, a farm shop, or offices. However, thanks to changes in planning legislation earlier this year, farmers could increasingly realise the benefits of such conversions without the need for full planning permission.

The dilemma of what to do with old agricultural buildings that are no longer fit for purpose is familiar to farmers and owners of rural properties. Increases in the size of farm machinery and changes in farming processes pose a particular challenge for buildings that were constructed in the days of early tractors or even the era of the horse-drawn plough.

Many buildings are simply not large enough for modern agricultural use, and often relegated to use as temporary cattle sheds or as storage space for farming supplies.

Until this summer, owners looking to convert an old building to a commercial use, such as a farm shop, café, offices for small businesses or workshops for light industrial or distribution companies, were required to make a planning application to their local council. This could be costly and the outcome was far from guaranteed.

Since June, however, that hurdle has been removed, thanks to changes in planning legislation made by the coalition government. Depending on the size of the building to be converted, owners may be able to cut down on the paperwork (and costs) or avoid making a planning application altogether.

The change applies to all buildings measuring less than 500 square-metres used solely for agricultural purposes before July 2012. Buildings of less than 150 square-metres now require no planning application but the owner must notify the local authority that works will take place. For buildings of 150–500 square-metres no full planning application is required but a cut-down, prior approval process applies.

Flexibility
The new policy stance has made conversions much easier and allows owners to channel the cost savings into the converted building, by using them, for example, for the internal fit-out. It gives owners much more flexibility – conversions can be used directly, or sold or rented to third parties. In some cases third parties may even approach them.

Fisher German works in many beautiful areas that contain similar buildings which may be suitable for conversion to guest house or hotel accommodation. For example, an owner in the Peak District National Park was solicited by an organisation interested in converting his 400-square-metre stone barn into hostel accommodation.

Other uses are proving popular, such as equine-related stores (for example, tack shops, arts and crafts emporiums and other rural enterprises).

While the change in legislation will be a boon to many rural building owners, there are numerous caveats and it may not be immediately clear whether owners will be at an advantage. Specialist advice can help avoid costly errors.

Help and advice
To discuss any issues raised in this article, please visit www.fishergerman.co.uk or contact Alan Hardwick on 01530 567 471 or alan.hardwick@fishergerman.co.uk



A home from home

Potential buyers have the chance to become only the fourth owner of a luxurious 19th century Georgian house in Staffordshire.

Burston Hall, situated just four miles from Stone, has only been owned by three families since it was built in 1825 and is being marketed with a guide price of &1.45 million by Fisher German.


The classic Georgian architecture is accompanied by 4.5 acres of scenic gardens, grounds and land, along with a range of outbuildings – one of which has been converted to a two bedroom cottage with a garage whilst the other has planning consent to convert into a leisure complex – and further land is available by separate negotiation.

Buyers also have the unique opportunity to secure their very own pew in the village chapel as well as the right to exclusively fish in the village pond after it was gifted to a previous owner by the local council.

Planning permission has been granted for owners to add an orangery and make alterations to the kitchen.
The Grade II listed Burston Hall has the benefit of a canal mooring due to its waterside location.

The beautiful property is being marketed by Fisher German in Rutherford Court, Stafford, and more information is available on 01785 220044.



The answer is blowing in the wind

Professionals, farmers, and landowners were blown away at an event which provided an insight into the benefits of renewable energy technologies.

Renewable energy experts from national property agency Fisher German, which has 14 offices across England, hosted the open evening at Huncote Grange near Enderby in Leicestershire.

The firm advised on and obtained planning for the building of an Enercon E33 wind turbine on the site and visitors were able to get up close and personal with the turbine whilst learning about the many benefits of renewable energy.

More than 60 guests attended the event which was joint hosted with NatWest and Lombard and supported by the Country Land and Business Association (CLA).

There was also an opportunity for guests to view the roof-mounted solar PV system installed on an adjacent grain store, while taking advantage of a hog roast and makeshift bar.

Darren Edwards, a Partner at Fisher German’s Market Harborough office in the High Street, said: “The Huncote Grange open evening was a huge success.

“It was our first attempt at an on-site marketing event and it demonstrated that there remains a huge appetite among the farming and landowning community to explore diversification opportunities.

“The informal nature of the event provided a relaxed atmosphere and the majority of delegates had a genuine interest in developing wind or solar projects on their own holdings.

“Thankfully, neither the weather nor the wind turbine let us down on a wonderful sunny and windy evening.

“The turbine was operating at near maximum capacity with wind speeds exceeding 11m/sec, compared to the long-term average of 6.5m/sec.

“Client feedback has been very positive with a number of potential new leads coming forward, not just from those that attended on the evening but also from their contacts.

“The returns achievable from renewable energy installations are still among the most attractive investments in the current land and property market and we are going to host a series of open day events over autumn to help demonstrate the opportunities that are available.

“I would welcome any interested parties to come along.”



HS2 consultation now live

Residents living along the proposed HS2 route have been warned not to immediately accept compensation claims without taking professional advice following the start of a consultation process.

HS2’s current property compensation consultation for Phase One of the proposed railway from London to the West Midlands is open until Tuesday, September 30 and sets out two new options for compensation for affected home owners.

The first option is for an ‘alternative cash offer’ for owner-occupiers living within 120 metres of the railway, who do not wish to sell their property, to accept a lump sum payment between &30,000 and &100,000.

The alternative is for a ‘home-owner payment’ for owner-occupiers of properties situated between 120 to 330 metres from the centre of the railway to agree lump sum payments between &7,500 and &22,500.

Leading chartered surveyors and specialist property consultants Fisher German, which has offices across England, is advising householders who will be affected by HS2 to take professional advice before deciding on a course of action.

Jonathan Perks, associate land agent based at Fisher German’s Banbury office, said the consultation is open to everyone but the compensation schemes being consulted on will only be available to owner-occupiers of properties near the HS2 route from London to the West Midlands.

“People are now in a position that they know the likely compensation packages available to them and can hopefully make a decision regarding how they deal with the threat of HS2,” he said.

“Residents have to decide whether to make a claim for the loss of the value of their house once these schemes are confirmed; later under existing statutory rules; whether they want to look at selling their property on the open market or through the existing Blight or Hardship schemes.

“Houses are generally the largest assets that people own and in every transaction involving property, homeowners always gain professional advice – this is no different.

“At Fisher German we have been at the forefront of advising parties affected by HS2 and are offering advice to an increasing number of clients to ensure they get the best value for their property.


“There has been a great deal of talk about the compensation available but the two new compensation schemes which have been proposed are at the consultation stage at the moment rather than it being the final decision.

“This consultation is seeking views on the two new policies and property owners and occupiers will have to consider carefully whether the proposals provide them with any benefit over existing statutory compensation.”

To take part in the consultation process, visit

http://hs2.org.uk/developing-hs2/consultations/phase-one/property-consultation-2014

 



Clare Phillipson promotion

Fisher German has announced the promotion of a woman who has gone from work experience to head of the national utilities and infrastructure team.

Clare Phillipson completed a work placement at the company’s Ashby-de-la-Zouch office in 1984 before going to the Royal Agricultural College, Cirencester, to qualify as a Rural Practice Chartered Surveyor. Clare returned to the business in 1988 as a full-time member of the business.

She was appointed Fisher German’s first female partner in 1998 and became head of the national utilities and infrastructure team in 2011, after rising through the ranks to lead the 60-strong department. She will continue to be based in the town after becoming an Equity A Partner.

Clare specialises in managing Fisher German’s services in the utilities and infrastructure sector, which focuses on the management of high pressure oil pipelines and delivery of rights in land for the UK’s main utility companies.

She said: “The utilities and infrastructure sector is the largest in terms of turnover of the six core sectors of Fisher German, with a wide delivery across all our offices. It is a really exciting area to work in currently, with the need for reinforcement and expansion due to the country’s demand for heat, light, power and water.

“We support the electricity, gas, fibre optic, oil and water industries on both a national and regional basis and are involved in some challenging projects. There are so many different aspects involved from technical decisions, legislative constraints and planning opportunities, through to the face-to-face contacts made with landowners and occupiers across the country.

“No two days are ever the same and the work is really challenging and interesting.

“I have only ever worked at Fisher German and in July, I will have been here 26 years. I am delighted to have been promoted to Equity A Partner and I am looking forward to turning more projects into reality.”

Richard Sanders, Senior Partner at Fisher German, said despite a tough economic climate, the firm continues to look forward positively which is reflected in Clare’s promotion.

He said: “Clare’s role in the utilities and infrastructure sector of Fisher German is not under-estimated and her new role is a reflection of the continued achievements of the department and the part she has played in achieving that success.”

Clare is among a host of promotions in the Ashby-de-la-Zouch office. In the utilities and infrastructure department, Matthew Willoughby, Guy Hemsley, Richard Broome, Richard Gent and Rachel Cliffe have become Local Partners, while Katie Shorter, Ben Burbridge and Sam Parton are now Associates.

In the rural team, Shanette Goodwin and Guy Hemus have become Local Partners and Ben Longstaff in the residential sales department is now a Local Partner.

Richard added: “Everyone who has been promoted fully deserves their new job titles and their ability and enthusiasm bodes very well for the future of the business.

“They are among 20 personnel across all our offices who have been promoted from Associate to Partner level which reflects the growth and success of Fisher German.”




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