Specialist Empty Rates Service

Every property presents a different challenge. This is why we believe in listening carefully to our clients needs before creating a bespoke strategy on each individual project. We join forces with the project team as early in the process as possible to ensure that the best approach has been agreed before planning is secured on buildings to be redeveloped, and before vacant possession is secured for buildings to be refurbished.

We know from experience that the intended timing and course of a refurbishment or development project can change many times before completion, so the game plan must be flexible and adaptable if the exposure to rates is to be minimised. Maintaining close contact with the project team is key to our approach.

Once completion of the scheme approaches, we will provide our client, their funders and letting agents with rate liability estimates and budget forecasts. Decisive action is essential to effectively avoid and defer the start of liability on completion of the works. Properly handled, this can also afford the opportunity to pass on savings to potential tenants during their fit-out works and improve the agreed lease terms.

Our expert input can make a real difference to:

  • Improving client returns on the overall project by minimising the rates burden;
  • Removing rates to help attract tenants and secure better terms

 

The appeal regulations are complex but there are still a myriad of opportunities to minimise empty rates if properly understood. This can relate to small layout changes during refurbishment or the splitting of floors to enable letting of part. We can advise on all of these issues which may not have been considered.

The market is constantly changing, leading to changes in the way in which space is delivered. A recent trend, perhaps in response to the rapidly expanding serviced office sector, has seen landlords undertaking “Cat B Works” in an effort to attract tenants who want to move in immediately. This can have consequences for rates payable and we can advise clients on how they may be affected.

Mitigation of Rates

In some cases vacant buildings will only be subject to light touch refurbishment, or spending the dilapidations money to put the building back into repair to be re-let. For clients where more limited works are planned we can provide a range of legitimate and highly credible solutions to mitigate exposure to the rates burden until a long-term tenant has been identified.

Despite the continuing uncertainty over Brexit the office market has shown resilience and good tenant demand. However, there are signs that the market is becoming more challenging in places in which case a mitigation strategy can offer the ideal solution.

Rates Advice at the Appraisal Stage

We can offer useful input when different refurbishment options are under consideration to know if the scope of planned works are likely to be sufficient to remove rates altogether. This often leads to small design changes, for example to core areas and WC’s, to reduce the rates burden.

Lease Advisory Service

Property owners can benefit from our wealth of experience on rent reviews and lease renewals/restructuring. We continue to advise a number of major institutional investors, seeking new ways to unlock additional value in some of the more challenging markets around the UK.

Our track record across the office and business space sectors speaks for itself. We know when and how best to engage in dialogue with tenants and improve asset performance. This can be achieved in a variety of different ways, including;

  • Covenant improvement
  • Lease term alterations
  • Break clause removal and/or lease extension

Detailed knowledge of Landlord & Tenant legislation is essential, and we work closely with clients lawyers to ensure the correct timing and service of Notices to secure best outcomes.

 

 

Business Rates

We have a long and successful track record working with occupiers and owners across the UK to reduce the underlying levels of value in rating assessments and, as a consequence, the rates payable.

The rating appeal process is ever more complex, and the valuation office increasingly resistant to accept reduced values as central government tries to protect the revenue from business rates. An in-depth knowledge of the appeals system, regulations and case law is essential if reductions are to be secured. Our expert, professional advice can make the difference in reducing liability as far as possible.

The 2023 Rating Revaluation is now almost upon us. There are further opportunities to make savings in the current Rating List, but appeals will need to be lodged by 31st March 2023.

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